Kenya's Path to Economic Growth: Vetting Ministerial Commitments for FY 2024/2025

Kenya's Path to Economic Growth: Vetting Ministerial Commitments for FY 2024/2025

Deputy Chief of Staff Mr. Eliud Owalo, responsible for Performance and Delivery Management in the Executive Office of the President of Kenya, addresses journalists during the review of ministerial performance commitments for the fiscal year 2024/2025.

By MAXIMILLA WAFULA & PATRICK KIMANZI 

The COUNTY DIARY News 

Business Reporters

This morning, the Office of the Deputy Chief of Staff for Performance and Delivery Management convened at the Ministry of Investment, Trade and Industry (MITI) to review ministerial performance commitments for the fiscal year 2024/2025. The atmosphere was charged with optimism as officials highlighted significant achievements aligned with the Government’s Bottom-Up Economic Transformation Agenda (BETA).

Cabinet Secretary H.E. Hon Salim Mvurya opened the session with a comprehensive overview of the progress made under the BETA initiative. He underscored the importance of the County Aggregation and Industrial Parks (CAIPS) project, which aims to establish 19 industrial parks across the country. This initiative is designed to enhance manufacturing capabilities and attract investments, particularly in agro-industries, thereby driving economic growth at the local level.

A major highlight of the meeting was Kenya’s impressive export growth, which surged from KShs 871 billion in 2022 to KShs 1,008 billion in 2024—a remarkable 15% increase. This boost can be attributed to the successful resolution of trade barriers and the establishment of new export channels, including a groundbreaking Economic Partnership Agreement with the European Union. This agreement allows Kenyan goods tariff-free access to the €18 trillion European market, marking a significant step in expanding Kenya's global trade footprint.

Foreign Direct Investments (FDIs) also saw a dramatic rise, jumping from USD 759 million in 2022 to USD 1,504 million in 2024—an astounding 98% increase. This surge reflects growing confidence among investors in Kenya as a prime destination for investment. Additionally, domestic investments have also experienced substantial growth, contributing to the country’s overall economic vitality.

The Ministry's strategic initiatives include enhancing the textile and apparel value chain, promoting local procurement through the Buy Kenya Build Kenya initiative, and strengthening the e-commerce sector with a newly developed E-commerce Policy. The establishment of Export Processing Zones (EPZs) and Special Economic Zones (SEZs) is also part of the Ministry’s strategy to create jobs and stimulate economic activity.

As the meeting concluded, the commitment to fostering a vibrant and inclusive economy was palpable among the officials. Mvurya reiterated the Ministry’s dedication to building a prosperous future for all Kenyans, emphasizing that the initiatives under BETA are laying a solid foundation for sustainable growth.

With a clear path outlined for the fiscal year ahead, the Kenyan government is poised to continue its efforts to transform the economy, ensuring that the benefits of growth reach all sectors of society. The determination expressed in today’s meeting signals a hopeful outlook for the nation’s economic landscape as it embarks on this ambitious journey.