Ruto kicks off four-year plan to boost country’s economy

The government yesterday launched an ambitious four-year strategy plan with a promise to create a favourable tax regime, improve the lending and investment environment and attract investors.

The Fourth Medium Term Plan (MTP IV) 2023-2027, launched by President William Ruto at State House, Nairobi yesterday promises to facilitate an economic turnaround in the country.

Ruto said the fourth medium term plan has translated the strategic objectives set out in the government’s agenda into concrete programmes and projects to be implemented within the plan period.

“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,” said the President.

He said the government will undertake reforms to deepen capital markets, improve the lending and investment environment, and attract investors to the Nairobi international financial centre.

During the Fourth Medium Term plan period, 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 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 mechanisation research and development,” said Ruto.

To create employment, he said 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 its traditional and new trade partner countries.

He also committed to scaling up financial inclusion fund - the Hustler Fund - with a view to actualising its commitment to increase access to affordable credit for those at the bottom of the pyramid.

To enhance mobility, the President said the plan entails substantial investments in infrastructure development, especially transport connectivity.

New roads

“This includes the construction of 6,000km of new roads, upgrading 101,755km of existing roads, and the construction of 277 footbridges,” he explained.

The Fourth Medium-Term Plan has also prioritised investments aimed at building resilience, including construction of water pans, small dams, and water harvesting structures in arid and semi-arid lands.

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.

Similarly, he said an extra 100,000km of fibre-optic cable will be laid as part of the National Optic Fibre Backbone Infrastructure Programme.

He affirmed that access to quality and affordable healthcare remains a key priority and the Government will thus 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,” said Ruto.
On human capital development, he said the Government’s commitment is to 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 e-learning.

Additionally, the institutional framework for financing tertiary education has been adopted and will be strengthened.

Critical role

Owing to the critical role of science, technology and innovation in Kenya’s competitiveness, the Government committed mobilise funding for research and development and enhance budgetary allocations to the sector towards the attainment of 2 per cent 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.

Ruto said Kenya is a universally respected global sports powerhouse with the potential to dominate even more sporting and athletic disciplines.