After a month of apparent respite, the cost of living in Kenya is rising again. If Kenyans – or at least most of them – were to do their shopping with a trolley, one might say that in July the trolley was lighter, even though it was heavier.
Figures released by the Kenya National Bureau of Statistics show that inflation rose to 6.5 per cent in July, a figure close to the upper limit of the target set by the Central Bank, and confirm that the cost of living remains one of the main concerns for households and businesses. Although this is a modest increase, the figure brings to an end the slight slowdown observed last month and keeps the country close to the upper limit of the inflation range deemed acceptable by the Central Bank of Kenya, which is between 2.5% and 7.5%.
Food, transport, and expenditure on housing and domestic services continue to be the main drivers of price rises; these three categories together account for over 57 per cent of Kenyan household consumption. In recent months, it has been primarily high fuel prices and the effects of climatic fluctuations on agricultural production that have kept price pressures high. In addition to electricity, there have been significant price rises for essential goods for Kenyans, such as beef and potatoes, whilst many other items have become slightly more expensive; however, the prices of tomatoes and maize flour have fallen slightly.

For citizens, these statistics translate into a very real situation. Grocery shopping in general continues to cost more than it did a year ago, and transport costs are also placing an ever-greater strain on household budgets. Although some products have seen price reductions, the overall picture remains one of a cost of living that continues to rise faster than the incomes of many workers.
The return of inflation to above 6.5 per cent also comes at a delicate time for the Kenyan economy. On the one hand, President William Ruto’s government continues to defend its economic policies, arguing that the country is consolidating growth and attracting investment; on the other, trade unions, the opposition and consumer organisations complain that the macroeconomic benefits are not yet being felt in people’s daily lives.
The Central Bank will be closely monitoring price trends over the coming months. Should inflation continue to rise, it could become more difficult to pursue monetary policies that support economic growth, whilst a potential slowdown would offer greater scope to support credit and investment.
For the time being, however, the message coming from the markets and from Kenyans’ dining tables is clear: the cost of living continues to bite, and for many families, making ends meet remains an increasingly difficult challenge.