Hike in Prices for Basic Commodities
Hike in Prices for Basic Commodities
Hike in Prices for Basic Commodities
In the 2024 Economic Survey, the Kenya National Bureau of Statistics (KNBS) expressed worry over price fluctuations for essential goods.
According to KNBS, the unpredictability of the weather in Kenya and other regions of the world will have a negative impact on farm production and drive up prices.
Additionally, KNBS pointed out that the government’s strict budgetary policies will have greater detrimental consequences on prices.
“The tight fiscal stance being pursued by the Government may also lead to tight liquidity affecting aggregate demand.” perused a portion of the document.
KNBS cautioned that rising prices on the international market, which will also affect the nation, could be caused by the continuous conflicts in the world, such as those between Iran and Israel, Russia and Ukraine, and Israel and Palestine.
The country’s economy will be negatively impacted by this rise in necessities, which might make life even more difficult for the majority of Kenyans who currently struggle to make ends meet.
However, KNBS also noted that there were some positive indications that some of the measures being implemented by the Kenya Kwanza Government may boost economic activity in the country.
Additionally, Kenyans are informed that within the year, they will have more disposable income due to the ease of inflationary pressures. Also, the price of global commodities will fluctuate meaning that Kenyans will also experience sporadic months of low prices.
“The distribution of subsidised fertiliser and seed subsidy program is expected to support the agriculture sector’s growth. Kenya’s economy will also remain resilient,” read part of the report.
This economic survey comes at a time when Kenyans are staring at an even higher cost of living if the Finance Bill 2024 is implemented. If the bill is enacted as it is, Kenyans will pay more for plastic household items, packaging and wrapping materials, cooking oil, and airtime and internet services.
Many organizations and groups have protested the higher taxes since they were announced, claiming that they will burden Kenyans even more.
On Wednesday, May 22, Anthony Mwangi, the CEO of the Kenya Association of Manufacturers, disclosed that the Finance Bill’s tax hike will lead to a rise in the sale of counterfeit goods.
“Kenyan companies and products become uncompetitive, leading to our market being flooded with products from other EAC and COMESA countries,” he said.
