The Kenya's capital city, Nairobi. [ photo / Hivisasa. ]
Nairobi's Rich and middle-class has been hit hard by the high inflation level following the increased prices of Electricity and petrol in the month of October while the poor households enjoyed low inflation rates following decrease in food prices.
According to the latest data by Kenya national bureau of statistics (KNBS), the rich class inflation level rose by a paltry 0.78 percent from 2.12 percent in month September to 2.90 percent obtained last month. Inflation of the middle class also rose to 5.99 per cent from 5.55 per cent.The poor household's inflation level, however, dropped from 7.81 percent to 6.9 percent with the fall being linked to falling in prices of some food items following the recent rains recorded in various parts of the country.
Kenya Bureau of Statistics had linked the difference in the inflation level to the different expenditure behaviours in that the rich spend a larger share of their budget on transport with the middle class using their money on utilities and rent whereas the poor’s budget is occupied by food. For instance, the food took a larger pie ( 42.5 percent ) of the poor's monthly income budget which is contrary to 7 percent spent by the rich class and 22 percent spent by the Middle-class on Food.
The data also shows that transport took the bulk ( 27.9 percent) of the rich man's budget while utilities like electricity and rent formed the largest share of the middle class spend at 23.6 percent.
KNBS added that the domestic power tariffs for the middle class and rich homes are approximately four times higher compared to other income groups thus the rich are exposed to more costs when electricity rises.