Rising inflation hits East African economies

Kenya's capital, Nairobi, came to a standstill today as businesses experienced a slowdown, with citizens staging mass protests against the high cost of living. CNBC Africa discussed the economic challenges facing the region with Professor of Accounting, Ngotho Karioki. The focus of the conversation was on the critical role of governance and accountability in driving economic growth in East African countries. Karioki highlighted the mismanagement of resources due to poor governance, leading to poverty, unemployment, and wasteful spending of ill-gotten wealth. He emphasized the need for a societal consensus to criminalize corruption and take decisive action to ensure fiscal discipline. The lack of accountability and transparency was identified as a major obstacle to economic prosperity. Karioki proposed decentralization of decision-making processes to empower grassroots communities and enhance local accountability. Additionally, he stressed the importance of continuous auditing and pre-audits to prevent financial mismanagement. The interview concluded with Karioki praising countries like Ghana, Namibia, Tanzania, and Ethiopia for their efforts to uphold good governance practices and combat corruption. These nations serve as models for others aspiring to safeguard public resources and promote sustainable economic development.