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How Kenya’s dramatic flooding sweeps away a central part of the economy: Its farms

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62-year old farmer Martha Waema’s three-acre farm was submerged by weeks of rainfall in Machakos, Kenya, on May 8, 2024.Andrew Kasuku/The Associated Press

With dismay, Martha Waema and her husband surveyed their farm that was submerged by weeks of relentless rainfall across Kenya. Water levels would rise to shoulder height after only a night of heavy downpour.

The couple had expected a return of 200,000 shillings ($1,500) from their three acres after investing 80,000 shillings ($613) in maize, peas, cabbages, tomatoes and kale. But their hopes have been uprooted and destroyed.

“I have been farming for 38 years, but I have never encountered losses of this magnitude,” said the 62-year-old mother of 10.

Their financial security and optimism have been shaken by what Kenya’s government has called “a clear manifestation of the erratic weather patterns caused by climate change.”

The rains that started in mid-March have posed immediate dangers and left others to come. They have killed nearly 300 people, left dams at historically high levels and led the government to order residents to evacuate flood-prone areas — and bulldoze the homes of those who don’t.

Now a food security crisis lies ahead, along with even higher prices in a country whose president had sought to make agriculture an even greater engine of the economy.

Kenya’s government says the flooding has destroyed crops on more than 168,000 acres (67,987 hectares) of land, or less than 1% of Kenya’s agricultural land.

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Crops on approximately 168,092 acres of land, including Martha Waema’s farm, have been destroyed, posing a threat to food security.Andrew Kasuku/The Associated Press

As farmers count their losses — a total yet unknown — the deluge has exposed what opposition politicians call Kenya’s ill preparedness for climate change and related disasters and the need for sustainable land management and better weather forecasting.

Waema now digs trenches in an effort to protect what’s left of the farm on a plain in the farthest outskirts of the capital, Nairobi, in Machakos County.

Not everyone is grieving, including farmers who prepared for climate shocks.

About 200 kilometers (125 miles) west of Waema’s farm, 65-year-old farmer James Tobiko Tipis and his 16-acre farm have escaped the flooding in Olokirikirai. He said he had been proactive in the area that’s prone to landslides by terracing crops.

“We used to lose topsoil and whatever we were planting,” he said.

Experts said more Kenyan farmers must protect their farms against soil erosion that likely will be worsened by further climate shocks.

Jane Kirui, an agricultural officer in Narok County, emphasized the importance of terracing and other measures such as cover crops that will allow water to be absorbed.

In Kenya’s rural areas, experts say efforts to conserve water resources remain inadequate despite the current plentiful rainfall.

At Jomo Kenyatta University of Agriculture and Technology, professor John Gathenya recommended practices such as diversifying crops and emphasizing the soil’s natural water retention capacity.

“The soil remains the biggest reservoir for water,” he said, asserting that using it wisely requires much less of an investment than large infrastructure projects such as dams. But soil needs to be protected with practices that include limiting the deforestation that has exposed parts of Kenyan land to severe runoff.

“We are opening land in new fragile environments where we need to be even more careful the way we farm,” Gathenya said. “In our pursuit for more and more food, we are pressing into the more fragile areas but not with the same intensity of soil conservation that we had 50 years back.”

 

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Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

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