Agency. Christine Naswa, a mother of five who sells vegetables on a busy street in Nairobi, expressed deep concern about the country’s economic situation.
“The situation in the country is very weak now. There are no shoppers in the market,” said 40-year-old Naswa. The smell of the ginger he was selling mixed with the smoke of the motor and spread far and wide. “It is difficult to feed the children. The profit from selling goods is small. Sometimes there is no income,” she lamented.
Although the East African nation appears to be economically ahead of other countries in the region, there are many serious challenges within the country. At present, about 40 percent of the population lives below the poverty line. The rise in the prices of daily necessities has made life difficult. The lack of employment and frequent incidents of corruption have eroded the confidence of the people.
In June last year, there was a mass movement against the new tax bill proposed by the President. Although some taxes have been removed, the economic condition of the people is still fragile. Kenya’s economy is based on agriculture, service-oriented and tourism sectors. However, investment is necessary to achieve the goal of making the country a middle-income country. However, at present, the government is heavily dependent on foreign loans and cannot be spent on important sectors such as health and education to pay the interest on those loans.
On the other hand, the tax burden is largely in the formal sector, which is less than one-fifth in the total employment sector. “This year has been the toughest in our 36 years of business journey,” said a businessman who runs a shop in a business area in Nairobi. He kept his name secret after the shop was looted during the agitation.
“Within a few months of the formation of the new government, taxes were increased. But the results are nowhere to be seen,” he said.
Distrust and disappointment
According to political analysts, many of the promises made by President William Ruto to the people when he came to power have not been fulfilled.
“There is deep distrust of the government at the moment,” said Patricia Rodríguez, an analyst at the international analysis organization ‘Control Risk’.
“The people felt betrayed when Ruto, who came to power promising to improve the lives of ordinary people, decided to raise taxes,” he said.
According to international agencies, the government is obliged to collect revenue to meet the needs of the growing population. However, in the budget prepared for the next fiscal year, efforts have been made not to increase direct taxes so that there is no people’s movement again.
“Now the tax limit has been reached,” said Kwame Ovino, head of the finance research agency. “People can no longer accept the government’s opacity, unproductive debt burden and corruption,” he said.
According to many citizens, if corruption is brought under control, the situation in the country can improve. However, analysts believe that the problem is deeply rooted.
Some citizens are hoping for some improvement from the upcoming elections in 2027. However, based on past experiences, some people still seem disappointed. A businessman gave a short response, “We are always winning over the corrupt. ’
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