Kenya has made significant political, structural and economic reforms that have largely driven sustained economic growth, social development and political gains over the past decade. However, its key development challenges still include poverty, inequality, climate change and the vulnerability of the economy to internal and external shocks.
Kenya’s recent political reform stemmed from the passage of a new constitution in 2010 that introduced a bicameral legislative house, devolved county government, a constitutionally tenured judiciary
Devolution remains the biggest gain from the August 2010 constitution, which ushered in a new political and economic governance system. It is transformative and has strengthened accountability and public service delivery at local levels.
While economic activity faltered following the 2008 global economic recession, growth resumed in the last three years reaching 5.8% in 2016 placing Kenya as one of the fastest growing economies in Sub-Saharan Africa. The economic expansion has been boosted by a stable macroeconomic environment, low oil prices, rebound in tourism, strong remittance inflows
Looking ahead, near-term gross domestic product (GDP) growth is expected to rise to 5.7% in 2018 underpinned by
In the long-term, adoption of prudent macroeconomic policies will help safeguard Kenya’s robust economic performance. This includes implementation of fiscal and monetary prudence and lowering deficit down to 4.3% by FY19/20 as per the
In addition to aligning fostering economic development through the country’s development agenda to the long-term development plan; Vision 2030, the president in December outlined the “Big Four” development priority areas for his final term as president. The Big Four prioritizes manufacturing, universal
Kenya has reduced child mortality, has near universal primary school enrollment, and narrowed gender gaps in education. Interventions and increased spending on health and education are paying dividends. While the healthcare system has faced challenges recently, devolved health care and free maternal health care at all public health facilities will improve health care outcomes and develop a more equitable health care system.
Kenya has the potential to be one of Africa’s success stories from its growing youthful population, a dynamic private sector, highly skilled workforce, improved infrastructure, a new constitution, and its pivotal role in East Africa. Addressing the challenges of poverty, inequality, governance, the skills gap between market requirements and the education curriculum, climate change, low investment
Last Updated: Oct 11, 2018