Ruto's Stance on the Cost of Living: A Political Gamble?

 A closed-door parliamentary group meeting at State House revealed a tense exchange between President William Ruto and Kenya Kwanza legislators. Frustrated by the rising cost of living and hostile reactions from their constituencies, these lawmakers appealed to the president to address the issues of high taxes and soaring fuel prices. However, Ruto's response shocked many and underscored the administration’s current economic strategy.

The Legislators' Plea

Politicians attending the meeting voiced their struggles, highlighting the hostility they face from citizens who feel burdened by Kenya’s worsening economic situation. They urged the president to reconsider his tax policies and find ways to alleviate the financial strain on ordinary Kenyans.

Ruto’s Response: “This is Not the Right Time to Be Popular”

President Ruto reiterated his administration’s commitment to not subsidize consumption, particularly fuel. Instead, he emphasized the need for market-driven economics, stating that government funds should not be used to artificially lower prices. He added, “This is not the right time to be popular. When the right time comes, I will go and engage the people.”

This response suggests that the administration plans to shift its focus closer to the next election, aiming to regain public favor at a more politically advantageous time.

A Questionable Economic Approach

Economists argue that while subsidies are not ideal in a thriving economy, Kenya’s current situation is far from ideal. With high taxes, limited employment opportunities, and a struggling economy, the burden on citizens continues to grow. Ruto’s policy of avoiding consumption subsidies, while simultaneously raising taxes, has been criticized for exacerbating financial hardships.

Additionally, Ruto attributed the rising fuel prices to external factors like the war in Ukraine and the conflict in the Middle East. However, neighboring Tanzania has reported a reduction in fuel prices due to falling international crude oil prices, raising questions about Kenya's pricing model. Uganda, under President Yoweri Museveni, has also begun tackling the influence of middlemen in fuel transactions, a factor that might also be contributing to Kenya’s high prices.

A Political Gamble

Ruto's remark about prioritizing public engagement only during election periods highlights a risky political strategy. It assumes that voters will be swayed by promises made closer to the polls, despite unmet expectations from the current term. Given the rising discontent, this approach may backfire, as trust in leadership erodes further.

Final Thoughts

The president’s stance reflects a clear commitment to free-market principles, but it also reveals a concerning detachment from the immediate realities faced by ordinary Kenyans. With fuel prices predicted to hit Ksh 300 per liter and no immediate relief in sight, Ruto’s administration faces mounting pressure to adjust its policies or risk further alienation from the public.

For now, the focus remains on whether these economic and political strategies will hold up as the administration approaches future elections.