Growth rate will be a mirage unless state changes policies


The latest report by the World Bank that Kenya’s economic growth could be the highest in sub-Saharan Africa (SSA) over the next 15 years should be taken with a pinch of salt.

As the saying goes, vision without action is daydreaming.

Therefore, the government must address the worrisome issues like debt-to-GDP ratio, the ballooning public wage bill, the unhealthy balance of trade and the obstinate problem of corruption.

As we speak, teachers have suspended their month-long strike.

Over the years, they have been agitating for a salary increment, hence exacerbating a bloated public wage bill.

Since January, the Kenya shilling has been performing dismally against the dollar and other international currencies.

The shilling’s free fall has been attributed to heavy borrowing and the fiscal deficit in the balance of trade.

Kenya has borrowed Sh104 billion in eight months, which will be repaid until 2059.

Worse, improper and wasteful spending of taxpayers’ money by both national and county governments continue to hit the headlines.

The fat cats are rarely prosecuted for maladroit financial mismanagement. For Kenya to sustain the economic growth, it must manage its resources prudently and shun graft.