This archive report was first published on 22 October 2019.
Kenya's economic policy has been shaped by the structural adjustment programmes (SAPs) imposed by the World Bank, IMF, and US Treasury in the 1990s. These programmes aimed to liberalize the economy and reduce the role of the state in development.
However, the SAPs have had far-reaching and devastating consequences for Kenya's economy and society. The programmes led to the privatization of state-owned enterprises, including parastatals, and the reduction of public sector jobs.
President Daniel arap Moi resisted the pressure to fully liquidate state-owned enterprises, but his successor, President Mwai Kibaki, implemented the SAPs and further privatized state-owned enterprises.
The SGR project is a prime example of Kenya's confused economic ideology. The project has been criticized for being a costly and potentially loss-making venture, with many questioning its economic viability.
As a result, Kenya's economy remains vulnerable to external influences, and the country's development is hindered by the dominance of private sector interests.
Mr. Chesoli is a New York-based development economist and global policy expert.
