Treasury CS Njuguna Ndung’u warns Kenyans to brace for tough economic times
Treasury CS Njuguna Ndung’u warns Kenyans to brace for tough economic times, in 2023 due to the country’s financial levels
Treasury CS Njuguna Ndung’u warns Kenyans to brace for tough economic times, in 2023 due to the country’s financial levels.
Njuguna on Wednesday, January 11 revealed that the country’s financial levels were rising to unimaginable levels.
Treasury Cabinet Secretary spoke during the public hearing of the budget-making process that brought together stakeholders from different sectors including representatives from the Executive and the Legislature in Nairobi.
“From all the things we have analyzed, the outlook of 2023 is not looking very good, there are clear signals that it is going to be a tough year,” Njuguna opined.
Njuguna’s comments were made at a time when Kenyans are struggling financially as a result of rising food and energy prices and high inflation.
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The economy has been severely impacted over the past two years by the pandemic’s lingering impacts and the war in Ukraine, two events that had a devastating impact on world markets as evidenced by the increasing costs of food and energy.
“Multiple factors are likely to come into play and affect the growth prospects across the globe, For instance, if the Russia-Ukraine conflict continues to escalate, the global supply chains will continue to be affected, thereby causing supply disruptions and a surge in inflation…” Njuguna added.
The Treasury CS further revealed that the supply disruptions and high levels of inequalities and poverty were factors that would continue to hit hard on Kenyans.
“We have witnessed here in Kenya that food security and climate change have produced severe crises compounded by these supply disruptions, inequality, poverty, and social conflicts,” he remarked.
Treasury also bemoaned the mismanagement of public funds by several government agencies and urged tough austerity measures.
“We don’t want you to start new projects before you start new ones.
We don’t want wastage of resources, we have idle equipment on site, there are on loans we must look into this,” Treasury PS Chris Kiptoo directed.
According to a report released by the Kenya National Bureau of Statistics (KNBS) in December 2022, consumer price index inflation decreased from 9.4 in November to 9.1 in December.
According to KNBS, the increase in the cost of food, non-alcoholic beverages, transportation, housing, water, electricity, gas, and other fuels was the primary cause of inflation in December.
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