Kenya's Cost of Living Soars as Currency Plunges and Food Prices Surge
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Cost of living in Kenya rose 6.7% in year to August, driven by sharp increases in prices of basic goods like sugar, beans, maize flour, and cooking oil.
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Prices rose due to drought reducing food production, rising global prices, withdrawal of subsidies by new administration, and depreciation of the Kenyan Shilling.
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The shilling has lost over 20% of its value against the US dollar and 30% against the euro in the past year.
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Government spent nearly Sh400 billion servicing external debt in 2022/23 fiscal year.
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President Ruto's pledge to stabilize currency in 2 months after new fuel import deal with UAE has not materialized, with shilling continuing to lose value.