Kenya to spur economic growth by investing in agriculture & small businesses

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Kenya to spur economic growth by investing in agriculture & small businesses

Kenya has reportedly unveiled its strategy to enhance economic growth over the next four years, as announced by the finance ministry on Friday. The nation's approach involves directing investments towards the agricultural sector and small enterprises, aiming to generate employment opportunities and alleviate poverty.

The authorities in this East African nation are actively seeking avenues to elevate growth rate, with the dual objectives of mitigating the widespread issue of unemployment affecting a substantial portion of the population and fostering a more inclusive economy.

Finance Minister Njuguna Ndung’u emphasized that the primary aim is to uplift those situated at the lower socio-economic strata. Speaking to journalists, he conveyed the deliberate intention behind the agenda.

Despite these aspirations, the government faces a series of obstacles including mounting living expenses, escalating debt obligations, currency depreciation, and pervasive corruption. The newly introduced medium-term development blueprint by the finance ministry outlines a target of achieving a minimum growth rate of 7.2% by 2027. Following a growth deceleration to 4.8% in the previous year attributed to severe drought conditions, the administration anticipates a rebound to 5.5% growth in the current year.

Notably, the country's fiscal deficit narrowed to 4.4% of the gross domestic product in the present fiscal cycle, with intentions to further curtail it to 3.9% by the financial year 2024/25, as outlined by the finance ministry.

This reduction in the deficit is anticipated to furnish the government with the means to finance initiatives within pivotal sectors such as agriculture and small-scale enterprises, according to Minister Ndung'u.

He further added that the credit will serve as the propellant for the private sector. Moreover, the strategy involves a transition from local borrowing to more economical loans from international entities such as the World Bank and the African Export & Import Bank (Afreximbank), with the intent of augmenting credit availability to the private sector.