Treasury is emerging as the missing link in the quest for a better livelihood for a huge fraction of Kenyans and accelerated economic growth through bureaucratic red tape.
The slow disbursement of funds to support the much-hyped stimulus package is pulling the country back.
The Sh22 billion stimulus package announced in the June Budget was aimed at putting money into pockets of the most vulnerable groups and prop up the private sector by raising the overall consumers' purchasing power.
Subdued consumer demand for goods and services has slackened the capacity of many Kenyan firms to boost production that will offer room for fresh hiring and put reduce pace of layoffs.
Nearly half way through, the financial year, the stimulus plan is yet to be rolled out, raising questions on whether the country had an economic incentive in the first place.
For instance, in the US, the speedy flow of stimulus funds helped to boost consumers spending, which was a key driver of US economy's third quarter expansion of 3.5 per cent, probably ending a recession that began in December 2007.
Treasury was looking at prescribing a similar dose to Kenya, but bureaucratic red tape brought home by strict procurement processes has scuttled this target.
We pray that mutual suspicion among senior public officers allied to the two factions of the Coalition government is not at play here.
But the need to jumpstart Kenya's under-performing economy is of utmost importance, particularly at a time when bad weather has impacted negatively on the agricultural sector -- the biggest employer and contributor to the country's wealth.
The erratic rainfall witnessed in recent weeks has diminished hopes we would see recovery this year or early 2010.
This puts the stimulus plan as the best option to kick-start the economy.
Official data suggest that the economy is showing little signs of recovery with a 2.1 per cent growth in the second quarter compared with a 2.2 per cent increase in similar quarter in 2008, making it the slowest quarter two growth since 2003 when the economy grew at 0.4 per cent.
This poor show has roped in more Kenyans into the poverty bracket at a time the super wealthy segment has tightened their grip on the country's resources.
Latest figures from the UN suggest that a tenth of Kenyans are holding 38 per cent of the country's total wealth.
This offers fertile ground for a social strife.
Therefore, we urge for a speedy disbursement of the funds to see the crucial projects off the starting blocks.
Comments Post a comment