By Yvette Obunga
Worth Noting:
- Crime rate has been on the rise as a result of poverty. Some young people end up dropping out of school due to lack of school fees. They become idle and barrier to the entire society. The only option they have is to engage themselves in criminal and immoral activities making neighborhoods to become insecure.
- An increase in fuel prices has impacted the country in a negative way. Transport cost is becoming unaffordable and this is the main cause in rising of prices of goods and services.
- It’s high time that the government need to work tirelessly in implementing ways that can help in reducing inflation. The government should implement monetary policies like increasing interest rates to reduce demand in the economy, leading to lower economic growth and lower inflation.
The Corona virus pandemic and the War in Ukraine has put it’s thumb on the economic scale of our Country. The main driver of inflation still remains murky to many people.
According to the statistical research revealed by the Central Bank of Kenya, annual inflation rate in Kenya accelerated to 7.1% in May of 2022, from 6.5% in the previous month. It was the highest reading since February of 2020, as the cost of food products continued to rise sharply (12.4% vs 12.2% in April), partly affected by the war in Ukraine.
Additional upward pressure came from costs of housing & utilities (6% vs 5.5%), transport (6.4% vs 6.9%) and furnishings (7.9% vs 7.2%). A remarkable increase in fuel and oil prices has also contributed to an increase in inflation rate.
Majority of the people in the country have been affected adversely especially those who depend on jobs that generate low income. Purchasing power has also declined as a result as many people are not able to afford current prices of goods, products or services. It has made it difficult for most business enterprises to thrive. This in turn affects the economic growth of the country.
Poverty has increased in Kenya since the onset of pandemic and the War in Ukraine. Many people living in urban areas are not able to afford the cost of living. Recently many people have not been able even to pay rent due to unemployment. Cost of housing is becoming unaffordable.
Crime rate has been on the rise as a result of poverty. Some young people end up dropping out of school due to lack of school fees. They become idle and barrier to the entire society. The only option they have is to engage themselves in criminal and immoral activities making neighborhoods to become insecure.
An increase in fuel prices has impacted the country in a negative way. Transport cost is becoming unaffordable and this is the main cause in rising of prices of goods and services.
It’s high time that the government need to work tirelessly in implementing ways that can help in reducing inflation. The government should implement monetary policies like increasing interest rates to reduce demand in the economy, leading to lower economic growth and lower inflation.
Money supply can also be controlled because there is a close link between money supply and the rate of inflammation. Controlling money supply can control inflation. Supply-side policies can be implemented policies control inflation. Other policies like fiscal can help in controlling higher rate of income tax to reduce spending, demand and inflationary pressures.
As we are almost heading to the general elections period, political leaders and aspiring politicians for various political posts should base their ideas and manifestos on ways that can help solve current problems like inflation in the country. Greatest among all, they should preach peace and unity.
, journalism student Masaai Mara University.
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