If Kenya doesn’t steady the ship, it will sink to the bottom of the pile
Kenya is the only nation in the Eastern Africa region that does not belong to the Least Developed Countries – a group of nations considered the poorest of the poor.
We have always fared better than our neighbours, especially in two areas: human assets index, which indicates the level of human capital; and the economic vulnerability index, which approximates structural vulnerability to external shocks.
It is on the strength of these two measures that we are considered a strong nation on the African continent and in the global South.
As a regional and continental powerhouse, Kenya has always been a trailblazer.
It’s first two presidents championed African socialism - a quintessentially African economic development paradigm, of Africans for Africa.
These leaders sought statehood whose socioeconomic development was guided by a set of national values, such as Harambee and the Nyayo philosophy of peace, love and unity.
ECONOMIC POLICY
They were keen in forging a proud Africa, a continent that was autonomous and self-reliant.
It is for this reason that they pursued import substitution as their primary economic policy.
They prioritised domestic industrial production along with high import tariffs with the aim of producing and consuming locally.
Signs abound however that Kenya is losing its standing among nations of the world.
Whereas progressive governments often engage their citizens for alternative pathways to sustainable development, Kenyan politicians, governors and senior government officials, shun consultations and expert opinion.
As a result, development priorities at county and national levels no longer follow known economic models, rationale, principles and strategies.
While our economy remains vibrant and growing, it’s no longer the largest in the region.
TRADE EFFICIENCY
Ethiopia’s strong multi-year performance has pushed it into the first position and Tanzania is projected to occupy the second slot in coming years.
Although miniscule in size, Rwanda enjoys the reputation of being one of Africa’s most efficient, versatile, transformative and least corrupt governments.
It is harsh, I know, but in many aspects, we seem to be competing with Burundi in the race to the bottom.
The Jubilee administration, along with the World Bank, UNCTAD and TradeMark East Africa, have prioritised trade facilitation and easing of cargo movement.
The One Stop Border Post Programme, which includes the simplification and automation of border processes, has helped address bottlenecks along transit routes.
DREAM BIG
That said, however, Mombasa’s position as the gateway to Eastern Africa is likely to be challenged by Dar-es-Salaam, where the Tanzanian government is investing heavily in expanding its capacity, improving network linkages and streamlining port operations.
Kenya must respond accordingly and preserve Mombasa’s domination. We must dream big and elevate our port to the superior levels of Durban, Dubai and the port of Djibouti.
Some rightfully question the value in the port of Lamu and see this as counterproductive. It could ultimately undermine, rather than strengthen Mombasa.
The forced transfer of port operations inland - to Nairobi and Naivasha – is perhaps what would create serious challenges to the region.
Moving functions such as clearing and warehousing – the very lifeblood of Mombasa – will unquestionably decimate jobs and livelihoods at the Coast. This could also complicate, rather than simplify cargo movement.
SUPPORT LOCAL INDUSTRIES
We must also reconsider our commitment to industrial development.
A few years ago, Kenya’s sugar industry was thriving, employing millions as farmers, factory workers and distributors.
Instead of building upon its strong foundation to expand our industrial productivity, ill-informed public policy decisions, incompetent and corrupt management ran mills into the ground.
Some acknowledge the existence of powerful forces that prevent the government from pursuing structural reforms that could revive the sector.
Stakeholders also point out that although the Webuye-based Panafrican Paper Mills faced formidable difficulties, timely government intervention could have helped avert a shutdown.
Yet, after years of failed government promises and half-hearted efforts, a bad situation became worse.
NATIONAL VALUES
The company folded and its assets were auctioned off to a local investor who had no demonstrable intention of reviving the mill.
Panpaper will ultimately be cannibalised and thousands of good industrial jobs may never return to Webuye.
It is imperative, therefore, that we pursue a more consistent public policy and practice.
We need to return to the days when our socioeconomic development was guided by national values and economic rationale.