KENYA NEWS
02-07-2025 by Freddie del Curatolo
Financial impact: in June, Kenyans are counting their pennies and, coincidentally, finding themselves increasingly poorer, according to a trend that is placing the country, the driving force of East Africa's economy, among the world's upper-middle classes, but with frightening social inequalities.
While salaries have remained the same as last year, according to the latest consumer price index report published by the Kenya National Bureau of Statistics (KNBS), between June 2024 and June 2025, many basic necessities for Kenyan citizens have increased in price, driven by an annual inflation rate of 3.8%. This includes not only essential everyday goods such as food and petrol, but also medicines, household cleaning products and items typically associated with the domestic economy of poor people, such as firewood (up 2%) and charcoal.
Among the most expensive foods, greengrocers report spinach, carrots, tomatoes and cabbage, with increases of up to more than 10%. The price of sugar, which is a staple in the daily diet of Kenyans, has risen considerably, increasing by 5.5% in one year. On the other hand, the price of milk in shops has remained unchanged, which is one of the few pieces of good news.
Another staple food for the population is maize: the price of raw maize has risen by 2.8%, slightly less (2.1%) than maize flour, which was once a staple on Kenyan tables but now often has to be replaced due to its price, which has more than doubled in the last ten years.
As for petrol, this year it costs 178.2 shillings per litre at the pump, an increase of 1.6% compared to last June. This is not a worrying rise, but as a result, the prices of everyday transport (especially matatus) are also affecting Kenyans' pockets. On the other hand, the price of diesel has fallen, as has the price of electricity, albeit imperceptibly. Kerosene and LPG have also seen a slight reduction in prices.
The real estate sector has not been spared either, with a 0.7% increase in the price of tiles and a slight increase of 0.2% in the monthly rent for a single room, which has exceeded 4,000 shillings per month (approximately £28) on average. Although modest, these changes have contributed to the overall increase in the cost of housing and public services. With inflation growing at 0.5% per month since the beginning of the year, it is expected to reach 6% by the end of 2025.
That is, if the effects of the new budget and interest on debt do not first make themselves felt in some form in the pockets of Kenyans, who already have several reasons to suffer.
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