Spending among low-income earners up amid rising cost of living

Low-income earners in urban areas are spending more on purchasing basic commodities despite the cost of living marginally decreasing.

According to the Kenya National Bureau of Statistics(KNBS), the recent increase in food prices has increased the cost of living has hit people in the low-income earners bracket and more so in urban areas across the country.

The high cost of foodstuffs has seen Nairobi low-income earners’ inflation accelerate to 5.6% in January this year, above the national average of 5.39%.

According to the Leading Economic Indicators survey by KNBS, 7 out of ten Nairobi working-class households are spending an average of Kshs. 46,000 monthly on basic needs as the prices of goods skyrocket.

The report further says dry Maize prices increased from Kshs. 40 a kg in December 2020 to Kshs. 46 in January 2022, beans went up Kshs. 100to Kshs. 103 over the same period.

The middle-income earners were bogged down by an increase in gas prices with a 13kg gas cylinder retailing at Kshs. 2,659 in January.

Monthly trade volumes dropped from Kshs. 301.58 billion in December 2021 to Kshs. 254.68 billion in January 2022.

The value of total exports decreased from Kshs. 66.35 billion in December 2021 to Kshs. 60.41 billion in January 2022, while the value of imports decreased from Kshs. 235.23 billion in December 2021 to Kshs. 194.27 billion in January 2022.

The quantity of coffee exported increased from 2,314.35MT in December 2021 to 3,283.60 MT in January 2022 while its value rose from Kshs. 1,918.64 million to Kshs. 2,633.51 million over the same period.

The quantity of tea exported decreased from 47,922.07MT in December 2021 to 45,584.65 MT in January 2022.

The value of exported tea also dropped from Kshs. 12,724.88 million to Kshs. 12,628.76 million over the same period.