Kenya, South Africa to reset cost of living

Key Takeaways

• African governments, notably Kenya and South Africa, are shifting economic strategies from short-term subsidies to measures designed to boost disposable income and expand wealth-creation opportunities to address the rising cost of living.
• Kenya is implementing significant tax reforms, including zero tax on income up to US$233 (Ksh30,000) and lowering the tax rate for the next income band above Ksh30,000 from 30% to 25%.
• The Kenyan government is also dismantling barriers to capital market participation, positioning retail investment as part of its cost-of-living response.
• The launch of Safaricom's Ziidi Trader platform, integrated with M-pesa, allows Kenyans to buy as little as a single share, following regulatory reforms that removed mandatory broker intermediation and lowered investment thresholds.