Mr President: keep your eye on the ball..the people
They say ‘desperate times call for desperate measures’! Kenya is not yet desperate and is only calling for exceptional treatment, that will eventually help rediscover its true level of economic well-being amongst other nations. In a period of such rare crisis as is currently gripping the entire globe, leaders find themselves on the edge, as it is a moment of self-preservation and not one single nation is able to stand out and claim a higher pedestal of authority, or offer assistance to other nations. It is every country for itself and ‘God for us all’.
History in the making
Nations of the world are at a turning point. We are at a critical juncture. Different countries will go through the prevailing health crisis and bear varying experiences before eventually finding themselves emerge at different destinations at different times. The ability and agility of leadership at the top, will invariably determine the extent of impact and effects occasioned by the crisis, as well as the speed and direction of recovery. The massive scarcity of goods especially foodstuffs, the massive loss of jobs and closure of businesses, will hit the economy hard and prospects for recovery and growth will be dimmed.
The great depression of 1929 and the Eurozone financial crisis of 2008 will look like child play.
For whatever it is worth in the long run, the President deserves a thumbs up for boldly coming out and standing on the right side of history! Forget about higher growth rates of GDP, sound macro-economic fundamentals and mega investment projects! True leadership is about offering real solutions to human beings NOW! Especially when faced with a crisis of the prevailing magnitude. History is in the making right now- in Kenya and the world, and current leaders of the world’s nations will each have their space in history books. Human beings are making their hard choices now; under conditions of scarcity and uncertainty and must act in the best interests of their families and their future. These are truly challenging times for a nation’s socio-economic and political institutions.
The COVID-19 crisis has resulted in major disruptions in the running of public and private sectors and can be a double-edged sword that will certainly affect the trajectory of the country.
Crisp fiscal policies
The bold steps taken by the President to cushion the millions of hardworking Kenyans who now cannot go about their normal duties, cannot go unrecognised; thanks to the all-encompassing, “invisible enemy”. The various tax and expenditure measures prescribed, will go a long way in mending the holes in the social safety nets, compensating those currently forced out of gainful activities and jobs, as well as reducing the weight of overall taxation that in effect leads to an increase in money in the hands of Kenyans.
These are the microeconomic decisions and responses that relieve the burden of suffering for majority of Kenyans, while also removing unnecessary impediments put in their way by uncaring banks and other state agencies; that earns the President bonga points!
For the record, it must be noted that even during periods of low production or recessionary periods, the human consumption of essential goods and services invariably remains constant.
The impact of the current health crisis will have far-reaching implications in nearly all spheres of the human experience and a truly responsible government must prioritize addressing the immediate concerns and ‘felt’ needs of the people. We shall get back to the Big Four and other mega capital projects after we have calmed the emotions and restored the faith of Kenyans. They must be able to see and believe in the dictum that; united, we can surmount any challenge. The people must be supported by enhanced public spending and other targeted incentives to stem discord.
Biting inequality
On the other hand, the President must hasten to grab this God-given opportunity and go a step further. The level of inequality between the rich and their poor neighbors is beyond comprehension. A report is annually published of an increased rate of growth of the economy, yet the poor continue to remain poor.
This health crisis that appears to make all of us equal in ‘its eyes’ should provide an opportunity for policy and legislative proposals to ensure that the prescribed salary cuts as well as the tax relief given to those earning below ksh 25,000 (240USD) remain as such into the future. Kenya must be willing to become a nation that is more caring and more responsive to the plight of its poorer population.
The President must lead Kenyans in making a paradigm shift towards a fairer and more equal society where everybody is happy to belong and the only difference owes to their effort, ability and competencies. This crisis must open the way for breaking the cycle of tribalism, nepotism, impunity and graft and lead to emergence of a more inclusive, united society of equal human beings sharing equal rights.
There is certainly no moral justification for the obnoxious remuneration variances currently obtained in both the public and private sectors, which cannot be explained by the labor inputs of the different cadres engaged in the workplace. The renowned father of modern economics, Adam Smith noted, that as long as the gatekeepers run on empty, those who occupy the palace can never be at ease in their sleep.
Also published in the Daily Nation (Saturday, 28th March, 2020), Page 16
Author: Elias P. Mbau
Hon. Elias P. Mbau (PhD)
Institute of Budget & Devolution Studies
Public Finance Expert
#thebudgetguru
PUBLICATIONS
Mbau, E P, Iraya, C. M., Mirie, M., & Njihia, J. M. (2020). An Empirical Study on the Moderating Effect of Public Governance on the Relationship Between Fiscal Decentralization and Performance of County Governments in Kenya. 9(2), 37–58. Retrieved from https://www.scienpress.com/journal_focus.asp?main_id=69&Sub_id=IV&Issue=1645247
Mbau, Elias Peter, Iraya, C., Mwangi, M., & Njihia, J. (2019). An Assessment of the Effect of Fiscal Decentralisation on Performance of County Governments in Kenya. 15(25), 109–129. https://doi.org/10.19044/esj.2019.v15n25p109
