The continuous high Inflation rate increase in Kenya is worrying, and the economic index indicates that the prevailing financial situation might take a very long time to resolve. Political instability is the significant contribution of liquidity, among other factors. Businessmen, especially those in the lowest cadre, are the most affected, and it gets worse because middle-class Kenyans depend on this caliber of people for their daily consumption. Kenya must rise and realize that the country’s economic fortunes cannot grow through imports. It can only grow through investing in production, supporting and encouraging local and foreign investors through tax incentives, zero rate tax on raw materials, and cost of production being looked into while custom duty on import finished products should be increased.
The intervention shall bring forth productivity and stability, which, in the long run, will result in Job opportunities. An approach by UAE 50 years ago will remain a case study; Dubai was at the same level as Kenya. The Dubai government ensured that they capitalized on their local minerals and resources in production before importing. Kenya Kwanza government is responsible for developing a business-friendly economic model, which will increase business competitiveness and place the country as a suitable business destination in Africa.
Emphasis on the devolved unit will facilitate the realization of economic prospects if clustered in different economic zones. To ensure the counties fast-track the target revenue collection, there is a need to review the revenue-sharing formula and have it based on the percentage target.
Government wastage has to be controlled; at times, it’s turned into cash cows; I recommend funding for an already stalled project before investing in new projects; hence, taxpayers’ money will not be lost, and value for money may eventually be realised.
Hezekiah Kariuki is a CEO at Comfort Homes