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Sunday, August 7, 2011

KENYA: NESC CALLS FOR FOCUS ON THE VISION OF THE COUNTRY

Kenya’s National Economic and Social Council (NESC) is considering ways to reduction of electricity charges; how to harness a proposed strategy on nuclear power development in Kenya; and making Nairobi an international financial services centre.


Master Joseph Butiti, of Kitale Technical Institute, demonstrates to Assistant
Minister for Higher Education Asman Kamama and Higher Education Secretary
Professor Hary Kaane how a jua Kali clothe washing machine operates.



The Council says improving performance in Agriculture, Manufacturing, Building and Construction, and Transport and Communication will accelerate economic growth in the country.

Kenya has been forecasting a higher growth in investment by the government and private businesses, projecting to curb inflation and increase in consumption.

However, inflation has been rising hitting a mark of 15.5 percent and consumer confidence sliding by 3 percent and the Kenya shilling weakening, hitting the lowest mark of Kshs 90 against the dollar.

To support agro processing and value addition in agriculture, the Council recommends that the Co-operative Bank and other banks should increase their lending to agricultural co-operatives to enable them invest in processing plants.

The Council which has 49 members, about half of whom are Cabinet Ministers and chaired by the President Mr Mwai kibaki and his alternating chair being the Right Honourable Prime Minister Mr Raila Odinga.

The rest of the members being local and international experts appointed on the basis of their expertise and experience in Government, industry, research, private sector and civil society also recommended that the implementation of the Economic Stimulus Package under the Office of the Deputy Prime Minister and Ministry of Finance Mr Uhuru Kenyatta be fast-tracked and preparation of guidelines for the non-deposit taking microfinance institutions be expedited in order to orient microfinance towards assisting small scale entrepreneurs.

The Council whose secretary is Mr Julius Muia says that security in the country is key to attracting foreign investments and lauded the government efforts in implementing an ambitious programme to reform the Police Force, including enhancing mobility and adoption of modern technology.

The Council says that the government has formally recognized remittances as a major source of financing, they recommended the finalisation and implementation of the Diaspora Policy to facilitate rapid growth of remittances.

National Value System to Support Vision 2030



Starehe Girls Centre, Girls receiving a present in behalf of the school during the DigiGirlz day


The Council urges that prosperity of Kenya is anchored in character development of its people thus the council highlights the importance of a National Values System for Kenya that will make Kenyans more patriotic, more caring of the country’s resources and of each other. The council is greatiful that national values has been captured in the new constitution.

Mr Muia says National Values are vital for an efficient, courteous, law-abiding society as envisaged in Vision 2030 and the constitution.

The secretary of Council which was established to provide high level advice to the Government of Kenya on new policies to promote economic growth and social development underscores the role of the media, education systems and institutions such as parliament in inculcating values.

The council says the family units plays a very important role in providing important foundations for better citizenry.

Strengthening the Manufacturing Sector in Kenya through Development of the Steel Industry

The Council notes that Kenya has substantial deposits of iron ore, coal and limestone yet it imports large quantities of steel products. Development of iron and steel industry in the country will help catalyze industrial growth and save the more than Kshs 60 billion Kenya spends annually on importation of steel products.

The council recommends that Government commits adequate resources to finalize ongoing studies on the coal and iron ore deposits in Kenya that are suitable for commercial exploitation.

Value Addition and Cluster Mapping


The Council strongly recommends on value addition in leather, pyrethrum, fish, coffee, cotton and nuts as well as appreciating the Government’s effort to support industrial clusters in the business process outsourcing (BPO) sector.


The Council notes that the Government had already acquired land at Malili to develop an integrated Technopolis which will encompass world class facilities including a convention centre, golf course, homes, hospitals and financial services. Plans are also underway to start BPO operations in the Sameer ICT Park off Mombasa Road before the Malili Technopolis becomes fully operational.

The Council says the ICT sector contributes more than 3 percent of the country's gross domestic product (GDP). This contribution is projected to reach 10 percent of the GDP by 2012 and 30 percent by 2017, thereby surpassing agriculture. The sector is already employing 8,500 people against the 2012 Vision 2030 target of 7,500.

The Council appreciated the progress made in fast-tracking value addition and stresses the need to establish a national coordination framework to mainstream value addition in government, private sector and development programmes. It also observes that Youth Polytechnics should be positioned as incubation centres in order to nurture their professionalism, talents and skills.

The Council emphasizes that liberalisation of the Pyrethrum sector should be accelerated in order to facilitate processing of Pyrethrum into finished chemical products.

Progress Report on Kenya Vision 2030 Flagship Projects

The Council which is expected to offer policy recommendations aimed at accelerating economic growth, social equity, employment creation and poverty reduction, says they employ a consultative and evidence-based process to arrive at its recommendations.

Mr Muia says they receive and discuss reports on the progress made in implementation of Vision 2030 flagship projects, in its meetings. Projects under implementation include: power generation and transmission, modern standard gauge railway, construction of major roads, fast tracking decongestion of Nairobi City, improvement and expansion of airports, land reform programmes, creation of Special Economic Zones and Malili Technopolis, regional financial centre, rehabilitation of national parks, constitutional review, electoral reforms, construction of new model schools, and rehabilitation and protection of indigenous forests in five water towers among others.

The Council has recommended fast-tracking the upgrading of Jomo Kenya International Airport to strengthen its competitiveness as the regional transportation hub. In recognition of the important role of the Ministry of Nairobi Metropolitan Development, the Council recommended that the Nairobi Metropolitan Bill be fast tracked to enable the Ministry enforce implementation of its various initiatives.

The Council stresses on the need for reforms in the City Council of Nairobi’s Inspectorate Department in order to inculcate professionalism and modern management methods such as those recommended for the Kenya Police.

The Council underscores the importance of harmonising development planning processes and structures with the central and devolved structures proposed in the draft constitution.

The council says availability of land is a major challenge in implementation of most of the Vision 2030 projects and recommended that the land bank initiative under the Ministry of Lands be fast-tracked.

The Council stresses the need for specific projects and programmes to address the problem of youth unemployment. It also emphasizes that projects targeting rural communities should be designed and communicated in order to empower and promote a sense of belonging in these important segments of our society.

Reduction of Electricity Costs to Industry and Proposed Strategy on Nuclear Power Development in Kenya

The council applauds Government efforts in addressing high electricity costs and in particular exploring the possibilities of using nuclear energy in Kenya. The Council says that a nuclear power programme is a major undertaking that requires careful planning, preparations, and investment in a sustainable infrastructure that provides legal, regulatory, technological, human and industrial support to ensure that the nuclear enterprise is used exclusively for peaceful purposes.

Making Nairobi an International Financial Services Centre

The Council is targeting to position Nairobi as an international and regional hub for alternative investments. The Council says Kenya has comparative advantage of skilled labour, direct flights to major global cities, and fastly-improving infrastructure. Besides, the country has a geographical location that is ideal for tourism which could attract decision-makers who are keen to mix business with pleasure.

The Council appreciates the Governments’ efforts towards making Nairobi a regional and international hub for financial, educational, medical and information services and calls for enactment of appropriate laws to support achievement and growth of the same.

The council appreciates government’s efforts to eliminate human encroachment on railway track reserves including critical infrastructures and way-leaves. It therefore recommends that efforts be scaled up in this area.



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