Kibaki calls for change of tack to focus on industrial growth

A section of the crowd during the lecture at the University of Nairobi. Photo/Evans Habil  NATION MEDIA GROUP

By Mugambi Mutegi
 

 

Retired President Mwai Kibaki has cautioned against dependence on agriculture for economic growth saying more emphasis should instead be placed on new industries.

During a public lecture at the University of Nairobi themed Of Hindsight, Insight and Foresight and laced with historical anecdotes, Mr Kibaki stated what he thinks ails Kenya’s economy:

“Over-reliance on agriculture still obstructs industrial or industry-based economic takeoff. We must also embrace innovation, especially in industrial technology on a national scale in order to up our ante in our endeavour to transform our country,” he said.

A recent survey titled State of East Africa 2013 showed that Kenya has the second biggest income inequalities in East Africa after Rwanda, with a dip in agriculture-linked jobs being one of the causes for this.

The report showed that agriculture, which used to account for 30 per cent of Kenya’s GDP 10 years ago, has in the last five years accounted for an average of 24 per cent of GDP.

Similarly, the share of national wealth generated by the manufacturing sector has dropped from 10.8 per cent five years ago to 9.2 per cent last year, a trend the former President says needs to be reversed.

“Going forward, it is appropriate to note that high interest rates remain a disincentive to long-term investments, especially in the processing and manufacturing sector,” said Mr Kibaki.

The public lecture was organised by the Kenya@50 Secretariat and the University of Nairobi as part of the events in the ongoing celebrations of the country’s 50 years of Independence.

The former leader’s speech centred on how a newly-independent Kenya found its footing despite the challenges it faced in the last 50 years.

“Weighed down by such enormous human capital deficit, it took a little longer before Kenyans could venture into the more specialised sectors of our economy,” he said.

However, Mr Kibaki exuded confidence on the potential economic impact that some projects, conceptualised under his leadership, would have on Kenya.

He singled out the Lamu Port-South Sudan-Ethiopia Transport (Lappset) project as one of such key undertakings.

He said the project — which incorporates roads, Lamu port, and the establishment of resort cities along the transport corridor — needed to be completed in time.

“One of the best ways forward is, without question or hesitation, the eagerly-awaited completion of the Lappset project, Kenya’s biggest infrastructural undertaking ever,” he said.

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