Foundations for Kenya Vision 2030

  

Date Posted: 11/6/2012 8:33:45 AM

Posted By: 27922152  Membership Level: Bronze  Total Points: 45

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Kenya Vision 2030 is the country's new development blueprint covering the period 2008 to 2030. It aims to transform Kenya into a newly industrializing, "middle-income country providing a high quality life to all its citizens by the year 2030". The Vision has been developed through an all -inclusive and participatory stakeholder consultative process, involving Kenyans from all parts of the country. It has also benefited from suggestions by some of the leading local and international experts on how the newly industrializing countries around the world have made the leap from poverty to widely-shared prosperity and equity. The Vision is based on three "pillars"

Pillars of vision 2030 in Kenya

1. Economic pillar

This pillar aims at providing prosperity to all Kenyans through an economic development programme aimed at achieving a gross domestic product growth rate of 10% per year over the next 25 years. After consultation with experts, stakeholders, policymakers and investors the team settled for six priority sectors that promise to raise Kenya’s gross domestic product by 10%these sectors include tourism, agriculture and livestock, wholesale and retail, trade, manufacturing, finance and business process outsourcing.

2. Social pillar

This pillar seeks to build a just and cohesive society with social equity in a clean and secure environment. This quest is the basis of transformation in eight key social sectors: Education and training, health, water and sanitation, environment, housing and urbanization as well as gender, youth, sports and culture. It also makes special provisions for Kenyans with various disabilities and previously marginalized communities.

3. Political pillar

This aims at realizing a democratic political system founded on issue-based politics that respects the rule of law and protects the rights and freedom of every individual in Kenyan society.

Objectives of vision 2030

1. Equity and poverty reduction- In order to ensure that growth is shared among a number of target fiscal intervention, structural reforms and regional development initiative have been implemented to reduce poverty and inequality in Kenya. Among the anti-poverty intervention implemented are ;
a)Introduction of universal free primary education.

b)Increase in the share of resources allocated towards priority development areas of agriculture and rural development.

c)Improvement in public sector efficiency and effectiveness such as removing administrative barriers to trade.

2)Rehabilitation and expansion of infrastructure- poor infrastructure was identified as a major obstacle in the country economic recovery programme, an efficient to modern infrastructure was seen as one of the most critical factors to lowering the cost of doing business and opening up income generating opportunity for poor households. Thus vision 2030 aims at expanded and well maintained National road network, improved water and sanitation facilities and reliable and affordable energy.

3)Improving governance- reforms have been implemented since 2003 to;
a)Reduce corruption, improve efficiency and ensure effective service delivery in the public sector.

b)Create an enabling environment for increased private sector participation in growth and poverty reduction.

Some of the reforms implemented are –
-Introduction of several legislative platforms in areas of fighting corruption, public ethics and oversight on public finances.

-Enforcement of administrative actions to reduce corruption in public sector, including conducting anti-corruption awareness.

-Strengthened corruption investigative and prosecutorial capacity.

4)Enhancement of security- One of the foundations of vision 2030 is security of the individual and of property. Security is a vital in-achieving and attractive investors both from within and outside the country, thus freedom from fear and danger provide enabling environment for individual and businesses.

5)Economic growth- The growth objective underpinning vision 2030 require the rate of growth of the economy to rise from 6.1% achieved in 2006 to 10% by 2012/2013 and to sustain thereafter. This growth of economy can be achieved through maintaining a flexible exchange rate system that facilitate economies competitiveness in line with export led private sector, also by encouraging investment and saving which is expected to raise GDP.

Challenges facing the government in the implementation of vision 2030

1. Insecurity- Insecurity in the country is attributed by four main factors:
a)Availability of small and light weapons among ordinary offenders, criminals and quasi militia.
b)Political violence.
c)Cattle rustling.
Insecurity lowers the number of tourists visiting the country since some suffer very much from negative publicity on insecurity. This poses a threat to business in the affected areas resulting to slow economic growth and development.

2) Low level productivity- Levels of many crops are below potential productivity and for some agriculture produce; yields and value of 5 year period have either remained constant or are on decline. This has been constrained by factors such as high cost of inputs, over-dependence on rain fed agriculture and lack of market and limited application technology and innovation thus resulting to slow economic growth.

3) Low quality education- Introduction of free primary resulted in increased enrollment without commensurate increase in either infrastructure or personnel. This has led to overstretched facilities, overcrowding in schools, inefficient teacher’s utilization and high teacher to pupil ratio all of which has affected the quality of education at this level. Although enrollment in public university has increased over time, the high costs continue to limit access for a large number of qualified students hindering them from acquiring quality education and skills.

4) Domination in financial services- The banking sector is dominated by four or five large banks which accounts for bulk deposits. The remaining banks are small and have limited outreach; this has reduced competition and resulted in high credit cost. Thus discouraging investment and saving resulting to slow economic growth.

5) Low level of manufacturing- Despite a long tradition manufacturing in Kenya dating back to world war two, continued decline in investment and overall lack of competitiveness has made it difficult for the sector to play a large role in the economy. This has resulted to struggle of many manufacturing companies and some key planters have moved their operations to other countries which have resulted to slow economic growth and development.

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