Challenges: Economic and Political Environment

Summer 2023 - A year after winning election by a razor-thin margin, President Ruto’s administration continues to struggle to deliver on campaign promises. He has failed to reign in prices of staple goods or to unifying the country; surging inflation and widespread protests (some violent) have marked the summer months.

The following statistics comparing mid-year 2022 vs 2023 numbers illuminate the on-the-ground reality for the people of Kenya:

  • Overall Inflation Rate. Officially the rate is up 8% but much higher in sectors key for working people
  • Staples (maize, grains, flour).  Up 30%
  • Rice and potatoes.  Up 20%
  • Sugar. Up 60%
  • Electricity, Gas and other Fuel. Up 10% 

During this period, nearly half of all tax revenue is being used to service debt – much of it from abroad.  In order to strengthen Kenya’s finances, the Ruto Administration has introduced a series of taxes intended to increase government income while reducing borrowing. Much of the added burden comes at the expense of people already stretched to the breaking point. New taxes include one on turnover which was tripled for small businesses; a value-added tax doubled on fuel products from 8 to 16% and a 1.5%; a housing levy on employee pay with an equivalent amount paid by employers (including the Nambale Magnet School). Perhaps not surprisingly, a series of massive strikes and protests spread across the country in July.  They were finally suppressed by police and army intervention – and not in a gentle manner.

In the western part of the country where NMS operates, economic and social dislocation are both strongly felt.  It’s one of the poorer areas of the country at the best of times. With the huge price increases in staples along with additional taxes, many parents in the Nambale area are struggling to make ends meet – much less able to pay for school tuition. Fortunately, rains have been adequate, supporting decent harvests in this agricultural region, but not enough to compensate for the galloping inflation which has crushed many households.


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