The Kenya Bureau of statistics office on Friday released a report showing that Kenya’s inflation highly rose in September within a period of one year.
The government introduced a 16 percent tax on petroleum products at the start of the month which was later cut to 8 percent last week after the passing and signing of the 2018 finance Act.
Kenya is struggling to boost expenditure while cutting its budget deficit.
The Kenya National Bureau of Statistics said the inflation rate rose to 5.70 percent year-on-year from 4.04 percent a month earlier, while on a monthly basis inflation was 1.02 percent from 0.31 percent in August.
The Transport Index rose 7.99 percent from a month earlier and was up 17.29 percent when compared with September 2017 due to increased petrol and diesel prices.
Patrick Njoroge, the Central Bank Governor, said on Wednesday he expected inflation to remain within the government’s preferred band of 2.5-7.5 percent despite the pressure from the new tax.
Khan however said the upward pressure on inflation could rise.