World Bank Releases Bi-Annual Kenya Economic Update
Kenya’s economy is recovering steadily and is forecast to grow at 4.0 percent in 2010, according to the Kenya Economic Update, a biannual report that can be accessed on the World Bank Kenya website. The East African country even has the potential to improve further to 4.9 percent in 2011, if no shocks occur.
The Kenya Economic Update describes the Kenyan economy as “running on one engine” since growth is imbalanced, predominantly driven by domestic consumption fuelled by imports. Exports, it explains, are weak — shrinking from 40 percent of total output in the 1960s to 26 percent in 2009 — due to the underperformance of the agriculture and manufacturing sectors. This import-led growth has also created a large current account deficit.
On the „Kenya Can End Poverty‟ blog, Wolfgang Fengler, Lead Economic Specialist for Kenya, discusses strategic ways to improve Kenya‟s exports. The specialist points out that exports will only increase if the infrastructure deficit is improved, specifically the port of Mombasa. “Mombasa is the most important single piece of infrastructure in East Africa, and it remains a key bottleneck for trade,” said Fengler.
With this in mind, the latest edition of the Kenya Economic Update pays special attention to the port of Mombasa, Kenya‟s most concentrated infrastructure asset. Despite recent improvements, port reforms have not kept up with the momentum witnessed in other countries. Singapore, the busiest port in the world, ships 50 times more goods than Mombasa. It also takes on average 20 days for a container to reach Nairobi after arriving at the port.
The Kenya Economic Update is produced twice a year (June and December), and aims to inform and stimulate debate on topical policy issues to improve Kenya‟s economic management. Periodic updates can be found on the World Bank Africa Region‟s Twitter Feed.
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What the report about the Mombasa port is stating is nothing new to the private sector.Senior government ministers are on payrolls of private companies at the port in order to maintain status quo.The politicians are busy thinking of slush funds for 2012 elections and hence have to maintain status quo at whatever cost.Imagine the WFP importing grains for relief to this country and the politician is busy blocking competition in conveyor grain handling at the port of Mombasa in spite of huge demurrages paid by millers,traders and the National Cereals and Produce Board all of which affects the common man as grains is a basic foodstuff?The senior minister is the eighth wonder after pyramids of Egypt.God help this country.
Mombasa port is the most corrupt zone where employees and senior government officials endlessly use orthodox means to deny revenue to treasury.Those who have been caught in the ACT have not faced justice instead they are transferred to other department.I propose the port be privatsed so that transparency and accountability can be enhanced.However, the political elite should lead the war against corruption.
The kenya economy will continue performing poorly if corruption os not arrested.Vandalism is the order of the day where hooligans are used.
if the kenyan economy has grown by 4.0% its only good news i figure but no to the ay man on the ground who has yet to see any mprovements. really is the inflation of prics on conumer goods helping grow the economy. the kenyan government should focus on agricultural technlogical practises or even embrace the introduction of genetically modified organisms to feed its growing population the way south africa did.