Kenya’s
economy is in the doldrums and the ruling elite do not want to give Kenyans the
clear picture.
This is
despite the fact that Kenyans are losing jobs every day as companies close down
with few investors taking the place of the collapsed entities.
Despite the rosy
picture being painted by the government, there is a disquiet in several
quarters with even the Central Bank of Kenya (CBK) disagreeing with the
government’s take on the growing GDP.
Kenyans can’t eat GDP
On Monday
last week, CBK Governor Dr Patrick Njoroge said that despite the highly
publicised delivery by the Uhuru Kenyatta government, households are feeling
the touted gross domestic product (GDP) growth.
“It’s true
you have GDP numbers, but you can’t eat GDP. At the end of the day, what’s
needed is specific income, plus jobs,” he said.
And even
before Dr Njoroge’s sentiments faded, the World Bank released a report saying that
Kenya’s
ambitious Sh3 trillion budget was unrealistic going by the economic
projections.
While the
report was coming just months after the country unveiled its biggest ever
budget, the numbers cannot be lying. During the reading of the budget in June,
the then Treasury CS planned to spend Sh3 trillion against Sh1.8 trillion in
tax revenues.
This plan was
highly unrealistic in a country where citizens suffer double taxation.
The government’s
appetite for taxes was being fuelled by among others, several major
infrastructural developments in the first half of 2019 which were expected to transform
several facets of the country’s economy.
However,
going by the CBK’s stand, it meant that the developments were not impacting the
common man the way they should have.
The biggest
indictment of the government’s fiscal planning failures were summed up by Dr
Njoroge saying that it did not matter how big a number the GDP was as long as
it was not felt by those who need it most.
“If it is
just driven by infrastructure that doesn’t quite bring income to your
grandmother. She needs to care not because it is 6.5 per cent, but because of
what really hits her pocketbooks,” he added.
Among these
projects were roads that are expected to open up the country further, easing
congestion and providing access to the economic centres in the country.
Kenya’s
infrastructural advancement is thanks to retired President Mwai Kibaki’s
administration which opened up the sector by launching massive projects around
the country.
The Jubilee
government has just been taking the shine continuing with the projects
spearheaded by the country’s most impactful leadership so far.
Road Networks
in Urban Areas
By the time
he was leaving office in 2013, Kibaki’s administration had managed to improve
one of the messiest roads in Nairobi, Thika Road, by reducing congestion which
could last for hours.
Some of the
projects initiated during his tenure are still underway.
The Kenya
Urban Roads Authority (KURA), is expanding the Eastern and Northern bypasses
from two lanes to four lanes. This will open up the eastern and northern areas
of Nairobi which have so far been affected by heavy traffic congestions.
Construction
of the 16.7 KM Western Bypass commenced in January.
The bypass is
being built by China Road and Bridge Corporation at an estimated cost of Kshs
17 billion. It will run from Gitaru to Ruaka on the Northern Bypass.
The Waiyaki
Way-Red Hill dual carriageway opened in May this year. The 5 KM link road,
which links Waiyaki Way to Limuru Road, passes through major residential areas
such as Kyuna, Spring Valley, Nyari, Kitisuru and Peponi.
It was aimed
at reducing traffic congestion and improve accessibility to the areas it
traverses.
To boost
shipping in the region, several infrastructure projects commenced in Lamu
County.
One of the
projects is the 15 KM, Kshss 1.1 billion Mokowe Urban Road in the county which
is to be completed in the second half of 2019.
The 135 KM
Lamu-Garsen Road, costing around Kshs 10.8 billion, was contracted to H-Young
Company and is also expected to be completed in the second half of 2019.
Construction
of the 530-KM Lamu-Garissa-Isiolo Road, costing Kshs 60 billion, begun in
January.
But, will these projects transform Kenya’s dwindling economy and bring back the hope and optimism Kenyans have running their day to day affairs?
The SGR Mess
The Standard
Gauge Railway (SGR) has been a sore thumb for the government which is at pains
to convince Kenyans to use it for freighting.
In October, protests
erupted against a government directive to importers that they transport all
containers headed to Nairobi using the SGR.
In the
protests were some MPs, truck drivers and activists who said they would continue
with the demos every Monday until the government rescinded the directive.
In desperation
for numbers to make economic sense, the government had suspended the directive
but it was being implemented nonetheless.
Mvita MP
Abdulswamad Nassir who joined the protestors said that on paper, the policy was
rescinded but being implemented on the ground which was a contradiction.
In August, Transport
Cabinet Secretary James Macharia defended the directive saying that ferrying
cargo through the SGR was much cheaper than using roads.
The order
issued in August stated: “All imported cargo for delivery to Nairobi and the
hinterland shall be conveyed by Standard Gauge Railway (SGR) and cleared at the
Inland Container Depot – Nairobi.”
Macharia who
has courted controversy in ever ministry he has headed however told the Parliamentary
Committee on Transport that the order had been suspended to allow for more
consultations.
For a government that is used to bulldozing its way without public participation, will all the hyped projects-some of which have collapsed- improve the lot for a majority of Kenyans?
Read >> American Companies Opening in Kenya Renew Hope for Economy
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