New laws set stage for economic takeoff

The New Constitution has ushered in a new economic era for the country.

The immediate payback of the new law is “economic confidence”, that will trigger an inflow of capital into the economy.

We still have two years of the current coalition government within which to consolidate the gains of the new constitution.

The expectations and hopes born out of the new constitution will definitely shape the presidency that comes after 2012.

That is why we need to trace the economic history of this country to see where we have succeeded and where we failed, so that we can apply lessons learned in selecting the right type of government to shape the country in future.

The First presidency defined Kenya as capitalist with agriculture and industry as key GDP movers.

To create human capacity, the country immediately embarked on creating a strong and professional public service that was unrivalled in the region.

A needs-based education system was prioritized and matched to meet the skills required in all sectors.

Agriculture was prioritized and institutions created to support extension services, marketing and value addition in all agricultural sectors (sugar, coffee, tea, dairy, beef, pork, cotton, maize, wheat, rice and pyrethrum ).

A strong co-operative movement was created to mobilize rural agricultural potential with financial back-up coming from institutions such as Agricultural Finance Corporation and the Co-Op Bank.

Quality agricultural inputs and equipment were supplied by Kenya Farmers Association.

Irrigation infrastructure was set up especially for rice and cotton production.

To complete the agricultural production chain, marketing boards were either created or strengthened to market and process agricultural produce.

Sugar factories, textile mills, creameries, beef and pork processing, cereals milling, tea and coffee processing, all became major employers.

Exports were generated thus strengthening the balance of payment.