Market watchers react to Kenya’s new cabinet appointments

Kenya's President William Ruto recently appointed the second batch of Cabinet Ministers in an effort to address ongoing protests over the high cost of living and tax hikes. While the move has sparked mixed reactions among market watchers and economists, many remain hopeful about the country's economic prospects. Odhiambo Ramogi, CEO of Elim Capital, shared his insights on the new cabinet appointments and the challenges ahead for the Kenyan economy. Ramogi expressed concerns about the reliance on politicians rather than professionals in the Cabinet, emphasizing the need for competent individuals to steer the country out of its economic crisis. He highlighted key issues in the finance docket, particularly the looming debt payments and budget deficits that the new appointees will have to grapple with. The ballooning public wage bill and limited options for addressing the country's debt burden also pose significant challenges for the government. Despite the recent downgrade of Kenya's economy by Moody's, Ramogi proposed a focus on production and investment as a way to stimulate economic activity and generate revenue. He urged the government to prioritize sectors like agriculture and manufacturing to boost local production and reduce dependency on imports. Ramogi underscored the need for strong leadership in the Treasury to guide the country's economic policies and steer it towards sustainable growth. By concentrating efforts on a specific sector and implementing targeted policies, he believes the government can effectively address the current economic challenges and pave the way for recovery.