Policy changes boost growth (23/12/06)

 

Major policy changes have been initiated to revitalise the economic and social sectors.

 
 
Among them was more focus on arid and semi-arid areas which have been allocated Sh11billion for roads and other infrastructure. Another Sh1.6 has been used for water projects.

The other was the introduction of free primary education in 2003 as a result of which enrolment in schools rose to 7.9 million children from 5.9 million before 2003.


In the water sector, the Water Act 2002 paved the way for private firms to manage the resource through regional water services boards. Some 101 small irrigation schemes covering 10,000 hectares have been undertaken in the period under review. Civil service reforms saw 1,395 workers retired by July 2005 against a target of 3,000. Other reforms were wealth declaration and signing of performance contracts.

Since 2003, 169 enterprises have either been fully or partially privatised after the Privatisation Act was enacted in 2005.

Reforms in the health sector focused on preventive measures while the Ministry of Health budget increased from 7 per cent of GDP to 8.6 per cent in 2005/2006.

A decline in malaria and Aids cases was registered. No major malaria epidemic was experienced in the three years under review while the Aids prevalence rates reduced from 14 per cent to 6.7 per cent.

The co-operative sector witnessed the revival of the New Kenya Co-operative Creameries (KCC) and Kenya Farmers Association. Debts by the two, amounting to Sh842 million, were written-off by the Government.

Also 65 per cent of co-operatives held elections to inject better management during the period.

Source: The Nation

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