I

ntr
oduct
ion
TheAugust9Gener alEl
ect i
onwi l
ltakeplacej
usttwoweeksshor tofthe
th
12 anni versaryofthepr omulgati
onoft heConsti
tuti
onofKenya2010.I n
these12y ears,Kenyanshav eseengl i
mpsesofthenat i
onthatweaspi r
eto
be.Wehav eseenhow i ndependenceoft heJudiciaryismeanttocheck
excessesofExecut i
veaut hori
ty.Throughdevolut
ion,wehav eseenhow
downwar d polit
icalaccountabil
itycan be morer esponsiveto people’
s
needscompar edt othecent r
ali
zedt opdownadmi nistr
ati
vestr
ucturesof
yester
years.

Itiswor t
hwhil
etorefl
ectonwherewehav ecomef r
om soast oseemore
clearl
ywher ewear eonthejour
neytothenationthatwewoul dli
ketobe
anddeser ve.Ouraspi
rat
ionisauni
ted,peacef
ul,fr
ee,justandpr
osper
ous
nationthatweprayforever
ytimewesingournationalanthem.

Sixtyyearsago,weachi evedpol i
ticali ndependence,buti tdi dnotdel i
ver
thef r
eedom t hatourf orebear sy earnedandsacr if
icedf or.Thecol onial
State’
sst ruct
uresofr acialdomi nat i
onandpol iticalr epressionwer enot
dismantled.Instead,theywer eappr opr i
atedbyt hosewhoi nheri
tedt he
positi
onsofpowerandpr i
vilegepr eviouslyoccupi edbyt hewhi t
epeopl e
forthei
rowngai nandsel f
-aggr andizement .Pol i
ticalbet rayals, f
all
outsand
anotherpol i
ti
calstrugglebeganal mosti mmedi ately.Thi sst rugglewast o
l
astanot herf i
ve decades.I n 1992,Keny ans secur ed a new pol i
ti
cal
dispensationandbegant or ollbackt hest ructuresofpol i
ti
caloppr essi
on,
buti twoul d be anot her18 y ear s bef ore Keny ans woul d secur et he
constit
utionaldi
spensat ionthatwasf rustratedshor tl
yaf terindependence.

Butthr oughoutallthesestruggles,thereisonedomai nthathasremained

outsidet hepur vi
ew ofpol i
ti
calact ion,andt hati
seconomi cpower .The
colonialstruct
uresofdomi nationandpol i
ticalr
epressi
onwer enotendsin
themsel ves.They wer e means t o an end.Thatend was economi c
domi nation.Whent heytookov er,someofourf oundingfat
hersfoundthe
oppor t
uni t
iesforself-
enri
chmentt oomucht oresi
st,asenti
mentt hatwas
capturedi ntheNdegwaCommi ssionr eportof1971:

“Theachi
evementofindependenceinKenyahasbr
oughtwit
hi tgr
eat
oppor
tuni
ti
esfori
ndi
vi
dualadv ancementbot
hastomai
ncareersandin

1
otherlessort
hodoxway s.I
tisunderstandablethatpublicser
vantsshoul
d
havetakentheiroppor
tuni
ti
esli
keot herci
tizensbutifthebenefi
tsinsome
casesseem outt obeoutofpr oporti
onwi thothercit
izensiti
sinevit
abl
e
thatquesti
onsbeaskedast ohowt hiscameabout .
”

TheCommi ssionwentont omaket heinfamousr ecommendat i

ont hat
l
egiti
mized confli
ct of interest
,thus layi
ng the foundati
on f or the
concentr
ati
onofbot heconomi candpoli
ti
calpowerinthesamef ewhands,
prompti
ngthel at
eJ.M Kariukitowarnofanationof10mi l
li
onai
resand10
mill
i
onbeggar s,t
hecorrupti
onsy ndr
omethatisnowuni ver
sal
lyrecogni
zed
asStateCapture.

Fort hebet terpar tofthreey ear s,wehav ebeencompel ledtodef endour

const i
tut
ionaldi spensat i
on f rom t he same f or
ces t hatsubv erted the
i
ndependenceconst i
tuti
on,andf ort hesamer easons— t opr eser v
eSt ate
Capt ureandi tscount erpar
tt ri
ckl e-
downeconomi cs.Theeconomi ccr i
sis
thatwear ei nisanomi noussi gnt hatwehav ereachedt heendoft hisroad.
Therear enotenoughwhi t
ecol l
armanager ialj
obsi nthepubl i
cser vi
ceor
thesmal lcor por ateeconomyt oabsor bt hehundr edsoft housandsof
i
rrepressibl
ey oungeducat edKeny answi thmi ddleclassaspi r
ations.Itis
no longerpossi blet o exti
ngui sht hoseaspi r
ati
onsby‘ f
ail
ing”t hem i n
exami nati
ons,nei thercanwecont inuet othrow crumbsatt hem suchas
kazikwav i
jana, expor ti
ngaf ewnur sest oBritai
nandsuch, expectingthatit
willstem thet ide,aswecont inuewi thbusinessasusual .Soonerorl ater
,
thedam wi llbreak.

2
APer
fectSt
orm
Wear epr esentl
yconfr
ontedbyt hreechal
lengest hathaveconv er
gedinto
theperfecteconomicstor
m.Thef i
rsti
sanexternal shockofrisi
nginf
lati
on
and int
erestr at
es,occasioned byCov i
d19 related globalsupplychain
bott
lenecks,theeconomicst i
mulusspendingint hemaj oreconomies,and
theUkrainewar .

Theseshocksar er esponsi blef orasur gei npricesaswel lasshor tagesof

commodi ti
es,incl
udi ngpet roleum,edi bleoi l
s,f er
til
izersamongot hers,al
l
ofwhi chi sfeeding i nto ar isei nt hecostofl i
ving t hatKeny ansar e
exper i
encing.Ther i
sei ni nt erestr atesi scausi ngdi fficultiesinrefinancing
ourf orei
gncommer cialdebt .For eigncommer cialdebtst oodatUS$10. 7b
(Sh1.3t r
il
li
on)cont ri
but ing29%off oreigndebtasatendof2021, ofwhi ch
$7b( Sh840b)i sEur obonds,andt hebal anceispr incipallysy ndi
catedbank
l
oans.Ri singinterestr atespor tendr efinancingr iskt hati s,i
nvestorsnot
havingappet it
et orol l
-ov erourbondswhent heymat ur e,oronl ywi l
li
ngt o
dosoati nordi
natelyhi ghi nt erestrat es, inwhichcaset hegov er
nmentmay
havet ofinancether edempt ionoft hemat ur
ingdebtf rom f orei
gnexchange
reserves.

Itwi l
lber ecal
ledthatt herati
onalef orgoi ngi ntosov er
eigndebtmar ket
wasbecausei twascheapert hanbor rowi
ngl ocally
.Butourbondsar enow
tradingatupwar dsof12per cent.Ant ici
pati
ngt hisriskmayber easonwhy
theCent ralBankhasr esort
edt orationingfor eignexchange.Ri singgl
obal
i
nt erestr
ateswi l
lnotonl yi
ncreaset hecostofbor r
owingabroad,butmay
alsobet ransmi t
tedtodomest icinterestrat es,increasi
ngt heoveral
ldebt
ser v
icebur denont hegov ernment ,maki ngbudgetdef i
ci
tr educti
onthat
muchmor echall
engi
ngandaggr avatingthepr oblem ofcr
owdi ngoutofthe
privatesectorfr
om thedomest iccredi tmarket .

Thesecondchal l
engei sfi
scaldist
ress.Thatourpubli
cf i
nancesar enoti n
goodor derissomethingthatcannol ongerbedenied.I nterestcostthis
fi
nancialyeari
sproj
ect edt
obeSh660bandt ot
aldebtserviceatov eraSh1
tr
il
li
on,againstapr oj
ected( andoptimisti
c)Sh2.1tri
ll
ionr evenuet ar
get.
I
nterestcostisnow t hesinglelar
gestexpenditur
eitem ont herecurrent
budget,exceeding the NationalGov ernmentwage bi ll( Sh550b)and

3
dwarfingthecountygovernments’equitabl
erevenueshare(Sh370b)
.Itis
i
mpor tanttonotethatal
thoughforei
gnanddomest i
cdebtareofthesame
orderofmagni t
ude,domesticdebtaccountsforcloset
o80per centofthe
i
nterestcostatSh515b,agai nstSh144bi nter
estonf or
eigndebt. This
underl
ines t he importance of r estor
ing the count r
y’s exter
nal
credi
tworthi
ness.

Thet hirdforcei sthest ructuralweaknessesandi mbalancesi nt her eal

economy .Keny anscont i
nuet obeexasper atedbyapar adoxofi mpr essi ve
GDPgr owthnumber sont heonehand,andt heeconomi char dshipst hat
theyexper i
enceont heother.Thi sparadoxi snotamy steryatal l.Inr ecent
years,growthhasbeendomi natedbyl argepubl ici
nfrastructurepr oject s
(SGRr ail
wayandt henew Nai robiExpr esswayf orexampl e),whi chhav e
verylit
tlemul ti
pliereffectont heeconomy . Domesticf inancingoft he
samehascr owdedoutt hepr oducti
veeconomyi ntheuseofcr editand
otherresour ces.Onesect orwher et hi
si sclearlyevi
denti sagr iculture.
Foodi mpor t
shav ei ncr
easedf r
om 10t o17per centofgoodsi mpor tsov er
thelastdecadewhi ch,inact ualterms,t ranslat
estoa2. 5f ol dincr ease
from $1.2bto$3b.I nt
urn,thishasi ncreasedt hecountry’svulnerabi l
ityt o
globalfoodsuppl yshockssuchast heonewear ecur
rentlyexper i
enci ng.

Thesay i
nggoest hatwheni nahol eoneshoul dst opdigging.Keny a
Kwanzaisveryal
iv
et ot
hiscounsel.Theeconomicturbul
encet hatwear e
i
ndemandsmor ethanamani fest
othatmakesacat al
ogueofpl edgesthat
i
fimplement
edcouldpushthecountrybeyondtheti
ppingpoint.Itrequi
res
acredibl
eeconomictur
naroundplan,aplanthatgivesKeny anscr edi
ble,
real
i
sti
chope.

4
Why“
Bot
tom Up”
?
Fewerthingshav
ecapt ur
edpubl
i
cdebateinthi
selecti
ont
hanthei
deaof
“bott
om upeconomics.”Thi
smanif
estowoul dnotbecomplet
ewithout
elabor
ati
ngwhatiti
s,andwhywethi
nkiti
sthesolut
ion.

TheKeny anwor kf orcei snow i ntheor derof19m peopl e.Oft hese,just

undert hreemi ll
ion,onl y15per centwor kinf ormalj obsi nbot hpubl i
cand
pri
vat esect or,wi thpr ivatesect orempl oy i
ngt womi lli
onandpubl icsector
j
ustunder900, 000.Theot her16mi l
l
ion( 85per cent)wor kinmi croand
smal lenter pri
ses( MSMEs)bot hf ormalandi nformal .TheMSMEeconomy
i
tselfi s ext remel ydi v
er se.I tr anges from wel l-
est abli
shed smal land
medi um- sizef ir
ms( SMEs)t hatof feritsowner sandempl oyeesst able
dependabl eincome, totheunl i
censedst reetv endorswhosel iveli
hoodsar e
akintoadai l
ylotter yinwhi cht heynev erknowwhent heyl eavehomei nthe
mor ningwhet hert heywi llmakeSh100orSh200,Sh300onal uckyday ,or
getar restedandl oseev erythingonabadday .Theeconomi ci mpli
cations
ofbei ngoneort heot herar eaney e-
opener .Accor dingt oKeny aNat i
onal
Bureau of St atistics ( KNBS) dat ai n 2016,l i
censed st abl e MSMEs
gener atedanoper ati
ngsur plusofSh50, 000perempl oyeeamont h,whi l
e
thosei nt he“ lotter y
”economygener atedSh3, 250.I not herwor ds,the
worker sinf ormalMSMEswer e15t imesmor epr oduct iv
et hant hosei nthe
l
otteryeconomy .

Ther ear emanyr easonsf orthisdichotomy .Themostr eadil

yappar ent
reasoni st hehost i
leenv i
ronmentt hatinformalMSMEsoper atein,that
couldnotbebet tercapt uredthant hesightofstreett r
aderschaseddown
thest reetsandbundl edi ntolorr
iesbyt hecountyaut horit
ies.Clearly
,a
traderwhoant ici
pat essuchsi t
uat i
onsi sconstrainedt ocar ryonlyt he
war esthattheywoul dbeabl etofl
eewi t
h, orarepreparedtol ose.Itisalso
thecaset hattherebei ngl ow ornoent rybarri
erstoi nfor
malt rade,there
aret oomanybusi nessesf orthesizeoft hemar ket,meaningt hatmanyof
thepeopl eareunder empl oyed.

Butt hecoreproblem i
saccesstocapi
tal.For t
y-t
hreepercentoft hem
st
artedwi t
hcapitalofSh50,
000ormore,whi leonly6.5per centoft he
i
nformalonesstartedwi
thasi
mil
aramount.Ittakescapit
alt
omakel abour
producti
ve.Af
armerwi t
hoxencanpl
oughthr eeorfourti
mesmor elanda

5
daythanonewhoonl yhasahoe,whileonewithatractorcanpl ough10
ti
mesmor ethantheonewithoxen.Amotor
cyclewil
lincreasetheincome
ofayoungmandodgi ngci
tyaskar
isi
nthe“l
ott
eryeconomy ”from Sh200a
dayonaveraget
oSh400-Sh500.

Thepr i
mar yt
askofeconomi cpoli
cyi ndev el
opmentistomobi li
zeand
i
nf l
uencet heal
locat
ionofcapi
tali
nt hemannert hati
tgener
atesthemost
benef i
tsforthecount r
y.Thesebenef i
tsincludeemployment,equit
abl
e
distr
ibuti
onofi ncome,economicstabi
li
ty,andadequatetaxrevenueand
forei
gnexchangeear ni
ngs.

Thirt
y -
sixyearsago,t heGov er
nmentwr otei nSessionalPaperNo.1of
1986t hat“themoder n,urbanindustri
alsectorcannotbedependedont o
empl oymuchoft hegr owingwor kforce”hence“ l
i
mitedcapitalwil
lrequi
re
thatmostj obsbecreat edi
nagricult
ureandt hei nf
ormalsector”.Accordi
ng
tot he paper,itrequired Sh320,000 to create one job int he modern
economy( Sh4m today ,whenadjustedforinfl
at i
on).I
twar nedthatifwedid
notchanget hemodelanddi r
ectmor ecapit altoagricul
tureandi nf
ormal
sector,si
xmi ll
i
onKeny answouldbeunempl oy edbythey ear2000.

Today,ourindust
ryremai nsoneoft hemostcapi t
alintensi
v eatourlev elof
devel
opmentwher ei ttakesmoret hanSh1m t ocreat eonemanuf act uring
j
ob int hef or
maleconomycompar ed t
o $1000 -$2000 ( Sh120,000 -
Sh240,000atcurrentexchanger ate).Becauseothersect orsinthef or mal
economyar eevenmor ecapit
ali ntensi
ve,hotelandai rli
neindustry ,for
example,t
hecostofcr eat i
ngajobacr osstheentir
ef ormaleconomycoul d
sti
llbe whati twas i ni nthe 1980s.Thi sis notacci dent
al-i ti sa
consequenceofpolit
icalandpolicychoiceswemake.

We hav erecentlyinaugurat
ed a firear
ms factorythatcostSh4b and
cel
ebratedthefactthatitwil
lcreate100orsoj obs.Thiswor ksouttoan
i
nvestmentofSh40m perj ob.Inthesamecount ry,
theCountyGov er
nment
ofKit
uiestabl
ishedagar mentfactor
ywi t
hacapacityfor600jobsatacost
ofSh168m,Sh280, 000perj ob.TheSh4bgunf actor
yinvestmentisthe
equi
valentof24Kituigarmentfactor
iesand14,000jobs.

Wehav eknownf
oratleastfourdecadesthatoureconomicmodelisfat
all
y
fl
awed.The quest
ion is why we hav e st
ayed on thi
s path,why the
gover
nmentdidnotheedi t
sowncl ar
ioncallt
or est
ruct
uretheeconomy ,

6
whywewoul
dchoset
omanuf
act
uregunsr
athert
hangar
ment
s.

Theansweri sconv ergenceofpol i

ticalandeconomi cpower .Asear lyas
1967,onlyfoury earsafteri
ndependence, t
heNat i
onalCounci lofChur ches
ofKeny a(NCCK)f oundi tnecessaryt osetupat askf orcetolooki ntowhat
i
tsaw aswor ryi
ngconcent rat
ionofeconomi cpoweroccasi onedbyt he
Afr
icanisati
onpol i
ciesandappoi ntedi t
sownt askf orce.It
sr eport,ti
tled
WhoownsI ndustr
yi nKenya?war nedofconcent r
ationofeconomi cpower
i
nt hehandsofasmal lmanagerialelit
e.Fouryearslater,anothertaskfor ce
commi ssionedbyt heI nter
nati
onalLabourOr ganisation(ILO)t olooki nto
the problem ofunempl oymentand i nequal
it
y al so zeroed i n on t he
concentrati
onofeconomi cpower :

“Kenyanisati
onhasr adi
call
ychangedt heracialcomposi t
ionoft hegroup
ofpeopleinthecentreofpowerandmanyofi t
spol ici
es, butithashadonl y
alimi
tedef f
ectonthemechani smswhi chmai ntainit
sdomi nance.I ndeed,
thepoweroft hecentreovertheperi
pherymaywel lbegr eatertodayt hanit
wasbef ore,sincethereisacl osercorrel
ati
onofi nterestsbet weent he
urban el
ite,the owners ofl arge f
ir
ms and t he largerf oreign-owned
companies.”

TheI
LOmi ssi
onalsozeroedinont hei
nfor
malsectorasthesol
uti
ont
o
empl
oymentbutasapotenti
alengi
neofi
ndustr
ial
i
zat
ionandgrowt
h:

“Thepopul arv i
ewoft heinf ormal-sectoractivi
ti
esi sthattheyar epr i
mar il
y
thoseofpet tyt r
ader s,str eethawker s,shoeshi neboy sandot hergr oups
“under empl oyed”ont hest reetoft hebi gtowns.Theev idencesuggest s
thatt hebul kofempl oymenti nt hei nformalsect or,farfrom bei ngonl y
mar ginall
ypr oductive,iseconomi call
yef fi
cientandpr ofi
t-
maki ng,though
smal linscal eandl i
mi t
edbysi mpl et echnologi
es,lit
tlecapitalandl ackof
l
inkswi t
hot her(“formal ”)sect or
.Of tenpeopl efailtorecogni set heext ent
ofeconomi call
yef fi
cientpr oductionint heinformalsect orbecauseoft he
l
owi ncomer eceivedbymostwor kersi nthesector.From thev antagepoi nt
ofCent ralNai robi,wi thi ts gl
eami ng sky scrapers,t he dwel l
ings and
commer cialst ructuresoft heinformalsect orlooki ndeedl i
kehov el
s.For
obser verssur roundedbyi mpor t
edst eel,glassandconcr ete,i trequiresa
l
eapoft hei magi nationandconsi derableopennessofmi ndt oper ceivet he
i
nfor malsect orasasect oroft hrivi
ngeconomi cact ivi
tyandasour ceof
Keny a’sfutur eweal t
h. ”

7
Thatthe I
LO mission f
ound itnecessaryto dispense wi
th dipl
omati
c
l
anguageandcalloutthepr
ejudi
cesagainsttheinfor
malsectoritfoundi
n
thehi
gherechel
onsofgovernmenti
sinstruct
ive.

We cannotpost pone t hese cl ari

on callsf oran i nclusive,job creati
ng
economi c modelf orever ,i nf act,notf ormuch l onger.Bot tom up
economi csisabouti nv estingt hel i
mitedcapi talav ai l
ablewher ei twi l
l
createthemostj obs-att hebot t
om oft hepy rami d.Whatdoesi tmean
practi
call
y?Itmeansacommi tmentt oi nvestSh500bov ert henextf i
ve
yearsi n smal lholderagr iculture and t he i nformalsect or.Financial
commi tmentisabsol utelynecessar y,butfarf r
om suf f
icient.Italsomeans
commi tmentt oendexcl usionandcr iminalisationofl i
v el
ihoods,andl evel
playi
ngf i
eldforallinvest orsbi gandsmal l.Bot tom upeconomi csmeans
refor
mingt heNat i
onalHeal thI nsuranceFund( NHI F)andNat ionalSocial
Securit
yFund( NSSF)t ol evelthepl ay i
ngf i
el damongal lKenyansi nterms
ofhealthandol dagesecur ity.I tmeansmaki ngi tpossi bleforaJuaKal i
arti
sant oaffordthecostoft hesecont r
ibut i
ons.I nanut shell,i
tmeans
makingKeny anotj ustami ddl ei ncomecount ryint ermsofGDPav erages,
butami ddleclasssociet yinev erysenseoft hewor d.

8
I
mpl
ement
ati
onFr
amewor
k

Kenyansar er i
ghtful
lyskepti
caloflof
typromisesand seemi ngl
ywel l
-
craf
tedplanst hatnevergetimplement
ed.Wehav edevelopedthisplan
wellawaret hatthi
splanwillst
andorfal
lonthehow quest i
on.Thereare
fourtest
st hatagoodpl anmustpassnamel y,pri
ori
ti
zat
ion,sequenci
ng,
fi
nancinganddel i
very
.

Prior
it
ization
Prior
it
izati
oni scriticalbecauseresour cesar escar cebutal sobecausewe
do nothav et hecapaci tyto do ever yt
hing atonce.Li mi t
ed resour ces
meanst hatwemustchose,butchoosi ngoneper son’spr efer
encesov er
anothercancr eatewi nnersandloser st herebyunder miningt hegoodwi l
l
neededt ohav eev eryonepulli
nginthesamedi rection.Fart ooof ten,thi s
dil
emmai sr esolvedbyt ry
ingtobeal lt hingstoal lpeopl e,andspr eading
resourcest oothinlyacr osstoomanyt hingssucht hatnonei sadequat ely
resourced.Itisther eforeimperati
vet hatt ransparentobj ect i
vecrit
er i
aar e
used,andev er
yonei sabletoseewhati sinitforthem.

Thepr i
oritiesint hi
splanhav ebeenchosenbasedont heimpactonsi x
objectiveswhi ch,i nourvi
ew,hi tthemostbi rdswi t
ht hef eweststones
namel ybr ingingdownt hecostofl i
ving,eradicat
inghunger ,creat
ingjobs,
expandi ng t he t axbase,impr ovi
ng ourf oreign exchange balance and
i
nclusivegr owt h.Thesecriteri
aledust ofivesectorst hatformt hecore
pil
l
ar soft hi splan.Theseare:
-Agr i
culture
-Mi cro, Smal landMedi um Enterpri
se( MSME)economy
-Hous ingandSet tl
ement
-He al
thcar e
-Di git
al super highwayandcr eati
veeconomy

Sequencing
The i
mper ati
vet o al
levi
atet he suff
ering t
hatKeny ansar e under
going
makessequenci ngcriti
cal
.I nthecont extofsevereresour ceconstrai
nts
i
nter
ventionsthatcani ncreasegov er
nmentr evenuequi cklymakei tthat
mucheasi ertof i
nanceot herthi
ngs.Weal sohav etot hinkaboutt hose
i
nter
ventionsthathavelonggest ati
onper i
odbutv er
ysignif i
cantimpactin
afewy ears’
time,butonlyiftheyareiniti
atedingoodt i
me, forexample,to

9
expandcof feeorav ocadoout puti nthreey ear
s’ ti
me, seedlingshav etobe
planted now.Theseconsi der ati
onshav el ed ust o est abli
shf ourtime
fr
amesasf oll
ows;
-Qui ckwins.Thesear ei nterventi
onst hatwi l
lhav eeconomi ci mpact
wi t
hin 6monhts.Exampl es include dai ry and seasonalcr ops and
resolut
ionofpendingbills
-Shor tt
erm.Thesear einter
v enti
onst hatwi l
ldel i
verimpactwi t
hin6-18
mont hs. Examples i nclude est ablishing f eedlots f or cattle and
rehabil
it
ati
onofcr opssuchascof feeandcashewnut s.
-Medi um ter
m.Thesear einterventionst hatwi lldeliverimpactbet ween
18-36mont hs.Exampl esi ncludehousi ngpr ogrammeandUHC,new
treecrops(coff
ee, f
rui
tandnutt rees)
-Longt erm.Thesear einterventionswhosei mpacti sexpect edfrom year
3-5andbey ond,butneedt obest artedi ngoodt i
me.

Fi
nanci
ngPr
inci
plesandFr
amewor
k

Fiscalconsolidati
on.Planmustbef inancedwithi
nabudgetdef i
ci
tt arget
of3per centbyFY2026/ 27.Thi swi l
lbeachievedby( a)Revenueprojection
willnotexceedt heav erager evenuegr owthinprecedingthreeyearsand
expendituregrowt hcappedat75per centoftherevenuegr owthrate( b)
Budgetneut rali
ty.Fornew pr ogrammeswi l
lbef inancedt heresour ces
mustber el
easedbyanot herprogrammeorpr oj
ectthatisei
thercompl eted
orclosed.

Infr
astructur
eFund/ Bank.Aninfr
astruct
uref
undwi llbeestabl
i
shedwith
i
niti
al capi t
ali
zat
ion from pr i
vat
izati
on proceeds, wit
h a v i
ew t o
progressiv
elyreduci
ngt hefi
nanci
ngofcommer ci
all
yv i
abl
einfr
ast
ruct
ure
project
sf r
om thebudget.

Ai
dr esources.Water,heal
th,educat
ionandenvi
ronment/
cli
matechange
wi
llbepriori
ti
zedi
nt heuti
li
zati
onofgrant
sandconcessi
onall
oans.

Pendingbi
lls.Tor emov
epr essureofsett
li
ngpendingbi
llsf
rom t
heannual
budgetall
ocations,atransacti
onsadv i
sorwil
lbeengagedt oadviceon
secur
iti
zat
ionoft heout
standingbil
l
ssubjectt
ov er
ifi
cat
ion.

Del
iv
ery
:Val
ueChai
nAppr
oach

10
Compet i
ti
on f orresour ces bet ween sector
s of t
en under mi nes r ati
onal
all
ocati
onofr esour ces,andal sowast ageofresour cesduet odupl i
cation,
fr
agment ati
onandl ackofcoor di
nati
on.Tomi ti
gatet hi
s, ourpl anadopt sa
val
uechai nframewor k.Av aluechai ndescri
best hepr oductiont omar ket
l
inkagesgener at
ingv al
uet ot hecustomer.Valuechai ni sof tenconf used
withther el
atedconceptofsuppl ychainwhichdescr ibest hepr ocessof
tr
ansforming mat er i
alsi nt
o pr oducts and deliveri
ng t he pr oduct st o
customers.Suppl yChai nsarepr i
maril
yaboutl ogi
sticswhi lev aluechai ns
areaboutunder standinghow cr eati
onofv aluei sdistributedal ongt he
chain.

Ani ll
ust rationi susef ul
.Av al uechai nappr oacht ot hehousi ngpr ogramme
startswi tht hev aluepr oposi tiont ot hecust omeri .e.whatt het argethome
owneri swi l
lingt opayf or.Thev aluechai nappr oachent ailsanswer i
ngt he
quest ionast ohowwecangett hathouset othecust omer .Itwi l
lstartwi th
the quest ion ofhow t he cust omerwi llbuyt he house ( e.g.mor tgage
fi
nance)andendwi thpr oduct i
onofr aw mat eri
als.Asuppl ychai nbegi ns
withr aw mat er
ialandendwi t
hacompl etedhouse. Thehousi ngv alue
chai n i nvol vesmor tgagepr ov i
der s,bui l
dingpr ofessi onals, dev el
oper s,
l
and and r ealest at eagent s,r egulat ors,contract or s,cementand ot her
buildingpr oductmanuf acturer s,mi ning&quar rying,t ranspor ters,utili
ties
(el
ect rici
ty,wat er& sewer age)amongot hers.I nt het r
adi ti
onalsect or al
appr oachmanyoft hesesect orsoper atein“ sil
os”t hatper ceiveeachot her
ascompet i
ng f orr esources,and of ten wor katcr osspur poses,each
focusedonmaxi mi zingt heirshar eoft her evenue, int hepr ocessdr iv
ingup
pricesbey ondt her eachofmostcust omer s.Thisi si nf actt hesi t
uat ion
thatobt ainst oday ,wher ewear epr oducingonl y50, 000uni t say ear ,of
whi chonl y2per centqual i
fyasaf f
or dablehousi ngagai nstanest i
mat ed
requirementof250, 000uni tsay ear .

Mosti
mportant
ly,
focusonv al
ue,
rat
hert
haninput
sandoutputswil
lenabl
e
ustoaddr
esscompet i
ti
venessandval
ueformoneyineveryt
hingthatwe
do.

11
Agr
icul
tur
e
Agri
cultur
eist he l
argestsectoroft he economy ,cont
ri
but i
ng halfof
Kenya’sGDP, aquarterdi
rectl
yandanotherquarterindi
rect
ly.Two-t
hirdsof
Kenyans derive eit
heral lorpar toft hei
ri ncomes f r
om agr icul
ture.
Agri
cultur
et husr emainst hefoundat
ionoft heeconomy .Manyoft he
chall
engesthatwear eexperi
encingcanbet racedt oagricul
tur
eei t
her
dir
ectl
yorindirect
ly.

Atat imewhent hepriceofungahashi tanunpr

ecedentedSh200,t her ol
e
ofagr i
cul
tur
etot hecostofl i
vingneednotbebel abored.Foodaccount s
for54percentofhouseholdexpendituresandthepoorspend60per centor
mor e. Agri
cul
turalproducti
vit
yhasnotkeptupwi t
hpopul at
iongr owth
result
ingi
nhigherdependenceonf oodi mport
s.Ov erthelastdecade,food
i
mpor tshaveincreasedf r
om 10per centto17per cent
.Thi sinturnhas
i
ncreasedourexposuret oglobalpr
iceshocks.

The case fori

nvesti
ng in agri
cul
tur
e as the sect
ort
hatwi
l
llead t
he
economicrecov
eryispredi
catedonsevenfactor
s.

Quickt ur
naround.Fi r
st,agricultureoffer
st hequickestpay backper i
odf or
i
nv estments. Thisi sbecausei nmanycases,t herei snonew capi tal
i
nv estmentr equi
red.Increasingpr oduct
iononl yr equiresaddr essingt he
cost,qualityand av ail
abil
it
yofi nputs( ani
malf eeds,seeds,f ert
il
izers,
pestici
desetc),andpr ovi
dingf armer swit
ht hewor kingcapi taltobeabl et o
purchaseadequat esuppl yoft hei nputsaswel lasot herdi rectpr oduct i
on
expensessuchaspl oughingofl andandl abour.Consi dert hecaseofdai ry
sector.Thebi ggestchallenget hatfarmer sarefacingist hecostofani mal
feeds.Weknow t hatnut ri
ti
oni mpact sonmi lkproduct ioni namat terof
weeks.Wi thadai ryher dest i
mat edat2. 2mill
ionani ncreasei nav erage
productiv
ityby0.5kgpercowt r
ansl at
est o330m ki l
ogramsofmi lkwi tha
farm gatevalueofSh13batSh40perkg.Wehav eestimat edt hatprov isi
on
ofSh4000percow, atotalofSh8. 8bwoul dbesuf fi
cientwor ki
ngcapi t
alf or
ourdairyfarmers.

Costoflivi
ng.Thecostofl iv
ingthatwear eexperi
enci
ngcanonlybe
resol
vedbyrai
singagr
icul
tur
alproduct
ivi
ty.Thebat
tl
eisbetweenf
armer
s
needi
nghigheri
ncomesandconsumer swhowantlowpr i
ces.Mai
zeisa

12
goodexampl e:PlantinganacreatacostofSh5000andpr oducing10bags
equat estoacostSh500perbagwhi l
eproducing25bagsequat estoacost
pfSh200perbag.Sot hehi
ghert henumberofbagspr oducedperacr ethe
l
owert hecostofpr oducti
on.Af armermayseepr i
cet heyar epaidand
costofdi eselast hemainchal l
engewhi leinf actt hepr oblem isl ow
product iv
ity.Thesameappl i
est ofi
xedcost ssuchasl abour ,si
nceweedi ng
anacr ewithat enbagor25bagcr optakessameamountofl abour.Soby
enhanci ng pr oductivit
ythrough access t o aff
or dablei nputsi ncl
uding
fert
il
izerandcer tif
iedseedswewi llseethef ar
merear ningmor emoney
and subsequent lyr educi
ng the si x mil
l
ion bags i mpor ted on average
annual lyandl owerthecostt otheconsumer ,

For eignexchange:Asnot ed,ourdependenceonf oodi mpor tshasgr own

consi der ablyinrecenty ear s.Edi bleoil
s,palm oilprimaril
y,isoursecond
l
ar gesti mpor tafterpet roleum,onwhi chwear espendingSh60bay ear
($600m)bef oret her ecentpr i
cesur ge,whichpushedt heimpor tbi llt
oov er
Sh90b( $750m) .Ourr i
cedef ici
ti sint heor derof600, 000MT,cost ing
Sh25b( $208m)aboutt hesameasourcof f
eeexpor tear
nings.Thr eef ood
commodi ti
esedibleoi l
s,wheatandr i
cear econsumi nganequi v alentof25
per centofourmer chandi se( goods)expor tearni
ngs.Wehav et hecapaci t
y
topr oduceabi ggershar eofourconsumpt ionofbot hedibleoi lsandr ice
compet i
tivel
y. Agr icultur ei sal sot hesect orthatwear emostgl obal l
y
compet i
tivebothi nt raditionalexpor t
ssuchast ea,coff
ee,cutf lower sand
veget ables as wel las emer ging exportcr ops such as av ocado and
macadami anuts.Cof f
eepr oduct i
onhasf all
ent obelow40, 000MTf r om a
peakof130, 000MT,agai nstanest imatedpot enti
alof200, 000MT,whi ch
transl atest oapot ent i
ali ncr easei ncof f
eeexpor tearningsf ive-fol
d.We
hav esev eralexportcr opst hathav ecoll
apsednot ablypyrethrum, whi chwe
wer eoncet hewor l
d’ sl eadi ngpr oducerwi t
hov er90per centofwor l
d
mar ketshar e,cashewnut sandbi xa.

Jobs:Agr icul
tur
e has t he highest employment mul tiplier eff
ect i.e.
agri
cultur
algrowt h cr
eatesmor ej obsin ot
hersect orst han anyot her
sector,
owingtoi t
sst r
ongf or
war dandbackwardlinkagest oot hersector s
oftheeconomy .Researchconduct edbyKenyaI nsti
tutef orPubl i
cPol i
cy
ResearchandAnal ysis(KIPPRA)showst hatfouroft hef ivev aluechains
withthehighestjobcreati
ngimpactar eagri
cult
ural.Thef ivear eli
vestock
(cat
tle,
sheep&goat s),hotel
s&r est
aurant
s,poul
try,vegetabl esandrice.

13
Incomes.Asnot ed,twot hirdsofKeny ansder i
veal lorpartoft heirincomes
from agr icul
ture.Thus agr i
culture-l
ed gr owth wi l
lputmor e moneyi n
peopl e’
spocket sdi rectlyt hananyot hersect or. Thi sal someanst hat
agricult
uralincomeshav et hehi ghestincomemul ti
pli
eref fect,thati s,
whenf armershav emoney ,theybuyconsumergoodsandser vicesfrom
othersect or
s.Mor eover ,giv en the large shar e off ood i n househol d
expendi t
ures,sav i
ngsonf oodcost shav eav eryl argemul ti
pli
eref f
ecton
othersect ors.A10per centr educt i
ononcostoff oodf orami ddl eclass
househol dwi t
hamont hlyf oodbudgetofSh20, 000t ranslatestoasav ing
ofSh24, 000 pery ear.Nat i
onally,t he food expendi ture ofSh3 t ri
ll
ion
translat
est oasav i
ngofSh300bt hathouseholdswi l
l spendonot hergoods
andser vices,equivalentofaneconomi cstimulusint heor derof10per cent
oft hebudget ,or2.5per centofGDP.

Endingpov ert
y:Ext remepov ertyandv ul ner
abi
li
tyisalsoanagr i
cult
ural
phenomenon.Anest imatedt womi l
li
onhousehol ds,oneinsix,arefood
poor.Thatmeanst heyar eunabl etomeett hebody’sfoodrequir
ement s
ever
yday .Thev astmaj or i
tyofthesear ef armer
s.Theyhavelandbutthey
l
ackt heresourcest oraisepr oducti
vit
yt omeett hei
rsubsist
enceneeds.
KenyaKwanzabel ievesthatsuppor ttof armerstorai
seproducti
vi
tywoul d
notonlyenablethem t of eedt hemselves,butalsogenerateasurplusthat
contri
but
est onational f
oodsecur ityandt heeconomy.

Industri
alization:Ourmanuf act ur
ingsect ori slargelyagr i
culturebased,
withf oodpr ocessingandbev eragemanuf acturi
ngal onecont ributing40
percent and 48 per cent of manuf actur i
ng empl oy
ment and GDP
respectively.Whennon- f
ood agr o-processi ng isadded,agr o-
pr ocessing
becomesmor ethan halfoft hemanuf acturing sector
. Mor eov er,the
manuf acturingt hatisnotagro-basedi shighl ydependentoni mpor tedraw
mat eri
alssuchasmet als,chemi calsandpl asti
cs.Asnot ed,agr i
cultureis
ourmostgl obal l
ycompet it
ivesect or,andi nef fect,addingv aluet oour
agricult
uralexpor tsisa mor ev iabler out et o grow ourmanuf actured
expor t
st han i ndustri
es thatar e heavil
y dependenton bot hi mpor ted
machi neryandr awmat eri
als,andwhi chouronl yv al
ueaddi ti
onisl abour.

TheKenyaKwanzaCommi tment
 Provi
deadequat
eaffordabl
ewor ki
ngcapi
talt
ofar
mer
sthr
oughwel
l
managedfarmeror
ganizati
ons.

14
  Deploymoder nagr icultur alri
skmanagementi nst r
ument st hatensure
farmingi sprof i
tableandi ncomei spr edictable, suchaswaspr ovided
forschedul ed cr opsbyt heGuar ant eed Mi nimum Ret urns( GMR)
Schemei nt he1970s.Thesei nstr
ument si ncl udecr opandl i
vestock
i
nsuranceschemes,commodi tymar ketinst rument ssuchasf orward
contracts,futurescont ractsandpr i
cest abilizat i
onschemes.
 Transform 2 mi lli
on poorf armer sf r
om f ood def i
citt o surplus
producer sthr oughi nputf i
nanceandi ntensi veagr i
cul
turalextension
support,wi that argett ogener atemi nimum pr oductiv
ityt ar
getof
Sh50,000r ev enueperacr e
 Raisepr oduct ivit
yofkeyv al
uef oodchai nsv aluechains( maize8-
15bags/ acre,dai ry2. 5kg-7. 5kgpercow/ day ,beefcar casswei ght
from 110kg-150kg)
 Reducedependenceonbasi cf oodi mpor tsby30per cent( domest i
c
oilcropspr oduct i
onf r om 5 per centt o 25 per cent,ricef rom 18
percentto40per cent )
 Revampunder perfor mi ng/col lapsedexpor tcr opswhi l
eexpandi ng
emer gi
ng ones ( cof fee, cashew nut s, py rethr
um, av ocado,
macadami anut s)
 Boostt eaval uechai n( blending&br anding)

Fi
nanci
alCommi
tment

Sh250bshi
l
li
ngsi
nFY2023-FY2027

15
Transformi
ng t
he Mi cr
o, Smal
l and Medi
um
Enterpri
se(
MSME)Economy
TheMSMEeconomycont r
ibutes85per centofnon- farmj obswhi chtoday
translates to 15 mi l
li
on outof18 mi l
li
on wor kforce.Pr esent l
y,iti s
absor bing9outof10oft hey oungpeopl ejoiningthewor kforce,750,000
onav er age,whi l
et hef or
malwagecor porateeconomybar el
yabsor bs
50,000. KNBS dat a show t hat when pr operl
y est abli
shed MSMEs
cont ri
but ev ery si
gnifi
cantlyt ot he economy gener ati
ng an oper ati
ng
surplusperwor kerofov erSh50, 000permont h,thi
si st osaySh600, 000
pery ear . Howev er,an estimat ed 10m i nformalMSME oper at
orsand
wor kersgener atelessthanSh5, 000i ncomepermont honav erage,whichi s
below t hel i
vingwagef oroneper son.Thi si sar eflecti
onoft hehost il
e
env ir
onmentt hatt heyoperatei n,cr i
minalizationoft heirent erpri
ses( e.g
hawker s),aswel lasdi sguisedunempl oyment .These10m peopl e,who
representhal fofKeny a’
swor kfor ce,aret hecount r
y ’
smostunder uti
li
zed
resour ce.Ourest imatesshowt hati fthesewor kerswer easpr oductiveas
thosei nestablishedSMEs,t heywoul dbegener ati
ngSh6t rill
i
onay ear ,
whi chis60%ofGDPi .
etheeconomywoul dbe60per centlarger .

TheKeny
aKwanzaCommi
tment

 Endcrimi nali
zati
onofwor k.Wewi llenactrighttoworklawmaking
tr
adinglicenseandpr ovisi
onofat r
adingl ocati
onanent i
tl
ementto
everycit
izenwhoappl ies.Wewi l
lwor kwithcount ygover
nmentsto
provi
deonest r
eettradingpremiseper50ur banr esi
dent
s,wit
hav i
ew
toincr
easi ngaveragedailyincomeofinformal t
radersbySh200.

 Regressivetaxat
ion,bureaucracyandr egulator
ycompl i
ancecost s.
Wewi llr
eviewandr ati
onalizeal
lbusinesslicenses,captot
alli
censes
at1.5 percentoft ur
nov er,and enactadmi ni
str
ativ
e burden law
(si
milartoUSReduct i
onofPaperWor kAct )ensuri
ngnobusi ness
spendsmor ethan4per sonhour samont hont axandr egulat
or y
compl i
ance.

 Accesstof inance.WewillcommitSh50bay eartoprovideMSMEs

with 100 percentaccessto af
fordabl
ef i
nance t
hrough SACCOs,
venturecapital
,equi
tyfundsandl ong-
ter
m debtf orstart
-upsand

16
 gr
owt
h-or
ient
edSMEs.

 Inf
rastruct
ure&Capaci t
yBuil
ding.Wewi l
lestabl
ishMSMEBusiness
DevelopmentCent rein ever
y war d,and an indust
ri
alpar
k and
businessincubat
ioncentr
eineveryTVETinsti
tuti
on

Fi
nancialCommit
ment
Sh250bFY2022/
23-FY2026/
27

17
Housi
ngandSet
tl
ement
Urbanhousi ng.
Housi ngi senshr i
nedi nourConst itut i
onasoneoft hebasi csocialand
economi crights,towit,therightt o“accessi bl
eandadequat ehousing, and
toreasonabl est andardsofsani tati
on”( Art.43(b)). Ther equi r
ementf or
new ur ban housi ng i
sest i
mat ed at250, 000 uni t
spery ear,againsta
product ionof50, 000uni ts,translatingt o defi
citof200, 000uni ts.The
cumul at i
vedef i
citisestimatedatt womi l
li
onuni ts.Asar esult,moret han
60per centofur banKeny ansar el ivingi nslumsandot herl ow-qualit
y
housing wi thout adequat e sani tation,under mining t hei r digni
ty and
exposi ngt hem t oheal t
hhazar ds. Thi si salsoar efl
ect i
onoft hebi as
towardsupperi ncomehousi ng.Oft he50, 000uni tsbei ngpr oduced,only
twoper centi.e.1000uni tsarecl assifiedasaf fordablehousi ng.Mor eover,
ourrapi dur banisationrateat4. 4per cent ,equivalentt o500, 000new ci t
y
dwellersay ear,meanst hathousi ngsuppl yisamov i
ngt arget .

TheKeny aKwanzaCommi tment

TheKeny aKwanzahousingcommi tmenti
st oturnthehousingchall
enge
i
nto an economic opportuni
ty. Nextt o agri
cult
ure,we see housing
product
ionasthesectorthatwillcr
eatequal
it
yjobsf orthe100,000orso
youngpeoplethataregraduatingf r
om TVETsev eryy eardi
rectl
yinthe
constr
ucti
on sectorand indir
ectlythr
ough the producti
on ofbuildi
ng
product
s.Wewi ll
:

I ncrease suppl y of new housi ng to 250, 000 per annum and

percentage ofaf for
dable housing supplyf r
om 2 per centto 50
percent.We wi l
lachi evethisbyst ructur
ing affordabl
elong-t
erm
housingf inanceschemes,i ncl
udingaNat i
onalHousi ngFundand
Cooper ati
v eSocialHousingSchemes,t hatwi l
lguaranteeofft
akeof
housesf rom developers
 Grownumberofmor tgagesfrom 30,
000t o1,000,
000byenabl i
nglow
-costmor tgagesofSh10, 000andbelow
 Strengthen Jua Kal ii ndustr
y capacityt o produce high quali
ty
const r
uctionproducti
ons
 Givedev elopersi
ncent i
vestobuil
dmor eaf f
ordablehousing.

Rur
alhousi
ngandset
tl
ement

18
Ther i
ghttohousi ngasenshr i
nedbyt heconsti
tuti
onisnotlimitedtour ban
sett
lement s.Indeed,thev astmaj orit
yofKeny ansliveintheirownedr ural
homes.Thatsai d,ruralKeny aalsohasi t
sf ai
rshareoflandandset tl
ement
rel
atedchal lenges,incl
udi ngl andl
essness,insecurelandt enure,notabl y
thehistori
calsquatterprobl em intheCoastr egi
on.Populati
onpr essureon
l
and r esourcesi smani f
est ed byland f r
agmentati
on,encr oachmentof
for
estsandot herecologicallysensit
iveareasandhumanwi l
dlif
econf l
ict.

Thisisdespi t
et hecountryhav ingconsiderableamountofunusedand
underut
il
isedagr i
cultur
alland. Ov erthey ears,admini
str
ati
vesol ut
ions
suchasl imi
tsonl andsubdivi
sion,aswellascei li
ngsonlandowner ship
andtaxi
ngofi dlelandhavebeenmoot ed.KenyaKwanzai spersuadedthat
suchmeasur esshoul dbealastresortandmor efri
endl
y.

Keny
aKwanzaCommi
tment
 KenyaKwanzacommi tstoest abl
ishaSet tl
ementFundsi mil
art othe
one thatwas used t o acqui rel and fr
om set t
lerf armer s after
i
ndependence.
 Toav oi
dthesamepr oblem ofl andf ragment at
iont hatweseekt o
sol
ve,thelandpurchasedbyt heschemewi l
lbesubj ecttol anduse
pl
anningwher ebenef
ici
arieswi l
lownt ransferabl
er esidenti
alpl ot
si n
pl
annedset t
lement,andr ighttol easenon- t
ransferableagr icult
ural
l
and.

Fi
nanci
alcommi
tment
Sh250bFY2022/ 23-FY2026/27ofwhichbudgetcommitmentSh50b,wi
th
Sh200b t
o bef inanced bypension f
unds.(
AssetsUnderManagement
(AUM)current
lyst andsatSh1.5t r
il
li
onandothercol
lect
iveinvest
ment
schemesincl
udingdiasporabonds)

19
Heal
thCar
e
Agoodheal t
hcaresyst
em issomet hi
ngallcountr
iesst r
ugglet oachieve.
TheCov i
d19pandemichasdemonst rat
edhow impor t
antt hi
si s,andalso
shown t hateven weal
thy count
ri
es can be badl y exposed by health
emer genci
es.Oneofthelessonsfrom theCovid19crisisisthatalthough
resourcesmat t
er,t
hequali
tati
veaspectsofthesy stem mat termor efor
healt
hout comes.

Ourcount ryi smov i

ngi nt her i
ghtdi recti
on,butweneedt o bemor e
creative,del i
ber ateandambi tiousi nhowweuset hesubst anti
alresources
thatwear espendi ngonheal thcaret oaddr essbot hol dandemer ging
challenges.Weneedt obui l
dont hemoment um ofr ecoveryf r
om t he
Cov i
d19pandemi ct obui l
dbackbet ter,forweknow notwhent henext
healthemer gencywi l
lhi t
.Ofpar ticularconcer nist hegr owingbur denof
non-communi cabledi seases,cancer s,hear tdiseaseanddi abetesr el
ated
compl icationsi npar t
icular,thati fnotaddr essedur gent l
y,willbecomea
threatnotj ustt oheal thbutt ot hesoci o-economi cwel l
beingoft hecount ry.
Present ly,36per centofKeny ansar eatr i
skofbei ngi mpov eri
shedbyt he
fi
nanci albur den ofcat astrophici l
l
ness.Ther ei sal so thequest i
on of
fi
nanci ngofpr ogramst hatar ecur rent l
yheav il
ydonordependentandy et
notpr oper lypl annedf ortransiti
ont odomest icfinanci ngev enasdonor s
make pl ans t ot ransiti
on out .The HI V,TB,Mal aria,Fami ly Planning,
Immuni zation,andnut r
it
ionpr ogramsar ekeydonorf undedpr ogramsand
thegai nsal readyr eali
zedasacount rymustbesaf eguar ded.

Themostr ecentassessmentshowst hatourt

otal heal
thexpenditur
e( THE)
stands atSh550b pery ear ,fi
nanced bygov er nment( 63 percent),by
households“ outofpocket
”( 27per cent)andthebal anceof10per centalso
byhousehol ds t
hrough insurance schemes.The outofpocketshar e
transl
atestoSh150bpery ear ,whichi sabigburdent ohousehol ds.Thisis
ther easont hatonei nthr eef ami l
iesisatr iskoff all
i
ng into povert
y
i
mpov er
ishmentbyt hefi
nancialbur denofcatastrophicil
lness.Thenumber
i
sgr owingdai l
yasthenon- communi cabl
ediseasebur dengr ows.

Overthelastdecade,consi
derabl
eprogr
essmadeinenr
oll
ingKenyansin
NHIF,has seen insur
ance penet
rat
ion doubl
efr
om 10 per
centoft he
popul
ati
oni n2003,t o20percentin2018.Thatsai
d,t
hepenetrat
ionis

20
unevenwi t
hNair
obiatover40percentwhi l
eWajiri
ssti
llbelowonepercent
.
Thisincr
easeincontri
but
ionswasachi evedpartl
ybyincreasedenrol
l
ment
andpar t
lybychangeofcontri
but
ionstructuref
rom aflatrateof
Sh300per
mont htoagr aduatedcontri
but
ionr angingfrom Sh150t oSh1700per
person.

Butt heNHI Fst i

llfal l
sf arshor toft hesoci alheal thinsuranceschemet hat
i
toughtt o be bot hi nt er ms ofi ts desi gn as wel las oper ational
perfor mance.Theseshor tcomi ngi nclude:
•NHI Fi spr i
mar i
lydesi gnedt obef undedbyst atutorypay r
olldeduct i
ons
from empl oyeesi nt hef ormalwageeconomy .Asobser vedear lierint his
mani fest o,t hisnumberi sonl y15per centofKeny a’swor kforce.Whi l
e
NHI Fhassoughtt oexpandcov eraget ot hev astmaj ori
tywhoar esel f-
empl oy edt hroughv oluntaryenr ollment .Thi shascomewi thchal lenges
not ablyi ntermi ttentpay ment st ypicall
ypeopl eenr oll
ingwhent heyar e
unwel l.Thi si s a sy stemi c problem ofi nsurance known as adv er se
select ion.The st atutory pay rollsy stem i s also inequi t
able because
deduct ioni soni ndi v
idual swhi lebenef i
tsaccr uet ohousehol ds.Thus
househol dswi thonepay rollwor kerandt hosewi tht woormor er ecei ve
thesamebenef itsev ent hought heycont ri
but edi ff
erentamount s.
•Shif ttowar dscur at i
veatt heexpenseofpr ev entivecare, withtheshar eof
inpat i
entexpendi tur eincreasi ngf rom 23per centto29per centov ert he
lastdecade( 2010-2020) ,whilet hepr event ivecarespendi ngdecl ining
from 24t o12per cent.Theshi ftf rom cheapt oexpensi veisasy stemi c
probl em wi thi nsur ancef inancedheal thcar esy stems.
•Fragment edov erlappingschemeswi thi
nt heNHI F,e.g.,Lindamama, civ i
l
serv ant sscheme,schoolchi l
drenandel der lysuppor tthatunder minet he
principl eandbenef itsoft hewi destpossi bler iskpool i
ng,t hatasoci al
heal thi nsur anceschemei ssupposedt oprov ide.
•Theoper ational capaci t
yhasnotgr owni nt andem wi thenr ollmentl eadi ng
toi nef ficiency ,highadmi nistr
ativecost ,andpoorr esponsi venesst oi ts
cust omer sandser vicepr ov i
ders.

Keny
aKwanzaCommi
tment

Wear ecommitt
edanddeter
mi nedtor eal
i
setheconstit
uti
onalri
ghtto
heal
thinthe shor
testt
ime possi
ble bydeli
ver
ing a Univ
ersalHeal
th

21
Coverage( UHC)sy stem builtont hreepillar
sasf oll
ows:
-Fully publ i
clyf inanced pr i
mar y heal thcare ( preventive, promoti
v e,
outpat ient& basi c diagnost ic services),thatgi ves pat i
ents choice
betweenpubl i
c,faithbasedandpr i
vat eproviders,basedonar egul
ated
tari
ff
-Univ ersalseaml essheal thi nsurancesy stem compr i
singamandat ory
nationali nsur
ance ( NHI F)and pr i
vat einsur ance as compl ementary
cov ers, withNHIFast hepr imar yandpr i
vateassecondar ycover
-Nat i
onalf undforchr onicandcat astrophicillnessandi nj
urycost snot
cov ered( orwit
hv eryrest r
icti
vecov er)byi nsur ance( cancer,diabet
es,
strokes & acci dent r ehabi l
it
ation, pandemi cs) t o be f unded by
combi nationofinsurancel ev yandGov ernment .

I
mpl
ement
ati
onandRef
orms

Pr
imar
yheal
thcar
esy
stem.
Wer ecognizet hatourhealthcaresy stem consist
sofpubl ic,pri
vateand
fai
th-basedpr ov i
der
s,andeachoft hem playsacr it
icalr ol
e.Pr esentl
y
howev er,publ
icmoneyonl ygoest opublicinsti
tut
ions,whi chmeanst hat
peoplewhoar enoti nsuredhavet opayoutofpocketf orpr i
mar yhealth
servi
ceswhent heyseekservi
cesf rom fait
h-basedandpr ivateproviders,
oftenbecauset hepublicheal
thf acil
i
tiesarenotr esponsi ve.Webel i
eve
thatKeny ansshoul dhav echoice,andt heyshoul duset heirtaxmoney
wher etheygett hebestv al
ue.Tot hisend,wewi l
ldeli
nkf i
nancingof
pri
mar y healthcaref r
om publ i
cf acili
ti
es by est abl
ishi
ng st akeholder
managedPr i
mar yHealthCare(PHC)Fundsasst rat
egicpurchaser sateach
“Level4”facil
i
ty.

Heal
thCommodi
tySuppl
y
Wewi llestabl
ishastakeholdermanagednat i
onalpr
ocurementscheme
(al
ong the li
nes ofthe petrol
eum products pr
ocur
ementscheme)t o
l
everage on bul k purchase and also t o bri
ng tr
anspar
ency and
accountabi
l
ityinthepubli
cprocurementprocess.KEMSAscandalsmust
end.

Phar
maceut
ical
s and consumabl
e medi
calsuppl
i
es account f
or an

22
estimated20per centoft otalheal t
hexpenditures,whicht ransl
atest oa
domest icmar ketwor thSh110b.Phar maceuti
calsi mportsi n2020was
Sh76b( 70per centoft heSh110best imatedmar ket)meani ngthatwhen
otherimpor tedsuppl i
esar ef actoredin,domesti
cpr oducti
onsuppl iesl ess
than20per cent.Domest icphar maceuti
calmanufacturer
shav ecapaci t
yt o
manuf actureabi ggershar ecompet i
ti
vely
,butarehamper edbyhi ghcost
ofdoi ngbusi nessandt axr egime( toextentofshi f
ti
ngmanuf acturingt o
neighboringEACcount ri
esandexpor t
ingtoKenya).Wewi l
l
:
(a)wor kwi thphar maceut i
cali ndust
rytoaddresst hetaxr egimeandcost
ofdoingbusi ness
(b)leverageonUHCt oi dent i
fyandscal eupmanuf acturi
ngofessent i
al
supplieswecandocompet iti
v ely
(c) leverage on our human capi ta to wor k towar ds a r egional
pharmaceut icalmanuf acturi
nghub.

HumanResour ces
Ourheal thpr of essi onal sfeel shortchangedbydev ol uti
onofheal thser vi
ces.
Theyar eoft hev iew t hatthey ,andheal thser vicesi ngener al,woul dbe
betterser v
edbyacent rali
zedsy stem si milart ot eacher s,not i
ngt hatt he
TSCi sent renchedi ntheConst ituti
on.Theyhav epr oposedasi milarHeal t
h
ServiceCommi ssiont hatshoul dal sobeent renchedi ntheConst it
uti
on.
Count yGov er nment sont heot herhandconsi deri tv eryimpor tantt hatthe
health pr of essi onals shoul d be account ablet ot hem.Mor eov er,the
centralized sy stem t hatpr eceded dev olution wasassoci ated wi t hv er
y
i
nequi table di str i
bution of heal th pr ofessi onal s because t hey coul d
i
nf l
uencet hei rpost i
ngt of avorablel ocations. Manyoft hehi stori
call
y
mar ginalizedcount iesdi dnothav easi nglespeci alist .Bothposi tionshav e
mer i
t.I nfact ,Count yGov ernment sacknowl edget hatt heydonothav ethe
resour cest osponsordoct orsf orf urt
hereducat i
on,ormoneyt opaybot h
thedoct oronst udyl eav eandt her eplacement ,yett heyalsoacknowl edge
thatt hecount yheal thser v i
cesneedspeci al
ists. Wei nKeny aKwanza
beli
ev et hatt hi sconundr um i ssol vable.Whati tr equiresisgoodwi lland
honestmedi at or s.Wel lwi l
lbet hathonestmedi at or.Wepl edget owor k
togetherwi tht heheal thwor ker sandcount ygov ernment stof indasol uti
on
withint hef i
r st100day sofouradmi nistrati
on.

Communit
yhealthi
sthebedrockpr
event
iveheal
thcare.Doctorsest
imat
e
that70percentofcasesseeninourhospital
sar epreventabl
e. Iti
s

23
esti
matedt hatoneshil
li
ngi nv
est edi ncommuni t
yhealthhasar et
urnof
nineshi
ll
i
ngssav edi
ncurati
veheal thcosts.KenyaKwanzai scommitt
edto
ensuri
ng thatourpr i
mar yhealth carehasatt hev erybottom a wel
l-
resour
cedcommuni tyhealt
hsy stem.I nt hi
sr egardtheKeny aKwanza
nati
onalgov ernmentwil
lcontribut etot hest i
pendspaidt ocommuni t
y
healt
hworker sbycount
ygov er
nment sonamat chingbasi
s.

HealthInformat i
onTechnol ogy
We wi l
lleverage on i nformat i
on technology to driv
er esponsiv
eness,
effi
ciency,seaml essness bet ween providers,t r
ansparency and fr
aud
preventi
on.Wewi llpr
ocur eassoonaspr acticall
ypossibleastate-
of-
the-
artheal t
hi ntegrated informat i
on managementsy stem thatwillenable
everyKeny ant oownandcont r
olaccesstot heirhealt
hrecordsandprovi
de
them wi t
hal ltheinformat iontheyneedt oaccessheal t
hser v
icesontheir
phones.

NHI
FRef
orms

Contr
ibuti
onstruct
ure.
Wear eawar eofnew cont ributi
onst ruct
uregazet ted byCS Treasury.
Peopleearni
ngSh100,000wi ll
contribute1.7percentamountingtoSh1,700.
Undert his st
ruct
ure,a coupl e ear ni
ng combi ned Sh200,000 willbe
deductedSh40,800whi l
easi nglepay erearni
ngSh100, 000wi l
lcontr
ibut
e
Sh20,400.Thetwofami l
ieswillgetthesamebenef i
ts.Thi
sisclearl
yhighl
y
i
nequitabl
e. We hav e pr oposed t o change t he cont r
ibut
ion to
famil
y/householdrathert han indivi
dualas i st he case wi th pr
ivat
e
i
nsurance.

IftheSh150m outofpocketpay mentswer econver

tedint
ocont ri
but
ionsto
NHI F,eachKenyanwoul dhavetocontr
ibut eSh3000pery ear
,orSh12,000
foreachoft he12m househol ds.Tor aiseSh200br equiredtocoverboth
thesecondar yandt ert
iarypi
ll
arsworksoutt oanav er
ageofSh4000per
person,Sh16,000perhousehol d. Ourpr el
imi
naryanalysisshowst hata
progressivecont
ributi
onsy st
em canachi evetheSh200br equi
rementwi t
h
cont r
ibut
ionsrangingf rom Sh300toSh3000perhousehol dpermont h
(Sh3600t oSh36,000pery ear
).

24
Enroll
ment
Wer ecognizethatevent houghenrolmenttoNHI Fisnowmandat orybylaw,
therearepr acti
calchallengesofenr ol
lingself-
employ edKeny answhoar e
themaj ori
ty. Anumberofi nit
iati
veswi l
lbedeployedt omakeenr oll
ment
easierforself-
employ mentKeny ansincluding:
 Leveragingont hepr oposedPr i
mar yHealthFundsaspl at
formsf or
communi t
ybasedgr oupschemes.
 Leverageont heHust l
erFundandf ar
meror ganizati
oniniti
ati
vetoset
up occupat i
onalschemes f ortrades e.g boda boda and mar ket
womensaccos.
 Affordablef l
ex i
ble premi um financing schemes e. g cont r
ibutes
fi
nanced quar terl
yi nadv ance,whi l
econt ri
butorsr epayt hel oans
weekl yorotherintervalal
ignedwi t
htheiri
ncomest r
eams.

Gov ernance
Insurancei sabusi nessbuildent ir
elyont r
ust.FortheNHI Ftof ul
fil
lthe
mandat eoft hesoci alhealthinsurerweneed, i
tmustenj oyt heconfidence
ofal li ts st akeholdersi n par t
icular,contri
butors and heal t
h ser vi
ce
providerst hati tservesdir
ectl
y .Wer ecognizethatatpresent,theNHI Ffall
s
consider ablyshor t.Kenya Kwanza i s commi tted toimpl ement i
ng the
reformsr equi
r edsoast obui l
dt hi
st rustasrecommendedbyst akeholders.
Consi derationwi l
lbegi v
ent ounbundl i
ngt heNHI Falongt helinesoft he
pension f und sy stem. This woul d ent ai
l separati
on of t he Fund
management , clai
msadmi ni
strati
onandr egul
atoryfunct
ions.

Fi
nancialCommit
ment
Budgetneutr
al

25
DI
GITALSUPERHI
GHWAY&CREATI
VEECONOMY

Kenyahasi nv
estedheav i
lyinICTinfrast
ructur
eandser vi
cesov erthelast
twodecades.Thi sinfr
astr
uctureincludesixsubmar i
nefibre-opti
ccabl es
offer
ing br
oadband connectiv
ity
,9000km oft er
rest
ri
alfibre-opti
ccabl e
connecti
ng virt
uall
y allcount y headquarters,and geogr aphi
caland
populat
ionmobi l
ebr oadbandcov erageof56per centoft he96per cent
respect
ivel
y.

Mobiletelephone penet
rati
on and innovation has enabl ed Kenyat o
i
ncreasefrom aquartertoover80per centofthepopul ati
oni nlessthan
twodecades,maki ngKenyaoneoft hewor ld’
sleadi
nguser sofmobi l
e
payments.TheCOVI D19cri
sisdemonst r
atedjusthow cr i
ticalthedi
gital
penetr
ati
oni nter
msofbusi nesscont
inuity,asitenabledmanyessent ial
serv
icestoproceedwithmini
mum int
errupti
ondur i
ngthel ock-downs.

Stil
l
,impor t
anteconomic benefi
ts expected havey ett o materi
ali
se.
Notably
,therewashighhopethatthebusinessprocessoutsourci
ng(BPO)
i
ndustrywouldbecomealeadi
ngexpor tandjobcreati
ngsector.Kenyawas
rankedtogetherwi
thThePhil
ippi
nes,whichexports$30bandempl oysan
esti
mated 1.3m peopl
e.The industryhas yett otake off.The Konza
Technopoli
shasbeenintheworksf ort
wodecadesandseemsnocl osert
o

26
becomi
ngar
eal
i
tyt
hani
twasadecadeago.

Digi
talsuperhi
ghwaywi l
lalsoplayacr i
ti
calr ol
einenabl ingust omake
tr
emendousachi evementinthe4otherpi l
l
ar sofHealth,Agricult
ure, MSME
andFinancingaswel li
nenhancingrev enuecol l
ecti
onsv i
aaut omat i
onof
VAT sy st
ems. I t wil
lamel i
orat
e chal lenges related to i nformat i
on
asymmet r
yi nmar ket
saccessandr i
skmanagement .Ital socomesi n
handyinmi nimizi
ngbarri
erstoentryfornew f i
nancialprov i
derst hatare
cri
ti
calindownscal i
ngaccesst otheHust lerFundv iaGov ernmentr i
sk
miti
gati
onmechani sm t
hroughprovi
sionofERPsy stem forallparticipant
s.

Areassuchaspubl
icpr
ocurementwheredi
git
alt
ransf
ormat
ioncoul
dhav
e
deli
ver
edhugegai
nsareyettobereal
i
sed.

Keny
aKwanzacommi
tment

1.Universal broadbandav ai
labil
it
yt hroughoutt hecount r
ywi t
hinfive
years.Weshal lincreaseandf astt r
ackbr oadbandconnect i
vi
t y
acrosst hecount rybyt heconst ructionof100, 000km ofnat i
onal f
ibre
opticconnect iv
itynet work
2.Enhancegov ernmentser vicedeliverythr oughdi git
izationand
Automat ionofal lgov er
nmentcr iti
calpr ocessesandmakeav ai
lable
80per centofgov er
nmentser vicesonl i
ne
3.EstablishAf ricaRegi onalHubandpr omot edev elopmentofsof tware
forexpor t
4.Thei mplement ationoft heDi git
al Mast erPl anwi ll
adher eto
environment alagreement si nwhi chKeny aisasi gnator y
5.Reducet hecostofcal l
sanddat atoal l
owwananchi andespeci al
ly
they outht ouseonl inepl atformsf orent er t
ainment ,informati
onand
business.

Fi
nanci
alCommitment
Sh40b(
tobefi
nancedbyt
heUni
ver
sal
Ser
viceFund)
.

Creati
veEconomy
Kenyahasahi ghl
ytal
entedy outhonadiversespectrum ofcreati
vework
i
ncludi
ngmusi c,t
heat
re,graphicdesi
gn,digi
talanimati
on,fashion,cr
aft
s
among others. The di gi
talrevol
uti
on,but t
ressed by Keny a’
s good

27
connecti
vityhasopenedupoppor tuni
ti
esforthissectortobeasi gni
fi
cant
economicact orini
tsownr i
ght .Additi
onal
ly,
t hecreativ
eindustrycanadd
valuetoKeny a’
sexportssuchasf ashion,l
eatherproducts,craf
tindustr
ies
etc.A v i
sittot henow ubi quit
ous“ maasaimar ket s”willdemonst r
ate
potenti
althatrequi
resonl
yv eryli
tt
lesupportt
ogr owi ntoasigni
ficantcraf
t
exporti
ndustry.
Keny
aKwanzaCommi
tment
 Wor kwit
hstakehol
derst
oexpandthespaceforcreati
vi
tyi
ncl
udingin
the ar
ena offreedom ofexpr
essi
on and pr
otecti
on ofint
ell
ect
ual
proper
tyri
ght
s
 Mainst r
eam artsandcult
urei nf
rastr
uctur
e(theat
res,musi
challs,ar
t
gal
leries)i
ntothei
nfr
astr
ucturedevelopmentprogr
amme,andidenti
fi
ed
dedicatedstr
eamsofresourcesforthei
rdevel
opment.
 Wor kwithstakehol
derstoi
dent
if
ytheincenti
ves,capaci
tybuil
dingand
othersuppor
tr equi
redfr
om t
heStat
etoscaleupcultur
alproduct
ionand
thecreat
iveeconomy .
 Mainstr
eam the creati
ve economyi n Br
and Keny a and commercial
di
plomacy,incl
uding appointi
ng accomplished Keny an art
ist
s and
cr
eativ
esect
orper sonal
iti
esascult
uralambassadors.
ARTSandCRAFT
a)DevelopaGovernmentPower edArtsandCraft
sindustryInf
ormati
on
Port
al.ThePortalwi
llhel
pinli
sti
ngdi f
fer
entpl
ayersintheindust
ryand
marketthei
rproducts.
b)PromotingArt
sandCr aft
sGaller
ieslever
agi
ngonexi st
ingpubli
c
enti
ti
esandinstit
uti
onsincl
udingourembassiesabroad.

FI
LM
a)Passt heCr eati
veEconomyBi l
l t
hatwillenabl
eestabl
ishmentofaf i
l
m
fund;
b)Mandat ethef il
mf undtofaci
li
tateaccesst omodernequipmentand
entir
ef il
m pr oducti
oninfr
astr
uctureavailabl
eforl
ocalfil
m makerson
ahireandl easebasi s
c)Rev i
ewt heI nter-CountyLi
censingregi
mewi t
hav i
ewofdev elopi
nga
singleper mi t
d)Establishagr eenchannelimmigrati
onschemeandpr ot ocol
servi
ce
forinternationalfi
lm makers

28
 e)Benchmar koncompetingfi
lm dest
inati
onforint
ernat
ional
fil
m maker
s
i
nAf ri
caandof f
ercomparableorbetteri
ncenti
ves
f)Establ
ishafil
m ecosy
stem thatconvenesallst
akehol
derstaskedwi
th
rev
ital
izi
nggrowthofthesector.

MUSIC
a)Entrepr eneurship:Toensur eplay
ersareabl et
ot ur
ntalent
sinto
business, Freeinv estmentandbasi ctrainingskil
lslev
eragi
ngont he
hustlerf und.
b)EnforcementofCopy r
ightLaws:Gov ernmentt oleadanawar eness
campai gnoncopy rightlawsandt heenf orcementmechanismsasa
wayofensur i
ngknowl edgeaboutt heissueandi ncreaseearningsby
art
ists
c)Mobi let unes:streaml i
nest hebenefi
tst hataccruetothearti
stsfrom
theski zat unesandot herrevenuestr
eams.

Fi
nancialCommit
ment
Est
abli
shasimil
arfi
nanci
ngf
ramewor
kasi
spr
oposedf
orspor
ts.

I
nfr
ast
ruct
ure
Water
Waterisaconsti
tuti
onalri
ght(Ar
t.43),andthemosti mpor t
antenablerof
agri
cul
ture.Two-t
hirds ofKenya’s agri
cul
turalland requir
es ir
ri
gati
on,
agai
nstonl y4 percentthatisi r
ri
gated.Irr
igati
on i
st he si
ngl
e most
i
mpor t
antgamechangeri n agr
icul
ture. Currentpol
icyi scentered on
domesticuseandlargedams.

Thekeyi
ssuesar
e:f
inanci
ngv
aluef
ormoney
.

KenyaKwanzacommit
ment
KenyaKwanzai
sconvi
ncedt
hattheri
ghtt
owat ercanbeachi
evedby2027.
Thi
swill
bedoneby:
 Shif
ti
ng f
ocus f
rom l
arge dams to househol
d/communit
y water

29
 projects,wit
hemphasi sonharvesti
ngandr ecycli
ng
 Wher elar
ger eser
voirsarevi
ableadoptPPPmodel (
usingIPPmodel )
 Using moder n technol
ogies on desal i
nation,dev el
op Tur kana
aquifersusingPPPmodel (
potenti
altoir
ri
gate1m acr esofland)
 Depl oy cli
mat e smar t agri
cult
uret echnologies (micr
o-ir
ri
gation,
precisionirr
igati
on,hydro&aquaponi ct
echnologies).

Roads
Roads ar e ar guably ourcount ry’
s mosti mpor tantinfr
ast r
uctur e.The
Gov er
nmenthaspur suedanambi t
iousr oadbuildingprogrammet hathas
doubledourpav edr oads.Thi shasbeenachi ev edbyadopt ingt heLow
VolumeSeal edRoads( LVSR)pr ogrammer esulti
ngi n6000km compl eted
withanot her3800km underconst r
uction.Hit
her toallpav edr oadswer e
buil
ttot hest andardi rr
especti
veofv ol
umeoft raffi
c.Theadopt i
onoft he
LVSRst andar dhasr educedcostofpav inglowt raffi
croadssubst antial
ly
.
Bet hatasi tmay ,theneedf orr oadsr emainsi mmense.Onet hir
doft he
country’
s 63, 575km ofcl assif
ied r oads isin need ofr ehabili
tat i
on or
reconstr
uct i
on.I tisreadilyapparentt hatthefinancialconst r
aintswef ace
requir
ev erypr udentuseofr esour ces.

Keny
aKwanzacommi
tment
 Compl
eteal
lroadsunderconst
ruct
ion
 Pri
ori
ti
zeupgradingandmai nt
enanceofrur
alaccessroadsaswel las
thei
mpr ovementofroadsinfr
astr
uctur
einurbaninf
ormalsett
lement
andcrit
icalnat
ionalandregionaltr
unkroadsthathavet hehighest
i
mmedi ateeconomicimpact.

Fi
nanci
alCommi
tment
Sh200b(
cur
rentMTEFcommi
tment
)
Secur
it
izat
ionofRoadLev
y

30
Electr
icit
y
Electr
icit
yi sav italeconomi candsoci alser vi
ce,cr it
icalt opr oduction,
essentialservi
cessuchasheal thandsecur i
tyandqual it
yofl ifeofciti
zens.
Whi l
egener ati
oncapaci tyhasi ncreasedconsi derablyinr ecenty ears,our
electr
icit
yisexpensi veandunr eli
able.Thisoughtnott obet hecase,gi ven
thatwear eblessedwi t
hconsi derabl
egeot hermal ,solar,wi ndandwat er
resourcest hatcanpr ovidecheapenv i
ronment all
yf r
iendlypower .Oneof
thekeycont ri
butorst obot hthecostandqual it
yofpoweri st heagi ng
transmissionanddi stri
buti
onnet work.Thei nvestmentr equiredt oupgr ade
thenet workisconsi derabl
e,mor esoi nthedi ffi
cultfinancialsituati
ont he
countryisin,butitisimper ati
ve.Cheapcl eanpowercanbeast rongv alue
propositi
onf oratt
ractingenergyintensiveproductionf orthegl obalmar ket
i
nKeny a.

Thecur rentadmi nistr

ationsetoutanambi t
iousel ectr
ifi
cati
onprogramme
thatai medt oachi eveuni v
ersalaccesst oel ectrici
tyintheshor t
esttime
possi ble.Muchpr ogresshasbeenmadewi t
ht otalelectr
ici
tyconnecti
ons
i
ncr easi ngf rom 3m t oov er8m t oday.Thi srapidpaceofconnect i
vit
ywas
achi evedpr i
mar il
ybychangi ngt hebusinessmodelofKPLCwhi chhithert
o
requi r
ednewcust omerst opayahef tydeposi tthatmanypeopl ecouldnot
affor dsucht hatmanyt ransfor
mer shadal otofexcesscapaci t
y.TheLast
MileConnect i
vit
ypr ogrammechangedt histoconnect i
ngpeopl efi
rstand
recov eringt heconnect ionchar gesf rom t hecust omer’smont hl
ybill
s.The
connect iv
itydr iv
ehascomewi thsomechal lenges.Consumpt i
onhasnot
ri
senasexpect ed, whil
et heoper at
ionalcost shav eincreased,andthishas
adv erselyaf fectedKeny aPower ’
sf i
nanci alperformance.Par tl
yasar esult
oft hesechal lenges,Keny aPower ’
sr esponsi venesst o consumershas
deter i
orat ed.

Thisi sagai nstthebackdropofadi sr

uptivet echnologyl andscapet hat
portendst ransformati
onoft heelectri
cit
yi ndust ryper hapsont hesame
scaleast hemobi l
ephoner evol
uti
onhasdi sruptedf ixedl inet elephony.
Thisi ncl
udesr apidl
ydecli
ningcostsofr enewabl epower ,whi chasnot ed,
Keny a hasi n plenty. Thecostofut i
lit
yscal epowerst oragei sal so
declining sharply,which is helpi
ng t o ov ercome t he l i
mi tati
ons of
i
ntermi tt
enceofsol arandwi ndpower.Ont heconsumersi de,st and-al
one
solarpowerandmi cro-
gri
dsar ei
ncreasinglycost -
effectiveal ternati
vest o
gri
dpowerf ordomest i
candev encommer cialconsumer s.Tr anspor t
ation
i
sgoi ngt obeabi gconsumerofel ectr
ici
t yasel ectricv ehiclesr epl
ace

31
f
ossi
lfuel
ones.

Keny
aKwanzaCommi
tment

Tur
n ar ound Keny a Power . We wi
lldeli
nk Governmentdev el
opment
i
nit
iat
ives,leavi
ngKeny aPowertooperateoncommer cialpr
inci
ples.A
pol
icy,regul
atoryandf inanci
ngfr
ameworkf orof
f-
gridcommuni ty
-owned
devel
opmentpr oject
s( miniandmi
cro-
gri
ds)wil
lbeinsti
tuted.

Impr
over eliability,
br ingdownt hecostofel ectri
cit
y .Wepr oposeat hree-
poi
ntpl
ant obr ingdownt hecostofpowernamel y;
 Mobi l
ize t he resour ces needed torev amp t he tr
ansmi ssi
on and
dist
ribut ionnet wor k
 Acceler at egeot hermal r
esourcesdevelopment
 DevelopLi quifiedNat uralGas( LNG)st oragef acil
i
tyinMombasa,
withav i
ew t ophasi ngoutheav yf ueloil( HFO)f rom t hepower
gener ationpor tfoli
o. Thiswi l
lalsocont ri
but etomeet i
ngKeny a’s
emissi onr educt i
oncommi t
ments
 Enforce t ranspar ency and publi
c account abil
it
y oft he elect
ri
ci t
y
sector .Requi r et heEnergyRegulator
yCommi ssion(ERC)t opublish
quarter l
ysy stem f i
nanci
alandoperati
onal performancer eport
s.

Strengt henconsumerpr otecti

onTheERChast hemandat et odealwi th
consumerpr otecti
oni ssues,butt her esortt ol it
igationi nthecour tsand
protests( suchast he#Swi tchOf f
KPLCcampai gn)suggestt hatt hi
sisnot
wor kingaswel lasi tshould.I nadequat econsumerpr otect
ioni sacr oss-
cutting issue.The mobi le phone indust ry al so has i tsf airshar e of
consumerpr otectionissues.Pr edatoryl endingbyt he“ fi
ntech”i ndustr
y,
whichst r
anglest elecomsandf inance,isanot hercase.I tdoesseem t obe
thecasei ngener althatwhenr egulatoryf unct i
onsar ebundl edt oget
her,
consumerpr otecti
onget st heshor tshr i
ft.Consi derat i
onwi llbegi vent o
establ i
shmentofasi ngleconsumerpr otectionov er sightagencyf orall
uti
liti
es and r egulated industri
es. I nt he i mmedi at e,Keny a Kwanza
commi tst oi nsti
tute an independenti nquiryt or eview al lt he matters
currentlybeingl i
ti
gat edbyconsumer swi thav iewt oar rivi
ngataqui ckand
satisfactoryresolutionthatcanal soinformt henecessar yref
or ms.

e-
Mobi
li
tyTheKeny
aKwanzagov
ernmentwi
l
l:

32
  Rolloutel ectricvehicl
echar ginginfr
astruct
ureinal
lurbanareasand
al
ongt hehi ghway s
 Providef inancialandt axincentiv
esf orpubli
cservi
cev ehi
clesand
commer cial t
ransporterstoconv ertt
oelectr
icvehi
cl
es.
 Leveraget hefinancialsupportthatwillbeprovi
dedtothebodaboda
sector t hrough t he Hust ler Fund t o devel
op the nascent EV
mot orcycleassembl yi ndustry
.

Petroleum
Petrol
eum,whi chisKeny a’
ssinglelargestimpor
t,willr
emainanimportant
fuelforseveraldecades.Pri
cev olati
l
ityisachallengeforconsumersand
economi cstabi
li
ty.I
thasbeenobser vedright
lyt
hattaxisamaj orf
actorin
thehighcostofpet r
oleum products.

Recentf uelpr i
ceescal ationisacombi nati
onoft wof actors,globalpri
ce
shockandf ai
lureofpr i
cestabi l
izati
onmechani sm, t
helatteronaccountof
fi
scaldistress.Gl obalpricesar eoutofourcont r
ol.Asnot ed,Keny aiswell
endowedwi thcheapr enewabl epowerr esources.Accelerati
ngt r
ansiti
onto
el
ectri
cv ehiclesiswi n-winpr oposi t
ionint ermsofcont ri
butingtoKeny ans
emissionr eductioncommi t
ment ,cheapert r
anspor t
,andl ever
agingont he
l
argelocalandr egionalmot or cyclemar ket(~500,000uni tsay ear)tobuil
d
anelectri
cv ehicl
ei ndustry.

Keny
aKwanzaCommi t
ment
 Setupal egalfr
amewor ktori
ng-f
encethefuel stabi
li
zationfund.
 Leveragethef i
nanci
alsupportt
hatwil
lbepr ov i
dedt othebodaboda
sector through the Hustl
er Fund to dev elop the nascent EV
mot orcy
cleassemblyindust
ry.
 Createincenti
vesforadopti
onofelect
ricmasst ransitsyst
emsi nal
l
ci
tiesandt owns.

33
Manuf
act
uri
ng

Ourmanuf act
uringsect ori sheadedi nthewr ongdirecti
on.Atat i
mewhen
weshoul dbei ndust ri
ali
zing,t hemanuf actur
ingshar eoft heeconomyi s
declini
ng.Ithasf allenfrom 9. 3per centto7.6percentinf i
v ey ears(
2016-
2020) . Par adoxi call
y,manuf acturi
ng has bor ne t he br unt of the
i
nfrastructur
einv est mentdr i
vet hatismeantt ospuri ndust r
iali
zat
ionin
ter
msoft hecrowdi ngoutf rom t hecreditmarketbygov er nment ,andlat
ely
,
byt heext er
naldebtser vicepr essureonf oreignexchanget hathasseen
thegov ernmentr esorttor ationingf orei
gnexchangef ort hef i
rstt i
mesince
theforeignexchangemar ketwasl i
berali
zedin1993.

Keny
aKwanzai scommitt
edtohelpourmanuf
actur
ersweatherthi
sst
orm.
Oureconomictur
n-ar
oundstr
ategyoutl
i
nedinthi
smanifestoismeantto
putt
hem behi
ndusasquickl
yaspossibl
e.

That sai d, we need t o hav e an honest conv er

sati
on about our
manuf acturi
ngindustr
y . Ashighlightedearl
ieroni nthismani f
esto,itis
i
nordinatelycapit
alintensiv
eandnotsuf fi
ci
entl
yj obcreati
ng. Thi sisa
ref
lecti
on of bot h hi stor
y,t hat i s, l
egacy of i mport subst i
tut
ion
i
ndustrial
izati
onpoli
ciesoft he60sand70saswel lasgeography ,namely
the presence oflandlocked hinterl
and countri
es thathav e provided a
capti
ve mar ketforcapi talint
ensi ve manufact
ured products based on
i
mpor tedr awmateri
als.

Kenya Kwanza i s confi

dentt hatt ransf or
mat ion ofourmanuf acturi
ng
thr
oughbot tom upi sawi nfort hei ndustry,f ort hepeopleandf orthe
government.Thev al
uechai napproacht hatwehav eadopt edenabl
esust o
anal
y zeoureconomyf r
om acompet it
ivenessangl eandt oaddressthe
bott
lenecksthatimpedet hegrowt hofourmanuf actur
inginadel i
ber
ate
manner .Thevaluechainshighli
ght edbel owar eexampl esofthi
sapproach
andar ebynomeanst heonlyones.Ot herv aluechai nselsewher
ei nthi
s
manifestoincl
udeedi bleoilpr
ocessi ng,dai r
y ,electri
cv ehi
cleandplasti
c
waste.

Leat
herKenyahasabigpotent
ialtodevel
opitsl
eat
hersector.Curr
entl
yit
i
saSh15bi ndust
rycreat
ing17,000jobs(7,
000for
mal,10,000informal)
,
whil
eiti
spotenti
all
yaSh120bi ndustr
ythatcancr
eate100,
000j obs.But

34
thekeychal l
engesar elow recoveryandpoorqual ityofhi desandskins,
and lack ofski ll
s.Hi des r ecovery and quali
tyimpr ovementcan be
addressedthroughf eedl
ot.Wecanl everageonpublicprocurementtobuil
d
capacity
.Ther eisapot entialmar ketinunif
ormedser vicesandschools).
ThereforeKenyaKwanzacommi tstosetupleatheri
ndust r
yclust
ersinAthi
Riv
er,Nar ok,Isiolo and Waj irand securel i
nkages wi t
h and techni
cal
supportfrom overseasmar kets.

Bui
ldi
ngpr oduct
s;Bui l
dingpr oductsar ealr
eadyoneofKeny a’sleading
manufact
uredexpor tstonei ghbouringcount r
ies(mabati
,buildi
ngst eel
et
c).Ther
ei spotenti
altol everageonhousi ngpr ogr
ammet oscaleupand
br
oadenrangeofpr oducts.Est abl
ishingst
andar dswil
lenabl
eJuaKal ito
massproducefit
tingse.gwi ndows, doorsetc.

Pharmaceut i
calsandmedi calsupplies:Phar maceut i
calsandconsumabl e
medi calsuppliesaccountf oran estimat ed 20 per centoftotalhealth
expenditurescur r
entlyatSh550b,whi cht ranslatestoadomest i
cmar ket
wor t
hSh110b.Phar maceutical
simpor tsin2020wasatSh76b( 70percent
oft he Sh110b est imated market)meani ng t hatwhen otheri mported
suppliesar efactoredin,domest i
cpr oduct i
onsuppl i
esarelesst han20
percent. Domest ic pharmaceut i
cal manuf acturers have capacityt o
manuf acturebiggersharecompet it
ivel
y,butar ehamper edbyhighcostof
doing busi ness and a puni t
ivet ax r egime ( t
o extent of shif
ting
manuf acturi
ngt oneighbor
ingEACcount r
iesandexpor ti
ngtoKenya).

Keny
aKwanzacommi t
sto;
 Workwi t
hpharmaceut i
calindustr
ytoaddr
essthetaxregi
meand
costofdoi
ngbusiness
 Lever
ageonUHCt oidenti
fyandscaleupmanuf
act
uri
ngofessenti
al
suppl
ieswecandocompet i
tiv
ely
 Lever
age on our human capi tato worktowards a regi
onal
pharmaceut
ical
manuf act
uringhub.

Garment s and text

il
es:Thisi s a huge entr
yi ndust
ryforexportled
i
ndust r
ial
izati
onthathaspropell
edSouthEastAsi a.Wehavepursuedthis
str
ategysi ncetheear l
y1990s,withlimitedsuccess.Alt
houghgarment
exportsar enow ourt hir
dl ar
gestexportat$500m,empl oyi
ng 50,
000
people,itpalesi nsigni
fi
cancecompar ed to Bangl
adesh$35b export
s
employ i
ng 4m people,and account
ing forover90 percentofexports.

35
NotablyBangladeshiindust
ryi slessthanadecadeol dert hanours.Why
thedivergence?Labourcost .Shopf l
oorwagei nBangl adeshis$80pm
(Sh.
12,000pm)our sismoret handouble,event houghpr oduct
ivi
tyisthe
sameout putperwor kerat$10, 000pery ear.Thi sispar tl
ybecauseof
compar ati
ve advant
age Bangl adesh islabourr ich/r
esour ce poor,wi t
h
populati
ondensityof1265peopl epersq.km,13t i
mest hatofKeny a(94
people/sq.km).Bangl
adeshal sohashi ghagr i
cultur
alpr oducti
vit
ywhi ch
makesf oodcheap,andi nef fectcostofl i
vi
ngl ow,henceBangl adeshi
workerscanl iveonmuchl esst hanKeny a.Thisappl i
est oSouthAsi a
general
ly,aswellastheAsi anTi gersinthe1960sand1970s.Butt hi
sis
nottheonl ymodel.

Tur keywi thami nimum wageof$500bef orecur rencycol lapse,i sal so

global lycompet i
tivewi t
h expor t sofUS$12b ay ear .Thedi ffer
encei s
Bangl adeshii ndust ryser v esmassmar ketgener icgar ment s,whi leTur key
serv est hef ashioni ndust ry.Keny aisstuckbet weent het wo, wagesar et oo
highf ort hemassmar ket,andi ndust rynotsophi sticatedenoughf ort he
fashi onmar ket .Theor i
gi nalt ermsofAGOAr equi redKeny at oi ntegrate
thegar mentexpor ti ndust rybackwar dsi .e.tousel ocall
ymanuf actured
textilesmadewi t
hl ocal lygr owncot t
on.Todat e, Keny ahasbeenunabl et o
meett his,t he indust ryi s st illimpor ting over90 per centoft he r aw
mat erialsf rom Asi a.Si ncer aw mat eri
al,pr i
mar i
lyf abr i
candy arn,ist wo-
thirdsofcost /value,cur rentexpor tleveltranslatest oa$300m mar ket .It
standst or easont hati fwear etomeett hismar ket, simpl i
sti
ci nterventions
suchasbanni ngMi tumbawi l
lnotsol vet hepr oblem.Wemustbeabl et o
produceandconv er tcot toni ntof abriccompet i
tively.Muchhopei spegged
onBTcot ton.Pilotpr ojectsov ert helastt woy earsshowgoodr esul t
swi t
h
i
rrigat ion, buthi ghv ulnerabi l
ityt odr ought .Keny aKwanzagov ernmentwi ll
wor kwi tht he appar elexpor ti ndustryt o dev elop a v i
able cot ton r aw
mat erial supplychai n.

36
Ser
vicesEconomy

FinancialServ i
ces
Highl eveloff inancialincl
usiondr i
venbyMPESAhasbecomeadoubl e-
edgedswor df orenabl i
ngpredatorylendingby“ Fi
nt echs”.Otherchallenges
facingfinancialservicesincludelackoff or malcr editatt hebottom oft he
pyrami d(i
npar tbecauseofCRBl i
stingbypr edatoryl enders)
,crowdingout
ofpr i
vatesect orbyt hegover nmentwi t
ht hebr untbor nebyMSMEs, fail
ure
ofdeposi ttakingmi crofi
nancebankst or eachbot tom aswasi ntendedand
systemi cagricult
ural cr
edit
/ri
skmar ketfailure.

Keny
aKwanzacommi
tment

 Deployacr edibl
emacr oeconomi cf ramewor kandgr owthstrategyto
str
engt henext ernalcredit
wor t
hinessenabl i
nggov ernmenttobor r
ow
cheaplyext ernall
yandendcr owdi ngoutofpr i
v at esectorfrom the
domest iccreditmar ket
 LeverageonKeny a’
swel ldevelopedSACCO sy st em,dev el
opat i
er
thr
eef i
nancialsy stem topr ovi
deaf f
ordablecredi ttotheunser ved
and under served,wi thspeci f
icf ocust o smallholderf ar
mer sand
MSMEs, butal sov ent
urefinanceandaf f
ordabl
ehousi ng
 Developanddepl oyar obustf i
nanci alservi
cesconsumerpr otect
ion
poli
cyandl egalf r
amewor kthatwi llprotectKeny ansf r
om pr edat
ory
l
ender s.

Tour
ism
Tour
ism i
sahi
stor
ical
l
yimpor
tantsect
orf
ort
heeconomy
,int
ermsof

37
foreignexchangeear ni
ngs.Ithast obesai dhowev erthatitisasect orthat
Keny a punchesbel ow wei ght.The count r
y’sreputation asone oft he
wor l
d’spr emi ertourism destinati
onscompar edtoot hercount ri
eswi tha
similari nternati
onalpr ofi
lei s notr efl
ected ini t
s cont ri
buti
on t ot he
economyi nt er
msofv i
sit
ornumber sandcont ri
butiont oGDP.I nAf ri
ca,
t
h
using2018dat a,Keny awasr anked9 wi t
h1. 9mi l
l
ionv i
sit
orsay ear
behind Egy pt,Mor rocco,Sout h Afr
ica and Tunisia wi t
h ov er8 mi ll
ion
visi
tor s,whi l
eCot eD’ Ivoi
re,Mozambi que,ZimbabweandAl geri
awhi ch
hav ebet ween2m and3m ay ear.Outsi
deAf ri
ca,Keny a’
sgl obalposi
tioning
andr eputationmaybecompar edt oThai l
and.Tenpercentsmal l
erthan
Keny a,andmor edensel ypopul ated( 70m people),Thailandr ecei
v es40
mi l
li
ont ouristsay ear.

Whati st hechallenge?Themai nr easonwhyKeny a’st ourism issof ar

below pot enti
alisbecauseofourf ocusonexcl usive“ highend”t ourism
whichmakesi tanexpensi vedesti
nat ion.Toi l
lustratea“ 5st ar”hotel sand
gamel odgeswi l
ltypicall
ycost$50,000perr oom ininv estment .Inef fect,a
100- room hot eloper ati
ng atan av erage of40 per centcapaci ty and
sssumi ng15per centcostofcapi t
alwoul dneedt ochar ge$50ar oom a
nightj usttocovert hecostofcapi tal,itwoul dmeanchar gingatl east$80
tobr eakev en.Combi nedwi ththefactt hatKeny ai salong- hauldest ination
from sour ce,t
hesepr icesKeny aoutofr eachofmostbudgett ravell
ers.Yet
tourists don’tcome t o Keny at o enj oy hotelr ooms.Keny ai s now
i
ncr easinglyfamousf orexclusi
veest ablishment sthathost5t o10guest s
orlessandchar geupwar dsof$3000ani ght,ofwhi chv erylit
tletrickles
downt otheeconomy .Int hissense,t ourism isourul ti
mat et r
ickl
e- down
i
ndust ry.

Wehav etodeci
dewhet herwewantat our
ism i
ndustr
yt omakehuge
pr
ofit
sforaf
eworjobsforthemany
.Keny
aKwanzav otesforabot
tom up
j
ob-cr
eati
ngt
ouri
sm i
ndustr
y.

Keny
aKwanzacommi tment
 Nurtureat ouri
sm ecosy stem t hatsuppor tsindependenttravel
parti
cular
lyforyoungpeopl e,includingqualitysecur
ebudgethot el
s
andbed&br eakfastf
aci l
i
ties,affor dablebudgetairt
ravelt
oallpart
s
ofthecountryandsafer oadt ravel.
 Div
er si
fy Kenya’
st ourism by pr omot i
ng niche marketproducts,
notablyadventur
e,sportandcul t
ural touri
sm

38
  Di
ver
sif
ysour
cemar
ket
stoi
ncl
udeAf
ri
canmar
ket
s.

Av iation
Av i
at i
oni sast rat
egi cindust r
yf oroureconomy .I tisv it
alf ort hetourism
i
ndust ry,forexpor tsoff reshpr oduceandmai ntainingKeny a’sposi tionas
ar egi onalhub.Butt hepot entialfort heindust ryi tselfasaneconomi c
sect ori sal sohuge.Af ri
cahas15per centoft hewor ld’
spopul ationbut
only2per centofai rpassengert raff
ic.Beforet heCov id19shock,Af ri
ca’s
aviat i
onmar ketwaspr oj
ectedt odoubl ei
nt went yy ears.Bef oreitruni nto
difficulti
esaf ewy earsago, Keny aAirwaysdemonst r
atedt hatKeny acoul d
becomeamaj orAf r
ican,andev engl obalav i
ationhub.Keny aAi r
way s
fi
nanci alchal l
engesar ear efl
ect i
onofi nternalst r
ategicandmanager ial
mi stakesr athert hant hemar ketpr ospects.Keny aKwanzai sper suaded
thatanat i
onalai r
linei sast rategicassett hatshoul dnotbel etgoeasi ly.
Att hesamet i
me, i
ti snotf i
nanci all
yprudentt omai ntainKeny aAi r
way son
l
ife-suppor tindef i
nitely.
Keny aKwanzaCommi t
ment
Keny a Kwanza commi t
st o dev el
op a turn- around st rategyf orKeny a
Airway swi t
hinsi xmont hs. A cr it
icalplankoft hisst rategywi llbea
fi
nanci ngpl ant hatdoesnotdependonoper ati
onalsuppor tf orfrom t he
Exchequerbey ondDecember2023.

Spor
ts
Weareaspor
ti
ngnat
ion.

Alookatt heOlympicsmedal st ablewi l

lconfir
mt hatunequivocally .Spor t
s
i
s one domai nt hatKeny a punches abov eits wei ght.Keny ai s an
i
nternati
onalgiantinmi ddl
eandl ongdi stanceathl
et i
csand7sr ugby ,but
weal sof eat
ureinawi derangeofspor t
sincl
udingf oot
ball,v oll
ey bal
l,
swimmi ng,golf,mot or
spor
t,t ennis,cy cli
ng fi
shing,shoot ing,ar chery,
cri
cketamong ot her s.Thebr and v aluet hatKeny anspar t
icipating and
excell
i
ngont heinternati
onalsportsar enaisincal
culable.

Butfartoooften,theGov er
nmentletsdownourspor t
speople,inter
msof
faci
l
itat
ionandpr ovidingadequateresources.Giventhecont r
ibut
ionof
sportsto Keny a’sinternat
ionalst
anding,weshoul d neverseeKeny an
sports peopl
e st randed inaf orei
gn country,orcompl aini
ng about
equi
pment , allowances and hospi tal
i
ty during compet i
ti
on. Our
i
nternat
ionalathlet
esshoul dneverr
etir
etoal i
feofpenury
.

39
Ourspor t
ingpr owessal soportentstremendousoppor t
uni
tyt obuilda
sport
seconomyv al
uechai nthatincl
udeshostingofinternat
ionalsporti
ng
event
s,trainingfaci
li
ti
es,manuf actur
ingofspor t
sappar elandequi pment
andmor e,int oasignif
icantsectorofoureconomy .Forexampl e,many
Kenyansar eunawar ethatwear eoneoft heworld’
sleadingmanuf actur
er
ofdartboar ds.Kenya Kwanza commi tst o ensur
et hatspor ts wil
lbe
adequatel
yf unded,f
acil
itatedanddev el
oped.

Keny
aKwanzaCommi
tment

 Establ i
sh a hi gh-levelexper tt ask f orce t oi dentify sust ai
nabl e
sour cesofspor tsf undi ng
 Consi der at
ionshoul dbegi v ent oanat i
onall ott
ery,taxi ncent i
vesf or
corpor atesponsor ship,adedi catedorr i
ng- f
encedt axandpubl ic-
pri
vat epar tnershipf ramewor kforinf r
astructuredev elopment .Review
theSpor tsActi nl i
newi thther ecommendat ions
 Establ i
shandr esour ceadequat el
yadedi catedf unct i
onwi thi
nt he
tourism pr omot ioncounci ltoat tractinternationalspor t
ingev ents
 Lever ageonouri nternationalat hleticsbr andt odev elopadomest ic
spor tsappar elmanuf acturi
ngcl ust er
 ExpandNat i
onalYout hTal entAcademy( NYTA)t oi ncludeal lspor ts
andsi mul taneousl ydev olvei ttocount yl ev eltoi ntroduceCount y
Spor ts Tal entAcademy wi t
h capaci tyt o sy stemat icall
yi dentify
promi sing spor ting t alentand pr ov idenecessar ysuppor tt hrough
sponsor shiptof urthert heirskill
s/ t
alent
 Promot ecount yleaguesandi nter-countyspor t
schampi onshipsthat
willculmi natet oanat ional annual spor t
sext ravaganza
 Retur nKeny aintoI nternational Foot ball
.

40
Env
ironment&Cl
imat
eChange

I
nf ormingt heenv i
ronmentandcl i
matechangeagendai sacommi t
mentt o
reduceemi ssionsby32per centrel
ati
veto“businessasusual ”by2030.
Keyi ssues include cli
mat e change,impactmi t
igati
on,adaptat ion and
resil
ience.Const it
ut i
onalmandat etoensureatleast10percentl andar ea
forestcov ercallsf ormainstreamingecologi
calsustai
nabl
edev elopment .
Keny aKwanzawi lladoptaBot tom up3Psoluti
ons( peopl
e,planetpr ofi
t).
Thepr i
ori
tyvaluechai nsincl
ude: bi
omassenergy(woodf uel
),agr oforestr
y
andsol i
dwast emanagement ]

Agrofor
estry
Agrof
orestr
y“ Thegr
eat
estpot
ent
ialt
oincr
easet
hetr
eecoverbey
ondthe
12.
13per centisonthefar
m/agr
icul
tur
all
and”(
KenyaFor
estResour
ces
Assessment2021)

“Agrof
orestr
yprov i
desapar ti
cularexampleofasetofinnovat
ivepr acti
ces
thataredesi
gnedt oenhancepr oductiv
ityi
nawayt hatof
tencont r
ibutesto
cli
matechangemi t
igat
iont hr
oughenhancedcar bonsequestrati
on,and
thatcanalsostrengthenthesy stem’sabil
i
tytocopewithadversei mpacts
ofchangingcli
mat econdit
ions”(Verchotetal2017

Tr eesar ev aluablecashcr ops.Casei npoi ntismukau( meliav olkensii)a

popul aragr oforest r
yt r
eei nUkambanit hataccor dingt oaKEFRIst udyis
ear ningf ar
mer supt oSh1. 5m peracr ewoodl ot( Sh9300t imbery ieldper
treenetofsawi ngcost s).Addi ti
onalbenef i
tsofsoi lfertil
i
tyanddr ought
mi tigat i
on.Unl i
ke ot hert ree crops eg.Cof fee orf ruits,t he ret ur
ni s
av ailableonmat urit
yaf t
eral onggest ationper i
od( mukaut akes8-12
year s) .Thel onggest ationper i
odisaser iousi mpedi mentf orinv estors,and
smal lholderf armer s,part
icularl
yt hepoor eronesi nt her egionswi thmost
l
and( e.gKi t
uiorTanaRi vercounties).Fi
nanci alinstrument st hatcanmake
thef armer soutgr owerswhi l
eatthesamet imesecur it
izi
ngt hei nvest ment
doexi st.Whati sneededi sapol icyandr egulatoryf ramewor kt oat tr
act
climat efinancef undsi ntosuchv ent ur
es.

KenyaKwanzaCommi t
mentEst
abl
i
sh5m acr
es( 000km2)agr
20, o-f
orest
y
woodlot
sindr
ylands

41
Woodf uel
Woodf uel(fi
rewoodandchar coal)account sfor70per centofdomest i
c
energy( petr
oleum 20per cent
,electr
ici
ty9per cent,other1percent).Wood
fuelispr i
maryr ur
aldomest i
cf ueland most l
ynon- commer cial.Whil
e
charcoali s primary urban and per i
-urban domest icf uel
.Percapi ta
consumpt i
onofcharcoali sest
imatedat250kgpery ear,makingf ora$1b
i
ndustry( Sh120batcurrentexchanger ates).

Keny
aKwanzacommi t
ment
 To moder ni
ze and commer cial
ize t he char coal value chain
speci
fi
callytheadopti
onofmoder nkilns
 Decri
minalize the charcoalt r
ade ( studi
es est imatet hatbribes
accountfor20-30percentoffinalpri
ce)
 Supportscali
ngupofcl eancookingt echnologies
 Promotey outhownedandoper at
edbr i
quettingenterpri
seswher e
agri
cult
uralwast ei s avail
ablei n commer ci
all
yv i
able quant
iti
es
(cof
feewast e,r
icehusks,maizecobs, coconuthuskset c)
.

Solidwaste
73per centofallplast
icswastegener atedisuncoll
ected.Ofthe27per cent
collect
ed,only8per centrecycled,restdisposedi nunsanitaryl andfil
ls.
Ther eishugepot enti
alfora“ bot t
om up”j obcreatingplasti
cr ecy cli
ng
valuechain. Innov at
iveKenyanSMEshav ealr
eadyshownt hewaywi th
fencingpostsandpav ingblocks.Gov er
nmentandpr ivat
esect orhav e
dev el
oped a Eur opean modelExt ended ProducerResponsi bil
it
y( EPR)
basedonhousehol dlevelseparati
ont hati
sunlikel
ytobepr acticalbey ond
urbanmi ddl
eclass( eg.ini
nformal sett
lements)

Keny
aKwanzaCommi tment
 ComplementEPRwi tha“bot
tom up”communitybased/ownedvalue
chai
n.
 Organi
zewastecoll
ector
sint
ocooperati
ves.
 Provi
de“ci
rcul
areconomy”wast
eseparationsi
tes/
inf
rast
ruct
ure.

42
Educat
ion

Educati
on i stheul t
imatemeansofengender ing an equi
tablesoci ety.
Equit
ableeducat i
onensur esthateverychi l
dhasachancet of ulfi
lltheir
potent
ialandr isetothehi ghestl
evelofaccompl i
shmentirrespecti
v eof
thei
rsoci albackground. Conv er
sely,ani nequit
ableeducationsy stem,
which f avour
s t hose f r
om soci all
y and economi cal
ly adv antaged
backgrounds,i
st hesurestwayofmai ntai
ningordev el
opi
ngacl asssoci et
y.

Univer salprimar yeducat i

onwasachi evedt hroughFr eePr i
mar yEducat ion
(FPE) ,buteducat i
onout comesr emai nhi ghlyi nequitable.Consi derable
progr esshasbeenmadet owardsuni versalsecondar yeducat i
on,butt he
currentt i
eredsy stem placest hebetterr esour cednat i
onalschool soutof
thepoor ’
sr each.Thecostofj oini
ngaboar dingsecondar yschooli snow
Ksh80, 000whi chev enf oror di
narywor kingKeny ansi sabi gsacr i
fice.
Whilebur sariesmi t
igatesomeoft hisbi as,t heyar ef arf r
om adequat e.
Distresscal lsf orandher oicactsofdet ermi nati
onbybr ightchildr
enwho
areunabl etot akeupt hei
rplaceshasbecomet henor m.Ear li
erthisy ear ,
a
gir
linThar akaNi thimadenewsbywal king50ki lomet erstot heschoolshe
hadbeenadmi ttedto.I nneighbouri
ngEmbu,aboysoughtt opayhi sf ees
withacocker el.

Keny
aKwanzaCommi
tment

TheKeny aKwanzagov ernmentcommi tstoaddr essi

ngthei nequi
ti
esin
oureducat i
on system so ast olev
elthe play
ing fi
eldforal lchi
ldr
en
i
rrespect
iveoftheirbackground.Wef ur
thercommi ttoequi
tableuniv
ersal
basiceducati
ondef i
nedas12y ear
sofschool
ing.

Keny
aKwanzagov
ernmentwi
l
l:

 Payf
ori
n-ser
vicet
eachert
rai
ningi
nit
iat
edbyGov
ernment

 Bri
dgecur
rentt
eachershor
tagegapof116,
000wi
thi
ntwof
inanci
al
year
s

 Establ
ishaSpeci
alServ
iceTari
fff
oralllearni
nginsti
tut
ionsf
orbasi
c
uti
l
iti
essuchaswater,
elect
ri
cit
yandinternetconnect
ion

 Rev
iew t
hecur
rentex
am-
basedsy
stem ofacademi
cpr
ogr
essi
on,

43
 whichhasexcludedmil
li
onsoflearner
sbasedonbasi ceducat
ion
l
evelexi
texams,byimpl
ement
ingalt
ernat
iveent
rycr
it
eri
a

I
mpr ovecapacityofdaysecondaryschool
stoguarant
eeaccessto
quali
tyeducati
onandr educethecostofeducat
ion.Cur
rentl
y,72
percentoflearner
si nsecondar
yschoolsarei
ndayschoolswhi l
e
onl
y28per centareinboardi
ngschool
s

 Establ
i
shNat i
onalSkil
l&Fundi
ngCounci
lthatamal
gamat
esHELB,
TVETandUni versi
tyFundi
ngBoar
dandincreasef
undi
ngtobr
idge
thecurr
ent45percentgap.

 Hav eaf ul lyequippedTechni calTr ainingandVocat i

onal Educat i
on
TrainingI nst i
tuti
on( TVET)i nther emai ning52const i
tuenci eswithin
thef i
rstt woy ears
 SetupaNat i
onal OpenUni versit
yt oi ncr easeaccessandr educet he
costofuni versi
tyeducat i
onwhi l
emaki ng100per centt ransi t
ionto
highereducat i
onar eal
ity
 Establishaoney earpai dNat ional Internshi pPr ogrammef orall
student sgr aduatingfrom t eacher s, t
echni cal ,medical col l
egesand
universities, bycol l
aborat i
ngwi t
hi ndust rypl ayers
I ncreasef undingt owar dsr esearchanddev el opmentf rom t hecurrent
0.8per centt o2per centofGDPi naccor dancewi t
htheSci enceand
Technol ogyI nnov ati
on( ST&I )Act2013aspert hebot tom- up
economi cagenda.Addi tional l
yincent ivizet hepr iv
atesect ort o
cont r
ibut et owardsr esear ch.
 Doubl et heamountofmoneyal l
ocat edt ot heschool feedi ng
programmet oimmedi atelyr aisethenumberofbenef i
ci ariesfrom
twomi ll
iont ofourmi ll
ion; andt opr ov i
decondi t
ionalgr ant stoCount y
Gov ernment stoext endt hesameandr aiset henumber st o8mi l
li
on
andECDl ear ners
 EstablishNat i
onalSki ll&Fundi ngCounci lt hatamal gamat esHELB,
TVETandUni v
ersityFundi ngBoar dandi ncr easef undi ngt obridge
thecur rent45per centgap.

 Domest i
cateteacherrecr
uit
mentanddepl oymentatent r
ylevelasper
theUNESCOt eacherdepl
oymentpracti
cewhi cht
reat seducati
onasa
cult
uralprocessconductedwi t
hinapeopl e’
sculturalcontextatthe
l
ocal level. All communi t
ies incl
uding mar ginal areas must

44
affi
rmativ
ely haveteachers.To handlet he challenge f aced by
teachersresul
ti
ngfr
om delocali
zati
on,wewillrepl
acethispol i
cywith
anat i
onali
zati
onprogr
am whi chwilli
ncent
ivizethoset eacherswho
choose to servein otherpar ts ofcountry,wi t
h emphasi s on
producti
vit
y.

45
Womenagenda
Participationofwomeni nthekeysect or sofourCount r
y’seconomyi s
minimal ,andav astmaj ori
tyofwomenr emaini nlow i
ncomej obsor
enterpr i
sesandendur epoorwor ki
ngcondi ti
ons;Womenr emainl ar
gely
excluded f rom par ti
cipati
on and deci sion maki ng in our Count ry’
s
gover nanceandpol i
ti
calinsti
tut
ions;Mi l
li
onsofwomenandgi r
lscontinue
tosuf ferf rom sexualandgender -
basedv i
olence.Healt
hser v
icesr emain
i
nadequat e,i naccessibl
eandunaf for
dabl etomi l
li
onsofwomeni nour
Count ry.Env ironmentaldegradationi mpactsmor ewomen,increasest hei
r
responsi bili
ti
esi nunpai dcarewor k,att hef ar
msandi nthecommuni t
y
therebyaccel erati
ngpov erty
,ear l
ymar r
iages,childhoodpregnanci
esand
otheradv erseconsequencesf orwomen.

Keny
aKwanzacommi
tment

 Providefi
nancialandcapaci tybui
ldi
ngsuppor tforwoment hrough
thehustl
erfundf orwomen-ledco-operati
vesociet
ies,chamas,mer r
y
-go-
rounds and t abl
e banking i
niti
ati
ves and protectthem f r
om
predator
yint
erestr at
eschargedbyunscr upul
ousmoneyl enders

 Reali
zati
onofthetwo-thirdsgenderrul
einel
ect
iveandappoi
nti
ve
posit
ionsinthePubli
cSect or,wi
thi
n12monthsf ol
l
owingel
ecti
on
i
ncluding50per
centcabinetposi
ti
onstowomen

I
ncreasethenumberof ,andpersonnelat,genderdesksatPoli
ce
St
ationsaswellasi ncreasefundi
ng fortheAnt i
-FemaleGeni
tal
Mutil
ati
on(FGM)Boar
dandFul l
yImplementtheAnti-
FGM law

 Establ
ishasoci
alwelf
arefundforKenyawomenworki
ngabr
oadt
o
provi
deasafet
ynetfordi
str
esseddi
asporaci
ti
zens

 Ensuredepl
oymentofadequatenumbersofski
l
ledcommuni t
yheal
th
workersonaregularst
ipendpaidthr
oughacost-
shari
ngframework
betweentheNat
ionalGovernmentandCount
yGovernment
s

 Ensure avai
l
abi
l
ity of cl
ean,saf
e,env
ironment
all
yfr
iendl
y and
aff
ordabl
ecooki
ngfuel
s.

 Pr
ovi
def
reesani
tar
ytowel
sinal
lschool
sandpubl
i
cwashr
ooms

46
 Takeadminist
rati
vemeasurestoensure100per centenfor
cementof
thespousalconsentl
egalprovi
sionsi
nlandtransactionst
ocushion
womenandchi ldr
enfr
om dispossessi
onoffamil
yl and.

47
Soci
alPr
otect
ion

Univer
salPensions
NSSFpay rol
ldeducti
onsystem i
s“notfi
tforpurpose”inaneconomy
where85per centofworkf
orcear
enotonf or
malpay r
oll
s.I
tisalsol
ow
tr
ustinsti
tut
ionbecausenoKenyanexpect
st ol
iv
eonNSSFr et
ir
ement
benefi
ts.

Kenya Kwanza Commi

tmentFitforpur pose uni
ver
salsoci
alsecur
it
y
syst
em encompassi
ngpensi
on,occupat
ionalhazar
dandunemployment
i
nsurance.

Childr
en
InKeny a26per centofchi ldrenunder5y ear
sofage( 1.
5mi l
l
ionchil
dren)
arechr onical
lymal nouri
shed.I nseveralcounti
esthisisover30percent.28
percentor707, 000chi l
dr en(369,310boy sand337,690girl
s)areoutofpr e-
primaryschool s,wi thnumber shi ghesti ntheASALcount i
es.Insome
counties,up t o 88 per centofel i
gibl
echi l
dren ar
eoutofschool .The
average pupi l-
to-teacher r ati
o i n Keny a is 36 t o 1, against the
recommendedl evelof25t o1.Thi sv ar
iesgreatl
yacrosscounti
es,withthe
highestr ati
obei ng188pupi lspert eacherandl owestat20pupi l
sper
teacher.

The Nat ionalSaf et

y NetPr ogr am cur rent
lyi s providing suppor tt o
approximately1.4mi l
li
onbenef i
ciari
es.Yetar ound13mi llionchi l
drenar e
i
nneedofassi st
ance,ofwhi ch7. 5per centarecurrentlyrecei vi
ngi t.This
l
eav esmor et han12mi ll
i
onchi l
dreninneedofsomef orm ofassi stance.
Keny aneedst ospendatl east554bi ll
ionshil
lingseveryy eart obeatpar
wit
hsomeot herlowermi ddle-i
ncomecount r i
eswhichspendupt o1. 7
percentoft hei
rGDPonsoci al protecti
on.
Keny aisranked49t houtof163count riesint er
msoft her i
skt ochildren
fr
om cl i
mat echange.Closet o90per centoft heburdenofdi seaseduet o
cl
imat echangei sbornebychi ldrenundert heageoff ive,includingmal ari
a
anddenguef ever
.

Keny
aKwanzaCommi
tment
s

 Er
adi
cat
emal
nut
ri
ti
onwi
thi
nfi
vey
ear
s.

48
 I
ncreaseaccesstoear
lysti
mulati
onandl ear
ning,andt
opr
ior
it
izean
i
ntegrat
edpackageofser
vicesforyoungchil
dren.

Improvelearni
ngoutcomesbypledgi
ngtoconnectallschool
stot he
Inter
net,
start
ingwithpri
maryandincr
easeinv
est
mentsinteacherre/t
rai
ning.

Vul
ner
abl
eSeni
orCi
ti
zens

Kenyahasabout1. 8mill
ionpeopleover65y ear
sofagei napopul ati
onof
55.6mi l
l
ion.Theyr epr
esentabout3. 8percentoft het ot
alpopul at
ion.
Therearesl i
ghtl
ymor ement hanwomen.About68 per centofol der
peoplearebet weentheageof65and75.Thi spopulati
oncont i
nuest o
grappl
ewi t
hl ackofincomesecur i
ty,i
nadequatehealt
hser vi
ces,lackof
employmentandadet eri
orat
ingenvi
ronment.

Keny
aKwanzaCommi
tment

 Achi
eve100per
centNHI
Fcov
eragef
orseni
orci
ti
zenswi
thi
nthr
ee
year
s

 Revampt hecashtransferpr
ogrammesf orelder
lyandvul
ner
able
households toimprove operat
ionalef
fi
ciency,promptpayment
accountabil
i
tyandcoverage

I
nvesti
neducati
onandt
rai
ningf
orcaregi
versandmedicalst
afftofi
l
l
t
hegapofskil
lsi
nthepr
ovi
sionofspeci
ali
zedcaref
orolderpeopl
e.

Peopl
eLi
vi
ngwi
thDi
sabi
li
ty

Inclusion into societ

y and empl oymentoppor t
unit
ies forpeopl e wi th
disabi l
it
ies requi
res impr oved access t o basic educat i
on,v ocational
trainingr el
evanttol abourmar ketneedsandj obssui tedtot heirski l
ls,
i
nt erestsandabi l
it
ies,withadaptati
onsasneeded;4. 6per centofKeny ans
exper iencesomef orm ofdisabi
li
ty;Mor edisabledper sonsr esideinr ur al
(2.6per centor0.7mi ll
ion)thaninurbanar eas(1.4per centor0. 2mi l
li
on) ;
15per centofPWDsar elikel
ytobeaf fectedbyenv ir
onment alf actorsona
dailybasi s;65percentofPWDsr egardt heenv i
ronmentasmaj orpr oblem
i
nt heirdail
yliv
es;Aquar terofPWDswor kinf amilybusinesses, butat hird

49
donotwor
katal
l
.

Keny
aKwanzaCommi
tment

 Ensur
e100per
centNHI
Fcov
eragef
orPWDswi
thi
n18mont
hs

Int
egrat
ed schoolst o all
ow chil
dren wi
th Di
sabil
it
ies t
o star
t
i
nteract
ing wi
tht he generalpubl
ic atan ear
ly age torest
ore
confi
denceandtheirsel
f-
esteem

 MergetheNat i
onalFund fortheDisabled ofKeny
a(NFDK)wit
h
Nat
ionalCounci
lforPersonswithDisabil
i
ties(
NCPWD)andensur
e
par
li
amentaryov
ersi
ghtforaccount
abil
it
y

I
ncreasecapi
tat
ionofpupi
lswit
hDisabi
lit
iesby50per
cent.Setasi
de
15percentofallpubl
icfundedbursar
iessetasideforpupil
swith
di
sabil
it
ies

 Ri
ngf
enceadequat
eper
cent
ageofHust
lerFundf
orPWDs

 5per
centofal
lmar
ketst
all
stobeal
l
ocat
edt
oPWDs

 5percentofAGPOshoul
dbef
orPWDswi
thani
ncr
easei
ntheLPO
f
inanci
ngfund

 Encour
age count
ies t
o wai
vi
ng l
i
cense f
ee ofnew busi
nesses
est
abli
shedbyPWDs

 Exempt all assisti

ve devi
ces fr
om import duty and expl
ore
possi
bil
it
iesofpar t
nershi
pwithdomest
icmanuf
acturer
stoproduce
aff
ordabl
edevices.

50
GOVERNANCE
Althought heKenyangovernmenthasmadepr ogr
essinputt
ingthe2010
const i
tuti
onintoeff
ect,morewor kstil
lneedstobedone.Manyofi ts
provisi
onshav enotbeenimplemented,andsomeinposi
ti
onsofauthori
ty
hav eabusedi tfort
hei
rpersonalgainandtothedetr
imentofthoseitis
meantt oprot
ect
.
TheKenyaKwanzaAll
iancebel
ievesthattheConsti
tuti
onofKeny a2010is
animpor
tanti
ssueont hebal
l
otinthiselect
ion.Speci
fical
l
y,thechoi
cewe
haveont
heballoti
sbetweengoingforwardandf i
nali
zi
ngi t
sreal
izat
ion,
or
goi
ngbackwardsasthecasemaybeal ongt heli
nesoft he70oddBBI
amendments.
We ar ef orcompleti
ng t
he implementation ofthe 2010 Constit
ution,
str
engtheningt
heruleofl
aw,incr
easingaccesst oj
ust
ice, ensur
ingr
espect
for human r i
ght
s,and r especti
ng t he United Nations Sustai
nable
DevelopmentGoalnumber16, whi
chf ocusesonpeace,just i
ce,
andstrong
i
nstit
utions.

TheKeny
aKwanzaCommi
tment
.
I
mpl
ement
ati
onandoper
ati
onal
i
zat
ionofConst
it
uti
onofKeny
a2010by
:
 EquippingtheAttor
neyGeneral
'
sofficewi ththeresourcesandabi l
i
t y
i
tneedst osafeguardthepubli
cint erestincourt,inl egi
sl
ati
ng,in
negotiati
ngint
ernat
ionalagr
eement
s, andinthesigni
ngofcont racts.
Bydoi ngso,thegovernmentwil
lavoidneedl essli
ti
gationandcost ly
fi
nes
 Bolst
er i
ng t
he fi
nancialand techni
calcapabil
i
tiesaswel last
he
i
ndependenceofal lindependent(Chapt
er15)i nst
it
uti
onstomake
suret heyarecapableofdef endingthenat i
onalint
erestandt
he
people'ssov
erei
gnty
Inst
it
utional
i
zing human r i
ghts-
based appr
oaches t
o Counter
-
Terr
orism (CT),i
ncl
uding str
engt
hening t
heSpeci
alCT Cour
tsto
ensurespeedyandfai
rtri
als
 St
rengt
heni
ngt
heOf
fi
ceoft
heRegi
str
arofPol
i
ticalPar
ti
es(
ORPP)

51
 byest
abl
i
shi
ngi
tinal
lcount
ies
 Ending t
heweaponi
zat
ionand poli
ti
cizati
onoftheant
i-
corr
upt
ion
eff
ortsbyallowi
ngtherel
evantinst
it
utionstof
reel
yexerci
sethe
i
ndependencegiv
ent
othem bytheconsti
tuti
on
 Granti
ngf i
nanci
ali
ndependencetotheEthi
csandAnt i
-Cor
rupt
ion
Commi ssi
on(EACC)andthepoli
cet
oprev
entthei
rrel
i
ancetheOff
ice
ofthePresi
dent
 Entr
enchi
ngthei
ndependenceoft
heJudi
ci
arybyoper
ati
onal
i
zingt
he
Judi
ciar
yFund.
 Promoti
ngaccountabil
ityandopennessinthemanagementofpubli
c
aff
air
s,i
nst
it
utional
izi
ngopengov er
nancethroughoutal
lst
ateor
gans
andagenci
es,andpublishi
nganannual St
ateofOpennessRepor
t.
 Appoint
ingallJudgesnominatedbyJudici
alSer
viceCommi
ssi
on
(JSC)totheCour
tofAppeal
withinsev
endays.

Fundament
alRi
ght
sandAdmi
nist
rat
iveofJust
ice
 Endingal
lformsofextra-
judi
cialexecut
ionsbysecur
it
yser
vices,and
Amendt heNat i
onalCoroner
sSer viceActof2017t oest
ablishthe
CoronerGeneral
’
sOffi
ce
 Est
abli
shi
ngaSpecialTri
bunalforGrossHumanRight
sViol
ati
ons
andEnfor
cedDi
sappear
ances(i
ncludi
nginNor
ther
nKeny
a)
 Rati
fyi
ng and domest
icat
ing the I
nter
nati
onalConventi
on f
ort
he
Prot
ecti
onofAllPer
sonsfrom Enfor
cedDisappear
ances
 Endingallunauthori
zedevict
ionsandpropert
ydemolit
ions,i
ncl
udi
ng
thosethatdon'tfol
l
owduepr ocess,pr
ovideenoughnoti
ce,orpr
ovi
de
compensat i
onwher enecessary
 Deter
mining,wi
thi
n60day s,al
ljudgmentsandorder
sagai
nstt
he
Kenyan Gover
nment,and cr
eati
ng a pl
an t
o make sur
ethatt
he
Governmentabi
desbyall
courtr
uli
ngs
 Ensur
ingequalpr
otect
ionf
oral
lundert
hel
awbyi
mpl
ement
ingand

52
 f
undi
ngt
heLegal
AidActof2016
 Enhanci
ngtherehabil
i
tati
onandreint
egrati
onaspectsoft
hePri
sons
syst
em,byprov i
dinggreat
erpsycho-
socialsuppor
tandeducat
ional
andtechni
cal
trai
ningopport
uni
ti
es
I
mpl
ement
ingt
heVi
cti
msofCr
imeAct
 Endet hni
cprofil
i
ngint heissueofidenti
tydocument s.Specif
icall
y,
establ
ish an admini
str
ati
veappealst ri
bunalto ensureaf ai
rand
tr
ansparentprocessintheregist
rat
ionofpersons,withclearappeal
procedureofnotmorethan14day s,ifaper
sonisdeniedregistr
ation.

Endi
ngSt
ateCapt
ure
 Est
abl
ishi
ng,withi
n 30 days,a Quasi
-Judi
ci
alpubl
icinqui
ryto
est
abl
i
sht heext
entofcrony
ism andst
atecaptur
eint
henati
onand
makerecommendati
ons
I
mpl ementing Secti
on 93A ofthe Companies Act2015 and i t
s
Regulat
ions in orderto make iteasierfororganizat
ions doi
ng
busi
ness wi t
ht he governmentto shareinf
ormation abouttheir
benefi
cialowners.Thi
sinfor
mati
onwillbepubl
icl
yavail
able
 St
rengt
heningMut ualLegalAssistancearr
angement
swi t
hpar t
ner
st
ateswithr espectto shar
ing ofinfor
mati
onand repat
ri
ati
onof
st
olenassets.

St
rengt
heni
ngLeader
shi
pAccount
abi
li
tyandDe-
per
sonal
izi
ngourPol
it
ics.
 HoldanAnnualSt ateoft heNationFor um,asanext ensionoft he
country
-wideconsul t
ati
veeconomi cf or
umst hathavebeenacor e
componentoft his campaign,as a platfor
m fordialogue whose
recommendationsandi nputpri
ort otheStateoftheNat i
onAddress
to Parl
iament,perar t
icl
e 132(1)(c)
,and t oincl
ude appr opr
iate
monitori
ngandev aluati
onmechani sms
 Establ
ishanengagementpl
atf
orm whichwi
llr
ecogni
zeandengage
Micro,Smal
l,Medi
um andLar
gebusinessowner
s,ci
vi
lsoci
ety
,fai
th-

53
 basedgroups,y
outhleader
s,womenl eader
s,andother
stoaddr
ess
thecohesi
onandinequal
it
ychal
lengesofthecount
ry
 Revi
ewt
her
oleoftheNati
onal
Cohesi
onandI
ntegr
ati
onCommi
ssi
on
wit
havi
ewt
or epeal
i
ngtheNCICAct
 Operat
ional
ize t
he Public Benef
its Or
gani
zat
ions Actand expand
spacef orGovernment-NGO partner
shipsandcoll
aborat
ions,whil
e
sti
l
lmaintai
ningthei
rindependence
 Legi
slat
eanAf fi
rmati
veActi
onframeworkt
oimplementArti
cl
e56of
theConsti
tut
ionregar
dingminor
it
iesandmar
ginal
i
zedgroups.

St
rengt
heni
ngDev
olut
ion
 Complet
et ransferofallfunct
ions const
it
uti
onal
l
year
mar
ked as
dev
olv
edf uncti
onstocount
ieswithi
n6mont hs
 Devel
opaf rameworkf orensuri
ngthatst
ate-ownedfir
mscar r
yingout
devol
v edorsharedf uncti
onsadher etot heprinci
plesofdev olv
ed
governance and ensuring t
hatt he pr
incipl
e of" f
unding f
ol l
ows
funct
ions"i
sadheredt owithrespectt
oalldevolv
edfuncti
ons
I
mprovecountygov
ernments'capaci
tyt
ogenerat
ethei
rownincome
i
nordertoreducethei
rover-
rel
ianceontr
ansf
ersfr
om thenati
onal
gov
ernment
 Ensur
et hatshar
abl
erevenueistransfer
redtocounti
esi
nat
imel
y
andpredict
abl
emannerandinaccordancewit
hthelaw.
 Transf
erfundsowedt othebenefici
arycounti
esandcommuni ties
undertheMi ni
ngActof2016andt hePetr
oleum Actof2019wi thin
si
xmont hs,andworkwiththecountygovernmentstoi ncr
easet he
capaci
tyofthecommunit
iestobenefi
tfr
om extr
acti
veresources.

54
Secur
it
y&Publ
icSer
vice
As gov ernmenti si ncreasingly call
ed upon t o address compl ex and
i
nt erconnected chal l
enges theirneed f orl eaders,manager s,t echni cal
exper ts,andf r
ont-l
inewor kersint herightj obswi thther i
ghtski ll
satt he
ri
ghtt i
mehasnev erbeengr eater.Yetgov ernmentcont i
nuest ostruggl eto
buildapubl i
cservicewor kforcethatcanmeett heuniquedemandsofour
ti
meduet olabori
ousandt ime-consumi nghi ri
ngpr act
ices,limitedsal ar y
fl
exi bil
it
ies,andpr omot i
onr ulest hatv aluel ongevityoverexper ti
seand
per formance.Publicmanager sandempl oy eesar ealsostrugglingt oadapt
tot her apidl
ychangi ngnat ureofwor k.Foral lthesereasons,wef acea
signi f
icantri
skt hatmanypubl i
ci nst
itutionswi llnothav et hewor kforce
capaci tynecessaryt oachiev etheircri
ticalmi ssionsandpr ovideser vices
tot hepubl i
c.

Manypubl i
cempl oyeesar eofr eti
rementage.Ast heyl eavethewor kforce,
ther esultcanbeamaj orbraindr aingivent hatgov ernmentstruggl esto
quickl ybr i
ngnewt alentonboar d.Wear eatr iskofl osingagener ati
onof
youngerwor kersbecauseofi nadequat ehi r
ing systemsand pr act i
ces.
Simi lar l
y,theneedsofgov ernment sov ert henext5t o10y earswi l
lbe
differ entt hant hatoft oday,butt hepubl icsectordoesapoorj obof
cont inual l
ytraini
nganddev el
opi ngi t
swor kfor
ce.Italsoi stooresistantto
bringi ngi noutsidetalent,especiall
yatseni orlevels.Thatsaid,theuni que
combi nati
on of publ i
c-spi
ri
ted y ounger generat i
on and a wav e of
retirement scouldpr ovi
degov ernmentatal ll
evelswi thanoppor tunityto
restr ucturetheirworkforcetomeetmoder n-dayneeds.

Keny
aKwanzaCommi
tment
s

 Bui
ldi
ngahi
ghl
y-ski
ll
ed,agi
l
e,andresponsi
vepubli
csectorworkf
orce
wit
happr
opr
iat
er ol
esforci
vil
ser
vantsandotherserv
iceprov
ider
s;

 Devel
opstr
ategi
cf or
esightmechani
smst
oant
ici
pat
eandaddr
ess
changi
ngworkf
orcerequir
ement
s;

 Ensure l
ong-
ter
m i
nst
it
uti
onal knowl
edge capaci
ty ami
dst t
he
ret
ir
ementwave;

 Desi
gnnew humancapi
talsyst
emsconsist
entwi
thmer
it-
syst
em
pr
inci
ples i
ncl
udi
ng moderni
zi
ng pol
i
cies and pr
act
ices for

55
 r
ecr
uit
ment
,ret
ent
ion,
trai
ning,
anddev
elopment
;

Secur
it
ySer
vices

Securit
ysect oriscri
ti
cal t
olong-t
erm sustai
nabledevelopmentandpov erty
all
eviati
on, byensuri
ngt hatsaf
eandf airsyst
emst oenablepeopletowork
and busi ness to operate.Underdevelopmentf uels cri
minal
isati
on and
i
nsecur i
ty,andv icever
sa.Despitestepst owardsreform,manychal l
enges
sti
llexisti n ef
fecti
vei mplementati
on ofsecur it
ysect orrefor
msasi s
evi
denti ncont inuedcasesofpol i
ti
calinter
ference;poorleadershi
pand
performancemanagement ;cor
rupti
on;excessiveuseoff or
ceandt ort
ure;
extr
ajudicialki
ll
i
ngs;andal ackofeffecti
veoversightandaccountabil
it
y.

Cri
ti
cally
,independentandf airpolicingisvit
alf orthepr ot
ecti
onofhuman
ri
ghts,part
icul
arlytherightsofthemostv ul
nerableandt hepoor,
whoof ten
suff
erdi sproporti
onatelyf rom insecur i
ty.The Keny a Kwanza coali
tion
acknowledgest hatdemocr ati
cpol icingandr espectf ortheruleoflaw is
vi
tal to impr ove dev elopment by ensur i
ng saf e, secure and f ai
r
envi
ronment sf orpeopl et o wor k,t rav
el,i
nv est,par t
ici
patein nati
onal
aff
airsandt oenjoytheirli
ves.

Keny
aKwanzaCommi
tment

 Contri
but
orybenev
olentfundforfamili
esoff
all
enandt
ermi
nali
l
l
of
ficer
s,i
ncl
udi
ngment al
healt
hil
lness.

 Harmonizat
ionofaff
ordabl
ehousi
ngmor
tgage(
simi
l
art
othatof
Judi
ciar
yandParl
iament)

 Hor
izont
alt
ransf
erofser
vicet
other
estofci
vi
lser
vice

I
nsur
ancecov
erf
orl
ossofl
i
feondut
y(si
mil
art
othatofmi
l
itar
y)

 Lowercadreof f
icer
s(ser
geantandbelow)t
obegi
vent
heopti
onof
serv
ingintheirhomecounti
esfrom t
heageof50(
orwher
ethey
chosetoreti
re)

 Poli
ti
calWil
l-Secur
it
ysect
orref
ormisgoodf
orev
ery
oneandpol
i
ce
ref
orm ef
for
tsmustnotbewoundback.

56
  Wit
hinthe fi
rst100 daysthe Kenya Kwanza admini
str
ati
on wil
l
commissi
onar ev
iewthatwil
lconsi
deri
mprovementofrenumerat
ion
andtermsofser vi
ceforalloffi
cersi
nt hesecuri
tysectortobe
commensurat
ewi t
hthecostl
ivi
ng.

For
eignPol
icy&Regi
onalI
ntegr
ati
on
Kenya'ssi gni
fi
cancei nwor l
daffai
rsisdemonst ratedbyt hef actthatitis
consideredananchorst ateintheEasternAf r
icanr egion.Itistheonl yUN
headquar tersint he gl obalsout h,serves as a hub f ori nternati
onal
corporationsandor gani zat
ions,andisakeypl ay eri npeaceandsecur it
y
i
niti
ativesintheregion.
TheKeny aKwanzagov ernmentwi l
lseet oitthatt hecount r
yisr espected
andv al
uedabr oad.Itwi l
l pr
omot efri
endl
yr el
ati
onswi thournei ghbors,play
aleadi ng roleinr egionaland pan- Afr
icanaf fairs,col l
aboratewi thour
i
nternationalpart
ner s,anduphol dourcommi tment st othei nternati
onal
communi ty.

Keny
aKwanzaCommi
tment
.

Acreat
iveandr
obustf
orei
gnpol
i
cy.
Pi
l
lars:

Economi candCommer cialdiplomacy,

This entails leveragi
ng our i nter
national engagements to cr eate
opportuni
tiesforourci t
izens,businesses,andinvestor
s.I
npar t
icul
ar,we
aim to expand t he mar ketf orourpr oduct
s and serv
ices byt aking
advantageofourmember shipinr egionalorgani
zati
onsl i
ket heEast
Afri
canCommuni t
y,theCommonMar ketforEaster
nandSout hernAf r
ica
(COMESA) ,theAf r
icanCont i
nentalFreeTr adeAr ea(AfCTA),andt he
Int
ergovernment alAuthorit
yonDev el
opment( I
GAD) .

AnchorSt ate
StrengthensKeny
a'sr
oleasananchorst at
einregional
,cont inental
,and
gl
obalaf f
air
s.We wil
lcontinue tolead effor
tst o adv ance regional
stabil
it
yandpeace,ai
dglobalini
ti
ati
vestocounteractviolentextremi sm,
andcooper atewi
thot
hercountri
esasar eli
abl
eall
yornei ghbor .

57
 DiasporaEngagement
Thisaimst ounlocktheful
lpotent
ialofKeny ansli
vi
ngover
seas.Si
nce
theygeneratemostofourforei
gnrev enue($3.7bil
l
ioni
n2021),wewil
l
faci
li
tat
et hei
rinvest
mentlocal
l
yandi ncl
udet hem i
nthedevel
opment
andexecutionofpoli
cy.

Globalci t
izenshi p
This ent ails suppor ting t he wor k and deci sions of i nternati
onal
organizationst hatKeny ahasj oinedorratifi
ed.Theseincludet heAf r
ican
Union,t he EastAf r
ican Communi t
y,and t he Unit
ed Nat ions and its
affi
li
ates.Ourf orei
gnpol i
cywi l
lbeglobali nscope,butitwillhaveamor e
pan-Africanistst ance,pl acingmor ef ocusoncausest hati mprovet he
si
tuat i
onofAf ricanswor ldwide.Wewi l
lnotonlydeepenourbondswi th
ourl ong-standingi nternat i
onalandbi l
ateralpart
ners,butwewi llalso
extend ourf r
iendshipt o any one with whom we bel i
eve a mut uall
y
benef i
cialrelat
ionshipcanbef ormed.

Di
aspor
a

TheKeny aKwanzaCoal i
ti
oni sali
vetot hefactthatther
eisanest imated3
Mi l
l
ionKeny ansl i
vi
nginvariouspar t
soft hewor ldandconstitut
eKeny a’
s
diaspor
acommuni ty
.Thi
spopul ati
oncont inuestoform anintegralpartof
theKeny aneconomyandsoci alf
abric.Ourgov ernmenttherefor
ei ntends
toengaget heKeny anDiasporai namor econstr
ucti
veandpr oducti
ve
mannert o unlockandunl easht hef ullpotent
ialofKeny ansdomi cil
ed
acrossthegl obe

Keny
aKwanzaCommi
tment

 Creat eaDiaspor aMinist

ry
I mpr oving del
iveryofgov ernmentser vi
cest hrough decentr
ali
zing
servicesandf uncti
onsofKeny anmi ssi
onsabroad
 Establ i
shadi aspor aforum whi chwi l
lreview progressofnat i
onal
gov ernmentser vi
ces tot he diaspora and make t he necessary
recommendat ions
 Establ i
shnewandenhanceexi sti
ngt r
adeandi nvestmentchannelsin
ordert opromot ef ur
therinwardi nvest
mentbyKeny anslivi
ngint he
diaspor a

58
 Facili
tateaccr edi t
at i
onsandendor sement sofKeny a’squalif
icati
ons
andski llswitht hoseoff oreigncount ri
esf oreasyaccessi ntohigher
educat ionandf oreignjobsbyKeny ansl ivi
ngi nt hediaspor a
 Facili
tatet hepor t
abili
tyofknowl edge, skil
ls,innov ationandt echnical
resourcesav ail
abl einthedi aspor afornat i
onal development
 Establishasoci alwel faresy stem f orKeny ansl iv
ingi nthedi aspora,
through expl oring and i mpl ement i
ng t he por tabili
ty of soci al
protection
 EngageKeny anspor tsmenandwomenandot heremi nentKeny ans,
topr omot epat rioti
sm andsoci alcohesi onbot hinKeny aandgl oball
y
 Promot etheKeny anbr andandest abli
shKeny anbr andambassador s’
i
nitiati
vewhi chwi llmarketKeny anser vicesandpr oduct sandequal ly
i
ncr easet hegl obal mar ketshareoft heseser vicesandpr oduct s.

59