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Confidence in economy hits new low

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NAIROBI – A majority of Kenyans are not optimistic about the economic future of the country, a new survey released in Nairobi today reveals. The study which was released in Nairobi under a joint collaboration of the University of Nairobi and Michigan State University showed that only 35 percent of Kenyans are optimistic about their future economic condition down from 85 percent in 2005.

“This is a clear indication that the economic growth being witnessed by the country is not trickling down to the general population,” Dr. Paul Kamau, Lecturer of Developmental Economics at the University of Nairobi told journalists in Nairobi.The majority of Kenyans believe that the government is doing little to address the high cost of living.

The survey indicates that 66 percent of Kenyans are unhappy with the government over the inflated prices of commodities. The study conducted between Nov. 4 and Dec. 5 2011 in 44 out of the 47 counties also reveals that many Kenyans especially in rural areas believe that their living conditions have worsened in the last one year.

According to the survey whose sample size was 2,400 respondents, 52 percent of Kenyans hold the view that their lot has worsened with only 32 percent having the opinion that the living conditions have improved while 15 percent says nothing has changed. Among those who think their conditions have deteriorated, 56 percent are drawn from rural areas while the rest are urbanites.

Speaking during the launch of the survey results, Paul Kamau IDS Senior researcher said that many Kenyans would like the government to address economic, unemployment, and food challenges as a matter of priority. The three challenges were rated highly by survey respondents when they were asked to tick from a list, one thing they would like the government to act on. He said that policymakers should focus on people oriented growth in order to raise the living standards of the majority of Kenyans.

“The government should ensure that information flows to everyone so that people feel the development,” Kamau said. He added that the main reason for decline in optimism is the recent increase in the price of basic commodities. “The cost of food and fuel has increased in the recent past and has become beyond the reach of ordinary citizens,” he said.

According the Kenya National Bureau of Statistics, the rate of inflation in January stood at 18.3 percent. “This has led to a feeling of a generally gloomy economic environment, with the hardest hit being the low income segment,” he said. Kamau said that the results also showed that only 33 percent of those in the rural areas were optimistic about their economic future compared to 39 percent in urban areas. 

“This could cause those in the rural areas to seek job opportunities in urban areas,” he said. The poll also showed that an overwhelming majority of Kenyans still receive their information from radio. The survey found out that 35 percent of Kenyans are optimistic that their living conditions will improve in the next one year compared to 43 percent who believe that they will worsen.

A researcher at the University of Nairobi Dr. Winnie Mitullah said that around 67 percent of respondents listen to the radio every day compared to only 33 percent who said that they get their news from the television.

“Those who access the newspapers daily for news is even lower at 10 percent, while those who it get from internet stood at 6 percent,” she said. “The main reason for the country’s heavy reliance on radio for information is the lack of access of electricity by a great majority of Kenyans,” Mitullah said. “While radio can run easily on dry cell batteries, the other forms of media rely largely rely on the national grid,” he said. According the ministry of energy, only 29 percent of Kenyans have access to electricity. (Xinhua)

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LUKE MULUNDA
LUKE MULUNDAhttp://Businesstoday.co.ke
Managing Editor, BUSINESS TODAY. Email: [email protected]. ke
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