Government demonstrating momentum to transform Kenya
President William Ruto shakes the hand of Safaricom CEO Peter Ndegwa after meeting with the telco and banks executives over Fuliza charges review. PHOTO | DIANA NGILA | NMG
Within three months, the President William Ruto government has defined a path and momentum focused on transitioning Kenya to an economy responsive to aspirations of younger generations.
The apparent approach is achieving early results in areas that do not require massive budgets, considering financial limitations facing Kenya. Much can indeed be accomplished by reforms and cleanups of policies, laws, systems and governance habits that frustrate progress.
The government has targeted expansion and easing of lending systems to increase capacity to provide affordable credit to businesses and enterprises. By being friendly and helpful to business and customers, lenders can unlock potential for economic growth and jobs.
Another major economic enabler emphasised by the government is rebranding of the Kenya Revenue Authority (KRA) to replace its “teeth” with “reason and smiles” to get Kenyans and businesses on board to fulfil tax obligations.
The new government has gained goodwill with multilateral and bilateral financiers, and international investors. These can be a source of alternative development capital as Kenya sorts out its debt predicament.
Conditionalities imposed by IMF should be viewed positively as a one-off opportunity to clean up our budgetary processes. Kenya should co-operate and walk with the IMF, for indeed our options are limited.
The government has come up with quick fixes for the ongoing food scarcity and high costs. Liberalisation of grains and sugar imports for one year will reduce immediate pressure and allow Kenya to re-engineer its food sufficiency strategy, a subject much talked but not sufficiently walked by previous governments.
Allocating sufficient budgets, strengthening value chains, and focused county government participation will do the miracle. Kenya cannot advance its agro-industries agenda without a strong agricultural base.
A glaring opportunity for youth employment (after skilling them) is to create effective capacity and systems in the Diaspora and Labour departments to facilitate our skilled youth to move into overseas job markets, the way Philippines does it.
It should be a well-resourced policy and system with effective consular support services in host countries. Kenya can specialise its niche offer in TVET and ICT skills. Yes, we desperately need secure diaspora jobs and associated forex remittances.
The Ruto government has gotten off to a good start. The path ahead is certainly not easy, but maintaining momentum and focus is essential to keep expectations under control. Public goodwill is definitely in abundance. Much can be accomplished with existing resources while strengthening national budgetary capacity.
