Coping Mechanisms Kenyans are Employing in the Harsh Economic Times

Published:January 2024 5:53 PM

By Moses Muli

Last year, the government introduced several tax measures in the Finance Act, 2023 that added pressure on taxpayers, pushing up the cost of living.

It, for instance, doubled Value Added Tax to 16 percent on fuel, effectively pushing up operational costs, and forcing producers to pass the pressure to consumers.

Others are the introduction of a housing levy and raised deductions on national health coverage and social protection.

The consumer price index, a measure of the price of goods and services purchased or otherwise acquired by households reached a record high of 137.55 points in December 2023, according to the Kenya National Bureau of Statistics (KNBS).

The country’s CPI has averaged 45.34 points since 1984.