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    "id": 117269,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/117269/?format=api",
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    "content": "Mr. Temporary Deputy Speaker, Sir, the Report reviews the recent performance of the economy under the glare of both domestic and international shocks. The Report finds that changes in food prices constitute a major proportion of the overall changes in the general price level. It, therefore, recommends increased productivity and food production in order to achieve price stability and overall micro-economic stability. According to the Report, Foreign Direct Investment (FDI) inflows to the country have remained low due to poor infrastructure, corruption, high cost of borrowing, crime and insecurity and low investor confidence. It recommends continued implementation of governance reforms and increased Government investment in infrastructure in order to attract foreign direct investments. Efforts to alleviate poverty and improve the wellbeing of Kenyans are laudable as the proportion of those living in absolute poverty declined from 56 percent in the year 2000 to 46 percent in the year 2006. However, the actual number of people living below the poverty line increased from 13.4 million in 1997 to 16.6 million in 2006. This underscores the need to double our efforts in combating poverty. Mr. Temporary Deputy Speaker, Sir, on population dynamics, the fertility rate is still high and the annual labour force growth is highest among the competitor countries. The main challenge is, therefore, on the need to expand job opportunities in order to curb increasing unemployment, underemployment and the problem of the working poor. It is also noted that Kenya’s dependence ratio is quite high at 84 percent. Mr. Temporary Deputy Speaker, Sir, in the education sector, Kenya has a low education index, meaning that a large proportion of the labour force has not attained basic education and technical skills. However, the report points out that the reforms in this sector are bearing fruits as there is an increased access to education, thanks to the free primary education and free tuition based secondary initiatives. In the Health Sector, the report recommends increased resource allocation to improve on per capita health expenditure which is still low compared to other countries. For example, Kenya spends about US$86 per person per year compared to Uganda which spends US$135 per person per year or South Africa that spends US$748 per person per year. This expenditure is lower than WHO’s recommended threshold. Mr. Temporary Deputy Speaker, Sir, agriculture is a key sector as it contributes about 24 percent of the Gross Domestic Product (GDP), and 19 percent of formal employment. This sector is crucial for food security. The report, therefore, calls for increased agricultural productivity, exploitation of irrigation, legal and institutional reforms including land tenure reforms. There has been a Government initiative towards this direction as well documented in the land policy that was passed here last week. Mr. Temporary Deputy Speaker, Sir, the manufacturing sector has not yet achieved its full potential in job creation and value addition. The sector’s contribution to the GDP has stagnated over the years at a continuous 10 percent and its performance has been lower than those of our neighbouring countries of Uganda and Tanzania. There is, therefore, need for more incentives to stimulate production of intermediate products, especially those with export potential."
}