Githae: Shilling and IDPs ‘my priorities’
Acting Finance Minister Robinson Githae on Friday listed high interest rates, unstable shilling, huge import bill, and the resettlement of internally displaced people as the key issues that he will address when he sets foot at the Treasury on Monday.
Mr Githae told the Saturday Nation that as soon as he gets the blessings of the outgoing minister Uhuru Kenyatta at an official handover scheduled for Monday, his first task will be to sit down with MPs and agree on a way forward regarding their clamour for a law to cap interest rates. (READ: A full plate awaits Githae)
Help the borrowers
“We have to sit down and reach an agreeable and amicable solution. The aim is to help the borrowers, not to kill the banks,” he said.
The minister, who will take the reins at The Treasury in an acting capacity, said his priority would be reducing the import bill by cutting down on non-essential imports and other goods that are produced locally.
“We must reduce the import bill. Why, for example, should we import eggs, oranges, sausages, maize, rice, sugar and wheat?... In my view, the only thing we should be importing is oil,” Mr Githae said.
The minister’s argument is that if the imports are reduced, the pressure on the shilling by importers will ease and that will not only strengthen the shilling but also make it stable.
He added that for the country to focus on development projects, the resettlement of IDPs will have to be concluded quickly.
“By the end of February, there should be no IDP left in the camp,” he said. He said the displaced should be given money to search for land.
Though it is in the middle of the financial year and it is still unclear how much money is available for the resettlement of the IDPs, the minister said, the Treasury “will pull all stops to comply with the President’s directive that there should be no IDP in the camp”.
He added that Kenya should leverage on its prime location on the East Coast of the continent, the access to a major trade route via the Indian Ocean, and the busiest international airport in the region to grow its economy.
Money in the pockets
The next elections and the setting up of devolved governments will be dealt with in the next Budget, something which, Mr Githae is eager to present to the House come June.
“We have to continue with infrastructure development. The road to Addis Ababa, the one to Moshi and the Lamu port are my priority. We must bring business to the ports that we have,” he said.
The vice chairman of Parliament’s Finance Committee, Prof Philip Kaloki, told the Saturday Nation that the new minister has to direct his efforts at ensuring that Kenyans have sufficient money in their pockets.
“He’s got to read the mood of the country and make sure that the purchasing power of the consumers is protected. He should do that by handling the exchange rate, inflation and interest rates,” said Prof Kaloki.
Mr Githae, the MP added, should also crack down on the oil cartels that have been driving up prices of basic commodities. He is also expected to make the oil pipeline system in the country very efficient.
The expectation is that the perennial “supply-side shocks” should be addressed by shoring up the strategic grain reserves and pumping more money to irrigation, so that food supply is guaranteed throughout the year irrespective of the weather patterns, Prof Kaloki said.
The IMF has predicted a tough economic year for Kenya.
