Currently the most contentious topic of discussion among Kenyans has been the spiraling cost of living.The skyrocketing prices of basic commodities like maize flour (unga) and milk is insanely out of this world,some of these prices defy economic fundamentals and beat logic.With the campaign session gathering momentum,this not pleasing situation has provided political fodder for various political parties. It has become an arena where everyone is playing the blame game.The opposition blames the government and in-turn the government blames the opposition,it’s a never ending roller coaster.
Kenya is currently facing tailwinds that are likely to dampen the GDP growth in 2017.The ongoing drought that is resulting to crop failure and countless deaths of livestock is not making the situation any better.Hydro-power being the cheapest source of energy is massively affected by the poor rains thus the escalating energy costs.The high energy costs are spilling over to other sectors in the economy .On the other hand Kenya as a net oil importer is highly affected by the rise in oil prices globally ,it goes without saying the dampening effect it has on the Kenyan economy .
According to economists ,the continuous rise in food prices ,the increased number of companies issuing profit warnings and the increasing redundancies in the financial sector is enough proof of the economy’s poor performance.Kenya’s GDP growth rate is forecast to decelerate to 5.5% in 2017 from 5.8% in 2016 according to the World Bank Kenya economic update.
I think at the moment who did what should be left on the side lines and the unscrupulous people responsible should be held accountable.The real issue that we should all be discussing is how to solve the problem at hand and ensure that Kenya does not face such situations in the future.
Developing irrigation schemes to reduce dependence on rain-fed agriculture and embracing all food types will ensure food security in this country.Preservation of water catchment areas ,harvesting rainwater and diversifying sources of electricity is the way to go so as to curb the effects of high energy costs.