KNBS Report Shows Rise in Food And Service Costs Despite Easing Inflation

The Kenya National Bureau of Statistics (KNBS) has published its latest Kenya Consumer Price Index (CPI) report, offering fresh insight into how the cost of living shifted between January and February.

The report, released on Friday, February 27, paints a mixed picture of the economy, with notable increases in the prices of several essential goods and services even as the overall inflation rate eased slightly.

According to the data, food prices, particularly those of vegetables, registered some of the most significant month-on-month increases. Sukuma wiki, a staple in many Kenyan households, rose by 2.4 percent over the period under review. Cabbage and potatoes recorded even sharper increases, with each commodity climbing by 4.0 percent.

The steady rise in vegetable prices continues to exert pressure on household budgets, especially among low- and middle-income families that rely heavily on such affordable food options.

The hospitality industry also experienced price adjustments. The cost of meals served in hotels and restaurants edged up by 0.8 per cent in February, reflecting higher operational and supply costs. Guest house accommodation charges similarly rose by 0.6 per cent, signaling a gradual increase in travel and lodging expenses.

Overall, the accommodation and food services sector posted a 2.7 percent increase compared to the same period last year, underlining sustained cost pressures within the industry.

Education services were not exempt from the upward trend. Fees for certificate courses inched up by 0.1 percent during the month, contributing to a 3 percent annual rise in the education index. While the monthly increase may appear modest, the cumulative annual growth suggests a steady escalation in the cost of acquiring skills and training.

Healthcare costs also recorded noticeable increases. Hospital service charges went up, and the prices of essential medicines, including deworming tablets and drugs used to manage high blood pressure, became more expensive. These changes add to the financial strain faced by households managing chronic conditions or seeking routine medical care.

In the personal care category, price movements were mixed. Hairdressing services saw a marginal rise of 0.1 percent, while tissue and toilet paper products recorded a more pronounced increase of 1.4 percent. Such everyday household items, though often overlooked individually, contribute cumulatively to rising monthly expenditures.

Clothing prices registered some of the sharpest increases in the report. Men’s shirts rose by 4.1 percent, while men’s coats increased by 2.7 percent. The hikes were partly attributed to higher tailoring and clothing repair costs, indicating growing expenses within the broader apparel sector.

Insurance and financial services also experienced upward adjustments. Premiums for both medical and motor vehicle insurance rose by 0.2 percent in February. These increments contributed to a 0.7 percent year-on-year rise in the insurance and financial services index, reflecting gradual but steady increases in coverage costs.

Despite the broad-based price increases across many sectors, some relief was observed in transport. Fuel prices declined during the review period, with both diesel and petrol falling by 2.3 percent month-on-month.

Additionally, fares for inter-town bus and matatu travel decreased by 1.4 percent. The drop in transport costs offered a measure of respite for commuters and businesses reliant on fuel.

The latest adjustments come against the backdrop of a slight decline in the national inflation rate. Overall inflation eased from 4.4 per cent in January to 4.3 percent in February, signaling relative price stability at the macroeconomic level despite notable increases in specific consumer categories.

The KNBS report highlights the complex nature of price movements in the economy, where easing inflation does not necessarily translate into lower prices across the board. While consumers benefited from reduced fuel and transport costs, the continued rise in food, healthcare, clothing, and hospitality expenses underscores the persistent cost-of-living challenges facing many Kenyan households.

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