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Focus on Kenya’s Vision 2030 – Some economic gains

George Kilibwa by George Kilibwa
December 7, 2015
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Reading Time: 3 mins read
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Kenya Vision 2030 was launched by former President Mwai Kibaki on 28 June 2008. The Vision is based on three pillars: Economic, Social and Political pillars. According to the Vision, the country’s Gross Domestic Product (GDP) is supposed to grow at 10% per year from 2012 till 2030. Moreover, the country should have realized its Millennium Development Goals (MDG) this year.

The MDGs have not been realized while the country’s GDP has never grown by 10% since the vision came into effect. However, a lot of economic gains have been made by the country in the last seven years since the Vision was launched. Some of these gains are outlined in their respective sectors below:

Manufacturing

The Special Economic Zone (SEZ) Bill became an Act of Parliament this year. The Act provides a regulatory framework within which licensed SEZ enterprises, developers and operators will operate. The aforementioned groups will also benefit from incentives such as exemption from taxes and duties. The first zone is to be developed in Dongo Kundu, Mombasa while the second is to be developed in Naivasha. These zones will create numerous job opportunities.

Manufacturing depends on cheap and reliable energy. As a result, various projects have been put in place to ensure the country is supplied with cheap affordable energy. Geothermal power plants are already operational in Olkaria and Menengai. The Turkana Wind Power Plant is under construction and when completed, will be the largest wind farm in Africa, covering 40,000 acres.

Tourism

Tourism has been one of the county’s top exchange earners since independence. Kenya is home to wonderful scenic views including Mt. Kenya; wild animals of different species including the big five; wonderful beaches including the best beach in Africa, Diani; and game reserves such as Amboseli and Tsavo. The Wildebeest Migration in the Mara is a wonder of the world that attracts tourists from all over the globe.

The Government has embarked on promoting conference tourism which has led to an increase in employment opportunities. Moreover, the Government is also targeting tourists from BRIC (Brazil, Russia, India and China) aside from the traditional markets of Europe and the US.

Wholesale and Retail Trade

Thanks to the Huduma Centres, doing business in the country is now relatively easier than it was. Company registration can now easily be done, and it takes a relatively shorter time. Thanks to mobile banking and mobile phone money transfer systems, it is now easier to trade and do banking at one’s own convenience. Mobile banking also ensures that traders can easily get loans with the money sent to their phones.

Transport is important to trade. As a result, airports are being expanded and modernised; various major roads such as the Thika Super Highway, dualizing of Ngong’ Road and Outering Road etc are being constructed or have been completed. In addition, work on the Standard Gauge Railway that will link the port of Mombasa to the Malaba border in Uganda is half way done. A second port is also being built in Lamu to complement the one in Mombasa. These will all aid in easing trade.

We will look at Agriculture and Financial services in another post.

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George Kilibwa

George Kilibwa

I am a former investment Analyst who has recently ventured into the business world as a young entrepreneur. In my free time, I use the pen as a sword to shape the world so I can feel how awesome it would have been if I were a writer.

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