Kenya Economic Report 2011 on Transformative Institutions for Delivering Kenya Vision 2030

Abstract

The Kenya Economic Report (KER) 2011 is the third in a series of annual reports on the Kenyan economy prepared by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) pursuant to the KIPPRA Act No. 15 of 2006. The report is prepared in consultation with the Ministry of State for Planning, National Development and Vision 2030; Ministry of Finance; and the Central Bank of Kenya. Improvements in Kenya’s economic outlook in 2010 need to be looked at in the context of looming dangers arising from rising global energy prices, food security challenges, and a burgeoning current account balance. These circumstances will have implications on not only the ability to achieve Vision 2030 targets but also the effectiveness with which to implement the Constitution. Part I of KER 2011 provides an analysis of the macroeconomic and socioeconomic performance of the country and provides policy recommendations aimed at enhancing economic growth and reducing poverty. Part II reviews sectoral performance and makes recommendations for changes in light of the ongoing constitutional and administrative reforms. It looks at the medium-term prospects of the various sectors and makes recommendations for reforms to ensure that these prospects are achievable. Part III discusses the transformative institutions for delivering Vision 2030. It benchmarks Kenya’s institutions in the context of Kenya’s development imperatives and the need to pursue smart and inclusive growth, while pursuing global competitiveness. It selectively reviews macroeconomic management, human resource development, and tourism, and reflects on the institutional change imperatives. Part IV focuses on conclusions and makes broad recommendations on the goals and mechanics of institutional reform in Kenya, which will ensure achievement of smart, inclusive and broad-based growth as envisioned by the Constitution of Kenya 2010.