Buy Kenya-Build Kenya Strategy 2017

Abstract

Kenya has pursued export oriented economy which has seen the introduction of diverse export incentives and regimes. The export incentives have led to rise in manufacturing for exports especially in the targeted sectors. Although the incentive regime seems to have achieved positive results, the lack of strong complementary efforts to mitigate against un-coordinated imports into the country has reversed the gains made. Whereas the export driven focus has led to the increase of manufacturing capacity and contribution to GDP, local consumption has been suppressed due to limited initiatives geared towards promotion of local consumption. This has left the country exposed to the vagaries of uncoordinated import inflows to fill the created gap. The rise in imports has resulted into negative balance of payments over time. The Governments’ efforts towards creating an enabling business environment through business environment reforms has been acknowledged as an important pre-requisite for stimulating a public and private sector response that leads to economic growth, and ultimately employment and income generation. There is however need to adopt a balanced approach to economic liberalization with a view to supporting the production, purchase, supply, and consumption of locally produced goods and services.