Kenya Economic Report 2012 on Imperatives for Reducing the Cost of Living in Kenya

Abstract

The Kenya Economic Report 2012 is the fourth in a series of annual reports on the Kenyan economy prepared by the Kenya Institute for Public Policy Research and Analysis (KIPPRA). The report was prepared in consultation with the Ministry of Planning, National Development and Vision 2030; Ministry of Finance; and the Central Bank of Kenya in conformity to the KIPPRA Act No. 15 of 2006. It was prepared against a backdrop of generalized upward spiral in the cost of living across the globe, which led to social unrest in many countries, and hence the theme Imperatives for Reducing the Cost of Living in Kenya. The report targets policy makers, legislators, and anyone interested in understanding Kenya’s economy. The Kenya Economic Report 2012 has four parts, which can be read independently. Part I covers the macro and socio-economic performance of the economy. It incorporates discussion on governance, population, the labour market, poverty and inequality, health, and education. Part II of the report covers performance in selected sectors and policy issues. These sectors include agriculture, manufacturing, micro and small enterprises (MSEs), tourism, financial services, foreign policy, and infrastructure and economic services. Part III presents medium term prospects, with discussion of current trends across sectors and focus on a three-year projection of key macroeconomic variables, including growth and inflation, poverty, education, health, agriculture, tourism, and energy. Part IV discusses the imperatives for reducing the cost of living in Kenya. This part also provides conclusions and policy recommendations.