Chupilee Tefelopmen

Tough times ahead as inflation on a steep rise.

Inflation might hit an all-time high of 11 percent as a result of the prolonged drought earlier in the year, the Parliamentary Budget Office has warned, signaling tough times for Kenyans already reeling under the high cost of living.

Last month, inflation reached a 19-month high of 6.58 percent, eroding the purchasing power of consumers who now need an additional Sh658 to buy a basket of goods that last year cost Sh10,000.
The grim report also comes against the backdrop of the data released by the Kenya National Bureau of Statistics (KNBS), which indicated only 78,400 new formal jobs were created in the economy last year, compared to 114,400 in 2017.
This was the slowest pace of formal job growth since 2012 when the economy churned out 75,000 official jobs.
“The economic growth projection of 6.2 percent for 2019 appears to be premised on weak fundamentals,” warns the document titled ‘Unpacking the Estimates of Revenue and Expenditure for 2019/20 and the Medium Term’.
The document, prepared by the Parliamentary Budget Office, notes that the Treasury pegged the 2019 economic growth projections on stable weather despite the already “very apparent poor performance of the March-April-May long rains season”.…/T…/996-5129074-g5ltshz/index.html