The Central Bank of Kenya (CBK) has warned Kenyans to tighten their belts as the prices of sugar, bread, eggs, rice, cooking oil and other food items are expected to rise due to high input and fuel costs, reduced local production and high import prices.
The results of a Central Bank of Kenya’s (CBK) Agricultural Sector Survey shows that major food commodity prices would stay high in June, and will be the main drivers of inflation during the month.
According to the Kenya National Bureau of Statistics (KNBS), inflation reached 8 percent in May, up from 7.9 percent in April, as household prices rose. Year-on-year price changes for food, energy, and transportation, which account for around 57% of household budgets, were 10.2 ,9.7, and 10 percent respectively.
The cost of petroleum products drove up the cost of housing, water, electricity, gas and other fuels, which comprise the energy index, and transportation, with petrol, diesel, and kerosene prices averaging Sh183.29, Sh169.10, and Sh161.83 per litre, respectively, nationally.
Sugar’s high price aggravated the food and non-alcoholic beverage index, which jumped 49.2 percent year on year and 22.1 percent month on month, with a kilogram of the sweetener costing Sh194.29 in May, up from Sh159.10 in April.
“Prices of sugar, carrots, onions and beans increased by 22.1, 6.3, 5.1 and 3.6 percent respectively between April and May. However, the prices of kale, cabbage and avocado declined by 7.4, 5.7 and 4.4 percent respectively,” KNBS said.
President William Ruto has already acknowledged the concerns of Kenyans over the cost of living, saying it is a top priority for his office.
“The cost of living is keeping all leaders, including myself, awake a night, and this is precisely as it should be,” Ruto said during the Madaraka Day fete in Embu on Thursday, June 1.
The President also commended Kenya’s reputation as a pioneering nation that excels in conducting substantive and focused discussions on critical policy issues, such as the Finance Bill and the Affordable Housing Policy.
“This vibrant national debate sets an inspiring example for others, reaffirming Kenya’s position as a forefront nation in democratic discourse and policy engagement,” said Ruto.
