You wake up early, budget in hand, but by midday, the money already feels stretched.
Food prices are up, fares have doubled, and rent remains unforgiving. For many Kenyans, this is not just a feeling—it is the daily reality of a shrinking wallet in a tough economy.
Economist Charles Karisa says this strain reflects deeper cracks in the country’s economic policies.
“The level of poverty has really increased… from about 33 percent to 36.1 percent,” he notes, citing the Kenya Poverty Report 2022 by the National Bureau of Statistics (KNBS), adding that unemployment has also edged up.
In his view, “clearly the policies are not currently working,” as incomes decline and opportunities remain limited.
Businesses, he explains, are still reeling from the COVID-19 shock. Instead of hiring, many employers are retrenching. This has left households with fewer income streams, even as the cost of living continues to climb.
Karisa points to fuel as a major driver of the crisis.
“It is the only product with about seven or eight taxes,” he says. High fuel costs push up production, transport, and ultimately the price of basic goods.
“Talk about rent, transport, food—everything goes up,” he adds, painting a picture familiar to many Kenyans.
Food insecurity is another looming concern. With unreliable rainfall and stalled irrigation projects, such as the Kulalu scheme, the country remains vulnerable.
“If we don’t have rains, then we don’t have food,” Karisa warns, urging greater investment in irrigation, agricultural support, and climate-resilient farming methods.
Looking ahead, Karisa says relief may not come soon without bold reforms. He calls for a “360-degree review” of policies, more support for industries, and incentives to attract investors.
Without these interventions, he cautions, many Kenyans will continue to struggle, caught between rising costs and limited opportunities, with households forced to stretch every shilling just to survive.
by GLORIA MUSIMBI
