Inflation: what you're losing every day without knowing it (and how to limit the damage)
Here are 3 concrete ways to limit the damage:
📊 1. The price trap: you're losing customers because you're adjusting wrong
You raise prices to keep up with inflation. Logical. But your customers compare. In Eastleigh, a trader raised her bras from 500 to 550 KES. Result: customers who bought at 500 refuse to pay 550 and walk away . Transport inflation (15.7% year-on-year) and food inflation (9%) are squeezing their pockets .
The remedy: Test your increases. Instead of 10% across the board, raise 5% on your most popular items and offer smaller formats or packs. A customer would rather buy a little cheaper than leave empty-handed.
💸 2. Sleeping money: your cash loses 6.6% per year without moving
Your bank account pays 2–3%. Inflation is at 6.6%. Result: your cash loses 4% in value every year without you seeing it . Kenyan households are turning to stablecoins (USDT, USDC) and Treasury bills to protect their savings .
The remedy: Don't let your cash sleep. Place excess funds in a Money Market Fund at 10–11%, which beats inflation . Turn your stock into cash quickly by liquidating unsold items.
🔄 3. Hidden costs: you're paying more without seeing it
Transport consumes Sh550 billion in fuel per year, passed on to your suppliers . Digital payment fees are now subject to 16% VAT . Raw material prices have nearly tripled for some sectors . Result: your margins melt without you being able to pass them on to prices.
The remedy: Diversify your suppliers . Group your purchases to negotiate discounts. Use solar alternatives to reduce electricity costs. And digitise your processes to gain efficiency.
Tip: Take advantage of VAT exemptions on fuel in effect until 2027 to ease your costs . And track your raw material prices weekly, not monthly.
Do it now: Calculate inflation specific to your sector. Take your 3 main suppliers and renegotiate prices. Ask for quantity discounts. One hour today could save you KES 10,000 per month.
Sources: Kenya National Bureau of Statistics – CPI Reports 2026 ; Central Bank of Kenya – MPC Statements 2026 ; The Star – Small Traders Survey 2026 ; Kenya News Agency – Kiambu SMEs Report 2026 ; The Kenya Times – Savings & Inflation Guide 2026 .
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