REPORT: High Prices For Basic Goods Hits Kenyan Stores, Shops
Kenyans will have to dig deeper into their pockets to satisfy basic needs as commodity prices are expected to climb, according to Stanbic Bank’s monthly purchasing report.
The Purchasing Managing Index (PMI) survey shows an increase in prices caused by corporations passing on higher government taxes to consumers.
“Higher purchasing costs were often passed on to customers in the form of greater selling prices, according to survey respondents. Subsequently, January data signaled a solid increase in average prices charged,” the report noted.
According to the PMI survey, increased taxation has resulted in higher commodities costs and other imported items.
Earlier today, KNCCI launched the KNCCI 2025 Business Barometer report at Serena Hotel, Nairobi. The report measures the expectations of businesses in 2025.
— Kenya Chamber (@kenya_chamber) February 4, 2025
We spoke to 1981 businesses across the country. See below highlights:
1. 60% of the surveyed businesses are not looking… pic.twitter.com/hEsdZN0yOK
This, combined with Kenyan enterprises acquiring more inputs, led to higher costs charged to consumers.
On the other hand, the latest survey data showed that the number of purchases increased for the sixth straight month.
This puts Kenya in an uncertain situation, resulting in a slower growth rate, the weakest recorded during the month under review.
Optimism in the private sector remained low in January.
The Future Output Index recorded one of its lowest levels since the poll began 11 years ago, while it was somewhat better than December’s performance.
The low optimism was demonstrated by a fall in staffing numbers in January, following a three-month period of expansion.
Nonetheless, the current survey indicated that just a fractional drop, exacerbated by a sense of uncertainty, is projected to prevail, perhaps leading to an economic collapse.
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Another analysis by the Kenya National Chamber of Commerce and Industry (KNCCI) estimates that 60% of Kenyan businesses will reduce hiring by 2025 due to high taxes, unfriendly government policies, and limited access to finance.
This creates a bleak picture for a large number of Kenyans who are already unemployed.
Only 6% of businesses are optimistic about increasing output over the coming year, with attitudes centered on new products and services and more marketing activity.
“The Kenyan Purchasing Managers Index (PMI) expanded for a fourth month running in January but at a slightly weaker pace than in the two preceding months, reflecting the ongoing resilience of the private sector at the start of this year,” stated Christopher Legilisho, an economist at Standard Bank.
REPORT: High Prices For Basic Goods Hits Kenyan Stores, Shops
