Policy - Institute of Economic Affairs

Transcription

Policy - Institute of Economic Affairs
Inside
Policy
Issue No.2 quarter 1 2012
Journal of the Institute of Economic Affairs
Youth Fact Book: Infinite Possibilities or Definite Disaster?
No doubt the Kenya youth present one of its key resources. They also represent the country’s potential for the future. This is
also one group that is often misunderstood and faces many challenges such as unemployment and other socio-economic
problems. The Youth Fact Book, published by the Institute of Economic Affairs, puts together different youth indicators for
the purpose of providing an overview on age, gender, regional and socio-economic status of youth. The book helps identify
trends which policy makers could use to develop evidence based policies and therefore meaningfully engage the youth.
The book is available on our website – www.ieakenya.or.ke under publications (Research)
Regional
Integration:
Can East Africa Show The Way?
Music the Language of
Integration
7
23
35
Kenya Food Security Policy:
Lessons From China
Health Sector Spending
in Kenya: Who Gains?
Institute of Economic Affairs - Programmes
Policy Areas
Call for Articles for The Third Issue of the
“Policy”
The Public Policy Journal of the Institute of Economic Affairs”
1. Regulation And Competition Policy Programme
The Regulation and Competition Policy Programme aims to facilitate the formulation and implementation
of appropriate economic regulations and competition policy in Kenya. The regulatory policy review has
concentrated on the laws and institutions that regulate certain economic sectors. In the initial design of the
programme it was intended that it would focus on the areas in which the connection between the law and
the economy would be most evident.
2. Budget Information Programme
The Budget Information Programme (BIP) promotes transparent and participatory engagement of key
institutions in public finance management with emphasis on execution and auditing.
The Programme has four components: parliamentary support, citizen/civil society support, gender
budgeting initiative and local authorities support. The Programme activities are geared towards enhancing
the capacity and effective management of key institutions in public management, both in the upstream (the
legislature and the executive) and in the downstream (the civil society and the public in general).
3. Trade Information Programme
The Programme aims to be an influential actor in Kenya’s trade negotiations, policy formulation, reforms
and impact assessment.
The Programme has three pillars: trade negotiations; trade, development and poverty reduction; and
advocacy and networking. The institute seeks to ensure that it does not merely react to trade issues as they
emerge but anticipated the future in informing trade policy.
4. Futures Programme
The programme seeks to facilitate increased utilization of future methodologies in development planning,
research, policy formulation and analysis. The programme has three components: scenarios thinking,
vision building and strategic building.
Under the scenarios component, the programme seeks to provide alternative pathways into the future that
explore interaction between social, political, technological, environmental and economic forces operating
within a given context. The visioning component seeks to give theoretical and practical perspectives on
importance of building a shared vision that can unify people and enhance development by embedding it
into a comprehensive planning process. The Programme has also facilitated the planning in a number of
constituencies. Strategic plans help a community take stock of where they are coming from and where they
are to determine strategic needs that can be carefully prioritised to enhance community development.
The Institute of Economic Affairs (IEA-Kenya), a public policy think-tank based in Kenya will soon be
publishing the third issue of the exciting and informative Public Policy Journal – “Policy” . The publication
is a journal through which IEA members and associates, Kenyan professionals, academia and researchers
can articulate their well-researched view points on diverse public policy issues.
The journal aims to provide an avenue for IEA members and associates, professionals, researchers and
general public to influence public policy through research, provide cutting edge information on public
policy and provide policy makers with useful information to guide policy reforms.
The articles submitted should aim at reporting on progress made in implementing specific policy
reforms or communicating research findings on a particular public policy issue in a reader-friendly
manner. Alternatively, articles could also provide a critique of the design or implementation of public
policy reforms and advocate for specific public policy changes, in all cases backing their arguments will
well researched facts where appropriate.
The IEA will put together a panel of editors to review submitted manuscripts in order to ensure accuracy
of information and eliminate errors. The editors will therefore reserve the right to change manuscripts
, in collaboration with the authors, to ensure that they are accurate and comply with international
standards.
Submissions
Writers are urged to observe the following requirements:
• Articles must be written in clear UK English.
• Articles submitted for publication in the journal must be original and must not have been published
or submitted for publication elsewhere.
• Articles must average between 1,500 and 2,000 words for short articles and between 4,000 and
6,000 words for long articles
• Contributors must submit an electronic file of the manuscript.
• Authors should provide an abstract of their article, not exceeding 300 words in length.
Please note that the deadline for submission is Monday, 2nd April 2012.
Please send your manuscripts to the editor on email address - [email protected].
For any clarifications, please send an email to the same address or
call Irene on +254-20-2721262 or +254-20-2717402.
Contents
3
4
5
6
Editor’s Letter
Authors’ Profiles
The Institute of Economic Affairs Programme
Word from the CEO
Features
7 Music: The Language of Integration?
East African music artists provide a perfect template for
the political class for breaking down existing barriers,
overcoming mistrust, and creating a powerful cultural
and economic synergy.
by Bill Odidi
10 South Sudan Secession: Opportunities Abound
for Kenyan Economy
A review of opportunities available to Kenya in South
Sudan and policies the Government of South Sudan
has thus far put in place to cultivate and nurture a
conducive investment environment.
by Adhoch Abuga
23 Kenyan Food Security Policy: Lessons From China
An exploration of the important aspects of food security:
research; agricultural extension; production, marketing
and storage infrastructure; seed management;
production processing and storage technologies; food
commodity monitoring and reporting; and information
management
by Andrew M. Mugambi
Policy Journal - Issue No.2 Quarter 1 2012 | 1
27 Youth Unemployment, State Failure and Policy
Implications For Kenya Vision 2030
A review of Kenya Vision 2030 in the context of the new
Constitution with the aim of providing policy implications on
youth and the state of youth unemployment in Kenya and their
link to state failure
by Owino Magana
IEA Papers
35 Health Sector Spending in Kenya: Who Gains?
An analysis of the social pillar as stipulated in Vision 2030,
specifically the health sector. The Government targets provision
of equitable and affordable health care services at the highest
possible standards for her citizens and at the same time ensure
that water and improved sanitation – key provisions that
directly affect health care – are available to all Kenyans by the
year 2030. Will this be achieved?
Published by the Institute of Economic Affairs, P.O. Box 53989 – 00200, Nairobi.
The IEA is a public policy think tank established in 1994 with the aim of providing a platform where public dialogue on policy issues could take place. The
institute seeks to promote pluralism of ideas through open, active and informed debate. It is a membership organization and draws from this membership
a wealth of expertise and experience
2 | Policy Journal - Issue No.2 Quarter 1 2012
Editor’s Letter
Dear Reader,
Welcome to the second edition of the IEA’s ‘Policy’ journal.
Letters to the Editor
We are addressing the timely issue of regional integration. East Africa has been
moving steadily to ever closer union since the re-establishment of the East African
Community in 1999. From an original membership of three countries – Kenya,
Tanzania and Uganda, the Community has grown to five countries, with the
inclusion of Burundi and Rwanda since 2007. Sudan and South Sudan are also
being considered for membership in the Community.
We welcome feedback on the
articles covered in this publications
and invite you to write to the editor
on email [email protected] or
by post on P.O. Box 53989 – 00200
Nairobi.
In this edition of the journal, we are considering the issue of regional integration
from various tangents. For example, musicians and other entertainers have been
quietly (some would argue loudly) integrating the region for decades. They have
sought fame and fortune throughout the region with no regard for borders. The
new generations are following their illustrious forbears.
Letters may not exceed 300 words.
Those longer than that may be
edited.
South Sudan, which gained independence in July, is also in focus, and specifically
in the area of opportunities for entrepreneurs.
Food security is obviously key in any discussion on the region, especially in the
face of the most serious drought in a generation.
We also discuss issues within the IEA’s usual range of discussion topics, including
youth unemployment and Vision 2030, and health matters.
Enjoy your reading.
They must not have been published
elsewhere and must make reference
to articles carried in the immediate
previous journal issue. The purpose
of the letters to the editor is to
provide a forum for positive and
constructive views on articles and
matters published in the journal.
Due to space, the IEA- K many not
publish all the letters received. We
regret that we shall not return or
acknowledge unpublished letters.
Writers of those articles that will be
published will be notified. Although
we are unable to acknowledge
those letters we cannot publish, we
appreciate the interest and value the
views of those who take the time to
send us their comments.
Please include your address and
telephone number where we can
reach you.
Disclaimer
The views and opinions expressed in the articles published in
the Policy Journal are the respective author’s own and do not
necessarily reflect those of the Institute of Economic Affairs,
which seeks to publish a diverse range of perspectives on any
given issue. Authors are fully responsible for and legally liable
for their own work. The Institute of Economic Affairs assumes
no responsibility or legal liability, express or implied, for the
content of any work of the author. Every effort has been made
to ensure the accuracy of all the information (the content) contained in this journal.
Policy Journal - Issue No.2 Quarter 1 2012 | 3
Authors’ Profiles
Issue No.2 Quarter 1 2012
‘Policy’ is a quarterly journal published by the
Institute of Economic Affairs in Nairobi, Kenya
Chief Executive Officer
Kwame Owino
Editor
Irene Kinuthia and Wallace Kantai
Journal Committee
Kwame Owino
Irene Kinuthia
John Mutua
Photo Credits:
Boniface Mwangi
Wallace Kantai
Bill Odidi is a radio producer with the Kenya
Broadcasting Corporation in Nairobi with over
10 years experience working in various media.
He has also worked as a correspondent for
Radio France International and writes on the
arts and culture for the Nation Media Group
of newspapers. He has also worked as project
manager with Ketebul Music on the documentary
series Retracing Benga and Kikuyu music. He
is currently directing “Retracing Kenya’s Funky
Hits of the 70s, due for release before the end
of 2011
Adhoch Abuga is a communications professional,
specialising in writing, editing, photography,
media liaison and website development and
maintenance. He has worked in a number of
non-governmental organizations in Kenya and
South Sudan.
Design & Layout
Jacqueline Omutimba
This publication is published with the support
of Think Tank Initiative IDRC
Other donors include:
CIDA, IDRC, GTZ, Ford Foundation, Rockefeller,
SIDA, HBF, Danida, Pact Kenya, OSEA, Diakonia,
URAIA, GDNet and FES.
© Institute of Economic Affairs
5th Floor, Block D, ACK Garden House
P.O.Box 53989 00200 Nairobi, Kenya
Tel: (+254-20) 2717402, 2721262
Fax:(+254-20) 2716231
E-mail: [email protected]
Website: www.ieakenya.or.ke
IEA Board members 
Ms. Betty Maina (Chairperson)
Mr. Duncan Okello
Ms. Lynne Wanyeki
Mr. Charles Onyango-Obbo
Mr. John Kashangaki
4 | Policy Journal - Issue No.2 Quarter 1 2012
Owino Magana is a member of the IEA and a
project management practitioner with over
20 years consulting experience in and outside
Kenya. His core area of focus is strategy
implementation to enhance governance and
service delivery in the private and public
sectors, using ICT. The views expressed in this
article are based on his research and do not
necesarrily reflect the IEA’s position. He may be
reached on [email protected]
Andrew M. Mugambi is a consultant in
agribusiness, development, monitoring and
evaluation and public policy analysis. He is also
a researcher, trainer and publishes regularly in
areas like agriculture, food security, marketing,
value addition, general development, public
policy, project development and management,
micro financing and rural infrastructure
development. He worked for the Kenyan
public service all the way to the top for 30
years before going into consultancy on full time
basis. He holds a BSc. in Agriculture and MSc.
in Agricultural Economics from West Verginia
University and Colorado State University
respectively.
Word from the CEO
The Institute of Economic Affairs (IEA-Kenya) is pleased that you are reading the second volume
of the Policy journal. Having published the first volume more than a year ago, we have been
encouraged with the interest in advancing policy discourse, innovation and commentary at an
appropriate level for our members and the general policy audience.
Regional integration is fittingly the main subject of this second volume of the journal and it is
noteworthy that the main article concentrates on a service and cultural factor as an agent for
regional integration. It addresses the history of performance exchanges across the regions in a way
that makes it clear that integration preceded the more formal trade and political instruments that
drive action today.
In subsequent articles, the authors address the variety of policy areas that the programmes within
the Institute of Economic Affairs (IEA-Kenya) are exploring. This includes the assessment of the
implementation of Vision 2030 and its effects on youth employment, the examination of the
distribution of the benefits of health care spending in Kenya and the lessons for agriculture policy
that may come from China.
Admittedly, this variety is not only an interesting set of issues but they each contain policy points
that are useful for advancing debate, understanding and the crafting of better policy. We hope that
that is where our influence will be most palpable.
Thanks to my colleagues and the editorial team that have pulled off this second edition.
Kwame Owino
Institute of Economic Affairs
February 2012
Policy Journal - Issue No.2 Quarter 1 2012 | 5
Training of Trainers Manuals
The National Budget is one of the most important policy instruments through which the executive raises and spends public funds. For the
citizens to be able to hold their leaders to account on the use and management of public funds, they have to be able to understand not only
the budget but the process of getting there and points of engagement. The IEA has developed three thematic Training of Trainers (ToTs)
manuals to provide the civil society and the public with the skills to understand and engage in the budget making process in addition to
building a critical mass of trainers from the civil society on public finance. These manuals are:
Applied Budget Work - intended
for civil society organizations that work
around budget issues and is supposed
to demystify the budget and encourage
these organizations to understand that
the budget can be used as a tool of
accountability. As such it is intended to
equip them with skill and techniques
to undertake budget analysis as well as
apply other budget work skills in order
to effectively participate throughout the
budget cycle.
Existing mechanisms for the public
to engage in the budget making
process - raises awareness of the existing
opportunities and avenues for the public
to engage throughout the national
budget cycle of Kenya as well as provide
an overview of the principles underlying
participatory budgeting and further
outline best practices in participatory
budgeting.
Monitoring and Evaluation of Public
Funds: Utilisation and Management
- This Manual intends to help citizens, civil
society groups and other stakeholders to
increase knowledge, awareness and
capacity to monitor and evaluate public
funds utilisation. By tracking the budget
throughout its implementation, citizens
and civil society groups can hold public
officials accountable.
The manuals are available on the IEA website.
6 | Policy Journal - Issue No.2 Quarter 1 2012
By Bill Odidi
Music the Language of
Integration?
I
n 1944 a young Kenyan musician
called Fundi Konde was enlisted into
the Entertainment Unit of the Kings
African Rifles, where he met several
colleagues from Uganda and what
was then known as Tanganyika. After
rehearsing a musical performance for
five months, the new band embarked
for Ceylon (Sri Lanka) to entertain East
African troops preparing to fight in the
Second World War.
Just after the end of the war, having
returned home, this group of musicians
continued to perform as the Rhino Band,
based at first in Kampala, then eventually,
Mombasa.
Fundi Konde was spotted by Peter
Colmore, a pioneer film producer and
director of East African Records, who
enlisted him in his African Band. This was
a five-piece outfit including musicians
like Peter Bernard and Ally Sykes, a
Tanzanian who had also returned from
the war.
The band played at the White Horse
Hotel in Nairobi, but also appeared
at municipal halls, armed forces clubs
and other venues, with Konde as the
composer of classics like Jambo Sigara.
In 1951 they toured Tanganyika and
ultimately their music spread throughout
East Africa at the height of the struggle
against colonial rule in the region.
During the Emergency in Kenya in 1952,
Konde first moved to Kampala, Uganda
and joined the Hollywood Jazz Band,
before crossing to the Congo, where he
played music at a bar in Goma. In the
years leading up to independence for the
three East African countries, Fundi Konde
was a prime mover in the development
of the music industry, working for HMV
Records, Hi-Fidelity Studios and the
Jambo Records, for whom he recorded
the all time classic Malaika with fellow
Kenyan star, Fadhili William*.
* The name is variously spelled Fadhili Williams and
Fadhili William. We have chosen to stick to the latter.
Policy Journal - Issue No.2 Quarter 1 2012 | 7
Music
the Language of integration?
In 1962 the Jambo Boys Band changed
its name to the Equator Sounds Band
with a sound that was typified by twopart vocal harmonies, a steady ‘walking’
bass, and lead guitar. An English expat,
Charles Worrod, had bought the assets
of East African Records and launched
the Equator Sound label whose roster
included Kenya’s Fadhili William, Daudi
Kabaka, Gabriel Omolo, two Zambian
emigres Peter Tsotsi and Nashil Pichen,
as well as Fred Masagazi and Charles
Sonko from Uganda.
This group of musicians adopted the
South African kwela rhythm and turned it
into the Twist, a dance craze all over East
Africa throughout the 1960s. Kabaka
“The king of twist” who composed hits
like Harambee Harambee and Helule
Helule, was actually born in Uganda and
named after the Buganda King, Daudi
Chwa, who had died in 1939.
Kabaka and others who comprised
the Equator Sounds Band were paid
a full time salary by the label owner,
Worrod. Six of the core musicians from
this group were enrolled in a course at
the Conservatory of Music in Nairobi to
learn theory and notation of music. The
relationship with Worrod ended in 1972
with Kabaka and others launching their
own production company called the
African Eagles Recording Limited. The
studio band called African Eagles Lupopo
became a household name in the region,
touring from Uganda to Zambia.
The late 1960s and 70s was a period of
transition in East African music. A number
of musicians were beginning to define
the direction of the emerging benga style,
which became the distinctive sound in
8 | Policy Journal - Issue No.2 Quarter 1 2012
Kenya. This was a pop style dating back
to the 1950s when musicians began
adapting traditional dance rhythms of the
stringed instruments like the nyatiti (the
lyre) and the orutu (fiddle) to the acoustic
guitar and later to electric instruments.
However, musicians arriving in Nairobi
from Tanzania and Congo (then known as
Zaire) offered a pan-East African sound,
based on rumba with Swahili lyrics. The
economic opportunities in Kenya proved
to be a magnet for musicians from Dar
and Kinshasa. Some of these bands
incorporated some of the feeling and
sound of Kenyan benga, the punch, and
sparkling guitars and added this to rumba,
to create a new unique musical style
The years after independence had
witnessed a boom in the Tanzanian
music, thanks to State patronage of
bands. Musicians of groups like Nuta
Jazz, Vijana Jazz, Jamhuri Jazz Band
and Cuban Marimba were paid official
salaries and some were employees of
government departments. Most of these
top bands used to visit Kenya at least
once a year for public performances
while others like Simba Wanyika set up
their base in Nairobi permanently.
Tanzania had virtually no recording
studio. On the mainland the only
recording institution was Radio Tanzania
Dar Es Salaam (RTD). Once or twice a
year, the bands came to the one-track
studio for a session, recording five
songs at a time. The Radio got music
for its programs, which were heard on
shortwave band across East Africa, the
bands in turn gained fame and publicity
for their live performances.
From the late 60s, the State-owned radio
consistently sponsored and exclusively
featured Tanzanian bands on its programs,
contributing to the development of a
Tanzanian music style or Mtindo.
The relationship sometimes turned sour,
as when DDC Milimani Park Orchestre
decided not to record for RTD because
some of their recordings had been pirated
and released in neighbouring Kenya,
where Tanzanian music was in high
demand.
It turned out that almost all records of
Tanzanian bands released for a long
period in the 70s were stolen from, or
illegally copied from the library of RTD.
No proper payments or contractual
arrangements were made and the
musicians were not able to track the sales
of their music.
Marijani Rajab of Dar International once
complained that unscrupulous traders
had smuggled his tapes out of Tanzania
and sold them to producers in Nairobi.
www.eastafricanmusic.com
Some of Konde’s best songs like Tausi
Ndege Wangu, Olivia Leo and Majengo
Siendi Tena, were recorded in Nairobi
and Dar Es Salaam between 1947 and
1956, laying the foundation for the East
African sound that was to flourish in
future decades.
Music
the Language of Integration?
Meanwhile the early years of the 70s
found Nashil Pichen and the band Eagles
Limpopo on tour in Lusaka, Zambia. Here
the band met Congolese musicians from
the group Super Vox, who had traveled
from Lubumbashi in Shaba Province.
Super Vox established a winning formula
of recording rumba in the different
languages, like Nyanja in Zambia,
Kiswahili for Kenya and Tanzania and, of
course Lingala for Congo.
In Lusaka, the group was thrilled to
meet Pichen and Co and to hear about
the vibrant music scene in Kenya. So, in
1974 they headed for Nairobi, one of the
main capitals for music in Africa. Here,
they found that there was already another
group called Super Vox and so they
changed their name to Super Mazembe
(earth movers).
Mazembe competed for popularity with
fellow Congolese groups already based
in Nairobi, including Les Mangelepa,
Les Kinois and the Tanzanian band Les
Wanyika. Kinois (Lingala for “the people
of Kinshasa”), which at the time was
led by Samba Mapangala, had crossed
from Zaire into Uganda in 1976, before
landing in Kenya the following year. The
band recruited a Kenyan guitarist, Jacob
Okello and at the height of their fame sold
40,000 copies of the hit single Malako.
Many bands were tied by contracts
to specific venues, but Mazembe
crisscrossed Kenya and also performed
in Tanzania and Uganda. The group set
East Africa alight with hits like Kasongo,
Nguashi Ntimbo’s Shauri Yako, and even
recorded an audacious Lingala version of
the Beatles’ Words of Love.
The Congolese wave also swept
though Tanzania with bands like
Orchestre Maquis introducing guitars to
complement the hitherto unrivalled horn
section and discarding Lingala lyrics in
favor of Swahili idioms.
Baba Gaston Ilunga wa Ilunga led the
migration of musicians out of Kinshasa
and into East Africa, touching base first in
Tanzania and eventually on to Nairobi.
Like his fellow travellers, Mose Fan Fan,
Lovy Longomba and Samba Mapangala,
Gaston brought with him the potent
Congolese rumba.
In 1978 “Dr Remmy” Ongala (Sura
Mbaya) arrived in Dar from Kivu via
Uganda where he had enjoyed a brief
spell with the group Grand Mika Jazz.
Ongala who was eventually granted
Tanzanian nationality, was to hold sway
over East African music with his mix of
Congolese Soukous and Swahili rhythms
(mdundiko), for more than 20 years until
his death in December 2010.
There was a fierce battle in Tanzania
between two bands, both from the town
of Morogoro, which thrilled music lovers
across East Africa. Mbaraka Mwinshehe,
the burly singer and guitarist who was
known as the Franco of East Africa (his
musical style and physique resembled that
of Congo’s Luambo Makiadi) engaged in
lyrical ‘war’ with compatriot Juma Kilaza
of the Cuban Marimba band. At one
point Mbaraka sang Jogoo wa Shamba
hawiki mjini (the village cock does not
crow in town), while Kilaza responded
with Dawa ya moto ni moto (fight fire
with fire).
The political relations between the
leaders of Kenya, Uganda and Tanzania
led to the breakdown of the East African
community in 1977 and the closure of
border posts between the three countries
for several years. In October 1978
Mbaraka Mwinshehe and his 10 piece
band, Super Volcano traveled to Nairobi to
record their fifth album at the Phonogram
studios. The band’s instruments were
held by immigration officials at the Kenya
– Tanzania border for over two months
which forced Mbaraka and his band to
play occasionally at little known night
spots in Nairobi while awaiting the cargo
to be cleared.
It is these travails that led the musician
to write the song Shida, which some fans
reckon was a prophecy of his last days on
earth. Mbaraka and his band performed
the song for the first time during a show at
the Kenya Polytechnic, just weeks before
he died in car accident on the Mombasa
– Malindi highway in January 1979.
He had been contracted to Phonogram
(Kenya) Limited for 12 years before
his passing at the age of 35 and left a
legacy as the most influential Swahili
language musician in East and Central
Africa. Mbaraka was also a member of
the Tanzania Music Council, which at
the time of his death was forging closer
cooperation between musicians in
Tanzania and Kenya.
Another
Tanzanian
Charles
Ray
Kassembe, who was a protégé of the late
Mwinshehe, took up the leadership of the
Volcano band after the maestro’s death
and played at various venues in Nairobi
in the early 80s.
One of the first Tanzanian groups to
migrate to Kenya was Arusha Jazz,
the predecessor of the mighty Simba
Wanyika (Lion of the Savanna). Founded
by Wilson Peter Kinyonga and his
brothers George and William, the group
began performing in Mombasa in 1971.
The following year, they began recording
for Phonogram and moved to Nairobi,
recruiting their compatriot Omar Shaban
on rhythm guitar and Kenyan bass player
Tom Malanga. Over the next twenty years
Simba Wanyika were the dominant group
in Nairobi’s club scene and made tonnes
of recordings even though the original
group split several times in subsequent
years.
Tanzanian lead guitarist John Ngereza
who had been playing in Kenya with the
Cont. on Pg.17
Policy Journal - Issue No.2 Quarter 1 2012 | 9
By Adhoch Abuga
South Sudan Secession:
Opportunities Abound for Kenyan Economy
A
fter decades of political
strife, the Southern Sudan
referendum held in January
2011 gave birth to the world’s newest
state. The close to 4 million voters
in the semi-autonomous region
overwhelmingly voted for secession
from the North; splitting Africa’s
largest country into two. The vote
was viewed by South Sudanese as
freedom from economic and political
marginalisation. Total independence
was celebrated on July 9th 2011, and the
country subsequently became the 193rd
member of the United Nations.
Situated in the Southern region of Sudan,
the landlocked region that borders
10 | Policy Journal - Issue No.2 Quarter 1 2012
Ethiopia to the east, Kenya, Uganda and
the Democratic Republic of Congo to
the south and Central African Republic
to the west occupies 644,329 square
kilometers. As a result of the secession
of South Sudan, Eastern African countries
are highly optimistic of reaping trade and
investment opportunities worth billions of
dollars to help develop the new country
whose infrastructure is underdeveloped
following the civil war.
Geographically, South Sudan consists
of ten states which formerly composed
the provinces of Equatoria (Central
Equatoria, Eastern Equatoria and Western
Equatoria); Bahr el Ghazal (Northern
Bahr el Ghazal, Western Bahr el
Ghazal, Lakes and Warrap); and Upper
Nile (Jonglei, Unity and Upper Nile).
A chunk of the states are agriculturally
viable and immense economic returns
stand to be reaped if modernised and
commercialised agriculture is initiated.
Moreover, business opportunities are
aplenty as the region boasts of diverse
economic potentialities.
One of the major natural features of South
Sudan is the River Nile whose many
tributaries have sources in the country.
The river traverses the entire country
and facilitates trade, administration and
urbanisation in the country. The river and
its many tributaries also provide access to
almost unlimited sources of water which
South Sudan Secessaion
Opportunities Abound for Kenyan Economy
services the land, making it fertile to
support diverse vegetation and crops.
The region is blessed with many
natural resources such as petroleum,
iron ore, copper, chromium ore, zinc,
tungsten, mica, silver and gold. The
country’s economy, like is the case in
other developing countries, is heavily
dependent on agriculture. It’s equatorial
climate is characterised by high humidity
and lots of rainfall (rainy season varies from
region to region but is generally between
April and November) that places it at a
pedestal in production of agricultural
produce that include cotton, groundnuts
(peanuts), sorghum, millet, wheat, gum,
sugarcane, cassava, mangos, papaya,
bananas, sweet potatoes, sesame, sheep
and other livestock.
Given the many years of civil war and the
renewed hope following the successful
referendum, the country is literally being
built from scratch. The road network,
housing, banking sector, insurance, schools
and other amenities in the huge country
all need urgent attention and the focus is
on the donor community, the government,
and above all, commercial investors from
within and outside the country.
South Sudan is an emerging market. A lot
has been done since the signing of the
CPA in 2005. Juba, for instance, has been
transformed from the virtual ghost town it
used to be into a remarkable commercial
hub that was unimaginable just a couple
of years ago. However, a lot needs to be
done in terms of putting the necessary
infrastructure and systems in place. The
South Sudanese economy benefits from
the service industry which is driven by
trade, restaurants and hotels, finance
and insurance, real estate and business
services, transport and communication
and government services. There are
also a number of Non-Governmental
Organisations (NGOs) and international
organisations engaged in several economic
sectors, especially humanitarian and
infrastructural development. In spite of
this impressive economic growth, most
South Sudanese are still poor, a situation
that can be attributed to historical factors
including several decades of civil strife,
war and gross marginalisation.
Nonetheless, South Sudan is a virgin
country and a lot of businesses are
currently setting shop in Juba city as well
as other towns in the ten states such as
Wau in Western Bahr el Ghazal State and
Malakal in Upper Nile State.
Economic Outpost
South Sudan has been described as
Kenya’s economic outpost, with close to
70,000 Kenyans1 doing business there in
addition to the government’s investments.
Coming from the biggest economy in
the East Africa Community, Kenyans
already wield immense control of South
Sudan’s private sector, working in the
construction, air transport, hospitality,
banking,
insurance,
infrastructure
development and informal goods markets,
as well the NGO sector. More investment
opportunities thrive in aviation spare parts,
engineering and supplies, Information
and Communications Technologies (ICT),
printing and stationery as well as catering,
motor vehicle repairs and maintenance
and supermarkets.
Kenya’s exports to South Sudan almost
doubled between 2005 and 2009, rising
to 12.8 billion shillings ($157.7 million)
from 6.8 billion after South Sudan
rebels signed the peace agreement with
Khartoum’s administration that paved the
way for the referendum.2
With the successful vote for independence,
South Sudan has indicated a desire
to join the East African Community.
This move will encourage investors to
reap the dividends of peace in the new
country besides opening the way for
foreign traders to tap into the country’s
oil reserve and infrastructure projects.
Multi-nationals are increasingly seeking
to serve the market from their Kenyan
bases. Firms such as Nestle Kenya and
Unilever East Africa have expressed their
intention to get a larger foothold of the
Eastern Africa market with South Sudan
emerging prominently in their business
plans. Unilever East Africa, which sells
products such as Royco, Omo and
Vaseline, is investing 3 billion shillings in
Kenya to boost production, distribution
and sale processes.3 More economic
explorations are expected following the
successful secession vote.
Kenya’s geographical position gives her
an upper hand to immeasurably gain
from the referendum, given that it is
one of two countries in the East African
community that are not landlocked.
Tanzania, the other country that is not
landlocked, has no direct road or railway
links with South Sudan. The presumed
possibility of attainment of lasting peace
and tranquility will provide a conducive
business environment for Kenyan
investors. Kenya stands to gain from an
array of sectors including the aviation
industry,
the
telecommunications
sector, banking, insurance, mass media
(including
broadcasting),
tourism,
education, health and infrastructure
development among others given that
these sectors are relatively developed
as well as the readily available skilled
manpower. Kenya is also widely expected
to benefit from South Sudan’s oil deposits
1 Samwel Kumba and John Ngirachu, Sudan Votes, Kenya Hopes, Daily Nation, Posted Friday January 7, 2011, http://www.
nation.co.ke/News/africa/Sudan+votes+Kenya+hopes+/-/1066/1085782/-/gq179qz/-/index.html
2 http://www.reuters.com/article/2011/01/07/us-sudan-referendum-trade-idUSTRE7064WH20110107
3 Allan Odhiambo,Industries Opt for Kenya as New Hub for Regional Trade, Business Daily, Sunday March 13,2011, Posted
Tuesday, January 25 2011 at 00:00 http://www.businessdailyafrica.com/Corporate%20News/Industries%20opt%20for%20
Kenya%20as%20new%20hub%20for%20regional%20trade/-/539550/1095218/-/n64yo8/-/index.html
4 International Crisis Group,2010,Sudan: Regional Perspectives on the Prospect of Southern Independence Africa Report
No.159 PDF,http://www.crisisgroup.org/en/regions/africa/horn-of-africa/sudan/159-sudan-regional-perspectives-on-theprospect-of-southern-independence.aspx 06 May 2010
Policy Journal - Issue No.2 Quarter 1 2012 | 11
South Sudan Secessaion
Opportunities Abound for Kenyan Economy
which account for 85 percent of Sudan’s
estimated 6.614 billion barrels.
Democratic Republic of Congo (DRC)
and beyond.
In its May 2010 report titled Sudan:
Regional Perspectives on the Prospect
of Southern Independence Africa Report
No.1594 the International Crisis Group
(ICG) says Kenya stands to benefit a great
deal from the political development due
to its instrumental role in mediating peace
efforts in the Sudan.
According to the report by the Brusselsbased think tank, the South’s search for an
alternative transport corridor to reduce its
dependence on the North has opened for
Kenya an opportunity to attract billions of
dollars in fresh infrastructure investment
and an advantage in the scramble for
foreign direct investments to East Africa.
“Having hosted and led the regional
Intergovernmental
Authority
on
Development (IGAD) peace process
that yielded the CPA, Kenya has a
particularly strong interest in seeing
it implemented successfully. As the
economic powerhouse in the region, it
stands to benefit from the development
of a considerable market and major
infrastructure in the South, including as
a conduit for oil. Kenya long managed to
be pro-South without being anti-North”,
says the report dated 6 May 2010.
Kenya will also greatly benefit from three
major proposed projects connecting
East Africa including a new sea port in
Lamu, on Kenya’s Indian Ocean coast; a
railway network updating existing lines
and connecting Juba to Kenya, Uganda
and Ethiopia; and an extension of the
Trans-African Highway Network linking
South Sudan to Kenya’s Mombasa port.
Kenyan and South Sudanese officials
are also discussing a 1,400 km pipeline
from Juba to the Lamu port, which could
yield significant dividends and open up
a broader swathe of Kenyan territory
to economic modernisation. Several
international investors have expressed
interest in the plan, which is likely to
produce considerable competition for
Juba’s favour.
The report adds that Kenya has
strengthened its economic links with
Juba in recent years. “The opportunities
to do more are recognised as important
for national development, but are also
welcomed by wealthy private investors
and ordinary jobseekers”, says the report.
It adds that government officials envision
new markets for Kenyan exports not only
in South Sudan itself, but by way of it to
the Central African Republic (CAR), the
12 | Policy Journal - Issue No.2 Quarter 1 2012
A new pipeline would create an
alternative to the existing export route,
which runs some 1,600 km to Sudan’s
Red Sea Port (Port Sudan, in the North),
thereby reducing the landlocked South’s
dependence on Khartoum.
Banking
Banking, like all the other sectors of the
South Sudanese economy, was affected
during the years of the civil war. Before
the signing of the CPA, only a handful of
some banks based in Northern Sudan had
branches operating in the South, mainly
in the key towns such as Juba, Wau and
Malakal. The signing of the CPA was a
turning point for the banking sector in
the Sudan in general and South Sudan in
particular. There are several banks and
forex bureaux operating in South Sudan,
especially in Juba. These include major
financial service providers such as the
Kenya Commercial Bank, Nile Bank,
Buffalo Commercial Bank, and Equity
Bank among others. These institutions
offer services such as money transfers,
business financing, foreign exchange
market and money handling.
With the separation from the North, the
Kenyan banking sector is set to greatly
benefit from the huge market in South
Sudan. One of Kenya’s largest financial
institutions, Kenya Commercial Bank, is
already a key player in South Sudan’s
financial sector. Apart from its presence
in Uganda, Tanzania and Rwanda, the
bank now has 11 branches in South
Sudan, offering a wide range of banking
and financial services, specialising in
the provision of medium and long-term
finance as well as mortgage financing.
The subsidiary offers banking services
with tailor- made products and services
for non-governmental organisations,
individuals and the young civil service in
the Government of Southern Sudan. With
its head office in the South Sudanese
capital Juba, KCB (Sudan) Limited has
six branches in Juba and others spread
across the states: Yei (Central Equatoria),
Rumbek (Lakes), Yambio (Western
Equatoria), Bentiu (Unity), Malakal
(Upper Nile), Torit and Nimule (Eastern
South Sudan Secessaion
Opportunities Abound for Kenyan Economy
Equatoria), Kuacjok (Warrap), Aweil
(Northern Bahr el Ghazal), Wau (Western
Bahr el Ghazal) and Bor (Jonglei).
edge they need to compete on pricing –
that has become a key driver of market
share expansion. With a population of 12
million, South Sudan virtually remains
a virgin market without homegrown
manufacturing sector to meet local
demand for consumer goods.5
Another Kenyan-owned bank, Equity
Bank, has also established operations
in South Sudan with branches already
in Juba, Hai Malakal and Yei. The bank
plans to set up outlets in Wau, Kaya and
Nimule towns in the nearest future. In its
pursuit to diversify investments, the bank
has also discussed with the Government
of Southern Sudan (GoSS) its interest in
oil development.
Several foreign investment institutions
have explored using Kenyan banks as
intermediaries for ventures in South
Sudan.
Insurance
Kenya also stands to benefit from the
relatively new but growing insurance
industry. Already, a number of Kenyan
insurance companies have established
branches in South Sudan, with UAP
leading the pack. As a result, Kenyans,
who form the majority, have secured
employment besides exporting their
expertise to the South Sudanese as they
plough back the returns to the Kenyan
economy.
Transport
Kenya is positioned to pitch itself as a
logistics hub and transport conduit for
an independent but landlocked South
Sudan. This will provide an alternative
route for its oil, which has been the
greatest contributor to the incessant
border disputes between North and South
Sudan. Analysts say that China and Japan
who are eyeing the resource will readily
finance such an alternative exit route. The
resultant job opportunities and economic
boost will greatly contribute to Kenya’s
Gross Domestic Product. Kenya has
already launched a search for investors
to fund its $22 billion share of a planned
corridor connecting Ethiopia and Sudan
to the Kenyan coast with railways, roads,
telecommunications cables and a 1,400
kilometre pipeline. According to a report
by the International Crisis Group (ICG),
Toyota Tsusho, the investment wing of
the carmaker, is one of the companies
interested in the $1.5 billion pipeline.
The Southern Sudan government has
also kicked off plans to build a high
speed railway line to Uganda aiming
to link up with the planned high speed
standard gauge line between Mombasa
and Kampala. Kenya and Uganda are
also expected to benefit from exports of
agro-based products and raw materials
to South Sudan and access affordable
crude oil in return. Kenya is particularly
expected to benefit from the thousands of
jobs that the large infrastructure projects
are expected to create and take in a
large share of the 750 billion Shillings
that foreigners plan to pump into the
works. Completion of the mega- projects
is also expected to improve the flow of
Kenyan goods into the regional market,
giving its manufacturers the competitive
5 Michael Omondi, Kenya Reaps Billions from Sudanese
Separation Plan, Business Daily, Sunday March
13,2011, Posted Tuesday, June 1 2010 at 00:00 http://
www.businessdailyafrica.com/Company%20Industry/
Kenya%20reaps%20billions%20from%20Sudanese%20
separation%20plan/-/539550/929646/-/item/1/-/da21fw/-/
index.html
More opportunities exist in the
development of road infrastructure
in South Sudan where most states are
inaccessible due to poor or total absence
of road networks. Already, a number of
road construction firms have embarked
on tarmacking a number of roads in
the different states, mostly courtesy of
funding from development partners. The
independence of South Sudan is a great
opportunity for more Kenyan companies
to establish operations, hence exporting
local skills.
Manpower
It is common knowledge that enough
and skilled manpower is crucial for the
development of any country. Kenya
and South Sudan have already initiated
various programmes that support skill
and manpower exchange in such
sectors as the civil service, ICT, aviation,
hospitality, real estate and security among
others. Moreover, Kenya stands to benefit
a great deal by setting up institutions
offering training in various disciplines
across South Sudan. Those established
locally can also exploit the possibility
of attracting South Sudanese to come to
Kenya for training.
In the same vein, the establishment of
all governance institutions and clear
demarcation of its borders, South Sudan’s
status as a sovereign state will necessitate
the expansion and upgrade of the
Consulate of the Republic of Kenya in
Juba into a full embassy. This will create
more job opportunities and avenues
for enhanced diplomatic relations with
South Sudan. It will further boost trade
Policy Journal - Issue No.2 Quarter 1 2012 | 13
South Sudan Secessaion
Opportunities Abound for Kenyan Economy
ties as well as other spheres of bilateral
relations.
Housing
A majority of South Sudan’s population
lack adequate housing, not to mention
quality housing at that. Statistics show
that 83 percent of the population lives
in tukuls (cone-shaped mud huts, usually
with thatched roofs). Others live in straw
or wooden structures while others dwell
in tents. The influx of returnees from the
north and other areas has added onto
the strain on the available facilities. It
is also worth mentioning that even the
urban centres have inadequate housing
as well as sewerage facilities. Many
workers live in low quality housing
even as their numbers keep swelling by
the day. This provides Kenyan building
and construction firms with a chance to
venture into South Sudan to cater for the
rising demand for adequate and quality
housing.
Tourism
The tourism potential of South Sudan
is immense. However, due to historical
challenges, the sector is not fully
developed. Nevertheless, there are many
ongoing initiatives by the Southern Sudan
government as well as other development
and business partners. Though emerging
from several decades of war, Southern
Sudan’s grasslands and swamps are a
natural home to thousands of elephants,
zebras, hartebeeste, lions, buffalo,
bongo, monkeys, chimpanzees, several
species of antelopes and gazelles, various
species of wild hogs, giraffes and other
mammals. Some conservationists hold
the opinion that the number of animals
in South Sudan’s wild rivals the Serengeti
and other renowned game parks in
neighbouring Kenya and Tanzania.
Wildlife conservationists and researchers
estimate that there are over 1 million
white-eared kob antelopes; 300,000
14 | Policy Journal - Issue No.2 Quarter 1 2012
mongella gazelles; 200,000 tiang (African
antelopes of the genus Damaliscus); and
several oryxes. The major sanctuaries are
Boma National Park, Bandingilo National
Park and the Zeraf Wildlife Reserve,
among others.
Given the high potential of the tourism
industry and with the opening of the
region, Kenyan investors in the sector
including tour operators, hoteliers and
other stakeholders will greatly reap
from the untapped potential. This will
supplement the efforts already initiated
by the Government of Southern Sudan to
support the maturing industry. A number
of hotels are now operating in the region
in very close proximity to the tourist
attraction sites.
Education
Countries within the East African
Community have enjoyed relative
peace since their independence and
have had opportunities to grow in all
sectors including education. As South
Sudan struggles to re-build its education
system and infrastructure, the Kenyan
education sector stands a great chance
6 Southern Sudan Centre for Census, Statistics and
Evaluation (SSCCSE),Statistical Yearbook for Southern
Sudan 2010,PDF, http://ssccse.org/storage/statsyear-books/Statistical%20Year%20Book%20For%20
Southern%20Sudan%202010%20Final%20.pdf
of benefiting from the thirst for quality
education by South Sudanese. Statistics
from the Statistical Yearbook for Southern
Sudan 20106 published by the Southern
Sudan Centre for Census, Statistics and
Evaluation (SSCCSE) indicate that the
education sector is still underdeveloped
with a mere 27 percent of the 15 years
and above age bracket being literate.
The literacy rate for males stands at 40
percent compared to 16 percent for
females. Additionally, 53 percent of
the urban adult population is literate,
compared to just 22 percent of the rural
adult population. The National Baseline
Household Survey (2009) also puts 40
percent of the population between 15
and 24 as literate. The Gross Enrolment
Rate for primary school in 2009 was
72 percent with the Net Enrolment Rate
(NER) at the same level in the same period
at 48 percent. Similar gaps are present
in the secondary and tertiary levels of
education.
It is this situation that Kenyan education
entrepreneurs stand to maximise on by
setting up schools across South Sudan.
Majority of schools in South Sudan use
the Kenyan education system. In the
process, Kenyan construction firms will
greatly benefit from tenders to construct
Cont. on Pg.20
Questionnaire
1. Overall, how satisfied are you with the content of the journal?
Very unsatisfied
Unsatisfied
Somewhat satisfied
Very satisfied
Satisfied
2. If you rated your satisfaction with the content of the journal as either as very satisfied, unsatisfied or somewhat satisfied, please let us know what
you did not like.
3. How likely are you to purchase the policy journal the next time it is published?
Definitely
Probably
Might or might not
Probably not
Definitely not
Might or might not
Probably not
Definitely not
Biannually
Annually
4. Would you recommend the policy journal to others?
Definitely
Probably
5. How often would you expect the Institute of Economic Affairs to publish the Policy journal?
Monthly
Every two months
Quarterly 6. On a scale of 1 to 10, please rate the quality of the content of the journal, where 1 is very poor and 10 is extremely high
7. What policy issues would you expect to be carried in future issues of the journal?
8. Please let us know in what areas we could improve on in future
Form
PolicySubscription
Journal Policy
Journal Policy Journal Policy Journal
Please start my one year subscription (2 issues) for the Policy journal
Mr. /Mrs./Miss/Ms/Dr.
(Last Name)
/
(Middle Name)
Job Title:
/
(First Name)
Company:
Physical Location:
Postal address:
Telephone:
City:
Signature:
Postal Code:
Fax:
Date:
Please stamp this subscription form if subscription is for a company.
Policy Journal - Issue No.2 Quarter 1 2012 | 15
Stamp
To: Policy Journal
Institute of Economic Affairs
P.O.Box 53989 00200 Nairobi, Kenya
5th Floor, Block D, ACK Garden House
Tel: (+254-20) 2717402, 2721262
Fax:(+254-20) 2716231
E-mail: [email protected]
Website: www.ieakenya.or.ke
Stamp
To: Policy Journal
Institute of Economic Affairs
P.O.Box 53989 00200 Nairobi, Kenya
5th Floor, Block D, ACK Garden House
Tel: (+254-20) 2717402, 2721262
Fax:(+254-20) 2716231
E-mail: [email protected]
Website: www.ieakenya.or.ke
16 | Policy Journal - Issue No.2 Quarter 1 2012
Music
the Language of Integration?
Continued from Pg.9
Music the Language of Integration?
Congolese band Bwambe Bwambe joined
one of these off shoots from the original
Wanyika. Les Wanyika began performing
at Nairobi’s Garden Square and made a
big name for themselves with the massive
hit Sina Makosa.
By the 1970s political turmoil in Idi
Amin’s Uganda was having an impact on
the music business in East Africa. A group
from Kampala called The Super Forvics
made their first trip to Kenya in 1972 with
a bass player called Sammy Kasule. Three
years later, at the peak of Amin’s reign of
terror, Kasule would slip out of Uganda
and make his way across the border back
to Kenya. It was while playing in the band
Somajeko that Kasule was spotted by Taso
Stephanou, a Greek producer in Nairobi
who was looking for a bass player for his
new group Makonde.
Kasule was invited for a jam session with
the band and was promptly recruited to
join a line up that included top musicians
like Francis Njoroge and Shaban
Onyango. Makonde was one of the most
successful bands in East Africa during
that era that included a performance
alongside visiting international acts like
Boney M and Aswad. Kasule wrote the
memorable love song Marie Wandaka,
a single which sold over 10,000 copies
in 1979. By the 1980s Sammy Kasule
was an ever present feature on the East
African charts with his solo singles like
Kukupenda, Pesa Kuja and an English
version of the Nguashi Ntambo classic
Shauri Yako. He would later also join a
group of Congolese musicians resident in
Nairobi to form the band Vundumuna in
1985.
Kasule was by no means the only
itinerant Ugandan musician during this
era. Another talented guitarist and singer
had been doing the rounds of the music
scene in East and Central Africa. Philly
Lutaya, then aged 19 had traveled by
road to Kinshasa where he was exposed
to the vibrant Congolese rumba playing
devastating revelation that he was living
with HIV/AIDS. He later recorded an
album called “Alone and Frightened”
which together with an emotional
documentary brought attention to the
stigmatization facing AIDS patients at a
time when East Africans had not come to
terms with the reality of the disease.
with the band Vox Nationale du Congo.
The Congolese sound was also pervasive
in Uganda and a former member of Tabu
Ley’s L’Afrisa International set up an East
African base with regular performances in
Kampala. Michellino Mavatiko performed
songs in Swahili, Lingala and Spanish
with a fusion of Afro Jazz and Soukous
that influenced Ugandan musicians like
Philly Lutaya. Lutaaya like many other
Ugandans left the country for Kenya
where he began as a session player at
different recording studios in Nairobi. He
also linked up with compatriot Sammy
Kasule in the band Orchestra Jambo
Jambo. Other musicians from Uganda
who were in Kenya at the time included
Tony Senkebejje who had set up his base
playing at the hotel circuit in Mombasa.
The period in Nairobi saw Lutaaya’s career
flourish in the multi cultural setting, partly
with the band Les Kinois and also with
his solo records like Nsunzi Watali, Asaba
and Univumie. He eventually left Kenya
for Sweden in 1984, a similar path to that
taken by Kasule in the later part of the
decade. Lutaaya and a group of Ugandan
exiles in Stockholm formed a band called
Miti Mito, which he said was the product
of their time in Kenya and each member
was destined to move to Sweden after the
preceding one had arrived.
In a tragic twist of fate Lutaaya would
return to Kampala in 1989 with the
Other Ugandan musicians who crossed
over into Kenya include Evelyn Grace
who started singing in hotels at Coast
before getting a spot at Nairobi’s
Intercontinental Hotel while J.J Otieno
made a huge impact with the group
Earthquake when they released one of
the biggest hits of 1984 called Kutanga
Tanga. One of East Africa’s greatest flutists,
Samite Mulondo, who had fled to Kenya
in 1982 as a political refugee, joined the
band African Heritage, playing alongside
Ayub ‘Job’ Seda, Francis Njoroge, Gido
Kibukosya and Mbarak Achieng.
Nairobi was clearly the musical hub of
East Africa from as early as the mid 1960s
with the arrival of the first lot of Congolese
and Tanzanian musicians. This exodus
was precipitated by political turmoil, as in
the case of Uganda and to some degree,
Congo (Zaire), but also the economic
opportunities that Kenya offered. The
presence of the major record companies
such as EMI, CBS and Polygram and the
only pressing plant for vinyl records in the
region (East Africa Records) presented an
irresistible attraction to the best musicians
from the surrounding countries.
Most of the Swahili and Congolese music
produced in Kenya originated with the
multinational giants like Polygram and
CBS/Sony or was released by independent
labels run by British or Asian Kenyans.
Mike Andrews and his A.I Records based
in Nairobi is an example of one such
company that handled many of the East
African bands throughout the heydays of
the 70s and 80s.
The appeal of the big name bands to
Policy Journal - Issue No.2 Quarter 1 2012 | 17
Music
the Language of integration?
a broad section of the East African
population was the language of the
music which was a local variant of the
Congolese sound or Swahili rumba, a
unique hybrid of Kenya-Tanzania sound.
Les Mangelepa for instance received
a gold disc in June 1980 for hitting the
60,000 sales mark with the hit song
Nyako Konya, a tune which was hailed
as a truly East African hit. This was only
the second time for a song to attain such
a status, the first having been Gabriel
Omolo’s Lunchtime in 1974.
During a visit to Nairobi in 1978,
Congolese saxophonist Verkys, whose
record label Veve distributed music from
Kinshasa through Polygram (Kenya), said
that with the state of the art facilities
available at the time, there was no reason
why the quality of music from Kenya
should not have been the best in Africa.
Incidentally it was the Congolese band
OS Africa that opened the Starlight Club
in 1964 and another such band Boma
Liwanza was the resident band there for
a time in the 70s.
Armstong once recalled how the then
Zambian President Kenneth Kaunda
came into Starlight, paid the KSH. 5.00
entry fee and proceeded to enjoy the
night from the anonymity of bar. It was
Kaunda’s view that clubs like this be put
up in every African capital to hasten the
social integration, especially in the years
after independence.
The trend set by the first two generations
of East African musicians in breaking
down the political and economic barriers
to create an integrated market for culture
has only been accelerated in recent years.
In the 1990s Uganda’s Joseph Manyanja
(Chameleone) traveled to Burundi and
Rwanda trying to find his musical feet
before eventually settling in Nairobi.
Chameleone joined forces with fellow
Ugandan Bebe Cool and Kenya’s Redsan
to create a formidable though short lived
musical force. This collaboration yielded
hits like Bageya, which was a No. 1, hit
across East Africa. No doubt with an
eye on the greater East Africa, many of
Chameleone’s biggest hits are written in
Kiswahili, Mama Mia, Kipepeo, Bei Kali
http://bosquesonoro.blogspot.com
It is also worth noting that the bands
based in Nairobi had a membership
that was drawn from across East Africa
and because their hits transcended the
borders, they were at home performing
before crowds at venues like Nairobi’s
Starlight Club. Robbie Armstrong who
managed the Starlight, estimated that
12,000 people went in through the doors
of the club every month to enjoy the live
music of bands like Air Fiesta and Samba
Mapangala’s Virunga. His initial plan was
to open similar clubs in Arusha, Tanzania
and Jinja, Uganda, although that didn’t
materialize.
18 | Policy Journal - Issue No.2 Quarter 1 2012
and Mambo bado.
The liberalisation of the media in
Tanzania in the post Nyerere era, created
the opportunity for a genre of urban
music called Bongo Flava to emerge as
an East African phenomenon. Tanzanian
youth started rapping in the 1980s
inspired by American hip hop and soon
enough developed their own unique way
of creating this music. Today, this sound
has been enriched by local melodies and
Kiswahili lyrics peppered with phrases in
English. Bongo Flava now transcends the
borders and can be heard playing in the
clubs and the radio stations in Nairobi
and Kampala, just as much as in Dar Es
Salaam.
The financial viability of the music
business is a factor in the growth of East
African music. In the old days the bands
had many members and performers
and depended on the largesse of club
owners who also controlled the musical
instruments. Today, the artistes are seen
more as ‘pop stars’ and entrepreneurs in
the mould of their U.S idols, commanding
up to KSh 300,000 in appearance fees at a
time. One of the first Bongo Flava artistes
to cross borders was T.I.D, whose debut
album Sauti ya Dhahabu sold 350,000
copies across Africa. The Tanzanian
then collaborated with Necessary Noize
and Mery Myra of Kenya and Uganda’s
Klear Kut. The production team behind
him included some of East Africa’s finest:
Tedd Josiah, Homeboyz, Steve Jean and
P Funk.
Most of these stars are in their twenties
and view fashion and videos as an
important tool of promotion. East African
TV was a trendsetter as a purely music
video channel broadcasting across Kenya,
Tanzania and Uganda. The concept of
reality television has gripped the region
as witnessed in the popularity of the
Tusker Project Fame where contestants
are thrown together in a house where
their skills go under the spotlight of
Music
the Language of Integration?
each month.
In Uganda, where musicians depend less
on royalties and more on performance
fees, the Performing Rights Society says
the music industry has the potential of
generating up to USH 3 billion (USD 1.4
million) every year.
This they say would rank music as among
the Top 20 highest taxpayers in the
country. As it is, the Society collected a
paltry USH 16 million (USD 7, 804) last
year
viewers from the East African countries.
The recent winner of this show was a 25year-old Kampala resident called Davis
Hillary Ntare who beat other contestants
to emerge the winner of KSH 5 million
and a recording contract with South
Africa’s Gallo Records.
Rwanda and Burundi have now joined
the three East African countries to
spearhead economic, social and political
integration of the 120 million people of
the region, Clearly, the cultural integration
of East Africans is taking place at a more
accelerated pace than other aspects of
life in the region. The youth of the region
proudly promote their homegrown music
and use their pop culture to address social
change and the critical issues of the day,
from HIV AIDS to peace building.
One of the most popular artistes in East
Africa today is a man who came to Kenya
in 1995 as a refugee, fleeing turmoil in
his home country of Burundi. Jean Pierre
Nimbona aka Kidum first played with the
Hot Rod Band before setting up his own
outfit called Boda Boda. The name comes
from a popular mode of bicycle transport
which originated on the Kenya – Uganda
border and which Kidum says is symbolic
of the way his own music transcends
across the borders of East Africa.
Some of his biggest songs are
collaborations with fellow East Africans,
like Tanzania’s Lady JD on Nitafanya,
Karibia with Kenya’s Nameless and
the infectious hit Sitarudi Nyuma with
Uganda’s Juliana Kanyomozi. Kidum says
the artistes of the region are miles ahead
of their political leaders on integration.”
The politicians are arguing on who
the next Secretary General of the East
African Community will be, while we
the musicians from the member states are
working together effortlessly,” he says.
A leading provider of mobile phone
downloads in East Africa estimates
that the business opportunity is worth
USD 4 million a year. Cellulant, which
is a Nairobi based company, says the
Government takes 26 per cent in taxes
per download, with the operator taking
up to 60 per cent and 10-12 per cent paid
to artistes in royalties.
The Common Market Protocol for East
Africa which took effect in July 2010
marked the beginning of the process
which ultimately will result in a political
and economic union for Kenya, Tanzania,
Uganda, Rwanda and Burundi. The
Protocol allows citizens of East Africa
to freely relocate within member states,
bringing education and expertise where
they are needed most.
A successful artiste can attract anywhere
between 200,000 and 300,000 downloads
over 3 months.
The economy of music in the region has
grown by leaps and bounds in recent
years thanks to corporate endorsements,
performance fees and royalties.
There are huge possibilities that exist
before the full impact of the economy
of music can be realised. However, the
foundation for this lucrative business is
already firmly in place and it will take
a smart financial approach across the
region to unlock the potential.
The Music Copyright Society of Kenya
reported revenues of KSH 171 million
from licensing entertainment spots,
concerts, mobile ringtones and public
service vehicles like taxis and matatus
(minivans).
Broadcasting stations paid a further KSH
13 million up from just KSH 5 million the
previous year. The highest paid Kenyan
musicians like Nameless and Amani earn
up to KSH 100,000 in royalties alone
New media has stepped into the void left
by the distribution networks of old. The
physical structures of record companies
and record stores have been replaced
by the virtual industry of downloads and
digital music networks.
East African artistes offer a perfect template
for the political class in breaking down
the existing barriers, overcoming mistrust
and creating a powerful cultural and
economic synergy. It is only by following
this lead that the true economic and
social potential of the 120 million people
of the region can be realized.
Policy Journal - Issue No.2 Quarter 1 2012 | 19
Continued from Pg.14
South Sudan Secession: Opportunities Abound for Kenyan Economy
educational facilities and infrastructure.
Similarly, setting up of schools locally
to cater for South Sudanese students will
contribute to the growth of the Kenyan
economy.
Additionally, it is envisaged that the
exporting of Kenyan education manpower
will shoot up as demand for more
teachers arise in South Sudan. Already
the Kenya National Examinations Council
(KNEC) offers examinations to students in
South Sudan and the body expects that
the country may fully adopt the Kenyan
education system, a situation that will
most likely boost ties between the two
neighbouring countries. The body also
hopes to help the new country develop
its own certifying institution.7
Manufacturing
The industrial sector in South Sudan
is essentially composed of light
consumer goods industries involved
in manufacturing handicrafts, building
and construction, electricity and water
and mining. South Sudan also has a
vast forest cover which is rich in diverse
tree species which provide rare timber,
wood fuel, fruits, medicinal barks or
roots and oil. The forest also creates a
good environment which may be used
to cultivate agricultural products such
as mushrooms. However, the massive
agro-manufacturing industries that were
established prior to the civil war are
now shadows of their former selves,
with sophisticated machinery lying
unused and some was rusting away. A
typical example is the Nzara Agricultural
Complex in the agriculturally-rich Western
Equatoria State, that remains one of the
most economically sound investments
in South Sudan. Kenyan entrepreneurs
7 Samwel Kumba and John Ngirachu, Sudan Votes,
Kenya Hopes, Daily Nation, Posted Friday January
7, 2011, http://www.nation.co.ke/News/africa/
Sudan+votes+Kenya+hopes+/-/1066/1085782/-/
gq179qz/-/index.html
20 | Policy Journal - Issue No.2 Quarter 1 2012
stand a great chance of revamping such
a facility and many others that remain
unexploited.
Another area with great potential for the
Kenyan entrepreneur is the beverage
manufacturing industry. South Sudan
Beverages Limited (SSBL) remains the
biggest beverage manufacturer in South
Sudan. The separation is an opportunity
for beverage companies operating in
Kenya like the Diageo-owned East African
Breweries and Keroche Industries to
spread their wings to South Sudan. Coming
at a time when alcoholic drink sales have
gone down following the enactment of
the Alcohol Act, the Kenyan companies
stand a chance of ‘compensating’ for
their losses by venturing into the South
Sudanese market, where restrictions
on alcohol consumption are not yet in
place.
Investment opportunities also exist in the
mining, fisheries, pharmaceutical and
power generation sub-sectors among
others. The fisheries sector remains
unexploited but the most lucrative,
owing to the vast River Nile that is
home to a variety of fresh fish. Given the
dwindling productivity of Lake Victoria’s
resources due to the choking hyacinth
weed, Kenyan entrepreneurs now have a
chance to invigorate the fish processing
industry as well as in the provision of
fishing equipment.
Mass Media
The Kenyan print and broadcasting
media are set to be some of the highest
beneficiaries of the new country. As was
evident during the January referendum
vote, Kenyan media houses commanded
a regional lead with the Nation Media
Group, the Standard Media Group and
Royal Media Services stamping their
authority alongside the world’s leading
media brands. Similarly, owing to frequent
interest and coverage of events in South
Sudan, it seems quite clear that obtaining
of broadcasting frequencies will not be a
hurdle for the media houses, owing to the
goodwill and enthusiasm as expressed by
the Government of Southern Sudan.
Similarly, a number of South Sudanese
media houses heavily rely on Kenyan
expertise and the birth of the new country
and the much-anticipated enactment
of the South Sudanese Media Act will
provide a conducive environment for
business.
South Sudan Secessaion
Opportunities Abound for Kenyan Economy
Water, Health and Sanitation
From professionals to construction
engineers, Kenya stands to reap from the
independence of South Sudan. With just
over half of its population having access
to improved sources of drinking water
(with 67 percent of the urban population
having an upper hand in accessing
clean water). The rural population is still
marginalised in the provision of basic
services, water included. Similarly 80
percent of the South Sudanese population
does not have access to modern sanitation
facilities. The above have contributed
immensely to high rates of the spread
of communicable diseases; a situation
that has led to the strain on the available
health facilities. Kenyan entrepreneurs
will greatly benefit from investing in
this sector. This will supplement the
initiative already being undertaken by
non-governmental organization and the
Government of Southern Sudan, through
the respective state governments.
Moreover, Kenyan medical personnel
will now have an opportunity to employ
their skills in South Sudanese health
institutions.
Airlines
The aviation industry is another potential
beneficiary of the secession of South
Sudan. Already, a number of airlines
have pitched tent in the South Sudanese
capital Juba where up to 70 flights are
being received every day at the Juba
International Airport. Notable Kenyan
operators on the route include Jetlink,
which pioneered scheduled flights to
Juba in 2005, and now flying twice daily
from Nairobi, and East Africa Safari Air
Express that operates one flight per day.
Kenya Airways also commenced daily
flights from Nairobi to Juba on June 7,
2010. Being an economic hub in the East
African region, the Kenyan economy is
expected to boost its revenue through
enhanced use of the Nairobi-based Jomo
Kenyatta International Airport as the
connection route to Juba, not to mention
the employment opportunities at the
airline companies.
Telecommunications
The
fledgling
telecommunications
sector in South Sudan presents a great
opportunity for Kenyan entrepreneurs.
The wide market and the gusto by South
Sudanese firms in particular and South
Sudanese in general to catch up with the
latest developments in technology makes
it even more attractive to invest in the
sector.
Although there is a high presence
of mobile telephone companies in
South Sudan, the data market remains
unexploited compared to the voice
business. Providers such as Sudani,
MTN, Gemtel, Vivacell and Zain have
capitalised to a large extent on the voice
market. With the massive development
of the data business by Kenyan mobile
telephony providers like Safaricom, Airtel
and Orange, it is clear that an additional
market waits in South Sudan.
Challenges
In spite of the huge potential of the
South Sudanese market, a number of
likely obstacles to smooth and free trade
need redress. The challenges range
from complications in issuance of travel
permits, business licences, insecurity
and unfriendly tax regimes to improper
treatment of citizens from Kenya. There is
need to sensitise both sides on the need for
co-existence for common development.
This will require the commitment of both
governments and stakeholders.
Investment Environment
In its bid to encourage investment in the
new state, the Government of Southern
Sudan (GoSS)8 has taken steps to cultivate
and nurture a conducive investment
environment in the country. It has put in
place necessary procedures and systems
to facilitate rapid business setup in the
country through the respective ministries
and commissions. GoSS also organises
trade fairs in which potential investors are
8 Government of Southern Sudan, 2011,http://www.goss.org/
Policy Journal - Issue No.2 Quarter 1 2012 | 21
South Sudan Secessaion
Opportunities Abound for Kenyan Economy
able to meet government officers as well
as their potential Sudanese counterparts
in Juba and other places. These are all
aimed at creating awareness on the
investment opportunities for foreign firms
and individuals, Kenya included. Some
of the specific steps taken by the GoSS to
promote investment in the country:
• Establishment of Southern Sudan
Investment Authority (SSIA);
• Development of investment laws
which spell out the investment
guidelines in the country;
• Equal treatment and opportunity for
local and international investors; and
• Enactment of specific laws that support
investment by making provisions for
attractive fiscal regimes, protection
of industrial and intellectual property
rights, credible guarantee of legal
security and investment stability,
repatriation of profits and dividends,
custom duties exemptions, as well as
reduced red tape and bureaucracy.
The specific investment policies include:
• Policy of non-discrimination - Foreign
investors are allowed to invest in
and run businesses in any sector in
Southern Sudan;
• Guarantees against expropriation
- GoSS shall not nationalise any
enterprise. Further, no investor will
be compelled (by law or otherwise) to
Advertise
22 | Policy Journal - Issue No.2 Quarter 1 2012
cede any part of investment capital;
• Protection of Intellectual Property
laws - GoSS shall protect all
intellectual property and rights of all
persons and investors. All trademarks,
copyrights, patents among others will
be enforced;
• Access to Public Information Investors have open and direct access
to all laws and decisions of courts,
other adjudicative bodies and to any
public information;
• Repatriation of capital, profits and
dividends - Investors have the right to
freely repatriate their money in freely
convertible currency or dispose of it in
any manner they deem fit, subject to
tax and other lawful obligations; and
• Dispute Resolution - Any aggrieved
investor has recourse to the courts of
South Sudan which has jurisdiction
over business disputes. Parties to
a dispute are also free to specify
alternative
dispute
resolution
mechanisms they may agree upon. Any
investor in dispute with the GoSS has
recourse to internationally accepted
dispute resolutions mechanisms.
REFERENCES
1. Allan Odhiambo, 2011, Industries Opt for Kenya as New Hub for Regional Trade, Available at: http://www.businessdailyafrica.com/Corporate%20News/Industries%20opt%20for%20Kenya%20as%20new%20hub%20for%20regional%20trade/-/539550/1095218/-/
n64yo8/-/index.html
2. Government of Southern Sudan, 2011, Available at: http://www.goss.org/
3. Helen Nyambura-Mwaura and Elias Biryabarema (East Africa Poised to Tap a Reborn South Sudan, 2011,Available at: http://www.
reuters.com/article/2011/01/07/us-sudan-referendum-trade-idUSTRE7064WH20110107
4. International Crisis Group,2010,Sudan: Regional Perspectives on the Prospect of Southern Independence Africa Report No.159 PDF,
Available at:http://www.crisisgroup.org/en/regions/africa/horn-of-africa/sudan/159-sudan-regional-perspectives-on-the-prospectof-southern-independence.aspx
5. Michael Omondi, 2010, Kenya Reaps Billions from Sudanese Separation Plan, Available at: http://www.businessdailyafrica.com/
Company%20Industry/Kenya%20reaps%20billions%20from%20Sudanese%20separation%20plan/-/539550/929646/-/item/1/-/
da21fw/-/index.html
6. Samwel Kumba and John Ngirachu, 2010, Sudan Votes, Kenya Hopes, Available at : http://www.nation.co.ke/News/africa/
Sudan+votes+Kenya+hopes+/-/1066/1085782/-/gq179qz/-/index.html
7. Southern Sudan Centre for Census, Statistics and Evaluation (SSCCSE),2010, Statistical Yearbook for Southern Sudan 2010,PDF,Available
at: http://ssccse.org/storage/stats-year-books/Statistical%20Year%20Book%20For%20Southern%20Sudan%202010%20Final%20.
pdf
To advertise in the journal contact:
Communication Officer
5th Floor, ACK Garden House, 1st Ngong Avenue • Postal Address: P.O. Box 53989 - 00200
Tel.: +254-20-2717402, +254-20-2721262 • Fax: +254-20-2716231
Email: [email protected] • website: www.ieakenya.or.ke
By Andrew M. Mugambi
Kenyan Food Security Policy:
Lessons From China
K
enyan agriculture contributes 24
per cent of the gross domestic
product (GDP) and contributes
60 per cent of export earnings. It directly
employs 70 per cent of the population
and further contributes 27 per cent of
the GDP through forward and backward
linkages with manufacturing, distribution
and marketing related service according
to the Strategy for Revitalizing Agriculture.
The agricultural sector is, therefore,
critically important to the Kenya’s
national economy.
Kenya has a long history of agricultural
policy making, but the first food policy
in independent Kenya was developed in
1981: Sessional Paper No.4 of 1981 on
National Food Policy. This Paper was
well articulated, but was never fully
implemented. Indeed, a former Food and
Agricultural Organisation (FAO) Country
Director, Andrew Norton, commented
when he was leaving Kenya that if the
country fully implemented that Policy,
Kenya would have experienced a green
revolution in less than 10 years. Like
many other policies in the agricultural
sector, it suffered from a lack of funding.
This policy was reviewed in 1994
(Sessional Paper No.2 of 1994) and had
a very comprehensive chapter on food
security.
Kenya has experienced regular food
shortages and even famines – despite
having comprehensive food security
policies – for various reasons- failure to
implement planned activities, inadequate
funding, poor leadership, corruption and
vested interests. The policy is clear that
Kenya requires 3 million bags of maize/
cereals in kind and a further 3 million
bags worth of cereals in cash at the
treasury annually.
This requirement is rarely met. Kenya
produces 30-34 million bags of maize
and 6-9 million bags of beans annually
in a normal year. A lot of this food goes
to waste due to poor or no storage at
the farms. Unplanned maize exports
often threaten food security. Wheat is an
important staple food especially for the
urban population. Its production dropped
from 177,100 metric tons in 1998 to
60,100 metric tons in 2002 against an
estimated demand of 720,000 metric
tons annually. Rice, another staple crop,
has recorded disappointing performance
remaining low at 52,000 metric tons
annually. Kenya produces about 500,000
metric tons of raw sugar annually against
Policy Journal - Issue No.2 Quarter 1 2012 | 23
Kenyan Food Security Policy
Lessons from China
a demand of 700,000 metric tons. The
balance is imported from COMESA
countries. The shortfall for most of the
staple foods in meeting self-sufficiency is
significant.
The irish potato is the second most
important staple food to maize in Kenya.
One million tons are produced annually
in this country. The potato subsector
is faced by a number of challenges
including inadequate research land/
facilities (most of the research land of
250 hectares in Tigoni was grabbed in the
1990s according to the Station Director,
Mr. James Kabira), inadequate land for
seed bulking and limited funding for
research. A cold store in Molo stopped
functioning several years ago.
Production and Marketing
Infrastructure
Kenya’s agriculture is predominantly
small scale farming mainly in the high
rainfall areas. The small scale farming
subsector accounts for 75 per cent of
the total agricultural output and 70 per
cent of marketed agricultural produce.
Small scale farmers on average own
2-5 acres of land. They produce 70 per
cent of maize, 65 per cent of coffee, 50
per cent of tea, 80 per cent of milk and
85 per cent of fish. Similarly, Chinese
agricultural production is dominated by
small scale farmers leasing, on average,
one hectare per household from the state.
For all practical purposes the Chinese
smallholder is like a freeholder in Kenya;
rural families are guaranteed land to
cultivate. They produce the bulk of all
major food commodities except wheat.
Recent surveys (2005) by the Ministry
of Agriculture indicate that only 60 per
cent of the small holder farms in Kenya
are under production while in China, up
to 95 per cent is fully utilised. In Kenya’s
arid and semi-arid lands, up to 84 per
24 | Policy Journal - Issue No.2 Quarter 1 2012
cent of the land mass remains largely
underutilised. The potential, therefore, to
produce more food both in high rainfall
areas and ASALs is immense.
Agricultural productivity is constrained
by a number of factors including cost
of inputs, limited extension services,
overdependence on rain fed agriculture,
poor livestock husbandry, lack of markets
and limited adoption of technology and
innovations. However, for some crops,
productivity of the Kenyan farmers is
close to international standards.
Given here below are some comparisons
on land productivity in Kenya and
China.
Crops
Yields in Kg/Ha
Kenya
China
Vegetables
11,392
25,500
Maize
1,657
5,200
Wheat
2,293
4,000
Rice
3,635
4,600
Sugar cane
71,460
-
Source: Ministry of Agriculture (Kenya), FAO and Haifa Feng
One of the major inputs contributing to
high crop yields is the fertiliser. Fertiliser
usage in Kenya is very low indeed
averaging 50kg per hectare as compared
to 400kg/ha in China. The Government
will have to deliberately boost fertilizer
utilisation in this country. Programmes
like “Kilimo Biashara” which subsidise
fertilizer prices for targeted poor
smallholder farmers will have to be up
scaled significantly. Other cost cutting
measures like exploring the viability of
establishing a fertilizer plant locally to
supply the East Africa region are urgent.
Seed Management
Gene banks are almost non-existent in
Kenya and where they exist; they are
poorly managed especially in public
institutions - suffering frequent power
interruptions, irregular viability testing
and poor record keeping.
There are more than 30,000 varieties
of vegetable plant species that have
been collected and are maintained and
stored in germplasm banks in China for
use in plant breeding and production
programmes throughout China. In
addition, there are almost 1,000 new
hybrid varieties that have been bred
in the recent past. In one of those gene
banks at the Beijing Vegetable Research
Centre, various types of seeds have been
stored in cold rooms for the last 35 years.
Viability is tested every two years. There
has never been power outage at the
gene bank since it started operations,
since emergency power supply is always
guaranteed. That is the seriousness that
the Chinese Government attaches to
gene banks.
Selling adulterated seeds or any
substandard farm inputs attracts very
heavy legal penalties in China; sometimes
up to 15 years in jail and heavy fines.
Research
Kenya has a long history of agricultural
research and a well developed agricultural
research infrastructure that covers all
ecological zones and caters for crops,
livestock, fisheries and related fields.
There are in total 28 agencies (public
and private) that engage in agricultural
research in Kenya. Their work is however
not co-ordinated and duplication of
research activities is common. Domestic
funding for research programmes in
Kenya is very low amounting to only
0.01per cent of the national budget. The
ideal recommended level of funding is 2
per cent of the agricultural gross domestic
product for Kenya to meet agricultural
development targets and ensure national
food security according to the Heads
Kenyan Food Security Policy
Lessons from China
of State under the New Partnership for
Africa (NEPAD). A large agricultural
research capacity both in human and
capital has been created mainly through
development partners’ funding. This is
not sustainable. Furthermore, the national
priorities are unlikely to be addressed
under such an arrangement.
A lot of dry land farming technologies
and crop varieties like cassavas, millets,
sorghums, sweet potatoes and wheat
developed by the Kenya Agricultural
Research Institute (KARI) are still in the
shelves mainly due to a dysfunctional
research-extension linkages and low
funding of extension services.
Irrigation
In Kenya, irrigation-based farming is very
limited. It is mainly developed in form
of irrigation schemes and large scale
irrigation for some crops like rice and
coffee. Large commercial farms account
for 40 per cent of irrigated land while
the small holder farmers and government
managed schemes account for 42 per
cent and 18 per cent of irrigated land,
respectively.
Kenya has a significant potential for
irrigation that remains unexploited. Out
of 540,000 hectares of irrigable land, less
than 90,000 hectares or 16.6 per cent
have been irrigated.
In contrast, 55 per cent of arable land in
China is irrigated. Although the Chinese
Government has invested heavily in
irrigation systems especially in the
construction of huge canals near the
main rivers like the yellow river, the more
interesting aspect of irrigated agriculture
in China is the community involvement
in that activity; Chinese farm families live
in villages or collectives and although
most of china is flat, the villagers take
advantage of any sloping ground around
them to scope a dam at the bottom of
those hills to collect water for irrigating
their farms. Indeed, irrigation systems
in China are one major contributor to
national food security and learning
example to the entire world.
Kenya has developed a draft irrigation
policy to address food security issues
and develop the ASALs. It is hoped that
this policy, if well- funded, will not only
improve the food security issue but also
significantly improve rural incomes
Food Storage
The National Cereals and Produce Board
(NCPB), grain handlers and milling
companies have developed an impressive
grain storage infrastructure across this
country. In 1980s and 1990s, the NCPB
moved its store development programme
out of the traditional cereals producing
areas and built several stores in arid and
semi-arid lands of the country with the
support of the Italian Government. Those
stores are, however, empty most of the
year especially when grain is needed in the
dry periods. The NCPB grain distribution
arrangements are certainly inefficient and
lacking in strategy. There is a rush by the
government to distribute grain in ASALs
when the local populations are already
starving.
Production Technologies - The
Way Forward
Kenya has no choice but to adopt the
latest production technologies to address
the problems of food shortages and food
insecurity.
Production, especially of vegetables,
under greenhouses and plastic tunnels is
one such technology to move farmers out
of dependency on rain fed agriculture.
This technology will also raise production
per unit areas among other advantages
especially for the heavily populated
areas of Central Kenya, Western and
Nyanza provinces. Gross margin analysis
done by the Ministry of Agriculture
on this technology indicates that this
form of farming is very profitable. It is
encouraging to not that this technology
that was introduced to the smallholder
farmers in Kenya in early 2000 by an
Israeli company, Amiran Limited, in a
Policy Journal - Issue No.2 Quarter 1 2012 | 25
Kenyan Food Security Policy
Lessons from China
joint programme with a local bank- Equity
Bank is being adopted fast. Greenhouses
and plastic tunnels technology was almost
confined to the floriculture subsector
earlier than 2000.
A soilless culture production system
is the another efficient technology for
production of vegetables, in particular,
where land is very limited like in urban and
peri-urban settings. Urban agriculture has
been adopted by the recently published
National Land Policy and will go a long
way in solving food insecurity especially
among the urban poor. It will also boost
urban food supply especially to the cities
of Nairobi, Mombasa and Kisumu.
Tissue culture technology has recently
been adopted especially in banana
production and has reduced the
production period from 18 months to
about 10 months. Banana production in
Central Province - Meru and Embu has
increased tremendously in the recent past
because of this technology. Widespread
adoption of tissue culture technology will
certainly reduce food insecurity in this
Country.
Agriculural Extension Services
The government agricultural extension
services have been declining both in
staff numbers and in funding for the last
two decades. There are currently 8,000
technical officers with the Ministry of
Agriculture and about half that figure for
the Ministry of Livestock Development.
This is a ratio of 1:1093 farm households
(there are 4,939 field extension officers).
This ratio cannot deliver an effective
extension service. Financial resources
allocation by the Government dropped
from 5.9 per cent of the national budget
in 1980s to 1.7 per cent in 2003/04
financial year. Financial allocations to the
agricultural sector rose to 3.5 per cent of
the national budget in 2010/11 financial
26 | Policy Journal - Issue No.2 Quarter 1 2012
year. This is, however, far below the ten
per cent recommended by African heads
of state in Maputo in 1997. This state of
affairs is unsustainable. The government
has proposed several models of extension
delivery to address these constraints in
the latest extension policy: National
Agricultural Extension Policy (NAEP)
of 2001. These include outsourcing
extension services to universities and
the private sector and farmers paying for
certain services for commercial crops.
Whatever the circumstance, the issue of
inadequate staff and funding has to be
addressed urgently to avoid stunting the
growth of the economy and worsening
food insecurity.
The aspect of Chinese farm families living
in villages and widespread practice of
monoculture cropping in most of Asia
has made extension delivery systems
fairly cost-effective and efficient there.
The policy has proposed similar models
in certain parts of the country, but cannot
be discussed in this paper.
Food Marketing Processing and
Distribution
Kenya government liberalised agricultural
marketing in 1992-94. Price setting for
both inputs and outputs was abolished.
The heavy presence of parastatals and
state marketing boards in regulation,
marketing and processing has distorted
liberalisation. These state corporations
such as the NCPB, and pyrethrum and
cotton boards, administratively set
prices and hence the resultant market
distortions both in produce distribution
and investments into the sector. Indeed,
official price setting has led to the collapse
of subsectors like pyrethrum, coffee and
cotton. Although there were other factors
contributing to the collapse of those
subsectors, the parastatal controls and
mismanagement were the main causes.
Some of those parastatals are market
leaders in their segments and once they
set the prices all other marketers are
likely to follow.
Distribution of food in Kenya especially
the essential commodities face two
major challenges: poor road and other
infrastructure networks and inadequate
market information. Although some
innovative
individuals
and
NonGovernmental Organisation (NGOs) have
set up market information management
systems based on mobile telephony,
market information management remains
Cont. on Pg.30
By Owino Magana
Youth Unemployment, State
Failure and Policy Implications
For Kenya Vision 2030
I
f Kenya Vision 2030 (KV 2030)
is implemented as per plans laid
out in its Medium Term Plan
2008-2012 (MTP) and the Youth
Employment Marshall Plan (YEMP),
the vision is unlikely to be realized.
This would, very likely result in an
increase in youth unemployment
with dire implications for national
security. Indeed, the possibility of
state failure, courtesy of the high
social costs associated with youth
employment, is not far-fetched!
This is not an indictment of KV 2030,
but rather an indictment of the MTP.
But perhaps, before developing this
discussion further, it is fitting to delve into
some background.
Kenya has, in the 2011 Failed States Index
(FSI), been ranked at position 16 out of
177 of the 193 United Nations member
countries surveyed. This is a marginal
improvement in Kenya’s position of 13 in
the 2010 FSI.
The FSI, now in its seventh edition, is an
annual index prepared by Fund for Peace,
and published by the respected Foreign
Policy magazine, also of the USA. It is a
ranking of the world’s most vulnerable
countries, in the context of governance
and security. Three dimensions impacting
governance and national security –
political, economic and social – are
considered. Depending on how countries
score on a scale of 1-10 (1 being the most
stable and 10 being the least stable),
based on 12 pre-determined performance
indicators in each of the 3 foregoing
categories, an overall cumulative score
is computed. The worst case scenario is,
therefore, an overall score of 120.
Three African countries, Somalia, Chad
and Sudan top this year’s FSI. Indeed,
Somalia, with a score of 113.4, has held
the No. 1 spot over the last four years
and is by security experts, considered
to be the most vulnerable state on earth,
with a depth of crisis that is, perhaps,
the international community’s longestrunning failure.
Kenya, with a score of 98.7, moved out
of the ignominious top 15 category of
FSI, showing that the country continues
Policy Journal - Issue No.2 Quarter 1 2012 | 27
Youth Unemployment, State Failure and
Policy Implications For Kenya Vision 2030
to recover from the bloody Post-Election
Violence (PEV) in December 2007 and
January 2008 following the disputed 2007
presidential elections, which resulted
in over 1,300 deaths, displacement of
over 600,000 people (NCIC, 2010) and
destruction of property worth billions
of Kenya Shillings. Kenya’s ‘improved’
ranking is, in large part, attributable to the
citizens’ ratification in August 2010, of
the Constitution of Kenya. It is remarkable
that Kenya’s score is the worst in East
Africa. Closest to Kenya is Burundi at
position 17 with a score of 98.6, Uganda
comes in at position 21 with a score of
96.3, Rwanda is at position 34 with an
overall score of 91.0 while Tanzania,
according to the ranking, is East Africa’s
least vulnerable state at position 65 with
a score of 81.3.
Kenya’s Ministry of Special Programmes.
However, the continued plight of the IDPs
who are yet to be resettled, more than
three full years after the PEV, continues to
be an embarrassment to the Government,
Kenyans of goodwill and other wellwishers. This has raised serious doubts,
locally and within the international
community, about the capacity or
commitment of the Government of Kenya
and its institutions to adequately deliver
on their express mandate of protecting
the lives and property of citizens.
Following the PEV, relative normalcy
returned to Kenya when on 28 February
2008, a national reconciliation accord
was reached and signed by the two
protagonists, Mwai Kibaki leader of the
Party of National Unity (PNU) and Raila
Odinga leader of the Orange Democratic
Movement (ODM). Following the accord,
a power-sharing agreement was arrived
at, with Kibaki as President and Odinga
as Prime Minister.
Agenda item 4 on addressing the long
term issues is, without doubt, the most
expansive of the four. It has also been
partially operationalized. For better
perspective on what the ‘long term’ issues
in Agenda Item 4 are, a summary of its
6 parts and a brief explanation on their
current state of implementation follows:
The accord, comprising four agenda
items, has informed a programme of wideranging reforms in Kenya’s governance
landscape. A brief paraphrase of the four
agenda items follows:
1) An immediate stop to the violence
2) Address the humanitarian crisis
3) Agree on a political settlement
4) Address long term issues
Apart from sporadic incidences of violence
erupting in different parts of the country
from time to time, Agenda Item 1 can
be said to have been achieved. Agenda
Item 2 has been partially achieved with
most of the Internally Displaced Persons
(IDPs) resettled – over 500,000 out of the
original estimated 600,000 – according to
28 | Policy Journal - Issue No.2 Quarter 1 2012
A political settlement, consistent with
Agenda Item 3, was agreed in 2008 and is
the basis upon which the creation of the
42-member Grand Coalition Government
(GCG) cabinet, vide the National Accord
and Reconciliation Act 2008, rests.
‘Part A’
Constitutional, Institutional and
Legal Reforms
Constitutional, Institutional and Legal
reforms highlighted include police,
parliamentary, judiciary, executive and
civil service reforms in order to affirm
the final goal of the National Dialogue
and Reconciliation which was to achieve
sustainable peace, stability and justice in
Kenya through the rule of law and respect
for human rights.
Status: The Constitution of Kenya 2010
(CK 2010) was ratified and promulgated
as the supreme law in August 2010.
Parliamentary
reforms
(including
televised sessions) are underway. CK 2010
establishes a National Police Service and
the National Police Service Bill has been
passed by parliament.
‘Part B’ Land Reforms
Having recognized that land-related
conflict has been a source of economic,
social, political and environmental
problems in Kenya, the government
commits to consult with Kenyans in
order to formulate and implement short,
medium and long term interventions with
regard to the same.
Status: CK 2010 establishes The National
Land Commission as a constitutional
office. The National Land Commission Bill
is under preparation with oversight from
the Commission on the Implementation
of the Constitution (CIC), and should be
completed within the next nine months,
according to the deadline set by CK
2010.
‘Part C’
Poverty, Inequity and Regional
Imbalances
Recognizing that poverty eradication and
equitable development are essential to
ensure sustainable peace in the country,
the coalition government undertakes
to ensure that poverty alleviation and
equitable development are top priorities
on its agenda and commits to identifying
short term, medium term and long
term strategies for intervention, via a
consultative process.
Status: CK 2010 establishes a devolved
system of governance which is expected
to take effect from the time of the next
general elections. A task force is currently
working on applicable policy and
legislation to govern the operationalization
of the devolved system of governance.
Youth Unemployment, State Failure and
Policy Implications For Kenya Vision 2030
‘Part D’
Unemployment, Particularly
Among the Youth
Unemployment in Kenya, particularly
among the youth, is considered serious
and must be addressed urgently. Also
acknowledged is the fact that lack of
effective opportunities that integrate the
majority of Kenya’s youth into mainstream
economic activities contributed to the
destructive role played by the youth
during the post election violence.
The
Government
commits
to
advocate for the development of a
comprehensive strategy on combating
youth unemployment and to explore all
possible avenues of creating a supportive
policy environment for the expansion of
opportunities for youth employment in
the formal and informal sectors.
Status: KV 2030 (GoK, 2007) as well as
YEMP (GoK, 2009) and MTP (GoK, 2008)
and the Sector Plan for Labour, Youth
and Human Resource Development
(SPLYHRD) 2008-2012 (GoK, 2008) are
in place. There is, however, a worrying
lack of synchronism between the stated
objectives of KV 2030 and the priority
interventions in the MTP, the SPLYHRD
that is one of the sector plans that
informs it and the YEMP, all of which
seem to propose that the youth be
engaged in employment initiatives that
involve menial unskilled labour such
as slashing grass, planting trees and
clearing of canals and trenches, without
a substantive mention of the envisaged
role of engaging or training the youth to
be part of key stakeholders in the delivery
of the flagship projects identified in KV
2030! This is the focus of this paper.
Indeed, the inaugural Annual National
Conference on the Implementation of the
Constitution, held in June 2011, passed a
resolution calling for a review of KV 2030
in order to align it with CK 2010 and, in
particular, with article 10 on national
values and principles of governance which
binds all state organs, state officers and
public officers, inter alia to demonstrate
fidelity to values including patriotism,
national unity, sharing and devolution of
power, the rule of law, participation of
the people, human dignity, equity, social
justice, inclusiveness, equality, human
rights, non-discrimination and protection
of the marginalized!
Other initiatives undertaken to alleviate
the challenge of youth unemployment
include
the
Youth
Employment
Development Fund (YEDF), the Kenya
Youth Empowerment Programme (KYEP)
and the Economic Stimulus Package
(ESP).
‘Part E’
Consolidation of National
Cohesion and Unity
It is recognized that consolidating
national cohesion and unity is a crosscutting task that will require the efforts
of all Parties, Ministries, civil society and
all Kenyans. Apart from proposing the
creation of a National Ethnic Relations
and Race Relations Commission and
the introduction of legislation to fight
discrimination
and
ensure
equal
opportunities for all, government agrees
that all relevant ministries should work
with the offices of the President, Prime
Minister and other relevant bodies to
oversee unity building efforts and help
coordinate joint peace and reconciliation
initiatives countrywide in liaison with
local peace building efforts.
Status: Reasonable ground has been
covered in this regard. A National
Cohesion and Integration Commission
(NCIC) was established in 2009. A
Cohesion Policy is currently under
development. A National Values Task
Force is operational and a National Civic
Education Strategy has been developed,
with significant input from Non State
Actors. Other ‘Agenda 4’ commissions
so far established include the interim
Independent
Electoral
Commission
(IIEC),
the
Interim
Independent
Boundaries Review Commission (IIBRC)
and the Truth, Justice and Reconciliation
Commission (TJRC). An Act of Parliament
to enable the combining of the IIEC and
IIBRC into and Independent Electoral
and Boundaries Commission (IEBC), has
recently been passed by Parliament.
Cont. on Pg.32
Policy Journal - Issue No.2 Quarter 1 2012 | 29
Continued from Pg.26
Kenyan Food Security Policy Lessons from China
largely a virgin area in Kenya. The public
sector, in particular, has not invested
significantly into this field.
China has some of the most efficient and
best managed commodity distribution
and marketing systems in the world
especially for fruits and vegetables. There
are over one thousand large wholesale
commodity markets throughout China.
Food is transported to those wholesale
markets across China in less than 48
hours-courtesy of the recently constructed
super highways across China. Those
markets trade between one to two million
kilogrammes of fresh vegetables daily.
All those wholesale markets have cold
rooms thus reducing post-harvest losses
significantly.
Food manufacturing by large firms in
Kenya (usually multi-nationals) is well
established and efficient. Value addition
of agricultural commodities at small
towns and farms is, however, minimal or
non-existent. This has resulted into high
post-harvest losses especially for fruits
and vegetables which can be as high as
40 per cent.
Food Commodity Monitoring
and Reporting
How effective are the current
systems?
A comprehensive programme of data
collection, analysis and dissemination of
agricultural and food security information
does not exist. Information collected by
the Kenya National Bureau of Statistics
is focused for planning purposes at the
national level. Information on commodity
prices collected daily by the Ministry of
Agriculture and disseminated through
electronic and print media is inadequate.
30 | Policy Journal - Issue No.2 Quarter 1 2012
Early warning systems to monitor famine,
food production, droughts, floods and
other disasters to mitigate against food
insecurity does not exist in Kenya. The
meteorological department basically
monitors weather situations for a short
span of about 3-4 months. The department
lacks the personnel and equipment to
comprehensively monitor the issues
mentioned above. The Government of
Kenya will have to invest resources in
this area.
Policy Recommendations
Food and Entitlements
Famine reflects widespread failure of
entitlements on the part of substantial
sections of the population. A person
has to starve if this entitlement does
not include a bundle of enough food. A
person is reduced to starvation if some
change, in his endowment – land, health,
wage earnings are negatively affected
to the point of not being able to acquire
enough food.
Food output and availability is a defective
basis on which to predict famine.
Employment, wages and prices all have
direct bearing on food entitlement for
various social economic groups. Even
when famine is directly related to crop
failure due to drought, there may be a
modest rise in food prices, if the supply
failure is matched by a corresponding
decline in the purchasing power of
affected population due to the same
drought. Neither food output nor prices
can give clues to famine anticipation-there
is no substitute to economic analysis of
the food entitlement of all the vulnerable
groups. Prevention of famine depends
on the speed with which early hunger
is reported and taken up in political
debates. Media is very instrumental in
such early warning.
Food and Cash Relief
The traditional form of relief has been that
of providing free food in relief camps and
distribution centres. There is no doubt
relief of this form has saved lives around
the world. One of the forms of relief
is to give the affected person ability to
command food (cash relief) and the other
is to give this ability in form of food itself.
Cash relief may not be quick enough
to get food to the starving in a situation
of severe famine. It is also prone to
corruption. However, it has merits:
• Government’s
inefficiency
in
transporting food to the affected
people especially those in remote
locations could be a considerable
barrier to famine relief.
• Food often moves out of the faminestricken areas due to the low purchasing
power of the famine-stricken people
as a result of low effective demand.
• By providing demand for trade and
transport, cash relief may help to
re-generate the infrastructure in the
famine-stricken economy.
• Providing cash relief where the people
involved normally reside and work
without having to move them to relief
camps may have very considerable
economic and social advantages.
Giving the famine victims more
purchasing power would add to the total
demand for food. Food production in
most parts of rural Kenya is not merely
a source of food supply, but also a main
source of means of livelihood. It is for this
reason that food output decline during
droughts tends to go hand-in-hand with
collapse of food entitlement.
Kenyan Food Security Policy
Lessons from China
Food Security Strategy
A national food security strategy must
satisfy four basic objectives:
• Efficient growth in the food and
agricultural sectors.
• Improved
income
distribution,
primarily through efficient employment
creation.
• Satisfactory nutritional status for the
entire population through provision of
a minimum subsistence floor for basic
needs.
• Insurance against bad harvests, natural
disasters or uncertain world food
supplies.
It is necessary to understand the major
market demand parameters for basic food
stuffs. For instance, when the average per
capita Gross National Product rises, how
much of maize, beans, rice, wheat and
meats are demanded?
The next step is to disaggregate
consumption in order to trace the effects
of various price and income policies on
the food intake of the poor and vulnerable
groups. Similar analysis can be done for
the middle and upper income groups.
Separate food balance sheets for three or
four income classes can be prepared and
compared with national aggregate food
balance sheet. Household Expenditure
Surveys done by the Kenya National
Bureau of Statistics can provide the
information needed.
Food production policy has three major
roles:
• Ensuring the availability of efficient
agricultural technology for various
agro-ecological zones of the country.
• Providing a set of macro-price policiesprice for capital, labour, foreign
exchange and food.
• Developing a rural marketing system
for inputs and outputs with equal
access for all classes of farmers.
Each of these public policy roles with
respect to efficient food production has
an implicit or explicit income distribution
consequence and hence food security.
The need for responsiveness and flexibility
in food production is transmitted from
food consumers via the marketing
system. If the signals do not get through
efficiently, both sides of the food system
are frustrated.
High marketing margins do not
necessarily denote inefficient markets
if costs are commensurately high.
High costs typically reflect inadequate
physical and institutional infrastructure
in the marketing system-poor roads, lack
of central market places, shortage of farm
inputs, go-downs and inadequate milling
facilities.
Summary and Conclusion
Although food security policy exists in
Kenya the implementation of that policy
has been lacking, or inadequate. Funding
of food security activities has also been
far below the requirements.
The food security programmes have
failed to save Kenyans from frequent
famine. The planning, implementation
and management of food security
programmes will have to be reviewed
and seriousness attached to them.
Financing and management of strategic
food reserves will have to be re-looked.
Food security is, indeed, a national
security issue for Kenya. Corruption and
mismanagement of food reserves and
relief food should be severely punished
and proper accountability systems put in
place.
Irrigation development in this country
should be given priority in infrastructural
development considering that 75 per cent
of Kenya is arid and semi-arid. Kenya
should target irrigating 30-40 per cent of
arable land in the next 15-20 years.
The Kenya government and the private
sector will have to invest heavily in market
and storage infrastructural development
as a matter of priority.
No country can develop fast by ignoring
the agricultural sector. This country should
move quickly to gradually raise financing
to the agricultural sector from the current
3.5 to 10 per cent of the national budget
in the next 3-5 years.
Sino-Kenya relations have been growing
in the recent past. The focus of those
relations has been on trade, infrastructural
development and exploitation of natural
resources. Kenya can learn a lot from
China which has a long experience of
implementing one of the most successful
agricultural and food security policies in
the World and feeding 20 per cent of the
World population.
References
Diankui Chen and Mingchi (2002), An Overview of Vegetable Production, Distribution and Consumption In China, Beijing, China.
Feng Haifa (2002); Agricultural Development and Policy in China, Beijing, China.
Peoples Republic of China (1996); Agricultural Policy and Food Security in China, Beijing China.
Republic of Kenya (1994); Sessional Paper No.2 on National Food Policy, Government Printer, Nairobi, Kenya.
Republic of Kenya (2004); Strategy for Revitalizing Agriculture 2004-2014, Nairobi Kenya.
Republic of Kenya (2007), A Globally Competitive and Prosperous Kenya, Kenya Vision 2030; Government Printer, Nairobi, Kenya.
Sen Amartya, 1990, Food Economic and Entitlement, John Hopkins University Press, Baltimore, USA.
Timmer C. P., 1990, Developing a Food Strategy, The John Hopkins University Press, London.
Policy Journal - Issue No.2 Quarter 1 2012 | 31
Continued from Pg.29
Youth Unemployment, State Failure and Policy Implications For Kenya Vision 2030
‘Part F’ Transparency, Accountability
and Impunity
This is the final part of Agenda Item
4. It states boldly that transparency,
accountability and the fight against
impunity must underpin the entire
national reform agenda. It concludes
by laying emphasis on the importance
of implementing the recommendations
of the Truth, Justice and Reconciliation
Commission
and
proposing
an
implementation
roadmap
towards
addressing the foregoing issues, which
were considered the underlying causes of
the post-election national crisis.
Status: The TJRC, after a false start, is now
operational. The Kenya Anti Corruption
Commission (KACC now EACC) has
a new leadership which has brought
renewed vigour to the fight against
corruption. Vetting mechanisms such as
the Judicial Service Commission (JSC)
have been established, ushering in a new
era of transparency and accountability
in the recruitment of judicial officers. A
new Chief Justice (CJ), Deputy CJ and
Director of Public Prosecutions (DPP)
have recently assumed office after
vetting by the JSC and the Public Service
Commission, in addition to receiving
Parliamentary approval. The search for
a new Attorney General was concluded
applicants who applied to be considered
for appointment to the position of judges
are currently being interviewed by the
JSC. Expansion of judges now going on.
2011, undertook a study, to establish
the prevailing employment realities
experienced by youth in Nairobi’s
Westlands Constituency and what policy
implications these may portend for the
attainment of KV 2030.
Our discourse focuses on ‘Part D’
of Agenda Item 4 – Unemployment,
Particularly Among the Youth – and
the policy implications, thereof, in the
context of Kenya’s blueprint for national
development, KV 2030, whose goal is to
transform Kenya into a middle income
economy with a high quality of life by
the year 2030.
KNBS estimates the overall, youth
unemployment in Kenya, at 67% of the
eligible population. My study reviewed
the effect that the Youth Enterprise
Development Fund (YEDF), launched
in 2007, has had on youth employment
creation, to date. A total of K. Shs. 2.9
billion has so far been disbursed through
YEDF to several youth groups and
individuals. At the time of the study, an
audit of the total number of jobs created
was underway at YEDF. Concurrently,
a National Manpower Survey (NMS)
was underway, with the Ministry of
Labour and the Ministry of National
Planning, Development and Vision 2030
(MOPND&V2030) having commissioned
the Kenya National Bureau of Statistics
(KNBS) to establish the current status of
training and skills held by Kenyans.
According to the Kenya National Bureau
of Statistics (KNBS, 2009), a run-away
youth population, estimated at 75% of
Kenya’s 38.6 million strong population,
a situation that suggests the phenomenon
of a youth bulge, is the largest and
perhaps most inadequately addressed
challenge to the attainment of Kenya’s
national agenda – KV 2030 - today. Yet a
large youthful population can turn out to
be a great opportunity- a so-called youth
dividend - or a great danger, depending
on the choices Kenya makes (Njonjo,
2010).
Intrigued by the above KNBS research,
this author, during the period April-June
On the negative side, the study (Magana,
2011) established that there appeared to
be no clear linkages between key policy
interventions for youth employment
such as the Youth Employment Marshall
Plan (YEMP), launched by the Ministry
of Youth Affairs and Sports (MOYAS) in
2009 and the KV 2030 target of 500,000
jobs per year, a figure that is carried over
from the employment target articulated in
Kenya’s Economic Recovery Strategy for
Wealth and Employment Creation 20032007(ERSWEC), the strategic national
economic development policy and
strategy which preceded KV 2030 .
Specifically, the YEMP does not have
any plans that are geared toward
ensuring that the youth are deliberately
and substantively included in the
implementation of the flagship projects
identified in KV 2030. The same is true
32 | Policy Journal - Issue No.2 Quarter 1 2012
Youth Unemployment, State Failure and
Policy Implications For Kenya Vision 2030
of the Sector Plan for Labour, Youth
Employment and Human Resource
Development 2008-2012 (SPLYEHRD),
which informs the Medium Term Plan
(2008-2012) of Kenya Vision 2030.
This is of grave concern, given that
the YEMP and SPLYEHRD are a direct
response to operationalize Agenda Item 4
Part D which acknowledges that ‘the fact
that lack of effective opportunities that
integrate the majority of Kenya’s youth
into mainstream economic activities
contributed to the destructive role played
by the youth during the post election
violence.’
The overarching recommendation of
the study is that Government should,
as a matter of urgency, put in place all
necessary mechanisms to enable a
comprehensive review of KV 2030 to
ensure that it aligns to the Constitution
of Kenya 2010 (CK 2010) in its entirety
and, in particular, with strict adherence
to the national values and principles of
governance articulated in Article 10.
A summary of the key findings of the
study follows:
1. More awareness is needed on KV
2030. This is more so given the recent
promulgation of the CK 2010, which
may necessitate a review of KV 2030
to align with CK 2010 with youth
employment and empowerment as its
core.
2. GoK strategies and plans reviewed
during the course of this study (e.g.
YEMP, SPLYHRD and MTP) do not
demonstrate alignment with KV 2030.
A glaring oversight is the absence of
clarity on the role the youth will play
to help deliver KV2030’s flagship
projects. Projects designed with the
youth appear to be low skill, labour
intensive undertakings that do not
meet the ILO’s threshold for decent
work. This also applies to the YEMP
developed by MOYAS.
3. The youth lack training and skills
yet this is a key pre-consideration by
YEDF and other funding mechanisms
when considering who should qualify
for an advance.
4. There is need to create greater
awareness among the youth on funds
available for youth empowerment
and employment. It is also necessary
to consolidate them under one
youth friendly policy and regulatory
framework.
5. A one-stop online Information portal
on youth employment opportunities
and how to access funds under a
consolidated framework (funds are
currently scattered under CDF, WEF,
YEDF etc.) may help youth make better
decisions with regard to engagement
in national affairs and sustainable self
empowerment.
6. The funds allocated for youth
empowerment were considered low
by policy implementers, beneficiaries
and researchers. A rational review of
amounts the funds disburse, ought to
be undertaken.
7. The monitoring of the impact of
YEDF in Westlands Constituency
remains inconclusive, as it is tracked
manually, so it is not yet possible to
give an authoritative assessment of the
same. At the time of the study, YEDF
had commissioned a national review
of YEDF impact. YEDF would do
well to implement an integrated ICT
system to track fund disbursement,
to enable its effective administration
and impact assessment.
Recommendations
On the basis of the foregoing findings, the
following are the recommended courses
of action for GoK and youth stakeholders
to consider:
1. A National Civic Education and
Engagement Policy and Regulatory
framework should be put in place
to inform and empower citizens of
Kenya, and particularly the youth,
on their rights and responsibilities as
citizens as articulated in the Bill of
Rights in CK 2010 and international
treaties to which Kenya has acceded
such as the African Youth Charter
(AYC). This will enable them to
appreciate and play their roles and
responsibilities towards actualizing
the ‘New Kenya’ envisaged in KV
2030, which will need to be aligned
with CK 2010.
2. GoK should urgently appoint
an inclusive, professional and
knowledgeable
multi-stakeholder
team to review KV 2030, to align with
CK 2010 in order to urgently address
Kenya’s youth employment challenge
through plans that are designed to
maximize youth participation in the
economic mainstream, with specific
regard to KV 2030 flagship projects,
in the spirit of the AYC.
3. GoK to facilitate, via a stakeholder
driven process, the development
of a National Employment and
Human
Capital
Development
Policy (NEHCDP) and Regulatory
Framework, which is informed by a
National Manpower Survey (NMS)
aligned to KV 2030 and global
best practice such as ILO’s Decent
Work Framework (DWF). It is of
grave concern that the employment
strategies in the MOYAS’ 2009 Youth
Employment Marshall Plan (YEMP)
and various MTP (2008-2012) sector
plans are not aligned to KV 2030
and do not make any provision
for the youth to play a key role in
the implementation of the flagship
projects identified in KV 2030. It is,
also necessary to review the YEMP
within the context of the (NEHCDP);
4. Development of a coherent and
coordinated policy and regulatory
framework for Resource Mobilization
Policy Journal - Issue No.2 Quarter 1 2012 | 33
Youth Unemployment, State Failure and
Policy Implications For Kenya Vision 2030
and consolidation of all funds targeting
youth employment and empowerment
with clear accountability mechanisms.
It is of concern that resources intended
for youth empowerment are scattered
across several ministries, with some
components in funds devolved
to Kenya’s constituencies such as
the CDF managed by members of
parliament, while others such as the
Economic Stimulus Package (ESP) are
managed by the Office of the Prime
Minister (OPM) and the YEDF is itself
now established as a parastatal under
MOYAS.
Conclusion
So what is the link between youth
unemployment, state failure and Kenya
Vision 2030?
A 2009 study by Population Action
International (PAI) identified 27 youth
bulge countries that ran the risk of state
failure. Of these, 13 were in the Middle
East while 14 were in North and SubSaharan Africa. In January 2011, the
tragic suicide of Mohamed Bouaziz, a
young Tunisian sparked riots and civil
disobedience in Tunis that led to the
collapse of the Tunisian government
of President Zine Abidine Ben-Ali. The
following month, youth in neighbouring
Egypt picked the cue and used similar
street protests to send the 31 year old
government of Egyptian President Hosni
Mubarak ‘The Tunisian Way’. Mubarak is
currently undergoing trial in Egypt.
At the time of writing, Syria, Lebanon,
Saudi Arabia and Lybia – all identified
by the PAI study as youth bulge countries
– were grappling with possibility of civil
strife with unemployment and governance
reforms high on the agenda!
Kenya has what it takes to achieve
prosperity,
middle
income
status
and respectability among the global
community of nations, as envisaged by
KV 2030!
This, however, depends on our making the
right choices such as reviewing KV 2030
in alignment with CK 2010 and making
youth employment the core component
of KV 2030. Other choices open to us are
to maintain the status quo.
So will we choose to reap the youth
dividend or continue courting state
failure?
REFERENCES
Fund for Peace & Foreign Policy Magazine, (2010), Failed States Index 2010. Washington D.C:
Foreign Policy Magazine
Goldstone J. A. et al. (2000). State Failure Task Force Report: Phase III Findings. McLean, Va: Science
Applications International Corporation.
Government of Kenya. (2006). National Youth Policy. Nairobi: Government Printer.
Government of Kenya. (2007). Kenya Vision 2030. Nairobi: Government Printer.
Government of Kenya. (2010). Constitution of Kenya, 2010. Nairobi: Government Printer.
Government of Kenya. (2010). National Youth Council Act, 2010. Nairobi: Government Printer.
International Labour Organization. (2009). Global Employment Trends. Geneva: International
Labour Office.
Kantai, W. (2007). A Critique of Vision 2030! Nairobi: Institute of Economic Affairs.
Kenya Institute of Public Policy, Research and Analysis. (2009). State of Youth Employment.
Nairobi: Government Printer.
Kenya National Bureau of Statistics. (2009). Kenya Facts and Figures 2009. Nairobi: Government
Printer.
Kenya National Bureau of Statistics. (2010). Kenya National Census 2009. Nairobi: Government
Printer
Magana, O. (2011). Youth Employment Realities in Nairobi’s Westlands Constituency and Policy
Implications for Kenya Vision 2030. Nairobi. Magana, O.
Maslow, A. H. (1954). Motivation and Psychology. New York: Harper and Row
Ministry of State for Planning, National Development and Vision 2030. (2009). First Medium Term
Plan (2008 – 2012) of Kenya Vision 2030. Nairobi: Government Printer.
Ministry of Youth Affairs and Sports. (2009). Youth Employment Marshall Plan. Nairobi: Ministry of
Youth Affairs and Sports.
Njonjo, K.S. (2010). Youth Fact Book: Infinite Possibility or Definite Disaster? Nairobi; Institute of
Economic Affairs.
Omolo, J. (2009). The Dynamics and Trends of Employment in Kenya. Nairobi: www.iea-kenya.
or.ke
Youth Agenda. (2009). Kenya Vision 2030: A Critical Review by Kenya’s Youth. Nairobi: Youth
Agenda
Youth Enterprise Development Fund Board. (2010). 3 Years of the Youth Fund. Nairobi: Youth
Enterprise Development Fund.
34 | Policy Journal - Issue No.2 Quarter 1 2012
From the IEA
Health Sector Spending in Kenya: Who Gains?
Background
The Government of Kenya (GoK), in its economic blueprint, Kenya
Vision 2030, envisions the transformation of Kenya into a globally competitive and prosperous middle-income country with a high quality of life by the year
2030. The vision is based on three pillars: the economic, social and political. The
economic pillar aims to improve the prosperity of Kenyans through an economic development programme. The social pillar seeks to build a just and
cohesive society with social equity in a clean and secure environment. The
political pillar aims to realize a democratic political system that respects
the rule of law and protects the rights and freedoms of Kenyans.
The main focus of this analysis is on the
social pillar, which primarily focuses
on investing in people. Key areas in
the social pillar are the education and
health sectors. In the health sector, the
government seeks to provide equitable
and affordable health care services at the
highest possible standards for her citizens
and at the same time ensure that water and
improved sanitation – key provisions that
directly affect health care – are available
to all Kenyans by the year 2030.
The annual budget allocated to the health
sector by the Ministry of Finance has been
on the rise every year and was estimated
to have been 45.1 billion in the financial
year 2009/2010, representing 6.5 percent
of the total Government budget. This has
gone a long way in developing the health
sector in terms of building infrastructure
(such as putting up new hospitals and
the importation and maintenance of
critical medical equipment) and training
of staff (existing and new doctors, nurses,
midwives and pharmacists, among other
medical practitioners).
The GoK aims to
increase
accessibility
to quality medical care
to all its citizens, and to this
end, has put in place programmes and
plans to achieve this goal. This objective
is in tandem with the Millennium
Development Goals (MDGs) and the
Abuja Declaration objective of raising
the health budgets of signatory countries
to at least 15 percent of the total annual
government budget.
Pro-poor spending is a common goal for
most national governments, development
agencies, and partners all over the world.
This goal is hinged on respective Bills
of Human Rights, where citizens have
a right to access quality basic human
needs, including access to health care.
Equitable public spending on health,
education, and water and sanitation are
essential for any government that wants to
effectively tackle and eradicate poverty.
Therefore, while pro-poor spending is
important because it increases labour
productivity, which in turn provides the
spur to economic growth, it also serves
as a mechanism through which broader
poverty reduction and wealth creation
goals can be achieved. Ultimately, the
basis of pro-poor spending on public
health depends on who gains from it – is
it the poor or the rich?
Kenya boasts of numerous health
facilities, ranging from national hospitals
(referral hospitals), provincial hospitals,
district hospitals, dispensaries and health
centres, as well as privately-owned
hospitals. The number of public health
care centres in Kenya is shown in Figure
1 below.
Policy Journal - Issue No.2 Quarter 1 2012 | 35
Health Sector Spending in Kenya
Who Gains?
Each health facility plays specific roles.
Dispensaries, which are part of the
primary health facilities, are the first
points of contact between government
and the public. Dispensaries provide
outpatient services for simple ailments
such as colds and flu, uncomplicated
malaria and other minor diseases. Those
who cannot be treated here, for different
reasons, are referred to health centres.
Health centres should serve a population
of approximately 80,000 people and have
facilities for outpatient consultations,
inpatient wards, and laboratories for
diagnostic tests. They also have theatres
for minor surgical procedures, maternity
wards and maternal and child health care
centres.
In cases where patients need further
medical care, clinical officers will refer
them to district hospitals. District hospitals
serve as the co-ordinating and referral
centres for smaller health facilities; they
have the resources to provide more
comprehensive medical and surgical
services. At the district hospital level,
there are sub-district hospitals that are
similar to health centres, but with surgery
units for performing caesarian births
and other simple surgical procedures.
Provincial hospitals are much larger
and provide specialized care, including
intensive care and life support services
and specialist consultations. Cases that
require further specialized attention are
referred to national hospitals.
Health Care Financing in Kenya
There are four traditional sources of health
care financing in Kenya: taxation, social
insurance, private insurance and direct
or out-of-pocket (household) payments.
Other sources include donor grants and
loans.
In 2007, the Ministry of Health (MoH)
provided a summary of the sources of
health financing in Kenya. According to
the summary, households remained the
main source of funds for health care,
accounting for 51 percent of the funds.
Government and parastatals account for
30 percent of the funds, donors account
for 16 percent while Non-Governmental
Organizations (NGOs) and private
companies contributed approximately 3
percent of health care finance.
Table 1 shows the MoH recurrent and
development expenditure trends for the
periods 2004/05 to 2009/10. It is clear
from the statistics that public spending
on health has continued to increase
in absolute terms from approximately
KShs.19,158.20 million in 2004/05 to
KShs.29,196.70 million in 2007/08, with
an estimated increase to KShs.47,011.30
in 2009/10. The MoH actual expenditure
of the total Government expenditure
increased from 5.04 percent in 2004/05
to 5.42 percent in 2006/07 with a slight
drop to 4.39 percent in 2007/08.
Although the entire health sector
allocation for this period averaged about
7 percent of the total budget, it is still
short of the recommended 15 percent
as outlined in the Abuja Declaration. It
Figure 1: Public Health Care Centres in Kenya
Referral
Hospitals
• 2 referral and 1 specialist hospital
Provincial Hospitals
• 8 provincial hospitals
District Hospitals
• 118 district Hospitals
Primary facilities (health centres and dispensaries)
Source: Nyanjom (2006)
36 | Policy Journal - Issue No.2 Quarter 1 2012
• 440 health centres
• 1,527 dispensaries
Health Sector Spending in Kenya
Who Gains?
Table 1: Recurrent and development spending by sector, Amount -Health (KShs. Millions)
Actual
Approved
Estimates
Items
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
MoH Total Expenditure
19,158.20
23,007.00
27,530.10
29,196.70
35,418.30
47,011.30
Recurrent
17,417.30
19,765.20
21,542.50
23,766.50
28,471.20
28,184.10
Wages
9,010.29
10,471.33
11,344.67
12,451.25
14,670.26
15,424.39
Non Wages
8,407.01
9,293.87
10,197.83
11,315.25
13,800.94
12,759.71
Development
1,740.90
3,241.80
5,987.60
5,430.20
6,947.10
18,827.20
Domestic
1,488.10
2,736.80
3,359.50
2,401.50
5,250.60
11,799.20
Donor
252.80
505.00
2,628.10
3,028.70
1,696.50
7,028.00
Total Expenditure
379,830.20
432,049.10
507,667.40
665,376.40
761,540.30
865,619.90
GDP at Market Price
1,345,026
1,519,079
1,724,197
1,962,879
2,241,393
Population (million)
34.20
35.10
36.10
37.20
38.30
GDP Deflator**
1.15
1.20
1.30
1.36
1.54
5.04
5.33
5.42
4.39
4.65
1.42
1.51
1.60
1.49
1.58
MoH Total Expenditure
560.18
655.47
762.61
784.86
924.76
Recurrent
509.28
563.11
596.75
638.88
743.37
Development
50.90
92.36
165.86
145.97
181.39
Recurrent
90.91
85.91
78.25
81.40
80.39
59.95
Development
9.09
14.09
21.75
18.60
19.61
40.05
Wages
51.73
52.98
52.66
52.39
51.53
54.73
Non Wages
48.27
47.02
47.34
47.61
48.47
45.27
MOH Total Expenditure
14.99
10.71
1.14
7.13
Recurrent
8.66
0.84
5.21
5.79
Development
78.30
70.89
-13.51
12.98
As a % of Total GoK expenditure outlay
MoH Total Expenditure
5.43
As a % of GDP
MoH Total Expenditure
Per Capita Expenditure
As a % of MoH Expenditure
As a % of MoH Recurrent Expenditure
Real Growth Rates (%)
Source: Republic of Kenya. Appropriation Accounts (various. Financial year 2005-2006)
is important to note that although the
actual MoH expenditure was increasing
nominally over the years, comparison
of actual versus budgeted figures can
yield misleading results because it has
always been a challenge for the MoH
to fully spend budgeted development
expenditure.
Who Gains from Health Care Financing? The Benefit Incidence
Analysis
The need to ensure access to quality
health care for citizens, regardless of their
social status, has led governments the
world over, including the GoK, to offer
subsidies in the health sector. The Benefit
Incidence Analysis (BIA) is a method
used to establish who actually gains from
public spending on basic services such as
education, health or any service provided
by the government. The BIA describes
the distribution of health sector subsidies
Policy Journal - Issue No.2 Quarter 1 2012 | 37
Health Sector Spending in Kenya
Who Gains?
among individuals by bringing together
public expenditure accounts and survey
data on the use of publicly subsidized
services. This analysis is then used to
assess whether health subsidies are
consistent with narrowing the absolute or
relative gap in living standards between
the rich and the poor.
However, limitations to this tool include
the lack of accurate data on government
expenditure on the public sector and the
difficulty in accurately defining the unit
cost of services.
The BIA, as used in determining benefits
of the health sector that accrue to
Kenyans, utilized the Kenya Integrated
Household Budget Survey (KIHBS) data
of 2005/06. Part of this data covered
referral hospitals, provincial and district
hospitals, dispensaries, and public health
care centres. The data also covered
a wide spectrum of socio-economic
indicators such as access to housing,
education and health facilities, level
of agricultural activities, enterprises,
incomes, expenditure and consumption,
household and community social
amenities.
A primary sampling unit of 1,343 clusters
was randomly selected and from this, 10
households were randomly selected. This
was used to derive the sampling weights,
which implies that the KIHBS data has
information on over 60,000 individuals
and as such, forms a good basis for
this analysis. The total expenditure on
the health sector was derived from the
appropriation accounts of ministries
concerned with health sector (Ministry
of Public Health and Ministry of Medical
Services) for the fiscal year 2005/2006;
data which informs this analysis. The
unit subsidy was arrived at by dividing
the number of beneficiaries of a service
by the total expenditure incurred to offer
that service.
38 | Policy Journal - Issue No.2 Quarter 1 2012
Results and Discussion
Types of Health Facility Visited
Population and Illness
In Kenya, approximately 27 percent of
the population report cases of illness,
as shown in Table 2. The response to
illness by the population was diverse and
dependent on the quintiles in which they
fall. However, the manner in which the
population reacts to illness varied through
the quintiles. For example, approximately
59 percent of the 26 percent of the
population in the poorest quintile that fell
ill consulted a health care provider. This
percentage seeking treatment increases
in the 2nd quintile (approximately 68
percent) while it is approximately 77
percent in the richest quintile.
It is clear that a majority of Kenyans seek
health care services in public health care
institutions, although the ratio of those
seeking such services varies with the type
of facility in place and the quintiles in
which an individual falls. Those in the
poorer quintiles prefer visiting primary
health facilities. On the other hand, as
evident from Table 3 below, majority
of the population in the 3rd, 4th and
5th quintiles opted for primary health
care facilities (dispensaries and health
centres). The type of health care facility
visited is also dependent upon the type
of illness that one is suffering from and
the availability of facilities as well as the
location of the facility.
Table 2: Illness and Response of Population by Quintile
Quintile
n=17,043
Population sick
(%)
Population
share seeking
health care (%)
Population
seeking public
health care (%)
Population
seeking private
health care (%)
1st quintile (poorest)
26.1
59.4
58.0
42.0
2nd quintile
25.4
68.2
56.6
43.4
3rd quintile
27.0
70.5
55.2
44.8
4th quintile
28.8
73.9
49.8
50.2
5th quintile (richest)
26.9
77.1
43.5
56.5
All
26.8
70.0
52.1
47.9
Source: Authors’ calculation from 2005/06 KIHBS dataset
Table 3: Health Care Facility Visited
Quintile n=6338
Population
seeking public
health care (%)
Of those seeking public health care
Referral hospital District /provin(%)
cial hospital (%)
Primary health
care (%)
1st quintile (poorest)
58.0
1.9
19.3
78.8
2nd quintile
56.6
2.5
24.6
72.9
3rd quintile
55.2
2.4
31.1
66.5
4th quintile
49.8
3.6
39.7
56.6
5th quintile (richest)
43.5
8.8
46.4
45.8
All
52.1
3.8
32.3
68.8
Source: Authors’ calculation from 2005/06 KIHBS dataset
Health Sector Spending in Kenya
Who Gains?
Spending Per Capita on Health
Care
Figure 2: Benefit Incidence Analysis
100.00
A closer examination of how much
individuals spend on public health care
per month showed that on average, the
poorest quintile spent a mean of KShs.
66.40 on health care, translating to 1.81
percent of their total mean monthly
expenditure. The richest quintile has
a mean monthly health expenditure of
KShs.786.60, representing approximately
4.73 percent of their mean monthly
expenditure. This is captured in Table 4
below.
80.00
60.00
40.00
20.00
0.00
0
Poorest quintile
Equality line
District/Provincial hospital
Public Facility
The Benefit Incidence for Public
Health Spending
Obtaining the unit subsidies require one
to determine the actual expenditures on
facilities. Due to aggregation limitations
in the appropriation accounts, the actual
expenditure on facilities was obtained
from the works of Demery and Gaddis
(2009).
2nd
4th
Richest quintile
Referral hospital
Primary health care
Incomes
Source: Authors’ calculation from 2005/06 KIHBS dataset
Table 5 below summarizes Government
unit health subsidies by type of facility
visited. It is evident that referral hospitals
received the highest proportion of
Government subsidies in Kenya, at 12.74
percent of the actual budget, compared
Table 4: Per Capita Spending on Health Care
Quintile
Population
seeking public
health care (%)
Mean individual spending
on health care
(monthly)
% Health
spending /
total spending
(monthly)
Mean monthly
expenditure
1st quintile (poorest)
58.0
66.40
1.81
6263.80
2nd quintile
56.6
127.20
2.04
11,623.50
3rd quintile
55.2
200.20
1.80
17,321.00
4th quintile
49.8
342.20
3.22
27,534.55
5th quintile (richest)
43.5
786.60
4.73
57,924.50
Source: Authors’ calculation from 2005/06 KIHBS dataset
Table 5: Government Subsidy and Type of Facility Visited
Quintile
2005/06 actual
budget (‘000)
Facility visit
from KIBHS
Subsidy /visit
Proportion
Referral hospital
3,862,888
2,317,510
1,666.80
12.74
Provincial/district
12,019,283
12,321,344
975.50
7.46
Primary health care
3,882,829
29,690,096
130.80
1.00
All facilities
19,765,000
44,328,950
Source: Authors’ calculation from 2005/06 KIHBS dataset
3rd
to primary health care facilities which
received a paltry 1 percent. This trend
could be attributed to the fact that referral
hospitals are much larger, have the highest
number of professional personnel, and
have more state-of-the-art equipment that
are expensive to purchase and require
more maintenance. However, primary
health facilities are more in number as
compared to the two referral hospitals in
the country.
By combining the unit subsidies for each
facility and the reported utilization of the
facilities from the KIHBS data, a Lorenztype curve which shows the level of
inequality in accessing health care in
different facilities was derived as shown
in Figure 2.
All the population quintiles should be
accessing health facilities on the equality
line if there is equality. A curve above this
line indicates that a certain population
cohort is accessing more and vice-versa
for a line below the equality line. The 1st
and 2nd population quintiles have less
access to referral hospitals and to district
and provincial hospitals as compared to
the 3rd and the 4th quintiles. Furthermore,
Policy Journal - Issue No.2 Quarter 1 2012 | 39
Health Sector Spending in Kenya
Who Gains?
while all cohorts of the population have
a relatively similar incidence of falling
ill, as shown in Table 2, the choice
of whether to go to a public or private
hospital also affects the utilization of
facilities by the different cohorts. From
Figure 2, it is clear that the spending on
primary health care facilities is pro-poor
while the other facilities – referral, district
and provincial health care centres – are
pro-rich. In general, the spending on
public health facilities as shown by the
line ‘public facility’ is not pro-poor.
Moving a step further, and mapping the
cumulative incomes by quintiles using the
‘income’ line, income still remains highly
unequal among the different quintiles, and
its distribution is worse than distribution
of public health spending associated with
facility utilization.
Conclusion
From the results, the following can be
noted:
1. The poor (approximately 22 percent)
do not use referral hospitals as much
as the rich (approximately 43 percent).
This can be attributed to the public
perception that referral hospitals,
particularly the Kenyatta National
Hospital in Nairobi, are not public
facilities since they charge a high cost
for treatment.
2. The poor rely more on primary health
care, i.e., the 1st and 2nd quintiles
utilize approximately 44 percent of
the primary health care subsidy.
3. All the five cohorts of the population
use provincial and district hospitals,
40 | Policy Journal - Issue No.2 Quarter 1 2012
and primary facilities, more than
referral hospitals.
4. In comparing the subsidies as a
proportion of income for the five
quintiles, it emerges that the poor
tend to gain more than the rich.
In conclusion, it can be noted that while
all population quintiles in this analysis
show similar rates of falling ill, there
are less people in the poor category
seeking health care as compared to the
rich. In addition, the poor do not use
referral hospitals much, as a majority
use primary health care facilities which
consist of public dispensaries and health
centres. Given that the subsidies per visit
in primary health care centres is much
lower than referral and provincial district
facilities, the poor benefit less than the
rich in public health spending by the
Government.
It is evident from this analysis that the
higher the income and expenditure
quintile, the greater the benefit incidence.
This therefore implies that public health
spending is not benefitting the poor,
and the Government should therefore
seek ways to reach the low income
earners in terms of giving them access
to basic quality health care as a basic
requirement.
Policy Recommendations
Devise Health Programmes that will give
all Citizens Equal Access to Basic Health
Care
One of the goals of a government’s
health care initiative is to address health
care disparities among the population
as regards unequal access to screening,
diagnosis and medical treatment,
resulting in poorer health care outcomes
in medically underprivileged populations.
The lack of health care access among
the population has been identified as
a major obstacle to addressing health
care inequalities in the population. It
is imperative for the GoK to initiate
awareness campaigns that will demystify
the notion that referral hospitals are
expensive, while setting up mobile clinics
to reach the rural poor.
Embark on Accurate Data Collection,
Analysis, and Dissemination
There is an overwhelming need for the
GoK to improve data collection, analysis
and dissemination activities as relates
to health indicators, health status and
general health of the populace. The
lack of data at the national level implies
that sometimes, the true picture on the
ground is not captured. Without specific
and accurate data, the affected may not
be included in health programmes and
services by the Government. Data forms
the basis for planning that drives almost
all government services and programmes.
Towards improving data collection and
analysis, the Kenya National Bureau
of Statistics (KNBS) should step in and
ensure accurate and all inclusive data is
collected for the intended purposes.
Institute of Economic Affairs - Programmes
Policy Areas
Call for Articles for The Third Issue of the
“Policy”
The Public Policy Journal of the Institute of Economic Affairs”
1. Regulation And Competition Policy Programme
The Regulation and Competition Policy Programme aims to facilitate the formulation and implementation
of appropriate economic regulations and competition policy in Kenya. The regulatory policy review has
concentrated on the laws and institutions that regulate certain economic sectors. In the initial design of the
programme it was intended that it would focus on the areas in which the connection between the law and
the economy would be most evident.
2. Budget Information Programme
The Budget Information Programme (BIP) promotes transparent and participatory engagement of key
institutions in public finance management with emphasis on execution and auditing.
The Programme has four components: parliamentary support, citizen/civil society support, gender
budgeting initiative and local authorities support. The Programme activities are geared towards enhancing
the capacity and effective management of key institutions in public management, both in the upstream (the
legislature and the executive) and in the downstream (the civil society and the public in general).
3. Trade Information Programme
The Programme aims to be an influential actor in Kenya’s trade negotiations, policy formulation, reforms
and impact assessment.
The Programme has three pillars: trade negotiations; trade, development and poverty reduction; and
advocacy and networking. The institute seeks to ensure that it does not merely react to trade issues as they
emerge but anticipated the future in informing trade policy.
4. Futures Programme
The programme seeks to facilitate increased utilization of future methodologies in development planning,
research, policy formulation and analysis. The programme has three components: scenarios thinking,
vision building and strategic building.
Under the scenarios component, the programme seeks to provide alternative pathways into the future that
explore interaction between social, political, technological, environmental and economic forces operating
within a given context. The visioning component seeks to give theoretical and practical perspectives on
importance of building a shared vision that can unify people and enhance development by embedding it
into a comprehensive planning process. The Programme has also facilitated the planning in a number of
constituencies. Strategic plans help a community take stock of where they are coming from and where they
are to determine strategic needs that can be carefully prioritised to enhance community development.
The Institute of Economic Affairs (IEA-Kenya), a public policy think-tank based in Kenya will soon be
publishing the third issue of the exciting and informative Public Policy Journal – “Policy” . The publication
is a journal through which IEA members and associates, Kenyan professionals, academia and researchers
can articulate their well-researched view points on diverse public policy issues.
The journal aims to provide an avenue for IEA members and associates, professionals, researchers and
general public to influence public policy through research, provide cutting edge information on public
policy and provide policy makers with useful information to guide policy reforms.
The articles submitted should aim at reporting on progress made in implementing specific policy
reforms or communicating research findings on a particular public policy issue in a reader-friendly
manner. Alternatively, articles could also provide a critique of the design or implementation of public
policy reforms and advocate for specific public policy changes, in all cases backing their arguments will
well researched facts where appropriate.
The IEA will put together a panel of editors to review submitted manuscripts in order to ensure accuracy
of information and eliminate errors. The editors will therefore reserve the right to change manuscripts
, in collaboration with the authors, to ensure that they are accurate and comply with international
standards.
Submissions
Writers are urged to observe the following requirements:
• Articles must be written in clear UK English.
• Articles submitted for publication in the journal must be original and must not have been published
or submitted for publication elsewhere.
• Articles must average between 1,500 and 2,000 words for short articles and between 4,000 and
6,000 words for long articles
• Contributors must submit an electronic file of the manuscript.
• Authors should provide an abstract of their article, not exceeding 300 words in length.
Please note that the deadline for submission is Monday, 2nd April 2012.
Please send your manuscripts to the editor on email address - [email protected].
For any clarifications, please send an email to the same address or
call Irene on +254-20-2721262 or +254-20-2717402.
Inside
Policy
Issue No.2 october 2011
Journal of the Institute of Economic Affairs
Youth Fact Book: Infinite Possibilities or Definite Disaster?
No doubt the Kenya youth present one of its key resources. They also represent the country’s potential for the future. This is
also one group that is often misunderstood and faces many challenges such as unemployment and other socio-economic
problems. The Youth Fact Book, published by the Institute of Economic Affairs, puts together different youth indicators for
the purpose of providing an overview on age, gender, regional and socio-economic status of youth. The book helps identify
trends which policy makers could use to develop evidence based policies and therefore meaningfully engage the youth.
The book is available on our website – www.ieakenya.or.ke under publications (Research)
Regional
Integration:
Can East Africa Show The Way?
Music the Language of
Integration
7
23
35
Kenya Food Security Policy:
Lessons From China
Health Sector Spending
in Kenya: Who Gains?