SAPs failed Africa in the 90s, why go back to them today?

Is Kenya undergoing a contemporary iteration of the Structural Adjustment Programmes (SAPs) that were implemented across Africa in the 1980s and 1990s?

This question merits consideration as we observe some parallels between the objectives, strategies, and consequences of SAPs and Kenya’s current economic situation.

It is crucial, however, to avoid attributing our challenges solely to international partners and instead address the apparent policy disarray contributing to an unprecedented economic downturn.

To provide context, SAPs emerged in Africa as responses to the debt crisis plaguing many countries during the 80s and 90s. These programmes, formulated by the International Monetary Fund (IMF) and the World Bank, aimed to address high external debt levels and dwindling economic growth.

Typically encompassing a series of policy measures and conditionalities, SAPs sought to stabilise African economies. Common components included fiscal austerity, trade liberalisation, deregulation, and privatisation of state-owned enterprises.

The economic policy landscape under the Kenya Kwanza government, while lacking coherence and exhibiting deceptive bottom-up sloganeering, aligns with the SAP framework through initiatives such as privatisation of Mombasa Port, substantial tax hikes, and a cry of a significant debt burden.

Evaluation reports on SAPs often highlight that the intended economic benefits were frequently outweighed by social costs, leading to increased poverty and inequality.

Of particular concern is the perceived or real political influence of international partners, especially in the election of African presidents. The tension between well-intentioned partners and sovereign states exercising their democratic right to elect leaders is a persistent challenge, with citizens often left uninformed about dealings between presidential candidates and their undisclosed financiers during elections.

This analysis brings us to a crucial point. If the Kenya Kwanza government is adopting economic principles from the failed SAPs, it risks repeating historical mistakes.

A notable area that international partners tend to overlook is the rampant mega corruption plaguing the countries they support. Kenya, in particular, grapples with staggering corruption cases, such as the recent Sh17 billion oil scandal. Granted, we understand why corruption thrives.

Firstly, the historical account of our nationhood formation has left a lasting impact, with post-colonial institutional structures often serving foreign interests rather than the needs of the local populace.

Secondly, cultural dynamics also contribute significantly to the corruption landscape in Kenya. Deep-seated patronage systems, tribalism, and nepotism influence political appointments and decision-making processes. This results in a culture where personal connections take precedence over merit-based governance, fostering an environment in which corruption thrives.

Moreover, the absence of robust ethical foundations within both societal and governmental frameworks further perpetuates corrupt practices.

Thirdly, governance and accountability issues contribute significantly to corruption. Weak regulatory frameworks, insufficient oversight mechanisms, and a lack of transparency in the top government leadership create an environment where corruption flourish. Ineffective law enforcement, coupled with a lack of severe consequences for corrupt practices, further emboldens individuals to engage in graft. Additionally, political will to tackle corruption has often been inconsistent, with anti-corruption efforts facing challenges such as interference, lack of resources, and insufficient commitment from key stakeholders.

Development partners, given their significant influence, bear an obligation to address corruption, as their support to governments entangled in such malpractices raises questions of complicity. To genuinely uphold principles of accountability, transparency, and fair elections, international partners must actively engage in combating mega corruption and contribute to alleviating the burden of high taxes on Kenyans.

Sitting on the sidelines undermines the values they aim to champion and compromises the well-being of the common people who bear the brunt of economic challenges.

The writer is Executive Director Loyola Centre for Media and Communication