Despite growth, wealth yet to trickle down to Kenyans

Treasury Cabinet Secretary Henry Rotich will today present the National Budget for financial year 2017/2018. It being an election year, the 2017 Budget Statement will be read nearly two months early. Parliament will dissolved in June, 60 days to the August 8 election date.
Budgets not only point out how the government aims to raise money, they outline how the government intends to use the money raised for the benefit of the taxpayer. Of the Sh2.3 trillion 2016/2017 budget, Sh600 million was raised through domestic and external borrowing, most of it was raised through taxation.

These funds ought to ensure that public services like health, education, security and others run smoothly.

To supplement the budget, the government has had to borrow externally and at times domestically to fund infrastructural development projects like roads and energy expansion including the Sh300 billion Standard Gauge Railway line. Though there will be a significant reduction in the cost of producing goods because of cheaper haulage costs and a stable, affordable power supply, unfortunately, the return on investment on these projects have not triggered an economic boom big enough to stimulate widespread growth across the economy. In truth, the Keynesian theory has been turned upside down.

Basic commodities like sugar, milk and flour remain prohibitively costly for most of the 42 million Kenyans. Thanks to rising inflation that now stands at 9 per cent. With most companies downsizing and issuing profit-warnings, it is easy to conclude that the economy is out of kilter.

The ranks of the unemployed, most of whom are youth fresh out of school is swelling thereby posing a potential threat to social harmony. Reports of official corruption, wastage, grand larceny and inefficiency only help to amplify the narrative of the richer getting richer and the poor, poorer.
So though figures might show that the economy is healthy, there is reason to worry that the wealth is not trickling through society. And that is dangerous.