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

Yemen Brings US, Iran Closer to Naval Face-off

US sending two more ships to waters off coast of Yemen to take part in 'maritime security operations' More

Minorities Become Majority Across US

From 2000 to 2013, minorities became the majority in 78 counties in the United States. Here's where those demographic shifts are happening More

Japan's Maglev Train Breaks Own Speed Record

Seven-car 'magnetic levitation' train traveled at more than 600 kilometers per hour during test run Tuesday 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.
New Brain Mapping Techniques Could Ease Chronic Paini
X
Shelley Schlender
April 20, 2015 7:03 PM
Pain has a purpose - it can stop you from touching a flame or from walking on a broken leg. As an injury heals, the pain goes away. Usually. But worldwide, one out of every five people suffers from pain that lasts for months and years, leading to lost jobs, depression, and rising despair when medical interventions fail or health experts hint that a pain sufferer is making it up. From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video New Brain Mapping Techniques Could Ease Chronic Pain

From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video Hope, Prayer Enter Fight Against S. Africa Xenophobia

South Africa has been swept by disturbing attacks on foreign nationals. Some blame the attacks on a legacy of colonialism, while others say the economy is to blame. Whatever the cause, ordinary South Africans - and South African residents from around the world - say they're praying for the siege of violence to end. Anita Powell reports from Johannesburg.
Video

Video Italy Rescues Migrants After Separate Deadly Capsize Incident

Italy continued its massive search and rescue operation in the Mediterranean Monday for the capsized boat off the coast of Libya that was carrying hundreds of migrants, while at the same time rescuing Syrian migrants from another vessel off the coast of Sicily. Thirteen children were among the 98 Syrian migrants whose boat originated from Turkey on the perilous journey to Europe.
Video

Video New Test Set to Be Game Changer in Eradicating Malaria

The World Health Organization estimates 3.4 billion people are at risk of malaria, with children under the age of five and pregnant women being the most vulnerable. As World Malaria Day approaches (April 25), mortality rates are falling, and a new test -- well into the last stage of trials -- is having positive results in Kenya. Lenny Ruvaga reports for VOA from Nairobi.
Video

Video Are Energy Needs Putting Thailand's Natural Beauty at Risk?

Thailand's appetite for more electricity has led to the construction of new dams along the Mekong River to the north and new coal plants near the country's famous beaches in the south. A proposed coal plant in a so-called "green zone" has touched off a debate. VOA's Steve Sandford reports.
Video

Video Overwhelmed by Migrants, Italy Mulls Military Action to Stabilize Libya

Thousands more migrants have arrived on the southern shores of Italy from North Africa in the past two days. Authorities say they expect the total number of arrivals this year to far exceed previous levels, and the government has said military action in Libya might be necessary to stem the flow. VOA's Henry Ridgwell reports.
Video

Video Putin Accuses Kyiv of ‘Cutting Off’ Eastern Ukraine

Russian President Vladimir Putin, in his annual televised call-in program, again denied there were any Russian troops fighting in Ukraine. He also said the West was trying to ‘contain’ Russia with sanctions. Henry Ridgwell reports on reactions to the president’s four-hour TV appearance.
Video

Video Eye Contact Secures Dog's Place in Human Heart

Dogs serve in the military, work with police and assist the disabled, and have been by our side for thousands of years serving as companions and loyal friends. We love them. They love us in return. VOA’s Rosanne Skirble reports on a new study that looks at the bio-chemical bond that cements that human-canine connection.
Video

Video Ukrainian Volunteers Search for Bodies of Missing Soldiers

As the cease-fire becomes more fragile in eastern Ukraine, a team of volunteer body collectors travels to the small village of Savur Mohyla in the what pro-Russian separatists call the Donetsk Peoples Republic - to retrieve bodies of fallen Ukrainian servicemen from rebel-held territories. Adam Bailes traveled with the team and has this report.
Video

Video Xenophobic Violence Sweeps South Africa

South Africa, long a haven for African immigrants, has been experiencing the worst xenophobic violence in years, with at least five people killed and hundreds displaced in recent weeks. From Johannesburg, VOA’s Anita Powell brings us this report.
Video

Video Apollo 13, NASA's 'Successful Failure,' Remembered

The Apollo 13 mission in 1970 was supposed to be NASA's third manned trip to the moon, but it became much more. On the flight's 45th anniversary, astronauts and flight directors gathered at Chicago's Adler Planetarium to talk about how the aborted mission changed manned spaceflight and continues to influence space exploration today. VOA’s Kane Farabaugh reports.
Video

Video Badly Burned Ukrainian Boy Bravely Fights Back

A 9-year-old Ukrainian boy has returned to his native country after intensive treatment in the United States for life-threatening burns. Volodia Bubela, burned in a house fire almost a year ago, battled back at a Boston hospital, impressing doctors with his bravery. Faith Lapidus narrates this report from VOA's Tetiana Kharchenko.
Video

Video US Maternity Leave Benefits Much Less Than Many Countries

It was almost 20 years ago that representatives of 189 countries met at a UN conference in Beijing and adopted a plan of action to achieve gender equality around the world. Now, two decades later, the University of California Los Angeles World Policy Analysis Center has issued a report examining what the Beijing Platform for Action has achieved. From Los Angeles, Elizabeth Lee has more.
Video

Video Endangered Hawaiian Birds Get Second Chance

Of the world's nearly 9,900 bird species, 13 percent are threatened with extinction, according to BirdLife International. Among them are two Hawaiian honeycreepers - tiny birds that live in the forest canopy, and, as the name implies, survive on nectar from tropical flowers. Scientists at the San Diego Zoo report they have managed to hatch half a dozen of their chicks in captivity, raising hopes that the birds will flutter back from the brink of extinction. VOA’s George Putic reports.
Video

Video Exhibit Brings Renaissance Master Out of the Shadows

The National Gallery of Art in Washington has raised the curtain on one of the most intriguing painters of the High Renaissance. Mostly ignored after his death in the early 1500s, Italian master Piero di Cosimo is now claiming his place alongside the best-known artists of the period. VOA’s Ardita Dunellari reports.

VOA Blogs