Kenya ’ s Biggest Risks In 2024
Governance
By Walter Nyabundi
In 2023 , the effects of Kenya Kwanza ’ s economic policies left many Kenyan households reeling and put basic necessities beyond their reach . Kenyans also witnessed new taxes and levies decreed with amazing alacrity . Opposition led street protests against the rising cost of living and perceived electoral malpractices in 2022 turned deadly as the government brutally cracked down on protestors and politicians thought to be sponsoring the protests . The subsequent National Dialogue process that brought the government and the Azimio la Umoja One Kenya coalition to the negotiating table promised so much but ended up shrouded in controversy . The country continued to feel the effects of climate change as the El Nino rains left destruction and chaos in their wake .
As 2024 unfolds , there are number of issues that will shape public discourse in the days ahead . The economy will obviously be at the foremost of most people ’ s minds . Governance , the shifting political landscape , crime and the environment will also be matters of great interest . Let ’ s look at the issues a bit more closely :
# 1 : The Economy
In December , Kenya ' s Treasury revised down its economic growth forecast to 5.5 percent in 2024 from 6 percent it had projected earlier , citing ‘‘ unpredictable weather which could affect output from the agricultural sector ’’. Professor Njuguna Ndung ' u , the Cabinet Secretary for the National Treasury and Economic Planning noted that the country ’ s economic growth will be underpinned by ‘‘ broad-based private sector growth , including the continued strong performance of the
Although the Constitution of Kenya 2010 grants independent constitutional office bearers the authority to hold governments responsible for their fiscal activities , it would appear that we still have some way to go before open government is completely entrenched in our public affairs .
service sector ’’. While the government ’ s economic forecast is couched in language that makes it seem as if the economy is rebounding , one would be forgiven for being dismayed at its sophistry . The truth is salary cuts , unemployment , high energy prices , as well as increased transport and food costs continue to make life unbearable for many households . Comprehensive legislative and administrative steps need to be taken to ensure that the prices of basic commodities , services and utilities come down significantly .
# 2 : Debt Default
Public debt is a way for countries to raise money for development quickly . Raising domestic revenue , improving the efficiency of spending , reducing corruption , and improving the business environment can also be considered but tend to take a lot of time and often require significant political goodwill . Responsible governments need to keep debt sustainable and ensure it does not jeopardize their growth and long-term stability . Unsustainable debt can lead to debt distress . This is when a country is unable to fulfill its financial obligations . Defaults can cause borrowing countries to lose market access and suffer higher borrowing costs , in addition to undermining economic growth and investment .
Kenya ' s current public debt stands at 63.6 billion dollars and there have been
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