Unemployed and Totally Burned out.

Why are unemployed Kenyans feeling the burnout? 

                                                (Credit: Alamy Stock Photo)

In recent times, Kenya has witnessed a surge in unemployment rates, leaving a growing number of its citizens grappling with the harsh realities of joblessness. What's particularly concerning is the rising phenomenon of burnout among the unemployed population. This article delves into the reasons why unemployed Kenyans are feeling the burnout, exploring the economic, social, and psychological factors that contribute to this distressing trend.

One of the primary contributors to the burnout experienced by unemployed Kenyans is the daunting economic challenges they face. The lack of job opportunities, coupled with the high cost of living, creates a precarious situation for those without a stable income. As they struggle to make ends meet, stress and anxiety mount, leading to burnout.

Also seeThe Evolution of Income: Online Work vs. Traditional Employment in Kenya.
In Kenya, where the informal sector plays a significant role in employment, the pandemic and economic downturn have disproportionately affected small businesses, resulting in widespread job losses. With limited government support and a competitive job market, unemployed individuals find themselves in a constant state of financial uncertainty, intensifying the burnout experience.

                                (Image courtesy of The People Daily)

Beyond economic hardships, unemployed Kenyans face the weight of societal expectations and perceptions. In a culture where one's worth is often tied to their professional success, being unemployed can trigger feelings of shame and inadequacy. The societal stigma surrounding joblessness exacerbates the mental health challenges that individuals already face.

Mental health remains a topic often overlooked in Kenya, with societal attitudes contributing to the stigmatization of seeking professional help. The mental toll of unemployment is profound, leading to increased rates of depression and anxiety. The fear of being judged and the struggle to maintain a positive self-image amid societal pressures amplify the burnout experienced by the unemployed population.

See Ruto's ZAKAYO-Taxation: The Failure of "mama-mboga" and Wheelbarrow Economics.

There is also the issue of uncertain future and diminished self-esteem. The lack of a clear path forward and the uncertainty surrounding future employment prospects contribute significantly to burnout. Many unemployed individuals find themselves stuck in a cycle of job applications, interviews, and rejections, leading to a diminished sense of self-worth and purpose.

The constant uncertainty about when their situation might improve takes a toll on mental well-being. The absence of structured routine and defined goals that employment often provides can leave individuals feeling adrift, further intensifying burnout. As the days turn into weeks and months of unemployment, the emotional toll on self-esteem becomes increasingly burdensome.

                                        (Photo credit: Campusbiz Kenya)
Furthermore, in a rapidly evolving job market, staying relevant to current skills is crucial for employability. However, unemployed Kenyans often face barriers to accessing skill development opportunities. Limited resources, both financial and infrastructural, hinder their ability to acquire new skills and stay competitive in the job market.

This lack of access to training programs and educational resources compounds the challenges of job seekers. It not only limits their chances of finding employment but also contributes to a sense of stagnation and hopelessness, intensifying burnout. Bridging the gap between skill development initiatives and the unemployed population could be a crucial step in addressing this aspect of burnout.

Last but not least, while individual efforts are undoubtedly important, systemic changes and support structures play a vital role in alleviating the burnout experienced by unemployed Kenyans. Government initiatives to boost employment, provide financial assistance, and invest in education and skill development can have a significant impact. Additionally, community support and destigmatization of unemployment are essential for creating an environment where individuals feel comfortable seeking help. Establishing counseling services and mental health awareness programs can address the psychological toll of unemployment, offering much-needed support during challenging times.

In conclusion, the burnout experienced by unemployed Kenyans is a multifaceted issue rooted in economic struggles, societal pressures, mental health challenges, and a lack of access to essential resources. Recognizing and addressing these factors is crucial for mitigating the adverse effects of unemployment on individuals and the broader society.

Moving forward, a comprehensive approach that combines governmental support, community initiatives, and individual resilience is necessary to break the cycle of burnout. By fostering an environment that values individuals irrespective of their employment status and by providing the necessary resources for skill development and mental health support, Kenya can pave the way for a more resilient and empowered workforce.

Atwoli: The Turncoat or The Master of Irony?

It seems a few years of daliance and romance with the Ruto administration is coming to an end, or is it?

(Image courtesy of x.com)

In the realm of trade unions, where the battle cry is often for the rights and welfare of the hardworking citizens, one man has managed to turn the narrative into a tragicomedy of epic proportions. Francis Atwoli, the head honcho of Kenya's Central Organisation of Trade Unions (COTU), has embarked on a journey that can only be described as a rollercoaster of contradictions.

                                            (Image courtesy of Citizen TV)

For over three years, Atwoli has been the government's cheerleader, waving pom-poms in support of policies that have left workers in the lurch. His sudden metamorphosis into the workers' messiah reeks of irony and leaves many questioning his motives.

One cannot forget the Finance Act of 2023, a legislative monstrosity that introduced regressive taxation, sending shockwaves through the economy. Atwoli, in a stunning display of loyalty to the powers that be, threw his weight behind this disastrous policy. The very man entrusted with safeguarding the interests of workers appeared to have developed a peculiar taste for biting the hand that feeds the labor force.

Also see Ruto's ZAKAYO-Taxation: The Failure of "mama-mboga" and Wheelbarrow Economics.

Atwoli's support for the government's regressive taxation didn't just stop at applause from the sidelines. He actively championed these policies, policies that resulted in job losses and inflated the cost of living for ordinary Kenyans. It's almost as if he believed workers were yearning for a heavier burden on their shoulders.

However, in a plot twist that would make even the most seasoned scriptwriter raise an eyebrow, Atwoli has now pivoted to a stance that seemingly opposes the very government he was singing praises for not so long ago. His sudden criticism of the government's irresponsible borrowing practices, accusing them of plunging the country into a debt hole, has left many scratching their heads.

One cannot help but wonder: Is Atwoli a turncoat, or is he the ultimate master of irony? It takes a special kind of skill to flip-flop so seamlessly between endorsing detrimental policies and donning the cape of a workers' advocate. From giving Azimio coalition that Omanyala-sprint to go and kiss the president's cheeks to now calling out the president? Who is Atwoli? Do we really know this Man?

In yesterday's tirade against the government, Atwoli pointed fingers at the International Monetary Fund (IMF) and the World Bank, claiming their loans come with conditions that make life unbearable for Kenyans. This newfound concern for the well-being of ordinary citizens seems almost disingenuous, coming from a man who was complicit in endorsing policies that pushed them to the brink.

Accusing the Central Bank of Kenya (CBK) of intentionally devaluing the Kenyan shilling, Atwoli now paints himself as a defender of economic stability. It's a narrative that clashes violently with his past support for measures that contributed to the very economic turmoil he is now decrying. 

    Also read Navigating Headwinds: Kenya's Best-Performing Industries Amidst Taxation Challenges.

While releasing a report titled 'Turning The Tide On Kenya’s Economy: Recovery and Prosperity Through The Workers’ Lenses,' Atwoli suddenly became the voice of reason, highlighting how current taxation policies have negatively impacted Kenyan employees. It's as if he just discovered the consequences of the policies he previously championed.  I look forward to reading the content of the COTU report though.

In a twist that borders on the absurd, Atwoli questioned the government's wisdom in borrowing, conveniently forgetting his earlier endorsement of unmitigated borrowing. It's almost as if he expects Kenyans to suffer the consequences of policies he once passionately supported without any memory of his prior stance.

The call for economists to advise the government on the dangers of over-borrowing now sounds like a desperate attempt to distance himself from the chaos he helped create. It's a classic case of closing the barn door after the horses have bolted. As he proposes stakeholder engagement and urgent solutions to lower the cost of living, one can't help but marvel at the audacity of this theatrical performance. It's a comedy of errors, with Atwoli playing the lead role of a turncoat turned savior.

In the grand finale of this tragicomedy, one can't help but wonder if Atwoli will continue to dance on the tightrope of irony or if he'll finally choose a side and stick to it. Until then, the workers of Kenya remain an unwitting audience to this theatric spectacle of contradictions.

Can you imagine Atwoli's inner monologue?  

The Evolution of Income: Online Work vs. Traditional Employment in Kenya.

Is it really feasible for all of us?

Today I was wondering, with the tough economic times, how can one really make money in Kenya right now? The question is, how can one make a decent living in Kenya? We have a seemingly clueless government with the worst economic blueprint and the most regressive tax regime. Industries are closing down, others are downscaling their operations and laying off employees, while others are barely hanging on. While some may argue that the government is working to improve things, the reality is that many people are unemployed today more than any other time since 2016. To make matters worse, the prospects of getting employment right now seems to be dismal. For instance, if you do a Google search about how to make money in Kenya right now, almost all the answers will point you toward "making money online." It's like there is no money offline anymore, but why?

                                                                            (image courtesy of instasend)

In the face of tough economic times, the search for viable income sources in Kenya has taken a digital turn. Online work has become a prevailing trend, offering opportunities for income generation in a landscape where traditional industries are struggling. However, the shift to the digital realm is not without its challenges, and it raises crucial questions about accessibility and feasibility for everyone.

seehttps://ecofintechfuturist.blogspot.com/2024/01/navigating-headwinds-kenyas-best.html

Over the past few years, the digital revolution has redefined the way we work and earn money. Kenya, like many other nations, has witnessed a surge in online work opportunities. Freelancing platforms, remote jobs, and e-commerce ventures have become attractive alternatives for individuals seeking financial stability. The allure of flexibility, global market access, and the potential for self-employment have fueled the migration from traditional employment to the online sphere.

Challenges in Traditional Industries

The traditional job market in Kenya has faced considerable challenges, ranging from economic instability to policy issues. Industries have downsized, and many businesses have had to shut their doors, leaving employees without job security. The government's economic policies and regressive taxation have further exacerbated the situation, pushing individuals to explore alternative avenues for income.

Industries that were once pillars of employment, such as manufacturing and agriculture, are grappling with various challenges, making it difficult for workers to find stable and well-paying jobs. This backdrop has created fertile ground for the rise of online work as an escape route for those seeking financial stability.

The appeal of online opportunities

Online work presents a host of advantages that make it attractive, especially in uncertain economic times. Here are some factors contributing to the shift:

1. Global Reach:

   • Online platforms allow individuals to tap into a global market, expanding their potential client or customer base beyond local constraints.

2. Flexibility:

   • Many online jobs offer flexibility in terms of working hours and location, enabling individuals to balance work and personal commitments.

3. Skill-Based Opportunities:

   • The digital space rewards a diverse set of skills, allowing individuals to monetize talents that may have been underutilized in traditional settings.

4. Entrepreneurial Ventures:

   • E-commerce and digital entrepreneurship enable individuals to create and manage their businesses, fostering a spirit of independence.

What about the digital divide?

While the allure of online work is undeniable, it is crucial to recognize the digital divide that exists. Not everyone has easy access to the internet or possesses the skills required for online ventures. In a country where infrastructure challenges persist, relying solely on online opportunities can exclude a significant portion of the population.

Moreover, not all traditional skills seamlessly translate into the digital space. Industries like manufacturing and agriculture, deeply ingrained in the Kenyan economic fabric, require practical skills that may not find a direct parallel online. The shift to a digital economy raises questions about the inclusivity of this transition and its impact on those who cannot easily adapt.

The accessibility challenge

The accessibility challenge extends beyond internet availability. Online work often demands a certain level of digital literacy and specialized skills. For individuals accustomed to traditional industries, acquiring these skills can be a daunting task. The rapid pace of technological advancement further widens the gap, making it difficult for some to catch up.

Here comes the duality of income generation!

In navigating the economic landscape in Kenya, the duality of income generation is evident. Online work provides a lifeline for many, offering a way out of the limitations imposed by traditional industries. However, it is not a panacea for everyone. The transition to a digital economy raises questions about inclusivity and the fate of those left behind.

As we ponder the future of work in Kenya, we must confront the reality that online opportunities are not universally accessible. The challenges of digital literacy, internet access, and the adaptability of skills create a dichotomy where some thrive in the digital age while others struggle to keep up.

Now what?

In the end, the question remains: In a country undergoing a seismic shift in its economic landscape, how do we ensure that the benefits of online work are accessible to all, leaving no one behind? The answer may lie in a balanced approach that leverages the strengths of both online and traditional avenues, creating a more inclusive and resilient economy for all Kenyans to thrive.

 Navigating Headwinds: Kenya's Best-Performing Industries Amidst Taxation Challenges.

                                     (Image courtesy of urbankenyans.com)

Kenya, a vital economic player in East Africa, is facing a delicate balancing act as it strives for sustained growth while grappling with the impact of high taxation imposed by the government. In this in-depth analysis, we will explore the best-performing industries in Kenya, taking into consideration the challenges posed by increased taxation and how it might shape the future landscape.

Agriculture's Resilience: Sustaining Growth Amid Tax Hurdles

Despite the introduction of high taxation, Kenya's agricultural sector remains resilient. In the face of fiscal challenges, the sector, which contributes significantly to the country's GDP, has continued to thrive.statista The 'Big Four Agenda' aimed at achieving food security has driven investments in Livestock, Fisheries, and Irrigation for Crops. However, increased taxes may pose a threat to the affordability of farming inputs and impact the livelihoods of small-scale farmers. Construction and Real Estate: Adapting to Tax Dynamics

The construction and real estate industry, a key driver of Kenya's economic growth, faces challenges stemming from high taxation. The sector, which experienced a growth rate of 7.4% in 2017, now navigates the complexities introduced by increased taxes. Government initiatives for affordable housing align with the industry's objectives, but the added financial burden may slow down projects and potentially affect housing affordability. Tech Sector's Innovation vs. Tax Constraints

Kenya's technology sector, heralded for its innovation, encounters new hurdles with heightened taxation. The industry's rapid growth in mobile technology, fintech, and artificial intelligence is now under scrutiny as increased taxes may impact consumer spending and stifle innovation. Striking a balance between tax compliance and fostering a conducive environment for technological advancements is crucial to the sector's continued success.

Casino Industry Faces Taxing Times

In the world of multimillion-dollar casinos, the introduction of higher taxes poses a significant challenge. The casino industry, thriving on technological integration, must navigate the delicate balance between maintaining profitability and complying with increased taxation. Online casinos, once a source of exponential growth, may face regulatory challenges that could impact their contribution to the overall economic landscape. Transportation Under Tax Pressures

Kenya's transportation industry, a vital hub for Eastern and Central Africa, faces increased taxation challenges. The sector's role in facilitating trade and commerce is crucial, but higher taxes may lead to elevated operational costs. Striking a balance between maintaining efficient transportation systems and meeting tax obligations will be essential to sustain growth in this critical industry.

Investor Sentiments in the Face of Taxation

The Nairobi Securities Exchange (NSE) reflects the broader impact of increased taxation on investor sentiments. Large-cap stocks, particularly those with exposure to foreign investors, may continue to face challenges. The resilience of small-cap stocks, however, presents an interesting dynamic, with retail investors seeking opportunities that offer potential returns despite the tax-induced uncertainties.

Navigating Challenges for Future Prosperity

As Kenya's best-performing industries grapple with the implications of higher taxation, the path to future prosperity has become a nuanced journey. The resilience of agriculture, adaptability of construction and real estate, innovation in the tech sector, regulatory adjustments in the casino industry, and the balancing act in transportation underscore the need for strategic measures. The government's role in fostering an environment that encourages growth while addressing fiscal needs will be pivotal. As challenges loom, the dynamism of Kenya's economic landscape suggests a potential for adaptation, innovation, and a sustainable path forward despite the taxing times.

The Unholy Communion: The Joke That Is the Kenyan Judiciary!

The meeting between President Ruto and CJ koome reminds me of the Bible story of Eve and the sapernt in the Garden of Eden, we know they met, but what they discussed is a mystery. However, the outcome is known and wouldn't be good at all.

                                        (Image courtesy of Royal Media Kenya)

Earlier yesterday, President William Ruto met the chief justice, Martha Koome, under the pretext of discussing the relationship between the three arms of government. According to an article by The Star, the parties agreed on one thing: how to address corruption in the judiciary. But knowing who Ruto is, at least from history, one may question the president's motive. This meeting raises eyebrows as it comes on the heels of weeks of the president openly attacking the judiciary. Regardless of the sheenanigans going on in this country, we all know that the three arms of the government need to respect each other without the need for weird meetings. As a matter of fact, the delicate balance between the three arms of government—executive, legislature, and judiciary—is a cornerstone of a healthy democracy. This rendezvous, perceived by many as unnecessary and unwarranted, has sparked concerns about the potential erosion of judicial independence, echoing a dangerous trend seen in other nations where the judiciary succumbed to the clutches of executive power.

The principle of the separation of powers is fundamental to the proper functioning of a democratic society. Each arm of government—executive, legislature, and judiciary—must operate independently, free from interference or intimidation. President Ruto's meeting with Chief Justice Koome, amid his public criticism of the judiciary, raises questions about the motives behind this gathering. The constitutionally mandated independence of the judiciary is now at risk of being compromised.

President Ruto's dictatorial tendencies have already manifested in the capture of the legislature, and the judiciary now appears to be the final piece in his puzzle of control. The meeting, framed as a discussion on the relationship between the arms of government, could be a veiled attempt to coerce or subdue the judiciary into an unholy alliance that undermines its autonomy.

Consequently, this meeting was an unconstitutional undertaking. I understand that the very essence of the separation of powers is enshrined in the Constitution to prevent any arm of government from exerting undue influence over the others. President Ruto's meeting with Chief Justice Koome, given its timing and the context of his previous attacks on the judiciary, seems to violate the constitutional principles of separation of powers. This raises serious concerns about the constitutionality of the meeting and the potential consequences for the judiciary's ability to dispense justice independently.

If President Ruto succeeds in subduing the judiciary, the repercussions for the dispensation of justice in Kenya could be severe. A compromised judiciary is unlikely to act as a check on executive power, and justice may become a casualty of political manoeuvring. It is highly unlikely that the judiciary will make any rulings that upset the executive, as we have seen from the Finance Act 2023 and others. In essence, the judiciary's role in upholding the rule of law, protecting citizens' rights, and ensuring accountability will be severely undermined, eroding the very foundation of a democratic society.

History provides numerous cautionary tales of the dangers of a judiciary under the thumb of the executive. In countries where the judiciary lost its independence, the consequences have been dire. One glaring example is seen in countries like Zimbabwe, where President Robert Mugabe's control over the judiciary led to a breakdown of the rule of law and widespread human rights abuses. This coming at the backdrop of extrajudicial killings, disappearances and wanton murders in this country is worrying. The erosion of judicial independence creates a climate where authoritarianism flourishes, and citizens' rights are trampled upon with impunity.

Therefore, the meeting between President Ruto and Chief Justice Koome stands as a pivotal moment in Kenya's democratic journey. The apparent disregard for the principles of separation of powers raises alarms about the future of the judiciary's independence. The potential subjugation of the judiciary to executive whims not only threatens the dispensation of justice in the country but also undermines the very essence of democracy. Kenyan citizens and the international community must remain vigilant, holding firm to the principles of constitutionalism and the rule of law. The judiciary's independence is a cornerstone of democracy, and any attempt to compromise it should be met with strong opposition. The experiences of other nations serve as stark reminders of the perils that lie ahead if the executive succeeds in subduing the judiciary. The integrity of Kenya's democratic institutions hinges on resisting any encroachment on the independence of the judiciary.

Don't forget to leave your opinion!

 Ruto's ZAKAYO-Taxation: The Failure of "mama-mboga" and Wheelbarrow Economics.

The dust created by the "hustler atawale" bullwack has indeed settled. The narrative, as sweet as it was to some ears, has been replaced by a shareholder mentality that has not gone well with a majority of Kenyans, even those who supported the current regime with their own lives. In a surprising turn of events, the Kenyan government's enactment of the Finance Act 2023 has raised concerns about its compatibility with the bottom-up economic model championed by the current president during his campaign. The Finance Act has introduced a series of tax changes, including higher rates, new impositions, and alterations in various tax categories. However, the unintended consequence seems to be a potential setback to the very principles of empowering small and medium-sized enterprises (SMEs) and low-income households that the bottom-up economic model seeks to promote.

One of the most contentious aspects of the Finance Act is the heightened taxation across multiple fronts. The surge in taxes, particularly on income, value-added goods and excise items, is poised to cast a shadow over the anticipated benefits of a bottom-up economic approach. Here's why and how this high taxation may negatively affect the economy, SMEs and low-income households, potentially leading to the failure of the bottom-up economic model.

First, it has and will put an undue strain on SMEs. It seems that Zakayo has forgotten that the backbone of any thriving economy is its SME sector. These enterprises, often operating on slim profit margins, now find themselves grappling with increased taxes. From withholding taxes on rental income to higher excise duties on certain goods, SMEs are facing a substantial financial burden. This added strain threatens their ability to invest, expand, and create jobs – all of which are vital components of the bottom-up economic philosophy.

Secondly, it is already clear that the new tax regine is Reducing Investment and Innovation. For instance, the imposition of a 15% tax on income repatriated from branches or permanent establishments will discourage foreign investment. Businesses may reconsider establishing or expanding their operations in Kenya due to the financial implications of repatriating profits. This not only stifles economic growth but also impedes innovation and the introduction of new technologies, which are crucial for the evolution of SMEs and the overall economy.

Third, high taxation is already greatly impacting Low-Income Earners. The bottom-up economic model centers around uplifting low-income earners (the so-called wanjikus, mama mbogas and bodabodas) and yet, the Finance Act introduces two additional tax rates for individuals, with the highest rate set at 35%. The move contradicts the narrative of promoting inclusive growth by burdening those who can least afford it. Low-income households may find their disposable income further diminished, affecting their purchasing power and, consequently, local demand for goods and services.

Furthermore, it is dampening consumer spending on even essential goods and services. With increased rates on certain goods and services, consumers are likely to feel the pinch in their wallets. Higher prices for essential items and reduced disposable income may lead to a decline in consumer spending. This downturn in demand could reverberate throughout the economy, negatively impacting businesses of all sizes and contributing to a sluggish economic environment.

Lastly, the preferential tax regime for qualifying intellectual property income may benefit larger corporations but poses a challenge to smaller businesses that lack the resources to engage in such arrangements. This could create an uneven playing field, hindering the growth of small businesses and undermining the principles of fairness and inclusivity embedded in the bottom-up economic model.

In conclusion, while the Finance Act 2023 may have been enacted with the intention of bolstering government revenues, its unintended consequences may jeopardize the very foundations of the bottom-up economic model. The government must carefully reassess the impact of these tax changes on SMEs and low-income households, seeking a balance between revenue generation and the sustainable growth of the economy. A constructive dialogue between policymakers, businesses, and citizens is crucial to address concerns, foster understanding, and chart a course towards a more equitable and prosperous economic future for Kenya.