Photo: Dennis Onsongo/Daily Nation
Blog
By Bankelele
National Treasury Cabinet Secretary Henry Rotich
addresses journalists outside Parliament before presenting the 2017/2018
budget statement (file photo).
All
government officials making speeches and issuing statements now make
sure to cite or refer to the "Big Four" as goals of their departments
and programmes. That used to happen with Kenya's
Vision 2030, but most
ordinary Kenyans never understood what Vision 2030 was about. But has
the Big Four now replaced Kenya's Vision 2030? The new Cabinet announced
a few weeks ago also saw Julius Muia, the director-general of the Kenya
Vision 2030 Delivery Secretariat, appointed as the principal secretary
for Planning at the National Treasury.
The Jubilee Party
government led by President Kenyatta was elected in October 2017. Later,
in his Jamhuri Day speech on December 12, he listed the Big Four
("ensuring food security, affordable housing, manufacturing and
affordable healthcare) as the priority areas that his government would
tackle during his second presidential term in response to the needs of
Kenyans.
The budget policy
statement (BPS) published earlier this month by the National Treasury
notes (on p. 187) that the National Treasury issued guidelines directing
Ministries, Departments and Agencies (MDAs) to prioritize public
investments geared to the realisation of The Big Four Plan and that
these are the Government priorities aligned to the MTP III of the Vision
2030.
So the Big Four does not replace but is part of Vision 2030. But what are the details of the Big Four as contained in the BPS?
- Ensuring food security:
For large-scale production, 700,000 new acres of maize, potato, and
rice will be cultivated under a private-public partnership scheme. The
government aims to increase Kenya's maize production from the current 40
million bags to 67 million by 2022 and potato from 1.6 million tons to
2.5 million tons over the same period. There will be more use of locally
blended fertiliser, waivers of duty for cereal-drying equipment, bags,
and fishing equipment. They will boost smallholder productivity with 68
new fishing vessels on the Coast, curb illegal fishing in Kenya's
waters, build a new shipyard, have traceability of animals to drive
exports, a warehouse receipt system and a commodity fund for farmers.
They aim to train 1,000 SMEs in food processing along the value chain.
Also, to reduce the cost of food, contract farmers will supply the
strategic food reserve and a subsidy model for farmers will see
investments in post-harvest loss reduction, early warning systems,
rehabilitation of fish landing sites on Lake Victoria (at Busia, Migori,
Homa Bay) and elimination of multiple levies along the value chain.
- Affordable housing:
To come up with affordable houses, the focus will be on raising
low-cost funds from the public and private sectors for investment in
large-scale housing production. The housing sector will create 350,000
jobs, and provide a market for manufacturers and suppliers. The Kenya
Mortgage Refinancing Company will issue bonds to local capital markets
and extend longer-term loans to financial institutions to secure
mortgages. Also, there will be PPP land swaps, centralised housing for
police and prisons, more activities at the NSSF, and reduced tax rates
for developers who construct 100 houses a year. There will also be a
pilot scheme at Mavoko for construction of 8,200 houses.
- Manufacturing:
There will be a modern industrial park in Naivasha, apparel industrial
sheds in Athi River, and the establishment of the Dongo Kundu special
economic zone (SEZ) and rollout of genetically modified cotton. For
leather, they will complete the Machakos leather park, and train 5,000
cottage industries, change policies to stop imports of finished leather
and identify three other industrial parks along the SGR. They plan to
accelerate the export of agro-processed products by mapping tea, dairy,
meat, and crop value chains. They will attract two global tea processors
to Mombasa, regulate milk hawking, develop warehousing (there is
already a warehouse receipts bill in Parliament) and cold chains and
make Mombasa a food value hub and all these could create 200,000 jobs.
Also, the manufacturing of construction materials could create 10,000
new jobs when combined with a "buy Kenya" policy that targets 70 per
cent of housing material. In oil and mining, they plan to attract one
global mining player and export Turkana oil. In iron and steel they hope
to attract $1 billion in new investments and establish coal and iron
deposits, In ICT, they hope to assemble phones, TV's and laptops, and
have 5 BPO players, an IT entrepreneurs programme and an innovation
ecosystem of incubators and accelerators which could create 10,000 jobs.
For fish processing, there will be a $20 million fish feed mill, a blue
ocean policy and an aquaculture special economic zone on Lake Victoria,
which could see Kenya's fish exports grow from 2,500 tons annually to
18,000 tons and this should create 20,000 jobs. There will be 290
vocational training centres in all constituencies, tightening of import
rules for finished goods, and support for 10,000 SMEs to reach export
standards. Also, they will set up a Kenya Export Guarantee Fund, expand
the India and China markets, and establish a Kenya Biashara Bank.
- Affordable healthcare:
Health spending will go from Sh61 billion in 2018 to Sh73 billion in
2021 and Kenya will go from the current 36 per cent coverage to achieve
100 per cent universal health coverage by 2022 when the population will
be 50 million. They will reconfigure the National Hospital Insurance
Fund, which, besides digitisation, will also extend services through
37,000 bank agents. The Linda Mama (free maternity) programme will be
rolled out to missionary and private hospitals and there will be CT scan
capability in all counties.
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