Image courtesy bbc.com

There’s further evidence of the tough times faced by Kenyans. Figures published by the Kenya National Bureau of Statistics (KNBS) show inflation running at its highest level for over five years.

At 9.2 percent in September inflation reached a level last seen in June 2017, driven by soaring fuel prices which in turn drove up the cost of essential goods and services.
In addition to the increase in fuel costs the KNBS statistics record a marked increase in the cost of maize flour (up 8.4 percent since August), electricity (p 20.9 percent) and transport (up 25 percent).

Inflation nearly 10 percent over the year

Based on the Consumer Price Index (CPI) the increase in inflation over the last twelve months was 9.2 percent.

Year-on-year commodity prices, food and non-alcoholic beverages, were up 15.5 percent and transport 10.2 percent, whilst the cost of housing, water, electricity, gas and other fuels increased by 7.3 percent.

Inflation driven by fuel costs

The driving force behind the growth in inflation however, is undoubtedly the surging cost of fuel and energy.

Petrol prices at one point reached Sh179.3 per litre (an historic high) following the government’s decision not to subsidise fuel even after last month’s review by the Energy and Petroleum Regulatory Authority (Epra).

The price of diesel also reached record levels at Sh165 per litre, again following a government decision, this time to add Sh25 per litre to the then cost of Sh140.03 per litre.

Likewise, the price of kerosene rose sharply to Sh147.94 following Epra’s decision to add Sh20 per litre.

Epra also increased the fuel component of power bills by 46.6 percent after the power regulator raised the fuel cost charge (FCC) to Sh6.79 per kilowatt-hour, up by Sh4.63.
The government have ended the subsidy on electricity and maize flour (which was introduced last July).