Kibaki and economic plan that resuscitated Kenya’s economic might

President Mwai Kibaki’s 10-year reign that ended in 2013 has been lauded by many for its achievements which catapulted Kenya to the league of most respected economies in Africa after decades of stagnation.

Armed with First Class Honours Degree in Economics from Makerere University and a distinction in Bachelor of Science in Public Finance from London School of Business, President Kibaki is perhaps the man Kenya needed following the end of Kenya African National Union’s (KANU) 24-year rule in 2002.

Inheriting instruments of power and all its economic ills, the man from Gituyaini village in Nyeri County embarked on a long term mission that would transform the economy and lift millions out of poverty albeit a shoe-string budget following suspension of credit support from international lenders over KANU’s dalliance with corruption.

Two years before taking the instruments of power, the International Monetary Fund (IMF) had suspended any financial assistance to Kenya in 2000 over endemic corruption that had plagued President Daniel Moi’s regime.

“We have already started communication with those who have assisted Kenya in the past; I can assure you that the bulk of them (donors) that we have talked to have been very positive in their wish that our relationship be expanded and (in) their commitment to assist this nation, particularly as we shall fulfil our promise to fight corruption” said Kibaki, after announcing his new cabinet.

Before he took over power, Kenya’s economic potential it appeared, was frozen in time, visibly through bad state of infrastructure, negligible electricity access and a public finance in limbo.

In the quest to revive the economy, President Kibaki tapped David Mwiraria as finance minister in his 22-member cabinet.

A long term ally and former shadow minister, Mwiraria was to help patch degraded relationship with international lenders.

“Mwiraria’s new job is seen as key to Kenya’s hopes of restoring the confidence of the International Monetary Fund. The IMF suspended its support in late 2000, citing concerns about corruption. With this new appointment, analysts expect to see more foreign direct investment return to Kenya, which is currently in deep economic recession,” wrote Ofeibea Quist-Arcton, a British radio journalist in 2003.

At the start of his reign, Kenya’s Gross Domestic Product according to the World Bank figures was pegged at $13.2 billion and which rose to $56.4 billion in 2013 when he lef office.

During the 10-year reign, Kenya also realized the highest economic growth ever archived in recent times of 7% in 2007 from -1.6% in 2002.

The growth would however contract to 1.7% following the post-election violence witnessed at the start of his second term in 2008 which was also dragged by the global financial crisis.

Infrastructure

Infrastructure development is easily President Kibaki’s most notable achievement during his 10-year tenure.

From roads to rail and airports, his administration laid out a plan to revitalize the crumbling state of Kenya’s infrastructure amid revenue constraints.

This Super Highway which was completed at the tail-end of his tenure stands out among all the infrastructure developed during his term.

With financial assistance from the African Development Bank (AfDB), Nairobi’s capital was the construction site of Kenya’s first modern highway built at a cost of Kshs. 30 billion.

The 50km road was meant to decongest the city choking with heavy traffic and also serve as a major trade route connecting Kenya to Ethiopia as part of the Cape Town-Cairo pan-African highway.

The plan which continues to be implemented to this day also led to expansion of Mombasa Road, construction of the Southern Bypass, Eastern Bypass and the Western Bypass whose completion have been undertaken by the current President, Uhuru Kenyatta.

During his tenure, construction of the Isiolo-Moyale highway also begun and has been crucial in opening up Northern Kenya for trade, while Kisumu-Kakamega road has seen increase in trade activities in Western region.

Under President Kibaki, dilapidated rail infrastructure also got a facelift with the refurbishment of the meter gauge rail track and construction of new stations in Syokimau, Imara Daima and Makadara in Nairobi.

When it comes to airport, Kisumu Airport got upgraded to international standards at a cost of Kshs. 3 billion while Jomo Kenyatta International Airport also underwent upgrades making it a regional hub for passenger and freight.

In Mombasa, dredging of the sea commenced lading to construction of the Kshs. 30 billion second container terminal at the Port of Mombasa.

Electricity access

President Mwai Kibaki is also lauded for increasing electricity generation and access where generation rose to 1,534MW as a result of investment in geothermal power while access shot up to more than 2 million from half a million when he took over office according to data from Kenya National Bureau of Statistics.

The  launch of the Rural Electrification Programme that was aimed at connecting schools, government offices and business with electricity, also saw additional 309,207 customers connected to the grid.

Finance

The coming of new regime in 2002 also reignited Kenya’s financial system which had been subdued by restrictive policies.

The Kibaki administration brought back confidence in the sector as net foreign direct investment inflows which rose to highest level as a percentage of GDP to 3.1% in 2011 according to the World Bank.

The administration also embarked on retiring expensive debt which saw total public debt reduce to Kshs. 296.5 billion in 2002. By the end of his term in 2012, public debt stock had risen to Kshs. 1.5 trillion with domestic debt accounting for 50.6%.

Subsequently, local revenue collection increased from just over Kshs. 213 billion in 2002 to Kshs. 971 billion in 2013, as total budget crossed the Kshs. 1 trillion mark for the first time.

ICT

Enhanced liberalization of the Information, Communication and Technology sector under President Kibaki also led to massive adoption of mobile technology in the country leading to the introduction of mobile money service in 2007 by Safaricom.

Mobile subscriptions increased from just over 668,000 in 2002 to a massive 29.7 million. This is also attributed to a sharp rise in financial inclusion aided by mobile technology.

On Friday April 22, 2022, President Uhuru Kenyatta announced the death of Kenya’s third President, Emilio Mwai Kibaki, a leader widely credited for lifting the east African nation from economic abyss, to one of Africa’s greatest economies and a respected player on international matters.

He was 90 years old.