APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA 4.3 OBJECTIVE ONE: DESIGN AND IMPLEMENT ECONOMIC POLICIES FOR SUSTAINABLE DEVELOPMENT 4.3.1 Summary of the Country Self-Assessment (CSAR) 300. The CSAR outlines the policy framework that anchors the design of economic policies to promote sustainable development. It indicates that the government’s economic policy is drawn from Kenya’s Vision 2030, which is both a vision and a blueprint to transform Kenya into a globally competitive and prosperous country with a high quality of life by the year 2030. The Vision is based on three pillars, namely, the economic, the social, and the political. Under the economic pillar, the aspiration is to secure an average economic growth rate of 10% per annum from 2012 and sustaining it till 2030. This is premised on sustaining macroeconomic stability and interventions in key sectors, specifically, tourism, agriculture, manufacturing, wholesale and retail trade, business process outsourcing (BPO) and financial services. The Vision 2030 is implemented through a series of successive fiveyear Medium Term Plans (MTP), which lay out the priority programmes and projects and the financing framework for the period. 301. The CSAR discusses a wide range of sectoral policies and programmes in the sectors identified as priorities to spur growth and human development. It is noted that agriculture accounts for 24% of national output, 65% of total exports and absorbs the bulk of the workforce (18% of formal employment). The trade sector is also key to the economy. According to the CSAR, it contributed about 10% of GDP in 2008-2012, and is a major contributor (95%) to job creation by the private sector. The manufacturing sector is a key job creator but has remained small. It constitutes only about 12.4% of national output and has grown modestly, at an annual average of 3.2% between 2006 and 2012. Growth of formal employment in the sector was also modest, only 5% between 2008 and 2012. However, informal employment grew faster, by 17% between 2007 and 2011. The Business Process Outsourcing (BPO) and IT-Enabled Services (ITES) is growing and contributes about 7.5% of output in 2013-2014 and added 4,100 direct jobs to the economy in 20102011, against the target of 2,200 envisaged. 302. Tourism is a leading foreign exchange earners in Kenya. In 2008-2012, tourist arrivals rose from 1.2 million to 1.78 million, which saw an increase in earnings from KShs. 52.7 billion to KShs. 96.02 billion. The banking and financial institutions contribute about 10.4% to GDP, while the oil and minerals resources sector currently accounts for only one of GDP and three percent of total export earnings. However, with the recent discoveries of oil, gas, and other mineral resources the sector promises to be a major source of revenue and foreign exchange earner. The Government has scaled up investments in infrastructure in an effort to reduce major constraints on growth. The first Medium Term Plan 2008-2012 for Vision 2030 set strategies and measures to support the development of the infrastructure sector. Kenya aims at providing cost-effective physical infrastructure and ICT facilities and services that are efficient, affordable and reliable, supporting sustainable economic growth through the construction, modernization, rehabilitation and effective management of infrastructure facilities. | 139 |