How to move Kenya from a middle income to a high income economy

By RAPHAEL MUCHIRI WANJOHI | Monday, Jan 27th 2020 at 14:46
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Here are some of the tips that can help in moving the Kenyan economy from middle income to high-income economy;

•Increase the level of trade in Eastern Africa-free trade. Remove the barriers that limit trade such as restrictions, bans, import quotas, and cumbersome testing procedures on the borders

•Increase the Kenyan companies' presence in Uganda, Tanzania, Rwanda, and Burundi. The government to give them incentives, tax reliefs etc.

•Increasing tea, coffee, flowers exports to the countries in Eastern Africa and other parts of the world

•Boosting the three sectors of the economy namely, the primary, secondary and tertiary sector

•More emphasis should be laid on the tertiary sector because it is responsible for the largest portion of the economy's business activity

•The growth of the tertiary sector, which is essentially the service industry, has long been considered as an indicator of a country's economic progress.

•Countries with economies centered on the service sector are considered more advanced than industrial or agricultural economies.

•The service sector in Kenya contributes to about 63 percent of GDP, and its dominant segment is tourism.

•Currently, the government should take bold actions to address the security problem and to reverse negative publicity that has greatly affected tourism in Kenya.

•Other examples of service industries include banking, insurance, tourism, airline business, hotel, and restaurants, among others

•Jobs in the service sectors may include housekeeping, tours, nursing, teaching, garden maintenance, car washing, etc.

•The government should empower the banking sector to encourage investors to set up banks in the country. Insurance companies should also be increased in number to increase revenue from the service sector

•The public and private sector should embrace information technology in order to create jobs for IT companies.

•Graduates from colleges and universities should harness technology and start new businesses. They should use technology in agriculture and manufacturing to increase productivity

•This means that entrepreneurship should be encouraged at all levels from the primary sector, secondary sector to the tertiary sector.

•Uganda, Tanzania, Rwanda, and Burundi are low-income economies, and Kenya is leading the way by being a lower-middle-income economy.

•Therefore, Kenya should boost its trade in Eastern Africa while comparing itself with countries such as Nigeria and South Africa; Singapore and Malaysia; China, UK, and the US.

•During the 1960s, Kenya, Malaysia, and Singapore were at the same level in terms of economic growth.

•Today, Malaysia and Singapore are ahead of Kenya, particularly in economic growth pertaining to the construction and real estate industry.

•Singapore is a high-income economy, and Malaysia is an upper-middle-income economy.

•The most cited reason is that the value system of Malaysia promotes high levels of integrity, honesty, accountability, and responsibility, such that the level of corruption is low.

•However, in Kenya, corruption is a common vice, especially in the public sector.

•Corruption should be minimized or eradicated completely by imparting our youth with values such as integrity, honesty, accountability, and responsibility when they are still in school.

•These values should be integrated into the curriculum that is used to guide teachers in school. Children should be taught about the ills of corruption and the benefits of avoiding it.

•The adults and I mean top officials in the government should lead the way by condemning corruption and avoiding it entirely.

•The secondary sector of the economy or industrial sector includes those economic sectors that create a finished, tangible product, such as production and construction. SGR is part of the construction, and thus it falls under the secondary sector of the economy.

•The policymakers should borrow much from the Vision 2030 that sets the direction of economic development for Kenya until 2030.

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