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President Ruto vows to tame the rising cost of living, but warns of tough times ahead
In his inaugural State of the Nation Address Thursday afternoon, President William Ruto pledged to tackle the soaring cost of living, but warned that Kenyans would have to tighten their belts in the short term.
Ruto said that the global economic crisis, exacerbated by the Covid-19 pandemic, supply chain disruptions, and geopolitical conflicts, was putting a strain on Kenyan households.
He called for practical and sustainable solutions to the crisis, and emphasized that the country could no longer afford to live beyond its means.
“We must admit that as a country, we had been living large and way beyond our means,” Ruto said. “The time has come to retire the false comforts and illusionary benefits of wasteful expenditure.”
The President outlined a number of measures that the government was taking to address the cost of living crisis, including agricultural investments, fertilizer subsidies, and targeted price controls on essential commodities.
He also warned that the government would need to take tough measures to reduce its budget deficit and bring the country’s debt under control.
“Stringent measures will be put in place to achieve this goal,” Ruto said. “But I want to assure Kenyans that we are committed to protecting the most vulnerable and ensuring that no one is left behind.”
Ruto’s speech was met with mixed reactions. Some Kenyans welcomed his commitment to tackling the cost of living crisis, while others expressed skepticism about his ability to deliver on his promises.
Martin Owino, the MP for Ndhiwa brushed off the speech, saying: “We can say with remorse that it was a speech without value which can be classified as noise. What people are going through is horrible when you talk about cost of life. If you don’t tackle them, you cannot give any relief. Let them tackle fuel.”.
Government Increases Fees for Essential Services, Sparking Outcry from Kenyans
In a move that has sparked outcry from Kenyans, the government Wednesday increased the charges on a number of essential government services, including application of national IDs and passports. The new charges, which were gazetted on November 6th, 2023, have been met with stiff resistance from Kenyans, who argue that the increase is arbitrary and unaffordable.
One of the most controversial aspects of the new charges is the increase in the cost of applying for a national ID. Kenyans who are applying for an ID for the first time will now be required to pay Ksh.1,000, up from the previous fee of zero. The replacement of lost IDs will also cost Ksh.1,000, a tenfold increase from the current Ksh.100.
The cost of applying for a passport has also increased significantly. The fee for a standard 34-page passport has surged to Ksh.7,500 up from the current Ksh.4,500. A 50-page ordinary passport will now cost applicants Ksh.9,500 from the existing Ksh.6,000 while the application fee for a 66-page ordinary passport has shot up by Ksh.5,000 to Ksh.12,500.
Critics of the new charges argue that the increase will disproportionately affect low-income Kenyans, who are already struggling to make ends meet. They also point out that the government has not provided any justification for the increase, and that there was no public participation in the decision-making process.
Thursday, Muslims for Human Rights (MUHURI), in a statement, condemned the move, calling it ‘absurd’ and ‘unreasonable’. “In a country grappling with an unprecedented cost of living, where many families struggle to put food on the table, the government expects the majority of its citizens, the hustlers, to cough up Ksh 1,000 for a simple ID application? Or Ksh 2,000 to replace a lost one?” MUHURI posed.
“What does this mean for the average Kenyan child? They now have to bear the burden of securing additional funds to even obtain employment or pursue higher education, all because they need this crucial document to have a chance in this country,” the statement added.
Dr. Magare Gikenyi, a Nakuru-based doctor, Thursday filed a petition in the High Court challenging the new charges. In his petition, Dr. Gikenyi argues that the increase is arbitrary and illegal, and that it violates the rights of Kenyans.
In response, the High Court suspended the implementation of the new charges pending the hearing and determination of Dr. Gikenyi’s petition. The matter will come up for confirmation of compliance and further directions on November 29th, 2023.
“A conservatory order be and is hereby issued suspending Gazette Notices No. 15239-15242 dated 6th November 2023 and/or any other document purporting to give authority to increase or review the charges/fees/levies specified therein pending the hearing and determination of this Application inter-partes,” ordered Justice L.N Mugambi.
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