Weakening shilling will make it harder to put ugali on the table

A rise in global crude oil prices has a ripple effect on fuel prices locally which, if it continues unabated, will also drive up the price of kerosene thus affecting household's purchasing power. "Every time a price rises by one shilling it reduces your purchasing power by that one shilling," says Odhiambo.PHOTO: COURTESY

Every time the shilling loses ground against the US dollar, the harder it gets for mwananchi to put food on the table. For the past one month, the shilling has ceded ground considerably against the greenback, increasing possibility of a more miserable life for millions of Kenyans.

Dr Scolastica Odhiambo, an economics lecturer at Maseno University, reckons that should the shilling continue its nose-dive, the cost of living is going to sky-rocket adding more pain to consumers. A weak shilling has "a paramount" effect on the price of imported goods, says Dr Odhiambo, particularly the price of oil which comprises a bigger fraction of the country's import bill.