Tougher times for households as basic commodity prices surge

A trader at the Kangemi market in Nairobi /FILE

Consumers experienced a marginal rise in inflation to 3.6 per cent in March 2025, as a drop in sugar and bean prices failed to counteract an overall increase in the cost of living.

This was a 10 basis point increase from the 3.5 percent reported last month. This marks the fourth consecutive increase since inflation dropped to below 3 per cent in October last year.

Latest data from the Kenya National Bureau of Statistics shows there was a general increase in prices of essential commodities, particularly within the Food and Non-Alcoholic Beverages sector.

Among notable price increases, a kilogram of sukuma wiki rose by 6 per cent to Sh 88.5, loose maize grain climbed 3.3 per cent to Sh64.7, and a 2kg packet of fortified maize flour rose 2.9 per cent to Sh165.05.

Beef with bones also recorded a slight increase of 0.9 per cent, reaching Ksh 672.5 per kilogram, electricity also recorded price increase contributing significantly to the overall inflationary trend.

While food prices remained the primary driver of inflation, the Transport sector also played a role, witnessing a 1.5 per cent rise largely due to an increase in local flight costs by 3.9 per cent.

Conversely, prices in the Housing, Water, Electricity, Gas, and Other Fuels category declined by 0.8 per cent over the same period, offering slight relief to households.

Last month cooking gas prices went up slightly by 0.2 per cent from February; however, its prices remain 2.7 per cent lower than this time last year.

This category, alongside food and transport, accounts for over 57per cent of the total consumer expenditure, underlining their impact on inflation rates.

Compared to a similar period last year, the recent data is a 6.6per cent increase in the cost of the essential commodities over the past year.

“The annual consumer price inflation as measured by the Consumer Price Index (CPI) was 3.6 per cent in March 2025. This is an indication that the general price level in March 2025 was 3.6 per cent higher than it was in March 2024,” KNBS said in its monthly Update.

“The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages category (6.6 per cent); and Transport category (1.5 per cent) over the one-year period.”

A sectoral breakdown reveals that the alongside Food, Non-Alcoholic Beverages Index rose by 0.7 per cent between February and March.

The Housing, Water, Electricity, and Gas Index edged up by 0.2per cent due to a slight increase in the cost of LPG. 

Additionally, electricity tariffs for 50 kWh and 200 kWh rose by 1.0 per cent and 0.9 per cent, respectively. Meanwhile, the Transport Index increased by 1.5 per cent, primarily driven by the rise in domestic airfares, while fuel prices remained unchanged.

The restaurant and accommodation services index also climbed 0.4 per cent, influenced by higher prices for hotel and restaurant meals.