Kenya’s high cost of living is a complex issue that necessitates a multifaceted approach. The high cost of living is exemplified by the high costs of necessities like food, housing, and healthcare, among others. As a result, there have been decreases in economic activity, job losses, and inflation. However, Kenya can lower its high cost of living and raise the standard of living for its people by using the right strategies and interventions.
Promoting local production of goods and services is one practical strategy Kenya can use. This will lessen the reliance on imported goods, which are frequently expensive due to taxes and other tariffs. By providing incentives like tax breaks, subsidies, and credit access, the government can assist local producers. The government can also encourage people to buy locally produced goods. This can be accomplished through campaigns, awareness programs, and education on the advantages of purchasing locally-produced goods.
Increased investment in key sectors such as agriculture, healthcare, and education is another practical strategy. This will increase employment, boost productivity, and lower the cost of basic commodities. Investing in agriculture, for example, will increase food production, lowering food prices. Furthermore, investing in healthcare will lower the cost of medical care, whereas investing in education will improve educational quality and increase job opportunities for graduates.
For instance, Singapore has made education and training investments to upgrade the skills of its workforce, which has increased productivity and competitiveness in the market. For its citizens, this has resulted in higher wages and better job opportunities, raising their standard of living.
The government can lower living expenses by enacting laws that encourage accountability and transparency. A significant factor in the high cost of living is corruption, which causes inefficiencies, resource waste, and higher costs. The judiciary, anti-corruption organizations, and auditor general office are a few institutions the government can strengthen to combat corruption. The government can also encourage transparency by making information like budget data, procurement records, and audit reports easily accessible to the general public.
To help combat corruption and resource waste, the government should put policies in place that encourage accountability and transparency. To ensure that public resources are utilized effectively, strict rules and procedures should be established for procurement and public finance management.
A policy should be put in place by the government to keep prices stable and control inflation. To regulate the nation’s monetary policy and manage the exchange rate, the government could set up a monetary authority. This would help to prevent inflation and guarantee price stability.
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Dr. Mary Mugo
Strategy, Leadership, Team Development, and Governance Consultant.