Neither MPs Nor the Second Coming of Jesus Can Fully Save Kenyans: A Call for Revolution

The literature on the political economy of Kenya, East African states, and other African countries tends to focus primarily on the nature of the state as the most important variable in explaining development. The debate centers on whether a given state acts in the best interests of its citizens or merely serves internal or external forces.

Scholars of politics and government describe Kenya as a capitalist state, but of a special kind. In neo-Marxist terms, it is a “peripheral” or “dependent” capitalism that relies on the international capital system, including bilateral and multilateral donor agencies, states, and foreign investors. Major international non-state donor agencies influencing Kenya’s political economy include the International Monetary Fund (IMF) and the World Bank, which often serve as economic policy advisors to African governments. Their reports guide national development plans and programs.

For many years, third-world economies like Kenya have heavily depended on external financial borrowing for survival. This economic dependency exposes us to external influences and leaves us in unbearable pain from its consequences. It has plunged us into debt crises, giving the IMF and World Bank strong control over our economy and allowing them to ruthlessly apply their infamous Structural Adjustment Programs (SAPs).

Research has shown that Kenya has developed a reputation in World Bank circles as a showpiece for proper SAP implementation. In return, it received more generous external loans than other African states with poor SAP implementation records. Different Kenyan governments’ implementation of SAP included, among other things, the introduction of additional user charges to boost government revenue, such as government fees for obtaining identification. Since the United Democratic Alliance (UDA) came to power, we have witnessed the introduction of a 1.5% housing levy, a health insurance fund set to 2.75% deductions, increased loan rates, and higher National Social Security Fund (NSSF) rates, among others.

As part of the liberalization demanded by SAP, the government also encouraged greater privatization of the economic sector, restructuring, and reducing its involvement in parastatals. President William Ruto signed a bill allowing his treasury to privatize state-owned enterprises (SOEs) like the Kenya Ports Authority, hotels such as Utalii and Mombasa Beach, sugar companies, the Kenya Meat Commission (KMC), Kenya Pipeline, and Kenya Creameries (KCC), as reported in mainstream media and public gazette notices.

The Finance Bill 2023 to the Finance Bill 2024 has shown that public participation does not matter. Bills, even in their proposal stages, often hide many issues, focusing public attention on a few headline-grabbing items while everything else passes without amendment. Some Members of Parliament (MPs) claimed they did not know the contents of the Finance Bill 2023, including taxes on farm produce. Despite overwhelming rejection by citizens, the Housing Levy was retained, though slashed from 3% to 1.5%.

Kenyans have faced significant hardship from the Finance Act 2023, with agricultural output taxes, housing levies, and defunct health insurance premiums. The Federation of Kenya Employers (FKE) reported that the Finance Bill 2023 led to the laying off of over 70,000 people. Loan defaults have increased by almost 5 million due to the harsh business environment overseen by the UDA government. FKE and manufacturers have noted a rapidly deteriorating business environment, with thousands of businesses shutting down and exiting Kenya.

The contentious Finance Bill 2024 passed through parliamentary voting despite protests. The focus was on taxes on bread and motor vehicles, likely bargaining chips for the bill, while other measures were left unaddressed. The poor and vulnerable are particularly hurt. Despite the negative social, economic, and political impacts experienced across Africa due to SAP, the World Bank and IMF continue to insist on its desirability for economic recovery. External loans and debt relief remain conditional on SAP implementation. Kenya is among the top recipients of foreign aid.

President Ruto has warned Kenyans to brace for tough times as his administration plans to increase tax revenue. He stated that the new taxes in the Finance Bill 2024 are just the beginning, saying, “It is going to be difficult, but finally, you will appreciate.”

Experts emphasize that Kenya needs to adopt an internally oriented, self-reliant approach. This involves meaningful restructuring of the economy and eradicating undue external influence, which requires strong political will and sustained commitment from leaders and society at large. However, commitment from our leaders has been lacking for 60 years since independence in a country characterized by political betrayal and deceit.

Over sixty years ago, our ancestors proclaimed our country’s independence, and we became masters of our own fate. However, the joy of independence was tempered by battles and struggles that have continued for six decades. Kenya faced the tragedy of single-party dictatorship and the horror of economic collapse in the 1980s and 1990s, enabled by elite corruption and policies like the IMF’s SAPs. It was only in the early 2000s that we developed great ideals on paper, including the 2010 Constitution and Vision 2030. However, we soon fell into the traps of the IMF and the World Bank, driving us back to the 1980s and 1990s. The introduction of punitive taxes is marked by:

1. Exporting young people with new skills and knowledge due to the government’s inability to create jobs, seen as an achievement.
2. Living on debt.
3. Elite corruption.
4. Ethnicization of national life through divisive politics and unequal access to opportunities.
5. Callous and cruel post-colonial leaders who prioritize their own paychecks.
6. State-enabled high levels of poverty through inconsiderate cost-of-living increases.

Revolution is the way to reclaim the original dream. Fighting against this dramatic decline is worth it. If not, perhaps only the Second Coming of Jesus Christ can save Kenyans. However, it will be late for Kenyans. They will be finished already.