Referendum calls raise political risk on fragile economy

Parliament in session. Cabinet secretaries will be expected to appear in parliament on Tuesdays between 10am and 12.30pm. PHOTO | FILE 

By Odhiambo Ramogi

In Summary

• I empathise with the Opposition that there is a need for them to remain relevant, define national agenda and mobilise their supporters around an idea. Yet the cost is too expensive.

I agree with the Opposition that the country has enormous challenges that we must talk about and resolve.

On the flipside, the response by the government that they are in power is to say the least irresponsible and dictatorial. It’s like a father reminding you he is your father whenever you share with him any difficulty in the home.

The cost of living has hit the roof, catapulted by the value added tax bill that the Jubilee government forced on the citizens for no apparent reason. Consequently, food and other basic commodities have become too expensive for an average Kenyan.

There is runaway insecurity in the country with increased terrorist attacks, robbery and unsolved murders, among others. The climax of the insecurity was when the president’s armoured vehicle was carjacked at gunpoint last week.

The government is right that terrorism is an international problem and we are in the league of nations that experience these attacks. However, the country is in agreement that we can do better in handling the terrorist threat.

Yet in all honesty, do these problems warrant a referendum?

Do we need to go through a national polling to address insecurity? Maybe not. In fact, the referendum seeks to transfer more resources to the counties. This means the government will have very few resources remaining at its disposal to be invested in security, which is its main role.

As we strengthen devolution, we forget that it is costly to maintain a double governance system of counties and a provincial administration the national government has refused to let go.

Counties are coming up with boards and parastatals as well and the more money there is, the more of these institutions will be erected to create jobs for loyal friends and relatives, many times without there being real need for them. The resultant effect will be more taxes and higher costs of living for the average citizen.

In the face of the devolution debate is the silent background of success being ignored. Uhuru’s government, like any other government has had their share of mistakes.

However, from the business standpoint, the government is delivering. The Huduma Centres are a success, clearance at our ports is faster, the Vision 2030 projects are on track courtesy of the Chinese input, infrastructure development continues.

We have problems yes, but we have progress too. Further, the Constitution states that at least 15 per cent of the last audited and approved national revenue should go to the counties.

The government has beaten that minimum twice and more resources are going to the counties than the law says. Indeed, there is visible progress in all the counties.

And so one wonders why we need a referendum at this time. I empathise with the Opposition that there is a need for them to remain relevant, define national agenda and mobilise their supporters around an idea. Yet the cost is too expensive.

The plebiscite will launch us into an election mode all over again. Inflation will shoot high because of the campaign money dished around, the cost of living will indeed get worse and a country in election mode is susceptible to more insecurity. These will amplify political risk and dissuade foreign direct investments that we badly need