Ruto’s economic reboot to transform Kenya
Kenya is on a bold journey towards an economic renaissance, with the government laying out a strategy to transform the nation’s economy over the next four years.
At the core of this ambitious endeavor is the focus on boosting production across key value chains, including leather and leather products, textiles and apparel, dairy, tea, rice, edible oils, the blue economy, minerals, forestry, construction, and building.
This multi-faceted approach is aimed at harnessing Kenya’s rich resources and industrial potential to stimulate growth, create jobs, and secure economic prosperity for its citizens.
At the heart of Kenya’s economic revival strategy, as unveiled by President William Ruto during the launch of the Fourth Medium Term Plan 2023-2027 and County Integrated Development Plans, is the promotion of agro-processing.
This will be realised by strengthening extension services across the country and ensuring the provision of quality and affordable farm inputs as the government aims to bolster the agricultural sector, a key pillar of Kenya’s economy.
Additionally, initiatives on cooperative development, ease of market access, logistics support, and the expansion of irrigation infrastructure will be prioritized to modernize agriculture through climate-smart practices, better financing, and the adoption of programs that bolster farm mechanization.
The President noted that the government is committed to continue providing subsidized fertilizers on time to boost Kenya’s food production.
Kenya Vision 2030
According to the President, the Fourth Medium Term Plan, which is a critical phase of Kenya Vision 2030, is designed to reboot the economy and propel the country towards achieving its long-term growth targets.
Dr. Ruto cited his administration’s investments in Special Economic Zones, County Aggregation, and Industrial Parks, and efforts to diversify export markets to bolster the micro, small, and medium enterprise sectors as part of plans that are set to turn around Kenya’s economy.
In an effort to create a more efficient and technology-driven economy, the government plans to leverage science and technology by mobilizing funding for research and development and enhancing budgetary allocations towards reaching the international standard of 2 percent of GDP dedicated to this sector.
Moreover, the establishment of Jumuiya cross-border markets and strengthened trade partnerships are expected to open up new opportunities for Kenyan entrepreneurs, products and services entering neighbouring countries.
Additionally, access to affordable credit is being scaled up through the Hustler Fund, aimed at supporting millions of people at the bottom of the economic pyramid.
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Capital markets
What’s more, Dr Ruto said reforms are underway to create a more favorable tax regime, deepen the capital markets, and improve the lending and investment environment, to attract more investors to Kenya.
Digital transformation is another cornerstone of the government’s economic reboot strategy, with plans to digitize funds aimed at supporting enterprises owned by the youth, women, and persons with disabilities.
Substantial investments will go into infrastructure, including the construction of 6,000Km of new roads, upgrading 101,755km of existing roads and building 277 footbridges, affordable housing units, and the expansion of the national grid to enhance mobility and connectivity across the country.
Other infrastructural projects he cited include the construction of one million affordable housing units, laying 4,600km of high-voltage transmission lines and building 37 sub-stations to connect an additional 2.3 million Kenyans and 30,000 public institutions to the national grid.
“Additionally, an extra 100,000km of fibre-optic cable will be laid,” he added.
Healthcare
In healthcare, the expansion of the ongoing roll out of Social Health Insurance Scheme targeting 10.8 million households and the digitization of health services are poised to improve the health and well-being of millions of Kenyans.
“Over 20,000 health workers will be recruited to support the health commodities supply chain,” said Dr Ruto.
The recruitment of additional personnel in the justice, law and order sector, alongside efforts to root out corruption and wastage of public resources, is equally meant to enhance governance and public service delivery.
With close monitoring and evaluation mechanisms in place, Prime Cabinet Secretary Musalia Mudavadi and National Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u, said that Kenya is set on a path of impactful implementation of its developmental agenda.
