Uhurunomics was first unveiled in 2009 when Mr Kenyatta served as the Finance minister and launched the Economic Stimulus Programme that was designed to lead Kenya out of the recession.
The ministry at the time deployed Sh22 billion to expand irrigation based agriculture, construction of fresh produce markets as well as social infrastructure spending.
This successful experiment resonates with the theories behind Keynesian economics that were first advanced by John Maynard Keynes.
Upon Mr Kenyatta’s ascension to the Presidency, economic policy shifted towards Chinese-inspired mega infrastructure projects.
Uhurunomics – the brand of economics pursued by President Uhuru Kenyatta - has been the subject of recent discussion. Does it have enough thrust to propel Kenya to the promised land of Vision 2030?
In its original form, Uhurunomics was first unveiled in 2009 when Mr Kenyatta served as the Finance minister and launched the Economic Stimulus Programme that was designed to lead Kenya out of the recession, occasioned largely by the post-election violence.
The ministry at the time deployed Sh22 billion was deployed to expand irrigation based agriculture, construction of fresh produce markets as well as social infrastructure spending on schools, health centres and roads. The results were immediate and the economy was well on its way to full recovery.
This successful experiment resonates with the theories behind Keynesian economics that were first advanced by John Maynard Keynes in his book ‘‘The General Theory of Employment, Interest and Money,’’ which is widely considered to be his magnum opus. In its simplest form, it argues for active government spending on infrastructure to generate aggregate demand which spurs the economy back to life. It is likely that it was during his student days at Amherst College that Mr Kenyatta was acquainted with this theory that is central to American economic thought.
Upon Mr Kenyatta’s ascension to the Presidency, economic policy shifted towards Chinese-inspired mega infrastructure projects. The Standard Gauge Railway, the flagship project of this new economic order, traverses the Northern Corridor with bold aspirations. The SGR is considered a game changer in transport, reducing time spent on travelling and moving goods.
However, the business community is offering a robust counter-narrative to this rosy picture and is pointing to the undeniable fact that more companies are pursuing massive staff layoffs and downsizing operations.
The financing conditions have certainly deteriorated and the overall money supply is contracting and choking business. And it doesn’t help that this is occurring at the same time as the longest ever doctors’ strike in the country’s history. Putting an end to the current slowdown will require bold innovative measures that will involve stimulating enterprise at the county level.
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