2013/2014 budget: Double digit growth looks far fetched.

One of the stated policies of the Kenyatta administration is to grow the economy by double digits. Indeed, for the Kenya Vision 2030 to be realized, the Kenyan economy will have to grow by 10 percent each year. Taking into account population growth, a growth anywhere below ten percent merely guarantees that the same standards of living will be maintained, since the additional growth will be erased by the increase in population. In the 2013/ 2014 budget, the sectors which would have contributed to the growth of the economy have not been given much attention.
For instance, small farmers will not receive a budgetary allocation for special services such as extensions services the budget money for the Konza expected technopolis has been slashed, and the security situation needed for a conducive business environment is still far from perfect. Somalia still presents major geopolitical challenges for Kenya, as many terrorists emanate from there. The country has been hit hard by travel advisories form Western countries, affecting bookings in hotels and the whole tourism sector. Small scale businessmen have had a fund to cater to them slashed, further putting a halt to sector that employs nearly 80 percent of Kenyans. Most of all, interest rates by banks remain exceedingly high, which means the cost of borrowing capital remains exceedingly high for businesses that want to purchase machinery, and hire more staff, and generally contribute more to the country’s GDP.

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