Calls to deploy subsidies as a short-term solution

The cost of living is expected to rise further in coming months as commodity prices remain elevated as a result of the ongoing Russia-Ukraine and COVID-19.

While immediate action on the part of the government would be to deploy subsidies on key sectors to shore up production and cool off escalating prices, public policy analyst Dr Fredrick Ogola says the government should channel efforts towards improving productivity in order to increase income on pockets of ordinary Kenyans.

On Thursday, the Kenya National Bureau of Statistics (KNBS) said rate of inflation jumped to 5.6% in March from 5.08% in February as a result of higher prices of food and fuel.

According to Dr Ogola who was speaking on KBC Channel 1 to discuss the current high cost of living, tax cuts as demanded by a section of Kenyans may not bare desired effects as the current tax base is currently narrow.

He further urges for an increment in Research and Development budget in order to have competitive homegrown solutions instead of relying on foreign imports which he argues only stifle the growth of local industries.