Address insecurity to halt economic decline

In Summary

• Overall, the economy grew by 5.3 per cent, down from 5.7 the previous year, according to the latest Economic Survey launched on Wednesday in Nairobi. Tourism, a perennial top income earner, received a beating as its growth regressed by 7.3 per cent.
• Even so, there was a glimmer of hope for construction, real estate, and information and communication, whose performances improved and were, therefore, able to expand their contribution to the GDP.
• Cumulatively, they accounted for about a third of the GDP, cancelling out deficits that arose as tourism and agriculture suffered. Moreover, the country enjoyed a windfall as the international prices of oil plunged by as much as 60 per cent.

WANTED: (L-R) Issa Abdala Kauni, Hussein Said Omar, aka Babli, Abulkadir Abubakar Abdulkadir and Ahmed Said Omar, aka Dogo. PHOTOS | COURTESY 

By EDITORIAL
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Terrorism and other cases of insecurity have weighed heavily on the economy, wiping out gains made in previous years.

Figures released on Wednesday show that key economic indicators such as tourism, agriculture, and manufacturing have contracted, recording declines last year, largely due to instability arising from terrorist attacks and hostilities among some communities.

Overall, the economy grew by 5.3 per cent, down from 5.7 the previous year, according to the latest Economic Survey launched on Wednesday in Nairobi. Tourism, a perennial top income earner, received a beating as its growth regressed by 7.3 per cent. Hotel occupancy dipped as foreign tourists kept away for fear of terrorist attacks.

Even so, there was a glimmer of hope for construction, real estate, and information and communication, whose performances improved and were, therefore, able to expand their contribution to the GDP.

Cumulatively, they accounted for about a third of the GDP, cancelling out deficits that arose as tourism and agriculture suffered. Moreover, the country enjoyed a windfall as the international prices of oil plunged by as much as 60 per cent.

An equally rosy story was in the social sector, including the education and health services. School enrolment climbed as infant and maternal mortality rates plummeted.

The inference is that some interventions such as free primary education and subsidised secondary education, as well as waiver of levies in public health facilities, have made a difference.

Broadly, though, the challenge is to reverse the declining economic growth as it has far-reaching ramifications on the other variables. Specifically, the government must end the spiralling terrorism and violence that scare away tourists and investors, leading to contraction of the economy.