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<\/a><\/p>\n8 December 2011<\/p>\n
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editorial<\/p>\n
The recent spate of strikes and threats of industrial action is a symptom of an ailing economy in which the majority of Kenyans can no longer makes ends meet.<\/p>\n
Ranging from university lecturers agitating for a three-fold salary increase, doctors who are demanding a similar percentage increase, to flower farm workers who are only asking for their daily allowance to equal the retail price of a kilogramme of sugar, all this underlines the urgency with which the government should act to calm the situation.<\/p>\n
There is, however, little to show that the government has any idea of what to do.<\/p>\n
Some economists support the recent increase in interest rates, saying the move will help mop up of excess liquidity from the economy and reduce inflation while strengthening the shilling’s purchasing power.<\/p>\n
Others are opining that a two-year wage-freeze by all employers, especially the government will do the trick. But of course it won’t. That way, the strikes are bound to increase in number.<\/p>\n
However, there is a more sensible way out of the crisis.<\/p>\n
In the short term, the government needs to look for ways to lower energy prices, both at wholesale and retail levels. The ripple effect should ease pressure on consumers.<\/p>\n
In the long term, it needs to re-evaluate its policies with the aim of addressing distribution to avoid situations where one region is reporting food shortages while another is reporting a glut.<\/p>\n
It also needs to fast-track the Public Private Partnership Bill that was approved by the Cabinet on Tuesday to make it easy for the private sector to participate in national development.<\/p>\n
This will ease the need for the government to borrow to finance development but rather partner with private sector to offer services through equity injection rather than debt.<\/p>\n
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