Economic growth projection of 6 pc good news but….

The projections that Kenya’s economy is expected to grow by about six per cent in 2013, up from a growth rate of 4.6 per cent last year, driven by growth in sectors like agriculture is good news for the country.

The country’s economy has for long, after the disputed polls in 2007, been limping at less than five per cent.

While Devolution and Planning Cabinet Secretary Anne Waiguru attributed the outlook to a stable macroeconomic environment and increased investor confidence, there is need to cushion it against major disruptions including volatile currency, high fuel prices, less foreign direct investments among others.

Agriculture, the country’s backbone has sometimes underdone various challenges such as low and sometimes destructive rainfall, poor seed quality, delay in disbursement of fertiliser leading to poor yields and  poor marketing of the proceeds which have discouraged farmers.

President Uhuru had also promised to create a million jobs every year for the country’s youth who form the bulk of the population. The Kenya Economic Report 2012 says the year under review, the labour market recorded 659.4 thousand new jobs in 2012, representing an increase of 5.5 per cent while annual average nominal wage earnings increased by 4.7 per cent in 2012 Increasing jobs require more elaborate plans to re-engineer the private sector seen as the engine of economic growth. Such should include incentives and proper management of State affairs.

Kenya stands out compared to other African countries, since its economy has been driven by a vibrant private sector.

It is worthy noting that the President had pledged to lift growth to double digits to make Kenya a middle-income nation “within a generation” and lift 10 million people out of poverty by 2017. Achieving such will require checking huge public wage bill, building more houses, roads, irrigation improving power generation capacity.

The State also needs to reduce the cost of doing business including high power charges that have seen major firms leave the country for cheaper rates.

Others are complaints persist about red tape holding back business, unemployment and a lack of homes.

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