Steady progress in 2014 despite bouts of insecurity

Opinion and Analysis

A section of the Ngong wind power farm in Kajiado. By the end of 2017, the Energy ministry will have delivered about 2,500MW of new generation capacity. PHOTO | SALATON NJAU 

By GEORGE WACHIRA

In Summary

• The ministries of Foreign Affairs, Transport, Treasury, Energy, and Devolution consistently delivered visible results.

Kenyans generally demonstrated confidence and enterprise this year, which are essential attributes for a nation on the move.
Further, external investors and development partners displayed faith in the country’s investment environment as foreign direct investment registered significant increases. In the year, high pitched politics seemed to challenge the patience of the nation as the government grappled with terrorist-induced insecurity.

That notwithstanding, the government was visible in the launch of various projects and programmes which hopefully will translate into increased delivery of economic growth, jobs, and social empowerment. However, the overall government performance varied from ministry to ministry.

My assessment is that the ministries of Foreign Affairs, Transport, Treasury, Energy and Devolution consistently delivered visible results. It is their systematic focus on plans, the speed and style of execution that impressed me most.

These ministries appeared effective in managing challenges while minimising wasteful controversies and crises.

Of course there are many ways of judging performance, but at the end of the day it must be seen to add value to Kenya while impacting citizens who are the voters and taxpayers.

It was evident that gurus in the Foreign Affairs ministry continued to place Kenya on a more visible global, continental and regional pedestal, which is important for trade, investments and national brand. Kenya is now better placed to play the role of an honest and effective regional peace and influence broker.

The Treasury demonstrated remarkable creativity in seeking ways and means to fund various projects and programmes.

Alternative funding instruments through PPPs, sovereign bonds, the novel financing for roads infrastructure, government-to-government credit arrangements and donor support have all gone a long way to fund socio-economic development. All this took place as county governments and various public worker unions screamed for more cash.

There are of course genuine ongoing concerns as to how far the nation should stretch its debt. I feel that a confident and forward-looking nation, supported by sound and feasible socio-economic plans, should not be scared of seeking well structured debt.

In addition to launching key infrastructure projects, the one outstanding achievement by the Transport ministry in 2014 was the successful implementation of the road safety management systems.

We may not have substantially bettered the notorious 3,000 annual fatalities figure, but what is important is that the safety systems are sustainable and with capability to gradually improve road safety. However, corrupt police officers remain the weak link in road safety efforts.

The Energy ministry continued to focus on the 5,000MW power plan and delivered a fraction of it while committing a number of projects.

My estimate is that by the end of 2017 the ministry will have delivered about 2,500MW of new generation capacity. This is no mean achievement considering the lengthy period it takes to reach financial closures on power projects. The ministry and its agencies continued to identify “dormant” but genuine power demands that can only be aroused by available and affordable power supply.

Revamping of the National Youth Service (NYS) by the Devolution ministry in 2014 will increase capacity to empower many young Kenyans while complementing socio-economic projects and programmes across the country.

Social obligation
The Kibera experiment by the NYS should be rolled out in other similar low income settlements. It is a social obligation that should be allocated sufficient funding and priority. Yet there were many obvious missed opportunities which will hopefully be focused on in 2015.

Agriculture, which has the highest capacity for sustainable employment in the country, did not appear to receive effective attention in 2014. Key agriculture sub-sectors like maize, tea, sugar suffered stress. The Agriculture ministry needs to facilitate creation of effective produce marketing systems and synergies among various counties in 2015 .

Effective fiscal protection and incentives for farmers are a priority. Otherwise food security will remain a dream. The vulnerability of oil and gas as an economic sector has already been demonstrated by the recent price volatility.

The government’s message to Kenyans in 2015 should be to emphasise traditional economic sectors and not be “drunk with oil” which is not yet fully explored or developed.

Regionally, the continued focus in 2014 by Kenya, Uganda and Rwanda on regional trade and infrastructure is a good example of how African nations should co-operate in exploiting opportunities and synergies before seeking foreign partnerships.

During the year it was also obvious that a generational shift in national leadership had taken place. Of course there were times when some of us thought that a few extra older heads could have been useful. The generational leadership shift has also taken place in the private sector.

As the Jubilee team moves into 2015 it will need to address murmurs of “rent seeking” in public institutions. Where there is smoke there is always danger of fire.

Corruption can irreversibly destroy credibility and goodwill for any well intentioned government.

Mr Wachira is director, Petroleum Focus Consultants