How the government can implement a possible lockdown

How the government can implement a possible lockdown and help kenyans

Right now in Kenya we have a curfew. Some people are finding it hard to provide for their basic needs because before COVID-19, they had more clients and longer hours to work. This makes it hard for them to save up money in order to use to buy food and other essential goods. Others have lost their jobs because some factories and businesses have closed. They are then forced to look for other jobs and this puts them at the risk of contracting the virus. How can these people be helped? There are two possible ways:-

1.      Giving out cash

2.      M-bonga

1. Giving out cash

This idea is not new. Many people have been calling for it immediately the virus hit our shores. The first to ask for cash was the tourism industry and almost every other sector has since then asked for a bailout. Some concerns then arise:-

·        Where will the cash come from?

I’m not sure. Currently, I think, the government is channeling available resources to the medical sector. Maybe they are planning to build temporary structures to serve as hospitals. They may be also planning on hiring extra medical staff and equipping them with protective gear. Another challenge also arises.

·        How will the money be distributed?

Many have called for the government to use the Huduma number data to distribute the money. This however can be a challenge. Some people completely refused to register because of their own reasons. Also, from that data, it may not be possible to know who really needs the money and how much they actually need. A lot of resources could be distributed to people who are not poor leaving the poor with less resources. Giving out cash is a good idea but it has some challenges. This brings me to my second idea.

2. M-bonga     

What is M-bonga? Well I’m sure you are familiar with bonga points. If you are not, then you probably don’t live in Kenya. Let me briefly explain what it is. Bonga points is a promotional product used by Safaricom ltd to reward their customers after they spend money. For example if you spend 10ksh, you get 1 bonga point. You then accumulate those points and you can use it to buy other items like phones, airtime, food etc. other telecommunication companies have a similar product. I hope that explanation was good🙂. Now, many people don’t have enough bonga points to purchase all the items they need. This is where M-bonga Comes in. The government, with the help of Safaricom, Airtel and Telkom, could come together and create a system whereby digital points are given to everyone in order for them to be able to purchase goods. Some concerns may arise:-

·        Where will the points come from?

This method is easier than giving out cash because the only cost to the government would be manpower and electricity cost. Since all the three companies are already using a reward system, it means they already have the software needed to create these points. It may even take a day to create M-bonga.

·        How will the points be distributed?

Send to everyone. A lot of manpower could be wasted determining who is needy and who is not. Those who are not in need will probably donate to organizations and people who are in need. The government could also create a system where someone could opt out of receiving the points. Also since it would cost the government almost nothing to make and distribute the points, there is no harm in giving points to people who are not poor.

·        How should the points be valued?

1 point should be equal to 1ksh. This will make it easier for people to calculate the cost of goods. For example if I’m selling cabbages at 30 ksh, I’ll only ask for 30 points. If it’s complicated, many people will be conned e.g. if 10 points is equal to 1ksh, some people will buy the same cabbage using 3000 points.

·        Are there any dangers to using points?
Yes. Some people could completely abandon cash and this is not good for any economy.This can be rectified by giving an expiry date to the points.If everybody knows that maybe August 1^st is the last day any payments will be done using M-bonga, they will make sure they spend those points before that day and be prepared to go back to using cash.

·        How will the points be removed from the economy?

It will be difficult. One way could be through government parastatals . Once someone pays their electric bill using M-bonga, those points don’t leave the company.  They just accumulate them and ask for a cash refund from the government. The same could be applied to all other parastatals. This could be very costly for the government but I feel it’s still easier than giving cash to individuals. Alternatively the parastatals could use the points to pay taxes and let KRA to shoulder all that burden.

·        What are some positive impacts of the M-bonga?

There are many positive things that could happen. The first thing that will immediately happen is that it will increase the purchasing power of many people in Kenya. This will mean food items will be affordable for them. They will be able to eat nutritious food and their children will be healthier. Many people may even become fat (this will be good for gyms). Another benefit is that many people will stay at home. This will reduce the risk of contracting the virus. It will also help the government since many people will not go to hospital. Another benefit is that farmers will make more money. This is good because after the virus is gone they will invest their wealth in various activities like expanding food production. This will in turn reduce the cost of food for everybody. Another benefit is that the level of crime will go down. There will be no need to rob someone if you already have food. There are probably other benefits but I cannot be able to predict at this moment.

Conclusion

We are going through what is probably the toughest challenge the world has seen in modern times. If the government makes the right decisions, we could come out of this challenge stronger than ever

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