The Covid-19 pandemic severely impacted global economies, prompting various governments to focus on recovery programmes and addressing the high cost of living.
China, the world’s second-largest economy, was hard hit, with total lockdowns lasting until 2023. However, China has since implemented strategies to ensure its economy thrives. As a key development partner of Kenya, Nairobi could benefit from emulating some of Beijing’s economic recovery lessons.
President William Ruto and his Cabinet Secretaries must demonstrate leadership, similar to China’s Politburo, which emphasised that all government officials must prioritise economic recovery. China has recently rolled out a series of significant economic stimulus measures aimed at reviving its economy, despite facing protectionist policies from some Western countries.
The People’s Bank of China introduced a broad package of monetary stimuli, including 20-30 percent cuts in key policy rates, increased liquidity in the banking system, and adjustments to mortgage rates to reduce household burdens. The Xi Jinping administration also announced measures to boost consumption, including pledges to increase fiscal spending.
China’s decision to increase credit supply and lower borrowing costs reflects the government’s commitment to reviving credit activity among consumers and boosting business confidence.
Kenya could adopt similar strategies to stimulate its economy. Many Kenyans feel that the government is doing little to alleviate their financial struggles, and the Ruto administration should consider China’s example in turning around the economy.
Creating a conducive environment for investors, increasing manufacturing, and reopening businesses that closed during the pandemic would help create jobs and revive the economy.
Economic recovery, however, is not solely the government’s responsibility. The Kenya Kwanza administration, through the Treasury, must collaborate with key stakeholders in the economy.
Transparency in government decisions is essential, and any moves made should be open to public scrutiny. President Ruto’s push to lower commercial lending rates is a positive step that could increase borrowing, expand businesses, and generate job opportunities for Kenyans.
China’s recent economic stimulus package aims to clear uncertainty in the market and stabilise the country’s economic future. This bold move showcases the kind of decisive action any government must take to reduce pressure on its citizens.
At present, Kenyans expect the government to restore confidence in the market, ensuring that existing investors remain in the country, while also attracting new ones. By fostering an environment where businesses can grow and thrive, Kenya’s economy can get back on track.
Over the past decades, China has proven to be a strong development partner for Kenya, frequently implementing large-scale stimulus measures to recover from economic downturns. These policies have significantly rejuvenated the Chinese economy.
Kenya can learn from Beijing’s example: fixing the economy requires less rhetoric and more action. China’s sustained efforts to diversify markets, boost demand, and improve competitiveness have eased pressure on its citizens and positioned the country for further growth. Kenya should follow suit!
The writer is a journalist and a communication consultant
