Key Sectors of Economic Growth in Kenya

Only available on StudyMode
  • Download(s) : 366
  • Published : June 12, 2013
Open Document
Text Preview
Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product i.e. real GDP. In Kenya the key main sectors to achieve economic growth are agriculture which is the mainstay economic growth drivers, energy sector, manufacturing and industry, service sector which is mainly tourism, financial services and banking and also the private sector. All of these sectors are in line with the Kenya Vision 2030, the economic pillar. The key sectors are as discussed below: 1. AGRICULTURE: Agriculture has been the key factor of economic growth of Kenyan economy. It continues to be the key factor that will drive the economic growth of Kenya as it contributes to about 24% of Growth Domestic Product. And for this reason the government should increase budgetary allocation to the agricultural sector up from the Kshs 53.5 billion allocated in National Budget 2012/201 so as to be in line with the Maputo Declaration which requires the budget allocation to agriculture to be atleast 10% of total Government budgets and The government should also subsidize the farm inputs such as fertilizers for the farmers, this will maximize production. Livestock farming also has to be considered. If the government increases funding to the agricultural sector, such occurrences as food shortages, seasonal inflation and unemployment would be curbed if not avoided. Agricultural sector which includes; •Livestock sector and dairy farming: The livestock sector provides employment opportunities while also increases income. Kenya exports from hides and skins for leather industry earned Kshs 4 billion. Also reforms need to be made on the Kenya Meat Commission. •Fisheries: Kenya earns around Kshs 4 billion from this sector. The sector also employs about 60000 people and also over half a million people depend on this sector for livelihood...
tracking img