Introduction
Inflation. It’s one of those things we hear about in the news, but how often do we stop to really think about what it means for us? For most of us, inflation just feels like the rising cost of living—groceries get more expensive, rent goes up, and our savings don’t stretch as far as they used to. It’s like an invisible force slowly chipping away at our money, but we don’t always see the connection.
I’m not an expert on inflation or economics, but like many of you, I’m on a journey to understand how these big ideas affect our everyday lives. Why does it seem like our money doesn’t go as far as it used to? How did we get here, and more importantly, what can we learn to protect ourselves from inflation's slow squeeze?
In this blog, we’ll explore these questions together. We'll look at how inflation works, why governments keep printing money, and why double-income households are now the norm when just a few decades ago, a single income could comfortably support a family. Along the way, we’ll touch on relatable examples from both Kenya and around the world, drawing from history, economics and the everyday experiences we all share.
Inflation: What Is It and Why Does It Matter?
So, what exactly is inflation? At its simplest, inflation is the gradual increase in prices over time. It’s why something that cost KES 50 five years ago might cost KES 200 today. But it’s not just about prices going up—it’s about the value of your money going down. The same shilling buys you less than it used to, and that’s where inflation hurts the most.
Think about it this way: Imagine you’ve been saving up for a big purchase, like a car or a house. You’ve been putting money aside, but by the time you’re ready to buy, prices have gone up. The car that once seemed within reach now feels just a little further away. That’s inflation in action, eating away at your purchasing power bit by bit.
But inflation isn’t just about the numbers. It affects how we live, when we decide to get married, where we can afford to live and whether we can even think about owning a home. Let's break it down.
The Real-Life Impact: Delayed Milestones and Expensive Living
There was a time when people got married in their early or mid-20s. But today, it’s more common to see people waiting until their early or mid-30s to tie the knot. Why? Inflation is part of the answer. The cost of living has skyrocketed, making it harder for young people to start families and plan for the future.
Take Nairobi, for example. Buying a home in the city is becoming increasingly out of reach for many. Apartments and houses in Nairobi are priced so high that more people are being pushed to the outskirts of the city, where housing is a bit more affordable. But this comes at a cost—long, exhausting commutes into the city where most jobs are located. Time that could have been spent with family, pursuing hobbies, or even resting is now spent on the road.
Even in our daily lives, we see the effects of inflation in surprising ways. Recently, Uber drivers in Nairobi took to the streets to protest their wages. The cost of living has risen so sharply that the fares they earn from the app no longer cover their expenses. As a frequent user of these services, I’ve even noticed drivers forming their own networks, sharing trip requests via broadcast channels to help each other find routes that are more profitable or convenient. This is a direct response to inflation—they’re simply trying to make ends meet in a system that no longer works for them.
It’s not just the drivers feeling the squeeze. Remember the demonstrations about rejecting the Finance Bill here in Kenya? The heavy taxation and borrowing by the government sparked protests that have lasted for nearly two months. People took to the streets not just because of taxes, but because the cost of living has become unbearable. Heavy borrowing and mismanagement of funds mean the government keeps printing more money, and guess who pays the price? Us. The silent thief strikes again, and this time, people couldn’t take it anymore.
Why is Life So Much Harder Now?
It wasn’t always like this. Just a few decades ago, a single income could comfortably support a family, cover the bills and even allow for some savings. But today, it often takes two incomes just to keep up with the basics. Families are working more, but it feels like they’re getting less in return.
Why do you think that is?
Could it be because inflation is steadily driving up the cost of everything, while wages remain stagnant? Could it be why more and more Kenyans are turning to second jobs, side hustles, or even gambling in an attempt to break free from the rat race? Many are trying to find a way out, whether it’s through a part-time business or by working more hours just to sustain a basic lifestyle. But is this sustainable?
Think about it. To own a home today could take 30 or 40 years of hard work, if not more. Many people may never reach that milestone at all. Could this be why we hear so much about the “rat race”? Is this the reason why Kenya has such a high rate of gambling and scams? People are desperately trying to find shortcuts to financial stability because the traditional paths are increasingly out of reach.
Inflation: The Silent Thief of Time and Energy
Here’s the truth: inflation isn’t just about rising prices. It’s about stealing our time and energy. Every time the cost of living rises without a corresponding increase in wages, we’re forced to work harder, longer and smarter just to maintain the same standard of living. The price of fuel is a perfect example. I remember a time when a litre of fuel cost KES 90, but today it’s around KES 200 for the same amount. What changed? The money hasn’t, the value of that money has.
These constant increases mean that living a life you’re satisfied with requires more than just budgeting carefully. It requires more hours at work, more creative ways to save and often more sacrifices—whether that’s time with family, personal well-being or pursuing your dreams. The cost of living isn’t just financial, it’s emotional and mental as well. We’re paying for it in ways we don’t always acknowledge.
And the big question is: will it ever stop?
Governments show no signs of stopping money printing or borrowing, despite the obvious consequences. As more money is created and pumped into the economy, it continues to lose its value, and we continue to lose time and energy trying to keep up. This is why inflation is truly a silent thief. It doesn’t just take our money, it takes our time, our opportunities, and, ultimately, our well-being.
Conclusion: Is There a Way Out?
So, what’s the solution? Can we escape this relentless cycle of inflation and the rat race it seems to perpetuate?
While we can’t single-handedly stop inflation, we can take steps to protect ourselves from its effects. This might mean getting more strategic about investments, diversifying our income streams and being mindful of our spending. It also means acknowledging that inflation isn’t just a number in the economy—it’s a reality that affects our daily lives in very tangible ways.
The conversation around inflation is one we all need to have because understanding it is the first step in taking control of our financial future. Let’s keep exploring, learning, and figuring this out together. Inflation may be the silent thief, but knowledge is our best defense.
