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Home»Cover Story»Our economic and state system is at risk, and Government has no answer
Cover Story

Our economic and state system is at risk, and Government has no answer

By the National Treasury’s own admission, a fragile wall holds Kenya back from economic collapse, but the problem is more than just about money – it is also about bad policy after bad policy, and clueless advisors
Silas ApolloBy Silas ApolloFebruary 19, 2024No Comments5 Mins Read
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By the National Treasury’s own admission, a fragile wall holds Kenya back from economic collapse, but the problem is more than just about money – it is also about bad policy after bad policy, and clueless advisors

For most of September 2023, the ruling Kenya Kwanza Alliance witnessed growing tensions as infights linked to a supremacy battle over the leadership of the Mount Kenya region threatened to split the coalition.

President William Ruto, who was elected President in August 2022, has also been experiencing mounting public pressure over the high cost of living and increased taxes imposed by his government. 

The Nairobi Law Monthly September Edition

The Head of State has previously argued that the new levies are aimed at helping the government increase revenue to service the growing public debt and deliver on its agenda for the country. But, even with that explanation, Dr Ruto’s critics and the public have continually insisted that the new taxes were punitive and made life much harder for the general public.

There has also been an uproar from the public over the recent spike in the cost of fuel – something that some analysts have termed as one of the highest increases that the country has witnessed in recent times.

Besides the taxes, the Head of State has also been facing criticism from his allies and critics over some of his choices for cabinet secretary positions, adding to the many challenges that the President continues to face even as he tries to lead the country, turn around the economy and deliver on his promises.

Just last month, the President found himself in the eye of the storm after some government officials, including his economic advisor David Ndii and Industry and Trade cabinet secretary Moses Kuria, ridiculed Kenyans over their complaints regarding the high cost of living.

The President was also in August forced to read the riot act to some of his cabinet secretaries and their principal secretaries, over how they were running their dockets, further fueling the growing public discontent with some of his choices for CS and PS positions.

Some critics of the government and pundits have argued that while the challenges that the President continues to face could be normal for any new leader, the growing tensions and public distrust may become problematic if not addressed.

Political commentator and university lecturer Gitile Naituli argues that Dr Ruto could be a victim of some of his choices and policy decisions during the campaigns and even after assuming office.

This is even as other critics also accused the President of making grand promises during the campaigns without a clear action plan on how his administration intended to fulfil most of those promises.

“Transformation of the economy requires thinking outside the box and against the box. Imagining that it’s possible to achieve an economic downturn by overtaxing citizens is a symptom of lazy thinking. 

Political analyst and scholar Prof Joseph Naituli.
Political analyst and scholar Prof Joseph Naituli.

“Where did this idea that Kenya’s prosperity is anchored on concentrating on all manner of taxes and levies on petroleum products come from?” Prof Naituli told the Nairobi Law Monthly.

The university don argues that by going against the promise to make life easier for Kenyans as had been promised during the campaigns, coupled with the double-speak by some of his CSs and the political infighting within his camp, the President could slowly be 

“Kenya Kwanza regime, through EPRA, has severed any little relationship it had with the hoi polloi whom they had baptized hustler. The fuel price hike signals nullification of mountains of Kenya Kwanza rhetoric about lowering the cost of living,” Prof Naituli said.

“The level of disconnection between President Ruto and the suffering mwananchi has been exposed for everyone to see. What was given with the right hand has been rudely snatched away in multiplication through the left one,” he added.

For others like governance expert and political commentator Mark Bichachi, the Head of State currently faces what he believes is a make-or-break delicate balance whose outcome may make or break his support base and that of the country.

“I believe that the many policies that the President continues to enact to increase taxes and revenue may be his Waterloo, if not managed properly. As we have seen, public discontent continues to grow,” Bichachi said.

However, allies and some supporters of the President have insisted and argued that all was well, both within his government and with the policy decisions he has taken, including raising taxes.

Deputy president Rigathi Gachagua, who has been linked to the infighting and supremacy battles within the Kenya Kwanza administration over the Mt Kenya leadership, has dismissed the accusations, adding that the coalition was intact.

Gachagua has, in recent weeks, been linked to the growing tensions pitting him against leaders from the populous and vote-rich Mt Kenya region, including Trade CS Moses Kuria.

The DP has, however, dismissed the claims, insisting that the government was united to deliver on its agenda to the people, including the bottom-up economic transformation agenda.

Gachagua had, in the week leading to the speculations of a rift within the government, asked public servants to communicate with Kenyans with respect, empathy, and humility.

This was after Kuria responded to Kenyans questioning the continued increase of taxes in a way that many considered unfriendly. 

“I made the statement as the deputy president of Kenya. I was guiding Moses Kuria and other leaders in communicating with the people. He had veered off. As a leader, I told him to come back on track,” Gachagua said.  

“There is no way a deputy president can be at war with the people working under him. It is my responsibility to guide and give directions to all leaders in the government who, in one way or another, may get out of track. Please understand that we are working as one unit led by President William Ruto. We are together and united; there is no crack in our government,” he added.

The Nairobi Law Monthly September Edition

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Economic Collapse Kenya Kwanza National Treasury Sila Apollo William Ruto
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The Nairobi Law Monthly September Edition

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