- Historically, Kenya still struggles with consistent budget deficits, poor financial governance, corruption, heavy debt burden and other natural circumstances like rampaging droughts.
- In July 2023, Kenya’s inflation rate fell to 7.3%, the lowest reading since May 2022, and from 7.9% in June.
- Most Kenyans have scaled down on their expenditure, with a number doing away with paid services usually offered by women like domestic workers, triggering job losses.
The globe has been struggling with inflation, generally posed by Covid-19 pandemic after-effects, the Russia-Ukraine war and other factors.
Africa has not been left behind in the inflation brunt due to the global inflation-causing factors.
In Kenya, recent elections and government transitions have further put the country on the receiving end of economic turmoil.
Historically, Kenya still struggles with consistent budget deficits, poor financial governance, corruption, heavy debt burden and other natural circumstances like rampaging droughts.
The current high inflation in Kenya didn’t just happen or start now.
According to Macrotrends, Kenya’s inflation rate was 7.66% in 2022, a 1.55% increase from 2021, 6.11% in 2021, a 0.71% increase from 2020.
In June 2022, Kenya’s inflation rate rose to 7.9%, breaching CBK’s upper limit target range of 2.5% of 7.5% for the first time since 2017.
More context
In 2017, Uhuru Kenyatta, the then-president, tried everything to rationalize the effects of high inflation. Back then, a packet of maize flour was retailing at KSh140.
Kenyatta invoked the Price Control (Essential Goods) Act 2011, followed by the National Treasury capping the price of cooking flour at KSh90, with those breaching the guideline left to face a jail term of 5 years or a fine of KSh1M.
High inflation rate pointers increased in the second quarter of 2022, and many policy and economic experts raised concerns about the need for government to employ lofty measures to curb the situation.
The aftermath
The inflation effects are felt by every Kenyan today, holding on to hope for a better tomorrow.
The cost of living, the cost of production and the cost of doing business are very high beyond comprehension.
Families can no longer afford three meals a day, most students face the threat of school dropout, and a number of startup businesses have closed as others remain struggling.
Banks and other financial institutions have increased interest lending rates while prices of basic commodities like cooking flour, cooking oil, rice, and fuel have literally doubled up.
In July 2023, Kenya’s inflation rate fell to 7.3%, the lowest reading since May 2022, and from 7.9% in June.
Returning to the central bank’s preferred range of 2.5% to 7.5% (source: Kenya National Bureau of Statistics).
Good still, the current statistics posted indicate a further relief.
Kenya’s annual inflation rate fell for the third straight month in August 2023 from 7.3% in the prior month indicated above to 6.7%, the lowest still since April 2022 and moving further within the central bank preferred range of 2.5.
That is according to Trending Economics and the World Bank.
Important to note is the reality that even with the statistics above, for most Kenyans, it is still no longer about our financial future but the struggle of meeting the financial obligations of urgency now, like the simple act of having a meal of the day.
Many are pointing to the government to devise mechanisms like former president Kenyatta did in 2017, invoking the necessary legislation or developing innovative solutions like reducing or waiving import duties on staple commodities as a temporary relief measure.
At a crossroads
Other Kenyans expect the government to borrow more, as others hope that it will play the magic stick game for everything to turn to normal soonest.
On the other hand, other Kenyans think that Kenya needs more long-term approaches to the high cost of living, which will fruit sustainable solutions.
While on this, it argues that commodity price restrictions are so old-fashioned in an economy such as that of Kenya, which is open and competitive.
The current government, led by President William Ruto, has put some measures to address the high cost of living. Several are anchored in the recently passed finance bill.
An example is the increase in taxation rates to survive the country’s resource basket, the introduction of the housing bill, and other measures like addressing corruption, all meant to help improve Kenya’s economy.
The drop in the inflation rate is a statistics indicator that the country is headed in the right direction in stabilizing its economy.
As Kenyans await with hope, the vulnerable groups in society, including children, the abled differently, youths, marginalized groups, girls, and women continue to bear the brunt of the current high cost of living.
The effects on women
Women continue to struggle with the ever-widening gender gaps caused by systematic historical gender barriers orchestrated by patriarchal systems. Any aspect affecting the development of society hits women and girls double hard.
The effects of the high cost of living deepen gender inequality, making women inflation shock absorbers. Here’s how:
- Exacerbated mental health challenges
Women are traditionally positioned to be homekeepers and caregivers, with commodities like food, cooking oil, fuel, domestic helpers’ wages, and such being under them. These commodities’ prices have gone high due to inflation. The women are meant to feel the pain more, for they pay for these goods and services, stressing them.
Most women prefer to give up on their welfare to offer the best for their children and family. While they do that mentally, some suffer from anxiety, lack of sleep, stress, and depression.
With professional counseling services being expensive, these women choose to cope on their own.
- Heightened exposure to gender-based violence
Women who have been sole breadwinners in their families headed by irresponsible or manipulative male heads rarely manage to explain the situation to those male heads. Failure to provide is proof of defiance, and the result is abuse.
Those who male abusers and manipulators provide for will fear to move out because the perpetrators use financial support as a strategic way to continue to abuse them. Left with no choice, the victims just linger.
- Exposure to HIV/AIDs, other STDs and unplanned pregnancies
Many women don’t have a say in their sexual trade relationships because they are at the receiving end.
Such include those from already vulnerable backgrounds, like single-parenting mothers and the jobless, who have resorted to trading their bodies for food and other basic essential life needs, including shelter.
Research has shown that the vulnerability exposes them to scenarios of having unprotected sex because it fetches more money and because their male counterparts will insist on unprotected sex for them to pay.
- Weakened immunities, hence prone to opportunistic diseases
Because of their nurturing nature, women will skip meals in favor of their children and family. They will keep off food like vegetables and fruits, which look like luxuries and can do without. The result is a weakened immunity that attracts diseases and reduces the ability to work.
- Theft and other petty offenses
Women will not sit and wait to see their children drop out of school, miss food and other essentials. They opt to get involved in petty offenses like stealing to salvage their families.
A number have been exposed to mob justice, leading to severe injuries, physical disability, or death. Others have been imprisoned.
- Family breakups, separation and divorce
Irresponsible male heads have opted for separation and divorce.
Heightened GBV fueled by the high cost of living has led to separation and divorce.
- Continued widening financial gaps
Caring for their families, women deplete their savings and run into debt. Such affects them even past the inflation period, further widening the financial gaps between men and women in society.
- Loss of jobs/enter unpaid caregiver jobs
Most women are in the hospitality industry, unskilled jobs, caregiving, and such. Most Kenyans have scaled down on their expenditure, with a number doing away with paid services usually offered by women like domestic workers, triggering job losses.
- Many women remaining unmarried past the biological clock
The biological clock tends to affect women more than men.
Many young men (potential suitors) are choosing to stay away from dating for lack of resources to sustain the dating and marriage stage of life. A number have chosen to wait till the economic situation changes for the better.
While men can wait, women are left struggling with the fact that their biological clock is fast ticking. Something that they have no control over.
Heightened mental health issues, low work productivity and involvement in unprotected and uncommitted sexual relationships result.
Broadly, this contributes to the ever-rising number of women single-headed families.
- School dropouts and early, forced marriages
Girls are more likely to drop out of school and get exposed to early child marriage scenarios because of the high cost of living.
Some communities in Kenya still believe and practice giving away their young girls for marriage in exchange for a few cows and goats.
A young girl who has witnessed her family sleeping hungry will easily buy in without whistleblowing to be the Esther of her family.
The situation is dire and urgent interventions are needed to salvage half of Kenya’s population, women and girls, posing a big threat to the country’s journey to achieving Vision 2030 and, broadly, achieving sustainable development goals.
Coping strategies for all
With the aftermath of the inflation affecting women more, everyone is still feeling it.
As we urge the government to move with speed and implement strategies to regain the economy, here are some of the personal coping strategies we can all embrace:
- Individuals must embrace budgeting. Write down what you intend to spend before you do. Compare with your expected income. Check out if they tally, and in case of a deficit, reflect on how to fill it.
- Cut off what you don’t need. From the budget, see how to cut unnecessary expenses—subscriptions, holidays, eat-outs, and other forms of entertainment.
- Diversify your income/revenue sources. For example, if you are in formal employment, think of starting a side hustle to fill your financial gaps caused by the high cost of living. Seek mentors in the line you are interested in adopting to diversify your income sources. Mentors are people who have gone ahead of you and, therefore, have experience and expertise. They will help you learn quickly and achieve faster and better results.
- Ask for a salary increment or job promotion. The worst that can happen is you getting a “no,” and it is okay. But first, ensure that you have upskilled and worked hard for what you are asking for.
- Try saving and investing, even if in small percentages. You need it for tomorrow. You will get a saving if you embrace other strategies shared, like cutting off those things you don’t need and diversifying your income sources.
- Normalize survival strategies like purchasing wholesale and bulk goods; you will save a lot. Do away with services you used to pay for and try to do on your own, like washing your car, gardening, etc. Use public transport when you can or carpool with friends, and carry packed lunch and snacks to the office.
- Avoid incurring debts at all costs. Live within your means. Avoid a hedonistic manner of spending by finding other ways to feel good, and avoid peer pressure by living an authentic life.
Avoid bank loans at this time because the interest rates are generally high.
Importantly, humanity’s golden rule calls for us to practice empathy, unity, and love by sharing. Share whatever little you have. Also, train your young ones to do so even at school.
YOU MAY ALSO READ: An overview of food and nutrition security in Kenya
Lastly, let us all care for our health and be mindful of our mental well-being. Speak out to your close friends, and seek professional help when need be.
Together, we will rise.
