CBK Boss Patrick Njoroge Says Economy Is Stabilising: “We Won’t Need Subsidies by November”

• Central Bank of Kenya Governor Patrick Njoroge communicated some hope to Kenyans on the state of the economy
• The economist assured Kenyans that since June, the global economic prices have started going lower, and by November, prices of common commodities will have greatly reduced
• Deputy President Rigathi Gachagua warned Kenyans of a tough economic time ahead as they inherited a dilapidated government

Central Bank of Kenya Governor Patrick Njoroge announced that global prices of imports to Kenya are subsequently reducing.

Kenya has experienced an economic crisis that has prompted locals to dig more into their pockets to earn a living and buy household commodities.

The optimistic CBK governor said by November, prices will have levelled to lockout expensive subsidies plunging the country into big debts.

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“Since June, the global prices of what we import as Kenya have begun to come down, and we are optimistic that by about November, prices will be levelled enough for us not to need subsidies on products like fuel,” Njoroge said.

The economist spoke at the Members of Parliament (MP) induction programme at Safari Park Hotel, Nairobi.

Rigathi Gachagua: Tough times ahead

Deputy President Rigathi Gachagua asked Kenyans to brace themselves for the next few months of harsh economic times because they “inherited a dilapidated economy.”

Gachagua disclosed that the situation was very bad, and the president had to take the risky step of scrapping the subsidy for fuel.

“The situation is very bad. With the previous administration having gone on the way they were going with fuel subsidies, another six months, we would have had an economic shutdown. That is why the President took a very bold decision that the fuel subsidy using KSh 20 billion every month was not sustainable,” Gachagua told Nation Africa.

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The above came as a shocker to the flattering Kenya Kwanza Alliance campaign manifesto that promised an ‘all-systems go’ life for Kenyans.

Central Bank of Kenya core concerns

The CBK governor likened Kenya to a sailing ship that would battle unrests and trebles on the water until it reached its destination.

Like the ship sailing on a sea, the economist said Kenya will sail through the tough economic period and residents will be able to procure common household commodities at a cheaper price.

“Kenya is not a project, the way we see it is that Kenya is like a ship on a journey. And as it sails, there are things we want to achieve as a country and its leadership,” Njoroge explained.

The governor said despite the focus on economic growth of the country, it was also important to address other factors like the cost of living with ripple effects in what is considered small in the economic growth pyramid.

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“As economists, we like to talk about economic growth, but it’s not the only thing that matters. Other factors like cost of living, health, education, and infrastructure, among others, also significantly impact us as a people

We have a whole set of issues we ought to address as they keep holding us back, the first being corruption. It may benefit a few people but is costly to the entire economy,” the CBK governor added.

Njoroge also stated that government pending bills were also a major economic growth hindrance.

“Another issue of concern to us at CBK Is pending Bills within the government. High inflation rates also hold us back, and these are issues that lead to weakened institutions that cannot deliver on their mandates. We must protect these institutions through and through,” he explained.

Njoroge said the Central Bank embarked on a survey to ascertain the state of the economy after the August 9 General Elections and will make submissions to the House once the research is concluded.

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An economist’s point of view

Source: TUKO.co.ke