The jump in cost of living in Kenya has caught the eye of the International Monetary Fund (IMF), which is now asking the Central Bank of Kenya (CBK) to consider tightening the base rate further to limit spillover effects such as demand for higher wages by workers.
The CBK raised its base rate by 0.5 percentage points to 7.5 percent in its last Monetary Policy Committee (MPC) meeting at the end of May, citing elevated risks to the inflation outlook following a global rise in food, supply chain and energy prices.
