The Politics of Kenya’s Cost of Living Crisis

In this episode, Dr. Ken Opalo, a Georgetown University Professor provides a comprehensive analysis of Kenya's cost-of-living crisis. We unpack the underlying factors, assess government responses, and examine potential outcomes of current economic policies aimed at easing the cost of living.

On the political front, blame games persist, with the opposition (Azimio) pointing fingers at the government. The Kenya Kwanza government on the other hand blames the global economic environment and the previous regime.

We also delve into Kenya Kwanza's fiscal policies, which prioritize a populist agenda under the Bottom-Up Economic Transformation (BETA). These policies include the introduction of a Housing Levy and changes to income tax and VAT. In agriculture, the focus is on subsidizing production rather than consumption, with reductions in the cost of fertilizers and importation of edible oils and food commodities. Protests against some of these policies and increased taxation have persisted since the introduction of the Finance Bill.

So, what is the way forward? Our guest underscores the need for effective governance and prudent economic policies to address the cost-of-living crisis and its associated challenges.

You can read more about Dr. Ken Opalo's work by visiting the following link: https://kenopalo.substack.com/p/understanding-the-economic-foundations