WHAT’S NEXT AFTER THE FINANCE BILL PROTESTS?

What is the?difference between activism and advocacy?

The Gen Z protests?are?activism. Advocacy is what will happen or needs to happen after the activism. Advocacy answers the question:?What?would happen if the activism were?successful?In the?best-case?scenario, what?would we like to see happen?now that the?Finance Bill?has been thrown out??Advocacy requires policy thinking and ongoing continuous work that is inclusive and practical.?

Some would argue that the citizens gave advocacy a chance during public participation.?However,?during public participation, most submissions were outright rejections?of the proposed clauses without offering an alternative. This is still activism, not necessarily advocacy. Some professional bodies'?submissions took the advocacy route by?proposing?alternatives. Offering alternative policy proposals is the main work of advocacy.? Advocacy seeks the best alternative to a?government-proposed?policy (BAGP). It's the equivalent?of?the best alternative to a negotiated agreement (BATNA)?commonly practiced in?commercial negotiations and?mediation.?BATNA?exists when negotiations are not agreeable to the parties involved.? The Finance Bill is unacceptable; the?2023 one was the genesis of our woes.?The overall tax collection was lower than expected despite various tax changes and new levies introduced in the Finance Act 2023, such as the new PAYE bands and the Housing Levy.?The country experienced a decline in?FDI?and fewer new businesses.?

The Finance Act introduced higher taxes on high-income earners, higher than even tax on Companies, and increased VAT on petroleum products, which can deter investment and increase operational costs for businesses. The Act did not adequately address the low transition rates to higher education and Technical and Vocational Education and Training (TVET) programs. Additionally, higher taxes and operational costs potentially contributed to lower employment rates as businesses faced higher financial burdens.?

If the current activism is successful,?it will, at best, leave a vacuum unless?advocacy efforts match it.?However, suppose we can effectively advocate for the right policies. In that case, we can create a Finance Bill that addresses the needs of the people and the government, leading to a more balanced and prosperous society.

We can start by agreeing on some things.?

The government still needs to raise tax revenue to reduce debt dependency; however, how this is accomplished is in contention.?Suppose we can agree that these are the problems that the Finance Bill allegedly sought to solve. In that case,?we can discuss whether its proposed measures work to solve?or exacerbate the problems?and what are better alternatives to achieving the same things without unnecessarily punishing?the citizenry. ?Any problem in Kenya can be traced to one or more of these problems. I want to call?them?the?seven?social and economic problems of Kenya. 1. High public debt due to revenue shortfalls 2. Inflation and high cost of living? 3. Unemployment and underemployment? 4. Healthcare & Education Funding? 5. Infrastructure Development? 6. Social Inequality? 7. Corruption and mismanagement of funds.

Second, we need to agree?on?the solutions to these problems. The government?is choosing structural adjustment programs probably under duress of?the?IMF. It?is well documented that SAPs destroy societies. There exists a better alternative to SAPs, and the government is full of economists, so why would they still favor SAPs unless the IMF is arm-twisting them??

The government should have adopted microeconomic adjustments over Structural adjustments in the short term.?What’s the difference, you may ask? Microeconomic adjustment means adjusting to living within your means,?while structural adjustment means changing?our economy's structure to ‘enable rapid growth”. ?Economic frameworks like SAPS are based on theories and assumptions, not facts and evidence.?SAPS adverse effects?are well documented, but just so that we are on the same page, here are just a few:

??Defunding healthcare, education, and social services disproportionately affects the poor, leading to increased poverty and inequality.

??Privatization and deregulation?lead?to job losses when labor markets are liberalized.

??Reduced access to essential services such as water, electricity, and transportation due to privatization and introduction of user fees for healthcare and education.

??Debt Dependency—Ironically, SAPs require taking on more external debt to finance reforms and stabilize the economy. Subsequent debt servicing leads to?substantial portions of the national budget allocated to service debt rather than development. The?results are sinking the country into a debt trap, a?loss of economic sovereignty limiting the country’s fiscal space for?growth?and?social spending, and our Western creditors influencing and dictating policy decisions,?as we are seeing?

??Destruction of local industries through deregulation, liberalization, and removal of subsidies.?

??Political and Institutional Weakening -SAP's?strict conditions undermine local political processes and governance structures, and?the government loses policy autonomy and?isnow compelled to follow donor prescriptions.

??Social unrest and political instability- no need for explanation?

1)?So, if structural adjustment programs are not the solution, what is??

1.?Microeconomic Adjustments in the short term?

2.?Increase in revenue collection by widening the tax bracket, not by increasing taxes targeted at those who are already taxed

3.?Fund public and social services, not defunding and privatization.

4.?Price Stabilization & reducing cost of living?

5.?Promote inclusive economic?growth?and job creation to reduce?unemployment?& underemployment and reduce inequality,?

6.?Transparency and accountability in public finance management and disincentivize illicit financial flows.

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2)?Microeconomic Adjustments in the short term?

We are still not out of the woods?regarding?economic recovery post-COVID,?and there?isstill work to be done?in the short term to cushion Kenyans.?

??Subsidize?consumption in the short term?

??Tax exemptions for essential goods until prices stabilize.?Basic?goods are?diesel, flours, legumes & pulses, cooking fat & oils, sanitary products,?soaps?& detergents,?electricity,?tell

??Price Controls?to reflect market conditions

??Regulatory reforms to improve market efficiency and competitiveness

??Modifying regulations to improve market efficiency and competitiveness

3)?Increase revenue without overburdening citizens and businesses

An increase?in tax revenue has two?components?–?a?better collection of existing taxes and?widening the tax bracket.?Both?work?synergistically.?Revenue collection is determined by what you are taxing. Not all taxes are equal. Taxes on livestock or?harvested crops are less effective than taxes on farm inputs and finished products.?Kenya is an 80% informal economy but adopts taxation frameworks suitable for a formal economy. ?This is why KRA?faces?revenue?shortfalls?each financial cycle. To achieve increased revenues,?the following suggested measures should be implemented:?

??Tax Consumption, not income. Zero-rate essential?goods to make them affordable to all Kenyans. VAT for?non-essential?goods and services should be raised to?20-25%. In contrast,?crucial?goods like oil (diesel especially), flour, both maize and wheat, rice, soap, cooking fat and tallow, milk, pulses/legumes, grains, sanitary wear, books, education, healthcare, agricultural services, inputs, and?construction materials for affordable housing and services should be?zero-rated.

??Progressive Tax brackets?instead of one blanket 30 tax rate for individuals and companies.?Someone earning 50000 shouldn't?pay?34% of their income as taxes. Income taxes for PAYE should be at 10% for?up to 100,000 and capped at 20% for high-income?earners.?Taxing employees at the same tax rate as companies is unfair,given?that companies can?make deductions.

??Impose taxes deducted at source and taxes collected at source?as a final tax instead of income tax regimes. Income taxes are ineffective in an informal economy, while consumption taxes and taxes deducted or collected at source are much?more?effective in tax revenue collection.

4)?Price Stabilization & reducing?the?cost of living?

Inflation is eating up incomes and causing stagnation?in growth. To fight inflation, price stabilization measures should be?advocated.?CBK?has been using Monetary Policy Measures to stabilize inflation,?as the Swahili say ...Mgala?muue?na?haki?uumpe. However,?there is much more the government can do?from?a?Fiscal Policy?interventions perspective.?Subsidies to food, fuel, and electricity and tax?reliefs inform of VAT zero-rated goods to reduce essential goods, which is the only way to make them affordable to low-income earners,?cushioning them as they get on their feet. The government had sworn?not to subsidize consumption?but rather subsidize production. In line with that,?the following production subsidies should be adopted

??Subsidize energy at night for manufacturers, producers, and processors. We have a glut of energy,?and electricity cannot be stored. This energy goes to waste.?Sell itcheaply?to manufacturers?and?processors.?

??Streamline licensing and?permit processes to?manufacture essentials locally, especially by the cottage industry?competitive.?

??Zero-rate?farm inputs fertilizer, seeds, herbicides, etc.

??Zero-rate raw materials for the majority of things,?even the raw materials that end up producing luxury goods.?

??Subsidies for Energy Costs Provide targeted subsidies for electricity and fuel to lower?business operational costs?and reduce?consumer prices.

??Provide incentives for local manufacturing to reduce reliance on imports, which can be subject to price volatility due to exchange rate fluctuations.

5)?Fund public and social services?rather than?defunding and privatization.

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a)?Social services should remain social, not capitalistic.

Privatizing public and social goods or services without exploiting the citizens is impossible.?There is no way to be fair, affordable, and profitable for public goods like housing, roads, ports, healthcare, agriculture, public transport, education, and social welfare. Privatization will lead to prices being over and above the affordability of the common?mwananchi, and you won't get the critical mass need to cross over profitability. But if you price them at an affordable level, you forgo profitability. Ask all those in the social impact space, including Equity Bank, Penda Health, Kidogo,?Twiga,?Green Mobility,?etc.?You will either need?to be?subsidized or dependent on grants, whether?government subsidies, venture capital subsidies, or development aid subsidies; someone?will have to pay for it if profitability is the goal.?

If profit is not the goal and operation at cost is acceptable, then co-pay?is manageable for the mass population.?However, for co-pay programs to work, the organization offering the service has to accept that it is a non-profit?organization.?Suppose you want to push the bottom line into the profitability region. In that case,?the amount citizens have to pay will be out of reach of many, locking out essential services from the reach of?people with low incomes,?who are the majority in?a developing economy.?My other opinion is that co-pay for basic needs and services is unfair to the population that?must also?pay taxes.?The government must tax citizens to provide equal access to essential services or a pay-for-service model. You can't have both and sustain a fair non, non-oppressive economy.?Co-pay works best in economies where there is inefficient tax collection.?

The?government should?return?to its first love: social services?and?public goods. Education, healthcare, agricultural services, infrastructure, & social safety nets.?Currently, the private sector plays a significant role in these sectors, sometimes even more prominently than the government, except for infrastructure, where public-private partnerships (PPPs) are becoming more common, particularly with the introduction of toll roads.?We saw how primary public education collapsed in the?90s?and even further?collapsed in the?2000s; public healthcare is on a free fall,?and devolution hasn’t even alleviated the plight. Agriculture and social safety nets are now?entirelydriven by?the private sector and the NGOs/CSOs.

Infrastructure development has been a core function of government; however, due to budget constraints and the need for extensive investment, PPPs are becoming prevalent.?These projects help bridge the funding gap and introduce tolls and user fees that can impact affordability for the general public.

While I am?conscious?that the financing?gap in financing?public & social services and goods?is?too big to be filled by?government?revenue?in the short term, the policy shift that we need is to recognize that the private sector participating in providing these essential services?is?filling in the gap that the government?is unable to meet. Therefore,?they should be treated as co-partners with?the?government.?Some of the?ways?the government can collaborate with the private sector to provide affordable social services include:

??Increase public investment in public education, healthcare, and social services to ensure equitable access and reduce reliance on the private sector. Right now, we are seeing massive defunding of public services.?For example, university funding has been cut; we have yet to comply with the Abuja Declaration and allocate 15% of our budget to healthcare; except for the Inua Jamii Program, there are?no substantial social?services programs.?

??Regulation and price controls?are needed to avoid the?exploitation of the public?by the?private sector.?

??Implement?well-funded and effectively managed?comprehensive social protection programs, such as Universal Health Coverage (UHC), which provides free essential health services for vulnerable groups, Conditional Cash Transfers similar to Inua Jamii, Public Works, and Community Work programs for temporary jobs.?

??Promote inclusive growth by ensuring that PPP infrastructure?projects are accessible to all, not just those who can afford tolls or fees.

??Subsidies and Incentives to?investors in essential services, including implementing capacity-building programs and tax breaks until capital costs are recovered, especially in capital-intensive sectors like healthcare, renewable energy, education, and agriculture.

??Blended finance using concessional?funding from?governments'?DFIs?to derisk, provide guarantees and?insurance,?and enhance investor?confidence.?

??Inclusive policy formulation and?joint monitoring and evaluation?to promote ownership, cooperation, transparency,?and?accountability.?

b)?The government should?refrain from crowding out the?private?sector.

To actively?deliver on this mandate,?the government should refrain from crowding out the private sector in industries that perform better when the private sector invests in them.?For example, the government has no business importing cooking oil?through?agencies like the Kenya National Trading Corporation (KNTC)?in the guise of?price?stabilization.?Another example is the public sector's dominance in financial markets?due to?excessive domestic borrowing.?This is driving?interest?rates up,?making it more expensive for private businesses to obtain financing.?State-owned enterprises?SOEs?in banking, transport & energy often receive government subsidies and preferential treatment. This creates?an uneven playing field for private companies?that?struggle to compete with state-backed entities?with?better access to resources and market advantages. In addition, these?SOEs?become inefficient through mismanagement and need more bailouts while?not offering adequate services to the citizens,?making it a double loss.?

c)?Restructuring Devolution:?The only Justified need for a Referendum?

Another?unpopular opinion?that may rub the Council of Governors the wrong way but also give better direction to those seeking a referendum is that we need to restructure devolution.?If any referendum is to be held, it should be one on restructuring devolution such that it is?a concurrent function. If the IMF-driven SAPs of the?'90s?are where the rain started beating us, the hailstorms started when we devolved some functions,?especially the workforce.?Agriculture, healthcare,?trade, transport,?water,?and tourism should be nationally coordinated on legal & policy framework, staffing,?and provision of?critical?inputs.?For agriculture and healthcare, staffing should be done by a centralized organization similar to how?TSC?posts teachers. This is the only way to achieve equitable distribution. Medication, medical supplies, and farm inputs procurement and distribution can be devolved. However, the doctors, nurses, extension officers, and general policies of universal healthcare, sustainable agriculture,?coffee?and tea?revival,?etc,should be centralized as they will only work if?implemented.?

County?governments should be concerned with equitable?last-mile?resource distribution?and delivery of government services—this?way,?the revenue allocated to counties will be spent onactual development and not the wage bill.??Counties will still be free to legislate on county-specific policies and customize customized solutions to their localized issues.?

6)?Promote inclusive economic growth and job creation.

a)?Invest in Education &?Skills Development,?Modernize TVET

The hype?about TVETs is real, but when we see the recruitment drive for more people to transition to TVET, we don't usually mean technical institutes of the same level as MIT or India's Institutes of Technology. We?typically?mean polytechnics that offer rudimentary technical skills.?We need to invest in modern TVETs that?offer practical technical skills?to ensure TVET programs are aligned with market needs.

i.?University-Industry Collaboration

Graduates?often lack the necessary skills and knowledge to meet?the world's?needs. Partnerships between?educational institutions and?the industry would?bridge the skill gapand help learners adapt to changing job markets.

ii.?Enhance curriculum?

Curriculum reforms are driven by inclusive, wholesome education?emphasizing?critical thinking, problem-solving, and digital literacy.?CBC's main shortcoming is that it is not inclusive and widens the inequality gap even?more comprehensively, with rural low-income households at a disadvantage.?

b)?Economic Diversification?& Export Growth:?Prioritize the?Services?Economy?

Kenya already has a large population of young people who can be quickly deployed to the information economy. While manufacturing is desirable, it takes time to get up and running, and we have the small problem of high energy costs.?Information economy, on the other hand, is a plug-and-play initiative- well, not plug-and-play,?but much can be done in under?six?months.?Technology, finance, social sciences, and arts can become profitable within the 5-year political?cycle.

The United Kingdom's most significant export is financial services, which contribute extensively to the UK's economy through banking, insurance, asset management, and fintech services. Legal services are also a close second. India's leading exports are technology services, particularly in the IT and Business Process Outsourcing (BPO) sectors, making it a global leader in technology services. In addition, India is a?significant?exporter of pharmaceuticals,?earning the moniker "Pharmacy of the World".?India's medical services and medical tourism have been growing, attributed to?high-quality healthcare at competitive prices. Another area of growth?for?India?has been?the beauty,?personal care,?and?wellness?industry.

Kenya must leverage its young population and strategic advantages to create a diversified, vibrant economy that fosters inclusive growth and job creation. This requires?focusing?on developing tech hubs, fostering financial services, promoting cultural and creative industries, and enhancing the healthcare sector. The government must prioritize initiatives to ensure the country's success in these areas and position Kenya to excel in medical tourism, financial services, and technology hubs.

i.?Financial?Services

Nairobi is already established as a leading fintech hub, having leveraged the success of M-PESA. An ecosystem already exists that supports innovation in digital banking, payment solutions, and microfinance services.?To?establish?Kenya?as a?financial services?hub,?the following?multi-faceted approach

There has been a lot of talk about?positioning Nairobi as an international financial center.?The biggest challenge to?fast-tracking?this is the?lack of a transparent and stable?regulatory environment. Lastly, the government has?taken a hard stance on not regulating or?promoting blockchain technology.?However, Nairobi can't be an?international financial center while shying away from digital financial services, especially emerging ones.?

ii.?Technology?

The private sector has made admirable progress in promoting Kenya as a tech hub on its initiative. The government?must join the party and support the tech sector by promoting tech parks,?incubators, tech entrepreneurship,?and IT outsourcing businesses.?

iii.?Cultural?Heritage Tourism?and Creative Industries

Kenya needs to diversify from wildlife and beach tourism to cultural tourism. In addition, it is about time the Kenyan government starts investing in arts, creative industries, media, entertainment, and cultural heritage tourism?to?create?new avenues of growth. These sectors?serve?as significant employment and investment opportunities?while playing?a significant role in preserving and showcasing the?rich cultural heritage.?There hasn’t been any significant?government-driven?investment in?creative industries and cultural heritage. Here?are some starting points to promote sustainable growth and garner global recognition of Kenya's cultural and creative potential;

??Establishing?Media Cities:?In the same way we have technology cities like Konza and mixed development cities like Tatu City, we need to create dedicated cities or zones with state-of-the-art film, music, and digital media production facilities?to?attract local and international productions.?

??Technology and Innovation:?Invest in digital infrastructure and?technology,?suchas cheap?high-speed?internet and?zero-rating?production equipment,?to support the production and distribution of media content.?

??Develop comprehensive policies and initiatives that support the creative industries?that?focus on funding, education, infrastructure, and international collaboration.?

??Creation Incentives:?Instead of the threats and penalties we saw recently from the Kenya Film Board CEO, the government should provide?tax incentives and subsidies for local content creation in film, television, music, and digital media.?

??Intellectual Property Protection:?Kenya already has robust IP laws; what needs to be done is?to?strengthen?the?enforcement?of IP laws?to?ensure?creators receive fair compensation and?reduce?piracy.?

??Preserve and develop cultural heritage sites and launch marketing campaigns to promote Kenya’s unique cultural experiences to tourists.?Work with UNESCO and other global networks to gain recognition for Kenyan cultural sites and practices, attracting international funding and tourists.

??Leverage?Collaborations?and?Public-Private Partnerships:?Encourage government, private sector, and international collaboration to fund and support cultural initiatives and forge partnerships for knowledge exchange and market access.

c)?Establish?a world-class healthcare system.

??Modernize Healthcare Facilities?by?investing?in building new hospitals and upgrading existing ones with modern equipment and technology?to ensure access to quality healthcare?nationwide.?Additionally,?specialized centers of excellence for oncology, cardiology, and neurology should be established?to provide advanced care and attract medical tourism.

??Workforce Development: We still run healthcare training from the elitist colonial mentality, where it is regarded as the preserve of a few extra brilliant learners.?That mentality needs to be?addressed to facilitate equitable access to medical education and increase the number of?healthcare professionals.?Implement?training to keep them updated with the latest practices and technologies.

??Incentives and Benefits:?The recent?healthcare worker strikes?highlighted the plight of healthcare workers?and the urgent need to offer?competitive salaries, benefits, and career advancement opportunities to retain top medical talent?locally to reduce brain drain

??Health Financing?To achieve Universal Health Coverage (UHC), it is essential to strengthen the comprehensive coverage?and accessibility for all citizens and provide subsidies for low-income households to afford necessary healthcare services.?SHIFmay not be the solution,?nor will it?

??Healthcare Bonds, collaborative?investments,?and Public-Private Partnerships (PPPs)?to fund healthcare infrastructure and service delivery

??Adopting Advanced Technology:?Expand telemedicine to increase specialist care access in remote areas and implement Electronic Health Records (EHRs) to improve patient data management and enhance care continuity.

??Governance and Regulation: To improve healthcare, comprehensive health policies that prioritize quality care, patient safety, and equitable access must be developed and enforced. This should be coupled with efforts to strengthen regulatory bodies to ensure compliance with healthcare standards and ethical practices.

??Accountability & Transparency:?To ensure accountability and transparency in healthcare, robust monitoring and evaluation systems will be implemented to track healthcare outcomes. In addition, stringent anti-corruption measures will be?implemented?to ensure that healthcare funds are used effectively and transparently.

??Community?Engagement & Public Health?Awareness:?Community engagement and public health initiatives?are crucial?in promoting overall well-being. Nationwide public awareness campaigns can educate people?about healthy lifestyles and the importance of preventive care. Additionally, training and deploying community health workers to provide?essential?healthcare services and education at the grassroots level can significantly improve access to healthcare.?In preventive healthcare, strengthening immunization programs can help prevent common diseases and enhance public health. Furthermore, implementing programs for the prevention and management of chronic diseases, such as diabetes, hypertension, and cancer, is essential for ensuring the?population's long-term health.

??Medical Tourism: To attract international patients, it's?necessary?to ensure that healthcare facilities meet international standards and focus on marketing and promoting Kenya as a destination for medical tourism. This involves highlighting advanced medical services and competitive pricing to appeal to potential medical tourists.

d)?Trade?Promotion?by?Enhancing?Market Access and Trade Facilitation

??Regional Integration:?In line?with the government policy to subsidize production and not consumption, subsidize manufacturing and strengthen?Kenya's participation in regional?trade,?especially COMESA, East African Community (EAC), and the African Continental Free Trade Area (AfCFTA),?to boost intra-African trade.?Uganda's?eggs and milk are cheaper because of?subsidies. Tanzania fruits and horticulture?are cheaper because they don’t tax farm inputs, a form of subsidy. Egypt?is the largest exporter of oranges, garlic, and onions. It comes?with no import duty taxes, making it difficult for Kitui, Makueni, and?Kieni?farmers?to compete competitively. ? import duty?

??Trade Infrastructure: Invest in modernizing trade infrastructure, including?inland?ports, customs facilities,?weighbridges,?warehousing,?and border posts, to reduce transaction costs?and?time?and improve efficiency.

??E-Commerce Development: Promote e-commerce by improving digital infrastructure and?last-mile delivery infrastructure?to?minimize?delivery costs,which are more expensive than?importing a single item on Alibaba or Amazon.?

e)?Promote?Agribusiness and?Agro-Processing?by enabling efficient and competitive?Value Addition and?improving productivity.?

??Support the?investments?in?agro-processing?facilities,?food processing plants,and packaging industries?by availing the same?incentives?available to?EPZcompanies to local companies

??SAPs in the?90s?defunded?agricultural research and?agricultural?extension services, and devolving agricultural extension?has made?the situation worse. Extension services are now offered primarily by?the private sector, driven by maximizing profits by selling more farm inputs rather than sustainable agricultural practices.?Invest in these strategic services critical to food security to?promote the adoption of modern farming techniques, high-yield crop varieties, and sustainable practices.

??Rural Infrastructure: Improve roads, storage facilities, and irrigation systems to enhance productivity and reduce post-harvest losses.?Revive government?and cooperative storage facilities and post-harvest support.?

f)?Manufacturing?

??High?energy costs:?The?most significant?challenge to turning Kenya into a manufacturing hub is the high energy costs that reduce?competitiveness.?Yet we have?an?electricity surplus that goes to waste. The?electricity should be sold at night to manufacturing and renewable energy players to enhance the cost competitiveness of made-in-Kenya products.

??Regulatory & Policy Issues: Inconsistency in?regulatory and tax policies, lengthy and complex bureaucracy, and red tape make business in Kenya painful, unpredictable, and punishable.?The bureaucracy punishes businesses seeking to formalize, regularize, and comply, while those that remain in the darkness?of informality and unlicensed activities continue to operate?with impunity.?

??Proliferation of?counterfeit?and substandard goods:?Enforce standards and quality for imports to prevent unfair competition.?

??Non-tariff?Barriers: Limit access to international markets:?Stringent standards and customs procedures impede exporting products.

g)?Modernize?Logistics and Transport

??Transport costs?contribute to an estimated 30% of the final price of goods. The government needs to revive?rail?at the last mile?to lower the cost of goods and improve connectivity. This will?involve?developing?integrated transport systems that connect roads, railways, ports, and airports, facilitating the smooth movement of goods and people.?

??Establishing logistics hubs and inland container depots?that?are strategic and?convenient for traders, not for?government deal makers, will streamline supply chains and reduce congestion at major ports.?

??To enhance logistics efficiency, the government should partner with the private sector to provide digital solutions such as real-time tracking, electronic documentation, and automated customs processes.?

h)?Real Estate and Construction

??Public Housing?vs. Affordable Housing Projects:?We have it twisted when it comes to fixing the housing problem. Suppose the government insists on continuing with the housing levy. The?public funds collected?should go to?implementing?public housing owned and operated by government agencies to provide affordable living options for low-income individuals and families,?not the current plan to collect funds from the general public but only sell to a few?who will own the houses privately for life. This is the same as using public funds to finance private real estate dreams or the prohibited conversion of public funds or land to private property. The housing units developed by the housing levy?are publicly funded and, therefore, public assets.?They should be?funded, maintained,?and managed by public authorities.

That’s not to say that there is no room for affordable housing.?Develop affordable housing projects through PPPs,?incentivizing?private developers to build low-cost housing units.?These housing units can be sold?cheaply and profitably?to willing buyers and sellers at rates that should be lower than market rates, having benefited from the subsidy.?

??Urban Redevelopment: Invest in urban redevelopment projects to revitalize underutilized areas, incorporating mixed-use developments that combine residential, commercial, and recreational spaces. Update?physical?planning?master?plans?and building standards and enforce sustainability and green construction policies.?

i)?Promote Local &?FDI?investments

Improving the Business Environment

??Regulatory Reforms?to Improve?Ease of Doing Business: Streamline business registration processes, reduce bureaucratic red tape, and simplify licensing requirements to make it easier for businesses to start and operate.

??Tax?Holidays?& Exemptions?for local production:?Offer tax holidays and exemptions for new investments in?critical?sectors such as manufacturing, technology, and renewable energy.

j)?Urban and Rural Integration

i.?Urban Redevelopment

??Waste management:?The private sector's selfish interests in waste management?and outdated sewage systems?complicate urban waste management. To address this, the government should enforce strict waste segregation laws, promote recycling and composting, and incentivize eco-friendly practices. Investing in modern waste management infrastructure, such as waste-to-energy plants, can?convert waste into valuable resources like electricity. Collaborating with the private sector can bring innovative solutions and funding to enhance waste management systems, ensuring environmental sustainability and public health protection.

??Transportation Networks: Expand and modernize public transport systems, including buses, trains, and non-motorized transport infrastructure such as bicycle lanes and pedestrian pathways.

??Urban Renewal Projects: Redevelop old and underutilized areas into modern commercial and residential zones. This includes upgrading slums and informal settlements to improve living conditions and integrate them into the broader urban fabric.

ii.?Rural Development & Connectivity:

??Rural Connectivity:?Improving rural connectivity involves investing in better roads, affordable public transport, and expanding high-speed internet access. Digital literacy programs are also?crucial?for enabling rural communities to benefit from technology for economic activities.

??Extension Services:?This is covered elsewhere, but food security is a dire priority, and?we must repeat it.?Fund?agricultural extension services to educate farmers on modern farming techniques, pest management, and sustainable practices.

??Access to Markets: Develop infrastructure such as cold storage, processing facilities, and marketplaces to help farmers reduce post-harvest losses and access broader markets.

??Rural Enterprises:?Promote rural enterprises?and cooperatives?to enhance their?bargaining power, reduce?costs, and improve?access to inputs and markets?by?providing financial support, training, and mentorship?

??Rural Health Clinics: Establish well-equipped health clinics in rural areas to provide essential medical services and reduce the need for long-distance travel for healthcare.

??Water and Sanitation:?Invest in water supply systems to ensure all rural areas?can access?clean and safe drinking water.

k)?Governance & Accountability

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??Inclusive?Participatory?Budgeting:?Participatory Budgeting is a democratic process where community members directly decide on spending a part of the public budget. It empowers citizens to have a say in governmental spending?and ensures that funds are used to benefit local communities. This is achieved through community meetings, proposal development,?project voting, and implementation and monitoring. Participatory Budgeting enables economic?growth?by ensuring targeted investments aligned with community needs, increasing accountability, empowering the community, and improving service delivery.

??Corruption-Free, Efficient, and Transparent Bureaucracy:?A corruption-free, efficient, and transparent bureaucracy is essential for good governance. This means implementing policies to prevent corruption, ensuring efficient administration, and promoting transparency in government operations. Key strategies involve enforcing strict anti-corruption laws, making information readily available to the public, streamlining bureaucratic processes, conducting regular audits, and utilizing digital platforms to enhance transparency and efficiency in public administration. These measures aim to deter corrupt practices, improve service delivery, ensure compliance with laws, and facilitate access to government services through digital initiatives.

??Enabling Economic Development:?A corruption-free and efficient bureaucracy builds investor confidence,?reduces?the cost and time required to set up,?and ensures that investments are secure. It also maximizes the impact of public spending, encourages entrepreneurship, and promotes inclusive growth by?providing?fair access to government services and opportunities for all citizens.

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l)?Social Policies

i.?Social Equity & Justice:?Implement?policies to address social inequality and injustice, including historical, social, and economic injustice, including marginalization based on tribal politics.?

ii.?Public Transport,?Infrastructure?& Utilities:?Develop a reliable and affordable public transport system, including buses and commuter trains, to enhance mobility, reduce travel costs, and ensure access to clean water, electricity, and sanitation services for all communities. This will improve living standards and support economic activities.

iii.?Educations & Reskilling:?Prioritize?free and compulsory primary and secondary education?and?fund public universities?and?accessible HELB funding for TVET and university education.

iv.?Public?Housing Policy:?The private sector should drive affordable housing programs; the government should focus on public housing. Inclusive Zoning: Promote mixed-use zoning to create communities where?residential areas are integrated with commercial, educational, and recreational facilities.

v.?Day Care & Early Childhood Education:?Establish affordable daycare centers to support working parents and ensure children receive quality care. Additionally, investment in early childhood education programs that focus on cognitive, emotional, and social development is crucial to?preparing?children for formal schooling.

vi.?Promote multiculturalism and integration:?To promote multiculturalism and integration, we can organize cultural festivals and events celebrating Kenya’s diverse heritage, encourage intercultural dialogue, integrate multicultural education into school curricula, and conduct public awareness campaigns to combat prejudice and promote social cohesion.

7)?Enhance transparency and accountability in public finance management and?disincentivizeillicit financial flows.?

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m)?Disincentivizing Illicit Financial Flows?

Achieving zero corruption is a fallacy, just like achieving zero poverty, which?is an illusion and?unrealistic. If we can focus on reducing corruption but, more importantly, on?disincentivizing corruption and the outward flow of?illicit funds?and forcing?proceeds of corruption?to?remain in circulation, the?country would have made significant progress in?fighting the ill.?

Preventing illicit financial flows will enable easier tracking and recovery of projects from corruption. Corrupt?funds should be restrained from moving out of the country, and any assets obtained?from corruption should be forfeited to the state. This will require the corrupt to think outside the box?about?money laundering by?developing?complex schemes. Complex money laundering schemes?require?significant investments locally and a?more extended?runaway to exitthe funds.?This will require investing in a country similar to London and Dubai investment and at least lead to development.?It is unorthodox?but better than the current strategy,?where there is no goodwill in fighting corruption.

n)?Stringent?Anti-Money Laundering (AML) Policies?AML Regulations?

To combat money laundering, implement strict AML regulations mandating comprehensive documentation and verification of funds.?Financial institutions?must?report all suspicious transactions and enhance the?Financial Reporting Center's (FRC) capacity?to monitor and report suspicious?financial activities. Collaborate closely with international AML bodies to track illicit financial flows across borders.

Policies can be introduced to restrict the transfer of corrupt funds abroad?to require investment within the country. This can be achieved through limitations on foreign?currency transactions and penalties for illegal outflows. Additionally, encouraging illicit funds in long-term projects like real estate, manufacturing, and infrastructure can make it harder?to launder money and exit the economy quickly.

The complex money laundering schemes involve creating a system to make money laundering a lengthy and complex process by establishing strict requirements for large cash transactions and investments. Additionally, policies should be implemented to prolong the scrutiny period for?significant?investments and real estate transactions to ensure thorough investigation and verification of the source of funds.

Due to weak enforcement of AML policies, illicit funds can be moved out of the country within days. To address this, we need to improve the AML framework, enhance inter-agency cooperation, and use advanced technologies for transaction monitoring.

Implement?robust?verification processes for financial documents and transactions to detect forged documents. Financial institutions should use advanced technologies for this purpose.?Collaborateclosely with international partners to track and intercept illicit financial flows. This involves sharing information and working together on cross-border investigations.

8)?Promote national social and economic transformation and social justice based on Article 10 of the constitution, especially 10 2 [(b) & (c)].

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Lastly, in the long term, the government and subsequent governments must write their mid-term or long-term plans based on Article 10 of the Constitution.?Article 10 of the Kenyan Constitution outlines the national values and principles of governance that guide the state in making and implementing public policy decisions. Specifically, Article 10(2)(b) focuses on?human dignity, equity, social justice, inclusiveness, equality, human rights, non-discrimination, and protection of the marginalized. Article 10(2)(c) emphasizes good governance, integrity, transparency, accountability, and sustainable development.

Why is this important? The cheese has moved. We are no longer a political state but a social-economic?state.?Previous generations' politics were driven by political democracy issues such as?multiparty, equity based on tribalism and regional politics, devolution, patriotism, national unity, sharing and devolution of power, the rule of law, democracy,?and participation of the people?in governance.?You?will not?get a raise from the people?if?you base your politics on any of these.?The current issues driving politics are social?and?economic inclusion, human dignity, social equity and justice, human rights, good governance, integrity, transparency, accountability,?and sustainable development. That’s why the?recently sponsored hashtags about Mt Kenya politics and?tribal or gender wars are not working.?Whatever policies are proposed,?they must align with the following core values of the country:?

1.?Human Dignity, Equity, and Social Justice:?Promote human dignity, equity, and social justice through comprehensive social protection, inclusive economic policies, and legal reforms. This entails providing financial support, healthcare, and education to vulnerable populations, formulating economic policies that?promote job creation and fair wages, and enforcing laws that protect human rights and promote social justice, including anti-discrimination and labor laws.

2.?Inclusiveness, Equality, and Non-Discrimination:?Make quality education and vocational training equally accessible to all citizens by building more schools in underserved areas and offering scholarships to marginalized students. Promote the political representation of marginalized groups in decision-making processes and conduct public awareness campaigns to highlight the importance of inclusiveness, equality, and the negative impacts of discrimination.

3.?Good Governance, Integrity, and Transparency:?Promote good governance, integrity, and transparency through?more robust?anti-corruption measures, increased public participation in governance processes, and technology to enhance transparency and efficiency in public service delivery.

4.?Sustainable Development:?Sustainable development involves policies and initiatives that promote environmental protection, including reforestation, pollution control, and sustainable agriculture. It also entails investing in renewable energy sources and implementing sustainable urban planning practices.