Section 6 Productive Sectors
The real basis for the realization of rapid economic prosperity and eradication of poverty under the Kukomesha Umasikini initiative is the productive sector of the economy. ODM-K is committed to raising productivity in agriculture, horticulture, tourism, mining, manufacturing and trade. Specific measures for raising productivity in each economic sector will be implemented as outlined below. However, ODM-K will implement some broad, cross-cutting programs for the productive sectors. The party will:
i. Take detailed stock of Kenya’s resource endowment – natural resources, human capital, and regional and international opportunities for the purpose of planning
ii. Nurture an industrial culture and a reward system that is based on honesty, hard work, discipline, commitment and sacrifice at least in the short term
iii. Develop research and extension services
iv. Develop borrower-friendly credit facilities for expansion of investment
v. Diversify production
vi. Emphasize value addition in the production process
vii. Introduce an appropriate investment code
viii. Orient production to export markets
ix. Develop the lubricants of investment and productivity such as energy, ICT, and transport infrastructure
ODM-K program to stimulate productivity in each economic sector will be as shown below.
a. Land
Land is the primary means of livelihood in Kenya since manufacturing and commerce are yet to develop fully. The national economy is therefore largely agro-based. The country has a huge land mass of approximately 582,648 sq km, although some 2.2 percent is covered by water bodies while about 10 percent is under forest cover. The land directly supports the rural population that constitutes 80 percent of Kenya’s population. However, only 20 percent of the land is considered to be high potential for agriculture while the rest falls in the category of arid and semi-arid lands that support a nomadic pastoral economy.
While land is a major asset for the present and future generations, the benefits that accrue to land-use are either insufficient or distributed inequitably. Land-based inequality is expressed in the large number of Kenyans without land; who lack alternative means of livelihood and have therefore become destitute. On the other hand some individuals own large tracts of land that are underutilized because the landowners are already in other forms of employment. Many other Kenyans occupy land without any land rights or without security of tenure while others have grabbed land that was planned for public utilities such as schools, hospitals and markets. The land tenure system in the high potential agricultural areas has led to the emergence of land parcels that are too small for agricultural production
ODM-K will:
i. Expand the national irrigation program so that all semi-arid areas can be reclaimed and put under productive use and resettlement of the landless
ii. Sink bore holes in the arid and semi-arid areas in order to raise productivity in the pastoralist economy
iii. Discourage the holding of idle land
iv. Protect public land from land grabbers
v. Encourage the formation of rural agro-production cooperative societies to raise productivity in the face of shrinking land holdings
b. Agriculture
Agriculture is presently Kenya’s main economic activity and chief earner of foreign exchange through agro-exports. The objective of increasing investment, productivity and economic growth, especially pro-poor growth, can be realized to a large extent through agriculture. Furthermore, approximately 80 percent of Kenyans live in rural areas and therefore rely on agriculture for their employment, incomes, and food. However, the agricultural sector in Kenya has generally underperformed due to low productivity that is in turn a result of erratic rainfall, poor access to farm credit, high cost of high taxation of farm products. Other causal factors include insecurity in certain parts of the country, weak marketing systems, an inefficient and crumbling transport infrastructure, inadequate research and extension services and the use of inappropriate technology, low value addition, weak institutions of governance, and an inappropriate land tenure system.
The ODM-K government will bring radical changes to modernize and raise productivity in the agricultural sector. To attain this goal ODM-K will:
i. Increase investment in schemes and programs that will facilitate easy access by farmers to modern and efficient production methods and technologies such as irrigation and biotechnologies so as to open new ground for agricultural investment in semi-arid parts of the country as well as raising productivity in the traditionally agricultural areas through the introduction of new ventures such as poultry and fish farming, and zero-grazing
ii. Encourage the growth of micro credit schemes for rural farmer – especially women.
iii. Promote the establishment of value-adding and secondary processing industries in agriculture through ready access by agro-entrepreneurs to affordable capital for industrial development and technology acquisition
iv. Fast-track development of the livestock industry in the arid and semi-arid areas with special emphasis on the development of value-adding industries. Medium scale meat and livestock products processing industries will also be established in these districts
v. Raise the profitability of all farming activities through better pricing policies and the development of a more efficient agricultural market infrastructure and market information system
vi. Review agricultural training curricula and program to make them relevant to the needs of the modern economy
vii. Implement the Cotton Act by setting up cotton industries in every province in Kenya for ginning, spinning, weaving, apparel production and related agro-industries that can produce oils and feeds for both the local and international market
c. Tourism
Tourism is presently, Kenya’s leading foreign exchange earner. However, revenues in the tourism sector are still constrained by inadequate hotel accommodation facilities; threats of international terrorism; insufficient promotion of Kenya’s tourism products abroad; general mismanagement of the industry, especially in the coordination of public and private sector tourism activities; insecurity; and increased regional competition.
ODM-K will place the tourism industry on its rightful pedestal as the light house of Kenya’s economic productivity and growth. ODM-K will:
i. Increase the share of local investors in the tourism industry in order to increase the proportion of returns earned and re-invested locally
ii. Streamline the management of the tourism sector so as to attract investment and increase returns through the development of an effective tourism policy, tourism development plan, and a tourism regulatory framework
iii. Market Kenya as a global tourist destination while implementing a program to diversify tourism products, upgrade and expand hotels and other accommodation facilities, and raise standards in the industry to globally competitive levels
iv. Create opportunities for local communities to participate in the tourist industry through cooperatives so that all Kenyans can benefit from arrival of visitors who traverse their community to witness their culture and heritage
v. Create a tourism information system to encourage investment and guide Kenya-bound tourists
d. Mining, Industry and Trade
Kenya’s mining industry is comprised of quarrying, limestone, gemstone, soda ash, salt, fluorspar, zinc, diatomite, gypsum, titanium, and some coal deposits. These resources now require efficient exploitation to create jobs and increase export earnings.
Kenya’s manufacturing sector has been the least developed, yet manufacturing is at the core of employment creation, export earnings, and release of pressure on land. Past programs of industrialization have been woefully ill conceived and unsuccessful to the extent that many of the previously thriving manufacturing complexes have collapsed and the country overrun with imported manufactures well beyond the limits of the principle of comparative advantage and many Kenyans have lost their jobs as a result.
Trade is the oldest source of wealth for all nations. Investment, productivity, and growth in the Kenyan economy are potentially predicated upon performance in the trade and industry sector, especially with regard to the country’s chief export commodities, tea, coffee, and horticulture. Trade in each of the sector is presently below capacity due to policy and transactional constraints that cause poor price competitiveness for Kenyan exports and weak compliance with standard requirements for accessibility to export market. Different commodities and services have different and unique constraints. However, the common constraints to them all include high business transaction costs, poor facilitation, unfair competition, limited access to external markets, and low incentive.
ODM-K will abolish the constraints in the trade and industrial sectors through
i. Review present and past industrialization policies with a view to revive collapsed manufacturing industries, provide incentives to local industrialists, encourage foreign industrial investments where shortfalls exist, and strike a balance between survival and prosperity of local manufacturing and importation of manufactured goods
ii. Provision of incentives to commercial enterprises such as credit market, strong advisory and extension services, efficient administrative support in business registration, and reduced licensing requirements and other forms of delays.
ii. Recognize and promote the contribution of small scale traders and Jua Kali artisans, including hawkers, shopkeepers, expo-promoters, and mama mboga so that these can become the middle and big business magnates tomorrow
iii. Enhance price competitiveness for Kenya’s exports
iv. Expand the reach of Kenyan products in the world market
vi. Enhance the operation of regional trading blocs, like the East African Community and the Common Market for Eastern, and Southern Africa
vii. Intensify the exploration and exploitation of our mineral potential.