Kenya’s Inflation holds steady at 9.2 percent in March

By Phyllis MUCHOKI

Kenya’s Inflation rate in March held steady at 9.2 percent, helped by a drop in the prices of onions and tomatoes after rains towards the end of the month, data from the Kenya National Bureau of Statistics (KNBS) shows.

The inflation rate — a measure of the cost of living over the last 12 months — remains above the Central Bank of Kenya (CBK) target of between 2.5 and 7.5 percent.

Inflation soared to 9.2% year-on-year in February from 9.0% a month earlier. February’s inflation rate broke for three consecutive months when the rate fell. It rose to 9.6% in October, its highest level since May 2017. February’s rate is still above the government’s preferred range of 2.5% to 7.5%.

On Wednesday, the CBK increased its lending rate to 9.5 percent from 8.75 percent, citing sustained inflationary pressures, the elevated global risks, and their potential impact on the domestic economy.

High prices in the economy have been aggravated by drought, a depreciating shilling, and the war in Ukraine that has disrupted global supply chains and driven up costs of key raw materials like fuel.