Letters

Address extreme inequality ravaging Kenya

kibera

A section of Kibera slums in Nairobi on Sunday, November 28, 2021. PHOTO | DENNIS ONSONGO | NMG

The extreme inequality the country is facing despite having recorded impressive economic growth since 2005 has a historical root. When Kenya got independence, we adopted an economic model that was capitalist in nature and not far from what colonialists had perpetuated, allowing a small group of rich people to control a huge chunk of our economy.

There has been a lack of strong deliberate policy interventions to avert this unfortunate scenario, which we have instead nurtured over the years pushing the country into a deeper crisis that has in recent years threatened to rupture the nation. It is this inequality that is shaping our political discourse today without any clear outcome.

The issue of extreme inequality has been exacerbated by the fact that those who control the economy also have a hand in politics. In Kenya today, one must amass huge wealth to get elected into leadership positions due to the expensive campaigns that must be financed by those seeking elective positions.

The gap between the richest and poorest has reached extreme levels in Kenya. Less than 0.1 percent of the population (8,300 people) own more wealth than the bottom 99.9 percent (more than 44 million people). The richest 10 percent of people in Kenya earn on average 23 times more than the poorest 10 percent.

The number of super-rich in Kenya is one of the fastest-growing in the world. It is predicted that the number of millionaires will grow by 80 percent over the next 10 years, with 7,500 new millionaires set to be created.

Inequality is not a mere technical issue. It is not just a tyre you can fix with the right tools and know-how, and then get back on the road. Inequality is above all and tackling it is a result of political choices. And that means tackling it is a political responsibility.

Even United Nations has pronounced itself on the subject adopting the slogan ‘Leave No One Behind’ as a clarion call.

To reduce extreme poverty, two things must happen. First, economic growth must stay at the level it had for the past ten years or even better. Second, this growth must integrate the small-scale traders and rural folks engaged in agriculture for the creation of the value chains.

Although the Kenyatta administration has undertaken huge infrastructural projects, many Kenyans continue to wallow in poverty since these projects, though they may have long-term benefits, are not currently connected to what they do for a living.

Quality education

To reduce extreme inequality to sustainable levels, the Kenyan government should implement economic policies and legislation to reform the fiscal system, raise sufficient financing for free, quality public education and healthcare, and close the economic inequality gap for women.

The government of Kenya has overtime put in place policies and reforms to reduce inequality, which should be expanded to cover more diverse areas of our economy such as support of Small and Medium Enterprises (SME) that can serve as key government suppliers and create more jobs.

The only sector that has the potential for new jobs to satisfy the huge demand in the informal sector popularly known as Jua Kali. Instead of importing goods that can be manufactured locally by the Jua Kali sector, the government should offer incentives on the cost of energy, tax, creation of incubation centers to equip skills, and flexible loans among others.

The government must also be applauded for social-economic policies such as cash transfers to vulnerable groups and devolution of government functions and services to local levels. Critically, we must generate jobs and income for women and young people with poor future prospects. Also, we must fight tax avoidance, tax evasion, wastage and corruption.

Although promotion of overall rapid economic growth and trickle-down policies have been widely pursued as means of alleviating poverty and inequality, income inequality and poverty remained high even when the economy achieved relatively high rates of economic growth.

As the saying goes, the rich cannot sleep because the poor are awake and hungry, elites and kleptocrats should know there’s a limit to how high you can build the gates around your communities. The time has for a paradigm shift and change.

Raphael Obonyo, a public policy analyst