Reforming institutions will help improve the quality of life and delivery of services

What you need to know:

  • Taming inflation and interest rates is crucial for macroeconomic stability and creating predictable trends in the price of goods and services.
  • The agricultural sector faces several challenges, including inefficient land use, technology transfer, poor quality of inputs, weak extension services, and inaccessible markets.
  • The solution lies in revitalising economic growth to increase opportunities for youth participation in economically meaningful activities.

Institutional reforms are important prerequisites for improving competitiveness and quality of life. Countries with functioning institutions tend to be more competitive and offer better standards of living to their citizens.

Kenya’s reform agenda is anchored on the implementation of the Constitution. A recent report indicates that Kenya has performed moderately well in economic management, but did not score well on structural policies for social inclusion, equity, and public sector management.

Taming inflation and interest rates is crucial for macroeconomic stability and creating predictable trends in the price of goods and services.

Institutional reforms would enhance resource use efficiency to boost productivity and overall competitiveness. Additionally, reducing the cost of doing business, enhancing the war against corruption, pursuing transparent public-business behaviour, and building investor confidence would attract more foreign direct investment.

CHALLENGES

The agricultural sector faces several challenges, including inefficient land use, technology transfer, poor quality of inputs, weak extension services, and inaccessible markets. There is a need to stabilise price systems, increase access to financial services, and reform institutions such as cooperatives, regulatory bodies, and research institutions to improve performance and quality of life for farmers, traders, and consumers. Adoption of modern technologies would boost productivity.

Greater public expenditure on healthcare has achieved some desirable outcomes such as reduced infant mortality and the burden of major diseases. Even so, access to quality and affordable healthcare remains a challenge to many people, mainly due to inadequate personnel and facilities for diagnosis and treatment, and rising costs of healthcare.

Progressive increase in public health financing would reduce donor dependence and out-of-pocket expenditure. Addressing employee absenteeism, skills gaps, modern equipment, costing of healthcare services, and clarity of tasks between the national and the county governments would increase health outcomes.

Key reforms such as universal primary education, subsidised secondary education, school feeding programmes, and provision of learning materials have achieved some measure of success. Systemic inefficiencies in the education sector hinder efforts to attain quality, equity, higher transition rates, and better performance.

IMPROVE RATIO

There is a need to improve the teacher-student ratio, revamp middle-level colleges, and address negative cultural practices and teenage sexuality. Nurturing talent in co-curricular activities such as sports, theatre, music, and fashion would diversify opportunities to support other sources of livelihoods.

The deficit in housing is largely due to the cost of land, building materials, labour, interest on capital, corruption, and non-compliance to building codes. Public and private investments have focused on high- and middle-income groups while home loans, housing schemes, and mortgage facilities remain relatively inaccessible to many low-income people.

This means that many people depend on rented accommodation while many more are pushed to informal settlements. Reviewing housing regulatory frameworks, promotion of micro-financing, adoption of low-cost modern building materials, and creation of land banks would ease housing challenges.

SECURITY THREATS

Internal and external security threats pose a complex challenge to sustained development. The solution lies in revitalising economic growth to increase opportunities for youth participation in economically meaningful activities.

Reliable infrastructure such as roads, energy, water, telecommunication, and ports enhance efficiency, connectivity, and competitiveness.

There is a need to expedite the completion of the infrastructure projects under construction and strengthen institutional framework. Emphasis should be placed on quality of workmanship. Supporting local investors to participate in infrastructure development through public private partnerships would spur growth in investment and create employment opportunities.

Dr Omiti is the executive director of the Kenya Institute for Public Policy Research and Analysis. [email protected].