Perils of double-speak in the face of current precarious economic reality

Whichever way one may want to look at it, the handling of corruption cases by the Director of Public Prosecutions and the investigative agencies is of grave concern to investors and businesses in general. Coming hot on the heels of a change in government, it sends a foul smell on the integrity of our institutions, sanctity of the Constitution and rule of law. It behoves the citizenry to interrogate the character of those entrusted with the highest honour to preserve our constitutional rights and order. In the absence of a justifiable explanation from the prosecutor on the criteria used to drop the cases that appear to favour those allied to the government and revive those of their opponents, two conspiracy theories emerge: Either it is true that the anti-graft agencies had been weaponised against the Kenya-Kwanza political formation prior to the elections or the new administration has pulled the strings to transform economic criminals in their ranks into saints. If we were to stretch our imaginations further, does it then mean independent public agencies can be invited to harass or intimidate legitimate businesses or private citizens at whims of those in power? Take, for instance, the case of Kenya Power; as a publicly listed company, who protects the interest of minority shareholders if its former top leaders could be maliciously prosecuted for political reasons? Assuming the cases now have been dropped through influence peddling, why should the investing publics trust the ability of the company to promote shareholder value? Why should consumers and service provider's believe in its corporate brand and civic obligations given its monopolistic power? Why should anybody of sound mind buy into the overtures of the Hustler government to enhance their savings and contributions into other public entities like NSSF and NHIF? Can we believe what is said in daylight and distrust what is done in the cover of darkness by the same state actors within the same continuum? It is without a doubt the new administration has been on a charm offensive to attract investors into the country and enhance access to regional and international markets. The President has probably been to many countries within his first month in office than any of his predecessors in recent history. All these missions have been premised on economic diplomacy with trade relations dominating in all his speeches. The logical question to ask now is: Can the new leadership project 'economic goodwill' externally while seemingly undermining the enabling business environment domestically? There is extensive evidence on the importance of the rule of law, strong institutions and good governance on economic growth and development. In an article on the Rule of Law and Economic Freedoms as key to National Welfare dated 9th August, 2021, the Institute of Economic Affairs (IEA) emphasises on the importance rules and institutions in national development. According this article, both parameters are fundamental to national welfare as measured within economic, social or political dividends. The arguments advanced by the institute are well demonstrated throughout economic history. For instance, Adam Smith emphasized on the need to guarantee property rights for economic growth while Daron Acemoglu argues for the case of strong institutions. The World Development Report of 2017 finds a strong relationship between incomes and rule of law among OECD countries. Fair principles Flora Mutahi, in an article published on the Kenya Association of Manufactures website, argues that rule of law not only allows for sound and fair economic principles to prevail, but also creates an environment for stable business growth. Referencing the 2016 Ibrahim Index for Governance Report, she posits that a decline in safety and rule of law among 33 African countries had significantly hurt businesses. The significance of the rule of law is underwriten by its recognition as goal number 16 of the Sustainable Development Goals. IEA concludes that in Kenya, it has been difficult to attain rule of law because formal law is implemented selectively. This is despite the country having one of the most robust constitutions in the world and extensive laws on virtually anything. It confounds me how the political elites continue to stretch the established constitutional order to suit their individual greed, the constraints established under Article 259 not withstanding. It is more perplexing how our leaders imagine they can cheat around the laws of economics; a feat no economy or human being has achieved throughout human civilisation. Even among our diverse Kenyan cultures, there were forms of binding agreements that sealed economic transactions or social engagements with a finality and a mark of honour. For instance, the Boranas have 'Baalanki' and Wakakamega, a sub-luhya tribe that inhabits areas of Ikolomani and Shinyalu have 'Khulia Muyayano', followed by a handshake as a mark of honour. Among the Kambas, we had 'Kithitu' that sealed economic and social transactions in absolute trust. In most developed nations, there are established customs, traditions and norms that go beyond laws that govern economic transactions and social interactions. Sadly, there is an article that has been trending on social media of 'a Country on the Edge' where dishonesty and open theft has been normalised as 'innovation and deal making'.....across our economic and social fabric. The sooner the 'Hustlers government' understands that the cardinal rule of economics is to say what you mean and mean what you say the better. Doublespeak, real or perceived, will not fly given the precarious economic realities facing households and absence of fiscal space at the macroeconomic level. Sustainable and inclusive economic growth is founded on laws, institutions and customs that guarantee property rights, sanctity of contracts and foster confidence to domestic and foreign investors. Beyond the rhetoric, investment decisions are based on the investor's assessment of the long-term stability of the economy and assurance for a smooth transfer of wealth. The noticeable meddling with the rule of law undermines not only economic productivity, but also creates resentment for honest work. The tipping point for any economy is when a significant majority thinks that honesty and merit does not pay. Looking ahead, those in authority, the religious community and the media bear the highest burden of getting the nation out of this slumber. Through universal suffrage, the masses have conferred power and authority to our elected leaders to advance our collective national interest. By right, the Holy Scriptures obligates the religious community to be the salt of our nation. Should the salt loose its saltiness, then the good Lord has reserved the supreme rights to spit it from His mouth. I shall infer the power of the media from Scriptures in Hosea 4:6... 'My people are destroyed for lack of knowledge'. The Constitution guarantees rights to access information and protects the freedom of the media. There is nobody endowed with more potent power and logistical capacity to organize, coordinate and disseminate information (good or bad) than the media in any economy. Thus, if the media fails in its civic obligations to facilitate the flow of the right, factual and balanced information within the society, then they inadvertently become collaborators in the oppression of the weak and vulnerable in society.

Perils of double-speak in the face of current precarious economic reality

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Perils of double-speak in the face of current precarious economic reality

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