Stop lying to Kenyans, the economy is crumbling
Ureport
By
Joseph Muthama
| May 06, 2019
The 2019 Economic Survey by the Kenya National Bureau of Statistics (KNBS) contained some disturbing facts. According to KNBS, the country’s Gross Domestic Product (GDP) grew by 6.3 per cent in 2018 compared to 4.9 per cent in 2017. This exponential economic growth was attributed to increased agricultural production, accelerated manufacturing activities, sustained growth in transport and a vibrant service sector.
The economy created 840,600 new jobs in 2018 with the informal sector accounting for 82.6 per cent of the total employment. While the Government wants to convince Kenyans the economy is not on the rocks, the truth is the trickle-down effect to microeconomics level is virtually non-existence.
Poverty, unemployment, starvation, high cost of living, housing crisis, hopelessness and poor health continue to characterise many households. Despite manufacturing sector increasing by 5.1 per cent and construction by 6.3 per cent, unemployment, underemployment and housing crisis continue to haunt many Kenyans.
Sadly, widespread redundancies and unprecedented unemployment means the economy is in limbo. Building skyscrapers does not translate to affordable housing. Worse, the Jubilee administration’s promise to create 1 million jobs annually remains an illusion. In a nutshell, the economic growth figures could be grossly exaggerated.
READ MORE
State to shut down 25 entities, privatise others in new reforms
Why Kenya must move fast to invest in digital rights security
State, workers' pay tensions cloud function
Why the super-rich are ditching commercial property investments
S Sudan Central Bank Governor Rallies East Africans to Invest in Juba
Co-op Bank lines up billions for women-owned SMEs after German loan deal
Construction players protest state's bid to tax mining sector
Insurance sector players to explore use of AI in deepening uptake
Sugarcane farmers accuse AFA of 'siding with cartels' as prices drop
Growing demand for housing births modern mansions in Nakuru slums
Few businesses are flourishing and there is a dangerous disproportion between growth and disposable income. The Government must end corruption, apply austerity measures and improve infrastructure to reinvigorate the economy. Otherwise the lackluster economic growth will be the order of the day.
- State to shut down 25 entities, privatise others in new reforms
- Sugarcane farmers accuse AFA of 'siding with cartels' as prices drop
- Flooded petrol stations to be shut
- Forget miraa: Discovery of minerals stirs up Meru locals
- Firm linked to fake fertiliser calls for arrest of Linturi, NCPB boss