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Kenya economic update : policy options to advance the Big 4 - unleashing Kenya’s private sector to drive inclusive growth and accelerate poverty reduction (English)

After multiple headwinds dampened growth in 2017, a nascent rebound in economic activity in Kenya is gaining momentum. Notwithstanding the projected rebound in economic activity risks are tilted to the downside. The Government of Kenya has outlined four big priority areas for the next five years. These are agricultural and food security, affordable housing, increased share of manufacturing, and universal health coverage. Support from the public and more importantly the private sector will be required to achieve the big 4. Specific measures to create fiscal room to support the big 4 can include: enhancing domestic revenue mobilization through the rationalization of tax exemptions; slowing the pace of expansion of recurrent spending; and improving the efficiency of spending. Boosting agricultural productivity and food security will require re-allocating more resources to agriculture and improving the efficiency of current spending in the sector. To eradicate poverty by 2030, Kenya will need a combination of higher growth, more inclusive growth, and growth that is increasingly driven by the private sector and translates into more rapid poverty reduction.

Details

  • Author

    Awiti,Christine Achieng, Dennis,Allen Curtis K., Mutie,Celina Katunda, Sanya,Sarah Oludamilola, Angelique,Umutesi, Wankuru,Peter Chacha, Pape,Utz Johann, Mistiaen,Johan A., Tolchinsky,Marina, Chengula,Ladisy Komba, Safavian,Mehnaz S., Ramana,Gandham N.V., Khatimba,Anne, Muthembwa,Keziah Muthoni, Rosauer,Vera Atieno Oloo, Waiharo,Robert

  • Document Date

    2018/04/01

  • Document Type

    Working Paper (Numbered Series)

  • Report Number

    125056

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Kenya,

  • Region

    Africa,

  • Disclosure Date

    2018/04/09

  • Disclosure Status

    Disclosed

  • Doc Name

    Kenya economic update : policy options to advance the Big 4 - unleashing Kenya’s private sector to drive inclusive growth and accelerate poverty reduction

  • Keywords

    Growth and Opportunity Act; rate of poverty reduction; Acquired Immune Deficiency Syndrome; commercial real estate market; Growth and Shared Prosperity; fiscal consolidation; interest rate cap; private investment; current account deficit; expansionary fiscal policy; international poverty line; Balance of Trade; private sector credit; elasticity of poverty; global economic recovery; medium term growth; expansionary fiscal stance; trade and investment; foreign interest payment; access to finance; household head; generation of electricity; nominal exchange rate; secondary school enrollment; wages and salary; flow of fund; consumer price index; total public spending; domestic revenue mobilization; state owned enterprise; residential real estate; primary fiscal deficit; primary school enrollment; benchmark government security; national government revenue; preferential trade agreement; Private Sector Growth; increase in debt; pace of expansion; foreign direct investment; private sector participant; private sector resource; private sector lending; public sector wage; value added tax; policy option; global economy; net export; agriculture sector; inclusive growth; personnel emolument; weather condition; private consumption; government consumption; construction sector; drought conditions; credit growth; Macroeconomic Stability; expenditure increase; political uncertainty; food price; agricultural sector; commodity price; manufacturing sector; oil price; macroeconomic environment; fiscal outturn; domestic demand; agricultural output; rich economy; remittance inflow; political tension; government subsidy; health coverage; increasing share; staple food; food subsidies; government spending; international benchmarks; incentive structure; global trade; downside risk; climatic shocks; target range; adversely impact; global growth; policy stance; energy price; supply side; soft drink; improved water; improved sanitation; industrial enclave; agribusiness activity; Public Facilities; cultivable land; agricultural harvests; rising debt; provider payment; private housing; higher growth; manufactured export; import duty; mineral price; oil sector; excise duty; positive growth; wage adjustment; Oil Pipeline; statistical table; drought mitigation; regulatory environment; Public Goods; cost benefit; redundant worker; sheet metal; industrial sector; Job Creation; domestic sources; recurrent revenue; official poverty; general elections; macroeconomic instability; negative spillover; political commitment; middle-income economy; child stunting; fiscal space; increase poverty; extension service; percent change; mortgage contract; rural area; fertilizer subsidies; producer subsidy; poverty profile; storage system; global market; warehouse receipt; gender aspect; fiscally sustainable; devolved system; logistical support; agricultural productivity; Macroeconomic Policy; program leader; solid contribution; financial market; Fiscal Stimulus; monetary policy; universal health; monetary poverty; small farmer; climate proofing; private entity; domestic financing; fiscal crowding; portfolio level; capital expenditure; noncommercial purposes; foreign portfolio; government bond; public body; pension liabilities; consumption distribution; government expenditure; stamp duty; cross-country comparison; improving management; fiscal rule; rainfed agriculture; relief effort; Land Registration; high wage; tax revenue; labor supply; public debt; Capital Inflows; domestic interest; lending condition; fiscal discipline; global financial; subsidiary right; trading activity; increased spending; transportation sector; debt service; international certification; government development; Fiscal policies; organizational practice; working capital; economy sector; poverty incidence; tall building; increase growth; credit condition; financial service; industrial activity; exponential growth; school curricula; data service; mobile money

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Citation

Awiti,Christine Achieng Dennis,Allen Curtis K. Mutie,Celina Katunda Sanya,Sarah Oludamilola Angelique,Umutesi Wankuru,Peter Chacha Pape,Utz Johann Mistiaen,Johan A. Tolchinsky,Marina Chengula,Ladisy Komba Safavian,Mehnaz S. Ramana,Gandham N.V. Khatimba,Anne Muthembwa,Keziah Muthoni Rosauer,Vera Atieno Oloo Waiharo,Robert

Kenya economic update : policy options to advance the Big 4 - unleashing Kenya’s private sector to drive inclusive growth and accelerate poverty reduction (English). Kenya economic update,no. 17 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/327691523276540220/Kenya-economic-update-policy-options-to-advance-the-Big-4-unleashing-Kenya-s-private-sector-to-drive-inclusive-growth-and-accelerate-poverty-reduction