Narok Senator Ledama OleKina has opined on why the Kenyan economy is struggling.
In his X account, Ledama attributed Kenya's economic struggles to the government's reluctance to cap interest rates and the unpredictability of taxation policies.
He pointed out that the current interbank market interest rate is at 12 per cent with government Treasury Bills at 18 per cent, resulting in high interest rates for ordinary citizens.
"So definitely for a local Wanjiku the interest rate must be a minimum of 20 per cent." he said.
OleKina compared the situation to a pilot intentionally crashing a plane and emphasized the need for a serious conversation about managing interest rates.
Additionally, he criticized the constant introduction of new taxes and levies, calling for predictability in taxation policies for the sake of the economy.
"Taxation must be predictable:- we cannot be waking up everyday with new taxes , levy’s , rates you name it … this is killing our economy! We must have a serious conversation about interest rates dear Kenyans we must!"
President William Ruto, in his adress of the State of the Nation, attributed the effects of the Covid-19 pandemic, geopolitics and prolonged drought to the shambling economy of the country.
The head of state said the global supply chain disruptions significantly raised the inflation and interest rate, which affected the economy.
"Low agricultural investment and prolonged drought led to food shortage making Kenya a net importer of food in a volatile international market," he said.
"The Covid-19 pandemic, coupled with geopolitical conflict significantly raised the interest rate."
Ruto added that as the harsh conditions arose, the Kenya Kwanza government was voted in, being entrusted to generate effective solutions to immediate problems.
