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| President William Ruto |
As President William Ruto marks his second year in office, the rising cost of living remains a key issue for households across the country.
When he ascended to power, President Ruto pledged to lower the cost of living, at one point stating that he would bring down the price of commodities on the day he took the oath of office.
“Nikiweka biblia chini, bei ya unga itateremka…” Ruto said in a previous statement.However, reality set in quickly for President Ruto as the Kenyan currency lost value, trading against the US dollar at over Ksh.160, the highest exchange rate in history.
This devaluation, combined with rising fuel prices, led to increased transport and production costs. In July 2022, a litre of petrol retailed at Ksh.159.12, kerosene at Ksh.127.9, and diesel at Ksh.140.00.
By September 2023, the Energy and Petroleum Regulatory Authority significantly raised fuel prices. Petrol increased by Ksh.16.96 to Ksh.211.64 per litre, kerosene by Ksh.33.13 to Ksh.202.61 per litre, and diesel by Ksh.21.32 to Ksh.200.9 per litre, marking the highest fuel price increase in the country’s history. This sharp rise came within a year of Ruto taking office, contrasting with his earlier criticism as deputy president.
“The people at the Ministry of Petroleum have some questions to answer. The corruption cartel in the ministry must be broken,” Ruto said at the time.
Food, fuel, and taxes were central to Ruto’s pre-election campaign. As deputy president, he often criticized the government’s handling of the cost of living, pointing to external factors like the Ukraine war as mere excuses.
“Si leo wamesema wataupungunza bei ya unga, na si vita bado inaendelea kule Ukraine…kumaanisha walikuwa wanatudanganya…” he said while being the deputy president.
Despite attempts to introduce subsidies, inflation remained high. In August 2022, inflation stood at 8.5%, rising to 9.2% in September and peaking at 9.6% in October. By early 2023, inflation had settled between 9.0% and 9.2%, before dropping to 6.7% by August 2023.
Throughout mid-2023, inflationary pressures led to public protests. During this time, staple food items like maize flour saw price hikes, with fortified maize flour rising from Ksh.177.34 in 2022 to Ksh.192.46 in 2023. Sugar increased from Ksh.129.55 to Ksh.194.29, and Irish potatoes from Ksh.84.85 to Ksh.107.98 per kilogram.
Ruto, however, reiterated that his administration would subsidize production rather than consumption.
“We are already implementing the programs that will deal with the cost of living. The fertilizer will be set at Ksh.2,500. Farmers are doing a great job,” said the president of production subsidies.
With increased borrowing and a looming Eurobond repayment, Ruto’s first budget in 2023 introduced new tax measures, including a 3% housing levy, further squeezing Kenyans’ disposable income.
Two years into Ruto’s presidency, inflation stood at 4.4% in June 2024, largely driven by rising food prices, energy costs, and transportation expenses.
Between August 2023 and August 2024, food and non-alcoholic beverage prices increased by 5.3%.
Despite inflation stabilizing, Kenyans continue to face high commodity prices, reduced purchasing power, and challenging financial decisions.
By Jimmy Mbogoh