Kenya Economic Report 2013 on Creating an Enabling Environment for Stimulating Investment for Competitive and Sustainable Counties

Abstract

The Kenya Economic Report (KER) 2013 is the fifth in a series of annual reports on the Kenyan economy prepared by the Kenya Institute for Public Policy Research and Analysis (KIPPRA). The KER 2013 analyses Kenya’s recent economic performance and medium term prospects. The theme of KER 2013 is “Creating an Enabling Environment for Stimulating Investment for Competitive and Sustainable Counties”. This is timely as the implementation of the devolution process continues to gather momentum. The Constitution of Kenya and the County Governments Act No. 17 of 2012 envisage that the 47 county governments will play an important role in Kenya’s economic development. The report underscores the need to build effective and capable county governments that will deliver on their constitutional mandates. Effective coordination and cohesive intergovernmental relations are required to especially support effective public financial management, leveraging partnerships, infrastructure and human resource development, growth of micro and small enterprises and land adjudication. The Kenyan economy is on a strong recovery path, and the medium term prospects are positive, predicated on smooth transition to devolved governance system, continued implementation of the reform agenda as outlined in the Medium Term Plan and Vision 2030, regional stability and security, favorable weather conditions and a stable global economic environment. Nonetheless, the government needs to maintain flexibility in order to effectively respond to the changing policy environment…