The next administration must emulate Germany and the US economic recovery models

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The next government will no doubt take the reins in the midst of the worst economic crisis on record. Our economy is losing thousands of jobs as the cost of living escalates.

With little effort being made to address the skyrocketing cost of living, corruption and the impact of the coronavirus pandemic, impoverished Kenyans will continue to be mired in despair and fear.

It is therefore incumbent on the new government to develop strategies to improve economic recovery, preferably by emulating the economic recovery models of the US, France, UK or Germany, which includes passing the Economic Recovery and Reinvestment Act to address economic problems.

For Kenya to bounce back from the economic doldrums, the next president must implement the model used in Malaysia and the four Asian Tigers — including South Korea, Singapore, Hong Kong and Taiwan — that promotes community ownership, commitment and accountability for the Development ensures projects that are initiated from the bottom up.

The US Democrats and like-minded parties, the Social Democrats in Germany and the British Labor Party have all pushed hard for a bottom-up approach to the economy that has historically propelled economies to recover from the Depression, and equal rights for all social shifts guaranteed.

Such economic recovery models will help develop strategic strategies that stabilize markets and attract investors, create jobs and tackle the rampant corruption that discourages domestic and foreign investment.

tax evasion

The schemes would eliminate unfair and discriminatory competition between companies and rightly put an end to tax evasion. The models would give specific instructions on how the government should cushion impoverished citizens through tax cuts.

Passing the Economic Recovery Act is the way to go as the economy of many countries has been successfully restored. In the Kenyan situation, the law would lead to a balancing act of lowering taxes for the working class and businesses. The legislation will help the government strike a balance between the interests of the country and those of the people.

For the sake of clarity, tax cuts are used as incentives for individuals and businesses to work hard and produce more goods, rather than as an incentive for consumers to buy goods and services.

The law will outline tax relief measures for county governments, state corporations, businesses and individuals. Tax breaks will help companies avoid laying off workers and make the cost of living affordable for poor households.

Ideally, the aim of the law is to flush billions of shillings into the pockets of the citizens and inject the urgently needed funds into the economy. The legislation will help get rid of counterfeit products and illicit trade that has drained large amounts of money from the government.

This legislation should be part of a concerted effort to boost the economy.

Mr Sossion is a member of the Parliamentary Committees on Education and Labor

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