Kenya’s average consumer prices rose for the second month running in December largely on renewed pressure on cost of food, transportation and utilities like electricity, official numbers showed Tuesday.
Inflation —a measure of growth in average cost of goods and services over the previous year — increased to 3.0 percent from 2.8 percent in November, Kenya National Bureau of Statistics reported.
The rate of inflation in December was, however, the slowest in a festive month for more than two decades, analysis of historical data shows, on the back of increased statutory deductions on pay slips which has hurt purchasing power of middle class households.
The data shows average food prices, for example, increased 4.8 percent year-on-year in December, the slowest rate in six years since 2018 at 2.54 percent.
This is slower than 7.7 percent in December 2023, 13.8 percent in December 2022, 9.09 percent (December 2021), 7.19 percent (December 2020), 10.02 percent (December 2019) and 2.54 percent (December 2018).
The food inflation for December was, nonetheless, the highest since September, while transportation cost also rose for the first time in three months despite a drop in fuel prices.
The overall rate of inflation has been edging up since hitting a nearly 17-year low in October, reflecting monthly growth in prices of essential foodstuffs, clothing and fares due to rising demand ahead of festivities.
“The Food and Non-Alcoholic Beverages Index increased by 0.7 percent between November 2024 and December 2024. In particular, prices of maize flour-sifted, fortified maize flour and maize flour-loose rose by 7.0, 5.8 and 1.8 per cent, respectively, between November 2024 and December 2024,” Abdulkadir Awes, the KNBS director for population and social statistics wrote in a statement Tuesday.
“The Transport Index increased by 1.8 percent between November 2024 and December 2024, mainly due to a surge in fares of country bus/matatu in some routes by up to 50.0 percent, in the month of December.”
Kenyan households paid an average of Sh160.58 for a two-kilo packet of fortified maize flour, a 5.8 percent rise over November’s average levels, but 8.7 percent cheaper than a year earlier.
The KNBS data shows cost of eating out and accommodation also went 4.5 percent year-on-year, personal care, social protection and miscellaneous goods and services (4.1 percent), healthcare services (3.0 percent), recreational and sports facilities (3.9 percent), while furnishing and routine maintenance of homes was priced 3.8 percent higher.
Households also paid more for utilities, with bills for 200 kilowatts-hour (units) averaging Sh5,743.10 in December, 0.5 percent higher in November.
“The Housing, Water, Electricity, Gas and Other Fuels' Index increased by 0.2 per cent between November 2024 and December 2024. The increase was attributable to a rise in price of 50 kWh and 200 kWh of electricity by 0.6 per cent and 0.5 per cent, respectively, between November 2024 and December 2024,”Mr Awes said in the statement.
The monthly upward pressure in prices of maize meal comes despite President William Ruto projecting that production to reach a record of 74 million 90-kilogramme bags this year on the back of subsidies on inputs such as fertiliser.
“This achievement has been the consequence of favourable weather, and our deliberate efforts to support farmers with affordable inputs including subsidised fertiliser, leading not only to increased production but also productivity, and lowering the prices of many cereals, including maize, and pulses such as beans and peas,”Dr Ruto said in November during his annual State of the Nation Address.
Beans rose 0.9 percent in December compared with prior month to Sh184.84 per kilogramme, which largely unchanged from Sh186.89 last year, while sugar prices averaged Sh159.69 per kilogramme, a marginal growth of 0.9 percent over a month earlier and a considerable 25.4 percent cheaper than Sh214.20 in December 2023.
The average cost of cabbages jumped at the fastest rate of 33 percent year-on-year amongst foodstuffs sampled by the KNBS to retail for Sh73.18 per kilogramme, while Sukuma wiki (kale) rose 23.9 percent to Sh79.85 per kilogramme on average.
Other foodstuffs which cost significantly higher in December than a year ago include Irish potatoes whose price climbed 24.8 percent to an average of Sh122.94 and mangoes (20.6 percent to Sh125.05 per kilogramme).
