57th National Day of The Republic of Kenya: Kenya Vision 2030 Medium - Term Plan III

• Kenya (-) VISION 2030 TOWARDS A GLOBALLY COMPETITIVE AND PROSPEROUS NATION

Kenya Vision 2030 (Swahili: Ruwaza ya Kenya 2030) is the country's development programme from 2008 to 2030. It was launched on 10 June 2008. Kenya long term development blue print, Vision 2030 aims to transform Kenya into an industrialized middle income country offering a high quality of life to all our citizens. Developed through "an all-inclusive and participatory stakeholder consultative process, involving Kenyans from all parts of the country," the Vision is based on three "pillars": Economic, Social, and Political.

The Vision is being implemented through successive five-year medium term plans. This Third Medium Term Plan (MTP III) 2018-2022 succeeds the Second MTP (MTP II) 2013-2017 which implemented the policies, programmes and projects as outlined in the Jubilee Manifesto "Agenda for Kenya 2013-2017 and Beyond". As with its predecessor, this Plan has been aligned with the Jubilee Manifesto 2017, with particular focus on implementing policies, programmes and projects designed to achieve the "Big Four" initiatives. These are: Industrialization, Manufacturing and Agro-processing; Affordable Housing; Food and Nutrition Security; and Universal Health Coverage. Implementation of these four initiatives will not only support higher economic growth and faster job creation, but also reduce the high cost of living affecting many of our people. Kenya made considerable progress during MTP II period, most notably in development and modernization of infrastructure, improved security, human resource development, job creation, expanding access to affordable health care, and in modernizing our public services.

During this Plan period, Kenya will build on these foundations and successes to continue our country's transformation and modernization in order to create more quality jobs, raise the living standards of every Kenyan, end inequality and lift more Kenyans out of poverty. Furthermore, government will continue developing national transport, Information Communication Technologies (ICT) and energy infrastructure to attract global industry and create high quality and hi-tech jobs. Government intends to maintain a stable macro-economic environment and pursue policies that support high, rapid and inclusive economic growth, ensure price stability and sustainable debt levels. Trade with traditional markets will be expanded and new markets for Kenyan goods and services will be established. In addition, the financial sector will be strengthened to ensure that entrepreneurs and investors are supported with affordable credit and other financial services. Employment creation is at the heart of my Second Administration. During the Plan period Government has put in place comprehensive strategies and programmes to create at least 6.5 million jobs. This will be achieved by expanding the manufacturing sector to increase its contribution to Gross Domestic Product (GDP) from 9.2 per cent in 2017 to 15 per cent and increasing agro-processing to at least 50 per cent of total agricultural production. Kenya plan to accelerate growth in manufacturing through the establishment of Special Economic Zones and Industrial Parks, creating an additional 1,000 manufacturing SMEs and providing them with access to affordable capital, training and skills enhancement, access to markets and establishing at least one industry in each county. In the next five years kenya will also put in place measures to create over 1 million online jobs for our youths through the on-going Ajira Digital Programme.

Government intends to strengthen the institutional framework to support creative arts so that the industry can generate wealth and jobs for the youth. The development of the oil and other mineral resources sector and expansion of infrastructure projects, including the targeted construction of at least 500,000 affordable houses across the country are further expected to increase job creation over the Plan period. Food and nutrition security will be largely enhanced through investments in irrigation, affordable farm inputs, and development of the Blue Economy. Kenya will continue to give priority to inclusive and quality education to nurture a globally competitive workforce to drive economic growth and spur job creation. In this regard, we will restructure and modernise our education system to ensure that our graduates are competitive in the 21st century labour market. Measures will also be taken to expand and equip Technical and Vocational Education Training (TVET) institutions and polytechnics to improve the quality and quantity of the middle level workforce, while at the same time aligning the curriculum with industry needs. Government will ensure that every citizen has access to the best possible health care at the most affordable price, including enhancing health care programmes for mothers and children. Administration will also provide dignified support to the elderly and persons with disability through enhancing and expanding our social protection programmes.

In the course of implementing this Plan, Government will sustain the momentum in reforming our public sector through among others, digitization of all government services by expanding and delivery of e-government services, and strengthening policy, legal and institutional frameworks for devolution. In addition, Government will support the strengthening of the Judiciary, improving governance and the rule of law, and the fight against corruption. THIRD MEDIUM TERM PLAN 2018 - 2022 VISION 2030 call upon all Kenyans to remain united so that Kenya can move forward as one peaceful and prosperous nation with a common vision.

KENYA'S ECONOMY

Kenya's economy recovered from the effects of the persistent drought experienced in 2017 coupled with uncertainties associated with general elections held in the same period. In 2019, Kenya's economic growth averaged 5.7%, placing Kenya as one of the fastest growing economies in Sub-Saharan Africa. The recent economic expansion has been boosted by a stable macroeconomic environment, positive investor confidence and a resilient services sector. The growth was principally attributable to increased agricultural production, accelerated manufacturing activities, sustained growth in transportation and vibrant service sector activities. Agricultural activities benefited from sufficient rains that were well spread throughout the country. Similarly, the increased precipitation was a significant boost to electricity generation and consequently favorable to growth during the review period.

CHOOSE KENYA THE LAND OF INVESTMENT

Global firms are looking to make Kenya the pivot of the continental while operation as they race to be part of Africa's growth story. Nairobi, Kenya Capital city is fast becoming the African home of choice for multinational companies, especially those in the service sector, looking to grow their presence in the continent. In the last 5 years, Global heavyweight in the service industry such as IBM, Google PWC, advertising agencies WPP, Bharti Airtel, Nokia, Siemens, Procter andgamble, Barclays and Standard Chartered have announced plans to either set up regional hub in Nairobi or transform their Nairobi based local operation to serve sub-Saharan Africa.

WHY INVEST IN KENYA?

• Strong democracy and political stability.

• The communication hub.

• Kenya is gate way to the Eastern and Central African region

• Liberalized and diversified strong economy.

• Kenya economic blue print vision 2030 is intended to transform Kenya into middle-income country by the year 2030.

• Unlimited opportunities for the investment across sectors and different countries.

• Skilled labor force and culture of entrepreneurship and innovation.

• Proven returns on investment and comparative cost of production.

• Well-established and vibrant private sector.

• Strong presence of leading multinational firms.

• A wide range of suitable tax treaties, trade investment and agreements.

• Membership to the multilateral investment guarantee agency, International Centre for the settlement of investment disputes, and Africa trade insurance agency.

• Relatively well established social and political infrastructure.

• Presence of Institutions and structures for continuous improvement of business environment including quarterly presidential roundtables and committee.

• Ease of doing business 2019 ranked Kenya at position 56 from 61 in 2018. This underscores the reforms undertaken by government to improve business environment

• Compelling tourist prepositions making it possible to combine business and leisure.

• A great place to live and work. Market Access

• Kenya is sizable local market on over 47 million people and growing at about 2.9% annually.

• East African community has an estimated population of 150 million people across 5 states (Kenya, Burundi, Rwanda, Tanzania and Uganda) backed by a customs Union and Common Market Protocol.

• Common Market for Eastern and Southern Africa comprises of 20 member states with a population of over 450 million.

• Tripartite free trade area between EAC, COMESA and SADC has been signed and offered a market of 600 million people.

• The African Continental Free Trade Agreement (AfCFTA) was signed in Kigali, Rwanda, on 21st March 2018. This allows for free movement of goods and services within the continent.

• African Growth and Opportunity Act allow duty in quota free access to the US market for over 6000 products.

• Economic Partnership Agreement with European country community provide preferential access to the larger EU market.

• Generalized system of preferences (GSP) provide access to various markets in the developed world and offers preferential treatment with a wide range of products.

GLOBAL TRADE

Kenya is world largest producer and leading exporter of black tea. The country is also ranked amongst the largest coffee producer in the World. Kenya is also lead exporter of Cut flowers to the European Union with the market share of 35%. Fresh fruits and vegetables feature on the growing list of Exports .Kenya's ten export markets are Uganda, Pakistan, Tanzania, Netherlands, USA, United Kingdom, Democratic Republic of Congo, United Arab Emirates, South Sudan and Egypt. Kenya's main exports are Horticulture, tea, petroleum product, textile and apparel, coffee, tobacco products, iron, steel products, Pharmaceutical products, Essential oil, articles of plastic, among others.

KENYA PAKISTAN TRADE RELATIONS

Relations between Kenya and Pakistan remain warm and cordial. Exports from Kenya to Pakistan have increased from USD 396.6 Million in 2016 to USD. 450 Million in 2019. Imports from Pakistan to Kenya have continued to increase from USD 179.1 Million in 2016 to USD 250 Million in 2019.

Kenya's main export to Pakistan is tea, which accounts for over 80% of the total exports. Other exports include hides & Skin, Onions, carbonates, sacks & bags and cut flowers. Pakistan's major exports to Kenya include rice, wheat, cotton fabrics (Woven) and veterinary products.

Aside from tea, other high-potential export commodities from Kenya to Pakistan include coconuts, dry nuts, mangoes, fresh flowers and powdered milk.

Several factors underpin trade between the two countries, including a strong commitment from the two nations to grow their ties. This is driven mainly by the fact that bilateral relations have become a key cog in transforming the two economies.

Copyright Business Recorder, 2020