- Category: News and Highlights
The Kenya Institute for Public Policy Research and Analysis (KIPPRA) launched the eighth edition of the Kenya Economic Report (KER 2016) in a colourful event at the Hilton Hotel in Nairobi. A flagship publication of KIPPRA, the report is produced annually and presented to Parliament by the Minister in charge of Planning and National Development.
The report analyses Kenya’s economic performance for the previous year, gives prospects for the next three years and benchmarks the performance against comparator and selected countries. The report is produced in consultation with the Ministry of Planning, Ministry of Finance, and Central Bank of Kenya.
While acknowledging important guests and development partners present, KIPPRA’s Ag. Executive Director Dr Dickson Khainga welcomed guests to the launch, which he noted was a very important event to the institute. Dr Khainga also gave a brief overview of the report before inviting KIPPRA policy analysts Dr Augustus Muluvi and Dr Eldah Onsomu to give detailed presentations of the report.
The 2016 KER launch was officiated by the Ministry of Devolution and Planning Principle Secretary Mr Saitoti Torome who represented the Cabinet Secretary Mr Mwangi Kiunjuri. Before reading the Cabinet Secretary’s speech, Mr Torome emphasized the importance of the KER in generating development plans.
“ The KER 2016 will be instrumental in the preparation of the next Medium Term Plan (MTP3), which we are just about to begin”, noted the PS.
The KER 2016 looks at Kenya’s economy in four broad areas: the Macro and Socio-Economic performance, performance of the key sectors of the economy, medium term prospects and making devolution work in terms of fiscal decentralization.
According to the report, Kenya’s economy grew by 5.6% in 2015 and is expected to reach a growth rate of 5.9% in 2016 and 6.2% in 2017. Mr Torome, however, noted that the growth rates were still low compared to the Vision 2030 target of 10%. According to him, this was because Kenya’s economy heavily relied on agriculture, which contributes more than 25% to the Gross Domestic Product (GDP). The PS said for the country to realize a faster growth, the manufacturing sector needed to contribute 15-20% to the GDP.
According to the PS, many countries in the region are taking transformation and industrialization seriously, as they realize its importance in economic growth.
“Ethiopia, for example, has a clear and elaborate industrialization policy,” said Mr Torome.
While commenting on the report, East African Community Affairs PS Ms Betty Maina noted that Kenya’s exports to the region had declined partly because the manufacturing sectors of neighbouring countries had grown; meaning Kenya needed to diversify its markets and products.
“KIPPRA needs to do an in-depth analysis on what underpins such changes in numbers,” said the Ms Maina.
Ms Maina also emphasized the need for Kenya to explore its maritime potential to better its economy.
Other chief guests who made presentations include KIPPRA Board Vice Chair Ms Emma Mwongeli, Dr Julius Muhia, Secretary, National Economic and Social Council (NESC) and Dr Paul Kamau, Research Fellow, Institute of Development Studies (IDS)