Browsing: Cost of living in Kenya

• The rising fed rates have led to expensive loans as Kenya struggles to curb inflation
• Although global inflation has generally eased, rapid monetary policy tightening in advanced economies has sharply tightened global financial conditions.
• According to the CBK governor, Kenya should brace for a challenging 2024, including tightening global conditions that will cascade to local levels

Kenya is still at risk of bearing the impacts of new global threats like rising fed rates that may emerge in 2024, financial industry sector players have revealed.

In the past year, the country has confronted challenges ranging from the war in Ukraine, the prolonged drought that affected the country, rising federal rates, and high global inflation.

The rising fed rates led to expensive loans as the country struggled to curb inflation, which currently stands at 6.9 per cent.

Financial experts from Standard Chartered project that the rising fed rates will ease from mid …

• Inflation in Kenya slightly increased to 6.9 per cent in January after declining for two consecutive months in November and December.
• Official statistics show that increases in food, energy, and transportation costs, which together account for about 57 per cent of household budgets, drove up inflation in Kenya.
• Between December 2023 and January 2024, the prices of Irish potatoes, carrots, oranges, and cabbages increased.

In January, inflation in Kenya increased marginally to 6.9 per cent, attributed to a rise in food prices. This comes after a consecutive decline in inflation for two months in November and December, easing below the statutory level to 7.3 per cent in July.

November recorded 6.8 per cent, decreasing to 6.6 per cent in December. The latest statistics from the Kenya National Bureau of Statistics (KNBS) indicate that consumers in Kenya will need to dig deeper into their pockets to buy basic food items.

Inflation

• Kenyan Shilling, which has been on a free-fall against the Dollar since mid-last year, fell to a record-low of 162 to the greenback with projections it could tumble further into the year.
• The unit has shed over 31 per cent of its value to the dollar year-to-date, as the Fed rate hikes in the US took a toll on currencies across the different markets.
• According to Kenya National Bureau of Statistics (KNBS), the Kenyan shilling also ceded ground against the Euro, Pound Sterling and the Japanese Yen.

The Kenyan government is facing a major headache as the country’s currency continues to fall against the US Dollar and other major currencies, hitting a new low this week.

Kenyan shilling, which has been on a free-fall against the dollar since mid-last year, fell to a record-low of 162 to the greenback with projections it could tumble even further this year.

The local …

Therefore, investing in pro-poor development projects is one of the best ways to address poverty and the cost of living in Kenya. Economic empowerment of the various groups can improve families’ lives and address the country’s ever-rising poverty levels. Kenya desperately needs a solution to poverty and the cost of living. Therefore, actualizing socio-economic development could prove a viable approach.…

The cost of living in East Africa has risen with the governments shifting the debt repayment burden to businesses and households by increasing taxes.

According to data from the national bureaus of statistics, in countries such as Rwanda, Uganda, Kenya and Tanzania, an increase in fuel prices as well as weaker local currencies has also contributed to the prices of essential commodities like milk, bread, groceries, oil and fruits.

According to the Bank of Tanzania (BOT), Monetary Policy Statement released early this year, inflation in 2020 was estimated at 5.2 per cent in the East African region which was within EAC convergence criteria of not more than eight percent but higher than 3.2 per cent in 2019.

In March, Uganda posted an increase in the overall monthly inflation which rose to 4.1 per cent from 4.1 per cent in February while Kenya also recorded an increase of 5.9 per cent …