No respite for poor hustlers as it emerges that life is about to get even more difficult under RUTO – Look!

 

Thursday, November 3, 2022 – Kenyans will continue suffering from economic hardships despite President William Ruto settling in office and embarking on his economic recovery plan.

This is after it emerged that his bottom-up economic recovery plans will not work, at least not for now.

According to the Parliamentary Budget Office forecast for 2022-2023, Ruto’s government is steering towards a grim future, especially in lowering the prices of basic commodities and services.

The Parliamentary Budget Office forecast indicated that fuel prices, Unga, transport costs, acquiring loans and even building materials would increase towards the end of the year.

According to the report, inflationary pressures are likely to remain elevated for the rest of the year. This is due to the Russia-Ukraine conflict, which will further lead to supply chain disruptions resulting in higher importation costs for fuel in addition to other crucial products such as fertiliser, wheat, edible oils, iron and steel. 

Deputy President Rigathi Gachagua indicated that former President Uhuru Kenyatta left the country’s economy in a dilapidated state. But according to the report, Ruto’s plan to revive it is set to be slowed down by the weakening of the Kenya Shilling against the US dollar.

Kenyans may access loans at a higher rate after the Monetary Policy Committee (MPC) signalled a gradual increase in Central Bank Rate (CBR).

The report also indicated that the scaling down of the fuel subsidy will increase the cost of energy leading to higher input and production costs which will invariably be passed on to the consumer. 

This will also affect the transportation cost if immediate intervention plans will not be unveiled by President Ruto’s government.

Parliamentary Budget Office estimated that inflation will average 7.6 per cent for the year 2022. Higher inflation is likely to erode consumers’ purchasing power, leading to a slowdown in consumption and overall economic activity. 

The impact will be disproportionately felt among lower-income earners, who may then be pushed further into poverty.