Shift in politics could halt sliding growth

By David Ohito

Economists and observers said the country has its political priorities wrong.

With 80 per cent of the budget funding going to recurrent expenditure, and a paltry 20 per cent for development the future looked grim.

"Political wrangles in the coalition have made Kenya vulnerable. Politicians must redirect all energies towards corrective policies or the country will continue to suffer," said Prof Inonda Mwanje the executive director of the Institute of Policy Analysis and Research (Ipar).

"Those in power failed to intervene urgently with redress strategies. Infrastracture is still wanting and cost of energy to high accounting for 40 per cent of production costs," Mwanje decried.

"Only construction and education grew. Construction because of corrective interventions to restore infrastructure destroyed during violence, and education because of the free primary education policy, with huge monies injected for bursary," Prof Mwanje added.

He noted that Kenya is exposed to food insecurity, with too much spending on food imports as opposed to production," Mwanje argued.

Former Kabete MP Paul Muite said the State must cut spending and reduce the number of ministries to 15-20.

Wrong priorities

"Bloated Cabinet is making things worse. How can the economy grow if we plan to spend less than 15 per cent of budget on development in 2009-2010 from the current 20 per cent?" Muite asked.

"State House must reduce its 146 vehicles. This opulence when Kenyans cannot cope with inflation costs and high energy costs." Muite argued.

Medical Services Minister Peter Anyang’ Nyong’o said Kenya would not move forward as long as infrastructure gets minimal funding.

Said Nyong’o: "We allowed so many brokers and rent seekers to control the energy sector and restrict competition. Some of the costs of energy are questionable."

"We in ODM believe unless infrastructure is given priority and increased funding the growth rate will be low and Vision 2030 untenable." Nyong’o said.

The ambitious Vision 2030, launched last year, pledges to triple economic fortunes within the next 22 years, to the levels of Asian tigers Malaysia and Singapore.

Muite said manufacturers are paying between Sh10 and Sh15 per kilowatt of electricity, while their competitors in China and India pay the equivalent of between Sh2.50 and Sh3.80 per kilowatt of electricity, making their products much cheaper than Kenya’s.

Alego-Usonga Mo Edwin Yinda said there must be a deliberate effort to make fertilizer accessible and affordable through massive subsidies.

"The economy must be placed in the hands of Kenyans, so that profits are not repatriated to foreign countries.

We want cash flow to improve here. Some of the service industry businesses can be done by Kenyans." Yinda said.