Sharp Daily
No Result
View All Result
Wednesday, June 25, 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

No Content Available

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

Opinion

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025
Opinion

How companies can prevent administration through early intervention

June 25, 2025
Opinion

How dormant assets could be a hidden economic engine

June 25, 2025
Opinion

Rethinking lifestyle inflation: The quiet investment killer

June 25, 2025
Explainer

How Kenya can compete with global employment markets

June 24, 2025
Opinion

Parliament slashes tax on digital asset trades: What this means for investors

June 23, 2025

LATEST STORIES

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025

How companies can prevent administration through early intervention

June 25, 2025

How dairy bonuses are becoming a lifeline for Kenyan farmers

June 25, 2025

How dormant assets could be a hidden economic engine

June 25, 2025

Rethinking lifestyle inflation: The quiet investment killer

June 25, 2025

How Kenya can compete with global employment markets

June 24, 2025

Why Athi River deserves your investment

June 24, 2025

Parliament slashes tax on digital asset trades: What this means for investors

June 23, 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