Since the Kenya Kwanza administration took power, most Kenyans have been grappling with the high cost of living. Whether one works in the formal or informal sector, we can all feel the heat.
Although the country was not doing well economically before the 2022 general elections due to a prolonged drought in the same year, after President William Ruto clinched the presidency seat, things moved from bad to worse.
The Kenya shilling started depreciating against major trading currencies. Due to the Russia-Ukraine war, the global supply of foodstuff items such as cooking oil was disrupted, further increasing the cost of living.
Despite these challenges, the government can still take several measures to lower the high cost of living. Below are some helpful measures the government can undertake to mitigate this situation today.
A person holding kenyan money
1. The Government Should Lower Taxes on Various Basic Commodities
One factor that has hurt the budget of many Kenyan households is the high prices of basic commodities. For instance, if the Finance Bill 2024 is gazetted, consumers will likely have to part with Ksh.160 more for every liter of edible oil. This will become a reality once the 25% on exercise duty proposal on both refined and raw cooking is unamended.
If this happens, the price of meals, even in hotels and roadside sellers, will increase significantly, further hurting the common man on the street.
Other essential commodities that might witness a sharp rise in cost include diapers, bread, etc. If the government is interested in lowering the already high cost of living, it should lower or exempt taxes on most of these basic commodities.
2. The Government Should Increase Per Capita Income
With little or no income, most people cannot afford the basic necessities of life. For this reason, the government should aim to increase per capita income so that most people can afford to pay for different commodities and bills even when inflation has increased. One way to do this is by creating employment opportunities for young people.
Additionally, the government should be an enabler of business so that those in this sector can make more profits and afford a decent lifestyle.
Policies that encourage people to immerse themselves in entrepreneurship should be enhanced so that those who do not have a formal job, can venture into this field and generate an income. By doing this, joblessness will be a thing of the past and the economy will grow tremendously.
A team of entrepreneurs
3. The Government Should Continue Lowering the Cost of Farm Inputs
Agriculture is the backbone of the Kenyan economy. For this reason, the government is making efforts to ensure that farmers purchase farm inputs such as fertilizer at a relatively lower price by offering the Free Fertilizer Subsidy Program.
In addition to this program, the government should make other farm inputs affordable so that farmers can produce more on their farms.
This will not only increase food security in the country but also make food items more affordable. Since most Kenyan households spend about 60% on food items, this amount will reduce, thereby enabling them to save more and cater for other expenses.
Final Words
Like other countries, Kenya has faced tough economic challenges in the past. Although these challenges have contributed significantly to the current high cost of living, implementing the ideas mentioned above can help make Kenyans’ lives easier.
In the coming days, we hope the government will put into practice those ideas so that Kenyans’ disposable income can increase and lower the cost of living.
