High food prices erode savings

By BENSON KATHURI

Rising food prices have reduced savings and investments in the last one year in the country.

Assistant Minister for Planning Peter Kenneth says the high prices have eroded consumers’ purchasing power, leading to an economic slowdown.

"The rising food prices have put an upward pressure on inflation, resulting in reduction in purchasing power, savings and investments," Kenneth said when he presided over the African Statistics Day celebrations at KICC yesterday.

"It is evident that the prices have a direct and detrimental effect on economic growth, wealth creation and poverty." Kenneth warned that the country was unlikely to meet the Millennium Development Goals, which seek to reduce the number of people living in poverty and hunger by half, come 2015. He said quality statistics were vital for national planning.

"Quality statistics are used to track progress being made towards meeting our development goals and targets on poverty reduction, job creation, agricultural production, transport and communications," he said.

He said that reliable and accurate information was necessary for proper planning and economic growth. He called for concerted efforts to improve agricultural productivity.

However, the sector lacks adequate and reliable data that can help policymakers to plan and monitor production, he said.

Kenneth revealed that the Kenya National Bureau of Statistics would next year collect data on agriculture during the national census.

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