81pc of Nairobians worried about cost of living, TIFA report shows

Nairobi residents flocked Uhuru Park for thgis year's Christmas Day celebrations on Dec 25, 2024. [File, Standard]

Kenyans across all demographics in Nairobi are concerned about the rising cost of living, a new report by TIFA Research shows.

The report found 81 per cent of respondents are very concerned by rising commodity prices, with worry highest among those above 35 years.

Men reported greater concern than women, with 91 per cent citing pressure on household budgets and family upkeep compared to 84 per cent of women.

A price check on tomatoes, beef, potatoes, milk, cooking oil, maize grain, diesel, petrol and kale found increases ranging between Sh2 and Sh100. Only maize flour dropped in price, falling by Sh1.

"With 81pc of respondents facing either high living costs or constrained incomes, households have little capacity to absorb further price increases," the report states, adding, “Any additional costs are likely to deepen financial hardship and reduce consumer spending."

Transport, fuel, food and education account for 62 per cent of Nairobi residents' worries, the report found, while low income, unemployment and poor business performance make up 19 per cent.

High taxes account for 12 per cent while corruption, crime and insecurity worry 6 per cent of respondents.

The report also found that 33 per cent of online taxi-hailing app users want the government to regulate fares while 53 per cent would rather let the market decide.

Those opposed to government intervention feared it would push fares higher and instead urged the state to lower fuel costs, arguing this would ease pressure on fares.

"While improving driver earnings is widely recognised as an important objective, passengers remain concerned about affordability," the report states.

Supporters of regulation argued it is the government's responsibility to protect citizens and that drivers deserve better earnings.

Most online taxi users are based in Nairobi, according to the report.

Respondents said that given the high cost of living, a fare increase would push 60 per cent of them to abandon the service altogether in favour of matatus, boda bodas, walking or personal vehicles.

Another 22 per cent said they would continue using online taxis but change their habits by switching to cheaper options and using cabs less often. Only 18 per cent said nothing would change for them.