BUSINESS

Cost of Living Edges Up as Power, Food Prices Push Inflation to 4.4% in March

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Different vegetables on display in the market. PHOTO/Pexels
Different vegetables on display in the market. PHOTO/Pexels
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Kenyan households felt a slight squeeze in March as the cost of living edged up, with electricity and food prices quietly pushing inflation higher.

Latest figures from the Kenya National Bureau of Statistics (KNBS) show that inflation rose to 4.4 per cent in March, up from the previous month, reflecting a gradual but noticeable increase in everyday expenses.

Power costs were among the key drivers. According to the Consumer Price Index (CPI), the cost of consuming 200 kilowatt-hours of electricity climbed to Ksh 5,689.98 in March from Ksh 5,564.78 in February. For smaller households using 50 kilowatt-hours, the bill rose to Ksh 1,297.26 from Ksh 1,265.96. The increase, while not dramatic, adds to the already heavy burden of utility costs for many families, especially in urban areas where electricity is a basic necessity rather than a luxury.

Food prices told a similar story, with several staple items becoming more expensive over the month. A kilo of tomatoes jumped sharply by 13.3 per cent to Ksh 99.60, continuing a trend often linked to seasonal supply shortages and transport costs. Irish potatoes rose by 4.9 per cent to Ksh 107.16, while the price of boneless beef inched up by 1.8 per cent to Ksh 737.30. These increases, particularly in fresh produce, tend to hit households quickly since they form part of daily meals.

Still, it was not all upward movement. Some essential commodities offered a bit of relief. Sugar prices dipped by 1.3 per cent to Ksh 164.37, spinach dropped by 3.8 per cent to Ksh 71.52, and maize grain, a staple in most Kenyan homes, fell by 2.4 per cent to Ksh 70.44. Cooking fuel also saw a marginal decline, with KNBS noting that, “Prices of gas/LPG decreased by 0.1 per cent during the same period.”

Housing costs, which often weigh heavily on household budgets, remained stable. The data shows that rent for a single room did not change in March, suggesting some temporary calm in the rental market despite broader economic pressures.

March inflation

Zooming out, the March inflation rate of 4.4 per cent still sits comfortably within the government’s preferred range of 2.5 to 7.5 per cent, a sign that price increases, while present, are not yet spiralling out of control. Analysts often link the relatively stable inflation environment in recent months to improved food supply following better rains, a more stable shilling compared to last year, and government measures aimed at cushioning key sectors such as fuel and energy.

Even so, the small, steady increases in basics like electricity and fresh food highlight a familiar reality for many Kenyans: inflation is not always about big jumps, but the slow, persistent rise in the cost of everyday living.

As the year progresses, attention will likely turn to how global oil prices, exchange rate movements, and local weather patterns shape inflation, especially for food and energy, the two sectors that continue to define the cost of living for most households.

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