Low inflation, empty pockets paradox

A trader arranges groceries at the Nyeri market. Inflation fell to 2.7 percent in October 2024.

Photo credit: File | Nation Media Group

“If inflation is as low as the Kenya National Bureau of Statistics (KNBS) is saying, why are we not feeling it in our pockets?” This quite insightful question was posed to me by a participant during presentation of the results of the third KNCCI’s Quarterly Business Barometer two weeks ago in Nairobi.

The survey of 1,255 mainly micro and small businesses across the country found that about 65 percent of MSMEs were optimistic about their own revenue growth prospects for last quarter of this year.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.