State bets on key pillars to grow the economy

By Winsley Masese

Kenya: The Government has identified five key pillars to fast-track economic development. The pillars touch on agriculture, transport and logistics, business environment, education and health, and improved service delivery.

National Treasury Cabinet Secretary Henry Rotich said the five interventions are meant to sustain the economy and ensure shared prosperity.  “The agricultural sector has continued to be strong and we want to build on that to improve food security and value addition,” he said.

The transformation agenda, dubbed ‘Achieving Transformation and Shared Prosperity’ seeks to reduce the cost of living in Kenya.

The interventions also will improve Kenya’s business environment and expand the economy in a sustainable manner.

Education and healthcare

“We also seek to ensure quality and accessible education and healthcare to reduce the burden parents have in paying fees for these services,” he said.

Speaking during the launch of a report by the International Monetary Fund (IMF) in Nairobi yesterday, Rotich also identified improving transport, logistics and energy as some of the efforts aimed at making the business environment conducive.

Rotich however identified security threats as some of the challenges that might constrain the economy from achieving its full potential. The report titled “Sub-Saharan Africa, Fostering Durable and Inclusive Growth,” presents key indicators of the region’s economic achievements.

“Some of these interventions are supposed to support economic growth and ensure there is shared prosperity for all,” he noted.

IMF Director African Department, Antoinette Sayeeh said the fund maintains a positive outlook in the regions economic growth forecasts largely fuelled by increased domestic demand for goods and strong demand of credit.

“The growth is projected to surpass the average of 4.9 per cent reported in 2013 to go up to about 5.4 per cent in 2014,” she said.

She said that the region has about 30 per cent of the fastest growing group of countries in the world — projecting f an accelerated growth. She however, called for need to keep the fiscal deficit within manageable levels to ensure there is sustained growth.

“The fiscal deficit in 2009 was elevated to about 3.9 per cent of the gross domestic product given the global crisis that trickled down to Sub-Saharan Africa. However, that has to be reduced during pre-crisis period,” she urged.