At least eight food items have seen their prices go down over the last year thanks to several different factors, according to the Treasury Ministry.
Francis Anyona, the Director of Budget, National Treasury, on Monday, September 9, during the FY 2025/26 Budget Preparation Process at KICC, broke down several key food items whose prices had been impacted over the past year.
Vegetables including carrots, sukumawiki, onions, spinach, tomatoes and cabbages had seen a drop in price, with wheat flour also experiencing a reduction.
However, food items like potatoes, oranges, mangoes and beef, all experienced a slight price increase.
Non-food items which experienced a hike in prices according to Anyona included water, housing, electricity and gas.
"The good thing is, given the oil prices which have stabilised, petrol and diesel prices have remained unchanged," he noted.
The director also noted that the economy had grown by at least 5% and this was largely because of the agricultural sector, which remains Kenya's most crucial pillar of economic growth.
Meanwhile, Kenyans were also handed some reprieve as the government announced plans to reduce Value-added Tax (VAT) and other taxes.
Along with the reduction of corporate taxes, the government also intends to reduce VAT from 16% to 14%.
Treasury Cabinet Secretary John Mbadi said on Monday that the government's focus would shift from additional expenditures, and instead focus on the optimization of available resources.
"It is important to note that following the withdrawal of the 2024 Finance Bill, the Government has had to forego additional revenue measures. We therefore implemented measures aimed at aligning our priorities with the available resources,” he said.
Treasury PS Chris Kiptoo echoed Mbadi's sentiments, saying there was a need to adopt a Zero-based budgeting (ZBB) approach, which entails justifying all expenses for each new period.
