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Kenya: Why Kenya’s growth prospects remain modest

Rédaction Africa Links 24 with Daily Nation
Published on 2024-01-26 21:00:00

Kenya’s economic growth prospects are currently poor, and the recent “truce” between the three arms of state is expected to further dim those prospects. This truce enhances the executive’s dominance over the other arms, thereby narrowing the possibilities of stemming economic mismanagement.

The governance structure in Kenya, as framed in the Constitution, consists of checks and balances. The legislatures make laws, but the executive has to sign them. A two-thirds majority can overcome the executive’s veto, and courts can strike laws down if they offend the Constitution. Legislatures also oversee the executives at both levels of government and have the power to impeach them. This power has not been exercised in respect of a president but has been tested on governors.

The frequent charge in impeachment cases is the contravention of the Public Finance Management Act, which has disastrous consequences for the economy at the national level. Impeachment is a two-stage process, with accusations being tabled in the relevant assembly and then proceeding to the Senate if the assembly votes to impeach.

The recent meeting of the three arms of state saw the Chief Justice reportedly going to State House with a begging bowl, with the national executive agreeing to “give” the Judiciary more money to hire additional judicial officers. However, the Judiciary fund is a charge on the consolidated fund and should not be subject to appropriation by the national executive.

The Constitution gives the power to manage the consolidated fund to the National Assembly, but the current practice allows all arms of the state to dip into the fund at will. This uncontrolled access to funds by the national executive has led to high fiscal deficits and increased debt service and interest rates.

The recent borrowing of nearly one billion USD from the IMF is part of efforts to address the financial challenges, but this borrowing would not have been necessary if the government had not increased its expenditures significantly each year. This has led to the accumulation of over one trillion shillings in public debt since taking office.

The courts have sought to moderate excessive taxes, striking down those that breach the Constitution. However, the lack of opposition from Parliament and the Judiciary to the executive’s actions leaves the citizens on their own, as evidenced by the expected new taxes in the upcoming finance act.

In conclusion, there is a need for a balance of power and stricter adherence to constitutional provisions to ensure better economic management and growth prospects for Kenya.

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