President Ruto's Best Decision Amid Fuel and Economic Crises in Kenya.

 

The Kenyan economy needs a profound reawakening as it is among the economies at risk of collapsing.

What do you do to a sick buddy you wish could recover as soon as possible? Do you administer bitter herbs because they are known to cure such a complication, or do you give them sweet food and drinks, knowing very well they will not improve their situation? Or rather, do you give such bitter herbs to such an ailing friend because you don't care anymore? The answer is NO. Sometimes the best solution comes with sacrifice. On the 13th of September, 2022, His Excellency Dr. William Ruto suspended the imposed subsidy on fuel prices, raising issues among ordinary Kenyans. Most of them are bitter about the decision because it further raises living standards across the country. An increase in fuel prices directly affects essential commodities, including food, housing, transport, and farm inputs, among others.

However, president Ruto was brave enough to administer a bitter pill to Kenya as a way of permanently saving our sinking economy. The subsidy on fuel was a consumption subsidy which is not sustainable. The Kenyan economy was oozing blood and was almost collapsing. Some of the reasons that nearly killed the economy were;

1.   Corruption and weak governance

2.   Weakened consumer spending (leading to rising unemployment and poverty)

3.   Lower public investment and fiscal austerity

4.   Uncertainty relating to the political environment.

However, there is hope for ordinary people. They will only be subjected to a high cost of living for the short term and reap the fruits in the long term. President Ruto has vowed to work on the economy to ensure a better life for the ordinary. It is not possible to wake up one day to fix an economy. In fact, it is not easy. However, the government has started with the right gear, shifting subsidies from consumption to production. Agriculture has been the country's backbone since its independence. It is a shame that the country failed to produce enough for local consumption, even as it sits on a vast potential.

Subsidies geared to production have seen the president make tonnes of fertilizer and quality seeds available to the farmers. The government targets the annual short rains in the year's final quarter to enable farmers to produce more for the country. The government is also working on furnishing available credit to micro, small and medium enterprises (MSMEs) because they play a pivotal role in economy building. Millions of Kenyans are jobless because of the unavailability of capital and access to credit. The hustler fund is expected to play a pivotal role in creating numerous jobs in the market, raising the government's revenue through taxes.

The government's attempt to end corruption in the country is gaining momentum, with the president vowing to deal with cartels and state capture during his tenure. My call to Kenyans is to plead with them to give the executive time to work on the economy. President Ruto and his Kenya Kwanza government have a plan verified by numerous economists that will work for our country. It starts by accepting that there is a global fuel crisis and our economy is ailing. We need to take these bitter herbs if it is what it takes to cure our economy.