Kenya is actively pursuing strategies to bolster its economic growth over the next four years, as stated by the finance ministry on Friday. The nation’s intention is to invigorate the agricultural sector and support small enterprises with the aim of generating employment opportunities and reducing poverty.
In a bid to address the challenge of high unemployment affecting a significant portion of the population, the authorities in this East African nation are striving to cultivate growth while fostering inclusivity within the economy.
Finance Minister Njuguna Ndung’u elaborated, stating, “Our goal is to uplift individuals in the lower socio-economic strata.”
Nonetheless, the government is confronted with a range of obstacles, encompassing escalating living expenses, mounting debt obligations, a depreciating currency, and pervasive corruption.
The finance ministry introduced its medium-term development plan on Friday, charting a path for the economy to achieve a growth rate of at least 7.2% by 2027.
The past year witnessed growth taper to 4.8% due to a severe drought, but the government anticipates a rebound to 5.5% for the current year.
For the present fiscal year, the country managed to trim its budget deficit to 4.4% of the gross domestic product. The objective is to further reduce this deficit to 3.9% by the financial year 2024/25, according to the finance ministry’s announcement.
This reduction in the deficit is anticipated to create leeway for the government to allocate resources towards key sectors such as agriculture and small-scale businesses, as highlighted by Ndung’u.
Furthermore, the government is actively transitioning from domestic borrowing to more cost-effective loans from international institutions like the World Bank and the African Export-Import Bank (Afreximbank). This strategy aims to augment credit availability within the private sector, which Ndung’u likened to being “the lubricant that facilitates private sector operations.”