Kenya Economic Stimulus Programme
Open-knowledge reference entry
The Economic Stimulus Programme (ESP) was a spending plan initiated by the Government of Kenya to boost economic growth and lead the Kenyan economy out of the 2007–2008 Kenyan crisis and the Great Recession. It was introduced in the 2009/2010 Budget Speech in parliament by Finance Minister Uhuru Kenyatta. Its aim was to jumpstart the Economy of Kenya towards long term growth and development, after the 2007–2008 Kenyan crisis and post-election violence that affected the Kenyan economy. Other economic problems included prolonged drought, a rally in oil prices and food prices, and the effects of the Great Recession. The stimulus was a response to the decline in the economic growth rate from 7.1% in 2007 to 1.7% in 2009.
The total budget allocated amounted to KSh.22 billion/= (260 million US$), with the money going towards the construction of schools, horticultural markets, jua kali sheds and public health centres in all the 210 constituencies.
Key Objectives
1. Boost the country's economic recovery;
2. Invest in long-term solutions to the challenges of food security
3. Expand economic opportunities in rural areas for employment creation;
4. Promote regional development for equity and social stability;
5. Improve infrastructure and the quality education and healthcare;
6. Invest in the conservation of the environment;
7. Expand the access to, and build the ICT capacity to expand economic opportunities and accelerate economic growth.
Intervention Measures
The choice of intervention measures of the ESP are framed within broader policy objectives, as stipulated in the Vision 2030, (the current national development blue-print. Agenda 4, and the Constitution of Kenya.
Activities covered under the ESP include:
Expansion of irrigation-based agriculture,
Construction of wholesale and fresh produce markets,
Construction and stocking of fishponds with fingerlings,
Provision of aquaculture advisory services,
Construction of ‘juakali’ sheds
Tree planting
Governance Structure of the Economic Stimulus Programme
The ESP is governed by the Ministry of Finance, with the Minister for Finance as the overall leader
Overall Leadership – Deputy Prime Minister & Minister for Finance
Technical Working Group – Chaired by the Permanent Secretary to the Treasury, composed of Senior Treasury Officials in the Ministry of Finance.
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