August 31, 2013. Strong agricultural performance is expected to boost Kenya’s growth to 5.6 per cent this year.
A report released by the Treasury on Thursday says strong agricultural growth will be bolstered by adequate rainfall, irrigation and completion of key infrastructure projects.
The Post-Election Economic and Fiscal report says the 2013/14 budget highlights indicate that irrigation will, in the next five years, receive Sh245 billion. In this financial year alone, Sh2.4 billion will be used to build two 10 million cubic dams for irrigation and Sh8 billion for the expansion of on-going irrigations.
The report also indicates that structural reforms to improve the private sector’s competitiveness are also set to bolster growth.
Last week, President Uhuru Kenyatta signed a Sh425 billion financing deal with the Chinese government which include construction of the Mombasa-Malaba railway.
“These and renewed investor confidence following successful elections will accelerate growth,” said Treasury Secretary Henry Rotich.
He said the country still faces the problem of supporting macro-economic stability that will translate into job creation for thousands of people.
Every year, there approximately 50,000 people graduate from institutions of higher learning but 40 per cent don’t get jobs.
The government promised to create a million jobs every year to tame unemployment.
The government also faces the uphill task of streamlining economic policies and structural reforms to support growth, and deepening investment in critical economic infrastructure aimed at promoting productivity.
By Joshua Masinde for Daily Nation
