This archive report was first published on 16 November 2019.
As Kenya's debt crisis deepens, it is imperative that those responsible for the economic mess are held accountable. Acting Finance Minister Ukur Yatani's recent push to raise the country's borrowing threshold to Sh9 trillion is a stark reminder of the government's inability to manage its finances effectively.
On November 6, 2019, the Ministry of Trade, Industry and Co-operatives launched the Kenya Investment Policy and the County Investment Handbook, aimed at streamlining the investment process. However, these documents, while well-intentioned, will not be enough to trigger significant job creation across various sectors.
One of the key issues plaguing Kenya's economy is the lack of a local content requirement for imported goods and manufactured products. This policy, while considered protectionist, is essential for promoting local industries and creating employment opportunities.
South Africa is a notable example of a country that has successfully implemented a local content requirement, with a significant impact on its economy. Kenya, however, has been slow to adopt such a policy, with the presidential directive to use 30% local materials in the housing component of the Big 4 Agenda being ignored due to the lack of a legal framework to enforce it.
Interior Minister Fred Matiang'i, the DCI, and the DPP are making waves by taking decisive action, while President Uhuru Kenyatta can learn from his friend Paul Kagame's approach to governance. It is time for those in power to stop fence-sitting and take concrete steps to address Kenya's economic woes.
