Kenya is showing signs of relief for households as the cost of living begins to ease, according to Treasury Cabinet Secretary John Mbadi.
Speaking in Nairobi during the start of the 2026/27 budget preparations, Mbadi said falling inflation and lower prices of basic goods are making life slightly easier for ordinary citizens.
He noted that inflation, which reached almost 10 per cent in 2022, has now dropped to 4.1 per cent. This, he said, is a real change that is visible in daily expenses rather than just in statistical reports.
Prices for key items like maize flour, sugar, and fuel have declined from the peaks seen in late 2022 and early 2023.
Mbadi also reflected on the protests of 2023, when citizens carried cooking pots on their heads to highlight the high cost of living.
He said such demonstrations have largely disappeared, indicating that the pressure on households has reduced.
Despite this positive shift, the government continues to face challenges from heavy debt repayments, which consume nearly half of its revenue. Mbadi explained that careful measures, including debt restructuring and improved management of financial resources, have helped stabilise the Kenyan shilling.
Once under significant pressure, the currency has now remained steady at around 129 shillings to the US dollar for over a year.
The country’s foreign reserves have also strengthened, now covering more than five months of imports, compared to just over two months in 2022.
Mbadi stressed that these improvements show the government’s commitment to stabilising the economy while managing risks associated with debt.
Economists say these developments are encouraging for investors and households alike. Lower inflation, stable currency, and more predictable prices for everyday goods suggest that Kenya is gradually moving toward a more secure economic outlook, even as the government continues to address fiscal challenges.
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