The word subsidy has been in the mouths of Kenyans for the past few hours following the announcement of new fuel prices. Consumers have shared their opinions on prices, with the situation alleged to be political. The government spoke of the decision, arguing that there wasn’t enough money to subdise the product. However? What could have led to this problem ladies and gentlemen?
Subsidises cannot be a solution to the high cost of living considering the fact that every commodity’s price is high. Setting up a good foundation to lower the prices on production level is the most important factor. Kenya has faced four seasons of drought, and this is a topic of concern.
The drought has since led to low production which in return has led to a high cost of living. How can this be corrected through a subsidy? Obviously, it is quite impossible. Consumers have argued that the government is to blame, but this couldn’t be the root cause.
Last season, fertiliser prices were very high. Consumers complained of the hiked prices, but this couldn’t be solved through provision of a subsidy. We have to admit that the process needs a permanent solution, which lowers down to production.
When fertiliser prices hiked, farmers didn’t grow enough maize as it was in the past seasons. Some leased their farms to other farmers while others didn’t grow crops in their existing fields. How else can the government lower food prices when the supply is low? The subject of high cost of living can only he solved at the production level, since subsidies are not permanent solutions.
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