KIPPRA

KIPPRA

An International Centre of Excellence in Public Policy and Research

Development Aspirations Beyond 2030

The study is themed ” Key Drivers for Urban Growth: Case of Kenyan Cities”

Cities are home to over half the global population and are centers of economic growth and innovation. By 2030, two thirds of the world population (5 billion people) is expected to live in cities. It is estimated the numbers will grow to 68 percent by 2050 (United Nations, 2019) due to the high global population and urbanization rates. Urbanization is a key feature of the structural transformation that drives economic growth in cities and urban areas. Notably, the productivity gains created by scale, density, and economic interaction are substantial for cities in developed economies and may be even larger for cities in developing economies (Glaeser and Xiong 2017).

Cities encourage connections between groups of firms through forward and backward linkages, between firms and workers, and between firms and consumers. Urban labour markets reduce search costs, giving firms a larger pool of workers to choose from; proximity also makes it easier for workers to match their skills with potential employers and to learn from each other. Innovation spreads faster across firms in heavily urban and densely populated environments. The productivity gains from urbanization are substantial. Cities are better places to undertake most sorts of investment, to start new businesses, and to create jobs. No country has moved from low-income to high-income levels without urbanization.

Rapid urbanization growth is fueled by structural changes such as countries diversifying into the industry, businesses learning new skills, and individuals moving into new locations, according to the World Bank’s report on growth and urbanization (2009).

Rapid urbanization presents numerous benefits to the population living in cities. One of the key benefits is the increase in the number of jobs in city centers as a result of significant investment in various sectors including industry. The need for businesses to benefit from proximity has resulted in a demand for them to be strategically located in cities. It is also noted that increased concentration of service industries continues to be concentrated in urban areas, which have a large pool of qualified human resources, market access, and a variety of ancillary commercial services.

Rapid urbanization is also associated with various challenges, including growing numbers of informal settlements, increased air pollution, inadequate basic services and infrastructure, and unplanned urban sprawl, particularly for the nearly one billion urban poor who live in informal settlements. Due to their high concentration of people, infrastructures, housing and economic activities, cities are particularly vulnerable to climate change and natural disasters impacts. Further, Cities are major sources of waste and many lack adequate collection, recycling, and disposal solutions. The effects of climate change and other economic shocks are felt more in many of these urban centres due to the large concentrations of people. This brings to the fore the importance of inclusive and sustainability in urban developments. Building urban inclusiveness and sustainability is, therefore, crucial to avoid human, social and economic losses as well as protect the environment and mitigate disaster and climate change risks.

This study is a part of the Vision 2030 and beyond research activities. It focuses on four cities in Kenya. These are: Nairobi, Mombasa, Kisumu, and Nakuru.

The specific objectives of the study are to:

  1. Assess the key drivers for urban development and growth
  2. Review policy and legal frameworks for urban development and growth
  3. Identify constraints and explore on the opportunities for sustainable and resilient growth

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