The Lower Eastern Times Opening The Third Eye
Related Articles
According to a new report by the Kenya National Bureau of Statistics (KNBS), the country’s annual inflation rate declined to 4.5% in 2024, down from 6.8% the previous year.
Click here to join our WhatsApp Channel
This drop was largely attributed to reduced food prices and the strengthening of the Kenyan shilling against major global currencies, especially between July and December.
In the food and non-alcoholic beverages category, inflation slowed to 5.6% in 2024 from 9.7% in 2023. This was mainly due to improved food supply driven by favorable weather conditions.
The transport sector saw a 5.0% increase in costs, primarily because of higher public transport fares, but this was still a slower rise compared to the 12.2% surge recorded in 2023.
Meanwhile, the inflation rate for alcoholic beverages, tobacco, and narcotics stood at 7.8%, pushed up by the rising costs of products such as miraa, cigarettes, beer, wine, and spirits.
Coffee and coffee substitutes experienced the highest inflation rate among commodities, soaring by 21.7% due to global price increases.
“The decline in inflation across various income brackets in 2024 was mainly driven by falling food prices—particularly maize grain and its products like flour,” the KNBS report said.
It also credited lower fuel prices, including petrol and diesel, for reducing inflationary pressure in the transport sector.
Cocoa drinks became 16.3% more expensive, a reflection of increased cocoa product costs. On the other hand, the sugar, confectionery, and dessert category registered a 10.7% deflation due to falling sugar prices.
Notable price hikes among food items included cabbages (23.4%), sukuma wiki (21.5%), and Irish potatoes (20.9%). Maize grain, however, saw the steepest price drop at 19.3%, significantly lowering the cost of maize flour.
Click Here To Subscribe To Our YouTube Channel
Among income groups, Nairobi’s middle-income households experienced the highest inflation rate at 5.1%, while the lowest-income households saw a more modest 4.2%.
The report noted that elevated exchange rates early in the year impacted higher-income groups more significantly due to their greater consumption of imported goods.
