News / Africa

Cost of Living Rising in Kenya

Kenyan protesters hold placards during a demonstration against food and fuel prices hikes in Nairobi, Kenya, April 19, 2011 (file photo).
Kenyan protesters hold placards during a demonstration against food and fuel prices hikes in Nairobi, Kenya, April 19, 2011 (file photo).
Michael Onyiego

Shortages of food and fuel in Kenya are sending the cost of living upwards, threatening political and social crises.

One mango and three bananas at Nairobi's City Market costs 50 shillings, or about $.60. While such prices would certainly attract shoppers in the developed world, many of Kenya's residents live on less than $1 per day, keeping these fruits off the plates of many.

Now, food prices are skyrocketing across east Africa - by some estimates as much as 30 percent since January - putting "luxury" items such as fruits firmly out of the question for a large segment of the country.

And small-scale vendors are also feeling the pain. A vendor at the City Market, Howard Mutua, says the rising costs are cutting into his profits as well as his customers' baskets.

"The normal price I have been taking from the farmers, it has gone up," said Mutua.  "By the time I take it from the farmers up to here I am using transportation and the transportation is also high. So I end up increasing my price and that will affect also my customers. They are taking less."

Mutua, like most Kenyans, holds the high taxes imposed by the government on fuel imports responsible for the rising cost of living.

"The best thing I would advise the government to do? They should tackle the fuel problem," Mutua noted.  "If they could [work] on that fuel problem, I think everything will be well."

With the government heavily taxing oil imports, the cost of petroleum in Kenya has risen from around $1 per liter to over $1.30 in just the past few months.

But high taxes are not solely to blame for the rising cost of living.  Kenyans have been hit from all sides by rising inflation, government tariffs, import mismanagement, Middle East conflict and climate change.

As economic analyst Robert Shaw explains, Kenya's underproduction of staple items has placed it dangerously at the mercy of local and global economic instability.

"In the case of oil it is the volatility that has been taking place in North Africa and some of the Arab countries," noted Shaw.  "On the other side of the coin, a number of these countries, including Kenya, are particularly vulnerable to those increases because they are major importers of not just oil but also food. Kenya imports three quarters of its wheat, three quarters of its rice."

Kenya produces an estimated 200,000 tons of corn each year, but consumes nearly twice as much.

And the country may not be able to count on the corn it does produce. Kenya is in the midst of a worsening drought, spurred by the failure of the country's traditional "short rains" season. The "long rains," traditionally expected in March and April, have only just begun and are expected to fall short of historical averages. The price of corn has tripled since last year, forcing the government to remove the 50 percent tax on imports.

In late April, hundreds of Kenyans gathered in front of Parliament to demand action on the rising cost of living.

But so far, government response has been slow.  Finance Minister Uhuru Kenyatta announced a 20 percent tax cut on fuel just two weeks ago. The subsidy has come into effect just in time for a fuel shortage across the country.  In Nairobi, roads have been gridlocked from morning until night as customers queue in front of petrol stations in the hopes of finding fuel.

And Shaw says the measures undertaken by the government may end up distorting Kenya's markets in the long-run.

"These fuel shortages are not just happening because there happens to be no product," noted Shaw.  "According to the government there is plenty of product.  The reason is probably because to sell the fuel at the price that has been regulated by the government is really not a viable option."

All of these factors have in turn triggered inflation, which threatens to strengthen the rise in prices. April saw a 12.05 percent inflation rate, the highest in nearly 18 months.

Kenya is not the only country in east Africa feeling the effects of global and local instability. Rising prices in Uganda have triggered protests and demonstrations over rising costs. Over the past month, the protests have been crushed with the full force of Uganda's military and police. But scenes of opposition leaders being arrested and beaten have triggered international condemnation and pushed the country to the brink of a political crisis.

Kenya is hoping to avoid the same fate, but may not be able to stem the rising tide of discontent. Workers are becoming increasingly fed up and organized labor is beginning to demand higher wages to cope.

On Labor Day, the leader of Kenya's Central Organization of Trade Unions, Francis Atwoli,  threatened strikes and protests if demands for a 60 percent increase in the minimum wage were not met.

But Shaw says raising wages could make matters worse.

"You can understand the demands but, quite honestly, in the bigger picture it's very difficult because you will actually create an even greater spike in inflation. In the end, it's likely that there won't be any major winners," added Shaw.

As prices continue to rise, Kenyans are watching and waiting to see if the government can head off what some are calling a looming crisis.

You May Like

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
South Africa Sees Male Circumcision as Way to Reduce HIV Infectionsi
X
November 28, 2014 3:31 PM
South Africa remains plagued by AIDS despite massive government and NGO efforts on prevention and life-sustaining Anti-Retro-Viral programs. But the country has opened up another front to reduce new HIV infections: promoting circumcision. Emilie Iob reports for VOA News from a pioneering circumcision center in Orange Farm, Johannesburg.
Video

Video South Africa Sees Male Circumcision as Way to Reduce HIV Infections

South Africa remains plagued by AIDS despite massive government and NGO efforts on prevention and life-sustaining Anti-Retro-Viral programs. But the country has opened up another front to reduce new HIV infections: promoting circumcision. Emilie Iob reports for VOA News from a pioneering circumcision center in Orange Farm, Johannesburg.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.

All About America

AppleAndroid