RECKLESS LOGGING BAN TO COST THE ECONOMY KSHS 22 BILLION IN 90 DAYS. IT MUST BE REVISED IMMEDIATELY.
All kenyans of good will aught to pick a bone with the way the government has been implementing senseless bans without any regard to the impact on the economy. The recent ban on tree logging has led to massive disruption of the economy.
All kenyans of good will aught to pick a bone with the way the government has been implementing senseless bans without any regard to the impact on the economy. The recent ban on tree logging has led to massive disruption of the economy.
Many Kenyans do not know that the government has banned all logging of trees including on private land. Members of the public who collect firewood from forests have also been prevented from doing so leading to a fuel crisis in households. No movement permits are being issued for any tree products.
In 2016, the forestry and logging sub-sector accounted for 1.3% of the GDP at market prices or KShs 89.7 Billion. The 90 day ban on logging if sustained will cost the economy KShs 22 Billion i.e. KShs 246 million daily. All businesses that rely on wood products have closed shop.
According to recently released Kenya Integrated Household and Budget Survey 54.6% of Kenyan households rely on firewood for cooking while 14.6% rely on charcoal. The ban is therefore affecting 7.9 million households or 69.2% of all the 11.4 million households in the country.
KNBS inflation data for march 2018 show that the ban is already biting. A 4kg tin of charcoal is selling at KShs 107.36 as of March 2018 having risen by 27.07% from the February figure of KShs 84.49. Many poor households cannot sustain such as steep rise on a basic commodity.
Clearly, this roadside declaration is very damaging to the economy. One wonders what the ban will achieve in 90 days. What do poor people who collect firewood in forests have to do with tree logging? What do private citizens and corporations with trees on their land have to do with how government manages its forests? Is the ban meant to create demand for the proposed subsidized gas cylinders programme by the government?
This ad hoc and reckless policy making has already brought immense pain on many sectors of our economy. Investors will find it hard investing in a country with an unstable policy environment. The government should base its decisions on evidence rather than on emotions and politics.
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