Why Kenyans should brace for tougher economic times - Experts

Kenyans may have to continue persevering through the harsh economic challenges a bit longer before a substantive change is seen, economic experts now say.

Speaking during Citizen TV’s News Night Show on Tuesday, Central Banker, Mohamed Wehliye opined that Kenyans would have to brace themselves for tougher times since the current economic crisis may not come to an end any time soon.

“I don’t think it's going to be anytime soon… I think the new administration has to fix a lot of things before we can get any relief,” Wehliye said.

“They have inherited a big mess…Kenyans are looking for solutions, and for those of us who understand, who also know the true picture, we know it is not going to happen overnight.”

He cited the country’s public debt as the core hindrance to development arguing that President William Ruto’s government would have to brave through the situation and cultivate more patience so as to ensure they fulfil their promises to Kenyans.

Wehliye reiterated that if the new government would not be careful enough, then they would only be able to pay salaries and not complete any development project during their tenure.

“We have a big problem when it comes to debt, the fiscal side is in a mess, and we are not able to do anything other than to pay our debt and maybe salaries. We have big phase items and have been borrowing to finance some of those items,” he explained.

“The previous administration has been trying to fight over the first two years. As every day passes by, things are getting worse in terms of the debt situation because we have a problem with the exchange rate, the interests’ rates going up…we are in a debt trap and unless they come up with a solution for that debt trap there is no physical space."

He added: “They cannot do anything they have promised to do, and if they are lucky, they will only be able to pay their bills. And from the look of how they have started, I think they appreciate the position we are in.”

Senior Economic lecturer at the University of Nairobi (UoN) Dr Mary Mbithi echoed Wehliye’s sentiments underlining that for the country to see a drastic change in the economy, it would not be spontaneous but will take some time.

According to Dr Mbithi, most of the challenges impacting the economy go beyond the country’s ability to control since they are external factors such as drought and high cost of fuel across the globe.

“We are not likely to see a change in a short period of time because the other factors that are causing the challenges, we see in the economy are beyond Kenya, they are external factors. We have unemployment, drought…the cost of food is going up,” Dr Mbithi noted.

“She added: “International factors, leading to the high cost of foods combined with the devaluation of the Kenyan shilling. All that means that the cost of living is going up, cost of fuel and imports. Even if the current government is to try and address those issues, it may take some time before we see a real change.”