After multiple headwinds dampened growthin 2017, a nascent rebound in economic activity in Kenya isgaining momentum. Notwithstanding the projected rebound ineconomic activity risks are tilted to the downside. TheGovernment of Kenya has outlined four big priority areas forthe next five years. These are agricultural and foodsecurity, affordable housing, increased share ofmanufacturing, and universal health coverage. Support fromthe public and more importantly the private sector will berequired to achieve the big 4. Specific measures to createfiscal room to support the big 4 can include: enhancingdomestic revenue mobilization through the rationalization oftax exemptions; slowing the pace of expansion of recurrentspending; and improving the efficiency of spending. Boostingagricultural productivity and food security will requirere-allocating more resources to agriculture and improvingthe efficiency of current spending in the sector. Toeradicate poverty by 2030, Kenya will need a combination ofhigher growth, more inclusive growth, and growth that isincreasingly driven by the private sector and translatesinto more rapid poverty reduction.
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