Treasury Cabinet Secretary John Mbadi has assured Kenyans that the cost of living is easing, pointing to lower inflation and a steady shilling as proof of progress. Speaking during the launch of the 2026/27 budget-making process in Nairobi, Mbadi dismissed claims that the numbers were manipulated, stressing that the impact is being felt in households.
What Data Shows About Kenya’s Cost of Living
Mbadi highlighted that inflation has dropped significantly compared to two years ago. “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.
According to him, prices of basic goods such as maize flour, fuel, and sugar have fallen from the record highs of late 2022 and early 2023. He added that the cost of living should not be debated in political rallies or churches but through real economic data. “The cost of living is not determined in political rallies; it will not be determined in churches. It is determined by real data collected, collated, and disseminated,” he explained.
Mbadi also pointed out that the street protests of 2023, where citizens carried cooking pots on their heads to demonstrate against high food prices, have since faded. “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,” he remarked.
How Has the Shilling Stabilized Against the Dollar?
The CS acknowledged that the economy remains under pressure from heavy debt repayments but noted government interventions prevented a debt default. “Early last year, there was panic in our economy. The panic was that we were likely to default on paying our debt. There was a 2 billion US dollar Eurobond coming to maturity by June, with no clear plan to pay it. The shilling lost ground, almost 165 to the dollar,” Mbadi said.
He credited debt restructuring and liability management measures with stabilizing the shilling at 129.2 against the dollar for over a year. Import cover has also improved, now standing at 5.2 months compared to 3.8 months last year and just 2.3 months in 2022. “The reality is, it is real. If you want to know that it is real, look at the forex reserves,” he said.
Mbadi emphasized that reducing debt risks and maintaining currency stability remain top priorities. He said the government is committed to anchoring long-term growth on sound financial management while ensuring households continue to feel the easing cost of living.
By Lucky Anyanje