Step up vaccination to avoid new lockdowns

That Kenya’s private sector hiring grew at fastest rate in two years in November points to an economy recuperating from the Covid-19 pandemic and a reduction in unemployment.

However, the new variant Omicron could easily knock the fragile economic recovery off track.

An increase in coronavirus infections especially after the holiday season could send the economy into a tailspin, leaving health care systems burdened, and consumption of goods and services at a low again. The holiday season will increase travel, and merry-making in restaurants and pubs, adding to the uncertainty.

The government must ensure that the new coronavirus variant is tamed to protect Kenya from going back to lockdowns, curfews, and travel restrictions in January.

It should roll out rapid and effective vaccination around the country, create awareness about the new Omicron variant, and release the economic stimulus funds to industries.

Yes, some industries are growing but many small and medium enterprises are still struggling.

Part of the stimulus money should be used to widen the market and offer better produce prices to tea, coffee, sugar, livestock sub-sectors that are critical in putting money in peoples’ pockets or improving purchasing power.

A survey of 400 corporates shows that companies in agriculture, wholesale and retail, services and mining sectors reported “solid expansion” in the workforce last month.

The growth was attributed to the lifting of the curfew that had been in place since March 2020. The growth rates mirrored increased production levels, with companies having to recall furloughed staff and hire more.

How this new variant will affect employment levels and inflation rates is unclear though. The Treasury must bring to reality the Sh25 billion economic stimulus announced by President Uhuru Kenyatta a month ago.

But it would be shortsighted to spend billions of shillings to support the economy while failing to vaccinate the whole adult population.