Nairobi has for the first time in two years dropped from the list of world’s top 100 most expensive cities for expatriates.
This is according to a recent report by Mercer Cost of Living, which ranks Nairobi on position 145 in the world, a rise 47 spots.
The ranking, which surveyed 209 cities, reviewed 200 items in each city, including housing, transportation, food, clothing, household goods and entertainment.
“The latest data show few significant price variances resulting from the pandemic as various measures were adopted by governments worldwide, such as lowering or refraining from collecting VAT for a period of time,” said the report.
Seemingly, the tax incentives announced by the government in 2020 due to the Covid-19 pandemic, including a reduction of VAT from 16 percent to 14 percent and income taxfrom 30 percent to 25 percent.
During the review period, Kenya’s inflation stood at 5.28 percent.
“The data also helps employers determine and maintain compensation packages for employees on international assignments and when working abroad,” said Mercer.
In Africa, the most expensive city for international employees was N’Djamena (Chad), which was ranked 13th globally. Lagos (Nigeria) was second in Africa and 19th globally and Libreville in Gabon was the third in Africa and 20th globally. The capital city of Zambia, Lusaka was the cheapest in Africa, even as it ranked 208th globally.