Kenya’s private sector is the most vibrant and dynamic in the east African community according to the World Bank. In an article published in the Business Daily courtesy of Xinhua news agency, World Bank Lead Private Pector Development Specialist Ganesh Rasagam said that Kenya can comfortably produce the same goods that are currently imported and transform itself into the region’s manufacturing hub. “The EAC could therefore draw lessons from Kenya’s innovative private sector”, Rasagam said.
The country’s private sector is the engine of economic growth and contributes about 70 per cent to the Gross Domestic Product (GDP) of Kenya. Kenya now has a textile and garment industry, for example, that exports to the United States.
The government has been keen to partner with the private sector to spearhead development projects especially under the Public-Private Partnership (PPP) policy. Some of the projects that have already been rolled out under the PPP include;
• A US$ 166.00 million Private Sector Power Generation Support Project which aims to increase electricity generation through Independent Power Producers (IPP) in Kenya;
• A US$40 million Infrastructure Finance Public-Private Partnership Project, which aims to support Kenya to improve its business ‘enabling environment’ and generate bankable public-private partnership projects in transport, energy and other sectors that are critical to the transformation of the country from low to middle income status, a project approved by the World Bank.
The new initiatives it is believed will help increase private participation in Kenya’s infrastructure market across several sectors to support national economic growth and employment creation.
On the debit side, heavy bureaucracy and poor infrastructure have been cited as the major hurdles preventing Kenya from achieving her full potential.
JUBILEE GOVERNMENT COURTS THE PRIVATE SECTOR
Under its manifesto, the Jubilee government promised to partner with the private sector and to provide an enabling infrastructure by reducing business taxes, step up the ‘war’ against counterfeits, as well as reduce bureaucracy for business.
The Jubilee government also promised to promote the creation of a single east African market and grow the economy by between 7 – 10 per cent in the first two years. In its plan to develop the manufacturing industry, the government hopes to create 1 million new jobs each year as well.
If these promises can be put in action, the economic growth of the country will be accelerated. If…