Sugar, petrol, white flour, maize, and milk are among the commodities whose prices have decreased year on year as President William Ruto continues efforts to reduce the cost of living.
The government, which has faced significant criticism over the high cost of living, has been quietly working in the background to lower commodity prices.
According to inflation data reviewed by Kenyans.co.ke, inflation has dropped year on year to 3.5 per cent, down from 6.3 per cent in February 2024. This essentially means that retail prices have increased at a slower rate of 3.5 per cent.
The five commodities that recorded the largest price reductions include kerosene, which fell by 21.5 per cent from Ksh193.96 in February last year to Ksh152.18 last month.
Over the same period, wheat flour (white) dropped by 17.5 per cent from Ksh200.41 to Ksh165.29, while sugar decreased by 16.8 per cent from Ksh200.01 to Ksh166.45.
Data also shows that the cost of 200 KWH of electricity has declined by 16.6 per cent, from Ksh6,753.47 to Ksh5,634.92. Diesel prices also fell by 14.5 per cent, from Ksh196.21 to Ksh167.84.
These price reductions indicate easing costs for staple goods and essential energy sources, potentially offering relief to consumers.
Other key food commodities also recorded declines, albeit at a slower pace. The price of loose maize grain fell by 8.7 per cent, from Ksh68.67 to Ksh62.68, while loose maize flour dropped by 5.7 per cent, from Ksh74.11 to Ksh69.92.
Fortified maize flour saw a 7.2 per cent reduction, falling from Ksh172.75 to Ksh160.33, while sifted maize flour followed closely with a 7.4 per cent drop, from Ksh154.54 to Ksh143.10.
Meanwhile, white bread experienced a minor decrease, from Ksh66.58 to Ksh66.35, and fresh packaged cow milk dipped slightly from Ksh57.31 to Ksh56.79. These declines in staple food prices suggest an improvement in food affordability, though the reductions remain relatively moderate compared to energy costs.
The fuel sector recorded notable reductions beyond just diesel and kerosene. Petrol prices fell sharply by 14.4 per cent, from Ksh206.97 to Ksh177.25, aligning with the trend of decreasing global oil prices and domestic regulatory interventions.
Electricity costs also declined, with the price of 50 KWH of electricity reducing by 10.7 per cent, from Ksh1,406.00 to Ksh1,255.06. These reductions in energy costs could have ripple effects across multiple sectors, potentially lowering production and transportation costs for businesses and households.
However, not all commodities experienced price reductions. The only item that saw an increase was cooking oil (salad), which rose by 5 per cent, from Ksh333.31 to Ksh350.10. This price hike could be attributed to supply chain challenges, higher production costs, or fluctuations in international edible oil prices.
According to the government, factors contributing to the reduction in commodity prices include exchange rate stability, the lowering of the Central Bank Rate—the rate at which the Central Bank of Kenya lends to banks—and the provision of production subsidies, particularly in fertiliser and seeds.
Another key factor cited is the Hustler Fund, which has lent a total of Ksh60 billion.
“This liberated millions from predatory lenders and precarious financial situations, enabling them to meet their needs, fund their hustles, and build their credit scores,” Treasury Cabinet Secretary John Mbadi said in a statement.
