Cost of Living Registers an All-Time High as Inflation Hits 6.3 Percent

The cost of living in Kenya has registered an all-time high in 15 months with inflation now standing at 6.32 percent.

According to data from the Kenya National Bureau of Statistics (KNBS), the current rate of inflation is the highest since the 7.17 percent registered in February 2020.

This was largely attributed to a rise in food and fuel costs, which consequently affected the energy and transport sectors.

Foodstuffs that Kenyans depend on including Sukumawiki, spinach, beef, and cooking oil saw an increase in price counterweighing a cool-down in other commodities such as onions, tomatoes, and potatoes.

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Similarly, electricity cost rose during the month due to greater fuel-cost charge to monthly billings to customers by Kenya Power.

At the same time, the cost of rent for a single room increased by 0.7 percent to 3,720 shillings whereas transport costs shot up by 0.3 percent.

The cost of petrol rose by 0.6 percent to an average of 127.98 shillings a liter following the Energy and Petroleum Regulatory Authority’s (EPRA) effected changes on pump prices on June 14.

The increased cost of living signals tough times ahead for Kenyans who are already depressed and frustrated from more taxes imposed by the government.

These stats come on the heels of the Financial Bill 2021, which was signed into law by President Uhuru Kenyatta on 29^th June taking effect from June 2^nd, 2021.

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In the new bill, members of parliament increased excise duty on airtime and data from 15 percent to 20 percent. The move is bound to increase the cost of making calls and browsing the internet as telecommunication and network providers in Kenya, including Safaricom, Airtel, and Telcom have the customers absorb the burden.

Safaricom had earlier warned that it would increase the cost of airtime and internet charges if the president did not back out of the MPs idea to raise excise duty by 5 percent further adding that the burden will only be on the customer.

Meanwhile, the cost of cooking gas was also affected by the introduction of a 16 percent VAT tax on the same.

Unfortunately, Kenyans will not only be struggling at the house level but also in their businesses especially hotel industries that depend largely on cooking gas.

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The exercise duty on bank loans is targeting to see banks pay KRA more than 7 billion annually, which will only add more burden to the borrowers since this will be transferred to them by the lenders.

In an attempt to raise more than 2.04 trillion shillings as revenue and in a bid to keep up with the ever-rising wage bill, the government is pushing Kenyans into another hardship that might cause families to go hungry and businesses to collapse.

Kenyans however, will have to contend with the inflation and more taxes especially because you have no option when it comes to the use of energy, airtime, and internet with the ever-growing digitalization at workplaces and working at home.