Economy reported to grow, but where’s the money?

A recent survey conducted among Kenyans regarding the state of the economy reveals a grim outlook. This contrasts with the World Bank’s report indicating that the Kenyan economy is experiencing steady growth.

The projected average growth rate is 5.2 percent for 2024-2026, with the private sector driving this growth as business confidence increases and the public sector reduces its involvement. Despite these positive indicators, why is money not in Kenyans’ pockets?

Although the statistics may indicate economic growth, the actual situation for many Kenyans is quite different. For example, K24 TV’s “Mwamko Mpya” programme, which discusses current issues affecting the average mwananchi, recently aired a comprehensive episode on the state of the economy.

Participants from various regions of the country highlighted the disconnect between the reported GDP growth and the lived experiences of many Kenyans. Despite the country’s economic growth, a significant portion of the population does not feel the benefits of this growth.

High levels of unemployment, income inequality, and lack of access to basic services continue to plague the population, especially in rural areas. The gap between the rich and the poor is widening, with a small elite benefiting from the economic growth while the majority struggle to make ends meet.

Focusing on GDP growth is insufficient to tackle the root causes of poverty in Kenya. Targeted interventions and policies are necessary to ensure that the benefits of economic growth are shared more equitably among all citizens.

Despite all the economic growth, why are Kenyans lacking money in their pockets? What do we need to do to make everyone forget about poverty? Some experts argue that our current economic situation stems from the capitalist system we inhabit.

Capitalism features a small wealthy class that owns production means, while most people live in poverty. This system enables business owners to exploit labourers for financial gain.

Under capitalism, the means of production, including land, resources, tools, and factories, are owned privately by capitalists. Workers, on the other hand, can only sell their labour power in exchange for wages determined by the capitalist.

It is a common misconception that workers are fairly compensated for their labour, when in reality, the capitalist only pays a portion of the value created by the worker, keeping the surplus value for themselves.

This exploitation of labourers leads to the vast wealth disparity between capitalists and workers. The wealth accumulated by the capitalists is essentially stolen from workers’ labour. Unlike other goods, the value of labour-power tends to decrease over time, while the prices for goods and services continue to rise.

Therefore, even if a worker receives a raise, it does not necessarily mean that the value of their labour has increased. This inherent imbalance in the capitalist system perpetuates the cycle of wealth inequality, leaving workers struggling to make ends meet. In contrast, the capitalists continue to amass wealth at their expense and the economy grows.

Thus, within the capitalist system, the worker is faced with a stark choice: either endure poverty or remain in poverty. Capitalism does not present any other alternatives. Economic struggles alone cannot liberate the working class, as they do not address the root causes of these issues. The economic and political subjugation of the working class can only be eradicated through the dismantling of the capitalist mode of production.

To achieve this goal, implementing progressive taxation policies, social welfare programmes, and wealth redistribution initiatives can play a crucial role in fostering a more equitable society and narrowing income disparities. These measures are essential in promoting economic fairness and ensuring individuals have equal opportunities to thrive and succeed.

— The writer is an Innovations Evangelist and a PhD Candidate; machariamuhoho@gmail.com