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Unga crisis: An act of God or a case of mismanagement?

It is said that when you see a house on fire put out the fire first then ask for who put the house on fire. To me President Uhuru Kenyatta has put out the fire by subsidizing Unga. Now we can start asking for who put the “unga” house on fire.

Very simply a subsidy is a financial aid to promote the recipient. There are producer and consumer subsidies. The former ensure producers are better off while the latter reduce the price of goods to the consumer as has been done with Unga. Many subsidies are unsustainable because they are financed by the tax payer and come with high opportunity costs. The unga subsidy is in force only up until July 31. This then justifies why sustainability strategies should be planned.

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