This archive report was first published on 16 June 2020.
On June 16, 2020, Nairobi was ranked 95th in the list of the most expensive cities in the world for expatriates working for governments, multinational organisations, and companies, a two-place improvement from its 97th position the previous year.
According to Mercer's Cost of Living Survey, which was conducted in March, Nairobi is the 15th most expensive city in Africa. The survey ranks cities based on an international basket of goods and services, including rental accommodation costs, taking into account exchange rates.
Expatriates living in Nairobi have seen their purchasing power rise significantly after the Kenyan shilling's depreciation since the country confirmed its first Coronavirus case on March 12. The local currency has depreciated 3.9 percent since then to trade at 106.6 units to the dollar, boosting the earnings of those paid based on the greenback.
However, Mercer warns that wild foreign exchange movements can also hurt expatriates in various ways depending on their particular location. "Sudden changes to exchange rates have been mainly driven by the impact Covid-19 is having on the global economy," said Yvonne Traber, Global Mobility Product Solutions Leader at Mercer.
Chad's capital, Ndjamena, is the most expensive city in Africa, ranking 15th globally. It is followed by Lagos (18), Kinshasa (24), Libreville (33), and Abidjan (36). At 209, Tunis is the cheapest city in Africa and globally.
