Urban-rich become more poor, survey shows
The Kenya National Bureau of Statistics (KNBS) shows that the increase for the city’s upper-income households stood at 4.87 per cent in November, the highest mark since December 2019 when it was recorded at 5.33 per cent.
According to a survey conducted by the bureau in 2021, inflation has affected Nairobi’s rich families marking the sharpest rise among all income groups in the city on more expensive fuel and electricity.
“This is significantly high growth since the inflation level on upper-income households in Nairobi stood at 2.28 per cent in November 2020 and 2.91 per cent at the start of 2021,”it stated.
The KNBS data however, showed that rise remained highest among the low-income earners at 5.86 per cent those spending less than 46,355, middle class (between Sh. 46,356 and Sh184,394) and upper-income earners as households with expenses in excess of Sh184,395) monthly in November- although the lowest level since June when it was recorded at 6.17 per cent.
KNBS attributes the contrast in the inflation levels among income segments to different consumption patterns. The rich traditionally spend most of their income on utilities and transport while the poor use nearly half of their income on food.
The rising cost of basic products such as fuel, food and electricity, signalling a painful cost pinch on budgets for households and businesses amid the Covid-19 pandemic impact.
The cost of living eased then eased in October for the first time in six months on reduced transport costs.
It slowed further in December to an 11-month low, tamed by easing food costs and the government tapping a fuel-stabilisation fund to subsidise pump prices.
The country’s annual inflation rate fell to 5.7 per cent, from 5.8 per cent in November 2021.
