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Economic & Sector Work :: Country Economic Memorandum

Kenya : A Policy Agenda to Restore Growth

ACCOUNTABILITY AGRICULTURAL GROWTH AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE AIR ANTICORRUPTION BENCHMARKING BUDGET CONSTRAINTS BUSINESS ENVIRONMENT CAPITAL INVESTMENT CITIZENS COMMUNICATION TECHNOLOGY COMPETITION POLICIES COMPETITIVENESS CONSUMER PRICE INDEX CORRUPTION COUNTRY AVERAGE CPI CRIME CRIME RATES CROWDING OUT DATA COLLECTION DEBT DEVELOPMENT STRATEGY DIRECT INVESTMENT DONOR AID ECONOMIC DECLINE ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC REFORMS EDUCATIONAL ATTAINMENT EMPLOYMENT ETHICS EXCHANGE RATE EXPENDITURES EXPORTS FARMS FINANCIAL MANAGEMENT FINANCIAL SECTOR FOREIGN INVESTORS FREE PRESS FULL PARTICIPATION GIRLS GOVERNANCE INDICATORS GOVERNMENT EXPENDITURES GROWTH PATH GROWTH POTENTIAL GROWTH PROCESS GROWTH PROSPECTS HEADCOUNT POVERTY HEALTH SERVICES HOLISTIC APPROACH IMPORTS IMPROVING GOVERNANCE INDUSTRIALIZATION INEQUALITY INFLATION INFLATION RATES INSTITUTIONAL QUALITY INSTITUTIONAL REFORMS INTERNATIONAL TELECOMMUNICATIONS INTERNATIONAL TRADE INVESTMENT CLIMATE LABOR COSTS LABOR FORCE LABOR MARKETS LABOR PRODUCTIVITY LAWS LEGISLATION LIFE EXPECTANCY LIVING STANDARDS LONG RUN LONG-RUN GROWTH LONG-TERM GROWTH LOW INFLATION MACROECONOMIC ENVIRONMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MALARIA MARKETING MORTALITY OIL PARLIAMENT PARTNERSHIP PER CAPITA INCOME PERFORMANCE INDICATORS POLICE FORCE POLICY ENVIRONMENT POLICY REFORMS POLICY RESEARCH POLITICAL COMMITMENT POOR MANAGEMENT POOR PERFORMANCE POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY RATES POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIMARY EDUCATION PRIMARY SCHOOL PRIVATE SECTOR PRO-POOR PRODUCERS PRODUCTIVITY PRODUCTIVITY GROWTH PROMOTING GROWTH PROPERTY RIGHTS PUBLIC EXPENDITURE PUBLIC FINANCES PUBLIC INFORMATION PUBLIC INVESTMENT PUBLIC POLICY PUBLIC PROCUREMENT PUBLIC SECTOR PUBLIC SERVICE PUBLIC SPENDING QUALITY OF LIFE REAL GDP REDUCING POVERTY REGULATORY FRAMEWORK RELATIVE PRICES RENT SEEKING RULE OF LAW RURAL AREAS RURAL POOR SAFETY SECTOR REFORMS SOCIAL CONDITIONS STATE ENTERPRISES STIMULANTS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS SUSTAINABLE MANAGEMENT TECHNICAL ASSISTANCE TECHNOLOGY SUPPORT TERMS OF TRADE TIME CONSTRAINTS TRADE POLICY VOTERS WAGES WORLD TRADE ORGANIZATION WTO YOUNG WOMEN COUNTRY ECONOMIC WORK COUNTRY PERFORMANCE ECONOMIC RECOVERY POVERTY REDUCTION STRATEGIES ECONOMIC MANAGEMENT STRUCTURAL REFORMS PRODUCTIVITY GROWTH COMPETITIVENESS POLICY REFORM INSTITUTIONAL REFORM POVERTY INCIDENCE GROWTH PATTERNS HIV VIRUSES BURDEN OF DISEASE MALARIA CONTROL ECONOMIC POLICY DEVELOPMENT ASSISTANCE PROGRAM LENDING STANDARD OF LIVING CAPACITY CONSTRAINTS INSTITUTION BUILDING AGRICULTURAL SECTOR MANUFACTURING SERVICES DELIVERY SECTORAL ASSESSMENT INVESTMENT ENVIRONMENT PRIVATE SECTOR INVESTMENTS
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Washington, DC
Africa | Kenya
2013-07-03T16:56:40Z | 2013-07-03T16:56:40Z | 2003-08-18

This Country Economic Memorandum (CEM) - the first since 1995 - is a contribution to the government's economic recovery strategy, and to its Poverty Reduction Strategy Paper (PRSP), being finalized. It examines Kenya's economic performance during the past decade, and identifies the structural weaknesses that have contributed to the decline in productivity, and the competitiveness of the economy during this period. It also recommends policy, and institutional reforms to revitalize economic growth, and to reduce poverty. The message from the CEM is a sober one: increased poverty is the legacy from almost two decades of slow growth; and, the burden of disease, particularly malaria and HIV/AIDS will constrain growth in the years to come. However, given the improved economic policy environment, the potential for economic growth is significantly better than the poor performance in the 1990s would indicate. But even in our high-case scenario Kenya is unlikely to reach the Millennium Development Goal of cutting in half by 2015 the proportion of Kenyans living in poverty in 1990. Reducing poverty will remain a tremendous challenge. The CEM is organized into six chapters. Chapter 1 reviews recent economic developments, and Kenya's integration with the world economy. Chapter 2 discusses trends in poverty, and focuses on the long term economic factors that affect productivity, and institutional effectiveness. Chapters 3-5 provide detailed analyses of the agricultural, manufacturing, and services sectors, identifying specific cross-sectoral issues, and, recommending policy, and institutional reforms to promote broad-based economic growth. Finally, chapter 6 discusses the investment climate, and its relationship to private sector investment.

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