DEVELOPMENT AGENDA

MWAURA: How KK administration is planning to spur economic take-off

Public participation during project identification and implementation is critical at this juncture as it enhances ownership and sustainability.

In Summary
  • The ratio of nurses to the population improved from 113 per 100,000 population in 2018-19 to 155.9 in 2021-22.
  • Moreover, the ratio of Judges to the population improved from 1:302,957 in 2018-19 to 1:292,353 in 2021-22.
Subsidised fertiliser at the NCPB depot in Eldoret. Maize post-harvest losses reduced from 16 per cent in 2018-19 to 15 per cent in 2021-22.
ECONOMIC GROWTH: Subsidised fertiliser at the NCPB depot in Eldoret. Maize post-harvest losses reduced from 16 per cent in 2018-19 to 15 per cent in 2021-22.
Image: FILE

Dear reader,

In our last week’s reading, we talked about some of the key milestones that were achieved under the third Medium Term Plan (MTP III). In addition, the period 2018-22 saw a total of 149,141.6km of classified roads being maintained and/or rehabilitated, while a further 6,691.1km of additional classified roads were built. In rail transport, more than 15.35 million rail passengers used our trains, while mobile network coverage increased from 93 per cent in 2018-19 to 98 per cent in 2021-22.

In agriculture, the contribution of crop production to GDP increased from 14.5 per cent in 2018 to 15.2 per cent in 2022, while maize post-harvest losses reduced from 16 per cent in 2018-19 to 15 per cent in 2021-22.

In education, the total gross enrolment in TVET institutions for the review period was 1,520,399; while primary to secondary transition rate stood at 78.6 per cent in 2022. Further, the doctor-population ratio improved from 24 per 100,000 in 2018-19 to 37 per 100,000 population in 2021-22.

The ratio of nurses to the population improved from 113 per 100,000 population in 2018-19 to 155.9 in 2021-22. Moreover, the ratio of Judges to the population improved from 1:302,957 in 2018-19 to 1:292,353 in 2021-22.

Despite the above, the country wasn’t able to attain the milestones as planned due to several challenges such as the Covid-19 pandemic that slowed down economic activities, leading to reallocation of funds to the health sector, thus adversely affecting the implementation of other key priority programs.

Secondly, climate change manifested itself in drought and flooding, changing weather patterns and rising water levels in lakes, resulting in food insecurity and increased cost of living. Thirdly, the Russia-Ukraine conflict resulted in the disruption of global supply chains which in turn caused a sharp rise in the prices of energy, food, and other commodities thereby triggering high inflation. Fourthly, exchange rate volatility created uncertainty in the economy, hence negatively affecting the country’s imports, exports and foreign direct investment.

Other policy, legal and institutional encumbrances that slowed down our economic take-off included low tax revenue, lengthy and costly land acquisition and compensation, leading to implementation delays, rising public debt to finance public infrastructure with little multiplier effect on the economy, and evolving forms of cyber threats/crime, slowing down uptake of ICT in service delivery. It is also true that the Building Bridges Initiative project also derailed the govt from focusing on the Big 4 agenda.

Some of the key lessons learnt during the implementation of MTP III include the fact that mobilisation of resources from alternative sources is essential in complementing government funding. It’s also important to strengthen and promote Micro, Small and Medium Enterprises in order to spur inclusive economic growth. This is the reason as to why in the MTP IV framework, MSMEs is a standalone pillar under the Beta Plan.

Public participation during project identification and implementation is also critical as it enhances ownership and sustainability. As we move to the fourth industrial revolution, adoption of advanced technology and digitalisation is key in enhancing service delivery.

As explained in our previous article, the MTP IV uses the value chain approach to planning. This is a link between production, value addition and marketing that benefits customers through identification of opportunities for cost reduction, process optimisation and competitive advantage. It focuses on an end-to-end approach to investment, thus eliminating ‘Silo mentality in order to build competitive advantage, thus increasing productivity while keeping the costs reasonable.

The government has prioritised the following nine (9) Value Chains namely; Leather And Leather Products, textile And apparel, dairy, tea, rice, edible oils, blue economy, minerals and oil resources, and construction & Building Materials.

Any good plan must be well financed. The MTP IV will attract resources through various financing mechanisms that include: government budgetary allocation within the Medium Term Expenditure Frameworks , Public Private Partnership (PPP) Frameworks, support from development partners; and green financing.

Many plans are never implemented and they remain just that. In fact, research has demonstrated that only 40% of any given Strategic Plan ever gets implemented. To avoid this possibility, Ministries, Departments and Agencies (MDAs), Constitutional Commissions and Independent Offices (CCIOs) will prepare five-year Strategic Plans from which Annual Performance Contracts will be developed. The Performance Contracts will be signed and evaluated based on the MTP IV sector targets. Further, regular monitoring, evaluation and reporting will be undertaken through Annual Progress Reports (APRs) and Mid-Term Reviews to track progress on implementation. The monitoring and evaluation will be carried out to track whether the resources allocated to the programmes and projects on a particular financial year yielded the desired results.

One of the key concerns of the last electioneering cycle was the high cost of living that was exacerbated by both local and external shocks as elucidated above. In order to address this, the MPTIV proposes investment in agricultural productivity to enhance income for farmers and create jobs through: Subsidizing farm inputs such as certified seeds and fertilizers to ensure food security and to curb food inflation. The registration of 6.4 Million farmers, crop diversification through the promotion of climate smart agriculture through the planting of drought resistance crops e.g., millet, sorghum, cassava, pigeon peas, etc are critical. In addition, the expansion of land under irrigation, investing in county specific value chain in agriculture, and the promotion of local production are also vital.

The County Aggregation and Industrial Parks- aim at expanding manufacturing and investments through Agro-Industry to ensure the reduction of post-harvest losses, promotion of value addition, and harnessing of market linkages. This shall be achieved through empowering MSMEs through the provision of affordable credit, capacity building, and market linkages, as they account for over 86 per cent of total employment in the country.

It’s also important to stimulate localised economies through the cushioning of the vulnerable in the society through social transfers such as the inua jamii cash transfer program that caters for orphans and vulnerable children, senior citizens, and Kenyans with severe disabilities.

The Beta Plan is being delivered successfully. In our next article, we shall look at how the MTP IV is addressing other key concerns that impinge on our economic take off.

Government spokesperson 

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