After independence Such an economic system was unsustainable. Consequently, the strong economy Kenya inherited at independence started to shrink. Seeking external resources to finance the budget became imperative. The World Bank and its affiliates recommended painful structural adjustment programmes
pass the bad, retrogressive, repugnant and draconian laws. The re-introduction of multi- party politics in 1991 was expected to lead to the creation of a modern democratic state with a thriving economy. Several new Acts of Parliament were passed to create an enabling environment for fast economic growth, healthy
Changing the economic forecast
Kenya, therefore, seeks to develop its economy in the current world financial situation by strengthening all its national institutions to effectively and efficiently discharge their legal and constitutional obligations. Kenya is affected by what happens elsewhere in the
economic, social and political governance. Vision 2030 is a long- term development blue-print to make Kenya a middle income country by achieving:
• A globally competitive and adaptive human resource base to meet the requirements of a rapidly industrializing economy. This will be done through life- long training and education;
• The top-shopping destination in Africa. Business Process Outsourcing will become the sector of choice for
employment among the youth; and
• An adequately and decently- housed nation in a sustainable environment.
Kenya is building infrastructure so its economy matches its global athletic excellence: world record holder David Rudisha (above) leads Kenyan teammate Alfred Yego in the 800m at the 2010 African Championships in Nairobi.
which forced the government to sell off non-performing or non- strategic parastatals to private interests. Price controls were removed and the government left the market forces to determine economic activities. Its role in economic management was confined to passing the enabling legislation to guide the market place. This was done in tandem with pushing for political reforms. In the absence of the opposition, state resources had been used like private property by the ruling elite who controlled all the armed forces and public appointments. Such absolute power enabled corruption as the elite held the state in captivity paralyzing nearly all institutions. None of this was illegal because Parliament was used to
plural politics and good governance.
However, the events
surrounding the 2007 General Elections vividly laid bare Kenya’s institutional weaknesses and democratic deficit.
Kenyans are now debating on how to implement the new constitution which would create strong institutions necessary for the sound political and prudent economic management of a modern state with sufficient capacity to enforce laws without fear or favour.
A state with weak institutions can still generate tremendous wealth but will ultimately fail to distribute that wealth equitably. This may ultimately cause its disintegration.
world. The global financial meltdown thus reduced the revenue receipts from tourism and exports. Money is the wheel of trade and its management is critical for the sound running of an economy. The financial regulatory authorities like the Central Bank, the Capital Markets Authority and the statutory instruments for managing public finance, the stock market, government procurements, auditing, etc. must be strengthened to reduce or eliminate waste, idle capital or fraud and embezzlement of public funds. The threat of rebellion against any government is real if it does not manage the economy well. That is why Vision 2030 launched by the government last year, identified three pillars to anchor national development, viz,
Kenya has the potential to grow and become an industrial and prosperous country as was demonstrated between 2005 and 2007 when it grew at more than five per cent per annum. Its inability to maintain high levels of growth is attributed to the bad politics and poor governance evidenced by the 2007 General Elections fiasco. In the national budget of 2009/2010, the Government crafted and implemented its own economic stimulus package to make the economy more robust by focusing on the following areas:
• Building produce markets in the countryside for the locals to sell their agricultural products;
• Establishment of an industrial development centre in every constituency;
• Establishment of viable fish farming enterprises in 140 constituencies;
• Establishment of a modern health centre in every constituency;
• Establishment of a modern well equipped secondary school in every constituency;
• Rehabilitation and expansion of irrigable lands to increase food production; and
The Parliamentarian | 2010: Issue Three - Kenya | 41