Kenya's overall year-on-year inflation rate has dropped to 6.6 per cent in December 2023, as compared to 6.8 per cent in November. The inflation rate is the lowest since April 2022.

According to the Kenya National Bureau of Statistics (KNBS), the current rate was mainly driven by increases in prices of commodities under transport (11.7 per cent), housing, water, electricity, gas and other fuels (8.3 per cent) and food and non-alcoholic beverages (7.7 per cent) between December 2022 and December 2023.

"These three divisions account for over 57 per cent of the weights of the 13 broad categories. The CPI (Consumer Price Index) and inflation are generated from data collected through monthly surveys of retail prices that target a representative basket of household consumption goods and services. The data collection is conducted in the second and third weeks of the month from a sample of outlets located in 50 data collection zones across the country," KNBS added.

The food and non-alcoholic beverages index rose by 0.3 per cent between November 2023 and December 2023, lower than the increase of 0.4 per cent observed between October 2023 and November 2023.

The prices of carrots, kale (sukuma wiki), mutton/goat meat and beef with bones increased by 14.5, 6.2. 5.1 and 3.6 per cent, respectively between November 2023 and December 2023. During the same period, however, prices of mangoes, potatoes, maize flour-sifted and fortified maize flour went down by 5.7, 4.9, 3.8 and 3.7 per cent, respectively. .

The housing, water, electricity, gas and other fuels index increased by 0.4 per cent between November 2023 and December 2023 mainly due increase in prices of 200 kWh and 50 kWh of electricity by 1.0 per cent and 1.2 per cent, respectively.

The price of a litre of Kerosene dropped by 2.0 per cent during the same period.

Despite a drop in the prices of petrol and diesel by 2.3 per cent and 1.0 per cent, respectively, between November 2023 and December 2023, the transport index went up by 0.5 per cent during the period, mainly due to increase in country bus fares for some routes.

The country’s real Gross Domestic Product (GDP) grew by 5.9 per cent in the third quarter of 2023, compared to 4.3 per cent in the corresponding quarter of 2022. This growth was mainly supported by a rebound in agricultural activities that had contracted in 2022.

The Kenyan Shilling depreciated against all major international trading currencies in the third quarter of 2023 compared to the corresponding quarter in 2022. On average, the Kenyan Shilling ceded ground against the Euro, Pound Sterling, US Dollar and Japanese Yen by 30.3 per cent, 29.7 per cent, 20.6 per cent, and 15.3 per cent, respectively.

The local currency also notably depreciated against South African Rand, Tanzania Shilling and Uganda Shilling.