Policy Brief No. 02 of 2006 on Enhancing the Role of Development Finance Institutions in Kenya’s Development Process

Abstract

Development finance is vital in the implementation of government development strategy. For example, when me government earmarks the private sector as the engine of economic growth in the Economic Recovery Strategy for Wealth and Employment Creation (ERSWEC), it expects the private sector to expand and grow in order to create wealth and alleviate poverty. However, growth of private sector is dictated by, among other things, the ability to grow business and investment. While shortterm financing meets some needs of the private sector, development finance is required for long-term investment and economic growth.