Government and Policy

Market Forces Will Make Minced Meat Of Ruto’s Cabinet List Unless We Have Radical Changes

BY Steve Biko · September 30, 2022 11:09 am

KEY POINTS

Kenya is an agrarian economy, and we have for decades refused to invest heavily into agriculture, manufacturing, production, and agro-processing that we look like a country stuck in the 18^th Century.

We have the opportunity and the potential, but our Achilles is the leadership or rather the political class.

KEY TAKEAWAYS

You cannot aspire to lead the poor into prosperity by condemning the rich into adversity. You cannot strengthen the weak by weakening the strong.

Achieving collective prosperity goal through the bottom-up economic model without proper firewalls against its ills is like sitting on that wheelbarrow and trying to lift yourself up by the handles.

Njau Kihia said this during the just concluded hotly contested elections in Kenya. That there is no nation or state that enjoys economic takeoff by inciting class hatred.

You cannot aspire to lead the poor into prosperity by condemning the rich into adversity. You cannot strengthen the weak by weakening the strong.

Achieving collective prosperity goal through the bottom-up economic model without proper firewalls against its ills is like sitting on that wheelbarrow and trying to lift yourself up by the handles.

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The side he was supporting won the election and now is in charge of our country. It is time to focus and work. Like never before BUT the question is, will this be possible?

Kenya is an agrarian economy, and we have for decades refused to invest heavily into agriculture, manufacturing, production, and agro-processing that we look like a country stuck in the 18^th Century. We have the opportunity and the potential, but our Achilles is the leadership or rather the political class. Occasionally we show our brilliance and then it is shut down.

Now that politics is behind us and we can now look forward, we are one country under one leadership. Our political affiliations do not matter. We will suffer as one, enjoy as one, and cry as one because unfortunately, the political class hates us with a passion, and everything has been designed for them and them alone.

Looking at the Cabinet Nominee List, I have no hopes and expectations because what we need are radical changes and persons of integrity to manage our country and fix the problems that are now threatening to swallow us alive. We need a serious political will that will put the interests of the country and the people first. Can we get this? It does not matter if David Ndii is in charge of Prof Ndungu. If we do not get the right political will and we do not respect the law and adhere to it and strictly reduce spending by the government, then all is hot air.

Truth is, reducing the cost of living is a pipe dream. Reducing the cost of production is a mirage if we are not honest with ourselves and agree that we need radical and surgical economic solutions to give our economy any hope. Our economy is a market-oriented one and if we tweak this to make it a commanding market, then that will kill markets completely. Prices must be dictated by market forces and not the political interests of those in charge.

Markets forces are going to be the hardest headache for this administration. Irrespective of the choice for CS for Treasury and Trade. These forces are:

Opportunity Cost
Demand & Supply
Elasticity Of Demand & Supply
Scarcity & Choice
Cost of Energy
Cost of Credit
The Market Regulatory environment
Payment of local and foreign debts
The Forex Environment
Food Security Status

The KEY Ministries that will make or break the Country in economic terms are:

Treasury & Planning
Agriculture
Interior
Energy & Petroleum
Trade & Industry
Transport & Infrastructure
Health
Education
The AG’s office

These nine will directly affect all of us with great impact because they will determine the cost of living and the level of quality of our living standard. This will be felt directly by everyone. No amount of PR will cover the truth.

The following issues will push market forces to the breaking limit:

Cost of Energy
Cost of Fuel ⛽️
Cost of farm Inputs
Cost of Healthcare
Cost of Living
Cost of Living
Cost of Corruption
Cost of Transportation
Cost of fines levied against the government

They will catalyze the market’s issues to a point that if we are not careful then these issues will stop being economic & become political. We need the leadership to be honest and to be humble because they are now leading the whole country. Throwing shade here and there and targeting the opposition will only do more damage. Governing the country won’t be easy given the 7M Kenyans voted for the other side. Humility, wisdom, and deliberate positive acts of endearment to all Kenyans are needed now more than ever. Truth is, this administration will not be able to govern if they continue throwing shade and humiliating the other side, and picking characters of questionable integrity to be in charge of our resources.

My advice to all of us, whether Kenya Kwanza or Azimio is:

Save the Little you can because emergencies do not care about your political affiliation
Invest the little you can as much as you can
Budget for every coin because they come easy
Have discipline on the above
Sacrifice if you can now, for a better tomorrow.