Kenya faces renewed economic pressure after shipping traffic through the Strait of Hormuz dropped sharply, with only seven vessels transiting on Thursday compared to a 10-day average of 15. The situation worsened as Houthi rebels reportedly seized control of Yemen's entire Red Sea coast, giving them greater sway over the Bab al-Mandeb strait. Since Kenya imports most of its refined petroleum and industrial inputs from the Gulf, the disruption threatens to raise costs across fuel, transport, fertiliser, and manufacturing supply chains, echoing earlier war-related delays when lead times nearly doubled and freight costs surged by over 30 percent. These supply-chain pressures are already feeding into Kenyan inflation, which rose to 6.6 percent in August, with transport inflation above 15 percent for a fourth straight month. Petrol prices climbed 15.3 percent year-on-year and diesel 26.8 percent, despite a slight monthly dip in diesel prices, and those costs have yet to ease passenger fares. Manufacturers warn that higher shipping, insurance, and upfront payment demands are squeezing cash flows and will likely be passed on to consumers, keeping the cost of living elevated. (ICE NAIROBI)

Fonte notizia: Business Daily