Pain on Christmas: No merry as cost of living crashes party

High cost of living hiked fares and fears of a possible increase in school fees in January dampened the mood as Kenyans prepared to usher in the festive season. 

In Mombasa, some travellers said they booked their trips upcountry in November to benefit from discounted fares on most buses and trains. Yesterday, however, most buses had doubled their fares. 

Bus fares from Mombasa to Nyanza or Western Kenya shot up from Sh2,500 to Sh5,000, forcing some travellers to decide against making the journey due to the high costs. 

“Why should I spend Sh27,000 to take my family members home to Homa Bay when in January the kids need school fees? I decided to spend the holiday in Mombasa,” said Japheth Oketch. 

Oketch, who works at a garments EPZ in Changamwe, said he was suspended from work following uncertainty over the renewal of the United States AGOA agreement. 

Meanwhile, security agents said holidaymakers, tourists and residents of the coastal region would be required to leave public beaches by 6pm to avoid cases of drowning. 

Tourist Police Unit (TPU) officer in charge of the Coast region Patricia Boure said police patrols have been intensified, especially in areas where tourism numbers are high. 

“We have deployed enough officers in the most strategic areas that tourists normally visit, and we are going to adjust accordingly as needs arise so that we respond effectively. We are also collaborating with all security agencies,” she said. 

Low activity 

In Nakuru, the Christmas travel rush has taken a different turn this year, with travellers citing the high cost of living and steep fare hikes for reduced movement. 

A spot check by The Standard at most bus termini in Nakuru revealed unusually low activity, as travellers complained of increased transport costs that have forced many to postpone or cancel their journeys. 

John Kiarie expressed disappointment after discovering that fares had risen by up to Sh700, an increase he said he had not anticipated. 

“In previous years, I travelled on December 20 from Nakuru to Eldoret to avoid traffic and fare hikes. This year, work inconveniences delayed me, and now the fares are too high,” he said. 

Kiarie added that he was torn between travelling with his family and staying put due to budget constraints. 

“If I travel, getting money for the return journey will be difficult,” he said. 

Ben Williams had planned to travel to Kisumu on Tuesday but aborted the trip after learning of the fare increase. 

For Mary Muiruri, the festive cheer has faded as the tough economic situation continues to affect her business. 

“In the past, shopping traffic during this season was high, but things have changed. People are now focusing on essentials,” she said, noting that she was shopping early for the January school reopening. 

At Wakulima Market, traders also lamented a low turnout compared to previous years, with only a few shoppers seen moving around the market. 

Several matatu SACCOs have increased fares by between Sh200 and Sh700, a move that has seen some vehicles remain idle as passengers abandon their travel plans. 

However, vendors selling school uniforms and supplies reported a steady flow of customers as parents prepare early for school reopening to beat the January rush. 

In Kisumu, hotels recorded mixed fortunes, with moderate accommodation bookings driven largely by transit travellers, returning diaspora families and short-stay guests. 

Ronald Reagan, who oversees operations and sales at Mirage Palace Hotel within Kisumu’s central business district, said the hotel was cautiously optimistic about business this festive season despite the prevailing economic constraints. 

“With Mirage Palace Hotel being located within the CBD, we are generally optimistic that we will get some good business during this festive season,” Reagan said. “This includes guests coming in for dining, accommodation and group meetings.” 

He said the hotel is currently operating at an average occupancy rate of 50 per cent, which he admitted is lower than expected for a festive season. 

At Kisumu Hotel, a facility under Maseno University, food and delivery manager Gideon Ngira said accommodation bookings improved as the festive season approached. 

Comparing this year to the same period last year, Ngira said there has been a slight improvement. 

“Last year, we were doing around 30 to 35 per cent occupancy. This year, we are at around 40 per cent, and projections show we may go up to 45 per cent by tomorrow because we have many reservation inquiries,” he said. 

Meanwhile, Sarova Imperial Kisumu is experiencing similar trends, according to front office manager Francis Maina. 

He noted that Sarova does not always host guests who stay throughout the entire Christmas festive season, except during peak events such as New Year’s Eve. 

In Nairobi, shops in the city centre and bus parks painted a clear picture of the cash crunch. 

Inside Naivas Supermarket on Moi Avenue, we met Lydia Njagi, who had gone shopping. She said prices of essential goods such as maize flour, cooking oil and bar soap had gone up. 

“The prices of cooking oil have really gone up. The money we are using to buy a five-litre jerrican today could buy two jerricans before,” said Njagi. 

Njagi said she prioritises essentials over luxury goods. 

“I prefer buying essentials like food that will last me three to five days before January,” she said. 

Fredrick Otieno complained about the high cost of living and said he would not be travelling due to high fares. “This year, I started saving in home banks in January, but the prices of goods are still high,” he said. 

The increase in fares by long-distance matatu operators has been felt more acutely by those travelling to Western and Nyanza regions. 

For instance, normal fares to places such as Busia and Siaya range between Sh1,500 and Sh1,800. However, a spot check around long-distance matatu stages showed prices had been hiked to between Sh2,000 and Sh2,500. 

Despite the increase in fares, some travellers, such as John Wekesa, could not get vehicles to board, leaving them stranded. 

In Central Kenya, traders in food markets in Nyeri town noted low customer turnout this festive season. John Nderitu, a trader at an open-air market in Nyeri town, said business was very low. 

“At a time like this in the past, you could tell it was Christmas, but this year business is down. I have been in business for more than 10 years, but this year is my lowest,” he said. 

According to Nderitu, the high cost of living is affecting purchasing power. He said a kilo of green peas is selling at Sh100, tomatoes at Sh50, and onions between Sh80 and Sh100. 

Duncan Ndegwa, who operates in the same market, said there were few customers. “At a time like this last year, we were selling more. Even if you look around, there are no customers, but we hope it will be better,” he added. 

Low business 

Jane Wambui, another trader in the market, said customers’ purchasing power was low. “Last year it was better. People are complaining that there is no flow of money. This is the worst year,” Wambui said. 

Irene Wanjohi, an onion wholesaler in the same market, said there was little flow of customers this Christmas season. 

“Last year, 2024, it was better than this year. Our wholesale customers, who buy in large quantities, have reduced their orders,” she said. 

A spot check in the market revealed that business was very low. 

A few metres away at Soko Mjinga market, similar sentiments were echoed by Christine Mwihaki, reflecting low business levels and few customers walking in. 

According to her, this year is the worst since she joined the market five years ago. She said one kilogramme of onions is sold at Sh100, while tomatoes are going for Sh80. 

Reporting by Joackim Bwana, Yvonne Chepkwony, Rodgers Otiso, James Wanzala, Purity Mwangi, Sharon Owino and Brian Kisanji