Every year, the Kenya Institute of Public Policy and Research Analysis (KIPPRA) prepares a report analysing Kenya’s economic performance and prospects for the economy in the medium term. This year’s report, themed “Resource Mobilization for Sustainable Development of Kenya”, was subjected to stakeholder validation on Friday 15th March 2019 at Sarova Stanley Hotel, Nairobi in a Workshop graced by Hon. Nelson Gaichuhie, the Chief Administrative Secretary, National Treasury & Planning. The event was attended by representatives from different Ministries, the KIPPRA Board of Directors and private sector.
In addition to reviewing the country’s economic performance, the report focusses on key policy interventions to unlock the potential and mobilize different resources to contribute to the country’s development agenda.
- Growing domestic savings as a percentage of GDP from 10% to at-least 30% to stimulate investment,
- Mobilizing financial resources i.e.
- Strengthening financial institutions and enhancing access to credit e.g. by increasing the deposits base, reforming the CRB to provide meaningful data, reducing government crowding out of private sector credit, etc.
- Reforming the stock market to increase capital access – currently only 62 companies have been listed in the NSE over the last 8 years, only 3 IPOs and 20 corporate bonds issued since 2010.
- Increasing insurance penetration from the current 3%,
- Pension assets (that are still low at 13% of GDP despite having recorded 157% growth from Ksh 420 billion in 2010 to Ksh 1,080 billion as of 2017),
- Reforming Development Financial Institutions (e.g. Kenya Industrial Estates, Kenya Development Bank, among others) to support industrial capacity development – Currently, the support to manufacturing is less than 10% whereas in South Africa 45% of the DFI funding goes to manufacturing.
- Harnessing remittances e.g. through creation of a database to track, reducing transfer costs from current 7.1% to 3%, reviewing the policy and regulatory framework, and educating the diaspora population on investing back home.
- Others included: mobilizing land resources – public land, private and community land, unlocking the Agriculture potential, Mining, Technology and innovation, and Human resource mobilization.
The report was developed in partnership with the National Treasury and will be tabled before cabinet by 31st March 2019 for approval before it is launched. The proposed recommendations will also be considered by the Ministry for planning.