(Nairobi) – As President William Ruto prepares to deliver his State of the Nation address, many Kenyans are expressing frustration with the high cost of living, saying they are struggling to afford basic needs despite recent economic data showing declining inflation.
Although inflation dropped to a 17-year low of 2.7% in October, most citizens report seeing no tangible benefits. Families are finding it difficult to afford even a single meal, underscoring the disconnect between statistical progress and lived realities.
Edward Waiganjo, a boda boda operator in Nairobi, questioned whether the presidency was being presented with an accurate picture of the situation. “Let them tell Ruto the truth. Life is getting worse day by day. Many of us can’t afford a simple meal,” he said.
Similarly, Mercy Mutua, who runs a kiosk in Westlands, criticized the government’s narrative on food prices. While officials claim that staples such as a 2kg packet of maize flour cost KSh 100 ($0.68), sugar KSh 120 ($0.82), and a 6kg cylinder of cooking gas KSh 1,000 ($6.78), Mutua says these figures do not match the reality on the ground. “Let us not joke with our hunger and anger,” she said, calling for a more realistic approach in the address.
Rising Costs and Over-Taxation
Kenya’s business community is also hoping for relief from what they describe as crippling taxation. While public protests earlier this year led to the withdrawal of certain tax measures, the administration has since introduced new levies, exacerbating the financial burden on businesses and individuals alike.
The Tax Amendment Bill 2024 proposes several new taxes, including:
| Proposed Tax Measures | Details |
|---|---|
| Significant Economic Presence Tax | Levied on non-residents earning income through digital marketplaces in Kenya |
| Excise Duty on Internet & Phone Services | Increase from 15% to 20% |
| Railway Development Levy | Increase by 1 percentage point to 2.5% |
| Marketing Withholding Tax | 5% withholding tax on local marketing and advertising services |
| Minimum Top-Up Tax | 15% for multinational corporations |
Business lobby groups, including the Kenya Association of Manufacturers, are urging the President to reconsider these measures, arguing that they stifle growth.
The Petroleum Institute of East Africa (PIEA) has called for the removal of redundant levies imposed on the oil sector, which they argue create inefficiencies and make compliance difficult. They cite inconsistent county and national regulations that require multiple licenses with varying fees.
Strikes and Social Services in Crisis
Economic pressure is also hitting employees, who now lose nearly 40% of their income to taxes. Public services remain in a dire state, with healthcare, education, and infrastructure suffering neglect.
Lecturers at public universities have been on strike for three weeks, paralyzing learning. The dispute revolves around the 2022–2025 collective bargaining agreement (CBA), which promised salary increases of 7–10% but delivered only 4.5%, which is yet to be paid.
Healthcare is also in turmoil as the rollout of the Social Health Insurance Fund (SHIF) faces implementation challenges. Workers contributing 2.75% of their income to the new fund complain that services have deteriorated compared to the National Health Insurance Fund (NHIF). Many patients are calling for the NHIF’s reinstatement.