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Uhuru Stopping New Projects Is Empty Petty Rhetoric, Economy Is Collapsing Soon

Uhuru Stopping New Projects Is Empty Petty Rhetoric, Economy Is Collapsing Soon

July 29, 2018 2 Comments

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By E Njega

I have been doing a bit of moving around and observing things as well as going through latest statistics on the economy. Most of the indicators show an economy facing stress from nearly every angle.

It does not help that the government continues to deny the obvious and worse still is implementing adverse economic policies which are destroying the private sector. This trend has been on over the last five years. Most of the economic sectors have fallen victim to such ill thought out policies. Even when they are eventually reversed the impact lingers on for long.

The recent sensational announcement by the president about stopping new projects just shows how chaotic the policy environment is. This is a political declaration with little to do with the economy.

The president has over the last five years launched many politically motivated projects which have indebted the country without any meaningful economic returns. Even if such were to be completed, there is little to be gained.

Besides how do you stop projects whose budgeting process has just completed. What law provides for such a declaration? The best time to do that is long gone. Budget making is a reserve of parliament not presidential declarations.

Considering the fact that the private sector is deteriorating, any attempt at reducing government spending haphazardly will slow down the economy further.

The government should tame its spending by developing a budget that reflects the economic realities of the day. It needs to tighten its belt and live within its ever emaciated means. The days of debt driven growth are gone. Any further incremental borrowing will come at a very high economic price.

Most importantly the government needs to cede the role of growing the economy to the private sector. This means reversing all the nonsensical anti-business policies implemented over the past five years. These should be replaced with incentives and policies that facilitate the private sector to operate optimally.

It also needs to stabilise the policy environment as the endless uncertainties are scaring away investors. There is no easy way out of the current economic mess. Simplistic roadside declarations will only make things worse. You also cannot tax your way out of an economic crisis. The more you postpone hard decisions, the harder it will be to forestall an economic crisis which is knocking furiously at the door.

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Filed Under: Business Tagged With: Uhuru Kenyatta

Comments

  1. Anonymous says

    July 30, 2018 at 1:17 am

    Ruto allies read mischief in war against graft, vow to hit back

    Sunday June 10 2018 By WANJOHI GITHAE & By JUSTUS WANGA

    A silent but vicious war has erupted in Jubilee following President Uhuru Kenyatta’s purge on graft with allies of his deputy, William Ruto, feeling they are unfairly being targeted.

    Since the Director of Public Prosecution Noordin Haji charged tens of suspects in the National Youth Service (NYS) scandal in court with theft of public money and now with intensified investigations into possible tender scams at the Kenya Pipeline, the lieutenants of the Deputy President have grown jittery, even holding meetings to interrogate the import of what some of them believe is a witchhunt.

    The MPs, mostly from the DP’s Rift Valley backyard and the pastoralist communities, are now plotting an all-out political battle against selected members of President Kenyatta’s “kitchen cabinet” whom they blame for what they call a plot to derail Mr Ruto’s presidential ambitions.

    Reply Report comment
  2. Anonymous says

    July 31, 2018 at 12:11 pm

    Whats wrong with Masail elders/& their idiot politicians ? Why is Ledama ole kina
    Alex Ole Magelo and Ole Kenta want this time to sell their asses to Egyptian as their Slaves? in other word why do these Masai boys wants to have anal-sex with Arabs from Misri (Egypt) Kenyans can solve Mau forest issue amicably without involving Arab asseholes.,
    ,

    Reply Report comment

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