It is a bad year: Rising costs dim X-mas cheer for many Kenyans

Monica Wachira a second-hand clothes trader at Fig Tree Market, Ngara, Nairobi on December 15, 2025. [Kanyiri Wahito, Standard]

Bogged down by what they call unusually tough economic times, a number of Kenyans, especially in small businesses, say Christmas will be a quiet, insignificant affair for them.

“It is a bad year,” says Cyrus Gichumbu, a barber. “There is no money in circulation.”

Unless a miracle happens, Gichumbu, who plies his trade in Nairobi, will not be traveling to the countryside. This could be a first since Covid-19 had him stuck in the city.

Many others could remain in town toiling through the festivities, doing business as usual.

There are statistics that support his view of people’s spending being grossly hurt. The country’s Consumer Price Index (CPI) —with weights rebased in 2019—has been gradually rising and crossed 147 in November, essentially meaning that goods and services purchased in the month cost 47 per cent higher than they did six years ago.

The Central Bank of Kenya (CBK) rate is at nine per cent. Lowered from October’s 9.25 per cent, the CBK rate was at 11.25 per cent same time last year. It is now at its lowest since January 2023, as the CBK seeks to facilitate commercial banks to offer cheaper loans.

Sharon Odhoch, a biotechnologist from Embu, says that the razzmatazz around the festivities could be contained this time around.

“Given the current economic conditions, it is possible that celebrations might be more low-key than they used to be. There is no money for showiness.”

For many young people, including fresh graduates and early career professionals, the Christmas excitement is still there but their wallets have a tough time catching up.

Their faces no longer light up with child-like excitements when carols play, but they still are happy to spend time with family and call it a merry Christmas.  

Faith Njambi, a young finance consultant, agrees, saying the only impediment to merriment is the money.

“Financially, I am not ready at all. Emotionally, I am very ready. I have a whole Christmas lunch plan with my extended family, but I have no funds for that. It is weird, last year I had the same income but I was not this broke.”

In Nyeri, Shelmith Muthuki, a pharmacy technician, is ready and happy. For a few days either side of December 25, she will travel to her ancestral home, in Kieni West.

For her, this year has opened more opportunities than the last and it would be good to cap it off with a celebration.

“I am 99 per cent financially ready and 100 per cent emotionally ready. This year, I achieved 70 per cent of my goals whereas I only achieved 38 per cent last year. That makes the difference.”

She is quick to add, however, that these personal goals have not been significantly influenced by the general economic conditions.  “Do not mention the government,” she says.

Bernice Wanjiku, who graduated recently, says she is yet to directly feel the full wrath of economic policies that many Kenyans have been protesting the past two years, including in the deadly anti-government demonstrations around the Finance Bill that left hundreds of people dead. She admits that she knows she will soon experience it.

She, however, admits the prevailing economic hardships have put a damper on celebrations and wonders if fears that tougher conditions are coming in the future could make this Christmas just another colourless festivity.

“The anticipation for the measures it (the government) has put to be effected from next year will, in my view, destabilize many people enjoying this Christmas.”

Seemingly unwilling to say much about why he thinks so, Christian Odinga, a veterinary doctor, says, “It is bad.”

In 2025, as in 2024, thousands of young people poured into the streets of cities and major towns to protest against proposed tax amendments amid stagnant wages, rising unemployment and rampant corruption in public offices.

The government cracked hard on protesters and in the first week of July, the Kenya National Commission on Human Rights (KNCHR) reported that at least 31 people had died and more than 500 arrested across Kenya. The numbers soared in the following days.

Largely seen as the unifying figure between government and protesters, former Prime Minister Raila Odinga, whose faction joined the government to return calm after last year’s protests, passed on in October 2025.

There is a general feeling his departure leaves a void that other politicians could struggle to fill, and that the government could increasingly violate its citizens in the absence of a strong public-interest defender. This might fuel more protests.

Ruth Jebet, a graphic designer, is worried about increasingly punitive deductions that ensure workers’ disposable incomes keep shrinking by the day.

“Every day I hear taxes this, taxes that. I do not think life is getting easier.” Christmas, she fears, could carry more worries than happiness for parents who have to pay school fees, and handle many other responsibilities, early next year.

For Odhoch, it is a better year than many before it, the many complaints notwithstanding. “But there are no indications the government made it explicitly easier for citizens to celebrate (Christmas).” Her baby’s birthday is on Christmas day, perhaps why she maintains the positive outlook.