Kenya’s Treasury Cabinet Secretary John Mbadi announced on Monday that the country’s cost of living is declining, driven by falling inflation and lower prices for essential goods like maize flour, fuel, and sugar.
Speaking at the 2026/27 budget-making process launch in Nairobi, Mbadi highlighted a drop in inflation from 9.6% in 2022 to 4.1% in 2025, attributing the progress to government interventions.
Mbadi dismissed suggestions that the inflation reduction was merely a statistical adjustment, insisting that real data reflect tangible relief for households.
“The cost of living is determined by real data, not political rallies,” he said, noting the absence of protests like those in June 2023, when Kenyans marched with cooking pots—known as “sufuria protests”—to decry high prices.
The minister pointed to a strengthened Kenyan shilling, now stable at 129.2 against the US dollar, up from 165 in early 2023, and foreign exchange reserves covering 5.2 months of imports, a significant rise from 2.3 months in 2022. These gains, he said, followed decisive measures to avert a potential debt default, including timely repayment of a $2 billion Eurobond.
Despite these achievements, economists caution that challenges persist. Kwame Owino of the Institute of Economic Affairs argued that low inflation may reflect depressed household incomes rather than widespread prosperity. A 2024 Kenya Poverty Report indicated that 39.8% of Kenyans live below the poverty line, with hunger levels remaining critical.
Mbadi acknowledged the strain of high debt servicing, which consumes nearly half of ordinary revenue, but pledged continued fiscal discipline to reduce debt risks and boost economic stability.
The government’s focus on inclusive budgeting and digital tax reforms aims to sustain these gains, but public trust remains fragile after last year’s protests over the Finance Bill. Analysts suggest that tangible improvements in household incomes will be crucial to maintaining economic momentum.