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Future S e a r c h
Bulletin of the Institute of Economic Affairs. Issue 7, November 2007
It is important to note that a vision document and a party manifesto are inherently The IEA is a civic forum which seeks to
different. The former usually is a personalized inspirational statement that highlights the promote pluralism of ideas through
main hinges on which policy should turn, guided by a candidate’s values and world view. open, active and informed debate on
However, vision 2030 being a presidential directive, has benefited from state machinery i.e. public policy issues. The IEA is
financial, human, technical etc and therefore has an edge over the others. Whereas the independent of political parties,
pressure groups and lobbies, or any
nature of vision 2030 is such that it would provide a framework for post ERSWEC—
other partisan interests.
Economic Recovery Strategy for Wealth and Employment Creation and is thus referred to
as a country vision that is detached from any political party, IEA-Kenya in this bulletin Written by:
would like to affiliate it to Hon. Mwai Kibaki. We argue that were he to win elections, his Wallace Kantai
government would use vision 2030 as the basis for long term planning and policy strategy
Edited by:
for the future of the country. The fact that the opposition was not involved reinforces the Katindi Sivi and Kwame Owino
fact that only a Kibaki presidency would adopt and implement the proposals provided
therein. Published by:
Institute of Economic Affairs,
A party manifesto on the other hand takes an institutional form, outlines prospective Futures Programme
5th floor, ACK Garden House
legislation and details the strategic direction the winning party will take should they win
P.O Box 53989,00200
sufficient support in an election to serve in government. Despite these differences, one,
Nairobi Kenya
usually the vision should inform the other i.e. the manifesto. The tragedy in Africa’s
Tel: 2721262, 2717402 Fax: 2716231
leadership however is that vision statements are usually substituted for platitudes. Winning
E-mail: admin@ieakenya.or.ke
parties also have a tendency to either ignore, indefinitely delay, or even outrightly reject Web page: www.ieakenya.or.ke
manifesto policies which were popular with the public before elections. Instead personal
idiosyncrasies, biases, and preferences of the leader have tended to become significantly Chief Executive: Margaret Chemengich
more important. Board of Directors: Ms. Betty Maina
(Chairperson), Mr. Evans Osano, Mr.
It is from the foregoing that IEA-Kenya has found it necessary to interrogate vision 2030 by; Duncan Okello, Ms. Caroline Kigen, Ms.
undertaking a SWOT analysis of the vision document to identify the underlying Muthoni Wanyeki, Mr. Gerald Macharia,
assumptions and comment on their legitimacy/whether they are factual; analyze the vision’s Mr. John Kashangaki
relevance to the current state of Kenya and to the emerging trends; review the applicability
of the vision/ implementation strategy i.e. whether practical, sustainable as well as review
Page 2 The Future Search
policy and financing concerns and strategies. The analysis also assesses whether the vision document informs the party
manifesto or whether there are any interlinkages or contradictions. It is envisaged that the work will enable Kenyans better
understand vision 2030 and PNU’s strategy. The work will also raise critical questions that the party and the candidate
should consider reviewing.
Overarching vision
A globally competitive and prosperous
nation with a high quality of life by 2030
Vision
Strategy
Social
Economic Political
A just and cohesive
To maintain a sus- An issue-based, people-
society enjoying equita-
tained economic centered, result-
ble social development
Plans and growth of 10% p.a. oriented, and account-
in a clean and secure
implementation over the next 25 years able democratic politi-
environment
cal system
The reasoning behind launching the Vision, and the targets set, is partly an acknowledgement that Kenya has lost four
decades of growth. The oft-touted maxim is that Kenya and Malaysia were at a similar stage of development in the mid-
1960s. Prof. Peter Anyang’ Nyong’o has also stated that Malaysia’s administrators – the ones who guided the country to
its current state of development – were actually trained at Nairobi’s Kenya Institute of Administration. There is also an
implicit emphasis that Kenya can and should be a middle income country, if only we harnessed our true potential. After
Thomas Friedman, the New York Times columnist, proclaimed Kenya a nascent African ‘Tiger’, reminiscent of the
Asian Tiger successes, we got so caught up in the adulation that our national discussion for a while became what the
geographically appropriate appellation was for us – whether to be an African ‘Lion’ or other powerful big cat.
There are three tactical, as opposed to content, weaknesses inherent in the Vision.
Page 4 Issue 7
thing.
1. Is the Vision transition-proof? 2. Are we aiming at a moving target?
Vision 2030 was launched in an election year, which is why it Again, there are two elements to this. We are aiming at be-
is strange that it is deficient in its strategy for ensuring longev- ing a medium income nation by the Vision’s end-date,
ity beyond the current political set-up. Whereas no political which is 2030, and we have proclaimed sustained 10% eco-
party or head of state likes to contemplate their electoral de- nomic growth as being the strategy that will get us there.
feat, a self-proclaimed long-term blueprint should have been However, middle income status is a comparative measure,
made ‘transition-proof’. This may have meant that the politi- and there is no intrinsic guarantee that growing at our
cal opposition would be co-opted in the formulation of the aimed rate will get us there. We may overshoot the target,
Vision, ensuring ‘buy-in’ and ownership. Admittedly, this is a especially if global growth slows and we become one of the
difficult undertaking in a poisoned political atmosphere, but fastest growing economies in the world. This would, obvi-
the effort would have meant that the Vision would survive ously, be a good thing. However, we may undershoot the
political transitions. target, if our competing peers outgrow us. We may find our-
selves running faster and faster just to keep the same posi-
There are two causes of this problem. First is the situation in tion on the treadmill.
Kenya. Any long-term thinking has been filtered through the
prism of constitution making, which has been irreversibly The second element is perhaps more serious. Whether it is
polarised. Hardline positions, which were set in stone at the fair or not, a certain consensus is congealing globally that
2005 Constitutional Referendum, meant that any long term perhaps unrestrained growth is not an unreservedly positive
plans proposed by one side of the political divide were of thing. There seems to be a movement that is proclaiming
necessity received with suspicion, and the Vision is no differ- that the growth mantra has led to potential environmental
ent. and climatic calamity. As more and more people, especially
in the developing world, reach for the brass ring of a middle
Secondly, the countries which we seem to be seeking to emu- class lifestyle, with a car, a washing machine, refrigerator
late, such as the Southeast Asian countries, went for long and television set, the world gets closer and closer to its car-
periods of rule under autocratic governments. Malaysia, our rying capacity. While most of this opprobrium is directed at
benchmark country, has been ruled by the same party, the China and India, with its billions of people, we may get
United Malays National Organisation (UMNO) for decades caught up in the undertow of the movement, and 10%
and into the foreseeable future. Political consensus under growth may become as unacceptable as a new coal power
such a system is easy enough to achieve, unlike in a raucous, plant.
active democracy such as ours.
3. The selling process has been deficient
There is a silver lining in this particular cloud, however. At A vision of this scope and this ambition needs ownership by
the time of this review, political campaigns are in full swing, the entire country, and needs to be incorporated in individ-
and all three leading Presidential contenders, President Ki- ual and corporate planning. However, the selling process of
baki, Hon. Kalonzo Musyoka, and Hon. Raila Odinga, are the Vision has not been up to scratch. A certain proportion
making all the right statements with regard to their intent for of the general public may have heard of the Vision, in its
the economy. If anything, they are castigating the current relation to certain projects, or as espoused from political
government for not being ambitious enough, and for con- pulpits. This process, though, is nowhere near adequate to
gratulating itself on growth rates that are much too low to ensure public approval, and public ownership. A good start
ensure that this rising tide lifts all boats. The opposition could be a branding exercise. The flagship projects proposed
presidential candidates are also using social equity issues as a under the Vision, some of which have already kicked off,
stick to pummel the government with. They emphasise that would serve as excellent billboards for the Vision, ensuring
obsession with growth numbers should not obscure the fact that Kenyans knew what the Vision was all about and what
that social equity is just as desirable an outcome of growth. it was trying to achieve.
The Vision proclaims one of its aims as building ‘a just and
cohesive society with social equity in a clean and secure envi- A concentrated public relations exercise should be under-
ronment’. All the candidates seem to be saying the same taken, throughout the life of the Vision to ensure success.
Vision 2030 aims at ‘making Kenya a newly industrialising, Tourism could also be affected. The Maasai Mara, which is
middle income country providing high quality life for all its Kenya’s chief tourist draw, is already showing signs of cli-
citizens by the year 2030’. matic stress, including the drying of rainy seasons and change
in weather patters. Most of Kenya’s tourist attractions are
The Vision rests on three pillars: The economic pillar that composed of very intricate ecosystems that can and will get
aims at sustained 10% economic growth to deliver an econ- upset by the imminent change in climatic patterns.
omy that can maintain its citizens at a comfortable standard
of living. The social pillar aims at a cohesive, peaceful society Energy Costs
that can sustain itself environmentally. The political pillar Kenya is a net petroleum energy importer, and thus vulner-
pursues a mature political system – one that ensures the pro- able to changes in international energy costs. As an illustra-
tection of rights and freedoms of individuals within Kenyan tion, the oil price between 2006 and 2007 has increased by
society. well over 50% in nominal terms, and the Kenyan economy
will absorb this entire cost. There is no reason, however, for
The Vision statements, as well as some of its details, seem this to be the case. Kenya had a thriving alternative fuel in-
simple and practical enough to be implementable. The em- dustry in the 1970s and 1980s (those of a certain age will
phasis on short and medium term goals ensures that there remember filling up with ‘gasohol’). We can reclaim this
can be little complacency in trying to accomplish the Vision. lead. We should also not be afraid of pursuing technologies
such as nuclear power (South Africa is a global leader in re-
International Risk Factors search into pebble bed nuclear power plants). Geothermal
energy, coal-to-oil, wind and solar power can also be national
One crucial element the Vision seems to lack, however, is winners. Setting up wind and solar farms in the otherwise
cognisance of certain global factors. We have already made desolate north could solve our energy needs as well as mak-
reference to possible global sentiment militating against unre- ing us global leaders in this kind of energy research.
strained growth. Others include:
The Economic Pillar
Climate Change and its Effects
The biggest issue that will face us in coming years will be cli- The individual elements of the economic pillar are also partly
mate change. Kenya, unfortunately, lies in a very vulnerable commendable, and partly susceptible to certain structural
climatic zone. Even at present, 84% of the country’s land is and conceptual weaknesses.
composed of arid and semi arid land. Climate change has
been projected to further dry out the country, with deleteri- Tourism
ous effect. The Vision and its accompanying strategies acknowledge the
need to increase tourist numbers, as well as to alter our tour-
Firstly, agriculture, which is one of the key sectors of the ist offerings. It is evident that Kenya has been relying on a
economy, will be deeply affected, with a change in growing product that is losing its sheen. Our attraction continues to
seasons, and likely drops in yields. Unless we drastically be based on beach and bush safaris attracting long-haul tour-
change the forms of agriculture we undertake, away from ists from Western Europe. However, our competing destina-
unskilled, low level, small scale subsistence agriculture, to tions, principally South Africa, have diversified their product
more mechanised and irrigated farming, the system will be to include the shopping experience, sports and business tour-
unable to cope. This would obviously not only negatively ism. They are also aggressively marketing their product to
affect value increase in agriculture, which is a stated aim of visitors from closer home. We have all been exposed to mes-
the Vision, but also drastically affect food security, which is a sages about visiting South Africa for the shopping experi-
crucial component of any social security aim of the country. ence. Many Kenyans who have been to South Africa have
probably been there primarily for business reasons, especially
Secondly, increasing aridity brought about by climate change conferences. While we shouldn’t be aiming at direct competi-
could mean increased conflict, both within the country and tion for this market, there is something to be said for diversi-
involving neighbouring countries, which are more climati- fying our offering. Attracting sports tourism, especially
cally vulnerable than ours. As it is now, there have been around events such as the rugby Safari Sevens tournament,
clashes in the country’s northern regions over water, which is the Nairobi Marathon, and cricket tours (which would open
a manifestation of the vulnerability of the whole region. us to the increasingly lucrative Asian markets), would go a
The drying out of Lake Victoria, due to both climatic and long way in helping us reach our numbers. The football
human use causes, should be emphasised and mitigated World Cup, which is taking place ‘down the road’ in South
against. The lake is too important for both economic and Africa, can also be used as a key marketing vehicle.
social reasons to be ignored.
Page 6 Issue 7
The idea of home stay sites should be upgraded to include the budget and public policy. Education ensures that any gains
incorporation of bed-and-breakfasts, which offer a different we aim at will be maintained.
experience from the more industrial-feeling chain hotels. This
is a concept that is very successful in other markets. The Vision aims at providing globally competitive quality
education, training and research and development. It is
Trade obvious that an insular education system does little good in
Kenyans are inveterate traders. Stories are legion of people preparing the country’s workers to be globally competitive.
hopping onto planes to Dubai and other destinations to pick However, there are elements in the education component
up trinkets to sell in exhibition stalls. The Vision acknowl- that seem not to have been thought of:
edges this, and speaks of ‘bringing Dubai to Kenya’, which is
key in attracting the trade dollars of Africans. While we love to First, where is the acknowledgement that education plays a
trade, we do not hold a candle to West Africans, who fill up central role in fostering national culture, as well as national
entire planeloads on shopping expeditions. There is no reason identity? Some people claim that as we allow foreign educa-
why they should not have Mombasa as their destination. tion systems to proliferate at primary and secondary levels,
we lose the opportunity to foster a national identity and
Formalisation of the retail chain should also include the crea- cultures. There is an increasing number of schoolchildren
tion of fresh produce markets, which would maintain our ac- who do not encounter elements of our national identity at
cess to our enviable quality of fresh produce, but will also in- any stage of their schooling, meaning that any cohesiveness
crease profits to producers. we espouse as a national aim will simply be lost.
Business Process Outsourcing Second, there is need to acknowledge that the free market
Again, this is a good idea, which seeks to diversify our econ- in education that currently exists is detrimental to our na-
omy. The BPO wave has washed over countries like India to tional aims. Especially at tertiary level, institutions of dubi-
great profit. We are seeking a piece of this growing pie, and we ous provenance and quality proliferate, offering courses
want to take advantage of our education, English skills and that have little purpose in our economy. Students spend
time zone advantages. cumulative millions earning worthless certificates, and so
both lose time spent in these ‘colleges’ and ensure that they
Again, though, we need to take notice of our potential com- cannot gain employment on the basis of this training.
petitors, who are making similar moves. Countries such as Unless these are brought to heel, and fast, we will continue
Ghana offer just about the same advantages we do, and we losing money, and students will continue to waste time.
need to differentiate ourselves to mitigate against this kind of
competition. For example, we have a growing pool of skilled There is a need to incorporate higher level adult education
computer programmers, which other African countries lack. in the Vision. This is not the traditional ‘ngumbaru’ educa-
This could form part of our competitive advantage, instead of tion, which seeks to impart literacy and numeracy skills.
our just concentrating on the call centre business. Higher level ICT skills are important for a growing, chang-
ing economy, and these skills need to be acquired, con-
Increasing the Savings Rate stantly, at all stages in life. A national programme for im-
This is a central tenet of the Vision, primarily because of its parting these skills should be incorporated into the Vision.
impact on investment. The more savings can be encouraged – Additionally, the deep thirst for acquisition of university
from the current rate of 17% to at least 30% – the more funds education, as seen in overflowing enrolment rates in paral-
can be freed up for investment. What is not acknowledged, lel degree courses, should be incorporated into the vision.
however, is that part of the reason savings rates are so low is Thankfully, university education is starting to be divorced
the absence of formalised social security systems. Education, from age, and people are acquiring a university education at
health and emergencies for most Kenyans tend to be financed all ages. This should be encouraged.
directly from the pocket, which means that Kenyans save less Fourth, a frank discussion needs to be undertaken about
and less. The Vision acknowledges that there needs to be a the tradeoffs between increasing enrolment rates in educa-
National Health Insurance Scheme, which will mean that tion and the need to provide a quality service. Equipment
more people access health without resorting to private funds. shortages need to be catered for. It is useful to note that the
There may be a need for establishment of more social security Vision foresees the hiring of 28,000 additional teachers,
systems, including some form of unemployment insurance which should help in improving quality as enrolment rates
(whether through the private or public sectors). go up.
we stopped treating sports as a social activity, and incorpo- setups in recent times and crimes committed in the name of
rated it into our economic plans. politics remain malignant issues that can eat away at the Ken-
yan polity, unless they are acknowledged and solved.
Gender and Youth
While it is all very good to acknowledge the need to have Security, peace-building and conflict management needs to
greater representation of women in Parliament, and for both acknowledge the role played by economic factors in crime.
women and youth to access funds for development, there The hard choices need to be made, such as reaching a bal-
needs to be further appreciation of the fact that these social ance between the nomadic pastoralist lifestyle and diminish-
roles are also a result of culture, and a culture change needs ing resources, which often lead to conflict. Also, a market
to be instituted. How, for example, will the economy harness based economy tends to be more and more individualistic,
the remarkable energy of the youth? Where are the plans to and often more and more unequal. What balances can we
encourage skills transfer and generational transitions at all reach in ensuring we do what we set out to?
levels of society, including in business and politics? Where
are the incentives for political parties, for instance, to have Other issues
vibrant youth wings which will provide the country with its There are a few other issues that may need to be incorpo-
next generation of political leadership? rated into the Vision. These include: