Sharp Daily
No Result
View All Result
Tuesday, December 16, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

Economic reforms are costly

Brian Otieno by Brian Otieno
June 3, 2025
in Opinion
Reading Time: 2 mins read

In Kenya, efforts to achieve economic stability through fiscal reforms have ignited a contentious debate over their social impacts. Burdened with a public debt amounting to 68.9% of GDP in May 2025 and a fiscal deficit projected at 4.9% for  the supplementary budget 2024/25, the government has adopted austerity measures and increased taxes as key strategies. Though intended to salvage the sorry situation, these reforms have created significant burdens on citizens with  widespread discontent over escalating living costs and reducing economic opportunities.

Kenya’s fiscal consolidation program, backed by the IMF and World Bank, aims to stabilize an economy shaken by external shocks.  The government has tried in vain  to  design policies aimed  to raise revenue which has been met by total resistance by the public. In a country where the poverty rate stands 34.0%  at 0.34% these measures have intensified economic hardship. Basic items like maize flour and cooking oil have become unaffordable worsening the situation further.

The social consequences are severe. Kenya’s Gini coefficient of 0.39 indicates a worrying level of income inequality within the country, where Gini coefficient of 0 represents perfect equality (everyone earns the same) and 1 represents perfect inequality (one person holds all income).Austerity measures have also weakened public services, where government services such as education and Health sectors grappling with underfunding affecting their operations as a result of reduced funding.

To close the gap on inequality and the unintended effects of this policies, Kenya must place greater emphasis on inclusive development policies. Strengthening programs like Inua Jamii can cushion the poor from the shocks of reform. Devolved governance also offers promise, with counties l investing in vocational training to prepare youth for jobs in technology and tourism. Community led approaches, including agricultural cooperatives and saccos can enhance also enhance resilience against climate and market disruptions, ensuring broader participation in economic progress. Transparent fiscal practices and inclusive budgeting can help restore public trust.

RELATEDPOSTS

World Bank says Kenya Is shielding state firms from market realities

World Bank warns Kenya against shielding state firms from market competition

December 9, 2025
Kenya IMD ranking

Kenya’s landmark entry into the IMD world competitiveness ranking 2025 as Africa’s top performer at 56th globally

December 1, 2025

The success of the the current economic reforms  therefore depends on acknowledging and addressing their social costs. By investing in human capital through education, health, and creation of job opportunities. With that, the government will  turn discontent into satisfaction, ensuring that economic transformation benefits all Kenyans, not just on the state’s balance sheet

Previous Post

Cytonn Income Drawdown Fund (CIDDF)

Next Post

Understanding inflation and its impact on everyday life

Brian Otieno

Brian Otieno

Related Posts

Economy

How state aid is hurting Kenya’s private sector

December 11, 2025
Analysis

Investing in 2026: because “nitaanza kesho” has expired.

December 10, 2025
Business

Loan apps in Kenya: How they work and what makes them stand out

December 10, 2025
Analysis

Tanzania’s independence day 2025: a nation mourns as celebrations give way to crisis

December 9, 2025
Analysis

Vodafone Safaricom acquisition: KES 204 billion deal sparks national sovereignty debate in Kenya

December 5, 2025
Opinion

Policy Reforms Needed to Curb Abuse of Customer Data in Kenya

December 5, 2025

LATEST STORIES

Kenya shilling hits 16-month high against dollar as Central Bank builds reserves

December 16, 2025
Kenyan courts in December reaffirmed that title deeds are only prima facie evidence of ownership.

Kenyan courts reaffirm title deeds are not conclusive proof of land ownership

December 16, 2025

The Jobless Gap: Navigating Kenya’s Persistent Unemployment Crisis

December 15, 2025

Kenya’s Public Debt Dilemma: Navigating the Trilemma of Sustainability, Currency Risk, and Chinese Loans

December 15, 2025

Kenyan banks lower lending rates after central bank cut

December 15, 2025

Special funds vs money market funds Kenya: The complete 2026 investment comparison

December 15, 2025

Kenya’s national infrastructure fund and sovereign wealth fund

December 15, 2025

Kenya’s High Court suspends implementation of Kenya US health deal amid legal challenges

December 15, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024