DEVELOPING KENYA’S ECONOMY IN THE CURRENT WORLD FINANCIAL SITUATION
Despite the government’s efforts in implementing new political and economic reforms, the Senior Deputy Clerk of the National Assembly of Kenya argues that the administrative, legal and constitutional reforms too need to be addressed in helping the country work through the current climate and ensure that its economy is strong enough not to be undermined should the global situation arise once again.
Mr P. C. Owino
Omolo in Nairobi Mr Owino Omolo is the Senior Deputy Clerk of the National Assembly of Kenya.
Immediately after independence, Kenya preferred a mixed economy in which the government allowed private sector participation alongside state-owned companies. It was fashionable then for young nations to adopt a socialist planned economy as they had no competent indigenous entrepreneurs to run modern commercial enterprises. Government ownership of some strategic corporations was justified because they were too sensitive to be left in private hands. A majority of the current prominent indigenous entrepreneurs in Kenya therefore are a creation of the state. During colonialism, indigenous communities were not allowed to
40 | The Parliamentarian | 2010: Issue Three - Kenya
experience for running modern enterprises like banks, hotels, insurance and construction companies, etc. However, during the so-called lost decade of Africa (circa 1980 – 1990) leaders in several countries engaged in recruiting some of their close associates to run lucrative state-owned enterprises. These associates did not necessarily have the requisite technical
Mr P.C. Owino Omolo
acquire and own certain types of property and if they did, not anywhere of their choice. State- owned enterprises thus played a key role in assisting them to acquire capital, land, skills and
competence, managerial skills and business acumen to manage modern corporations operating in a competitive globalized and dynamic environment allergic to sloth, lethargy, inertia and insularity. They felt entitled to shamelessly use state machinery to enrich themselves at the public expense.