FEATURED STORY

Cost of living in Nairobi on the rise, new global survey shows

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A panoramic view of Nairobi. Last year, the Mercer Cost of Living report ranked it as a mid-range expense location (123rd out of 209 cities).
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Nairobi has gone up from 123 to 97 on the ranking for the most costly cities in the world, a new report shows.

According to the 2019 Cost of Living survey by  Mercer, which ranks cities around the world, however, says that generally the cost of living in Nairobi, Kenya is moderate compared to other expat destinations. Last year, the Mercer Cost of Living report ranked it as a mid-range expense location (123rd out of 209 cities).

N’Djamena, Chad takes the lead as the highest-ranking city in Africa. Kinshasa, Dem. Rep. of Congo (22) is in second place, rising fifteen places. Libreville, Gabon (24) is the next African city on the list, followed by Lagos, Nigeria (25), which moved up seventeen places.

And despite dropping about 20 places, Luanda, Angola (26) still remains in fifth place.

“Each African country has its own unique economy and this is why multinationals need not approach their expatriate packages for Africa with one single strategy. Let’s look at it this way, while a city like N’Djamena in Chad has been listed as the 11th most expensive city in the world, whereas Mali comes in at the 124th position in terms of cost of living,” said Yolanda Sedlmaier, Principal Leader – Africa Mobility at Mercer.

In a rapidly changing world, mobility programmes have become a core component of multinational organisations’ global talent strategy. Organisations realize that to thrive they must embrace change, adapt to new technologies, and build emerging skills to attract, motivate, and enhance talent.

“In a skill-focused economy driven by digital disruption and the need for a globally connected workforce, deploying expatriate employees is an increasingly important aspect of a competitive business strategy for global companies,” said Ilya Bonic, President of Mercer’s Career business.

“There are numerous personal and organisational advantages for sending employees overseas, including career development, global experience, new skillsets, and re-allocation of resources. By offering fair and competitive compensation packages, organisations can facilitate moves that drive business results.”

Mercer’s 25th annual Cost of Living Survey finds that a number of factors, including currency fluctuations, cost of inflation for goods and services, and volatility in accommodation prices, contribute to the overall cost of expatriate packages for employees on international assignments.

Globally, the survey finds that eight out of the top ten of the world’s most expensive cities for expatriates are Asian cities, resulting from high costs for expatriate consumer goods and a dynamic housing market.

Tokyo (2), Singapore (3) and Seoul (4) top the list, while the costliest city in the world for the second consecutive year is Hong Kong (1).

 

Other cities appearing in the top ten are Zurich (5), Shanghai (6), Ashgabat (7), Beijing (8), New York City (9), and Shenzhen (10). The world’s least expensive cities for expatriates are Tunis (209), Tashkent (208), and Karachi (207).

Mercer is a global consulting leader in advancing health, wealth and careers.

Read: Starehe MP Jaguar caged amid Kenya, Tanzania fallout

Its 25th annual Cost of Living Survey finds that a number of factors, including currency fluctuations, cost of inflation for goods and services, and volatility in accommodation prices, contribute to the overall cost of expatriate packages for employees on international assignments.

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BT Reporter -

editor [at] businesstoday.co.ke

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