After independence, Kenya promoted rapid economic growth through
public investment, encouragement of smallholder agricultural production,
and incentives for private often foreign industrial investment. Gross
domestic product (GDP) grew at an annual average of 6.6% from 1963 to
1973. Agricultural production grew by 4.7% annually during the same
period, stimulated by redistributing estates, diffusing new crop
strains, and opening new areas to cultivation. Between 1974 and 1990,
however, Kenya's economic performance declined. Kenya's inward-looking
policy of import substitution and rising oil prices made Kenya's
manufacturing sector uncompetitive. The government began a massive
intrusion in the private sector. Lack of export incentives, tight import
controls, and foreign exchange controls made the domestic environment
for investment even less attractive.
From 1991 to 1993, Kenya had its worst economic performance since
independence. Growth in GDP stagnated, and agricultural production
shrank at an annual rate of 3.9%. Inflation reached a record 100% in
August 1993, and the government's budget deficit was over 10% of GDP. As
a result of these combined problems, bilateral and multilateral donors
suspended program aid to Kenya in 1991.
Throughout these first three decades of independence, Kenya's parastatals,
partly from a lack of expertise and endemic corruption, largely
inhibited economic development. In 1979, a presidential commission went
as far as saying that they constituted "a serious threat to the
economy"; a decade later, they had still not furthered industrialisation
or fostered the development of a Black-Kenyan business class.The backbone of the country's private-sector success was provided by Asian Kenyans;
during the colonial period, it was they who had created their country's
internal market, and then dominated internal trade. British colonizers
instituted segregation based on skin colour: Whites were first-class citizens, Indians (who had been brought to Kenya to work on the East African Railway as slaves, were second-class citizens, and native Kenyans were third-class citizens.Today we are still slaves to west an east .Our president Hon UK must have been misled to think that engaging in bilateral trade is enough to spur the economic growth in this nation,we need to see all the players in the economy working.Provide a conducive environment ,soft loan that are affordable rather than the much said uwezo fund which today no one has ever accessed it.
As a result initiatives that are realistic should be set to enable the potential entrepreneurial youths and existing businesses owned to be expanded . Today as we talk South Africa has the economy which is six times the Kenyan one.Unless we come face to face with corruption and deal with it well never see light ,vision 2030 is here and we still dont see anyyhing to smile about.
