Power, car prices to rise as shilling hits new low

A trader counts coins at his kiosk in Nyeri. PHOTO | JOSEPH KANYI | NMG

The cost of imported goods like cars, electronics and second-hand clothes as well as that of electricity will increase further ahead of the festive season after the shilling fell to a new all-time low of 112.07 units against the dollar.

The weakening of the shilling has triggered fears of a fresh round of inflationary pressure, which has become a political headache for the government that has recently been forced to offer fuel subsidies to defuse social tension.

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