September 4, 2023

Summary

The price of onions, a key ingredient in Kenyan kitchens, has nearly doubled since January 2023.

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Inflation in Kenya: rise in basic commodity prices hurts consumers

Inflation in Kenya: rise in basic commodity prices hurts consumers

Official data from the Kenya National Bureau of Statistics (KNBS) shows how Kenya’s overall inflation rate has dropped to 6.7 per cent in August from 7.3 per cent in July. However, for ordinary Kenyans the general rise in the cost of basic commodities continues to make life a struggle.

Consumer Price Index

The Consumer Price Index (CPI) published on Thursday shows a general rise in the cost of basic commodities with all sectors continuing to record general increases in prices.

“Prices of commodities under transport; food and non-alcoholic beverages; and housing, water, electricity, gas and other fuels, increased by 13.1 and 7.5 per cent respectively between August 2022 and August 2023”, the report said.

The price of maize flour, potatoes and tomatoes did decrease from July to August but the prices of these staples and others have increased markedly since January 2023 (see table).

The price of onions, a key ingredient in Kenyan kitchens, has nearly doubled since January 2023. The prices of maize flour and beans has also increased in this calendar year to date.

Inflation in Kenya: maize price remains high

Maize prices are set to remain high even though a bumper harvest is expected, with increased demand in Kenya coinciding with a low yield in neighbouring Uganda and Tanzania.

The KNBS statement noted that the price of electricity decreased as did the price of a 13kg of liquified petroleum gas (LPG) but only marginally. Petrol and diesel prices remained static.

Price of charcoal hurts the poorest

Meanwhile, poorer households have seen an increase in the price of charcoal to its highest level in three years. Charcoal remains one of the five main energy sources for cooking in Kenya, particularly in respect of rural households.

Compounding problems, the continue fall of shilling

The Kenya Shilling has fallen in value against the US Dollar leading to a rise in the cost imports and, it is feared, likely to lead to further inflationary pressure as the country relies on imports for essential industrial inputs such as fuel and raw materials like wheat, edible oil and fertiliser.

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