KNBS reveals mobile money and 6 other everyday costs rising in Kenya

Kenya's National Bureau of Statistics (KNBS) has reported that a variety of everyday services and household essentials have seen price increases in August, despite some major food and fuel prices falling. The latest Consumer Price Index (CPI) data highlights the less visible side of Kenya's cost-of-living squeeze, showing modest increases in frequently used goods and services that can add up across household budgets.

Mobile money transfer charges rose by 1.5% from Ksh15.47 to Ksh15.71, mirroring the 1.5% increase in the average price of a return flight between Nairobi and Mombasa. Other notable increases include the price of 500 grams of detergents up 0.8% to Ksh254.80, mobile phone airtime up 0.4% to Ksh2.45 per minute, and personal-care costs rising 1.3% due to a 1.3% increase in tissue and toilet paper prices.

The report also indicates that while some food prices are up by 9.0% year-on-year, prices for some items like sifted maize flour have fallen 2.7%. Electricity and rent have also increased, with the average monthly rent for a single room rising from Ksh4,225.93 to Ksh4,233.85. Despite these increases, the underlying inflation measures indicate that core inflation has risen to 3.4%, contributing 3.9 percentage points to the overall 6.6% inflation rate, while non-core inflation stands at 14.7%, contributing 14.7 percentage points.

These shifts in prices across various sectors show a complex inflation picture, with both volatile costs and prices extending across the wider household spending basket contributing to Kenya's inflation rate.