Maize flour in a supermarket in Nairobi.
Lower-income families living in Nairobi have been the hardest hit in
terms of the rising cost of living in the past one year, with inflation
for this segment remaining above the national average for 11 straight
months. PHOTO | FILE | NATION MEDIA GROUP
Lower-income families living in Nairobi have
been the hardest hit in terms of the rising cost of living in the past
one year, with inflation for this segment remaining above the national
average for 11 straight months.
Official
data shows that the average inflation for poor households in Nairobi was
at 6.08 percent in May in contrast with that of middle income (2.68 per
cent) and upper income (2.67 per cent) residing in the city.
The
figure, though a drop from the peak of 8.36 per cent in February, is
above the national average of 5.33 per cent for the past 11 months. The
last time the inflation rate of Nairobi’s poor homes was below that of
the rest of households in Kenya was in July last year when it averaged
6.13 per cent. This was in contrast with the national average of 6.27
per cent.
COST OF LIVING
The
lower cost of living enjoyed by middle and upper-income Nairobi homes
and the rest of the urban areas in Kenya helped lower the May 2020
inflation to a 14-month low of 4.61 per cent, partially masking the woes
facing poor homes.
The difference in
inflation levels among Nairobi’s income segments as disclosed by the
Kenya National Bureau of Statistics is linked to the diverse consumption
habits.
While the rich spend a larger share of their
budget on transport, the middle class use their money on utilities and
rent while food takes the bulk of the poor’s budget.
Data
for last month shows a basket of goods classified as food and
non-alcoholic beverages had seen the highest year-on-year rise (8.15 per
cent) when compared with the other baskets used to measure inflation.
FOOD PRICE RISE
KNBS’
second survey on the impact of the Covid-19 virus on households showed
that 78.8 per cent of respondents have seen an increase in food prices
last month, further hitting low income households.
The
survey further said 61.9 per cent of respondents were out of work due
to coronavirus-related challenges, up from 49.9 per cent in May.
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