Ruto's Bold Response to Legislators on Rising Cost of Living: No Subsidies, No Popularity

 A Parliamentary Group meeting at State House revealed President William Ruto’s stark response to the growing concerns of Kenya Kwanza legislators about the rising cost of living, particularly fuel prices. The meeting, though closed to the press, sparked intrigue, with journalists finding ways to confirm the details of the discussion.

Legislators voiced their frustrations, pleading with Ruto to ease the burden of the high cost of fuel and the escalating cost of living, which are making it increasingly difficult for them to engage with their constituencies. Hostile crowds have become a norm, even for the president himself, who has faced unprecedented resistance across the country. This marks a significant departure from previous presidencies, where leaders like Daniel arap Moi never faced such public hostility.

Despite these cries, Ruto's response was unexpected. The president made it clear that he could not continue subsidizing consumption, especially on fuel. This economic stance, although rooted in textbook economics, has raised concerns. In an ideal economic environment, governments do not subsidize consumption but instead focus on boosting productivity and creating conditions that attract investment. For instance, providing tax holidays to new investors can generate jobs, foster growth, and increase spending power for the public.

However, Ruto’s administration appears to be taking a different approach, one that seems counterproductive to many. His decision to increase taxes on fuel rather than addressing the underlying issue of the rising cost of living has left many puzzled. This move contradicts basic economic principles that warn against raising taxes in a struggling economy, as it can lead to reduced spending and increased job losses.

Ruto also claimed that the rising fuel prices were beyond his control and attributed them to external factors, such as global events like the Ukraine war. Yet, this explanation contrasts with the actions of neighboring countries. For example, Tanzania has reduced fuel prices in response to falling international oil prices, while Uganda is tackling fuel price inflation by cutting out middlemen who inflate costs.

Ruto’s remark that “this is not the right time to be popular” was perhaps the most eye-opening part of the meeting. He indicated that the government would prioritize its economic strategy over public approval for now, promising to engage with the public closer to the next election, when political popularity would be more important. This approach, reminiscent of electoral promises made during campaigns, raises questions about whether the administration's focus is truly on the country's long-term economic health or merely on short-term political gains.

As fuel prices continue to soar, with the possibility of reaching 300 KES per liter, the Kenyan public’s patience is running thin. The question now remains: Can Ruto’s economic strategy weather the storm, or will it lead to greater discontent?

In related news, my latest intelligence briefings delve deeper into these pressing issues, offering valuable insights into what is really happening behind the scenes. Stay tuned for more updates and exclusive content.