Aasai

Speaking at the DTB Economic and Sustainability Forum in Nairobi, economic analyst Kwame Owino argued that the reported 3.5% inflation rate in February reflects weak demand rather than genuine price drops. “The decline isn’t because goods have become cheaper but because people have less money to spend,” he explained.

Food prices, in particular, have fluctuated significantly over the past five years, often rising faster than wages. While some basic commodities have seen price reductions—such as sugar dropping from Sh209 to Sh161 per kilogram—these decreases are not substantial enough to improve household purchasing power. In contrast, essential goods like bread and fuel remain significantly more expensive than in previous years.

Poverty remains a major concern, with the Kenya National Bureau of Statistics (KNBS) reporting that 39.8% of the population—over 20 million people—live below the poverty line. Food poverty affects 31.7% of Kenyans, with rural households and those with children experiencing even higher rates of financial distress.

While government officials, including Principal Secretary Chris Kiptoo, argue that macroeconomic indicators show progress, financial experts like Anthony Mwithiga of Old Mutual Investment Group note that improvements at the national level take time to translate into everyday economic relief. “Markets react before individual behaviors and financial wellbeing catch up,” he said.

The 2024 Financial Services Monitor further highlights that nearly half of employed Kenyans rely on side hustles to supplement their incomes, underscoring the strain on wages. Meanwhile, those invested in the stock market have benefited from economic gains that have yet to trickle down to the broader population.

Despite official optimism, many Kenyans remain unconvinced, feeling the gap between economic indicators and their financial realities continues to widen.