Corruption and the Kenyan Economy
By Kamau Wanguhu
Lately, Fuel has been a buzzword in all Kenyan related Social Media . If not the high cost of it, it’s the effect on the economy and inflation, if not that then lately it has been the lack of it.
Kenyan drivers have in the last two days been forced to queue for hours on end waiting for the ever so precious commodity. In addition traffic jams caused by cars running out of fuel as well as queues into fuel stations have become common place. A quick assessment of the damage to an economy largely reliant on fuel for; transport, energy needs as well as household needs, would peg the figure at hundreds of millions not counting the lost hours of productivity spent by staff in jams.
What is perplexing is the back and forth between all the actors with the energy ministry, Kenya Pipeline Company, Kenya revenue authority, Oil marketers and the Kenya Oil refinery at loggerheads as to who is at fault. What seems to be clear is that it is an artificial shortage, occasioned by who is anyone’s guess. One of the biggest oil marketers in an interview alludes to some hidden forces.
From unfolding events a picture of cartel like behaviour is discerned with an underlining aim of exploitation of consumers and hoarding stocks. Some Analysts alude the shortage to a recent government initiative to impose price controls. The current scenario is all too familiar to the 2008 triton scandal which was accompanied by similar shortages.
Corruption is and still remains Kenya’s biggest barrier to Economic Success. The following factors also contribute to the lack of success: a middle class suffering rising inflation, and trade unions calling for increase in minimum wage, and a political class who remain far removed from daily realities of the average tax payer, a yet to be implemented constitution (heavy on administration).
The lack of a strong regulatory body to protect the consumer interests is a shortcoming that urgently needs to be adressed if these factors are not come to a head in the upcoming months.
