This archive report was first published on 30 September 2021.
Thursday, September 30, 2021, marked a significant milestone in Kenya's economic journey as the country's inflation rate hit a 19-month high.
The rise in inflation, which measures the change in the cost of living year-on-year, was largely attributed to the increasing cost of basic products such as fuel, food, and electricity.
According to the Kenya National Bureau of Statistics (KNBS), the inflation rate climbed to 6.91 percent in September, up from 6.57 percent in August.
Food prices were a major contributor to the rise in inflation, with prices increasing by 10.63 percent in September compared to the same period last year.
The higher costs were largely due to biting dry weather conditions in over 10 counties, making it the second back-to-back double-digit growth.
Households were also feeling the pinch, with the price of cabbages rising by 30.76 percent, spinach by 20.99 percent, and sukuma wiki (kale) by 16.93 percent.
Beef prices also increased, with households paying 10.44 percent more to buy a kilo of beef at Sh481.45.
However, the price of sifted maize flour dropped by 2.48 percent to Sh115.91.
The rise in food prices added to the pain of consumers who were already spending more on fuel this year.
Fuel prices rose by 10 percent in the period, with refilling a 13-kilo liquefied petroleum gas (cooking gas) cylinder costing Sh411.66, or 20.24 percent more, to an average of Sh2,445.24.
Central Bank of Kenya Governor Patrick Njoroge attributed the rise in inflation to the impact of the 16 percent value-added tax on the commodity in July.
Households relying on kerosene for cooking and lighting paid 32.87 percent higher to Sh111.74 for a litre of the commodity than a year earlier.
The data further showed that households and businesses consuming 200 kilowatt hour (kWh) spent Sh413.21 more than the year before for lighting and powering gadgets and equipment in September.
The power bills for homes using 50 units went up Sh103.30 last month to Sh903.95, with a fuel surcharge of Sh3.88 per unit, the highest since July 2018.
