High food prices dampen new year holiday spirit as living cost rises

Traders wait for fresh bananas at Riosiri Market in Kisii County on 15/8/2021.. An excess supply of the produce in the local market has driven down prices of the region's major cash and food crop.A big banana retails at sh 400 up from sh 600.[Sammy Omingo,Standard]

As Kenyans usher in the New Year, a cloud of rising food prices is casting a shadow over the festive spirit.

The recent surge in inflation has significantly increased the cost of staple foods such as maize flour, tomatoes, and sugar, forcing many families, particularly those in lower-income brackets, to cut back on their holiday spending.

Over the past month, numerous retailers, including major supermarkets, have implemented price hikes on essential commodities.

This trend coincides with official statistics revealing that the cost of living index in Kenya has climbed from 2.8 per cent to 3.0 per cent in December.

According to the Kenya National Bureau of Statistics (KNBS), the Food and Non-Alcoholic Beverages Index—a critical component of the country's food basket—rose by 0.7 percent between November and December 2024.

Specific items have seen dramatic increases in their prices.

For instance, the cost of sifted maize flour surged by seven per cent, while fortified maize flour and loose maize flour increased by 5.8 per cent and 1.8 per cent, respectively, during the same period.

In contrast, some produce, including mangoes, Irish potatoes, and cabbages, experienced price declines of 6.2 per cent, 5.0 per cent, and 2.8 per cent, respectively, offering a small measure of relief to consumers during the otherwise high-cost season.

Additionally, the housing, water, electricity, gas, and other fuels index rose by 0.2 per cent in December, largely due to increased electricity prices.

The costs for both 50 kWh and 200 kWh of electricity rose by 0.6 per cent and 0.5 percent, respectively. On a slightly positive note, kerosene prices decreased by 2.0 percent in the same timeframe.

Year-on-year inflation, as measured by the Consumer Price Index (CPI), stood at three per cent in December 2024, signifying a general price increase of 3.0 percent compared to December 2023.

This inflationary trend is primarily driven by rising costs in the food and non-alcoholic beverages category, which saw a notable increase of 4.8 per cent, alongside a 0.2 per cent rise in transport costs.

Despite a dip of 0.2 per cent in the housing, water, electricity, gas, and other fuels category over the past year, these three divisions collectively account for over 57 percent of the CPI's overall weight.

The transport sector, meanwhile, witnessed a 1.8 percent increase in prices between November and December.

This spike was largely attributed to soaring fares for public transport, particularly on some routes where costs surged by up to 50 percent.

However, prices for diesel and petrol saw slight declines, dropping by 1.8 per cent and 2.4 percent, respectively.

Traditionally, Kenyans ramp up their spending during the final weeks of the year, preparing for Christmas and New Year celebrations and related school reopening in early January.

Unfortunately, this December, many families found themselves grappling with significantly higher expenses. 

 "Everything is way more expensive; it puts a heavy strain on our budgets. In previous years, I could manage my expenses, but now everything costs three or four times more than before," lamented Esther Njeri Mugo, a mother of four from Naivasha.

Her sentiments reflect a broader concern among consumers, as high food prices continue to dampen the holiday spirit in many households across the nation.

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