Lower consumer prices no panacea for mass suffering

The rising cost of living has become a major concern for many Kenyans, with prices of basic commodities such as unga, cooking oil, fuel and electricity skyrocketing. 

While politicians often promise to reduce the cost of these commodities during electoral campaigns, the reality is that the cost of production continues to rise, making it unrealistic to expect prices to come down without subsidies. However, reducing prices alone is not the solution.

Many developed countries have comparatively high prices for goods and services, and in fact, prices tend to increase with a shift from a middle-income economy like Kenya to a developed economy. 

Rather than focusing solely on reducing prices, Kenya needs to focus on increasing its income per capita. This can be achieved by adopting a different economic model that prioritises growth in productivity and income levels. 

One such model is the Singaporean economic model, which is pro-business and based on four pillars: trade, investment, innovation and talent.

The trade pillar emphasizes the importance of international trade, which can help Kenyan businesses access new markets and increase their profitability. 

Foreign investment

The investment pillar encourages foreign investment in the country, which can help boost economic growth and create job opportunities. 

The innovation pillar focuses on promoting innovation and research, which can lead to new technologies and products, as well as increased productivity. 

The talent pillar emphasizes the importance of human capital development, including education and training, to ensure that a country’s citizens have the skills and knowledge needed to compete in the global economy.

By adopting the Singaporean economic model, Kenya can increase its income per capita and improve the standard of living for its citizens. 

This would require investment in education, infrastructure and technology, as well as a commitment to creating an environment that is conducive to business growth and development. 

The government must work closely with the private sector to create policies that encourage investment and innovation, while also ensuring that Kenyans have the skills and knowledge needed to compete in the global economy.

In conclusion, while reducing prices is important, it is not enough to solve the issue of the cost of living in Kenya. 

Instead, Kenya must focus on increasing its income per capita by adopting an economic model that prioritizes trade, investment, innovation, and talent. By doing so, everyone affords quality commodities and Kenya can create a sustainable path to economic growth and development that benefits all citizens.

Mr Keya is Strategy Advisor, Wylde International; [email protected]