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Kenya: Inflation forces President Kenyatta to announce 12% minimum wage increase

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President Uhuru Kenyatta of Kenya, on Sunday, May 1 announced a 12% increase in the minimum wage to offset soaring living costs.

The 12% increase raises the minimum monthly wage from 13,500 Kenyan shillings (about 110.5 euros / 116 dollars) to 15,120 shillings (124 euros / 130 dollars).

The annual inflation rate in Kenya accelerated to a seven-month high of 6.47% in April of 2022, from 5.56% in the previous month. Main upward pressure came from food & non-alcoholic beverages (12.15%), namely wheat and basic goods; transportation (6.88%), due to another increase in fuel prices; and housing & utilities (5.47%). On a monthly basis, consumer prices inched up 1.69%, following a 0.85% rise in the previous month.

President Kenyatta while addressing the media after the announcement said “we believe it is imperative to review the minimum wages to protect our workers from further deterioration,”

The high cost of living is due to factors “beyond my control, such as the coronavirus pandemic and the Russian-Ukrainian conflict”, Mr. Kenyatta said.

The 12% increase is however far from the 24% increase demanded by the main trade union organisation COTU (Central Organisation of Trade Unions-Kenya).

Some political observers have labelled the move as “political” in the wake of the general election which is expected to pit two favourites, Mr. Odinga and Mr. Ruto in the East African country.

President Kenyatta cannot stand for re-election after two terms but is backing his former rival Raila Odinga to succeed him.

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Education secretary warns of dangers of imposition of taxes on online political content

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Mark Mwanza, the Education Secretary for the Catholic Diocese of Chipata, argues that the proposed imposition of taxes on online political content poses a significant risk to freedom of expression in Zambia.

He also contended that such taxation would disproportionately favour financially capable individuals, effectively silencing those who cannot afford the tax.

Speaking to Zambia Monitor in Eastern Province, Chipata, Mwanza emphasized the need for the government to provide a clear rationale for implementing such taxation.

“How will they be billing participants?” Mwanza questioned. “But again, I see it as a potential restriction on freedom of expression. If one can only express oneself when having financial means, it implies being silenced when lacking funds.”

Moreover, Mwanza highlighted the economic challenges hindering media freedom in Zambia.

He pointed out the substantial financial requirements for operating media outlets, particularly radio stations, which often struggle to sustain themselves.

“These economic challenges expose journalists to bribery and other forms of corruption,” Mwanza noted.

“Journalists working in privately owned media often face low salaries, which may compromise their independence and integrity.”

Despite these challenges, Mwanza acknowledged governmental efforts to improve media freedom in certain areas.

He noted a decrease in the frequency of closure of media outlets or intimidation of individuals for their views.

“I would say that people and media houses are now freer to express their views,” Mwanza said.

This story is sponsored content from Zambia Monitor’s Project Aliyense.

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Nigeria’s central bank blames food inflation on govt’s purchase of palliatives

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The escalating food inflation in Nigeria has been blamed on the purchase of foodstuffs which are then distributed to poor and vulnerable Nigerians as palliatives by the Federal Government.

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, who stated this in an article in the March Monetary Policy Committee (MPC) meeting and published on CBN’s website, said bulk purchase of food items by the government was directly responsible for the rising inflation.

Nigeria’s food inflation rate had risen to a massive 40.01% in March up from 37.92% in February and by March 25, the MPC increased the interest rate from 22.75 percent to 24.75 percent in a bid to tame inflation.

However, while speaking on the inflation, Cardoso said the inflationary pressure had failed to reduce despite increase in the interest rate had stability in the foreign exchange market in February.

“Despite notable stability in the foreign exchange market resulting from decisions taken at that 293rd MPC meeting, inflationary pressure remains unabated,” Cardoso stated.

“While there is the argument that the significant tightening since the last MPC meeting is yet to fully permeate the system and yield its expected impact, the risk of galloping inflation persists.

“If such a hyperinflationary scenario is to become reality, available options to control inflation could be severely constrained.

“From the facts presented to the MPC, there is a clear indication that the monetary factors contributing to inflation are diminishing in their significance.

“This could be considered as evidence of the impact of decisions reached at the 293rd MPC meeting. Staff reports show that the principal drivers of acceleration in inflation are hikes in food and energy prices which are associated with structural factors.

“Further, new dimensions of inflationary pressure are emerging. First, ‘seller inflation’ arising from the oligopolistic structure of commodity markets such as noticed in the prices of local commodities is gaining significance.

“In addition, huge purchases by the government for distribution as palliatives to vulnerable citizenry is adding another dimension to the food price inflation, with seasonal factors of food price increases during religious fasting and festive periods, adding price cyclicality.”

The CBN Governor added that the new sources of inflation were better addressed by the fiscal authorities to complement the efforts of monetary policy.

A member of the MPC, Bala Bello, who also contributed to the debate on the rising inflationary trend, said both “food and core inflation rose in February, underpinning acceleration in headline inflation to 31.70 percent in February from 29.90 percent in the previous month”.

“This continued rise in inflation was mainly due to persisting high production costs, lingering security challenges and exchange rate pressures.

“Inflation is currently unacceptably high and requires decisive and coordinated efforts to curb it, given its adverse impact on citizens’ purchasing power, investment decisions and broad output performance.”

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