Growth will need hard work free of corruption

The latest projections give positive indicators about Kenya’s potential for economic growth this year.

All factors remaining constant, the economy is expected is to grow at 6.4 percent, a significant improvement over last year when the figures were below six percent.

For a good measure, the forecasts also show other East African countries are on a positive trajectory.

Kenya’s economy has stagnated in the past few years for various reasons, including political volatility especially in 2017 and last year, erratic weather conditions, corruption and restrictive legal regime.

However, the country has turned the corner somewhat.

This has largely been occasioned by changed political environment that has calmed down since last March when erstwhile political protagonists — President Uhuru Kenyatta and Opposition leader Raila Odinga — entered into a truce.

Politics determine the business environment. Political tension that sometimes degenerates into violence creates anxiety, pulls down investments and triggers capital flight.

We have gone through that cycle several times. That is why the ceasefire in the political front is welcome, it has allowed business to grow.

For Kenya, though, the rosy projections remain just that. Attaining the 6.4 percent growth cannot just happen. It requires serous work.

To date, the country faces two serious risks. The first is the building tension in the ruling party Jubilee.

Events of the past few months project a party on the cusp of disintegration as leaders pull in different directions.

Even if it does not explode, the division dissipates energies and draws away the government’s focus from programmes that should realise growth.

Second is corruption, which has eaten into the fabric of the nation and destroyed institutions that would otherwise spur growth.

It undermines business, promotes lawlessness, blunts the legal system as it undercuts judicial adjudication and arbitration processes.

Oftentimes, investors complain about prevalent corruption in trade registration and tendering, among others.

Major infrastructural projects have collapsed or done shoddily while those completed are realised at hugely inflated costs.

However, aggressive campaigns in recent months driven by the Director of Public Prosecutions and the Director of Criminal Investigations have given hope that something is being done to rein in the corrupt and recover stolen cash.

It is too early to celebrate, though, because few have been convicted, which puts the Judiciary on the spotlight over pending graft cases.

Given the economic indicators, Kenya has a chance to grow this year and realise its development goals.