The Kenyan shillings surpassed the 100.00 mark in the dollar exchange rates this week. That is not good, right? So many experts have come forward to articulate reasons behind its reeling behavior. One thing is for sure, Kenyan economy is effd. Our economy is so bad that we are actually surviving on grants. That means the Chinese will be on our case to the unforeseeable future. I believe that the secret to improving an economy especially in the third world countries is by encouraging spending. This is what John Keynes (sp) proposed in the early 20th century for economies during the great depression. I am not sure about the details because I never actually attended 90% of the economic classes that I was supposed to attend, so imma let that rest.
The Kenyan economy will largely benefit from a spending population. Kenyans, just like any African are brought up knowing that half of whatever is earned should be stashed under the mattress. That is bad for the economy because it largely depends on transactions (money flow) by the citizens. One cannot improve his/her standard of living if he has hid a million shillings in a hole and he is walking around in rags with a bottle of yokozuna in one hand. It would be preferable if he used the money in, say, agriculture, wore a suit and is holding a bottle of wine in one hand in his probox. I hope am making some sense. The more one sits on cash (read avoids spending) the more he withholds money from the economy that is essential in creating wealth, and jobs.
Well, one cannot spend what is not in the pocket. I believe the kind of people who are letting Kenya down in terms of spending are middle income earners. Middle income earners, or middle class, are the people earning an income of between 30,000 and 100,000 (that’s according to me, so you better agree with it) shillings. They are usually the most overworked and underpaid members of our blue chip companies. For the sake of this case I will consider the youth (age 25-35) who are middle income earners.
Whenever I hear somebody (especially politicians) say that the youth are the engineers of our future nation I grow darker with exasperation. Let’s face it. With the youth, Kenya will be the ways it is now come the year 2021. With middle income earning youth, Kenya will be much better in the year 2021. I am not saying that the other low income earning and non income earning youth are useless. I am saying they may not be having the capacity to make extraordinary impact on the economy. We all know that even in spot, the team with a player with extraordinary knack takes the day. The problem is that the despite the large numbers that they boast with, the middle class have not made any impact in Kenya..well except on the social media.
The Kenyan middle class are the proverbial toothless dog. Quick on making noise, slow on action. They never make any effort of doing something to make a difference. People will spend hours on the social media criticizing the government and other bureaucracies, churning out ways of putting them on track and that will be it. When a rally or some meeting for a good course is called, they will be safely tucked in their apartments, watching TV while reporting/discussing on the social media. Now that politics is hard for them, why not help improve the economy?
The middle class can improve the economy if they are persuaded to spend more, on other things apart from food, fare, salon, cloths, alcohol and brothels. Since they are many, it will turn Kenya into a spending nation and that is a fertile ground for economic development. Economic development means improved taxes, improved infrastructure and amenities, improved salaries for everybody and obviously that will have a favorable effect on the purchasing power of the people. The middle class have the ability to spend more than they do right now. It is the upper class who spends a lot in Kenya and they are too few to make any impact.
Saving is never a great idea. Banks will tell you it is great because they want your money to spend it somewhere. Why can’t one save by spending? I guess they call it investing. However I am more concerned about the consumption part. Very few Kenyan go for holidays. Foreigners know Kenyan national parks and beaches better than us. The only tourism most of us have participated in is the compulsory class trip back in primary/high school/campo. If more Kenyans developed a habit of visiting our tourist attraction for instance, government revenue from tourism will double therefore reducing its dependence on foreign debt. More jobs will also be created in the process and in the long term the cost of tourism in the country will come down, eventually enabling more Kenyans to afford it.
That’s how it basically works. When a given commodity is consumed, the government gets more through taxes, the sellers get more income, more jobs are created and eventually the cost of consumption will come down due to economies of scale.
I wish the middle class spent more on these items where possible:
- · Holidaying/ tourism, tembea hata Kisii
- · Taking car to be washed instead of fighting with the horse pipe the whole Saturday morning
- · Sending presents and cards to loved ones, not just success cards
- · Using a taxi to travel around town once in a while, do not create unnecessary maskwembe
- · Enlist for a gym session, ladies we loath tiles around your waists
- · Arranging a get together with friends/workmates/relatives, don’t be such a loner
- · Going for movies or plays, wachana na dvd ya 50 bob
- · Calling somebody outside the 10pm-10am (for safcom subscribers)
- · Going for a medical check-up once in a year (dental check up too), *note to self*
- · Having an insurance cover for self and car, wengine hawajui hii ni nini
- · For men: buying an extra pair of shoes, hehehe
- · Going clubbing once in a while, or twice
- · Getting your laundry be taken care of at a cost (ama washing machine) *note to self*
- · Buying original CDs for Kenyan musicians, wacha tabia ya jack sparrow
- · Installing DSTV in the house, wacha mpango wa kudoea (jimmy gathu voice)
- · For men: having a girl friend (prolly one who is still in college)
- · Buying mahindi choma and mutura, very nutritious and yummy
- · Finally, java and the like are meant to be visited, there are no man eaters in there.
Some of the above points are out just to create jobs for fellow youth. If you will not take your car to that unemployed youth to wash it for you at a fee, he will be starved, turn into a robber and wait for you at you gate as you make your way back from clubbing.
Unfortunately, without proper governance the Kenya I have been dreaming all this time will not be realized. If ever Kenya cut back on the levels of corruption and increased accountability, 2021 will be a year to look forward to. Damn it felt so cool to dream.
Boom box playlist:
A million bucks – Maino ft Swizz Beatz.
No comments:
Post a Comment