This archive report was first published on 6 July 2019.
Published on July 6, 2019, the National Bureau of Statistics' quarterly economic production (GDP) numbers highlighted a deceleration in economic growth rates compared to the first quarter of last year. The decline in agriculture, partly due to delayed rains, had a knock-on effect on manufacturing, which grew at 3.2% compared to 3.8% in the same period last year.
Agri-processing, a key component of Kenya's manufacturing sector, suffered as a result. The GDP numbers underscored policy gaps, with the government's lack of seriousness towards agriculture reflected in its budgeting priorities. Of a budget of over Sh3 trillion, a paltry Sh59 billion went to agriculture and related sectors, roughly 2% of the total.
Agriculture contributes to about one quarter of Kenya's total output and employs three quarters of the labour force. Budget is policy, and the current state of affairs demands people-focused budgeting. This would involve investing in sectors such as education, health, agriculture, and agri-processing, as well as improving infrastructure to support small and medium enterprises.
Monetising and creating markets around what Kenyans actually do as part of their socio-cultural milieu is also crucial. The formal economy employs a tiny sliver of the workforce, while the informal sector is where all the action is – in sectors such as construction, carpentry, crafts, pottery, beauty products and services, logistics, among others.
A people-focused budget would also include creative social protection, such as proper workfare programmes. For instance, for a mere Sh25 billion a year, 100,000 Kenyans could be employed at Sh20,000 per month, creating demand for goods and services and having a significant multiplier effect in communities across the country.
