March 24, 2025
Chicago 12, Melborne City, USA
Economic Kenya

Kenya’s budget dilemma: Expert calls for urgent economic realignment amid rising poverty

Nairobi, Kenya – As Kenya grapples with deepening economic challenges, Dr. Abraham Rugo, an expert in Public Finance Management, has urged the government to realign its budget priorities to address the country’s most pressing concerns.

 

AfricaHeadline Reports Team
editorial@africaheadline.com 

 

Speaking in a recent discussion, Dr. Rugo highlighted the need for a strategic focus on three critical areas: income creation, food security, and social support.

With an estimated 21 million Kenyans unable to meet their basic needs, Dr. Rugo warned that the rising cost of living and widening economic disparities demand immediate government intervention. “The budget must reflect the realities on the ground. It should not just be a financial statement but a tool for economic transformation,” he emphasized.

Budget Priorities and Public Engagement

Dr. Rugo underscored the importance of public participation in Kenya’s budget-making process. He pointed to the Budget Policy Statement (BPS) as a crucial document that should incorporate the views of citizens, ensuring that allocations align with national priorities. “Kenyans must actively engage in these discussions. We cannot afford to be passive observers in shaping our country’s economic future,” he noted.

Rising Poverty and Food Insecurity

The expert painted a grim picture of Kenya’s economic reality, citing alarming poverty levels and food insecurity. According to recent statistics, 7.7 million Kenyans face malnutrition, with children being the most affected. Dr. Rugo stressed that addressing food security is not just about agricultural production but also about creating efficient food distribution systems to ensure affordability and accessibility.

Debt and Economic Stability

Kenya’s public debt has become an increasing burden, limiting fiscal flexibility. Dr. Rugo called for debt restructuringto allow for the reallocation of funds towards essential services like healthcare, education, and social protection. “A well-managed debt strategy is crucial for sustainable economic growth. Without it, we will continue borrowing to survive rather than investing to thrive,” he warned.

Systemic Inefficiencies and Corruption

A key theme in Dr. Rugo’s discussion was the need for government accountability in resource allocation. He pointed to inefficiencies in sectors such as healthcare, where a significant portion of funds is spent on salaries rather than improving medical services. Similarly, education budgets often fail to translate into tangible improvements in learning conditions.

“Corruption and inefficiency are costing this country its future. We need a shift in mindset, where every shilling spent delivers real impact,” he argued.

A Call for Collective Responsibility

Dr. Rugo concluded with a call for collective responsibility, urging Kenyans to actively participate in economic reforms. “If we want a better Kenya, we must be willing to engage, demand accountability, and contribute to solutions,” he stated.

As the government finalizes its budget plans, the question remains: will it prioritize the needs of the people, or will Kenya continue on its current trajectory of economic strain and rising inequality?