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Put cheer to holiday with friendlier costs

Put cheer to holiday with friendlier costs
Cost of living illustration. PHOTO/Courtesy

Ideally, the holiday season should be a period of good cheer, when workers in towns travel upcountry to be with their relatives and loved ones. However, this year’s, like the last two, has all the hallmarks of being a difficult period for many employees and owners of small businesses given that the cost of living has been rising without respite for over 24 months in a row now.

This week, ahead of the busy travel period, privately owned public service vehicles have already raised fares to various destinations, meaning that those who cannot afford the increase will be automatically locked from travelling. Those who cannot put off travel plans will also have to dig deeper into their pockets if they are to take the traditional break that allows them to reconnect with their traditional roots.

Matters have been made all the more difficult by private schools that have already started sending out fees structures to parents and guardians, with those seen by People Daily showing a marked increase in fees. It is likely that public boarding schools will ignore Ministry of Education guidelines and charge higher fees in the race to meet ever-rising school administration costs.

Whereas schools will not open until January 23, the fact that parents and guardians have already started receiving invoices will mean that they will spend less on their families during the festivities to save up in readiness for opening of schools, when, in addition to paying fees, they will also be required to buy new books, and for many students – especially those joining Grade One, Grade Seven and Form One – new uniforms as well. All these expenses are, without a doubt, expected to strain incomes, adversely affect family cash flows and reduce disposable incomes for workers, who also have to contend with rising prices of the basic consumer goods needed to keep their families fed, sheltered and clothed.

That is why it is important for government to put in place measures that will guarantee growth of the economy to ensure that the country does not slide into a recession, which could make an already difficult economic environment more challenging. This can include tax incentives for manufacturers, lenders and service providers who deliberately set out to reduce what they charge consumers as such a measure would ease the strain on the shilling, which is already under pressure from a strengthening dollar.

The relevant agencies should also encourage more local industrial production, first to spur job creation, and second, to reduce the country’s import bill, which has raised demand for the dollar.

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