The national treasury building. FILE PHOTO | NMG
Summary
- The survey by audit firm KPMG found that business leaders do not see robust recovery prospects and therefore do not expect their businesses to expand by any margins that would require additional staff.
- The underlying fact is that the Kenyan economy is still reeling from the effects of last year’s prolonged drought and the bruising political battle that characterised the election.
- The import of this is that although the truce between the main political camps has restored some sense of calm, the ripple effects abound.
Findings that East Africa’s business leaders see little growth
prospects in the coming three years should worry all top bureaucrats in
charge of economic policy at the Treasury.
The survey
by audit firm KPMG found that business leaders do not see robust
recovery prospects and therefore do not expect their businesses to
expand by any margins that would require additional staff.
The
underlying fact is that the Kenyan economy is still reeling from the
effects of last year’s prolonged drought and the bruising political
battle that characterised the election. The import of this is that
although the truce between the main political camps has restored some
sense of calm, the ripple effects abound.
Structural
and policy challenges, including the escalation of taxation in the past
four years, the slowdown in agricultural productivity, the continued
rise in the price of oil and most importantly, the wanton stealing of
public funds are all working to suffocate growth prospects.
Which makes one wonder how these challenges, most of which arise
from within government, continue to mount despite the quarterly
meetings between the Presidency and the private sector. Businesses are
basically the engine that runs any economy. When they grow, they pay
more taxes and employ more people making it imperative that the State
addresses their concerns. Nothing less will do.
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