Kenya Economic Stimulus Program
Encyclopedia
The Kenya Economic Stimulus Program (abbreviated as ESP) was initiated by the Government of Kenya to boost economic growth and lead the Kenyan economy out of a recession situation brought about by economic slowdown.
The Kenyan ESP was introduced in the 2009/2010 Budget Speech in parliament by Finance Minister Uhuru Kenyatta
. Its aim was to jumpstart the Kenyan economy
towards long term growth and development, after the 2007/2008 post election violence
that affected the Kenyan economy, prolonged drought, a rally in oil and food prices and the effects of the 2008/09 global economic crisis.
The stimulus was made necessary by the decline in the economic growth rate
from 7.1% in 2007 to 1.7% in 2009.
The total budget allocated amounted to 22 Billion Kenya Shillings (260 million US$), with the money going towards the construction of schools, horticultural markets, jua kali sheds and public health centres in all the 210 constituencies
.
2. Invest in long term solutions to the challenges of food security
3. Expand economic opportunities in rural areas for employment creation;
4. Promote regional development for equity and social stability;
5. Improve infrastructure and the quality education and healthcare;
6. Invest in the conservation of the environment;
7. Expand the access to, and build the ICT capacity in order to expand economic opportunities and accelerate economic growth.
.
Activities covered under the ESP include:
Overall Leadership - Deputy Prime Minister & Minister for Finance
Technical Working Group - Chaired by the Permanent Secretary to the Treasury, composed of Senior Treasury Officials in the Ministry of Finance.
ESP Secretariat - Officers from Budget Supplies and Economic Affairs departments
Project Implementation Units – Implementing respective Line Ministries of Health, Public Works, Education and Local Government
Stimulus Project Management Committee (SPMC) - Established by the Constituency Development Fund Committees (CDFC) at the constituency level.
Constituency Projects Tender Committee (CPTC) - Adopted from The District Project Tender Committee
’ shed per constituency. Development is to take place in phases and is envisioned to facilitate participation of youth as artisans and entrepreneurs in massive social infrastructure projects and construction works at constituency level.
The project is being led by the Ministry of Industrialization. District industrial development officers are being assisted by field officers from Kenya industrial Estates and Kenya Industrial Research Development Institute to roll out the project at the constituency level.
• Upgrading of two primary schools per constituency and equipping with water harvesting and underground water storage facilities
• Construction of a secondary school as a center of excellence per constituency
• Additional 10,500 primary school teachers Recruitment on contract
• Additional 2,100 secondary school teachers recruitment on contract terms.
• Tree planting project in 20 schools per constituency.
• Purchase of a mobile digital laboratory per constituency.
The implementing agency is the Ministry of Education Kenya. School management committees are to oversee implementation in primary schools
and Board of Governors
in secondary schools
.
• Construction and equipping of a health centre in every constituency
• Employment of 20 nurses on contract level per constituency
• Purchase 5 motor cycles and 20 bicycles for community health workers
The ministry of Public Health and Sanitation and KEMSA are lead implementing agencies.
Ministry of Agriculture Kenya, Ministry of Water and Irrigation, Ministry of Regional Development and Ministry of Youth Affairs are lead agents in this project.
The Ministry of Fisheries Development is the lead agent.
This project is led by the Office of the Deputy Prime Minister and Ministry for Local Government.
The Kenyan ESP was introduced in the 2009/2010 Budget Speech in parliament by Finance Minister Uhuru Kenyatta
Uhuru Kenyatta
Uhuru Muigai Kenyatta is a Kenyan politician, currently serving as Deputy Prime Minister, Minister for Finance and MP for Gatundu South Constituency. He is the Chairman of Kenya African National Union , the former ruling party, which is currently part of the Party of National Unity...
. Its aim was to jumpstart the Kenyan economy
Economy of Kenya
Kenya's economy is market-based, with a few state-owned infrastructure enterprises, and maintains a liberalized external trade system. The country is generally perceived as Eastern and central Africa's hub for Financial, Communication and Transportation services...
towards long term growth and development, after the 2007/2008 post election violence
2007–2008 Kenyan crisis
The 2007–2008 Kenyan crisis refers to a political, economic, and humanitarian crisis that erupted in Kenya after incumbent President Mwai Kibaki was declared the winner of the presidential election held on December 27, 2007. Supporters of Kibaki's opponent, Raila Odinga of the Orange Democratic...
that affected the Kenyan economy, prolonged drought, a rally in oil and food prices and the effects of the 2008/09 global economic crisis.
The stimulus was made necessary by the decline in the economic growth rate
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
from 7.1% in 2007 to 1.7% in 2009.
The total budget allocated amounted to 22 Billion Kenya Shillings (260 million US$), with the money going towards the construction of schools, horticultural markets, jua kali sheds and public health centres in all the 210 constituencies
Constituencies of Kenya
Constituencies of Kenya are used to select members of the Kenyan parliament. Currently there are 210 constituencies in Kenya. However, following the promulgation of the new constitution, the number of constituencies are to be increased to 290...
.
Key Objectives
1. Boost the country’s economic recovery;2. Invest in long term solutions to the challenges of food security
3. Expand economic opportunities in rural areas for employment creation;
4. Promote regional development for equity and social stability;
5. Improve infrastructure and the quality education and healthcare;
6. Invest in the conservation of the environment;
7. Expand the access to, and build the ICT capacity in order to expand economic opportunities and accelerate economic growth.
Intervention Measures
The choice of intervention measures of the ESP are framed within broader policy objectives, as stipulated in the Vision 2030, (the current national development blue-print. Agenda 4, and the Constitution of KenyaConstitution of Kenya
The 1963 Constitution of Kenya was drawn up at independence. This constitution, heavily indebted to English law, had already been amended more than 30 times by 2010, but was widely agreed to require a major overhaul...
.
Activities covered under the ESP include:
- Expansion of irrigation-based agricultureIrrigationIrrigation may be defined as the science of artificial application of water to the land or soil. It is used to assist in the growing of agricultural crops, maintenance of landscapes, and revegetation of disturbed soils in dry areas and during periods of inadequate rainfall...
, - Construction of wholesaleWholesaleWholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
and fresh produce markets, - Construction and stocking of fishponds with fingerlingsFingerlings-External links:*...
, - Provision of aquacultureAquacultureAquaculture, also known as aquafarming, is the farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants. Aquaculture involves cultivating freshwater and saltwater populations under controlled conditions, and can be contrasted with commercial fishing, which is the...
advisory services, - Construction of ‘juakaliJuakaliJuakali is a singer and MC from Trinidad. He is known primarily for his musical output in the dubstep and reggae genres. Onstage since the age of 14, Juakali started his career as a dancer and, at one stage, a poet. He has released two albums...
’ sheds - Tree planting
- Construction of social infrastructure such as schools, health centers and roads.
Governance Structure of the Economic Stimulus Programme
The ESP is governed by the Ministry of Finance, with the Minister for Finance as the overall leaderOverall Leadership - Deputy Prime Minister & Minister for Finance
Technical Working Group - Chaired by the Permanent Secretary to the Treasury, composed of Senior Treasury Officials in the Ministry of Finance.
ESP Secretariat - Officers from Budget Supplies and Economic Affairs departments
Project Implementation Units – Implementing respective Line Ministries of Health, Public Works, Education and Local Government
Stimulus Project Management Committee (SPMC) - Established by the Constituency Development Fund Committees (CDFC) at the constituency level.
Constituency Projects Tender Committee (CPTC) - Adopted from The District Project Tender Committee
Industrialization
This project aims at constructing and equipping one ‘juakaliJuakali
Juakali is a singer and MC from Trinidad. He is known primarily for his musical output in the dubstep and reggae genres. Onstage since the age of 14, Juakali started his career as a dancer and, at one stage, a poet. He has released two albums...
’ shed per constituency. Development is to take place in phases and is envisioned to facilitate participation of youth as artisans and entrepreneurs in massive social infrastructure projects and construction works at constituency level.
The project is being led by the Ministry of Industrialization. District industrial development officers are being assisted by field officers from Kenya industrial Estates and Kenya Industrial Research Development Institute to roll out the project at the constituency level.
Education
This project has various components:• Upgrading of two primary schools per constituency and equipping with water harvesting and underground water storage facilities
• Construction of a secondary school as a center of excellence per constituency
• Additional 10,500 primary school teachers Recruitment on contract
• Additional 2,100 secondary school teachers recruitment on contract terms.
• Tree planting project in 20 schools per constituency.
• Purchase of a mobile digital laboratory per constituency.
The implementing agency is the Ministry of Education Kenya. School management committees are to oversee implementation in primary schools
Education in Kenya
-History:Historical records from the travels of Johann Ludwig Krapf and Johannes Rebmann reveal that Kenyans had access to education as far back as 1728 with a Swahili manuscript Utendi wa Tambuka, attesting to the fact...
and Board of Governors
Board of governors
Board of governors is a term sometimes applied to the board of directors of a public entity or non-profit organization.Many public institutions, such as public universities, are government-owned corporations. The British Broadcasting Corporation was managed by a board of governors, though this role...
in secondary schools
Education in Kenya
-History:Historical records from the travels of Johann Ludwig Krapf and Johannes Rebmann reveal that Kenyans had access to education as far back as 1728 with a Swahili manuscript Utendi wa Tambuka, attesting to the fact...
.
Public Health and Sanitation
This project aims to roll out a comprehensive program of healthcare reforms covering infrastructure development, promotion of preventive healthcare and devolved management of facilities.• Construction and equipping of a health centre in every constituency
• Employment of 20 nurses on contract level per constituency
• Purchase 5 motor cycles and 20 bicycles for community health workers
The ministry of Public Health and Sanitation and KEMSA are lead implementing agencies.
Food Production
This project aims at increasing availability and accessibility of maize/rice crop and increasing and stabilizing the strategic grain reserve through rehabilitation and expansion of irrigable land.Ministry of Agriculture Kenya, Ministry of Water and Irrigation, Ministry of Regional Development and Ministry of Youth Affairs are lead agents in this project.
Fisheries
The project aims at constructing 200 farming ponds for 140 constituencies. Ponds are to be stocked with appropriate fingerling determined by the various and the needs of the beneficiaries. Training of trainers on fish ponds construction and hatchery management.The Ministry of Fisheries Development is the lead agent.
Local Government
This projects aim is to support the commercialization of agricultural produce by increasing the per capita number and access to wholesale and fresh produce markets and increasing efficiency in marketing and trade of agricultural produce.This project is led by the Office of the Deputy Prime Minister and Ministry for Local Government.
External links
- http://www.economicshelp.org/dictionary/e/economics-stimulus-package.html
- http://www.tisa.or.ke/website/economic-stimulus-package.html
- http://www.economicstimulus.go.ke/images/aboutus/stimulus_esp_manual.pdf
- http://standrdkenation.com/topix/economic-stimulus-package.html