Kenya inflation stays high amid improved food production
Thursday October 05 2023
Kenya’s inflation grew marginally to 6.8 percent in September, 2023. PHOTO | POOL
Kenya's production of key food items is projected to grow by up to 60 percent against last year even as food prices remain elevated, keeping inflation high.
Latest data from the Ministry of Agriculture shows that maize production is projected to increase by 29.3 percent to 44.6 million bags; wheat by 62.6 percent to 4.9 million bags; Irish potatoes to 25.3 million bags and beans production to reach 11.7 million bags, a 56.3 percent growth.
The increase has been attributed to sufficient rains witnessed this year with the production of food crops such as sorghum also expected to grow by 150 percent to 3.3 million bags and millet by 62 percent to 1.1 million bags.
Last year was one of the worst years for Kenya’s agriculture and saw the sector contract by 1.6 percent, with food prices hitting high levels.
Read: Leaders blame food insecurity on bad policies
“Fewer respondents (47.9 percent) expect the price of consumer goods to increase in the next one month, down from 69.4 percent in the July survey,” said Central Bank of Kenya (CBK) Governor Kamau Thugge at a post-Monetary Policy Committee meeting media briefing on Wednesday.
While indicating that the agriculture sector survey conducted by the CBK last month also showed that fewer people (45.1 percent) expect commodity prices to rise over the next three months to the end of the year, Dr Thugge noted that food has remained among commodities pushing up inflation in the country.
Kenya’s inflation grew marginally to 6.8 percent in September, with the biggest contributor being food which took up 44 percent share, above the fraction fuel inflation has taken.
Read: Kenya’s inflation eases to 14-month low on food costs drop
Rising prices of vegetables such as onions, spinach, Sukuma wiki and tomatoes have kept food inflation high.
Latest data by the Kenya National Bureau of Statistics showed that through September, maize flour retailed at an average Ksh179.9 ($1.21), almost the same price it retailed at in September last year when maize production was at its lowest, with about 35 million bags produced in 2022.