This archive report was first published on 21 April 2020.
With the suspension of debt payments by leading economies, Kenya is set to save Sh71.5 billion by the end of 2020. This move, made by the G20 and Paris Club creditors, is aimed at helping countries cope with the health and economic impacts of the coronavirus pandemic.
However, Kenya should look beyond the current crisis and utilize the saved funds to accelerate industrialization. This can be achieved by investing in sectors that are already manufacturing personal protective equipment (PPE), such as masks and sanitizers. According to Trade and Industrialisation Cabinet Secretary Betty Maina, over 60 companies have the capacity to produce some of the medical inputs locally.
CS Maina also announced that the government is in talks with the motor sector to start producing ventilators, providing an opportunity for Kenyan companies to step up the manufacturing of inputs to battle the pandemic. The government should underwrite the investment required to manufacture the ventilators, as the pandemic is still in its early stages in Africa and is yet to peak.
With the discovery of a cure or vaccine conservatively estimated to be between 18 months and two years away, the government should also engage the various actors in the medical field to come up with testing kits locally. This could open the door to Kenya eventually becoming a regional pharmaceutical hub.
Related Topics: Debt Relief, Debt, Loans
