Drivers of Inflation in Kenya

Kenya has two major tribes that will forever live separately: the tribe of the rich and the tribe of the poor.

The gap between the poor and the rich in Kenya continue to widen with each passing day further diminishing hopes of reducing it.

Political leaders seem to be aloof of this fact as they are busy looting, stealing, raping and murdering with little concerns about the common man in the streets.

It now almost becoming an established fact that the poor will always be poor while the rich will grow richer in Kenya.

The cost of living has now skyrocketed and beyond reach for majority of Kenyans, who, even before the cost of living went up, were struggling to make ends meet.

Statistics indicate that inflation has now increased to more than six and there seems to be no hope of things getting better in future.

In Kenya, there are two key factors that often contribute to either the rising inflation or the dropping of it. These two factors are fuel and food.

Fuel is a key denominator that determines the state of almost all other sectors in Kenya. Any effect on the prices of fuel is adversely felt across other sectors.

The Government, through Energy Regulatory Commission, increased fuel prices by up to 13 percent, getting many Kenyans and sectors unaware.

This was the beginning of tough times ahead for both the lower class as well as middle class Kenyans.

The manufacturing sector, which mostly relies on fuel (diesel) for operation felt the heat. Manufacturing costs are said to have gone up by at least 5 percent. This costs had to be recovered and the only way to recover them was to pass the cost to the consumer.

Food is a basic need. Every human being needs food to live. Anything that affects food, affects everyone. With increase in fuel prices, prices of such common goods as food went up. This is what has driven inflation up.

Read:  Increase in Food prices force July Inflation to rise 6.39 pct

Other things like cooking oil, rice and sugar are also moving in a class of their own in terms of prices and Kenyans are suffering from within.

During the month of June, the National Treasury released the national budget for 2016/2017 financial year that was in deficit of more than 700 billion shillings that had to be borrowed.

According to financial analysts, the government is already ahead of its borrowing schedule with International Monetary Fund warning Kenya against her borrowing spree.

Kenyans are still paying for the Eurobond billions which they still have no clue what transpired of them or who borrowed how much and what the money was used for.

Life is becoming harder and harder each coming day. Kenyans are crying. They are bleeding from within. They are frustrated. Who is going to bail them out? They are desperate for sound leadership that will care for their daily lives.