12.0 SUSTAINABLE ECONOMIC DEVELOPMENT

The DP believes that, the long-term sustainable economic development that will reduce poverty, unemployment, under employment and improve the standard of living of our people will require an economic growth rate greater than the current growth rate of 6.10 percent. The DP believes that the growth needed must be at least 10 percent per annum and must be seen to trickle down to every Kenyan. Domestic factors that will assist attain such a growth rate include sound investments, positive incentives, and efficient institutions among others. The DP also believes that there can be no economic growth without adequate investment in people’s education, health and sound investment in infrastructure including adequate roads, power, rail, ports and telecommunications to ease the way for successful development. The DP however recognizes that, supportive investments are necessary but not sufficient for rapid growth and development - it must be supported by a sound set of economic-wide incentives which require macro economic stability and competitive markets, and reduced administrative bureaucracy. Openness to global and domestic competition is essential for encouraging local producers to develop by adopting and adapting new products and techniques.

The DP accepts that investment and incentive policies require well-developed institutions to give them shape and to make them effective. Well functioning institutions are critical for fostering competition. Especially important is an effective legal and judicial system that secures property rights, safeguards contracts and facilitates transactions and a regulatory framework that is easily understood and transparent and that does not stifle competition. The DP notes that it is the synergy among investment, incentives and institutions which will stimulate sustainable growth and development. In order to attain and sustain an economic growth rate of 10 percent, the DP Government will implement the following strategies:

1. Guarantee efficiency in all institutions of governance especially those dealing; with public funds and related institutions;

2. Increase investments in agriculture;

3. Encourage savings to an average of 30% of GDP and reduce Government borrowing from the domestic market;

4. Undertake measures to promote foreign investments and protect property ownership;

5. Increase investments in technology development;

6. Take full advantage of the Regional Preferential Trade Agreements of the East African Community (EAC) and the Common Markets for Eastern and Southern Africa (COMESA);

7. Make Information Communications Technology a compulsory subject in our schools;

8. Improve the infrastructure including housing, telecommunications, transport infrastructure, energy and water supply among others;

9. Develop technology for Small and Medium Enterprises including small scale farmers and add value

10. Undertake a human capital development data assessment;

11. Improve the efficiency and quality of the health and education systems;

12. Enforce existing laws that protect the right to property, personal security and investments;

13. Guarantee macroeconomic stability;

14. Improve economic policy coordination;

15. Guarantee peace and stability which will guarantee an enabling environment for the private sector.