Discussion Paper No. 347 of 2024 on The Creative Economy in Kenya: An Assessment of the Policy and Institutional Environment

Abstract

The creative economy, a key priority of the Bottom-up Economic Transformation Agenda, can potentially contribute to the achievement of the Kenya Vision 2030, which underscores the realization of a knowledge-based economy. While it is gaining policy attention, there is a dearth of literature on the creative economy to guide planning and budgeting. This study analyzed the policy and institutional environment for three clusters of the creative economy industries: core creatives (music, stage plays, literature and publications, and visual arts); core cultural creative industries (films and museums); and related industries (fashion design and architecture). To provide a holistic view of the constraints facing this industry, a value chain approach was used to assess policy and institutional gaps. The concentric circles model guided in clustering the creative economy activities. This clustering was then subjected to value chain analysis covering the creation, production, dissemination, exhibition, and consumption of the creative products. The analysis revealed several policy initiatives aimed at nurturing and supporting the various creative industries, notably skills development, infrastructure, and institutional support. However, gaps exist in all creative industries, key among them being skills and training gaps, especially business skills for creatives, and inadequate training opportunities for the emerging creative sectors. There are also limitations of creative infrastructure. Creative infrastructure is largely provided by the private sector, with little coordination and mapping, and who may not meet the necessary needs and requirements of creative artists. Funding is also a constraint for creative industries. Financing mechanisms are not well designed to address the unique characteristics of the creatives, such as the high level of informality, low collateral base and a weak framework for valuation of creative assets. The challenges in accessing the essential tools and raw materials have also been established as constraints for certain creative industries, such as book publishing, fashion, and visual arts. These same creative industries are also faced with high production costs. Performing arts and film industries would benefit from an archiving policy, which is yet to be developed. Other policy gaps include lack of a national language policy or a policy for the promotion of cultural festivals. There are, however, several draft policies that may offer appropriate policy interventions but were not yet operational at the time of undertaking this study. These include the draft Film Policy, the draft Music Policy, and the draft Creative Economy Policy. On the legislative front, there are draft laws aimed at addressing some legislative gaps. These are the Culture Bill, Heritage and Museums Bill and the Kenya National Library Service Bill.