As reported by Bloomberg, the inflation decline is coming off the heels of weaker growth in food and energy prices, with the annual inflation recording its slowest pace in almost 12 years.
Consumer prices grew 3.6% in September relative to the previous year, the lowest level since December 2012, according to a statement emailed from the country’s capital on Wednesday.
The inflation rate fell from 4.4% in August to a figure lower than the 4.3% median projection of four economists in a Bloomberg survey. Prices increased 0.2% on a monthly basis.
“Prices of food and non-alcoholic drinks — which make up a third of the inflation basket – grew 5.1% from a year earlier, the weakest pace since December 2020,” Bloomberg’s report reads.
“Yields of corn, the nation’s staple, are seen growing by 5.2% to 50 million 90-kilogram bags this year, according to the agriculture ministry. That should help ensure adequate supply and keep prices in check.”
Kenya’s economic gains prior to the protest
While the June 2024 anti-tax protest suggests that Kenyans have been dissatisfied with the performance of the Ruto administration, the country had been recording a string of economic gains since the year began.
In February, the country’s inflation hit a 23-month low of 6.3%. In March the inflation fell even further from the figure recorded in February to 5.7%. In April, the inflation rate fell to 5.0%, and in May, the country’s inflation maintained the 5.0% level before declining sharply to 4.6% in June.
In April, the World Bank ranked the Kenyan Shilling as the world’s best performing currency. A sharp contrast from the year prior when the country was said to have one of the worst.
In July, however, the Kenyan currency under performed as a result of disruptions in economic activities, brought on by the protest.
The East African country’s currency was trading at Sh131.574 versus the US dollar.
This dip contradicted the currency’s performance in previous months, which saw it fall from Shs161/$ to Shs128.66/$.
