Kenya has the fourth highest food inflation rate in Africa

Kenya’s year-on-year food inflation has increased 27%, the fourth highest in Sub-Saharan Africa on account of rising global commodity prices

According to Africa’s Pulse report by the World Bank, soaring commodity prices which are projected to lead to higher inflation have been imposed by the Russia-Ukraine war adding to supply chain problems, high transportation costs, and devastating weather effects from floods and droughts which had  persisted prior to the conflict in Eastern Europe.

Only Sudan, Ethiopia and Angola with 155%, 43%, and 38% year-on-year food inflation rates respectively had the higher rates than East Africa’s largest economy between February last year and February 2022.

For Kenya, the escalating food inflation is being exacerbated by the fuel shortage which persists in most parts of the country, a situation government officials have attributed to the Russia-Ukraine war which has disrupted global supplies.

In a bid to ease the crisis, a ship with 100 million litres docked at the port of Mombasa which Energy ministry said would ease the situation.

However, while consumers continue queuing for the commodity across the country,  fuel  marketers are facing accusation of hoarding despite availability of fuel in depots.

This has led to the state promising swift action on oil marketers found to have engaged in creating the artificial fuel shortage.

Rubis Energy Chief Executive Officer Jean Bergeron was the first casualty late Wednesday of the sanctions which resulted to his work permit being revoked leading to his deportation.

The government had announced the release of Kshs. 34 billion for the fuel subsidy fund in a bid contain the situation which the World Bank now says could prove unsustainable should the war persist as Kenyans stare at record high prices at the pump.

“The Russia-Ukraine conflict is exerting pressure on inflation, which in turn may derail growth in the near term. Fuel subsidies in Kenya have contributed to stopping fuel prices from rising. This has been successful so far, but it will place pressure on public finance if the war continues,” says World Bank in the report.

The rising food prices are further expected to adversely affect poor families where food takes majority of the family budget. In Kenya, food budget takes 58% of poor families income according to the World Bank.

“Consequently, within African economies, the impact of rising food prices will affect poorer households more than wealthier ones, as the share of food expenditures in the budget of the former is higher.”

Month-on-month inflation rose to 5.56% in March from 5.08% in February 2022 on account of fuel and food price increments.

Nonetheless Kenya’s dependence on wheat imports from Russia and Ukraine remains moderately high as the two countries combined contribute 39.5% of total wheat imports.

Kenya could see additional pressure on food prices due to rising fertilizer prices, armyworm invasion and dry season which continue to persists various parts of the country leaving at least 3 million people on the brink of starvation.