A Lion scans through the Southern Bypass in Nairobi National Park
A steep rise in the cost of living in past 12 months has seen Nairobi dethrone Lagos as Africa’s most expensive city.
London-based Economist Intelligence Unit (EIU) says in a new listing of the world’s most expensive places to live in that rapid increase in consumer good prices linked to new taxation measures propelled the Kenyan capital to the top spot on the continent, ahead of Côte d’Ivoire’s Abidjan.
Though it dropped one position from last year’s global ranking to position 73, Nairobi’s emergence as Africa’s most expensive city should catch the attention of Kenya’s policy makers, especially over its possible impact on the quest to become East Africa’s commercial hub.
The ranking, which is based on the cost of living, is important because it determines a city’s ability to attract and retain foreign investment, expatriates and tourists.
EIU says a slight steadying of the exchange rate helped Nairobi to improve its global ranking from last year’s position 72 to 73 in 2014.
Jon Copestake, an EIU analyst, said that despite the relatively stable exchange rate Nairobi still performed worse than other African cities.
an aerial view of Nairobi
NMG
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