Kenyans have been grumbling over unprecedented price fluctuations for essential foods like maize and wheat flour and cooking oil since the beginning of the year. The global supply chain interruptions brought on by the Russian war in Ukraine are mostly to blame for these increases in the price of critical commodities. Many Kenyans are concerned about the situation of their country right now. In September, inflation jumped to an all-time high of 9.2% due to a weaker currency, rising gasoline prices, and a poorly executed subsidy to reduce the cost of maize flour in half.
To add to these woes were fears over political tensions and the presidential elections. Kenya has had a bad track record when it comes to presidential elections and has had a shameful past of violence, looting and tribal clashes with almost every election. After the August 9th elections and the subsequent declaration of President Dr William Kipchirchir Samoei Arap Ruto as the 5th president of Kenya, tensions were at an all-time high. Uncertainty for the future and major concerns over the elections dispute put the country's future in limbo with no way of guessing how the court ruling would affect the country.
Luckily, the election period eventually came to a close peacefully in September and Kenyans began resuming normal life. Upon his entry to office, President Ruto ended state subsidies for gasoline, diesel, and kerosene while also signalling the impending termination of subsidies for the country's staple, maize flour. Many Kenyans are in an economic downturn due to worries about the increased production and transportation expenses brought on by the fuel subsidy cuts. The new administration has a lot of work cut out for it as the country is in a precarious situation and the debt ceiling rising higher every day.
During these challenging times, Kenyans must become vigilant to ensure that they manage their resources efficiently. The new world is not for the faint-hearted and is not for those without a strategic plan. Taking in the events of the year thus far, one thing is clear, innovation is critical to survival. The need to innovate and restructure began with the onset of the Covid-19 pandemic which shook the global economy and nearly collapsed industries. These challenges weeded out many that were unprepared. Whether considering the individual level, business level or even national level one cannot understate the importance of innovation and strategic planning.
The state of the nation's economy reaffirms this premise especially because many businesses have thrived during this recession. Those that prepared themselves adequately for change along with those that quickly adapted to change were able to reap the benefits of innovation despite inflation. It is critical for organisations to consistently carry out internal and external audits to ensure they can navigate the economic landscape, especially during times of uncertainty. Currently, one of the biggest innovations is the management of cashless transactions. The Covid-19 pandemic pushed many people towards cashless payments, making M-pesa the leading product in mobile money in the country.
As stated earlier it is vital for individuals to employ innovative techniques to increase their economic success during this recession. The mobile money boom in the country has drastically increased convenience. However, keeping track of transactions, categorising clients, generating reports and basic bookkeeping is a major headache for businesses relying on mobile money. This can lead to chaos, double entries and even losses. Lipa Solutions is a cutting-edge platform for mobile money payments and cloud-hosted billing. This software helps you accept payments more effectively by removing mistakes caused by incorrect data input. The innovative tool helps business owners to keep track of M-pesa transactions and view reports for various categories. Customers can pay you by using your personalized "lipa.me" link, a payment form integrated into your website, or SMS-delivered invoices.
With Lipa Solutions, you can; send invoices to clients via SMS for M-pesa payment, allow people to register to get SMS pledge reminders, and use web forms that may be customized to accept payments online. The system has several capabilities which include the following:
Regular financial analysis can prevent the sudden closure of businesses by informing the owners of the organisation's health and understanding the external landscape and the potential implications of the prevailing circumstances. Lipa Solutions equips you with the tools to manage your business mobile money more effectively, which is invaluable during these harsh economic times. It enables you to monitor your finances at a glance, filter through several transactions and even monitor the payment history of an individual client. These tools enable you to take back control of your finances and inform your decisions going forward.
By Christine Njoki - Published 30th Sep 2022, 11:50pm