This archive report was first published on 16 July 2019.
The Kenya National Bureau of Statistics' Economic Survey 2018 paints a mixed picture of the country's economic performance. While the economy expanded by 6.3 percent in 2018, up from 4.9 percent in 2017, the benefits of this growth are not being shared equally.
According to the report, 83.6 percent of Kenyans work in the informal sector, while 15.3 percent are engaged in the formal sector. This raises questions about the government's policy reviews for financial inclusion, which may be locking out the majority of Kenyans from mainstream financial services.
The report highlights the distinction between inclusivity in access to finance and access to financial services. While many Kenyans can access financial services, such as M-Pesa, the burden of the cost of these inclusion is placed on the majority poor, who are convinced that inclusion in financial services is a privilege, yet it is a basic right for anyone making a contribution to the economy.
Urging that the poor can now move more easily ignores the fact that they bear the cost of that movement, increasing expenses before productivity. This is not a viable business model, but rather an oppressive one.
The report also notes that the richer segments of society can move copious amounts of money at no cost at all or at the same cost as micro-enterprises can move, say, one thousand shillings. This raises questions about the fairness of the current economic model.
The education sector remains the highest single source of employment in the country, absorbing close to 18 percent of formally employed Kenyans. Tea is the leading foreign exchange earner for the country, followed by horticulture, then cloths, and then coffee. However, the country continues to sell its best products for the lowest price, with value addition being a key area for improvement.
The report also highlights the issue of inequality, with the gap between the haves and have-nots not getting any better. The benefits of economic growth are being accrued to a small section of the population, leaving the majority behind.
