It’s very exciting that Kenya has been able to regain its status as the biggest economy in eastern Africa edging out Ethiopia with an impressive growth of Sh17.18 trillion.
The country is now ranked 14th in Africa in terms of GDP per capita that stands at Sh320,840.
Ethiopia is ranked at 28th position out of the 44 countries listed in the latest ranking by the International Monetary Fund. This is partly due to the devaluation of the Ethiopian Birr in order for the country to access funding from the Brettonwoods institution.
Such development signals the bearing of fruits of policies that the Kenya Kwanza administration instituted at the beginning of the fifth administration, though painful. Inflation remains at an all-time low thus helping reduce the cost of commodities such as food for most households.
In fact, the cost of electricity has reduced by at least 25 per cent in the last few months as a result of these measures. It’s also true that the cost of a mortgage has also gone down by 6.2 per cent thus helping more Kenyans to own homes.
President Ruto’s visit to China has seen him address two critical issues that are important to the progress of our country.
To begin with, he has championed for the reform of the international financial systems in order to favour the Global South, especially due to the recent of the trade tariff wars.
It is true that the post-World War II international financial architecture favours the Global North to the detriment of many countries in the South.
President Ruto gave a lecture at Peking University, where he highlighted these concerns that need a concerted effort in order for them to be addressed.
The President also addressed a meeting on climate justice in transition that was hosted by the UN Secretary General Antonio Guterres and the President Lula Da Silva of Brazil.
As a champion for climate justice in Africa, the head of state has been consistent in his quest to ensure that the continent gets its fair share of opportunities.
Due to the stable economic environment that the government has been able to create, through the Belt and Road Initiative, the President has been able to secure funding for the extension of the Standard Gauge Railway to phases 2B and 2c.
This will help to open up our markets for our products, goods and services within the East African region. The dualing of the Rironi-Mau Summit highway will also reduce the congestion on that road, especially during festive seasons.
This is in addition to the dualling of the Northern Bypass, something that will spur economic growth along the road, by easing traffic congestion in Nairobi as a whole, especially now that this project will also including the dualling and connection of Kiambu road to the bypass.
The Nithi Bridge has been a nightmare and it requires a minimum of about Sh5 billion. This funding has now been secured, thus saving many lives that end up being lost at the killer black spot for so many years.
Further the newest city of Eldoret that attained this status in July last year will also have an Eastern Bypass, in addition to the dualling of the Eldoret City, Maili Tisa road.
The Mosoriot- Moiben –Marura Centre road will also be constructed. On investments, the President has been able to sign business agreement amounting to more than Sh130 billion, which will lead to the creation of more than 30,000 jobs in hotel, textile, steel, poultry, transport and manufacturing sectors.
For example, the Shandong Jialejia poultry and feed plant in Kajiado will have more than 500,000 hens at a go, creating 500 jobs, at an investment cost of Sh3.9 billion.
The Zanken Group will invest Sh52 billion in the growing of Aloe Vera, grapes and apples in Baringo County. Another company that will set base in the Murang’a Special Economic Zones 20 hectares piece of land will lead to the local production of smart traffic components.
The China WU YI Company will invest Sh19.5 billion in the Kikambala Special Economic Zone in the fields of manufacturing, processing and warehousing, thus creating up to 5,000 jobs.
The Rongtai Steel Company is set to invest Sh13 billion in Lukenya, Machakos County, employing more than 3,000 Kenyans. Some hotels such as Intercontinental and Hilton are set for a facelift and revival, as the Huatian Hotels group has shown interest in acquiring them at a cost of Sh3 billion.
There is also a textile and solar power company exploring investments in Murang’a and Athi River SEZA at an initial cost of Sh2.6 billion, which shall be up-scaled to Sh39 billion in 10 years’ time.
It’s important to not only put your vision into paper, but also take deliberate action to implement it. The Beta plan envisioned a robust industrialisation turnaround strategy since the ratio of the manufacturing sector to the GDP was shrinking. This is clearly changing slowly but surely, one factory at a time.
