- Only 50 per cent of businesses affected by the pandemic are expected to recover in 2022, Kepsa says.
- Despite a 5.3 per cent growth in GDP, Kenya's unemployment rate continues to grow by three per cent each year, Kepsa said.
Image: KEPSA
Job creation, ease of doing business and uptake of more local content topped the agenda of the private sector’s meeting with presidential aspirant Raila Odinga.
Kenya Private Sector Alliance said players in the different sub-sectors of the economy are keen to have a conducive environment to do business under the next regime.
Kepsa officials spoke on Wednesday during a meeting with the ODM leader in Nairobi.
The officials said high taxation, multiple licenses, lack of market and corruption are some of the challenges facing businesses in Kenya, which has seen a number of them collapse.
The lobby said unemployment is a challenge that can be tackled through investing in the expansion of key growth sectors.
The sectors include the digital economy, circular economy and enhancing value chains in productive sectors with stronger linkages to SMEs.
Kepsa represents more than one million major businesses in the country.
Despite a 5.3 per cent growth in GDP, Kenya's unemployment rate continues to grow by three per cent each year, Kepsa said.
“The rate of unemployment has been further exacerbated by the Covid-19 pandemic. About 738,000 Kenyans lost their jobs during the pandemic and only 50 per cent of affected businesses are expected to recover in 2022,” Kepsa said.
The lobby has launched a 'Private Sector Economic manifesto' outlining five key thematic areas, in the first series of engagements with the presidential candidates in the run up to the general election.
The thematic areas include spurring jobs and inclusive wealth creation, social transformation to reduce inequalities and enhanced governance and economic stability.
Also, spurring cutting edge innovation and investment in competitive human capital and creating a globally competitive business environment.
“Supporting the private sector, we are looking at our tax regime, licenses and where we need to be more productive,” Kepsa CEO Carole Kariuki said.
Chairperson Flora Mutahi said: “When private sector and government sit together, we are able to get solutions.”
She said the country needs to capitalise on export opportunities in the continent, such as those coming with the African Continental Free Trade Area.
Raila said he is committed to supporting growth of the private sector and its involvement in key infrastructure development in the country, if he makes president.
He said the Azimio government will lead an industrialisation policy that would be export centred.
This will focus on prioritising industrialisation and shifting the agriculture sector from exporting raw materials to exporting finished products.
Raila said his government will set up a dedicated body to monitor long term planning on international trade agenda, focusing on export.
He also said he will support the private sector through tax breaks, government guarantees and ensure there are enabling policies to promote exports in specific industries.
The Azimio leader said he is also keen on supporting Micro-Small and Medium Enterprises tackle the challenges of unlocking foreign markets and growing the Buy-Kenya-Build Kenya initiative.
He said Azimio has 15 thematic areas aimed at supporting the countries’ private sector.
“The private sector is the engine for growth and development in modern society. We we are going to remove some of the impediments which have made it difficult for some of these companies to thrive,” Raila said.
He said the Azimio government is going to create an enabling environment for the private sector growth.
The Kepsa-Odinga is the first series of engagements with presidential candidates.
Kariuki said the government can leverage its large procurement budget to create jobs and wealth organically through a ‘demand driven consumption’ model.
The model works by procuring only what is made in Kenya, by both local and by foreign organisations and actualising supply chain linkages pegged on the 30-40 per cent local content policy in government projects.
The CEO said poor governance and corruption stifle economic and social development by increasing the cost of business while creating distortions in public expenditures.
"We believe that increasing the digitisation of government processes will enhance transparency and efficiency within key processes and delivery of services,” she said.
Kariuki said this can be achieved by the adoption of blockchain for quality control, traceability and transparency.
(Edited by Bilha Makokha)