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Government and Policy

How Kenya’s Government Can Address The Multiple Challenges Facing The Country And Turn Around The Economy

BY Steve Biko · May 14, 2023 02:05 pm

KEY POINTS

To create more jobs, the government needs to invest more in sectors that have a high potential for growth and employment creation, such as agriculture, manufacturing, tourism, ICT, and renewable energy5. The government also needs to provide incentives and support for small and medium enterprises (SMEs), which are the backbone of the economy and employ about 85% of the workforce.

KEY TAKEAWAYS

Corruption is an endemic challenge facing Kenya, as it undermines the rule of law, democracy, and development of the country. According to Transparency International, Kenya ranked 124 out of 180 countries in the Corruption Perceptions Index 2020, with a score of 31 out of 100.

Kenya is a country going through so much. The current administration is facing serious political opposition from the Azimio La Umoja (Declaration of Unity) Alliance led by Raila Odinga, who accuses the government of fraud in the 2022 presidential election, mismanagement of the economy, and violation of human rights.

The opposition has staged several protests in the past months, demanding electoral reforms and lower cost of living, which have been met with police brutality and violence. The protests have also disrupted the normal functioning of the country and affected its already fragile economy.

The government of President William Ruto has agreed to a temporary truce with the opposition and expressed willingness to engage in dialogue over some of the issues raised by the protesters. However, the government has yet to show how it will address the multiple challenges facing the country, such as creating jobs, reducing poverty, making healthcare affordable, making education more relevant, enhancing security, combating corruption, and tackling gender-based violence. These are some of the pressing problems that affect millions of Kenyans and require urgent and effective solutions.

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Creating Jobs

One of the main challenges facing Kenya is unemployment, especially among the youth. According to the Kenya National Bureau of Statistics (KNBS), the unemployment rate in Kenya was 10.4% in 2021, up from 5.2% in 20194. The Covid-19 pandemic has worsened the situation, as many businesses have closed down or reduced their operations due to lockdowns and restrictions. The lack of jobs has increased poverty, crime, and social unrest among the population.

To create more jobs, the government needs to invest more in sectors that have a high potential for growth and employment creation, such as agriculture, manufacturing, tourism, ICT, and renewable energy5. The government also needs to provide incentives and support for small and medium enterprises (SMEs), which are the backbone of the economy and employ about 85% of the workforce6. The government can also promote entrepreneurship and innovation among the youth by providing access to finance, training, mentorship, and markets for their products and services.

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Reducing the Cost of Living

Another major challenge facing Kenya is the high cost of living, which has eroded the purchasing power and living standards of many Kenyans. The inflation rate in Kenya was 9.2% in February 2022, mainly driven by rising food and fuel prices. The Covid-19 pandemic has also increased the cost of health care and education for many households. The high cost of living has triggered protests and discontent among the population, who demand lower prices for basic commodities and services.

To reduce the cost of living, the government needs to implement policies that will stabilize prices and increase incomes for consumers. Some of these policies include:

  1. Subsidizing essential goods such as maize flour, cooking oil, sugar, milk, bread, and kerosene.
  2. Reducing taxes and levies on fuel and electricity.
  3. Increasing minimum wage and social protection for workers.
  4. Expanding universal health coverage and free primary