Kenya’s inflation has remained within the Central Bank of Kenya’s target range of 2.5 per cent to 7.5 per cent for the better part of this year.
On paper, these figures suggest a stable economic environment with relatively controlled price growth.
However, for millions of Kenyans, this narrative does not align with their everyday experiences as many continue to struggle to make ends meet.
Rent, school fees, electricity, transport and basic necessities continue to put immense pressure on household budgets with many forced to tighten their belts.
Businesses are grappling with high
operating costs. The economic environment feels different as to what the
government suggests.
Households and businesses are increasingly being auctioned. Loan defaults have surged in 2025, reaching an all-time high of Sh724.2 billion in April and a sector Non-Performing Loan ratio of 17.6 per cent.
This significant increase is driven by economic strain and declining purchasing power, particularly in the personal and household sector.
Banks and Saccos have been forced to intensify recovery efforts. Digital lenders also face high default rates, with significant write-offs on their loan books.
Interest rates remain high despite back-to-back cuts on the CBK benchmark rate, squeezing mortgages, loan and investment. For many, the promise of post-pandemic recovery feels more like an illusion than a reality. The pain is real.
Government must not downplay these hardships. A tough economy calls for tough, smart decisions and not just political survival tactics. The current economic climate demands urgent attention, resilience and clear-headed leadership.
Targeted support for the most vulnerable is highly needed. The government must also think of incentives to support survival and growth of businesses.
This means it must be intentional on stimulating the economy, reducing poverty and addressing unemployment, which will finally put money in people's pockets.
Kenyans are resilient and have weathered many storms before but the country needs responsible leadership that empowers the people.
