African governments are rolling out fresh measures aimed at restoring consumer purchasing power and shoring up economic confidence amid intensifying public scrutiny over the rising cost of living.<\/p>\n
Major economies such as Kenya and South Africa are shifting away from heavy reliance on subsidies and short-term price controls on essential goods, opting instead for interventions designed to influence disposable income and expand wealth-creation opportunities for low-income earners.<\/p>\n
Across the continent, public discontent has persisted despite official data pointing to easing inflation and gradual macroeconomic improvement.<\/p>\n
Many households say the benefits of stabilisation have yet to translate into tangible relief, fuelling what has become as much a political debate as an economic one.<\/p>\n
In Kenya, Treasury Cabinet Secretary John Mbadi, defended proposed tax reforms aimed at shielding low-income earners, saying the government had taken note of concerns that rising prices were steadily eroding earnings and weakening household purchasing power.<\/p>\n
\u201cWe have been told a number of times, kindly put money in people\u2019s pockets. That the purchasing power of people has dwindled,\u201d Mbadi said in Nairobi during a bell ringing ceremony to launch\u00a0 Safaricom\u2019s Ziidi Trader, a service that allows Kenyans to buy and sell\u00a0 shares of public listed firms directly through the M-pesa mobile money platform.<\/p>\n
\u201cNow those who are earning US$233(Ksh30,000) and below, we are saying should pay zero tax. And by the way, it is not just those who are earning US$233(Ksh30,000) and below. Any money that you earn which is US$233 (Ksh30,000) and below, even if you are earning a million, your US$233(Ksh30,000) will also not be taxed,\u201d he said.<\/p>\n
The Kenyan government has also proposed lowering the tax rate on the next income band above Ksh30,000 from 30% to 25%, a move Mbadi framed as meaningful relief for low income households.<\/p>\n
Kenya has also moved to dismantle long-standing barriers to capital market participation, positioning retail investment as part of its broader cost-of-living response.<\/p>\n
The launch of the Ziidi Trader platform is expected to widen access for millions of citizens, especially low-income earners who were previously locked out of formal investment channels.<\/p>\n
\u201cThis platform represents a decisive turning point in how citizens engage with the stock exchange. It opens the doors of market participation wider than ever before,\u201d President William Ruto said at the launch.<\/p>\n
The platform allows investors to purchase as little as a single share through their mobile phones following regulatory reforms that eliminated mandatory broker intermediation and scrapped the previous minimum investment threshold of\u00a0 US$390(KSh50,000). The changes significantly lower entry barriers to the Nairobi Securities Exchange (NSE).<\/p>\n
\u201cFor a very long time it looked a very complicated process. Serious accounts, brokers in between, and everything along the journey. Today, there is a pathway for the mama mbogas(vegetable vendors) and the boda boda guys from the comfort of sitting on their motorbike with their phone, they can buy shares and trade at the Nairobi Stock Exchange,\u201d explained President Ruto.<\/p>\n
According to the President, the reforms have already coincided with a sharp rise in market activity, with total market capitalisation at the NSE expanding from about US$9.3 Billion (KSh1.2 trillion) three years ago to nearly\u00a0 US$23.2 Billion(KSh3 trillion) last year.<\/p>\n
He expressed confidence that the number of Kenyans participating in the capital markets could rise from the current 200,000 investors to several million in the near term.<\/p>\n
However, the reforms have drawn criticism from opponents who view the measures as politically calibrated, coming as President Ruto, who was elected on a bottom-up economic transformation agenda, edges toward a second-term bid.<\/p>\n
But Mbadi pushed back against criticism that the measures were politically motivated, arguing that restoring purchasing power was itself a legitimate policy goal.<\/p>\n
\u201cIf it is a campaign tool and it gives money back to the pockets of Kenyans, it is okay. It is a good campaign strategy,\u201d Mbadi said.<\/p>\n
Kenya\u2019s National\u00a0 Treasury said it had reduced the risk of near-term debt distress while stabilising key macroeconomic indicators, including inflation and the currency.<\/p>\n
Mbadi pointed to Moody\u2019s recent rating action as evidence of improved fiscal credibility, saying the agency\u2019s positive assessment signalled growing confidence in Kenya\u2019s economic trajectory.<\/p>\n
\u201cIt is not a coincidence that Moody\u2019s have said now we have a stable economy. So if people are out there saying that the economy is in shambles, the economy is on its knees yet we are rated as having moved from CAA1 with positive outlook to now B3 with a stable outlook. So what evidence do you want?\u201d he asked.<\/p>\n
Kenya\u2019s Inflation in 2025, recorded a high of 4.6%, primarily driven by food, transport, and energy costs, while the shilling\u2019s relative stability have been linked to easing price pressures.\u00a0 In South Africa, the government announced a 5% rise in the national minimum wage\u00a0 to US$ 1.90( R30.23) an hour from March 2026.<\/p>\n
Domestic and farm workers have been listed as the biggest beneficiaries. The rise is considered a significant increase as it outpaced inflation rate and exceeded expectations from businesses and analysts, largely seen offering some relief to consumers.<\/p>\n
\u201cThe increase will inject badly needed stimulus into the economy, spurring growth, sustaining and creating jobs,\u201d South Africa Parliamentary coordinator for organised labour, Matthew Parks said in a statement .<\/p>\n
AgriSA, South Africa\u2019s largest farmers\u2019 lobby, said wage adjustments alone risk weakening employment sustainability, accelerating unemployment rather than improving worker welfare.\u00a0 The timing, AgriSA Chief executive officer, Johann Kotze said would put further strain on a sector still recovering from drought, climate volatility and animal disease outbreaks.<\/p>\n
The livestock industry\u00a0 it said accounts for between 40% and 45% of agriculture\u2019s contribution to Gross Domestic Product (GDP).<\/p>\n
\u201cWhile parts of the sector are showing recovery in 2025, this recovery remains fragile and uneven,\u201dKotze said in a statement.<\/p>\n
Statistics South Africa data shows at an average inflation rate of\u00a0 3.2% in 2025, it was the lowest in 21 years for the country. The annual rate for food and non-alcoholic beverages (NAB) was however closed at\u00a0 4.4% in December 2025.<\/p>","protected":false},"excerpt":{"rendered":"
African governments are rolling out fresh measures aimed at restoring consumer purchasing power and shoring up economic confidence amid intensifying public scrutiny over the rising cost of living. Major economies such as Kenya and South Africa are shifting away from heavy reliance on subsidies and short-term price controls on essential goods, opting instead for interventions […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-131960","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/131960","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=131960"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/131960\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=131960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=131960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=131960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}