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Some glaring inconsistencies that undermine Rutonomics

Living
 President William Ruto. [Kelly Ayodi, Standard]

To take stock of government performance after 100 days in office, President William Ruto and his Cabinet retreated to the exclusive Mount Kenya Safari Club for a four days session of bonding and strategising. While the idea of a strategy session is commendable, for a government that claimed to have inherited empty coffers, the choice of such an expensive venue exemplifies the contradictions of this administration.

Misgivings about the venue aside, more pertinent concerns are the contradictions that have characterised policy choices to address high consumer prices and unemployment. In general, the contradictions reflect attempts by the administration to translate populist campaign promises into coherent economic policies.

Some policy contradictions illustrate the point. For instance, while the idea of providing cheap credit to SMEs is laudable and timely, it contradicts CBK efforts to tame inflation by increasing interest rates. Similarly, while government effort to raise revenues by expanding the tax base is welcome, the exercise will lead to high prices and shrink household disposable incomes at a time the government is focused on stimulating demand and creating employment.

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