Recent demands by workers for over 100 per cent wage increase have been justified by a study that shows the cost of goods has literally wiped their purchasing power over the last seven years. According to the Institute of Economic Affairs, nominal wages among the middle class has risen by 42,000 a month yet when adjusted for inflation, the real money that ends up in employees’ pockets has reduced by a substantial SH 3,000.
The rising prices of goods and services and fall in the value of money are factors throwing more Kenyans out of the group of spenders, the middle class. A new study by the Institute of Economic Affairs (IEA-Kenya) on Thursday said that these factors — inflation — are eating into this group of Kenyans previously thought to be influencing the spending trends in the country.
Despite a larger economy, Kenya’s middle class is hardly growing. The analysis done by Institute of Economic Affairs and Nation Newsplex found that going by real income, the share of employees in the formal workforce who fall within the middle class, those presently earning between Sh 76,894 and Sh109, 324 have increased minimally.
The Chief Executive Officer of Institute of Economic Affairs, Kwame Owino during a panel discussion at Citizen Tv's opinion court.
Kenya has lost about Sh50.07 billion as a result of economic slowdowns during election years since independence, an analysis by Institute of Economic Affairs, Nation Newsplex and election data since independence reveals.
Commission of Revenue Allocation has accused the national government of frustrating devolution by denying counties necessary funding and holding on to devolved functions. In a public forum organised by the Institute of Economic Affairs (IEA) to discuss the Division of Revenue Bill, experts questioned the national government's commitment to make devolution function properly.
Analysts predict China's visibility in the construction sector to grow. According to Kwame Owino, chief executive of the Institute of Economic Affairs, an economic think tank in Kenya, China is a late comer that has smartly capitalized on Africa's infrastructure deficit.
John Mutua, a researcher at the Institute of Economic Affairs says while it makes economic sense to revive cotton farming and textiles, the government and stakeholders must first look at the things that made the industry go under.