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

Turkey's Erdogan: Women Not Equal to Men

Speaking at conference in Istanbul, President Erdogan says Islam has defined a position for women: motherhood More

Ahead of SAARC Summit, Subdued Expectations

Some regional analysts say distrust between Pakistani, Indian officials has slowed SAARC's progress over the year More

Philippines Leery of Development on Reef Reclamation in S. China Sea

Chinese land reclamation projects in area have been ongoing for years, but new satellite imagery reportedly shows China’s massive construction project 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.
Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Changei
X
November 24, 2014 10:09 PM
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 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.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid