Kenya Vision is the country's new development blueprint covering the period to It aims to transform Kenya into a newly industrializing. The Vision On Track. 7. Vision Future Kenyan Nuclear Scientists. Commence Training In Korea. 8. Vision Dream To Unveil The First Coast. The unveiling of Kenya Vision marks an important milestone in our country's As we pursue these noble developmental goals and the Vision targets.

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Growing Unequally: An audit of the impact of Kenya's Vision growth on equality. Kenya's Vision An Audit From An Income And. Gender Inequalities. Kenya Vision is the new country's development blueprint covering the The Kenya Vision is to be implemented in successive five-year Medium. THE KENYA VISION Presentation by. Hon. Wycliffe Ambetsa Oparanya, EGH, M.P y p y,.,. Minister of State for Planning, National. Development and.

Unlocking the Future Potential for Kenya: The Vision 2030

Distribution of training in public universities Medium-term strategies for achieving goals Flagship projects and initiatives Mortality rates and child health indicators Key focus areas in the health sector The levels of health sector expenditure and disease burden The burden of ill health on the nation Linkages of health to the economic pillar Goals and strategies for health care Flagship projects for the health sector Target indicators for the health sector Kenya water and sanitation indicators Linkages between water and other economic and social sectors Overall goals and strategies to achieve these goals Flagship projects for Overall goals and strategies to achieve environmental goals Representation of Kenyan women in decision making Key gender indicators for selected countries Condom usage and HIV prevalence Goals and strategies for Dependency ratio Youth health and social risks Housing production and demand by income categories Urban population trends Housing and urbanisation situation in Kenya Housing goals and strategies Housing flagship projects and initiatives HDI for selected countries Gini Indices and National Poverty Levels of selected countries Table 1.

Table 4. Population projections, Distribution by roofing material in rural and urban areas Distribution by walling material in rural and urban areas Percentage of persons accommodated and the number of rooms The economy is expected to grow by more than 6 per cent in from 0. The growth has been widely distributed, covering all economic and social sectors resulting inreduction in poverty levels from 56 per cent in to 46 per cent in Also this growthhas not only impacted positively on the indicators of other MDGs, for example, education,health, gender, and environment, but also availed more resources to address the MDGs acrossthe economy.

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Despite the development registered under the ERS, thecountry continues to face challenges in infrastructure and in institutional reforms the need forfor highest efficiency in production at firm and household levels.

On the whole, Kenyanshave reason to be satisfied by the results even though much remains to be done. ERS expiresin December and Kenya will embark on a new long-term vision to guide herdevelopment in the next 25 years.

Kenya Vision is new long-term development blueprint for the country.

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It is motivatedby collective aspiration for a much better society than the one we have today, by the year In other words the vision aspires to meet the MDGs forKenyans. Specifically, the process involved international andlocal experts, ordinary Kenyans and stakeholders from all parts of the country. Between Julyand August , the contents of the Vision were again subjected to open consultationsin all districts in Kenya, before the finalization of the document.

The Vision is anchored on three key pillars: Economic; Social; and Political Governance. The economic pillar aims to achieve an economic growth rate of 10 per cent per annum andsustaining the same till in order to generate more resources to address the MDGs. Thevision has identified a number of flagship projects in every sector to be implemented over thevision period to facilitate the desired growth that can support the implementation of theMDGs on a sustainable basis. In addition the vision has flagged out projects addressing theMDGs directly in key sectors such as agriculture, education, health, water and environment.

The social pillar seeks to create just, cohesive and equitable social development in a cleanand secure environment. The political pillar aims to realise an issue-based, people-centred,result-oriented and accountable democratic system. Foundations for Kenya Vision The economic, social and political pillars of Kenya Vision will be anchored on thefollowing foundations: Macroeconomic Stability for Long-Term Development: Kenyans appreciates the key role ofmacroeconomic stability has played in economic recovery and rapid growth experienced bythe country since This has resulted in low levels of inflation, strictly limited publicsector deficits, a stable exchange rate, and low interest rates.

Kenya Vision 2030

For this reason, Kenya Vision places the highest premium on the stable macroeconomic environment the country nowenjoys, and expects it to continue in the future as a matter of policy. This is the only way inwhich confidence among Kenyans and investors can be created and sustained.

A stableeconomic environment also works in favour of the poor who stand to lose the most in periodsof high inflation. All the projects proposed under Vision will, therefore, beimplemented subject to the parameters set under the macroeconomic stability framework. Continuity in Governance Reforms: Kenya remains fully committed to continuinggovernance reforms.

These will be deepened and accelerated in order to create a betterenvironment for doing business, and for the full enjoyment of individual rights that Kenyansare entitled to under the constitution. Toward that end, the Government will continue andintensify the anti-corruption programme already in place through: The Government also recognisesthat in an open, democratic society like Kenya, the people themselves, Parliament, civilsociety, and a vigilant press are the ultimate defence against abuse of office.

Theseinstitutions will continue to receive full support from the Government and from the people ofKenya. No society can gain thesocial cohesion predicted by Vision if significant sections of it live in abject poverty. To that extent, Kenya Vision includes equity as a recurrent principle in all its economic,social and political programmes. Special attention has been given to investment in the aridand semi-arid districts, communities with high incidence of poverty, unemployed youth,women, and all vulnerable groups.

The Vision aspires for a country firmly interconnected through anetwork of roads, railways, ports, airports, and water ways, and telecommunications. Itshould provide water and modern sanitation facilities to her people.

Kenya must, therefore, generate more energy andincrease efficiency in energy consumption. The Government is committed to continuedinstitutional reforms in the energy sector, including a strong regulatory framework,encouraging private generators of power, and separating generation from distribution. Newsources of energy will be found through exploitation of geothermal power, coal, renewableenergy sources, and connecting Kenya to energy-surplus countries in the region. Page viii Vision proposes intensified application ofscience, technology and innovation to raise productivity and efficiency levels across the threepillars.

Moreresources will be devoted to scientific research, technical capabilities of the workforce, andin raising the quality of teaching mathematics, science and technology in schools,polytechnics and universities.

Land Reform: Land is a critical resource for the socio-economic and political developmentsspelt out in Vision Respect for property rights to land, whether owned bycommunities, individuals or companies, is an important driver of rapid economictransformation everywhere.

The transformation expected under Vision is dependent ona national land use policy, which, therefore, must be completed as a matter of urgency. Thepolicy will facilitate the process of land administration, the computerisation of land registries,the establishment of a National Spatial Data Infrastructure in order to track land use patterns,and the introduction of an enhanced legal framework for faster resolution of land disputes.

Human Resource Development: Kenya intends to create a globally competitive and adaptivehuman resource base to meet the requirements of a rapidly industrialising economy.


Thiswill be done through life-long training and education. As a priority, a human resource database will be established to facilitate better planning of human resources requirements in thecountry. Furthermore, steps will be taken to raise labour productivity to international levels.

Other steps will include the establishment of new technical training institutions, as well asthe enhancement of closer collaboration between industry and training institutions.

The Government is determined to improve security in order to attractinvestment, lower the cost of doing business and to provide Kenyans with a more secureliving and working environment.

Specific strategies will involve: Allthese measures will be supported by accelerated reforms in the judiciary. The country willalso implement reforms in the prison service, starting with reduction of the number ofsuspects in remand homes, improved training and working conditions for prison staff; and areorientation of the service to correctional activities.

Public Service: An efficient, motivated and well-trained public service will be one of themajor foundations of the vision. Kenya will build a public service that is citizen-focused andresults-oriented, a process whose achievements so far have received international recognitionand awards. The Government will intensify efforts to bring about an attitudinal change inpublic service that values transparency and accountability to the citizens of Kenya.

Reforms in the public service will further enhance strategic planning in government,continuous improvement, and stakeholder engagement. A Kenya School of Government will Page ix Economic Pillar: In the tourism sector, Kenya aims to be one of the top ten long-haul touristdestinations in the world, offering a high-end, diverse, and distinctive visitor experience.

Specific strategies for realising this aim will include: Kenya aims to promote an innovative, commercially-oriented, and modernagricultural sector. This will be accomplished through: Vision aims at adding value to our farm and livestockproducts before they reach local and international markets. Wholesale and retail trade: The vision for wholesale and retail trade is to raise earningsby giving our large informal sector opportunites to transform itself into a part of the a formalsector that is efficient, multi-tiered, diversified in product range and innovative.

This will berealised through: Kenya aims to have a robust, diversified, and competitive manufacturingsector. This will be achieved through the implementation of the following strategies: Business process outsourcing: Kenya aims to become the top off-shoring destination inAfrica.

BPO will, therefore, become the sector of choice for employment for youth and Page x The country will move quickly to establish the necessary capacity in thesector through: Kenya also intends to become a regional financial services centre. Thiswill be achieved through: Social Pillar: This quest is thebasis of transformation in eight key social sectors, namely: It also makes special provisions for Kenyans with variousdisabilities and previously marginalised communities. Education and Training: Under education and training, Kenya will provide a globallycompetitive and quality education, training and research..

Kenya aims to be a regional centreof research and development in new technologies. This will be achieved through: The Health Sector: To improve the overall livelihoods of Kenyans, the country aims toprovide an efficient integrated and high quality affordable health care system.

Priority willbe given to prevented care at community and household level, through a decentralizednational health-care system. With devolution of funds and decision-making to district level,the Ministry headquarters will then concentrate on policy and research issues.

Improved accessto health care for all will come through: Page xi Water and Sanitation: Kenya is a water-scarce country. The economic and socialdevelopments anticipated by Vision will require more high quality water supplies thanat present.

The country, therefore, aims to conserve water sources and enhance ways ofharvesting and using rain and underground water. The vision for Water and Sanitationis to ensure that improved water and sanitation are available and accessible to all. This willbe realised through specific strategies, such as: The Environment: Kenya aims to be a nation that has a clean, secure and sustainableenvironment by Housing and Urbanisation: Given the current demographic trends, Kenya will be apredominantly urban country by The country must, therefore, plan for high qualityurban livelihoods for most of her people by that date.

Gender, Youth and Vulnerable groups: The vision for gender, youth and vulnerablegroups is gender equity in power and resource distribution, improved livelihoods for allvulnerable groups, and responsible, globally competitive and prosperous youth. The Government will provide stricter enforcement of copyright laws in music and theperformance arts, and provide facilities for the most talented musicians and actors.

Thecountry aims to be a competitive destination for global film producers. These aims will berealised through the implementation of specific strategies such as: Page xii Political Pillar: Rule of Law: Specificstrategies will involve: Electoral and Political Processes: Democracy and Public Service Delivery: Transparency and Accountability: Security, Peace-Building and Conflict Management: This should start with the family, schools, the church and all public institutions.

Page xiv Overview of Recent Economic PerformanceKenya began to lay a solid foundation upon which to start the journey of building a globallycompetitive and prosperous economy in As a response to past economic and socialchallenges, Kenya implemented bold economic and structural reforms as elaborated in theEconomic Recovery Strategy ERS covering the period. The ERS was anchoredon three key pillars, namely: Restoration of economic growth within the context of a stablemacroeconomic environment; Enhanced equity and poverty reduction; and Improvement ofgovernance to enhance efficiency and effectiveness in the economy.


These three pillars were carefully chosen to pull the economy out of a recession and tocommence the journey toward a broad-based equitable economic recovery underpinned byimproved efficiency in public service delivery. In all of the three pillars, significant progress hasbeen registered since Pillar I: This wasthe first time in two decades for Kenya to record four consecutive years of high economicgrowth.

The robust economic growth was evident in all sectors of the economy. Chart 1: Kenyan economy has expanded from virtual stagnation in when it expanded by 0. Similarly, the manufacturing sector expanded by 6. The transport and communication sector experienced a strong growth from 3.

The improved exports, higher tourism receipts and remittances, and increased capital inflows have resulted in more than a doubling of international reserves held by the Central Bank since , from USD1. After recording a negative growth rate in , the sector grew by 6. Fiscal DevelopmentsIn regard to fiscal policy, since , Kenya has demonstrated tremendous improvement inrevenue generation. Between and alone, revenue collection rose sharply by about2 percentage points of GDP as a result of improvements in administration and governance.

With strong revenue effort, expenditure keptwithin target while shifting resources allocation to priority development areas of agricultureand rural development, infrastructure, education and health, net domestic borrowing has beenlargely contained, falling from 3.

Monetary Policy, Inflation and Exchange RateMonetary policy has been targeted at containing inflation pressures, so as to ensure a stablemacroeconomic environment which is necessary to encourage private sector investment. Theunderlying rate of inflation has generally been within the 5 percent target. The overall rate ofinflation has been volatile due to the increases in food and fuel prices occasioned by dryspells and movement in world oil prices. TheKenya shilling exchange rate against the dollar has appreciated due to strong balance ofpayments position, as well as a weakening of the U.

Pillar II: Equity and Poverty ReductionIn order to ensure that the growth is shared amongst all Kenyans, a number of targeted fiscalinterventions, structural reforms and regional development initiatives have been implementedsince to reduce poverty and inequality in Kenya. Among these anti-poverty andinequality interventions implemented include: Reflecting the impact of recent strong and broad-based economic expansion on welfare, percapita income has increased strongly from USD.

Kenya Vision 2030

In addition, the implementation of various anti-poverty interventions has subsequently resulted in a decline in overall incidence of povertyfrom Pillar III: Improving GovernanceA number of governance reforms have been implemented since mainly to: In particular, several reform measures aimed at deepening improvement ofgovernance in the areas of prevention, investigation and prosecution have been implemented.

These include: Challenges and Opportunities: Vision A: Global and Regional Operating EnvironmentIn the past two decades the world has witnessed rapid economic growth and expansion oftrade driven primarily by developed countries.

These trends are expected to continue in the Page 4 The world population is expected to rise to 8. From a demand side,the growing world population and economy means a widening of the potential market forKenyan products beyond the traditional developed country markets. However, other globaleconomic trends including the growth of out sourcing, environmental concerns and increaseddemand for raw materials means that countries like Kenya are likely to face, greatercompetition in previously non tradeable service sectors, higher quality standards in exportmarkets and higher import prices for their raw materials.

Hence, even as the country attemptsto exploit the opportunities availed by the growing world trade, it will need to scale up itproductivity and quality control regimes to remain relevant. In particular, the multilateral trading arrangements underthe WTO and the regional trading arrangement under the Economic Partnership Agreement EPA between the Eastern and Southern African ESA countries and the European Union EU will be critical determinants of the opportunities for export led development as well asthe potential for adopting certain economic strategies.

The liberalization of global trade that has taken place under the multilateral tradingframework has been a major reason for the rapid expansion in world trade.

The timing of the tariff reductions are already largely agreed andimply that EU producers of raw materials, capital equipment and final manufactured goodswill increasingly access the Kenyan market duty and quota free.

This reality will place limitson the extent to which Kenya can pursue protectionist policies to promote industrialdevelopment and makes an export oriented development strategy an imperative. In addition,with tariff revenues to be forgone on EU imports, the EPA will also limit the extent to whichKenya can rely on trade related taxes for budgetary purposes.

Internal Challenges and OpportunitiesWhereas Kenya has been able to scale up economic growth to 6. These challenges include: It is, therefore, important that Kenya adopts andfollows through on a robust strategy that tackles the challenges enumerated above.

This is thebasis of the macro economic strategy outlined in the rest of this chapter. In going forward, Vision will build on the successesunder ERS with a pursuit of a macroeconomic framework that will facilitate low and stableinflation and interest rates, a sustainable public sector debt position, and a competitive realexchange rate to support an export-led economic growth and help to deliver high andsustainable levels of growth, employment and poverty reduction.

Economic GrowthThe growth objectives underpinning the Vision require the rate of growth of theeconomy to rise from 6.

Such a growth will shift Kenya from the rank of the low-income countries to wellwithin the ranks of the middle-income countries. Achieving these growth targets will require: Fiscal FrameworkMacroeconomic stability and the role of fiscal dispensation in sustaining it, is critical forprivate sector development and growth. The Government will ensure that the bulk ofexpenditures are met from tax revenue and that overall expenditure is controlled to ensurethat the overall government deficit is sustainable and does not lead to a crowding out ofprivate sector investments.

Key elements of the fiscal strategy will include: Page 6 Maintaining a strong revenue effort: Revenues are targeted to rise from After widening to about 5. Containing growth of total expenditures, while creating fiscal space through expenditure rationalization to shift resources from non-priority to priority areas, including expenditures on the flagship projects critical to achieving Vision The increasing requirements for operation and maintenance for the expanded infrastructure have been catered for; andiv.

Most of the increase in development expenditure will continue to benefit the priority sectors such as the infrastructure and agriculture sectors, and social sectors such as health and education, will pay an important role towards the realization of Vision As a country, we will, therefore, need to scale-up resources towards these sectors, while ensuring efficiency and effectiveness in their use and management.

Expenditure reforms will involve building capacity for efficiency, effectiveness and accountability in budgetary process to among other things: As Kenya graduates from a low-income to lower middle-income and then upper middle-income country, it will progressively reduced recourse to concessional funding.

The country will therefore increasingly rely on access to international financial markets for its financing needs as well as on non-debt creating foreign direct investments. Page 7 Monetary policyMaintaining low and stable inflation is critical for long-term economic and social prosperity.

High and variable inflation leads to inefficient allocation of resources and makes planning forthe future much more difficult. Costs are also incurred as people seek to protect themselvesfrom the effects of inflation rather than concentrating on the creation of new wealth.

Thisdamages productivity and growth. Moreover, high and variable inflation involves social coststhat are likely to fall particularly hard on those people on lower incomes. Measures will be taken to mechanize agricultural production, revive cooperatives and farmers unions, and subsidize farm inputs to raise productivity. The agriculture sector comprises five sub-sectors - industrial crops, food crops, horticulture, livestock and fisheries and employs such factors of production as land, water and farmer institutions co-operatives, associations.

Efforts will be put in place for increased involvement of the youth in income generating ventures in the Agriculture, Livestock and Fisheries sector. Other interventions were in research and development; improving delivery of extension services; strengthening producer institutions; intensification and expansion of irrigation; seed improvements; livestock development and fisheries development.

Oils and other Mineral Resources is a new priority sector under the economic pillar of this plan given the continued discovery of oil and other minerals in Kenya. It will also ensure that legislation for transparency and fair sharing the revenue generated is enacted, and safeguards erected to protect the environment and to avoid risks usually associated with huge inflows of resource based external earnings.

With regard to energy, a strategy is in place for modernizing energy infrastructure network, increasing the share of energy generated from renewable energy sources, and providing energy that is affordable and reliable to businesses and homes.

This will ensure that our energy supply is adequate and efficient in order to support increased use in manufacturing, agriculture, services, public facilities and households. The Social Pillar envisages improving the whole education system and the government will increase support for policies and institutions devoted to promoting gender equity. It will also increase allocation of resources to enterprises led by youth and women. In addition to the Youth Enterprise Development Fund, and Women Enterprise Fund, the Uwezo Fund will provide more funds for loans to the youth, women and vulnerable groups in order to support them start small business.

More resources will be allocated to social protection, including cash transfers to the most vulnerable members of our society. The Government will fully implement policies for protection of rights for women, the handicapped and vulnerable groups.This is an integrated programme with six components, asfollows: The preliminary findings were submitted to the Cabinet in May Office of Public Communications 10 June Theseinstitutions will continue to receive full support from the Government and from the people ofKenya.

ERS expiresin December and Kenya will embark on a new long-term vision to guide herdevelopment in the next 25 years. Economy of Kenya.

Under this MTP, transformation of the economy is pegged on rapid economic growth on a stable macro-economic environment, modernisation of our infrastructure, diversification and commercialisation of agriculture, food security, a higher contribution of manufacturing to our GDP, wider access to African and global markets, wider access for Kenyans to better quality education and health care, job creation targeting unemployed youth, provision of better housing and provision of improved water sources and sanitation to Kenyan households that presently lack these.

Citizens will be encouraged to value and respect publicfacilities through a series of public education and awareness programmes aimed atengendering a sense of civic responsibility and foster nation-building attitudes among allcitizens.