Kenya’s cost of living eases, Treasury CS says as 2026/27 budget process kicks off

Kenya’s cost of living is showing signs of relief, Treasury Cabinet Secretary John Mbadi has said, pointing to falling inflation and lower prices for essential commodities.

He made the remarks during the launch of the 2026/27 national budget preparations in Nairobi on Monday.

Mbadi dismissed claims that the reduction in inflation was due to technical adjustments in economic reporting, stressing that the decline is real and has had a tangible impact on household budgets.

He noted that inflation, which peaked at 9.6% in 2022, has now dropped.

“Remember that in 2022, we had inflation rates at unimaginable percentages, 9.6%. Now it has come down to 4.1. To me, clearly, that also reflects a reduction in the cost of living,” he said.

Data shows that staple goods, including maize flour, sugar, and fuel, are significantly cheaper than during the highs of late 2022 and early 2023.

The CS explained that public demonstrations over high prices, seen in early 2023 when citizens carried cooking pots on their heads to protest, have largely subsided.

“Today, how many people are in the streets with sufurias on their heads? I don’t see them. It means now the cost of what was being cooked by the sufuria has gone down,” Mbadi said

He said the absence of such protests indicates that households are now feeling some relief in their daily expenses.

While acknowledging ongoing pressures on the economy, particularly from high debt servicing where nearly half of ordinary government revenue goes toward interest payments Mbadi said decisive government interventions have helped stabilize the situation.

He recalled the tense period last year when a $2 billion (Sh260 billion) Eurobond was due for repayment in June, causing panic in financial markets and a sharp drop of the shilling to 165 against the US dollar.

Government actions to restructure liabilities and manage debt have since strengthened the local currency, which has remained steady at around 129.2 shillings to the dollar for over a year.

Treasury data also shows that foreign exchange reserves have improved, with import cover rising to 5.2 months, up from 3.8 months last year and just 2.3 months in 2022.

Mbadi stressed that the cost of living is measured using real economic data, not political statements or public demonstrations. He emphasized that the government remains committed to reducing debt risks while maintaining financial stability and supporting households through practical measures.

The CS also reassured Kenyans that the ongoing budget process will prioritize economic stability, debt management, and policies aimed at easing everyday costs for citizens.

He said the government will continue monitoring prices of essential goods, stabilizing the currency, and ensuring that fiscal policies support both growth and affordability for families.

By linking inflation trends, currency stability, and debt management, Mbadi painted a picture of a slowly improving economy, suggesting that households are beginning to feel relief after a period of high prices and economic uncertainty