From left, Kenya National Bureau of Statistics Board Chairman Terry
Ryan, National Treasury Cabinet Secretary Henry Rotich and his
Devolution and Planning counterpart Anne Waiguru during the launch of
the rebased national accounts statistics at KICC in Nairobi on September
30, 2014. PHOTO | SALATON NJAU |
NATION MEDIA GROUP
This
was after the National Statistics Bureau (KNBS) on Tuesday released new
figures capturing the true value of key sectors such as real estate,
telecommunications and manufacturing.
The data shows that major sectors in the economy were grossly underestimated, hence the inaccurate valuation of the economy.
Telecommunications
was one of the most undervalued sectors with the new figures showing
its value, in 2013, was about 17 per cent bigger than estimated.
Manufacturing, real estate, agriculture and financial services were also inaccurately valued.
The
new figures, which have been verified by both the International
Monetary Fund and the World Bank, were arrived at after KNBS changed the
base year for its calculations from 2001 to 2009.
The
exercise, called rebasing, is intended to give an up-to-date picture of
the country’s Gross Domestic Product — goods produced and the work done
in the economy.
The statistical revision shows that
Kenya is 25 per cent wealthier than what was previously thought. It also
qualifies Kenya for middle income status.
“Basically
what this exercise yields is an updated picture of the economy which
helps the government to plan well and formulate relevant policies as
well as inform investors as they make decisions,” Cabinet Secretary for
Devolution and Planning Anne Waiguru said while unveiling the revised
economic figures.
According to the new figures, the country actually achieved a middle income status way back in 2012.
Kenya
is now ranked the ninth richest country in Africa after overtaking
Ethiopia, Tunisia and Ghana, and has expanded its leading margin as the
biggest economy in East Africa.
The rates of economic growth have also changed.
The
statistical review revealed, for instance, that the country’s economy
expanded 5.7 per cent last year, and not 4.7 per cent as KNBS had
earlier said.
REALIGN OBJECTIVES
The
new outlook will see the government go back to the drawing board with
regard to new policies that align to the current status of the economy.
“This
is very important as it will inform the development of new taxation
measures that are in line with the actual growth of particular sectors.
We will now adopt evidence-based policy formulation, monitoring and
evaluation,” National Treasury Cabinet Secretary Henry Rotich said.
The
government had planned to achieve a middle income status by 2030, which
means that some of the goals and objectives of the national blueprint
will have to be realigned.
However, there will be no change in the social economic status of the common man.
Kenyans
will continue grappling with the problems of poor infrastructure,
corruption, poor healthcare, food insecurity and other challenges that
have faced the society in the past.
But the government
will now be in a better position to plan how to deal with such problems
given that it has access to more accurate information.
IMF
resident representative Morales Rogelio said the government would need
to support developed and emerging economic sectors to stimulate job
creation.
“Much more needs to be done to improve the
output of the economy for the man in the street to come into terms with
this,” Mr Rogelio said.
World Bank senior economist
Johan Mistiaen said the country still qualifies for cheaper loans from
the institution and other international lenders.
Mr
Rotich said the revision gives the country bigger room for more local
and international borrowing to fund development, but maintained that the
government would be prudent in managing credit.
No comments :
Post a Comment