The Kenya National Bureau of Statistics (KNBS) on Thursday listed electricity as one category of essential commodities whose prices increased in October 2024.
In the energy sector, electricity costs witnessed modest upticks, with 200-kilowatt and 50-kilowatt consumption rates increasing by 0.2% and 0.3% respectively. These increases primarily stem from heightened demand during the dry season, coupled with elevated production costs faced by electricity providers. However, this was partially offset by welcome reductions in other energy prices, as cooking gas decreased by 0.4%, while kerosene saw a significant drop of 4.3%. Additionally, both petrol and diesel prices fell by 2.0%, providing some relief to consumers and businesses alike.
The food sector demonstrated particularly pronounced volatility. Mango prices surged by 9.9%, leading the increases in fresh produce, followed by substantial rises in carrots (5.7%), oranges (5.1%), and tomatoes (3.7%). These increases reflect ongoing challenges in agricultural production and distribution networks. However, some staple foods showed promising price reductions, with sugar declining by 2.3%, maize flour by 1.8%, and wheat flour by 1.7%. Kale prices also decreased by 1.3%, contributing to a more balanced food price landscape.
These price fluctuations have contributed to a notable shift in Kenya’s inflation metrics. The year-on-year inflation rate measured by the Consumer Price Index declined to 2.7% in October, down from 3.6% in September, with a modest month-to-month inflation rate of 0.2%. This overall moderation in inflation rates can be largely attributed to the decreases in fuel and cooking fuel prices. The Central Bank of Kenya had anticipated some of these price movements in their October 11 report, particularly regarding vegetable prices and staple foods. Their projections considered both domestic factors, such as the anticipated short rains’ impact on food production, and international influences, notably the effect of Middle East tensions on global oil prices.
These price variations carry significant implications for Kenya’s economic landscape. While rising costs for essential items like electricity and certain foods strain household budgets and potentially constrain consumer spending, the decreases in fuel prices and some staple foods provide a counterbalancing effect. The government has responded with various stabilization measures, including targeted subsidies and initiatives to enhance supply chain efficiency.
