Vision 2030 | 4: Economic Pillar
This aims at improving the prosperity of all Kenyans through an economic development programme, covering all the regions of Kenya. It aims to achieve an average Gross Domestic Product (GDP) growth rate of 10% per annum beginning in 2012.
To achieve this target, Kenya is continuing with the tradition of macro-economic stability that has been established since 2002. It is also addressing other key constraints, notably, a low savings to GDP ratio, which can be alleviated by drawing in more remittances from Kenyans abroad, as well as increased foreign investment and overseas development assistance (ODA).
This aims at improving the prosperity of all Kenyans through an economic development programme, covering all the regions of Kenya. It aims to achieve an average Gross Domestic Product (GDP) growth rate of 10% per annum beginning in 2012. To achieve this target, Kenya is continuing with the tradition of macro-economic stability that has been established since 2002. It is also addressing other key constraints, notably, a low savings to GDP ratio, which can be alleviated by drawing in more remittances from Kenyans abroad, as well as increased foreign investment and overseas development assistance (ODA).
Delivering the country's ambitious growth aspirations required a rise of national savings from 17% in 2006 to about 30% in 2012. It was also found necessary to deal with a significant informal economy employing 75% of the country's workers. The informal sector is being supported in ways that will raise productivity and distribution and increase jobs, owner's incomes and public revenues.
Kenya has recorded an economic growth of 5.7 percent in the first quarter of 2018. This has been attributed to the trickle down effect of the " Handshake " leading to a stabilized political environment. The country is continuing with the governance and institutional reforms necessary to accelerate economic growth. Other critical problems being addressed include poor infrastructure and high energy costs. The six key sectors described below are being given priority as the key growth drivers for achievement of the economic vision:
- Tourism and mining
- Increasing value in agriculture
- A better and more inclusive wholesale and retail trade sector
- Manufacturing for the regional market
- B P O (Business Process Outsourcing)
- Financial services
It is notable that with each Government comes spheres of interest but with the change of guard this has not been necessarily so in Kenya. The New administration of Uhuru Muigai Kenyatta has rather picked some key economic deliverables in the vision in what in 2018 he has characterized as "The Big Four" being within the framework of Vision 2030.
These are
- Universal Healthcare,
- Manufacturing,
- Affordable Housing and
- Food Security
Notwithstanding the same over 10,000 km s of road are to be tarmacked in the period 2013 to 2022 with 3000 km in progress by 2018.
SGR (Standard gauge Railway) modernisation of Kenya Railway system on the southern Corridor phase 1 is complete from Mombasa to Nairobi while phase 2 Nairobi to Naivasha is in progress as of May 2018; with the longest Rail tunnel in Africa at Kibiko, Ngong in advanced stages.
Under Lappset A key deliverable Under vision 2030, Isiolo Airport is complete as of 2017, while Konza City and Lamu Port have received renewed interest In #2018.
Road works completed under vision 2030 include Mombasa Road, with major funds still being pumped in, Thika Super Highway or commonly known as( Kibaki Free Way ) due its convenience, Outerring Road, Southern Bypass, Eastern By pass and Northern Bypass. Others include Ngong Road expansion and Langata road expansion.
Major malls with grade one offices in what has been characterised as Public Private partnership have been constructed and completed in Nairobi and its environs. This includes Garden city and TRM on Thika Superhighway, Two Rivers along the Northern And southern Bypasses.
Vision 2030, A vision that showed the dreams and aspirations of Kenyans remains on course. However, Financing gaps remain and hold an ugly face to its successful completion. These challenges have been unmasked even more by unchecked corruption that continues to bedevil the East African State. Either the Funding from China has come as a blessing in disguise with Chinese loans and Money being better utilised under Chinese expatriates in projects ranging from airports, rail, road and increasingly trade.
These have included major expansions of JKIA (Jomo Kenyatta international Airport) Moi airport Kisumu and Nairobi-Nakuru highway still in progress. Major roads in Kisumu, Mombasa and Nairobi are currently under major expansions as per vision 2030. Even more expansion of infrastructure in both the Northern and Southern Transport Corridor is currently in progress.
This has included projects in power with renewable energy taking centre stage with geothermal in Okario, Naivasha and wind mills in Ngong Hills, Turkana and Marsabit. A major reliance of the country's power need is now in renewable energy sources with the country eager to attract funds from international partners as the tightening of monetary policy becomes severe post 2017 interest capping regime in Kenya's Banking sector. This has seen China emerge as the biggest holder of Kenyan foreign debt at more than 60% in May 2018 at over Ksh 700 billion. Indeed, the Chinese have partnered with Kenya towards attainment of vision 2030 goals.
Investments in Technological hubs have led to Nairobi being termed as Africa's silicon Savannah with products such as Mpesa getting acclaimed globally. Developments in ICT have seen government services, financial services become more inclusive with the introduction of services such as Huduma Centres, Lipa na Mpesa. This has made Kenya jump directly from agricultural revolution to Information revolution within a decade.
Industrialisation as per the big four that entails quality life for all Kenya's, has received renewed focus as per the big four agenda of the Jubilee Government of Kenyatta the second!
Exploitation of Mineral wealth with major discoveries in Gold, oil, coal, Rare earths etc. with tens of trillions of shillings worth present a big boast towards funding of this ambitious Vision.
The future of Kenya has never been any brighter!
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