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"id": 804864,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/804864/?format=api",
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"type": "speech",
"speaker_name": "Mr. Henry Rotich",
"speaker_title": "The Cabinet Secretary for the National Treasury",
"speaker": {
"id": 13142,
"legal_name": "Henry Rotich",
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"content": "We recently completed our Third Medium-Term Plan (MTPIII), which will guide us in achieving sustainable development goals as well as our Vision 2030 development objectives. Achieving our development agenda will require robust implementation of the policies and programmes outlined under the Big Four Plan. We need to do this by seizing the investment opportunities presented by the improving global and domestic environment. Global growth is projected to improve to 3.9 per cent in 2018 and 2019, from 3.8 per cent in 2017. This growth momentum is supported by a rebound in investments, trade and industrial production coupled with strengthened business and consumer confidence. Hon. Speaker, equally, economic growth in sub-Saharan Africa, is recovering with growth projected at 3.4 per cent in 2018, up from 2.8 per cent in 2017. The improved global and regional economic outlook will benefit Kenya’s exports further strengthening our growth prospects and more specifically our manufacturing industry. As you will recall, Kenya recently ratified the African Continental Free Trade Area (AfCFTA). It is important that we take full advantage of this new trading frontier to further enhance Kenya’s trade prospects in the region. On the domestic front, we faced significant challenges last year, particularly the severe drought and the prolonged electioneering period. Despite these challenges, our economy remained resilient expanding by 4.9 per cent in 2017 supported by strong public investment and macroeconomic stability. As a result, we generated an additional 898,000 new jobs in 2017, up from 833,000 jobs in 2016. We project the economy to grow by, at least, 5.8 per cent this year supported by growing investor-confidence, improved agricultural activities bolstered by favourable weather, ongoing public investments and the improved demand for our exports due to improved global and regional growth. Over the medium-term, decisive implementation of the Big Four Plan should result in faster economic growth of at least 7 per cent per year, which in turn, should support job creation and reduce poverty among Kenyans. Despite the extremely difficult circumstances we faced as a country last year, we were able to preserve macroeconomic stability with inflation, interest rates and exchange rates remaining largely stable throughout 2017. This serves as a clear demonstration to domestic as well as foreign investors of our commitment to maintain macro-economic stability which is key in enhancing investor confidence. We intend to sustain this commitment in the years to come. We will continue to improve the environment for businesses to thrive, deal decisively with corruption and address the governance and performance challenges at our parastatals and State- linked companies, as well as improve efficiency in our financial sector. All these measures will boost investments and create the much-needed jobs. Under the Big Four Plan, we target to boost manufacturing activities, enhance food and nutrition security, achieve universal health coverage and support the construction of, at least, 500,000 affordable houses by 2022. On manufacturing, we plan to increase the contribution of the manufacturing sector to GDP to 15 per cent by 2022 by adding between US$ 2 to 3 billion to our GDP. It is expected that this will increase manufacturing sector jobs by more than 800,000. This will be achieved through establishing leather parks and textile industries in various parts of the country, reviving and transforming industries such as the blue economy and manufacturing of construction materials, and re-establishing the automobile industry, which will make new vehicles more affordable. We will target investors that are ready to invest in specific areas by providing tailor-made incentives, some of which are in the tax proposals that I will outline later in this Statement. Already, one investor is setting base in Eldoret benefiting from incentives offered under the The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}