This archive report was first published on 27 December 2019.
As Kenyans observe a muted holiday season, it is clear that the economy needs a boost. The removal of the interest rate cap is a step in the right direction, but it is not enough to stimulate the economy.
According to the Business Daily, the single largest sector of the economy is agriculture, accounting for at least a quarter of the gross domestic product. Stimulating this sector is a sure way to ensure money reaches the majority of the population. This includes providing affordable inputs such as seeds and fertilisers, and ensuring that post-harvest losses are minimised.
Extension officers employed by county governments should provide necessary advice to farmers. Additionally, the government should focus on paying pending bills, which have been delayed for as long as three years. The outstanding amount is now in excess of Sh100 billion, which would amount to an immediate stimulation of the economy if paid.
The national government also has pending bills in billions of shillings. If the government can raise the money by going to the financial markets and offering good interest rates, it should do so quickly and allocate the county governments their share, with the understanding that it will pay pending bills just as it settles similar bills on its own part.
