Nairobi ranked among most expensive cities for expatriates

It has become costly for expats to live in Nairobi compared to other African cities, according to the latest survey.

A
report by the Economist Intelligence Unit’s Worldwide Cost of Living
survey says the cost of living in Kenya’s capital has risen 13 places
compared to the previous year’s ranking, placing it at position 69
globally.

This is in contrast to Lagos at position 127,
putting it among the 10 cheapest cities in the world. The findings are
based on comparison of more than 50,000 individual prices of 160
products and services. The survey tracks prices of food, drinks,
clothing, household supplies and personal care items alongside private
schools, domestic help and recreational costs.

The
report is usually used by companies to help calculate cost-of-living
allowances and build compensation packages for expatriates and business
travellers. Kenya’s inflation dropped to 4.69 per cent last year
compared to 6.3 per cent the previous year. Appreciation of Kenyan
shilling against the dollar leaves expatriates worse-off because it
means less money for them after conversion to the local unit.

The
shilling gained one per cent against the dollar, becoming the only
African currency to strengthen against the greenback in 2018.

“Last
year inflation and devaluations were prominent factors in determining
the cost of living, with many cities tumbling down the ranking owing to
economic turmoil, currency weakness or falling local prices,” the report
says.

Nairobi’s ranking by the London-based Economist
reinforces the findings of the 2018 survey conducted by UBS, a global
bank headquartered in Switzerland.

Prices and Earnings

The
study, dubbed Cost of living in cities around the world: Prices and
Earnings 2018, also ranked Nairobi at position 68 and the most expensive
city to reside in Africa.

The findings, based on
prices, earnings, purchasing power and working time, ranked Cairo and
Lagos as the least expensive cities globally. A June 2015 survey by
Mercer’s 21st Cost of Living also ranked Nairobi 104 out of 207, making
it one of the most expensive cities.

For the first time
in the history of the Economist’s survey, three cities— Singapore, Hong
Kong and Paris — share the title of the world’s most expensive cities.
The report found Asia and Europe continuing to dominate the top 10 list.

The
cheapest city on Earth was found to be Caracas, displacing Syria’s
Damascus, as a result of the economic crisis in Venezuela. Singapore is
the only city to have maintained its ranking from the previous year. It
has been the most expensive city now for five consecutive years.