Costly Christmas as Kenyans feel the pinch of high inflation

Kenyans are feeling the pinch of high inflation as they mark one of the most costly Christmas and New Year festivities in recent times.

For instance, one has to go back to December 2011, more than a decade back, to see a higher jump in basic consumer prices around the holidays according to official government statistics.

A combination of soaring global commodity prices and high local food prices from raging drought have conspired to hand Kenyans one of the most expensive holidays on record.

Inflation data from the Kenya National Bureau of Statistics (KNBS) placed November’s inflation rate at 9.5 per cent with the cost of living sticking to a five-year high level on a year over year basis.

Food inflation was the steepest at 15.4 per cent going into December with fuel inflation at 13.8 per cent while core inflation (non-food, non-fuel inflation) stood at 4.2 per cent.

A comparison of actual commodity prices between November this year and the same time last year further unveils consumer spending pressures.

A litre of cooking oil (salad) which cost Ksh.289.95 last year now attracts a higher price tag of Ksh.344.51.

A two kilogram packet of fortified maize flour meanwhile costs Ksh.177.78 from Ksh.134.46 a year prior.

Milk, sugar, sukumawiki, potatoes and cabbage prices have meanwhile increased by 17.3, 23.2, 10.4, 37.2 and 14.4 per cent respectively.

Not even alcoholic beverages have been spared in the prices hike with beer (larger, stouts) prices rising by 8.4 per cent across the last one year.

Fuel products have nevertheless registered the steepest price jump across 2022 with petrol, diesel and kerosene prices rising by 36.4, 46.1 and 39.3 per cent respectively.

Beyond the price tag shock, Kenyans have had to contend with further interruptions that succeeded the COVID-19 pandemic including a pro-longed electioneering period.

“Where COVID-19 left us off, politics took over slowing down the implementation of many government policies which became heavily politicized,” stated Edgar Andangalu, Viffa Consult Lead Researcher.

For Economist Edward Kusewa, Kenyans are yet to shake off the impact of the pandemic with the cost of living compounding on difficulties faced by households.

“Recovery for the average Kenyan means they can go on with their day-to-day activities without further disruptions, but as it is, many Kenyans would want to travel upcountry for the Christmas festivities have not,” he said.

To alleviate the high cost of living, the government is primarily banking on duty free imports of sugar, maize and rice in the New Year.