Kenya Launches $20M UNCTAD Program for Economic Growth

: Kenya launches a $20M Holistic Productive Capacities Programme with UNCTAD to drive economic growth, boost diversification, industrialization, and private sector empowerment.

By Charles Wachira

Kenya held consultations with key development partners on October 3, 2024, to discuss the implementation of its ambitious Holistic Productive Capacities Development Programme (HPCDP), designed by the United Nations Conference on Trade and Development (UNCTAD). 

This initiative aims to reshape Kenya’s economic landscape and pave the way for long-term sustainable growth. 

Prime Cabinet Secretary Musalia Mudavadi, along with other senior government officials, led discussions with donors, UN representatives, the private sector, and key stakeholders.

 The dialogue opened a new chapter in Kenya’s drive toward economic transformation. 

“This programme is a turning point for Kenya’s future,” remarked Paul Akiwumi, UNCTAD’s Director for Africa, Least Developed Countries, and Special Programmes.

 “It’s about laying the groundwork for a stronger economy by empowering people, businesses, and institutions to innovate, compete, and thrive.”

 A New Economic Paradigm With Kenya’s past commodity-driven growth models proving insufficient to ensure inclusive and sustainable development, the HPCDP comes at a critical time.

 Despite achieving growth rates exceeding 5% over the 15 years leading up to the COVID-19 pandemic, the country continues to face challenges, with poverty and economic vulnerability still widespread. Kenya’s Vision 2030 hinges on bridging the country’s productive capacities gap.

 The consultations focused on how this programme will address core issues, such as underdeveloped industrialization and vulnerability to economic shocks, that have held back poverty reduction and job creation.

 The Holistic Productive Capacities Development Programme The HPCDP, a bold 10-year initiative set to launch in 2025, is designed to enhance economic diversification, industrialization, infrastructure, and private sector growth.

 The programme aims to transform Kenya from an economy reliant on low-productivity sectors to one driven by innovation and high-value industries.

 Five key pillars will drive the programme: 

Economic diversification and value addition Infrastructure development and environmental sustainability ICT for digital transformation Private sector growth and empowerment Skills development and policy coordination Securing Funding and Strategic Focus The consultations aimed to secure $20 million in funding over the next decade to support these transformative goals.

 Discussions centered on how Kenya can harness its strengths in agriculture, manufacturing, and technology while aligning with the African Continental Free Trade Area (AfCFTA) to enhance its global competitiveness.

 The Role of the Private Sector At the heart of the HPCDP is private sector empowerment. The programme focuses on supporting micro, small, and medium-sized enterprises (MSMEs), improving the business environment, and attracting both domestic and foreign investment.

 By leveraging Kenya’s rapid infrastructure developments in transport, logistics, and energy, the country aims to become a regional hub for manufacturing and value-added processing.

 A Collaborative Effort UNCTAD’s expertise in trade, investment, and technology for sustainable development will be central to the success of this initiative. A high-level steering committee and technical task force will oversee the programme’s implementation, ensuring seamless coordination and effective execution.

 Looking Forward The October 3, 2024, consultations mark a significant step forward in Kenya’s efforts to achieve its Vision 2030 goals and transform its economy into one that thrives on innovation and productivity. With robust international collaboration and a clear strategy, Kenya is positioning itself for a future of sustainable growth and prosperity. 

About UNCTAD: The United Nations Conference on Trade and Development (UNCTAD) is committed to promoting inclusive and sustainable development through trade and investment. With a broad membership, it empowers countries to use trade for economic growth and development.

Keywords:Kenya economic growth: Holistic Productive Capacities Programme: UNCTAD partnership Kenya: Industrialization and diversification: Private sector empowerment Kenya