People-focused budgeting needed for real economic growth

The quarterly economic production (GDP) numbers from the National Bureau of Statistics raise several alarms. Compared to the first quarter of last year, there is a clear deceleration in the economic growth rate. The deceleration in growth rates was driven by declines in agriculture, in part occasioned by delayed rains. The decline in agriculture had a knock-on effect on manufacturing, which grew at 3.2 per cent compared to 3.8 per cent in the same period last year. Agri-processing is a key component of Kenya’s manufacturing sector.

The GDP numbers highlight policy gaps. Our failure to take agriculture seriously will continue to harm our economic prospects. Many people still depend on rain-fed agriculture, even as billions of shillings allocated for irrigation projects wind up in corrupt politicians’ bank accounts. The government’s lack of seriousness when it comes to agriculture is also reflected in its budgeting priorities. Of a budget of over Sh3 trillion, a paltry Sh59 billion went to agriculture and related sectors (roughly 2 per cent). Agriculture contributes to about one quarter of our total output, and employs three quarters of the labour force.