Professional Documents
Culture Documents
PLAN
The Bottom Up Economic TranSformation Agenda 2022-2027
1
Foreword
T
he election ahead of us is a pivotal one. We rule of law. A constitution is the foundational
have three issues on the ballot and how institution of a nation. That said, a constitution
we make choices will determine whether is only as good as the political culture. Schol-
Kenya marches forward or backwards. ars talk of constitutions without constitutional-
My first agenda is to defend our Constitution. ism. It beggars belief that, in this day and age,
For the better part of three years, my oppo- we have leaders among us whose most pro-
nents subjected us to an absurd process aimed found political idea is that our national unity is
at confusing Kenyans into voting to restore an best promoted by the establishment of a con-
imperial presidency supported by a court of clave of tribal chiefs. They have gone further
tribal kingpins who will supervise the judiciary, and devised a strange contrivance, alien to
control the legislature and diminish our Bill of democracy, that they call a coalition political
Rights. Thankfully, by the grace of God, the party. But even before the ink has dried on the
courts ended the circus. But we have been mysterious coalition agreement, the edifice is
promised that reggae will be back. We must already unravelling. Why? Two reasons.
ask ourselves whether we want to go from an
election into political battles, or to focus our First, to earn a place at the table, one must
energies on getting our economy and devel- first emerge as the undisputed kingpin of his
opment agenda back on track. community, by weakening all other contend-
ers for the throne. Second, it is also the case
It is my firm conviction that our 2010 Consti- that there cannot be a table big enough to ac-
tution is serving us well, and the challenges comodate the kingpins of Kenya 40 plus com-
that remain are largely where we have resist- munities. What has been touted as the pana-
ed implementation. We have resisted opera- cea for “winner takes all” turns out to be a real
tionisation of the Judiciary Fund that will give life Game of Thrones.
the Judiciary the financial independence and
resources it adequately needs to perform its It is my firm conviction that the unity, stability
functions effectively. We have similarly resist- and prosperity of our country lies not in the
ed appointing an accounting officer for the greatness of men but in the strength of our
Police Service so that the Inspector General institutions. Our United Democratic Alliance
of Police and the DCI can do their jobs with- (UDA) party is founded on the ideology that
out fear or favour. This resistance is not by ac-
the national aspirations - justice, peace, free-
cident. Its purpose is to retain the control of
these institutions by the Executive so that the dom, prosperity - that we pray for, as we sing
system can be weaponised to fight political our national anthem, is a covenant that binds
opponents and shielding allies, business asso- us to political inclusion and economic empow-
ciates and family members. A system where erment of all Kenyans.
culpability for crimes depends on what side of
the political divide one is on at a point in time, The people of Kenya do not need patrons and
and can be changed by simply crossing over political gatekeepers to represent them at the
to the correct side, is unacceptable. conclave of tribal chiefs. What the people of
Kenya need are national democratic political
When elected President, I intend to empower parties that enable them to participate fully
the Judiciary and the criminal justice system im-
in decision-making, to hold leaders account-
mediately as required by the Constitution. As
your President, I will want neither the power to able and, above all, to give everyone an equal
persecute my political opponents nor the means chance to lead based only on their ability and
to shield my allies and friends. It is my solemn desire to serve, irrespective of their tribe, gen-
pledge to Kenyans that no judge or Inspector der, physical disability or social background.
General, Director of DCI or Director of Public
Prosecutions or any official in the criminal justice My third agenda is jobs. Every year, 800,000
system will ever receive a call from William Ruto young Kenyans are joining workforce after
regarding a matter before them. completing school, college and university.
The corporate sector is only able to employ
My second agenda is to institutionalise our 50,000 or so. Another 100,000 to 150,000
politics, which is to say, end personalisation of
fortunate ones are able to find stable jobs in
political power, and governance generally.
This is an absolutely critical element of our successful small businesses. The others, more
transition to constitutional democracy and than half a million, swell the ranks of frustrat-
3
Foreword
ed young people eking precarious livelihoods Yet it is so obvious that the rising tide of em-
as hawkers, casual labourers and subsistence powering the masses at the base of the eco-
farmers who hardly produce enough to meet nomic pyramid is not at the expense of those
their needs. The number of struggling Ken- at the top. On the contrary, it is a case of a
yans now exceed 10 million, more than half rising tide lifting all boats. Allow me to illus-
the country’s workforce. People are Kenya’s trate. If, as we intend to, increase the aver-
most important resource. If half of them are age daily income of the 10 million struggling
not productive, then it stands to reason that Kenyans by Sh200 day, this translates to Sh2
the economy will be like an engine firing only billion a day, Sh730 billion a year. Where will
half the cylinders. this income will end up? The bulk of it will be
spent on the basic consumer goods that keep
Thirty-five years ago, the Government wrote, those who are pouring scorn on wheelbarrow
in Sessional Paper No. 1 of 1986, and I quote: pushers employed.
“The, modern, urban industrial business sec-
tor cannot be depended on to employ much When unemployed university graduates ask
of the growing work force”. The paper was us how empowering wheelbarrow pushers
emphatic, and I quote again: “Limited capital will do for them, they miss the obvious fact
will require that most jobs be created in ag- that the demand for the white-collar jobs they
riculture and the informal sector.” It warned desire are dependent on the size of the mar-
that if we did not change our model six million ket. Why the disconnect? It suffices to point
Kenyans would be unemployed by the year out that the narrative that the well-to-do are
2000. That is where we are now, only that we where they are by merit, and the poor where
count as employed millions people who go they are because they are less able, is the
out every day to try their luck on the streets time-honored self-serving justification of the
of our cities and towns. One day, they bring status quo in class and caste societies. For
home Sh100, Sh300 on good days and noth- those who lie to themselves thus, I tell you
ing on bad days. On very bad days, they are this, the wheelbarrow pushers are as able,
arrested and lose what they would make in a talented and resourceful as you are. The only
week or more. reasons our lives have taken different paths is
luck or who you know.
We have known for four decades that our
economic model is seriously flawed. We have On August 9, you will be called to choose
also known that the limited capital available between two roads. One leads to constitu-
would best be invested in creating jobs in ag- tional democracy, institutionalised politics
riculture and in the informal sector— at the and opening the doors of opportunity to the
bottom of the pyramid. Four decades on, many. The other takes us back to the imperi-
our economic system continues to be struc- al presidency, deeper into personalisation of
tured in ways that channel capital and other power and to the inevitable and predictable
resources to the top of the pyramid, creating end of economic apartheid that we see so of-
immense wealth or the few at the expense of ten around the world.
jobs for the many, and prosperity for all.
Yet it is so clear that a rising tide will lift all The power is in your hands.
boats.
28 50
12
21 19
Contents
2 Foreword 25 Digital Superhighway 41 Environment
21 Healthcare
5
Section1
Introduction
T
he August 9 General Election will take some of our founding fathers found the oppor-
place just three weeks short of the 12th tunities for self-enrichment too much to resist,
anniversary of the promulgation of the a sentiment that was captured in the Ndegwa
Constitution of Kenya 2010. In these 12 Commission report of 1971:
years, Kenyans have seen glimpses of the na- “The achievement of independence in Kenya
tion that we aspire to be. We have seen how in- has brought with it great opportunities for in-
dependence of the Judiciary is meant to check dividual advancement both so as to maintain
excesses of Executive authority. Through devo- careers and in less than orthodox ways. It is
lution, we have seen how downward political understandable that public servants should
accountability can be more responsive to peo- have taken their opportunities like other citi-
ple’s needs compared to the centralised top zens, but if the benefits in some cases seem
down administrative structures of yesteryears. out of proportion with other Kenyans, it is
inevitable that questions be asked as to how
It is worthwhile to reflect on where we have this came about.”
come from so as to see more clearly where we
are on the journey to the nation that we would The commission went on to make the infa-
like to be and deserve. Our aspiration is a unit- mous recommendation that legitimised con-
ed, peaceful, free, just and prosperous nation flict of interest, thus laying the foundation for
that we pray for every time we sing our national the concentration of both economic and polit-
anthem. ical power in the same few hands, prompting
the late J.M Kariuki to warn of a nation of 10
Sixty years ago, we achieved political millionaires and 10 million beggars, the cor-
independence, but it did not deliver the ruption syndrome that is now universally rec-
freedom that our forebears yearned and ognised as State Capture.
sacrificed for. The colonial State’s structures
of racial domination and political repression For the better part of three years, we have
were not dismantled. Instead, they were been compelled to defend our constitutional
appropriated by those who inherited the dispensation from the same forces that sub-
positions of power and privilege previously verted the Independence Constitution, and for
occupied by the white people for their own gain the same reasons to preserve State Capture
and self-aggrandisement. Political betrayals, and its counterpart, trickle-down economics.
fallouts and another political struggle began The economic crisis that we are in is an omi-
almost immediately. This struggle was to last nous sign that we have reached the end of this
another five decades. In 1992, Kenyans secured road. There are not enough white-collar man-
a new political dispensation and began to roll agerial jobs in the public service or the small
back the structures of political oppression, but corporate economy to absorb the hundreds
it would be another 18 years before Kenyans of thousands of irrepressible young educated
would secure the constitutional dispensation Kenyans with middle class aspirations. It is no
that was frustrated shortly after independence. longer possible to extinguish their aspirations
by ‘failing” them in examinations, neither can
But throughout all these struggles, there is one we continue to throw crumbs at them such as
domain that has remained outside the purview kazi kwa vijana, exporting a few nurses over-
of political action, and that is economic power. seas and such, expecting that it will stem the
The colonial structures of domination and po- tide, as we continue with business as usual.
litical repression were not ends in themselves. Sooner or later, the dam is bound to break.
They were means to an end. That end was
economic domination. When they took over,
W
e are presently confronted by three tic) Sh2.1 trillion revenue target. Interest cost
challenges that have converged into a is now the single largest expenditure item on
perfect economic storm. The first is an the recurrent budget, exceeding the Nation-
external shock of rising inflation and al Government wage bill (Sh550 billion) and
interest rates, occasioned by Covid19-related dwarfing the county governments’ equitable
global supply chain bottlenecks, the econom- revenue share (Sh370 billion). It is important to
ic stimulus spending in the major economies, note that, although foreign and domestic debt
and the Ukraine war. are of the same order of magnitude, domestic
debt accounts for close to 80 per cent of the
These shocks are responsible for a surge in interest cost at Sh515 billion, against Sh144 bil-
prices as well as shortages of commodities, lion interest on foreign debt. This underlines
including petroleum, edible oils, fertilisers, the importance of restoring the country’s ex-
among others, all of which feed into the rise ternal creditworthiness.
in the cost of living that Kenyans are experi-
encing. The rise in interest rates is causing dif- The third force is the structural weaknesses
ficulties in refinancing our foreign commercial and imbalances in the real economy. Kenyans
debt. The foreign commercial debt stood at continue to be exasperated by a paradox of
$10.7 billion (Sh1.3 trillion) contributing 29 per impressive GDP growth numbers on the one
cent of foreign debt as at end of 2021, of which hand, and the economic hardships that they
$7 billion (Sh840 billion) is Eurobonds, and the experience on the other. This paradox is not a
balance is principally syndicated bank loans. mystery at all. In recent years, growth has been
Rising interest rates portend refinancing risks, dominated by large public infrastructure proj-
investors having no appetite to roll-over our ects (the SGR and the new Nairobi Expressway,
bonds when they mature, or only willing to do for example), which have very little multiplier
so at inordinately high interest rates, in which effect on the economy.
case the government may have to finance the
redemption of the maturing debt from foreign Government domestic financing has crowd-
exchange reserves. ed out the productive economy in the use of
credit and other resources. One sector where
It will be recalled that the rationale for going this is clearly evident is agriculture. Food im-
into the sovereign debt market was because ports have increased from 10 to 17 per cent of
it was cheaper than borrowing locally. But our goods imported over the last decade which, in
bonds are now trading at upwards of 12 per actual terms, translates to a 2.5 fold increase
cent. Anticipating this risk may be reason why from $1.2 billion to $3 billion. In turn, this has
the Central Bank has resorted to rationing for- increased the country’s vulnerability to global
eign exchange. Rising global interest rates will food supply shocks such as the one we are cur-
not only increase the cost of borrowing abroad, rently experiencing.
but may also be transmitted to domestic inter-
est rates, increasing the overall debt service The saying goes that when in a hole, one
burden on the government, making budget should stop digging. Kenya Kwanza is very
deficit reduction more challenging and aggra- alive to this counsel. The economic turbulence
vating the problem of crowding out the private that we are in demands more than a manifes-
sector from the domestic credit market. to that makes a catalogue of pledges that, if
implemented, could push the country beyond
The second challenge is fiscal distress. That the tipping point. It requires a credible eco-
our public finances are not in good order is nomic turnaround plan, a plan that gives Ken-
something that can no longer be denied. In- yans realistic hope.
terest cost this financial year is projected to be
Sh660 billion and total debt service at over a
Sh1 trillion, against a projected (and optimis-
7
Why
“Bottom Up”?
F
ewer things have captured public debate But the core problem is access to capital. For-
in this election than the idea of “bottom ty-three per cent of them started with a cap-
up economics.” This manifesto would not ital of Sh50,000 or more, while only 6.5 per
be complete without elaborating what it cent of the informal ones started with a sim-
is, and why we think it is the solution. ilar amount. It takes capital to make labour
productive. A farmer with oxen can plough
The Kenyan workforce is now in the order of three or four times more land a day than the
19 million people. Of these, just under three one who only has a hoe, while the one with
million, only 15 per cent work in formal jobs a tractor can plough 10 times more than the
in both public and private sectors, with the one with oxen. A motorcycle will increase the
private sector employing two million and income of a young man, without the harras-
public sector just under 900,000. The other ment of county askaris from Sh200 a day to
16 million (85 per cent) work in micro, small Sh400-Sh500.
and medium enterprises (MSMEs), both for-
mal and informal. The MSME economy itself The primary task of economic policy in de-
is extremely diverse. It ranges from well-es- velopment is to mobilise and influence the
tablished small and medium-size firms (SMEs) allocation of capital in the manner that it
that offer its owners and employees stable generates the most benefits for the country.
dependable income, to the unlicensed street These benefits include employment, equita-
vendors whose livelihoods are akin to a daily ble distribution of income, economic stability,
lottery in which they never know when they adequate tax revenue and foreign exchange
leave home in the morning whether they will earnings.
make Sh100 or Sh200, Sh300 on a lucky day,
or get arrested and lose everything on a bad Thirty-six years ago, the Government wrote
day. in Sessional Paper No. 1 of 1986 that “the
modern, urban industrial sector cannot be de-
The economic implications of being one or pended on to employ much of the growing
the other are an eye-opener. According workforce” hence “limited capital will require
to the Kenya National Bureau of Statistics that most jobs be created in agriculture and
(KNBS) data in 2016, licensed stable MSMEs the informal sector”. According to the paper,
generated an operating surplus of Sh50,000 it required Sh320,000 to create one job in the
an employee a month, while those in the “lot- modern economy (Sh4 million today, when
tery” economy generated Sh3,250. In other adjusted for inflation). It warned that if we did
words, the workers in formal MSMEs were 15 not change the model and direct more capi-
times more productive than those in the lot- tal to agriculture and the informal sector, six
tery economy. million Kenyans would be unemployed by the
year 2000.
There are many reasons for this dichotomy.
The most readily apparent reason is the hos- Today, our industry remains one of the most
tile environment that informal MSMEs oper- capital intensive at our level of development
ate in that could not be better captured than where it takes more than Sh1 million to create
the sight of street traders chased down the one manufacturing job in the formal econo-
streets and bundled into lorries by the county my compared to $1,000 - $2,000 (Sh120,000 -
authorities. Clearly, a trader who anticipates Sh240,000 at current exchange rate). Because
such situations is constrained to carry only the other sectors in the formal economy are even
wares that they would be able to flee with, or more capital intensive, hotel and airline in-
are prepared to lose. It is also the case that dustry, for example, the cost of creating a job
there being low or no entry barriers to infor- across the entire formal economy could still
mal trade, there are too many businesses for be what it was in in the 1980s. This is not ac-
the size of the market, meaning that many of cidental -- it is a consequence of political and
the people are underemployed. policy choices that we make.
The answer is convergence of political and That the ILO mission found it necessary to
economic power. As early as 1967, only four dispense with diplomatic language and call
years after independence, the National Coun- out the prejudices against the informal sector
cil of Churches of Kenya (NCCK) found it nec- it found in the higher echelons of government
essary to set up a taskforce to look into what is instructive.
it saw as worrying concentration of econom-
ic power occasioned by Africanisation poli- We cannot postpone these clarion calls for an
cies. Its report, Who owns Industry in Kenya? inclusive, job creating economic model for-
warned of concentration of economic power ever, in fact, not for much longer. Bottom up
in the hands of a small managerial elite. Four economics is about investing the limited capi-
years later, another taskforce commissioned tal available where it will create the most jobs
by the International Labour Organisation -- at the bottom of the pyramid. What does
(ILO) to look into the problem of unemploy- it mean practically? It means a commitment
ment and inequality also zeroed in on the con- to invest Sh500b over the next five years in
centration of economic power: smallholder agriculture and the informal sec-
tor. Financial commitment is absolutely neces-
“Kenyanisation has radically changed the ra- sary, but far from sufficient.
cial composition of the group of people at the
centre of power and many of its policies, but it It also means commitment to end exclusion and
has had only a limited effect on the mechanisms criminalization of livelihoods, and level playing
which maintain its dominance. Indeed, the pow- field for all investors big and small. Bottom
er of the centre over the periphery may well be up economics means reforming the Nation-
greater today than it was before, since there is a al Health Insurance Fund (NHIF) and National
closer correlation of interests between the urban Social Security Fund (NSSF) to level the playing
elite, the owners of large firms and the larger for- field among all Kenyans in terms of health and
eign-owned companies.” old age security. It means making it possible for
a Jua Kali artisan to afford the cost of these con-
The ILO mission also zeroed in on the infor- tributions. In a nutshell, it means making Kenya
mal sector as the solution to unemployment not just a middle income country in terms of
but as a potential engine of industrialisation GDP averages, but a middle class society in ev-
and growth: ery sense of the word.
9
Implementation Framework
K
enyans are rightfully skeptical of lofty in good time. For example, for the expansion
promises and seemingly well-crafted of coffee or avocado output in three years’,
plans that never get implemented. We seedlings have to be planted now. These con-
have developed this plan well aware siderations have led us to establish four time-
that it will stand or fall on the how question. frames as follows:
There are three tests that a good plan must
pass, namely prioritisation, sequencing and • Quick wins. These are interventions that
financing. will have economic impact within six
months. Examples include dairy and sea-
Prioritisation sonal crops and resolution of pending bills
Prioritisation is critical because resources are • Short term. These are interventions that
scarce but also because we do not have the will deliver impact within 6 - 18 months.
capacity to do everything at once. Limited Examples include establishing feedlots
resources means that we must chose, but for cattle and rehabilitation of crops such
choosing one person’s preferences over an- as coffee and cashew nuts.
other can create winners and losers, thereby • Medium term. These are interventions
undermining the goodwill needed to have ev- that will deliver impact between 18 - 36
eryone pulling in the same direction. Far too months. Examples include housing pro-
often, this dilemma is resolved by trying to grammes, Universal Health Care (UHC),
be all things to all people, and spreading re- coffee, fruit and nut trees.
sources so thinly across too many things that • Long term. These are interventions whose
none is adequately resourced. It is, therefore, impact is expected to be felt between 3
imperative that transparent objective criteria and 5 years and beyond, but need to be
are used, and everyone is able to see what is started in good time.
in it for them.
Financing Principles and Framework
The priorities in this plan have been chosen Fiscal consolidation. The plan must be fi-
based on the impact on six objectives which, nanced within a budget deficit target of 3
in our view, hit the most birds with the few- per cent by financial year 2026/27. This will
est stones, namely, bringing down the cost be achieved by (a) Ensuring that revenue pro-
of living, eradicating hunger, creating jobs, jection will not exceed the average growth
expanding the tax base, improving our for- in preceding three years and expenditure
eign exchange balance and inclusive growth. growth capped at 75 per cent of the revenue
These criteria led us to five sectors that form growth rate, and (b) Budget neutrality. For
the core pillars of this plan. These are: new programmes to be financed, the resourc-
es must be released by another programme
1. Agriculture or project that is either completed or closed.
2. Micro, Small and Medium Enter-
Infrastructure Fund/Bank. An infrastructure
prise (MSME) economy
fund will be established with initial capital-
3. Housing and Settlement isation from privatisation proceeds, with a
4. Healthcare view to progressively reducing the financing
5. Digital Superhighway and Creative of commercially viable infrastructure projects
Economy from the budget.
Prioritisation is critical
because resources are scarce
and also because we do not
have the capacity to do
everything at once
11
Agricultural
Transformation and
Inclusive Growth
Agriculture
A
griculture is the largest sector of the econ- a dairy herd estimated at 2.2 million lactating
omy, contributing half of Kenya’s GDP, a cows in Kenya, an increase in average pro-
quarter directly and another quarter in- ductivity by 0.5kg per cow translates to 401
directly. Two-thirds of Kenyans derive either million kilogrammes of milk with a farm gate
all or part of their incomes from agriculture. value of Sh16 billion at Sh40 a kilogramme.
Agriculture thus remains the foundation of We have estimated that provision of Sh4,000
the economy. Many of the challenges that we per cow, a total of Sh8.8 billion would be suf-
are experiencing can be traced to agriculture, ficient working capital for our dairy farmers.
either directly or indirectly.
Cost of living. The cost of living that we are
At a time when the price of unga (maize flour) experiencing can only be resolved by raising
has hit an unprecedented Sh230, the role of agricultural productivity. The battle is be-
agriculture to the cost of living need not be tween farmers needing higher incomes and
belaboured. Food accounts for 54 per cent of consumers who want low prices. Maize is a
household expenditures, but the poor spend good example: Planting an acre at a cost of
60 per cent or more. Agricultural productiv- Sh5000 and producing 10 bags equates to a
ity has not kept up with population growth, cost of Sh500 a bag, while producing 25 bags
resulting in higher dependence on food im- equates to a cost of Sh200 a bag. So the high-
ports. Over the last decade, food imports er the number of bags produced an acre, the
have increased from 10 to 17 per cent. This, lower the cost of production.
in turn, has increased our exposure to global
price shocks. A farmer may see the cost of diesel as the
main challenge while, in fact, the problem is
The case for investing in agriculture, as the low productivity. The same applies to fixed
sector that will lead the economic recovery, is costs such as labour, since weeding an acre
predicated on seven factors. that yields 10-bag or 25-bag crop takes the
same amount of labour. By enhancing pro-
Quick turnaround. First, agriculture offers ductivity through access to affordable inputs,
the quickest payback period for investments. including fertiliser and certified seeds, the
This is because, in many cases, there is no farmer will earn more and subsequently re-
new capital investment required. Increasing duce the six million bags imported annually
production only requires addressing the cost, and lower the cost to the consumer.
quality and availability of inputs (animal feeds,
seeds, fertilisers, pesticides etc) and provid-
ing farmers with the working capital to buy
Cost of living. Food accounts for 54
adequate supply of the inputs as well as other
direct production expenses such as ploughing
per cent of household expenditures
of land and labour. but poor households spend more than
60 per cent. Agriculture has the high-
Consider the case of the dairy sector. The big- est employment multiplier effect i.e.
gest challenge that farmers face is the cost of agricutural growth creates more jobs
animal feeds. We know that nutrition impacts in other sectors than any other, owing
on milk production in a matter of weeks. With to its strong forward and backward
linkages to other sectors of the
economy.
13
Foreign exchange: As noted, our depen-
dence on food imports has grown consid-
erably in recent years. Edible oils, palm oil
primarily, is our second largest import after
petroleum, on which we are spending Sh60
billion a year before the recent price surge,
which pushed the import bill to over Sh90 bil-
lion. Our rice deficit is about 600,000MT, cost-
ing Sh25 billion about the same as our coffee
export earnings. Three food commodities --
edible oils, wheat and rice -- are consuming
an equivalent of 25 per cent of our goods’
export earnings. We have the capacity to pro-
duce a bigger share of our consumption of
edible oils and rice competitively.
15
Transforming the Micro, Small and Medium
Enterprise (MSME) Economy
The MSME economy contributes 85 per cent of non-farm jobs
which today translates to 15 million out of 18 million workforce.
Presently, it is absorbing nine out of 10 of the young people join-
ing the workforce, 750,000 on average, while the formal wage cor-
porate economy barely absorbs 50,000. KNBS data shows that
when properly established, MSMEs contribute very significantly
to the economy, generating an operating surplus a worker of over
Sh50,000 a month, adding up to Sh600,000 a year. However, an
estimated 10 million informal MSME operators and workers gener-
ate less than Sh5,000 income a month on average, which is below
the living wage for one person. This is a reflection of the hostile
environment that they operate in, criminalisation of their enterpris-
es (e.g., hawkers), as well as disguised unemployment. These 10
million people, who represent half of Kenya’s workforce, are the
country’s most underutilised resource. Our estimates show that if
these workers were as productive as those in established SMEs,
they would be generating Sh6 trillion a year, which is 60 per cent of
GDP i.e., the economy would be 60 per cent larger.
Financial Commitment
Sh250 billion FY2022/23 - FY2026/27
Urban housing.
H
ousing is enshrined in our Constitution as The Kenya Kwanza Commitment
one of the basic social and economic rights.
It is the right to “accessible and adequate The Kenya Kwanza housing commitment is to
housing, and to reasonable standards of turn the housing challenge into an economic op-
sanitation” (Art. 43(b)). The requirement for new portunity. Next to agriculture, we see housing
urban housing is estimated at 250,000 units a production as the sector that will create quality
year, against a production of 50,000 units, trans- jobs for the 100,000 or so young people gradu-
lating to a deficit of 200,000 units. The cumula- ating from TVETs every year directly in the con-
tive deficit is estimated at two million units. As a struction sector and indirectly through the pro-
result, more than 60 per cent of urban Kenyans duction of building products. We will:
live in slums and other low-quality housing with-
out adequate sanitation, undermining their dig- • Increase supply of new housing to 250,000 per
nity and exposing them to health hazards. This annum and per centage of affordable housing
is also a reflection of the bias towards upper in- supply from 2 per cent to 50 per cent. We will
come housing. Of the 50,000 units built every achieve this by structuring affordable long-term
year, only 2 per cent (1,000 units) are classified as housing finance schemes, including a National
affordable housing. Moreover, our rapid urbani- Housing Fund and Cooperative Social Housing
sation rate at 4.4 per cent, equivalent to 500,000 Schemes, that will guarantee off take of houses
new city dwellers a year, means that housing sup- from developers;
ply is a moving target. • Grow the number of mortgages from 30,000
to 1,000,000 by enabling low-cost mortgages of
Sh10,000 and below;
• Strengthen Jua Kali industry capacity to pro-
duce high quality construction productions;
• Give developers incentives to build more af-
fordable housing.
19
Rural housing and settlement
The right to housing as enshrined in the constitu-
Kenya Kwanza Commitment
tion is not limited to urban settlements. Indeed,
• Kenya Kwanza commits to establish a Settlement
the vast majority of Kenyans live in their own ru-
Fund similar to the one that was used to acquire
ral homes. That said, rural Kenya also has its fair
land from settler farmers after independence;
share of land and settlement challenges, including
• To stop land fragmentation, the land purchased
landlessness, insecure land tenure, notably the his-
by the scheme will be subject to land use planning
torical squatter problem in the Coast region. Pop-
where beneficiaries will own transferable residen-
ulation pressure on land resources is manifested by
tial plots in planned settlement, and right to lease
fragmentation, encroachment of forests and oth-
non-transferable agricultural land.
er ecologically sensitive areas and human-wildlife
conflict.
21
Healthcare
A
good healthcare system is something all coun- ulation in 2003 to 20 per cent in 2018. That said,
tries struggle to achieve. The Covid19 pan- the penetration is uneven with Nairobi at over 40
demic has demonstrated how important this per cent, while Wajir is still below 1 per cent. This
is, and also shown that even wealthy coun- increase in contributions was achieved partly by in-
tries can be badly exposed by health emergencies. creased enrolment and partly by change of contri-
One of the lessons from the Covid19 crisis is that, bution structure from a flat rate of Sh300 a month
although resources matter, the qualitative aspects to a graduated contribution ranging from Sh150 to
of the system matter more for health outcomes. Sh1,700 a person.
Our country is moving in the right direction, but But the NHIF still falls far short of the social health
we need to be more creative, deliberate and am- insurance scheme that it ought to be, both in its
bitious in how we use the substantial resources design as well as operational performance. These
spent on healthcare to address old and emerging shortcomings include:
challenges. We need to build on the momentum
of recovery from the Covid 19 pandemic to build • NHIF is primarily designed to be funded by stat-
back better, for we know not when the next health utory payroll deductions from employees in the
emergency will hit. Of particular concern is the formal wage economy. As observed earlier in
growing burden of non-communicable diseases this manifesto, this number is only 15 per cent
such as cancers, heart disease and diabetes-relat- of Kenya’s workforce. While NHIF has sought to
ed complications that, if not addressed urgently, expand coverage to the vast majority who are
will become a threat not only to health but also self-employed through voluntary enrolment, this
to the socio-economic wellbeing of the coun- has come with challenges notably intermittent
try. Presently, 36 per cent of Kenyans are at risk payments of people typically enrolling when
of being impoverished by the financial burden of they are unwell. This is a systemic problem of
catastrophic illness. There is also the question of insurance known as adverse selection. The stat-
financing programmes that are currently heavily utory payroll system is also inequitable because
donor-dependent and yet not properly planned deduction is on individuals while benefits accrue
for transition to domestic financing even as donors to households. Thus households with one payroll
make plans to transition out. The HIV, TB, malaria, worker and those with two or more receive the
family planning, immunisation, and nutrition pro- same benefits even though they contribute dif-
grammes are key donor-funded and the gains al- ferent amounts.
ready realised must be guarded jealously. • Shift towards curative at the expense of pre-
ventive care, with the share of inpatient expen-
The most recent assessment shows that our total diture increasing from 23 per cent to 29 per
health expenditure (THE) stands at Sh550 billion cent over the last decade (2010 - 2020), while
a year, financed by government (63 per cent), by the preventive care spending declining from
households “out of pocket” (27 per cent) and the 24 to 12 per cent. The shift from cheap to ex-
balance of 10 per cent also financed by households pensive is a systemic problem with insurance
through insurance schemes. The out-of-pocket financed healthcare systems.
share translates to Sh150 billion per year, which is • Fragmented overlapping schemes within the
a big burden to households. This is the reason that NHIF, for example, Linda Mama, civil servants
one in three families is at risk of falling into poverty scheme, school children and elderly support,
because of the financial burden of catastrophic ill- undermine the principle and benefits of the
ness. The number is growing daily as the non-com- widest possible risk pooling that a social health
municable disease burden grows. insurance scheme is supposed to provide.
• The operational capacity has not grown in tan-
Over the last decade, considerable progress made dem with the enrolment, leading to inefficiency,
in enrolling Kenyans in NHIF, has seen insurance high administrative costs, and poor responsive-
penetration double from 10 per cent of the pop- ness to its customers and service providers.
23
Healthcare
They have proposed a similar Health Service Com- families will get the same benefits. This is highly
mission that should also be entrenched in the Con- inequitable. We have proposed to change the con-
stitution. But county governments consider it very tribution to family/household, rather than individu-
important that the health professionals should be al, as is the case with private insurance.
accountable to them. Moreover, the centralised
system that preceded devolution was associated If the Sh150 million out-of-pocket payments were
with very inequitable distribution of health profes- converted into contributions to NHIF, each Ken-
sionals because they could influence their posting yan would have to contribute Sh3,000 a year, or
to favourable locations. Many of the historically Sh12,000 for each of the 12 million households.
marginalised counties did not have a single spe- To raise Sh200 billion required to cover both the
cialist. Both positions have merit. secondary and tertiary pillars works out to an av-
erage of Sh4,000 a person which totals Sh16,000
In fact, county governments acknowledge that they a household. Our preliminary analysis shows that
do not have the resources to sponsor doctors for a progressive contribution system can achieve the
further education, or money to pay both the doc- Sh200 billion requirement with contributions rang-
tor on study leave and the replacement. They also ing from Sh300 to Sh3,000 a household a month
acknowledge that the county health services need (Sh3,600 to Sh36,000 a year).
specialists. We, in Kenya Kwanza, believe that this
conundrum is solvable. What it requires is goodwill Enrolment
and honest mediators. Well will be that honest me- We recognise that even though enrolment to NHIF
diator. We pledge to work together with the health is now mandatory by law, there are practical chal-
workers and county governments to find a solution lenges of enrolling self-employed Kenyans who are
within the first 100 days of our administration. the majority. A number of initiatives will be de-
ployed to make enrolment easier for self-employ-
Community health is the bedrock of preventive ment Kenyans, including:
healthcare. Doctors estimate that 70 per cent of • Leveraging on the proposed Primary Health-
cases seen in our hospitals are preventable. It is care Funds as platforms for community-based
estimated that Sh1 invested in community health group schemes;
has a return of Sh9 saved in curative health costs. • Leverage on the Hustler Fund and farmer or-
Kenya Kwanza is committed to ensuring that our ganisation initiative to set up occupational
primary healthcare has, at the very bottom, a schemes for trades such as, boda boda and
well-resourced community health system. Con- market women saccos;
siquently, the Kenya Kwanza national government • Affordable and flexible premium financing
will contribute to the stipends paid to communi- schemes such as, contributions financed quar-
ty health workers by county governments on a terly in advance, while contributors repay the
matching basis. loans weekly or other interval aligned with
their income streams.
Health Information Technology
We will leverage on information technology to Governance
drive responsiveness, efficiency, seamlessness Insurance is a business built entirely on trust. For
between providers, transparency and fraud pre- the NHIF to fulfill the mandate of the social health
vention. We will procure, as soon as practically insurer we need, it must enjoy the confidence of
possible, a state-of-the-art health integrated infor- all its stakeholders, in particular contributors and
mation management system that will enable every health service providers that it serves directly. We
Kenyan to own and control access to their health recognise that at present, the NHIF falls consider-
records and provide them with all the informa- ably short. Kenya Kwanza is committed to imple-
tion they need to access health services on their menting the reforms required so as to build this
phones. trust as recommended by stakeholders. Consider-
ation will be given to unbundling the NHIF along
NHIF Reforms the lines of the pension fund system. This would
Contribution structure entail separation of the Fund management, claims,
We are aware of a new contribution structure ga- administration and regulatory functions.
zetted by the Treasury Cabinet Secretary. People
earning Sh100,000 will contribute 1.7 per cent
amounting to Sh1,700. Under this structure, a Financial Commitment
couple earning a combined Sh200,000 will be de- Budget neutral
ducted Sh40,800 a year while a single payer earn-
ing Sh100,000 will contribute Sh20,400. The two
25
Digital Superhighway & Creative Economy
K
enya has invested heavily in ICT infra- (ERP) system for all participants.
structure and services over the last two
decades. This infrastructure includes six Areas such as public procurement where dig-
submarine fiber-optic cables offering ital transformation could have delivered huge
broadband connectivity, 9000km of terrestrial gains are yet to be realised.
fiber-optic cable connecting virtually all coun-
ty headquarters, and geographical and popu- Kenya Kwanza commitment
lation mobile broadband coverage of 56 per • Universal broadband availability through-
cent of the 96 per cent respectively. out the country within five years. We shall
increase and fast-track broadband con-
Mobile telephone penetration and innovation nectivity across the country by construc-
has enabled Kenya to increase from a quar- tion of 100,000km of national fibre optic
ter to over 80 per cent of the population in connectivity network;
less than two decades, making Kenya one of • Enhance government service delivery
the world’s leading users of mobile payments. through digitisation and automation of all
The Covid 19 crisis demonstrated just how government critical processes and make
critical digital penetration is in terms of busi- available 80 per cent of government ser-
ness continuity, as it enabled many essential vices online;
services to proceed with minimum interrup- • Establish Africa Regional Hub and promote
tion during the lockdowns. development of software for export;
• The implementation of the Digital Master
Still, important economic benefits expected Plan will adhere to environmental agree-
have yet to materialise. Notably, there was ments in which Kenya is a signatory;
high hope that the business process outsourc-
• Reduce the cost of calls and data to allow
ing (BPO) industry would become a leading ex-
wananchi, and especially the youth, to
port and job creating sector. Kenya was ranked
use online platforms for entertainment,
together with The Philippines, which exports
information and business;
$30 billion and employs an estimated 1.3 mil-
lion people. The industry has yet to take off. • Establish a Presidential Advisory Coun-
The Konza Technopolis has been in the works cil on Science and Technology Policy
for two decades and seems no closer to becom- that will ensure a whole of government
ing a reality than it was a decade ago. approach to technological development
and use and build necessary capacities
The digital superhighway will also play a crit- across government;
ical role in enabling us to make tremendous • The administration will strengthen Konza
achievement in the other four pillars of Health, Technopolis to bring together industry,
Agriculture, MSME and Financing as well in academic institutions and other innova-
enhancing revenue collection via automation tors to co-invest in emerging technolo-
of VAT systems. It will ameliorate challenges gies to create high-quality jobs that lever-
related to information asymmetry in market age on artificial intelligence, robotics and
access and risk management. It also comes in other technologies and thus enhance our
handy in minimising barriers to entry for new regional and global competitiveness.
financial providers that are critical in down-
scaling access to the Hustler Fund via Gov- Financial Commitment
ernment risk mitigation mechanism through Sh40 billion (to be financed by the Universal
provision of Enterprise Resource Planning Service Fund).
27
Infrastructure
Infrastructure
Water
W
ater is a constitutional right (Article 43), important infrastructure. The Government
and the most important enabler of agri- has pursued an ambitious road building pro-
culture. Two-thirds of Kenya’s agricultur- gramme that has doubled our paved roads.
al land requires irrigation, against only 4 per This has been achieved by adopting the Low
cent that is irrigated. Irrigation is the single Volume Sealed Roads (LVSR) programme
most important game changer in agriculture. resulting in 6000km completed with anoth-
Current policy is centered on domestic use er 3800km under construction. Hitherto all
and large dams. paved roads were built to the standard irre-
spective of volume of traffic. The adoption of
The key issue is financing value for money. the LVSR standard has reduced cost of pav-
ing low traffic roads substantially. Be that as
Kenya Kwanza Commitment it may, the need for roads remains immense.
Kenya Kwanza is convinced that universal ac- One third of the country’s 63,575km of classi-
cess to safe water can be achieved by 2027. fied roads is in need of rehabilitation or recon-
This will be done by: struction. It is readily apparent that the finan-
• Shifting focus from large dams to house- cial constraints we face require very prudent
hold/community water projects, with em- use of resources.
phasis on harvesting and recycling;
• Where large reservoirs are viable, adopt Kenya Kwanza commitment
PPP model (using IPP model); • Complete all roads under construction;
• Using modern technologies on desalina- • Prioritise upgrading and maintenance of
tion, develop Turkana aquifers using PPP rural access roads as well as the improve-
model (potential to irrigate a million acres ment of roads infrastructure in urban in-
of land); formal settlement and critical national
• Deploy climate smart agriculture technol- and regional trunk roads that have the
ogies (micro-irrigation, precision irriga- highest immediate economic impact.
tion, hydro and aquaponic technologies).
Financial Commitment
Roads Sh200 billion (current MTEF commitment)
Roads are arguably our country’s most Securitization of Road Levy
29
Electricity power for domestic and even commercial
consumers. Transportation is going to be a
E
lectricity is a vital economic and social big consumer of electricity as electric vehicles
service critical to production, essential replace fossil fuel ones.
services such as health and security and
quality of life of citizens. While genera- Kenya Kwanza Commitment
tion capacity has increased considerably in
recent years, our electricity is expensive and Turn around Kenya Power. We will delink
unreliable. This ought not to be the case, giv- Government development initiatives, leav-
en that we are blessed with considerable geo- ing Kenya Power to operate on commercial
thermal, solar, wind and water resources that principles. A policy, regulatory and financing
can provide cheap environmentally friendly framework for off-grid community-owned de-
power. One of the key contributors to both velopment projects (mini and micro-grids) will
the cost and quality of power is the aging be instituted.
transmission and distribution network. The
investment required to upgrade the network Improve reliability, bring down the cost of
is considerable, more so in the difficult finan- electricity. We propose a three-point plan to
cial situation the country is in, but it is imper- bring down the cost of power namely;
ative. Cheap clean power can be a strong val- • Mobilise the resources needed to revamp
ue proposition for attracting energy-intensive the transmission and distribution net-
production for the global market in Kenya. work;
• Accelerate geothermal resources devel-
The current administration set out an ambi- opment;
tious electrification programme that aimed to • Develop Liquified Natural Gas (LNG) stor-
achieve universal access to electricity in the age facility in Mombasa, with a view to
shortest time possible. Much progress has phasing out heavy fuel oil (HFO) from the
been made with total electricity connections power generation portfolio. This will also
increasing from 3 million to over 8 million contribute to meeting Kenya’s emission
today. This rapid pace of connectivity was reduction commitments;
achieved primarily by changing the business • Enforce transparency and public account-
model of KPLC, which hitherto required new ability of the electricity sector. Require
customers to pay a hefty deposit that many the Energy Regulatory Commission (ERC)
people could not afford. As a result, many to publish quarterly system, financial and
transformers had a lot of excess capacity. The operational performance reports.
Last Mile Connectivity programme changed
this to connecting people first and recovering
the connection charges from the customer’s
monthly bills. The connectivity drive has come
with some challenges. Consumption has not
risen as expected, while the operational costs
have increased, and this has affected Kenya
Power’s financial performance. Partly as a
result of these challenges, Kenya Power’s re-
sponsiveness to consumers has deteriorated.
31
Manufacturing
O
ur manufacturing sector is headed in impede the growth of our manufacturing in
the wrong direction. At a time when we a deliberate manner. The value chains high-
should be industrialising, the manufac- lighted below are examples of this approach
turing share of the economy is declin- and are, by no means, the only ones. Other
ing. It has fallen from 9.3 per cent to 7.6 per value chains elsewhere in this manifesto in-
cent in five years (2016-2020). Paradoxically, clude edible oil processing, dairy, electric mo-
manufacturing has borne the brunt of the in- tocycle/vehicle and plastic waste.
frastructure investment drive that is meant to
spur industrialisation in crowding out from the Leather. Kenya has a big potential to devel-
credit market by government, and lately, by op its leather sector. Currently it is a Sh15 bil-
the external debt service pressure on foreign lion industry creating 17,000 jobs (7,000 for-
exchange that has seen the government resort mal, 10,000 informal), while it is potentially a
to rationing foreign exchange for the first time Sh120 billion industry that can create 100,000
since the market was liberalised in 1993. jobs. But the key challenges are low recovery
and poor quality of hides and skins, and lack
Kenya Kwanza is committed to help our man- of skills. Hides recovery and quality improve-
ufacturers weather this storm. Our economic ment can be addressed through the provision
turn-around strategy outlined in this manifes- of feedlot. We can leverage on public pro-
to is meant to put the challenges behind us as curement to build capacity. There is a poten-
quickly as possible. tial market in uniformed services and schools.
Therefore, Kenya Kwanza commits to set up
That said, we need to have an honest conver- leather industry clusters in Athi River, Narok,
sation about our manufacturing industry. As Isiolo and Wajir and secure linkages with and
highlighted earlier on in this manifesto, it is technical support from overseas markets.
inordinately capital intensive and falls short in
job creation. This is a reflection of both histo- Building products. They are already one of
ry, that is, legacy of import substitution indus- Kenya’s leading manufactured exports to
trialisation policies of the 1960s and 1970s as neighbouring countries (mabati, building
well as geography, namely, landlocked hinter- steel, etc). There is potential to leverage on
land countries that have provided a captive housing programmes to scale up and broaden
market for capital intensive manufactured the range of products. Establishing standards
products based on imported raw materials. will enable Jua Kali to produce mass fittings
such as, windows and doors.
Kenya Kwanza is confident that transforma-
tion of our manufacturing, through bottom Pharmaceuticals and medical supplies: Phar-
up, is a win for the industry, for the people maceuticals and consumable medical supplies
and for the government. The value chain ap- account for an estimated 20 per cent of total
proach that we have adopted enables us to health expenditures currently at Sh550 billion,
analyse our economy from a competitiveness which translates to a domestic market worth
angle and to address the bottlenecks that Sh110 billion. Pharmaceutical imports in 2020
33
were at Sh76 billion (70 per cent of the Sh110 km, 13 times that of Kenya (94 people/sq.km).
billion estimated market), meaning that when Bangladesh also has high agricultural produc-
other imported supplies are factored in, do- tivity which makes food cheap and, in effect,
mestic production is less than 20 per cent. low cost of living, hence Bangladeshi workers
Domestic pharmaceutical manufacturers have spend much less on food than in Kenya. This
the capacity to manufacture bigger share applies to South Asia generally, as well as the
competitively, but are hampered by high cost Asian Tigers in the 1960s and 1970s. But this
of doing business and a punitive tax regime is not the only model.
(to the extent of shifting manufacturing to
neighbouring EAC countries and exporting to Turkey with a minimum wage of $500
Kenya). (Sh60,000) before currency collapse, is also
globally competitive with exports of $12
Kenya Kwanza Commitment billion a year. The difference is that the Ban-
• Work with the pharmaceutical industry to gladeshi industry serves mass market gener-
address the tax regime and cost of doing ic garments, while Turkey specialises in the
business; fashion industry. Kenya is stuck between the
• Leverage on UHC to identify and scale up two: Wages are too high for the mass mar-
manufacturing of essential supplies we ket, and industry is not sophisticated enough
can do competitively; for the fashion market. The original terms of
• Leverage on our human per capita to African Growth and Opportunity Act (AGOA)
work towards a regional pharmaceutical required Kenya to integrate the garment ex-
manufacturing hub. port industry backwards, that is, to use lo-
cally manufactured textiles made with locally
Garments and textiles: This is a huge entry grown cotton. To date, Kenya has been un-
industry for export-led industrialisation that able to meet its quota. The industry is still im-
has propelled South East Asia. We have pur- porting over 90 per cent of the raw materials
sued this strategy since the early 1990s, with from Asia.
limited success. Although garment exports
are now our third largest component at Sh60 Since raw material, primarily fabric and yarn,
billion and employing 50,000 people, it pales is two-thirds of cost/value, current export lev-
in significance compared to Bangladesh’s el translates to a $300 million (Sh300 billion)
Sh4.2 trillion exports and employing 4 million market. If we are to meet this market, sim-
people, and accounting for over 90 per cent plistic interventions such as banning mitumba
of exports. Notably, the Bangladeshi industry (second-hand clothes) will not solve the prob-
is less than a decade older than ours. The dif- lem. We must be able to produce and convert
ference is the cost of labour. Shop floor wage cotton into fabric competitively. Much hope
in Bangladesh is $80 (Sh9600 a month), while is pegged on BT cotton. Pilot projects over
ours is more than double, even though pro- the last two years show good results with irri-
ductivity is the same output per worker at gation, but high vulnerability to drought. The
$10,000 (Sh1.2 million) a year. This is partly Kenya Kwanza government will work with the
because of the comparative advantage. Ban- apparel export industry to develop a viable
gladesh is labour rich/resource poor, with a cotton raw material supply chain.
population density of 1,265 people per sq.
35
The Services Economy
Financial Services which receive between two and three million
visitors a year respectively. Outside Africa,
H
igh level of financial inclusion driven Kenya’s global positioning and reputation
by M-Pesa has become a double-edged may be compared to Thailand. Ten per cent
sword for enabling predatory lending by smaller than Kenya, and more densely popu-
“Fintechs”. Other challenges facing finan- lated (70 million people), Thailand receives 40
cial services include lack of formal credit at the million tourists a year.
bottom of the pyramid (in part because of Cred-
it Reference Bureau (CRB) listing by predatory What is the challenge? The main reason why
lenders), crowding out credit for the private Kenya’s tourism is so far below potential
sector by the government. The brunt is borne is because of our focus on exclusive “high
by MSMEs due to failure of deposit taking mi- end” tourism which makes it an expensive
crofinance banks to reach those at the bottom destination. To illustrate this, “5 star” hotels
of the pyramid as it was intended. and game lodges will typically cost $50,000
(Sh6 million) a room in investment. In effect,
Kenya Kwanza Commitment a 100-room hotel operating at an average
of 40 per cent capacity and assuming 15 per
• Deploy a credible macroeconomic frame- cent cost of capital would need to charge $50
work and growth strategy to strengthen (Sh6000) a room a night just to cover the cost
external creditworthiness, enabling gov- of capital. It would mean charging at least $80
ernment to borrow cheaply externally (Sh9,600) to break even. Combined with the
and end crowding out of private sector fact that Kenya is a long-haul destination from
from the domestic credit market; source, these prices put Kenya out of reach
• Leverage on Kenya’s well advanced SAC- of most budget travellers. Yet tourists don’t
CO system to develop a tier three finan- come to Kenya to enjoy hotel rooms. Kenya is
cial system that will facilitate disburse- now increasingly famous for exclusive estab-
ment of affordable credit through the lishments that host five to 10 guests or less
Hustler Fund to cushion those affected and charge upwards of $3,000 (Sh360,000) a
by the current predatory lending interest night, of which very little trickles down to the
rates e.g. market traders, boda boda; economy. In this sense, tourism is our ulti-
• Develop and deploy a robust financial mate trickle-down industry.
services consumer protection policy and
legal framework that will protect Kenyans We have to decide whether we want our tour-
from predatory lenders. ism industry to make huge profits for a few or
jobs for the many. Kenya Kwanza votes for a
Tourism bottom up job-creating tourism industry.
Tourism is a historically important sector for
the economy, in terms of foreign exchange Kenya Kwanza Commitment
earnings. However, it is a sector in which • Nurture a tourism ecosystem that supports
Kenya punches below its weight. The coun- independent travel particularly for young
try’s reputation, as one of the world’s pre- people, including quality and secure bud-
mier tourism destinations compared to other get hotels and bed and breakfast facilities,
countries with a similar international profile, is affordable budget air travel to all parts of
not reflected in its contribution to the econo- the country and safe road travel;
my in terms of visitor numbers and growth of • Diversify Kenya’s tourism by promoting
GDP. In Africa, using 2018 data, Kenya was niche market products, notably adven-
ranked ninth with 1.9 million visitors a year ture, sport and cultural tourism;
behind Egypt, Morrocco, South Africa and Tu- • Diversify source markets to include Afri-
nisia with over 8 million visitors, while Cote can markets.
d’Ivoire, Mozambique, Zimbabwe and Algeria
37
Sports
W
e are a sporting nation. A look at the
Olympics medals table will confirm that
unequivocally. Sports is one domain that
Kenya punches well above its weight.
Kenya is an international giant in middle and long
distance athletics and 7s rugby, but we also fea-
ture in a wide range of sports, including football,
volleyball, swimming, golf, motorsport, tennis, cy-
cling, shooting, archery and cricket, among others.
39
40 THE PLAN The Bottom Up Economic Transformation Agenda 2022 - 2027
Environment &
Climate Change
41
I
nforming the environment and climate er farmers, particularly the poorer ones in the
change agenda is a commitment to reduce regions with most land (such as Kitui and Tana
emissions by 32 per cent by 2030. Key is- River counties). Financial instruments that can
sues include climate change, impact miti- make farmers become outgrowers, while at
gation, adaptation and resilience. The con- the same time securitizing their investment
stitutional mandate to ensure at least 10 per are available. What is needed is a policy and
cent land area forest cover calls for ecological regulatory framework to attract climate fi-
sustainable development. Kenya Kwanza will nance funds into such ventures.
adopt a Bottom up 3P solutions (people, plan-
et, profit). The priority value chains include: Kenya Kwanza Commitment
Biomass energy (wood fuel), agro-Forestry Establish 5 million acres (20,000 km2) agro
and solid waste management. forestry woodlots in drylands
45
Education of learners in secondary schools are in day
schools, while only 28 per cent are in board-
Education is the ultimate means of ensuring an ing schools;
equitable society. Equitable education ensures • Establish a National Skill and Funding Coun-
that every child has a chance to fulfil their poten- cil that amalgamates HELB, TVET and Uni-
tial and rise to the highest level of accomplish- versity Funding Board and increase funding
ment, irrespective of their social background. to bridge the current 45 per cent gap;
Conversely, an inequitable education system, • Build a fully equipped Technical Training
which favours those from socially and economi- and Vocational Education Training Institu-
cally advantaged backgrounds, is the surest way tion (TVET) in the remaining 52 constituen-
of maintaining or developing a class society. cies within the first two years;
• Set up a National Open University to in-
Universal primary education was achieved crease access and reduce the cost of uni-
through Free Primary Education (FPE) in 2003, versity education while making 100 per cent
but education outcomes remain highly inequi- transition to higher education a reality;
table. Considerable progress has been made • Establish a one-year paid National Intern-
towards universal secondary education, but ship Programme for all students graduating
the current tiered system places the better-re- from teachers, technical and medical col-
sourced national schools out of the poor’s reach. leges and universities, by collaborating with
The cost of joining a boarding secondary school industry players;
is now Sh80,000 which is expensive for ordinary • Increase funding for research and develop-
working Kenyans. ment from the current 0.8 per cent to 2 per
cent of GDP in accordance with the Science
While bursaries mitigate some of this bias, they and Technology Innovation (ST&I) Act 2013
are far from adequate. Distress calls for and he- as per the bottom-up economic agenda.
roic acts of determination by bright children, Additionally, incentivise the private sector
who are unable to take up their places in such to contribute towards research;.
high schools, has become the norm. Earlier this
year, a girl in Tharaka Nithi County made news
by walking 50km to the school she had been ad-
mitted to. In neighboring Embu, a boy sought to
pay his school fees with a cockerel!
47
Women Agenda
49
50 THE PLAN The Bottom Up Economic Transformation Agenda 2022 - 2027
51
Social Protection
53
Vulnerable Senior Citizens Kenya Kwanza Commitment
Kenya has about 1.8 million people over 65 • Achieve 100 per cent NHIF coverage for se-
years of age in a population of 55.6 million. nior citizens within three years;
They represent 3.8 per cent of the total popula- • Revamp the cash transfer programmes for
tion. There are slightly more men than women. elderly and vulnerable households to im-
About 68 per cent of older people are between prove operational efficiency, prompt pay-
the age of 65 and 75. This population continues ment accountability and coverage;
to grapple with lack of income, security, inade- • Invest in education and training for caregivers
quate health services, lack of employment and and medical staff to fill the gap of skills in the
a deteriorating environment. provision of specialised care for older people.
People Living With Disability abilities to start interacting with the gen-
4.6 per cent of Kenyans experience some form eral public at an early age to restore their
of disability; More disabled persons live in rural confidence and self-esteem;
(2.6 per cent or 700,000) than in urban areas • Merge the National Fund for the Disabled of
(1.4 per cent or 200,000); 15 per cent of PWDs Kenya (NFDK) with National Council for Per-
are likely to be affected by environmental fac- sons with Disabilities (NCPWD) and ensure
tors on a daily basis; 65 per cent of PWDs re- parliamentary oversight for accountability;
gard the environment as major problem in their • Increase capitation of pupils with disabilities by
daily lives; A quarter of PWDs work in family 50 per cent. Set aside 15 per cent of all pub-
businesses, but a third do not work at all. lic-funded bursaries for pupils with disabilities;
• Ring fence adequate per centage of the
Inclusion in society and employment opportu- Hustler Fund for PWDs;
nities for people with disabilities requires im- • 5 per cent of all market stalls to be allocat-
proved access to basic education, vocational ed to PWDs;
training relevant to labour market needs and • 5 per cent of AGPO will be reserved for
jobs suited to their skills, interests and abilities, PWDs with an increase in LPO financing;
with adaptations as needed • Encourage counties to waive licences and
fees of new businesses established by PWDs;
Kenya Kwanza Commitment • Exempt all assistive devices from import
• Ensure 100 per cent NHIF coverage for duty and explore possibilities of partner-
PWDs within 18 months; ship with domestic manufacturers to pro-
• Integrate schools to allow children with dis- duce affordable devices.
A
lthough the government has made prog- on the ballot is between going forward and im-
ress in implementing the 2010 Constitution, plementing it fully, or going backwards along
more work still needs to be done. Many of the lines of the 70-odd Building Bridges Initiative
its provisions have not been implemented, (BBI) amendments.
and some people in positions of authority have
abused it for personal gain and to the detriment We are for completing the implementation of
of those it is meant to protect. the Constitution, strengthening the rule of law,
increasing access to justice, ensuring respect for
The Kenya Kwanza Alliance believes that the human rights and respecting the United Nations
Constitution is an important issue on the ballot Sustainable Development Goal Number 16 on
in this election. Specifically, the choice we have peace, justice and strong institutions.
• Equipping the Attorney-General’s office with • Ending the weaponisation and politicisation of the
the resources and ability it needs to safeguard anti-corruption efforts by allowing the relevant
the public interest in court, legislating, nego- institutions to freely exercise the independence
tiating international agreements, and signing given to them by the Constitution;
of contracts. By doing so, the government will • Granting financial independence to the Eth-
avoid needless litigation and costly fines; ics and Anti-Corruption Commission (EACC)
• Bolstering the financial and technical capa- and the police to end their reliance on the
bilities as well as the independence of all in- Office of the President;
dependent (Chapter 15) institutions to make • Entrenching the independence of the Judicia-
sure they are capable of defending the na- ry by operationalising the Judiciary Fund;
tional interest and the people’s sovereignty; • Promoting accountability and openness in
• Institutionalising human rights-based ap- the management of public affairs, institution-
proaches to Counter-Terrorism (CT), includ- alising open governance in all State organs
ing strengthening the Special CT Courts to and agencies, and publishing an annual State
ensure speedy and fair trials; of Openness Report;
• Strengthening the Office of the Registrar of Po- • Appointing all judges nominated by the Judi-
litical Parties (ORPP) by opening county offices; cial Service Commission (JSC) to the Court of
Appeal within seven days.
57
Governance
59
Governance
Strengthening Devolution
• Complete transfer of all functions consti- tional government;
tutionally earmarked to counties within • Ensure that shareable revenue is transferred
six months; to counties in a timely and predictable man-
• Develop a framework for ensuring that ner and in accordance with the law;
State-owned firms carrying out devolved or • Transfer funds owed to the beneficiary
shared functions adhere to the principles of counties and communities under the Min-
governance and ensure that the principle ing Act 2016 and the Petroleum Act 2019
of funding-follows-functions is adhered to within six months, and work with county
with respect to all devolved functions; governments to increase the capacity of
• Improve county governments’ capacity the communities to benefit from extractive
to generate their own income and reduce resources.
their over-reliance on transfers from the na-
A
s government is increasingly called upon to address complex challenges, the need for lead-
ers, managers, technical experts and front-line workers in the right jobs, with the right skills
and at the right time has never been greater. Yet government continues to struggle to
build a public service that can meet the unique demands of our time due to laborious and
time-consuming hiring practices, limited salary flexibilities and promotion rules that value longev-
ity over expertise and performance. Public managers and employees are also struggling to adapt
to the rapidly changing nature of work. For all these reasons, we face a significant risk that many
public institutions will not have the capacity necessary to achieve their critical missions and pro-
vide services to the public.
Many public employees are of retirement age. As they leave the public service, the result can be a
major brain drain given that government struggles to quickly bring new talent on board. We are at
risk of losing a generation of younger Kenyans because of inadequate hiring systems and practices.
Similarly, the needs of government over the next five to 10 years will be different than that of today.
But the public sector does a poor job of continous training and developing its workforce. It also is too
resistant to bringing in outside talent, especially at senior levels. That said, the unique combination of
a public-spirited younger generation and a wave of retirements could provide government at all levels
with an opportunity to restructure their workforce to meet modern-day needs.
T
he security sector is critical to long-term sustainable development and poverty alleviation
by ensuring safe and fair systems to enable people to work and business to operate. Under-
development fuels crime and insecurity. Despite steps towards reform, many challenges still
exist in effective implementation of security sector reforms as is evident in continued cases of
political interference, poor leadership and dismal performance, corruption, excessive use of force
and torture, extrajudicial killings and a lack of effective oversight and accountability.
Critically, independent and fair policing is vital for the protection of human rights, particularly the
rights of the most vulnerable and the poor, who often suffer disproportionately from insecurity.
The Kenya Kwanza Alliance acknowledges that democratic policing and respect for the rule of law
are necessary to improve development by ensuring safe, secure and fair environments for people
to work, travel, invest, participate in national affairs and to enjoy their lives.
61
Foreign Policy &
Regional Integration
K
enya’s significance in world affairs is demonstrated by the fact that it is considered an an-
chor State in the Eastern African region. It hosts the only United Nations headquarters in
the Global South (United Nation Environmental Program and Habitat), serves as a hub for
international organisations, and is a key player in peace and security initiatives in the region.
The Kenya Kwanza government will ensure that the country is respected and valued abroad. It will
promote friendly relations with our neighbours, play a leading role in regional and pan-African af-
fairs, collaborate with our international partners, and uphold our commitment to the international
community.
63
Anchor State Global citizenship
Kenya Kwanza will strengthen Kenya’s role as an This entails supporting the work and decisions of
anchor State in regional, continental, and global international organisations that Kenya has joined
affairs. We will continue to lead efforts to advance or ratified. These include the African Union, the
regional stability and peace, aid global initiatives to East African Community and the UN and its affil-
counteract violent extremism and cooperate with iates. Our foreign policy will be global in scope,
other countries as a reliable ally or neighbour. but it will have a more pan-Africanist stance,
placing more focus on causes that improve the
Deploy robust, creative and engaging foreign welfare of Africans worldwide. We will not only
policy to raise Kenya’s profile as a regional anchor deepen our bonds with our long-standing inter-
State and amplify our partnership with the rest of national and bilateral partners, but also extend
the world, including Africa, China, US, Europe, our friendship to anyone with whom we share a
UK and India, among other partners. mutually beneficial relationship.
Diaspora
T
he Kenya Kwanza Alliance is alive to the fact that there are about three million Kenyans living
in various parts of the world and constitute Kenya’s diaspora community. This population
continues to form an integral part of the Kenyan economy and social fabric. Our government,
therefore, intends to engage the Kenyan Diaspora in a more constructive and productive
manner to unlock and unleash their full potential.