Tough times ahead as Kenya records worst inflation rate in 5 years

dennis kibet

April 28, 2017 6:57 PM

Kenyans may be forced to dig even deeper in their pockets...

Unga packets on display in a supermarket

The rate of inflation has hit an all new high of 11.48 per cent, the highest rate ever recorded since May 2012.

This has been hugely attributed to the rise in food prices since last year due to the prevailing drought conditions witnessed in the country.

According to official data from the Kenya National Bureau of Statistics (KNBS) inflation increased from 10.28 per cent in March to 11.48 per cent in April, the highest rate since May 2012.

Sukuma Wiki topped the list of highest jump in prices with a kilo going for Sh62 in April compared to Sh38 same month last year reflecting a 63 per cent change.

Cabbage came in second, rising by 54per cent to Sh85 a kilo from Sh55.

Rice (Grade 1) rose by 8 per cent to stand at Sh194 per kilo while grade 2 was up by 12 per cent to Sh115.

A fresh packet of 500 Ml milk grew by 12 per cent to Sh60.

The data also noted that despite a notable fall in the cost of kerosene, prices of Housing, water, electricity, gas and other fuels increased by 0.63 per cent.

This was partly due to an increase in cost of house rents, other cooking fuels and water services.

Increased electricity cost was mainly due to higher foreign exchange adjustment charges per KWh of electricity consumed in April 2017.

There were however positives in the transport sector as prices dropped by 0.22 per cent thanks to low petrol and diesel prices.

The Central Bank of Kenya has set a target range for inflation at between 2.5 per cent and 7.5 per cent in the medium term, meaning the rate has stayed outside the bank’s ceiling for three months in a row.

Also read: Massive public looting threatens Kenya's economic growth, stability

dennis kibet