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Home > Business & Finance > Lobby demands solution to high cost of living in Kenya

Lobby demands solution to high cost of living in Kenya

The Public Service Governance (PSG) has held a business conference today with the aim of analyzing the whole process of having a particular commodity at an affordable price to all citizens.

Speaking during the conference at a Nairobi hotel, PSG President Esther Waringa noted that according to the World Bank annual ratings, Kenya is ranked 56 among 190 economies in the ease of doing business, a ranking that improved from 61 in 2018 to 56 in 2019.

“Businesses are a great measure of how a country’s Gross Domestic Product GDP performs and is a key determinant of the key cost of basic commodities,” said Waringa.

She added that internal and external investors find it unfriendly and very expensive to invest in the country due to high taxation.

Waringa said that her team is working with the Energy and Petroleum Regulatory Authority (EPRA), Kenya Power Company (KPLC) and other Independent Power Producing Agencies in order to make petroleum and its products affordable to Kenyans.

She noted that the main aim of working with these agencies is to reduce the cost of production which ultimately reduces the cost of basic commodities.

“The Government should focus on how to improve trade, agriculture, industrialization and tourism as main revenue sources for Kenya instead of capitalizing taxation on already struggling businesses,” added Waringa.

She added that the increase of brokers in the market chain has led to the rise of prices of raw materials as they get to the company.

Therefore, Waringa called upon the government to take the initiative of setting up industries in local areas where the raw materials are found in order to reduce the cost of manufacturing and transportation.

She disclosed that a committee would be set to oversee the implementation of the conference recommendations to the letter.

Waringa said the committee is expected to work with the Ministry of Trade and Industrialization, Ministry of Finance, EPRA, KPLC, Registrar of Companies, Kenya Association of Manufacturers and other Semi-Autonomous Agencies in charge of investment policy regulation in Kenya.

At the same time, the Chief Executive Officer (CEO) Ukwala Bargains Limited Company Nitin Harania appealed to the government to ensure that citizens also benefit from the taxes collected.

PSG is an institution that strengthens the Public Service Institutions and capacity development forms with key interventions towards economic, social and governance progress of the Republic of Kenya.

By Sylvia Kavisi

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