A recent study has revealed that young urban women are the most affected by the far-reaching effects of neoliberal policies on Kenya’s economy. Neoliberalism is a policy model that favours private enterprise and limits government intervention in the economy.

The study, presented by ActionAid Kenya’s Project Coordinator, Judy Oduor, highlights the consequences of privatisation, deregulation, fiscal austerity, and free-market prioritisation over social welfare.

One of the most visible effects of neoliberalism is the privatisation of public services. Previously accessible and affordable healthcare, education and public utilities are increasingly being handed over to private entities, making them costlier for ordinary citizens.

“If I’m not able to access medicine from a public hospital and I’m forced to buy it from a private clinic, it becomes unaffordable,” Judy said.

For young urban women, this means higher expenses for essential services, limiting their access to maternal healthcare, contraception, and reproductive health services. The collapse of programmes like Linda Mama, which once provided free maternal care, has further deepened the crisis.

“The share of government budgets allocated to health, education and social protection dropped from 26.49 per cent to 23.06 per cent between 2019 and 2022, limiting the access to essential services for women,” she explained.

Profit over welfare

The study found that neoliberal policies have exacerbated job insecurity, especially for women in the informal sector. Kenya’s economy has witnessed increased deregulation, allowing businesses to operate with minimal oversight. As a result, employers often disregard labour protections such as maternity leave and job security.

“Young women are afraid to announce their pregnancies because they know they might be replaced before their due date,” Judy said.

Women working in export processing zones (EPZs) face even harsher conditions: low wages, long hours, and no access to benefits like health insurance.

“These women work in environments where profit is prioritised over their well-being,” she added.

Severe cuts in government spending have placed a heavier burden on women, forcing them to take on more unpaid care work. As the government reduces funding for healthcare and education, the responsibility of caregiving falls disproportionately on women, limiting their ability to engage in paid employment.

“When hospitals lack personnel to care for the sick, women are forced to step in, sacrificing their economic independence,” she said, observing that the lack of affordable childcare also means that many young women are unable to seek stable employment, perpetuating the cycle of poverty.

 “Women constitute 83.4 per cent of informal sector workers, with this sector contracting by 3.6 per cent during economic downturns, leading to more precarious working conditions,” Judy stated

Corporates benefit

Women, particularly those in low-income households, are disproportionately affected by indirect taxes like VAT, which have doubled the cost of essential goods and services.

The study also highlights how neoliberal economic policies have widened the gap between the rich and the poor. While multinational corporations benefit from tax breaks and incentives, ordinary citizens bear the burden of high taxes and reduced social services.

The coordinator pointed out that while corporations report billions in profits, their workers struggle to make ends meet.

“You ask someone how much they earned in a company that registered massive profits, and they tell you they never even get paid on time, let alone receive benefits,” she said. The report calls for policy changes that prioritise social welfare over profit.