Key Sectors of Economic Growth in Kenya Essay

sparingal experienceth is the increase in the center of the goods and serve produced by an parsimony everywhere time. It is conventionally measured as the percent rate of increase in sincere gross home(prenominal) product i.e. documentary GDP. In Kenya the linchpin main orbits to come upon frugal growth are agribusiness which is the mainstay economic growth vexrs, efficiency orbit, manufacturing and effort, service firmament which is mainly tourism, monetary services and banking and as well as the private empyrean. solely of these welkins are in line with the Kenya spate 2030, the economic pillar. The key fields are as discussed below1. AGRICULTURE Agriculture has been the key factor of economic growth of Kenyan economy. It continues to be the key factor that testament drive the economic growth of Kenya as it contributes to about 24% of Growth domestic help Product. And for this reason the political relation should increase calculateary allocation to the agricultural field up from the Kshs 53.5 gazillion allocated in National com put togethither 2012/201 so as to be in line with the Maputo Declaration which requires the budget allocation to agriculture to be atleast 10% of total Government budgets and The government should also subsidize the spring up inputs such as fertilizers for the farmers, this will maximize production. Livestock factory farm also has to be considered.If the government increases support to the agricultural field, such occurrences as diet deficits, seasonal inflation and unemployment would be curbed if not avoided. Agricultural sector which acknowledges Livestock sector and dairy farming The livestock sector provides employment opportunities while also increases income. Kenya exports from hides and skins for flog industry earned Kshs 4 billion. too reforms need to be made on the Kenya Meat Commission. Fisheries Kenya earns around Kshs 4 billion from this sector. The sector also employs about 6000 0 spate and also over half a million people depend on this sector for livelihood through avocation and fish processing so thee tote up of fish processing plants should be increased.2. tourism SECTOR The service sector of Kenya contributes 63% of Growth Domestic Product and its mainly tourism industry which is the uncouths principal source of unkn feature exchange thus the government. The tourism industry along with the government has to take go to address the security problem and to rear(a) negative publicity especially afterwards the post-Election Violence of 2007 following disputed general Elections. Such steps among others should include establishing a tourist police and launching selling campaigns in key tourist introduction marketplaces. Former minister of Tourism Najib Balala ran such campaigns in CNN.3. ENERGY SECTOR The capacity sector an important sector to drive the smooth growth of the economy accordingly there is need for the Government to put up measures t hat would help the sector to grow thereby, contributing to the growth of the economy as the sector is depended on by manufacturing and industrial sector and also the agricultural sector. at that endue exists limited cause generation and transmission capacity in the country. This is caused by omit of adequate investment in power systems and infrastructure culture.This combined with rapid economic growth, new customer connections and unreliable rain patterns have caused the current electricity shortage in Kenya. Though Kenya is not graphic resource endowed, the natural resources the country support boast of for energy generation are small hydro, geothermal, coal, biogas, tidal waves, solar, wind and deep the oil exploration in Turkana. The government ineluctably to invest heavily in the energy sector so that there is no over reliance on Hydro power. The government should implement a policy to attract private sector investments in the energy sector i.e. the Kenya Private a rea Power Generation Support Project. In doing so it will boost economic growth and in job creation.4. attention AND MANUFACTURING SECTOR Kenya boast of being the change country in East Africa, the manufacturing sector contributes to about 15% of Growth domestic Product, this percentage doesnt as the manufacturing sector is hampered by high energy costs, shortages of hydro telemetric power, unforesightful infrastructure and counterfeits products i.e. cheap imports. Industrial and manufacturing sector has become increasingly significant to Kenya economy due to increased urbanization. Most industrial plants are located in urbanise towns which has led to the reason Kenya has three cities i.e. Nairobi, Mombasa and Kisumu they include food-processing industries such as grain milling, beer production, and sugarcane crushing. These plants contribute significantly to national income as well as generate employment. in any case the oil refinery which processes imported crude crude into petroleum products, mainly for the domestic market. In addition, a substantial and expanding informal sector engages in small-scale manufacturing of household goods, motor-vehicle parts, and farm implements.5. FINANCIAL SECTOR AND BANKING Kenya is East and important Africas hub for financial services. Most of the banking asylum and other financial services firms are located in the urban centres as it is considered that urban people have high income which is not the case, thus innovation and go-ahead of banking sectors should be put in place in rural areas. Such innovations includes supple banking which where now rural populations have workaday access to financial services as most people now own officious handsets. MPESA is the widely used spry banking, it is estimated that MPESA has given access financial services to about 75% of the people. Government thus needs to encourage other mobile money transfers such as Tangaza, Yu cash, and Airtel money. In doing so it will create a competitive environment and thus umpteen people will get access to the financial services. The Nairobi Stock flip-flop (NSE) ranks fourth in Africa in equipment casualty of Market capitalization.Stock markets provide market liquidity that enables implementation of long stipulation projects with long term payoffs thereby promoting a countrys economic growth. Moreover, competent capital markets not only service of process resources to investors, they also facilitate inflow of unknown financial resources into the domestic economy. Government needs to institute reforms in the financial sector as capital market development is an important component of financial sector development and supplements the role of the banking system in economic development. Capital markets assists in value discovery, liquidity provision, reduction in proceedings costs, and risk transfer.