Sharp Daily
No Result
View All Result
Thursday, November 13, 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 legacy media firms are fighting to stay competitive

November 7, 2025
Analysis

Back to class & back to business: how Kenya’s university reopening sparks an economic ripple

November 5, 2025
Trucks crossing the Namanga border between Kenya and Tanzania
Analysis

KAM warns of trade disruption as Tanzania election tensions threaten East African stability

November 5, 2025
Business

How fintech is powering Kenya’s cashless future

November 3, 2025
Analysis

Tanzania travel advisory November 2025: what it means for Kenya tourism this christmas season.

November 4, 2025
Analysis

Artificial intelligence in marketing: when AI becomes the brand

October 31, 2025

LATEST STORIES

Kakamega gold mining project: Sh683 billion discovery set to transform Western Kenya

November 12, 2025

Smart saving strategies for thriving in today’s business and economy

November 12, 2025

Museveni warns of war over Indian Ocean access.

November 12, 2025

IMF cautions Kenya and Ethiopia on risks of Yuan debt swaps

November 12, 2025

The polar bear: Guardian of the Arctic wilderness

November 12, 2025

Trinity of terror East Africa: regional political crisis explained

November 11, 2025

Activists freed as Kenya faces IMF talks and rift valley disaster

November 11, 2025
The-Social-Health-Authority-Offices-in-Nairobi

TSC agrees to join teachers on SHA scheme after standoff with unions

November 11, 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