New Cabinet trio sign up for tough job as economic pressure mounts

The three newly sworn-in Cabinet Secretaries will be stepping into office this Monday in the background of a government struggling to redeem its image due to the country’s dwindling economic fortunes.

When they assume their duties, the trio will have a lot on their plates considering that their dockets, namely, Agriculture, Trade and Investment, and Information, Communication and Technology are critical to the country’s economic growth. 

The trio of Mutahi Kagwe (Agriculture and Livestock), Lee Kinyanjui (Trade and Investment), and William Kabogo (ICT) were appointed to the Cabinet in what political pundits perceived as President Ruto’s efforts to reach out to the Mt Kenya region following the impeachment of Deputy President Rigathi Gachagua.

.

Keep Reading business

•  New KRA boss Muriithi wants outdated annual Finance Bill scrapped
•  Directline insurance moves to repair image amid shareholder wrangles
•  Kenya-UAE deal could be a catalyst for job creation and an economic booster
•  Survey reveals housing project has missed the mark, is doomed to fail
•  TikTok's US future in limbo after Supreme Court ruling

READ: New CSs Mutahi Kagwe, William Kabogo and Lee Kinyanjui sworn in

Observers argue that the three Cabinet Secretaries are joining the government at a time when the country’s economy has been on the decline and Kenyans have an issue with government performance in critical sectors.

Political analyst Andrew Nyabuto says the trio will be walking a political tightrope as they strive to deliver to the people in a regime that has lost public trust and confidence due to its handling of public affairs since it assumed office two and half years ago.

“The government has already destroyed all its communication channels with the public and anybody appearing to work with it is being perceived negatively. But I hope that the trio, who are accomplished political operatives and experienced public administrators, are up to the task,” Nyabuto said.

Nyabuto called on President Ruto to allow the Cabinet Secretaries to plan their work schedule, which they should communicate to stakeholders and jointly work to achieve their set targets, instead of micro-managing government departments.

“The President should supervise Cabinet Secretaries and give them realistic and achievable targets, and then give them a free hand to manage their respective dockets to turn around the country’s economic fortunes and other problems facing the country,” Nyabuto added.

Analysts argue that the trio has joined the broad-based government at a time when public trust and confidence in the Ruto administration has been waning due to a multiplicity of factors, top amongst them being the country’s declining economic fortunes.

This atmosphere of dissatisfaction can be attributed to numerous factors, including unfulfilled pre-election promises, a struggling economy, high youth unemployment, collapsed health and education systems, and the recent abduction of government critics.

“The three are stepping into office during a challenging period for the Ruto administration, characterised by a crisis of trust and credibility. They will need to work hard to restore confidence in the Cabinet and the Executive,” said Gitile Naituli, a professor of leadership and management.

Lack of confidence

Prof Naituli explained that President Ruto’s decision to reach out to Raila Odinga and Uhuru Kenyatta to include their allies in the government indicates a lack of confidence in his political allies.

“The new Cabinet Secretaries have a significant challenge ahead. They must demonstrate that this is not business as usual and bring new vision, ideas, and approaches to their roles,” he added.

A report by the Kenya National Bureau of Statistics (KNBS) indicates that the country’s economic growth for the three months to September 2024 grew by 4 per cent down from 6 per cent in the corresponding period in 2023.

KNBS attributed the decelerated growth to the general decline in most sectors of the economy, especially agriculture, trade, manufacturing, construction, mining and quarrying, which employs a large number of people.

The World Bank on its part projected Kenya’s real Gross Domestic Product (GDP) in 2024 to grow by 4.7 per cent, with the economy further being projected to grow at a slower rate in 2025.

The KNBS reports indicate that the agricultural sector, which contributes 21 per cent of the country’s GDP, registered a slower growth of 4.2 per cent, compared to 5.2 per cent growth in 2023.

According to the Central Bank of Kenya (CBK) Annual Report and Financial Statement for 2023/2024, the country’s manufacturing sector recorded the steepest decline, falling from 18 per cent to -0.6 per cent in the year under review.

The CBK report adds that trade dropped from 12.5 per cent to 1 per cent while building and construction plummeted from 4.8 per cent to -8.3 per cent while transport and communication fell from 19.9 per cent to 4.4 per cent.

According to Julius Kariuki, an economic analyst, the sorry state of the country’s economic affairs as contained both in the KNBS and CBK reports was an indication of the uphill task facing the Ruto administration in its effort to turn around the country’s economy.

Dr Kariuki said both Kinyanjui and Kagwe would be heading two dockets that are critical in the revival of the country’s economy.

“Agriculture and Livestock Production, and Trade and Investment, and manufacturing are the key drivers of our economy. The tasks ahead for the two Cabinet Secretaries is enormous. The duo have performed well in their past stations and Kenyans are waiting to see how they will fair this time round,” Kariuki added.

He said the duo must work with their colleagues in the government to restructure the current government tax and tariff regime to improve the business environment in the country and make exports competitive.

According to President Ruto, Kagwe’s top priority will be to spearhead reforms in the agricultural sector to enhance productivity, market access, and value addition.

The President emphasized the government’s shift from consumption subsidies to support for production, highlighting progress in providing affordable fertiliser to farmers.

“The transformation in agriculture is already underway, and we expect enhanced productivity, value addition, and market access to be your main focus,” Ruto said.

During his appearance before the National Assembly Committee on Appointments earlier in the week, Kagwe pledged to dismantle the cartels that he acknowledges exist within the ministry. 

ALSO READ: Will Uhuru men stabilise Kenya Kwanza's shaken political vehicle?

“I am quite aware that there are cartels in this ministry. I know they will fight back. I expect resistance, but I am ready for the battle,” he said.

Lee Kinyanjui, the new Trade and Industry, will have to create new opportunities for Kenyan products, strengthen international trade agreements, and improve market access.

“The trade between Kenya and the UAE stands at Sh370 billion, and we expect this to grow further,” Ruto said, referencing the recently signed Comprehensive Economic Partnership with the UAE.

Kinyanjui’s docket will also oversee the operationalisation of 47 county aggregation centres and six special economic zones, which are aimed at boosting agro-processing and industrialisation.

According to the Kenya Kwanza economic transformation agenda, the initiatives will open markets and create more jobs and economic opportunities for Kenyans.

Kinyanjui takes over the department at a time when the process of establishing 18 County Aggregation and Industrial Parks (CAIPs) has stalled.

In the ICT docket, the former Kiambu Governor will spearhead Kenya’s ambitious digital strategy, which includes rolling out 100,000 kilometres of fibre optic cables and establishing ICT hubs across all wards in the country.

The government has secured funding for the first 53,000 kilometres of fibre optic and 145,000 computers for ICT hubs in all wards.