[1] In light of the #COVID19 global pandemic, the Kenyan economy is set to experience unprecedented shock, with an estimated impact of 10% (optimist) to 25% (pessimist) on GDP growth for the year 2020, thus possibly reducing the GDP growth to a range of 4.3% to 5.2%... (A thread)

[2] Meanwhile, the Kenyan Government has introduced a series of measures, including tax cuts, pay cuts, subsidies and a 40-Billion package to cushion vulnerable households in urban areas from the economic shock as a result of reduced activity in the wake of the #COVID19 pandemic.

[3] While credit has to be given to the @MOH_Kenya on the management of the pandemic, more needs to be done to cushion the economic impact of #COVID19 in a country where the informal sector accounts for an estimated 33.33% of employment, compared to 6.67% in the formal sector.

[4] First, we have to cut on government spending, which is totally out of control in Kenya. In 2018, the government expenditure amounted to about 25.47% of the country's GDP, against the backdrop of a Public Debt to GDP ratio estimated at 56.2% and an average GDP growth of 5.9%.

[5] Next, we’ve got to lower corporate taxes, which make it impossible to do business in the country. The current corporate tax rate applicable in Kenya is 30% in the case of resident corporations. A non-resident company with a permanent establishment in Kenya is taxed at 37.5%.

[6] Lastly, we can tackle the expected unemployment by effectively targeting investment and supporting new sources of growth. Job creation can be stimulated thru a stable macroeconomic framework i.e. structural policies which encourage innovation, skills and business development.

[7] Ultimately, the economic implications of #COVID19 will depend, to a great extent, on the effectiveness of the measures put in place to combat the impact of the pandemic. Ideally, the aim is not to flatten the curve - the aim is to overcome the curve. #COVID19KE