Rising Cost of Goods Affects the Hotel Industry

[Photo: Majira Digital Media]

Data by the Central Bank of Kenya shows that the rising cost of essential goods is likely to drag the recovery of Kenya’s hotel industry from the effects of the Covid-19.

According to a survey carried out by CBK, only 21 percent of respondents have recovered by attaining operation levels recorded before the pandemic, which is now greatly threatened by the rising inflation.

37 percent say they expect to resume normal operations by the end of 2022.

“55% of the respondents noted that business had improved while another 16% expect business to rise going forward. In addition, 16% of the respondents feel that the cost of goods had risen significantly thereby affecting their business. This include the cost of basic inputs like gas, cooking oils and grains that were further compounded by a rise in fuel prices thereby raising cost of running their business,” stated the survey.

This is as Key commodities in the country continue to rise.

For instance, the price of 2 KG packet of wheat flour has risen 4.47% to retail at 151.43 shillings on average.

The price of a litre of cooking oil increased from an average of 312.09 shillings to 332.37 shillings.

The price of a 13kg gas also rose from 2659.70 shillings in February to 2866.20 shillings.

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