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Kenya urgently needs economic stimulus packages

Kenya urgently needs economic stimulus packages
Economic trend. PHOTO/Print

Let us stop sugarcoating some important social, political and economic issues at the expense of growth. The truth is that Kenya currently finds itself on very unfamiliar ground, given the ambitions and potential of its people and economy.

Hoping that political rhetoric will diminish and that the routine of rooftop addresses and empty promises will end, Kenyans must confront the brutal realities of our economic situation and stop the same old patterns that seem to persist.

Much as regional “meet the people” tours are touted as public engagements, unfortunately, they have just emerged as platforms for launching old projects and making more promises when the country needs leaders to roll up their sleeves with the intent for change.

Indeed, what Kenya needs urgently is a clear roadmap for both short-term and long-term economic stimulus packages that can turn the economy around.

That is why the focus must shift back to nation-building and economic stability. The rooftop theatrics must end—they are merely thinly veiled campaign trails, dismissing the valid concerns raised by many Kenyans including the Gen-Z protests. Chest-thumping and questioning the intentions of the youth will never grow our economy.

For years, Kenya has endured an abusive relationship between those in power and the citizens they are meant to serve.  The unvarnished truth is the only path to real freedom for Kenyans and the economy. We have seen our nation likened to a company where only shareholders benefit. With more “eaters” at the table, we can only hope that the nation doesn’t collapse under the strain.

As the Treasury considers new tax revenues, it must also mull a clear and intentional stimulus package that will spur job creation and reignite growth across all key sectors.

Indeed, embarking on the new phase of tax realignment following the contentious Finance Bill 2024, focusing solely on the Sh346 billion revenue shortfall is short-sighted, if it will not be paired with efforts such as reducing recurrent expenditures and boosting investment in development.

Dishing out salaries through public services alone will not spur economic growth. We need more talk about igniting growth of industry—through innovation, production, and enterprise— to generate the stimuli needed to revive our economy. To achieve this, we must realign our priorities through a balanced approach that addresses both immediate needs and long-term goals. By focusing on youth employment, industry revitalization, and prudent fiscal management, Kenya can overcome its current challenges and build a more resilient and prosperous economy.

Treasury Cabinet Secretary John Mbadi was right when he aptly compared the Kenya Revenue Authority to a cow being milked without being fed. Now is the time to feed that cow by growing industry and creating jobs to increase tax revenues. He must now show us the way.

Creating a conducive environment for youth to engage in meaningful work will tap into this demographic dividend and quickly stimulate economic growth. Industry revitalization is another critical area needing urgent attention.

These are the policies we need to hear about, coupled with incentives that encourage investment in areas like textiles, agro-processing, and renewable energy—sectors that can generate employment and contribute to sustainable development.

Development in transport and energy is essential to support industrial growth and attract both local and foreign investment. If the government can deliver such a package, there will be no need to coerce communities into supporting empty promises. Now is the time for action, honesty, and a renewed commitment to the well-being of every citizen.

— The writer is People Daily’s
Business Editor

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