Inflation eased from 6.3% in February 2024 to 5.7% in March 2024, with lower food and fuel inflation being significant drivers of this decline The Central Bank of Kenya's (CBK) Monetary Policy Committee (MPC) attributed the decrease in fuel inflation to the shilling's appreciation, resulting in lower electricity prices and pump prices.

he appreciation of the Kenya Shilling against the US dollar has been lauded as partly responsible for the drop in inflation in March.

According to disclosures from the CBK's Monetary Policy Committee (MPC) meeting held on March 3, 2024, the drop in March inflation was driven by lower food and fuel inflation.

A report by Bloomberg News also emphasised the role that the appreciation of Kenya shilling against the US dollar has had in easing inflation rates in the country. Bloomberg termed the Kenya shilling as the best-performing currency in the world, highlighting that it had recorded a 19% gain against the US dollar in 2024. 

According to the MPC, the fall in inflation rates was also attributable to the recent agricultural harvests and favourable weather, a sentiment that was echoed in the Bloomberg News report above. " Food inflation declined to 5.8% in March from 6.9% in February, reflecting lower prices of some food items, particularly maize and wheat products, carrots, kales/sukuma wiki, spinach, and cabbages, following improved supply attributed to ongoing harvests and favourable weather conditions," explained the MPC in the press release.