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Publication | 2024

Implications of Russia’s invasion of Ukraine for the Kenyan economy

Global Food and Nutrition Security
Highlights:
  • The Kenyan economy was significantly affected by the global supply chain disruptions stemming from the Russian invasion of Ukraine.
  • The macroeconomic impacts were largely driven by global fertiliser and fossil fuel price increases.
  • The effects of high commodity prices varied among urban and rural households, with low-income groups being more vulnerable to price increases.
  • The Kenyan government intervention through fossil fuel subsidies contributed to easing the cost-of-living crisis by reducing prices but came at a considerable fiscal cost.
  • Fertiliser subsidies were found to enhance food security by boosting agricultural output, with positive secondary effects on government revenue.