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2019, Blog, english, Kenya

Kenya: When the economy slows down

Right now, Kenya’s weak. State revenues have fallen massively. New positions are only being filled for a limited period of time, and funds are being cut for state-supported or funded projects. Whether hard times or chaos will show the future. But the present is anything but easy.

Infrastructure programmes are currently being cancelled or postponed. Roads, bridges or dams are not being built or repaired. Not only is the existing buildings weakened, but urgently needed jobs cannot be maintained or created.

By cutting funding for projects and initiatives, urgent jobs are cut. New hires are only made on a contractual basis so as not to have to grant amenities in the civil service. All in all, this will also affect the normal economic world. Less purchasing power turns the spiral downwards after even fewer jobs and even less income.

The effects on the rental market are particularly significant in the metropolises. The loss of income has already led to many people no longer being able to pay their rent. Few landlords have reacted to the economic situation and reduced rents. Vacancy is not uncommon. It is not uncommon for five or six families to share a flat.

The problems are also noticeable in the business area. In the large shopping centres, many retail spaces are now vacant.

The sale of houses is weakening enormously. It takes several years to sell family houses ready for occupancy. In some gated communities, more houses are empty than have been sold.

At the moment nobody knows where the development will go. Future prospects for the young generations, who come well educated from the universities, do not exist at the moment. Many dreams will vanish. Protests on the streets are also possible at the moment. The attempt to transfer the western lifestyle to East Africa may have reached its limits. Filled shelves in modern shopping centres, a high volume of construction work are of no use to the population if there are no long-term job prospects and no income.