Launch remarks · 21 March 2024
I am delighted to preside over the launch of the Fourth Medium Term Plan (MTP IV), covering the period 2023-2027, which marks the final five-year plan of the Kenya Vision 2030, launched in 2008.
The Kenya Vision 2030 stands as our nation's ambitious longterm development blueprint, designed to elevate Kenya into a newly industrializing, middle-income country, ensuring a high quality of life for all citizens by the year 2030. This vision is grounded on economic, social, and political pillars, fortified by key enablers identified to propel us toward our collective aspirations.
Since its inception, significant progress has been achieved in realizing the goals set forth by the Kenya Vision 2030 through the implementation of preceding Medium-Term Plans (MTPs). Yet, our economy continues to grapple with fundamental challenges, including widening inequality, low productivity, and susceptibility to economic shocks. These challenges demand urgent and resolute interventions to regain lost ground and align ourselves with our aspirations.
This is why upon assuming office, our administration pledged to spearhead a radical economic turnaround, fostering inclusive growth and enhancing the livelihoods and welfare of all citizens, particularly those at the bottom of the economic pyramid. These commitments are intricately detailed within the Bottom-Up Economic Transformation Agenda.
Consequently, it became imperative to ensure that the MTP IV, together with the County Integrated Development Plans (CIDPs), are aligned with the Bottom Up Economic Transformation Agenda objectives and key priorities.
Therefore, the Fourth Medium Term Plan has translated the strategic objectives set out in our agenda into concrete programmes and projects to be implemented in the plan period. The BETA plan calls for investments in five core strategic pillars: Agriculture, health care, Housing and Settlement, Micro, Small and Medium Enterprises Economy and the Digital Superhighway and Creative Economy.
Without losing crucial time, the Government has moved to undertake a number of interventions in fulfilment of the commitments made to our citizens. These include: a. Strengthening the independence of the Judiciary and enhancing efficiency within the justice system, increased budgetary allocations to the Judiciary, and granting financial autonomy to the Inspector-General of Police. b. Reverting port operations for the Standard Gauge Railway from Nairobi Inland Container depot to Mombasa; c. Rolling out the Hustler Fund to provide access to affordable credit to individuals and MSME eliminating predatory lenders; d. Prioritizing the enhancement of the Women Enterprise Fund progressively from KSh4.5 billion to KSh13.5 billion in the next 3 years; e. Providing 5.5 million bags of fertiliser under the Subsidized Fertiliser Programme to improve agricultural yields at an affordable price of KSh2,500 a bag; f. Digitising over 15,000 Government services to enhance service delivery; g. Undertaking the construction of 103,000 affordable housing units countrywide; h. Formulation and implementation of a New Funding Model for tertiary education to address the needs of students, especially those from vulnerable backgrounds. The model has been used to provide financial support for first-year students joining tertiary institutions in 2023; i. Recruitment of 56,000 primary and secondary school teachers to improve the national teacher-pupil ratio and enhance education outcomes; j. Operationalisation of the National Open University at Konza Technopolis, which now has 1,000 students enrolled. k. Enactment of the Social Health Insurance Act (2023), which establishes the Primary Health Care Fund, Emergency and Chronic Illnesses Fund, and Social Health Insurance Fund to facilitate Universal Health Coverage, as well as the rollout of Primary Health Care Networks and deployment of 100,000 Community Health Promoters.
During the Fourth Medium Term Plan, the Government will boost production through a value chain approach targeting leather and leather products, textile and apparel, dairy, tea, rice, edible oils, blue economy, minerals, forestry, construction and building materials, among others.
Emphasis will be given to the promotion of agro-processing and the strengthening of extension services, provision of quality and affordable farm inputs, cooperative development and management, market access and logistics support, expansion of irrigation infrastructure, adoption of climate-smart agriculture, enhanced agricultural financing, and agricultural mechanization research and development.
To create employment, focus will be given to investment in Special Economic Zones and County Aggregation and Industrial Parks; diversification of export markets and market access of MSMEs goods and services. The Government will also establish Jumuiya cross-border markets and strengthen cooperation with our traditional and new trade partner countries.
We will scale up the Financial Inclusion Fund - the Hustler Fund - with a view to actualizing its commitment to increase access to affordable credit for those at the bottom of the pyramid. Additionally, we will undertake reforms to create a favourable tax regime, deepen capital markets, improve the lending and investment environment, and attract investors to the Nairobi International Financial Centre.
To increase efficiency and enhance mobility, the plan entails substantial investments in infrastructure development, particularly transport connectivity. This includes the construction of 6,000km of new roads, upgrading 101,755km of existing roads, and the construction of 277 footbridges.
Climate change continues to pose serious challenges to our socio-economic development, manifested through extreme climatic conditions and erratic weather patterns which disrupt production and livelihoods, and put lives at risk. The Fourth Medium-Term Plan prioritizes investments aimed at building resilience against these challenges, including the construction of water pans, small dams, and water harvesting structures in arid and semi-arid lands.
We have also launched a nationwide drive to grow 15 billion trees by 2032 through the Jaza Miti Campaign. This initiative will complement other ongoing efforts to protect the country’s water towers. In this plan, we will implement robust initiatives to promote sustainable waste management practices and enhance pollution control measures.
Sustainable climate action not only addresses challenges but also presents opportunities for transitioning to a green economy. We will leverage technological and scientific advances to stimulate economic transformation in a sustainable manner.
Other infrastructural projects to be implemented during the MTP IV period include the construction of one million affordable housing units, and the laying of 4,600km of high voltage transmission lines and 37 sub-stations to connect an additional 2.3 million Kenyans and 30,000 public institutions to the national grid. Additionally, an extra 100,000km of fibre-optic cable will be laid as part of the National Optic Fibre Backbone Infrastructure Programme.
Access to quality and affordable healthcare remains a key priority and the Government will therefore expand the Social Health Insurance Scheme focusing on the Afya Bora Mashinani model targeting 10.8 million households, digitising health services and improving health infrastructure. Over 20,000 health workers will be recruited to support the health commodities supply chain.
On human capital development, our commitment is to achieve the following critical targets: Recruit and train 116,000 teachers and automate the basic education system, expand Technical and Vocational Education and Training and scale up admissions to the National Open University, as well as Open Distance and elearning. In addition, the institutional framework for financing tertiary education has been adopted and will be strengthened.
Recognizing the critical role of science, technology and innovation in Kenya’s competitiveness, we undertake to mobilise funding for research and development and enhance budgetary allocations to the sector towards the attainment of 2% of GDP, in line with internationally accepted standards. The plan also includes building science and technology innovation parks and establishing a National Centre for Innovation, Technology Transfer and Commercialisation.
Kenya is a universally respected global sports powerhouse with the potential to dominate even more sporting and athletic disciplines. To support talent sports and the arts, the Government will continue to implement Talanta Hela - an initiative for monetising talents and Pesa Mfukoni. We will also expand sports and arts infrastructure and promote sports tourism by supporting international sporting events.
On the creative economy, we are marketing Kenya as a film destination by establishing an incentives framework for the production of films and commercials; supporting the production of local content; establishing a National Creative Economy Council; promoting artists’ rights and providing technical capacity for the growth of the creative industry.
With regard to affirmative action, the Government will re-model and digitise the Youth Enterprise Development Fund, Uwezo Fund, Women Enterprise Fund and the National Government Affirmative Action Fund, to enhance financing for enterprises owned and run by youth, women and persons with disabilities. The Government will also revamp the cash transfer programmes to cushion the vulnerable in society.
Recognizing the need to revitalize our tourism sector, the MTP IV prioritizes the promotion of Meetings, Incentives, Conferences, and Exhibitions (MICE), cultural festivals, food exhibitions, and the development and marketing of unique niche experiences. The Bomas of Kenya will be converted into a modern conference, hotel and exhibitions facility and the KICC will be re-engineered to achieve more than it is currently.
Harnessing the potential of the blue economy is critical for our transformative growth agenda. During the MTP IV period, we will focus on establishing requisite infrastructure, enhancing skills development, and ensuring maritime safety and security.
I hold the firm conviction that by upholding the rule of law and efficient justice systems, the Government will create a conducive environment for economic and social transformation. For this reason, we will enhance support for the justice, law, and order sector by recruiting additional police officers, prison officers, and National Government Administration Officers. Additionally, we will modernize the Kenya Coast Guard and improve the welfare of security personnel.
To diversify sources of financing, the Government will strengthen collaboration with the private sector and other non-state actors. We are committed to revitalizing the Public-Private Partnerships Framework to attract more investors and support the implementation of Government priorities in the MTP IV.
As we embark on the implementation of the Fourth Medium Term Plan, we recognize the challenges posed by a dynamic global environment including current and future geopolitical turbulence and regional conflicts with the potential to disrupt global supply chains and exert inflationary pressures. We have formulated appropriate measures to mitigate the effects of global pressures on our citizens.
The emergence of pandemics, as evidenced by the COVID-19 outbreak, underscores the need to strengthen our healthcare systems. Our strategies for primary healthcare will fortify Kenya's health system to effectively respond to any emergencies.
Kenya's development is intricately linked to the global economy, and we are therefore actively working to strengthen regional integration and international collaboration to facilitate the smooth movement of goods and services and deepen Kenya's foreign relations.
I take this opportunity to recognise the critical role of our development partners, the private sector and other non-state actors, and invite them to work with the Government in implementing the commitments we have made to our citizens towards achieving robust economic growth and inclusive development. The Fourth Medium Term Plan (MTP IV) 2023-2027 is now officially launched. Thank you God bless you God bless Kenya.