The recent reorganisation of Government couldn’t have come at a better time. In fact, to many Kenyans it heralds a new beginning and probably confirms that the first 100 days of this regime delivered zero on the lofty promises they made during the campaigns. Not a crisis in any way because that was expected. But with the reorganisation and clarity of roles, the cabinet secretaries and the top crop of Deputy President Rigathi Gachagua, Musalia Mudavadi and the house leadership have to actualize the Plan and start inspiring confidence in the market, the economy and among Kenyans. This is one team that does not have the luxury of straddling the corridors of power and wield big titles. So far it appears the strategy to squeeze the life out of existing companies and the 3 million taxpayers and that is not sustainable, and neither will it help the current regime politically. Hustlers enthroned this regime to power and hustlers can be ruthless if some of the promises that resonated with them are not delivered.
Challenging circumstances occasioned by public finance problems, inflation, high forex rates that worsens our trade balance, inflation and run-away high cost of goods after the elimination of subsidies speak to a deteriorating economic environment that is likely to hit the citizenry hard and hustlers hardest. Treasury CS has already made this clear, with a statement on the bleak economic landscape that is further exacerbated by excessive government borrowing locally, which many don’t know or seem to have a problem with but portends serious economic implications on access to credit by entrepreneurs. Already banks are adjusting their interest rates on exiting loans and that means that for the folks servicing loans the take home is likely to reduce beginning January 2023. Interesting because from the festive season, Kenyans are confronted with the expected challenges of finance intense responsibility of taking their kids back to school and now a relatively high cost of credit.
Granted if there are no serious inflows of FDI to grow the informal and formal sector and expand the tax net from the paltry 3 million formal direct taxpayers, then most of the good intentions recited in political and religious spaces will not help this country. The increased taxation that is pushing the cost of electricity up and poised to eat into the dividends of the same people in the tax bracket will soon hit hard. Well, the plan seems to be anchored on increased taxation and it does appear anything taxable will be taxed and where possible Kenyans will be taxed even more. All good if the service delivery provides for an enabling environment for businesses to thrive. But with a hemorrhaging public finance system, aided and abetted by endemic and political corruption the team unveiled by the president must be at the best of their wits to stop looting of public funds. This they must do even if it means bringing the thieves amongst themselves, regardless of position and political connections. In fact, they owe it to Kenyans because all the honchos in the executive are answerable to parliament. The president has made this clear. A few critics discern some red flags, but it is incumbent upon cabinet secretaries to understand that it is between them and the people otherwise they will throw us under the bus if all these are just political charades preparing us for slaughter as the looters loot.
The president has come out clearly to defend the independence of elected leaders in discharging their mandates, dare I say, as may be beneficial to the citizenry. Well, that might have been within the context of the war of words and clout between Nairobi Governor and the Deputy President Rigathi Gachagua, but it does situate the work ahead for the team tasked with delivering the plan, in perspective. Truth be told it does appear that the president will do the talking and probably over promise, but it is the team he unveiled in his reorganization of government that will have to forget politics and get to work. Already deputy president seem to be endearing himself to the right voting block by promoting, nay, protecting the interest of his people with some echoes of Mt Kenya hegemony. How that helps Governor Sakaja’s quest to make Nairobi work and is anyone’s guess.
Nevertheless, the unveiling of the team to deliver the plan did come with some interesting political undertones and some good tensions. Looking at the responsibilities given to the Deputy President and the Chief CS, it is no brainer to discern a masterstroke by the president. On paper Riggy G is the second in command. However, an analysis of the delivery of the plan and the responsibilities assigned to the two leaves no doubt as to where the bulk of the mandate is bestowed. Undoubtedly, the president’s wit is seen in how he has succeeded in clearly defining the roles and mandate and at the same time infuse a tinge of tension that puts both his deputy and the Chief CS on the edge. My guess is that they will have so much to do and will resort to using their responsibilities and their deliverables to win the favour of both the people and the president. That is where the president’s masterstroke is discerned. Whoever does a great job delivering the coalitions promises will win the favour of the public and the president will be well poised to go with this winner. As the appointing authority, the president will be in a well poised position to make sound political decisions post-delivery of the plan. However, that will not be a walk in the pack given the economic gloom and now that the president has given directive that all the cabinet secretaries will be answerable to parliament, they must be wary of political corruption from the top, sideways and everywhere.
