President William Ruto will today address Kenyans on his government's scorecard amid an economic crisis.
Most sectors of the economy are in a state of stagnation and Kenyans have been severely affected by the rising cost of living.
Households have suffered a drop in their disposable income on the back of an extraordinary rise in the tax burden.
The Ruto government has defended its new taxes, which have worsened the raging cost of living crisis and made doing business difficult, especially for small traders.
Despite the hardships, the government has pledged to double down on tax compliance and net new taxes from businesses and individuals.
The majority of commercial banks revealed recently they fear more than half of Kenyan borrowers and traders will default on their loans.
Businesses and individuals who had taken new loans on the strength of increasing cash flow with the reopening of the economy are struggling to service their loans as the economy falters again, and a likely recession is feared.
Banks have tightened their lending standards but also stepped up loan recoveries setting up many Kenyans for property seizures.
Companies are also sending home workers in unprecedented numbers.
Kenyans are enduring hardships after the controversial Finance Act, 2023, came into effect, ushering in new taxes for individuals and businesses.
In September, a government think tank asked the Ruto administration to beef up social security for Kenyans who are confronting a high cost of living.
Crippling interest rates
However, some of its proposed tax and policy measures have been questioned by various interest groups.
Families are facing even more pain from the twin blow of soaring fuel prices and crippling interest rates.
The prices of key food items have increased significantly over the past couple of months.
The high cost of living in a high-inflation environment has huge implications on social welfare, experts say.
It erodes the purchasing power of consumers, depriving them of the opportunity to access necessities like food and healthcare.
Damaris Wamuyu, a mother of six who has earned a living doing laundry in the Githogoro slums in Kiambu County for over seven years, can no longer sustain his family.
And even though her earnings were meagre, she was always able to provide her children with two or three meals a day. Not anymore.
"I am unable to buy basic essentials like maize flour and cooking oil because their price has gone up beyond my reach," she said, capturing the feeling across many Kenyan households that have been pushed into a tight corner by ever-rising costs of goods.
Like her, many fellow slum dwellers in Githogoro - which neighbours Runda Estate where offer menial services to the super-rich - are feeling the pinch.
"I have to choose between them sleeping hungry and managing what little is available. Life is difficult for us at the moment," she said.
These families are looking up to President Ruto's speech today on his plan to lessen their burden.
"The President has to do more to help us as we struggle with the rising cost of living," said Wamuyu.
A weakening shilling is also adding pain to consumers across the country, hindering the government's efforts to rein in the stubborn cost of living.
The shilling has been under pressure against the dollar, setting up the country for more expensive imports and debt servicing distress.
The CBK quoted the shilling at 151.3794 to a dollar yesterday.
This has forced many households, especially in the low-income segment, to reduce their shopping basket.
Adjusting lifestyles
This is because the country relies on imports for key industrial inputs such as fuel and raw materials like wheat and edible oil as well as farm inputs like fertiliser.
Many middle-class and working-class Kenyans have said goodbye to discretionary costs, including dining out or vacations.
The high cost of fuel is also forcing some, especially in Nairobi to ditch their cars.
They include John Wainaina, who plies the Thika Road-Westlands route. The city-based insurance broker says he has been forced to dump his car over the high cost of fuel.
"It was no longer tenable for me to continue fueling my car as it has become too expensive," says the father of four. "I have decided to use public means."
