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The Kenya National Bureau of Statistics (KNBS) in the 2024 Economic Survey has raised concerns about inconsistencies in the prices of basic commodities.
In the report, KNBS reveals that the unpredictable weather conditions in Kenya and other parts of the world will adversely affect farm produce and result in a hike in prices.
Furthermore, KNBS noted that the government’s tight fiscal stance will lead to more negative effects on prices.
“The tight fiscal stance being pursued by the Government may also lead to tight liquidity affecting aggregate demand.” read part of the report.
KNBS also warned that the prices may increase due to the ongoing conflict in the world such as between Israel and Palestine, Israel and Iran, and Russia and Ukraine will also result in high prices in the global market which will also reflect in the countries
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This increase in basic commodities will also take a toll on the country’s economy which may even get tougher for most Kenyans who are already struggling 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.
Since it was unveiled, several groups and institutions have opposed the increased taxes arguing that they will burden Kenyans further.
Anthony Mwangi, the CEO of the Kenya Association of Manufacturers on Wednesday, May 22, revealed that the increase in the taxes through the Finance Bill will result in an increase in counterfeit goods in the market.
” Kenyan companies and products become uncompetitive, leading to our market being flooded with products from other EAC and COMESA countries,” he stated.
