Kenya is expected to experience a continued decrease in inflation, driven by a consecutive two-month drop in fuel prices, providing relief to consumers grappling with the high cost of living.

The most recent fuel price revision shows that a liter of super petrol in Nairobi now retails at Sh207, down from Sh212, while diesel is priced at Sh196, compared to its previous Sh201, according to figures released by the Energy and Petroleum Regulatory Authority (EPRA).

This decline in fuel costs, attributed to a dip in international crude oil prices, complements the recent reduction in prices for essential commodities such as maize flour and cooking oil.

As food constitutes a substantial portion of the inflation basket, these developments become crucial in influencing the overall cost of living in the country.

Data from the Kenya National Bureau of Statistics (KNBS) on consumer retail prices reveals an easing of inflation from 6.9 percent in October to 6.8 percent in November and 6.6 in December driven by a decline in food prices owing to favourable weather conditions.

The diminishing cost of fuel is poised to have a cascading effect, with manufacturers, power producers, and service providers expected to incorporate these cost reductions, further contributing to the ongoing decline in inflation over the last three months.

The anticipated reduction in fuel costs is expected to extend to the electricity sector, as bills are projected to align with the lower fuel expenses, impacting the fuel cost charge, which holds a predominant share in electricity billing.

The persistent challenge of the high cost of living has been a focal point for President William Ruto’s government, contending with public dissatisfaction and demonstrations, particularly led by opposition leader Raila Odinga.

Mr Odinga, who has threatened to call a boycott over the high cost of living, has told his supporters that he will be issuing directions this January on the same.

Notably, last year, activists took legal action against EPRA, accusing the regulatory body of maintaining fuel prices above Ksh200 per liter, despite the global decline in costs.

The current reduction in fuel prices is anticipated to alleviate some of the economic pressures faced by consumers, providing a crucial reprieve in the ongoing economic landscape.