Abdi Mohammed an agent paying the new HSNP cash value of Kshs. 5,100 in Wagalla, WajirOn 5th July 2015, HSNP increased the value of cash transfer from Kshs.4,900 to Kshs. 5,100 a 5% increment. This is as per the programme decision to increase the cash transfer value every year by 5% inflation rate. The beneficiaries are pleased with the increment.
"The two hundred Kenya shillings increase may look little but it translates to spending a little more on food and other household essentials that have increasingly become expensive over the past few months," shared Abdi Noor a father of 8 from Wagalla in Wajir West.
According to the Kenya National Bureau of Statistics (KNBS), Kenyan annual inflation rate rose to 7.03 percent in June of 2015 from 6.87 percent reported in the previous month, mainly due to drought, rising oil and food prices. This means that inflation is outpacing the economic growth.
In addition, the inflationary pressures have weighed on Kenya's currency, leading it to drop by 4 percent against the U.S. dollar over the past month.