![[Kenya] Drought pushes inflation to highest levels since 2016](inflation_kenya.jpg)
[Kenya] Drought pushes inflation to highest levels since 2016
February has seen Kenya’s inflation climb to its highest since 2016 as the effects of the ongoing drought continues to pile pressure on the cost of food according to recently released data from the Kenya National Bureau of Statistics.
The data indicate that inflation rose rose to 9.04 in February, surpassing the government’s upper target of 7.5 percent. Inflation has been steadily rising since 2016.
Most food prices rose during the month, with the food and non alcoholic beverages index shooting up to 3.28 percent on the month and 16.50 percent since January.
The price of a two kilogram packet of maize rose eight percent to Sh126.80 while a kilogram of kale rose 11 percent to Sh54.10.
“This was partly contributed by prevailing drought conditions. The year on year food inflation stood at 16.60 percent in February 2017,” KNBS Director General Zachary Mwangi said in a statement.
The government has a target to keep inflation between 2.5 and 7.5 percent. At the last monetary policy committee (MPC) meeting, the Central Bank OF Kenya (CBK) retained the base lending rate at 10 percent arguing inflation was within the government rate and so no immediate pressure on the economy.
The banking regulator however raised concern that the ongoing drought could place pressure on the economy, adding that it would continue monitoring the situation.
“The Committee concluded that inflation was expected to remain within the Government target range in the short term. However, the Committee noted increased uncertainties with regard to the prevailing drought conditions and risks in the global markets,” CBK governor Dr Patrick Njoroge said during the latest MPC meeting.
The government has already declared drought a national disaster with 3 million Kenyans at risk of starvation.
Energy prices remained relatively low despite a steady rise in fuel prices.
