With the kenyan elections done and the winner declared, there are a lot of issues that the country needs to tackle. Even though there are pending presidential petitions to be considered, it doesn’t reduce the severity of the issues. Here’s some of the issues the President will have to tackle as he gets sworn in.
Kenya’s inflation advanced to a record high in August, despite sustained increases in the cost of food, petrol, and housing, even as the next president faces economic uncertainty.
According to monthly inflation figures from the Kenya National Bureau of Statistics (KNBS), the country’s overall rate of inflation in August was 8.5 percent, up from 8.3 percent in July.
For the third month in a row, the rate of inflation has stayed over the government’s goal range of 2.5 to 7.5 percent, which is intended to maintain price stability in the domestic market.
The prolonged drought in Kenya’s Northern Arid and Semi-Arid districts affected 2.1 million people in September 2021. In January 2022, the figure was anticipated to rise to 3 million by the end of March.
Rising food prices
Kenya is witnessing the highest food prices in 5 years caused by inflation, drought, and other issues. Despite the government subsidies, a two-kilo packet of white maize flour, the country’s main meal, had the biggest year-on-year price increase of 37.9%, followed by kerosene at 30.5%.
The country has been suffering from maize scarcity for at least four months, prompting the National Treasury to suspend import duties and accept imports from outside the Common Market for Eastern and Southern Africa (Comesa).
The Kenya shilling fell to an all-time low on Friday as economic uncertainty surrounds the future head of government following the filing of nine petitions challenging the election of President-elect William Ruto.
The local currency, which has been falling for the past 16 months, was trading at 120.10 units to the dollar on Friday morning before stabilizing at 119.90 in the afternoon.
The local currency has been pushed down by rising oil prices and hard-dollar demand from industries like energy and industry, according to several forex merchants.
Traders also warned that month-end foreign currency demand from importers has been exerting pressure on the shilling, which is expected to persist in the coming days.