Abacus Wealth Management

Sanctions and the Polls: Make The Right Choice

Once upon a time, Zimbabwe was a great African nation. The people were proud, business was booming and life was generally great. President Robert Mugabe was legendary. It was referred to as the “bread basket” of sub-Saharan Africa. Then, one simple move changed all that; President Mugabe ordered the reclamation of white-owned farms.

It spelled doom for the nation and its economy. It never got better for them since. Their president refused to step down, citing that “God will remove him from power.” They underwent hyperinflation, such that they had billion shilling currency notes. They had to dollarise their economy. The people of Zimbabwe, both rich and poor, have suffered greatly as a result. They were sanctioned at some point, because of poor leadership. They tried to restructure their government and even share power with opposition, but the economy hasn’t healed well.

Our great country Kenya is a model for east and central African countries. We are an economic powerhouse on this side of the continent. Our economy has grown despite challenges such as the 2007-2008 post-election violence, we have survived currency inflation and droughts, but most importantly, we survived a harsh 24 year cruel regime. We are proud of the strides we have made in the past few years. Look all around you, construction is everywhere. Homes are affordable, banking services available to many, decent healthcare services…we are the envy of many, poorer countries in the continent.

The elections are now 3 months away. The weekend saw a unity between two aspiring presidential candidates, who are going on trial at the ICC at the Hague in the Netherlands for crimes against humanity. What astounded me is the sheer number of people that came to view and support these two candidates. Many of those that came to see the rally, live below the poverty line of $1 (KES 85 bob a day). They live in makeshift homes that are often victim to forces of nature such as floods. They lack access to proper health care, the few that can, are hardly able to pay for it. They school in deplorable conditions. These are the everyday labourers  maids, security guards and matatu conductors that you see and interact with daily.

 They know they live in bad conditions, but they truly don’t know what it would be like if it got worse, instead of better. They do not know the power economic sanctions can have on a country and it’s people.

A number of journalists and opinion writers have expressed and predicted a dire situation for the country if these two candidates won the elections. We would be sanctioned; no more foreign exchange, no more export or import of goods, withdrawing bodies and multi-nationals, great inflation of our currency, failing systems such as public health and sanitation. . After inflation has taken place, food will get expensive. Without proper farming tools and equipment, crops will fail. The poor will go hungrier, the hungry will just die. We will truly become those pictures that those abroad see in the OXFAM commercials for relief donations. Human resources would leave the country-skills we have and need, will no longer be available. Corruption would be rampant, because who will stop them from stealing public funds? New laws that often favour the elite would be implemented, leaving those around even more frustrated.  It is a horrible situation to imagine, moreso live with.

Can you just imagine paying over KES300 for a simple half kilogramme of maize meal flour? Or KES 500 for cooking oil in it’smallest form? I remember seeing images of people carrying wheelbarrows of money shortly before the Zimbabwean economy was dollarized. The middle class won’t be spared, It’s a bad enough some people are paying an eye watering KES 270 for a simple pie at a coffee house such as Java. Would you willingly pay over KES1000 as a result of currency inflation for that same pie, as a result of people voting for the wrong leader?

Let that not happen here as a result of poor leadership choice.

Zimbabweans have gone through the above and more. They voted for President Mugabe again and things got worse. The poor barely survive nowadays. Systems have failed in that country.
How will our own Kenyans get through with these leaders in power? The poor will get frustrated at having being lied to. They’ll notice that their conditions haven’t gotten better, they just got worse. Civil unrest will occur, and Kenya will become a sorry state of failed systems and legislature.

Where will you spend your money if Kenya became a deplorable state? We must not let Kenya become a country like Zimbabwe. I can only hope that the masses make the right decision when it comes to voting at the polls.

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