By Dr DANIEL GITI

The Cabinet Secretary for the National Treasury has rightfully acknowledged the shrinking of the traditional ways of budget financing and as such, the public sector alone cannot fund Kenya’s economic transformation. It is important to put things into perspective from a global to local point of view. 

The United Nations Sustainable Development Goals (UN SDGs) Report 2025, which provided the tenth annual stocktaking of global progress toward the 2030 Agenda for Sustainable Development delivered a stark assessment: the Sustainable Development Goals have improved millions of lives, but the current pace of change is insufficient to fully achieve all the goals by 2030. 

UN SDGs, adopted by the United Nations in 2015, is a set of universal agenda of 17 goals aims at ending poverty, reducing inequalities and promoting inclusive and environmentally sustainable growth by 2030. Achieving these goals requires massive investments, estimated in trillions of dollars annually, which many governments cannot mobilize on their own because of a myriad of issues and challenges, including financial crises, which have increased since the first recorded financial crisis in 33 BC in the Roman empire.

The Kenya Vision 2030, which was launched in June 2008, is the long-term development blueprint for the country, whose aim is to create “a globally competitive and prosperous country with a high quality of life by 2030”. It seeks to transform Kenya into “a newly-industrializing, upper middle-income country providing a high quality of life to all its citizens in a clean and secure environment".

Kenya Vision 2030 is implemented through 5 year successive Medium-Term Plans (MTPs) and since the introduction of Counties, the MTPs are also supported by the County Integrated Development Plans (CIDPs). MTP I 2008-2012, MTP II 2013-2017, which was supported by CIDP I; MTP III 2018-2022 and CIDP II; MTP IV 2023-2027 and the CIDP III, which is also linked to the BETA and last of the Vision MTPs before transition to next vision.

To finance the 17 UN SDGs, end extreme poverty, provide safe space for all to live, enough to eat and sense of security, the world needs to address financing gap of $ 4.3 trillion every year. This need is a drop compared to the global wealth estimated at $ 450 trillion. The Kenya Vision 2030 development blueprint requires KSh. 60 trillion or $ 470 trillion to be fully implemented of which MTP IV requires KSh. 15.3 trillion. 

A typical CIDP funding in a county would require 90 to 200 billion over five years in a county, which would translate to 5 to 8 trillion shillings in the whole country (47) counties in five years. Many counties cannot fund their CIDPs internally hence may require external and leveraging of Public Private Partnerships (PPPs) because they would face a 30 to 70 percent shortfalls in financing their CIDPs.

The design of the Kenya Vision 2030 is that 70% should be financed by the private parties and 30% by the GoK.  Financing the UN SDGs, the Kenya Vision 2030 and CIDPs aspirations is not a question of availability of capital but that of aligning these aspirations with countries/counties sustainable development targets and priorities.  

A 2022 report of the SDGs implementation showed that private players contributed less than 20% of the financing despite massive requirements from this sector, and the same is true for Kenya Vision 2030. The challenge for UN SDGs, Kenya Vision 2030 and CIDPs implementation is devising win-win paradigm shifts between public and private players and PPPs/partnerships/collaboration becomes the only viable option.

There is consensus that public and private entities are no longer competitors, but strategic partners in development. This is evidenced by their long tradition of collaboration in funding many ventures both locally and globally. The private sector success and growth depends on a stable and predictable business environment; access to finance; robust infrastructure; and a focus on innovation and competition. 

A thriving private sector is crucial for achieving the Kenya Vision 2030's objectives and fostering sustainable wealth creation because of six major reasons. First, the private sector is a major driver of the much desired and sought after economic growth, with a significant portion of Kenya's Gross Domestic Product (GDP) originating from private sector activities. This is the reason there is need for increased access to credit for private sector businesses which is necessary to fuel real GDP expansion by enabling them to innovate, expand, and compete effectively. Secondly, the private sector is a primary source of employment in Kenya, creating numerous job opportunities and contributing to the overall labor market.

Thirdly, the private sector's investments in various industries, from agriculture to manufacturing and finance, drive innovation and technological advancements, which in turn lead to increased productivity and economic growth. 

The private sector is key to the realization of the Kenya Vision 2030 development blueprint and the CIDPs, which is heavily reliant on the private sector's ability to generate wealth and create employment opportunities. Fourthly, a healthy private sector contributes significantly to the government's revenue collection through taxes and other economic activities at a time when government faces a limited and constrained tax expansion base and options. Fostering a supportive environment for private sector growth is crucial for increasing tax revenue and other growth aspects, including financing of projects as noted by the World Bank in 1993 in the “enabling markets to work” strategy that calls for greater divestiture of government from some projects. 

Fifth, private sector plays a vital role in developing local markets by investing in distribution networks, market research, and product adaptation and through understanding and catering to the needs of local consumers, they can create sustainable demand for goods and services, driving economic expansion. 

Sixth, the government and the private sector can collaborate on various projects, such as infrastructure development, to leverage the private sector's expertise and resources. Public-Private Partnerships (PPPs) can help address infrastructure challenges and promote economic growth. Kenya has a robust PPP framework, including the PPP Act, 2021 and the PPP Directorate based at the National Treasury hence the country should leverage on the concept to accelerate development. 

Dr Giti is an urban management, public - private partnerships (PPP) and environment specialist.

 @danielgiti 

By BECKY NANCY 

Second Year Media Student, Chuka University 

Kenyan media today unfortunately feels like a place where only grievances thrive, a place where national matters are always greased with complaints and money scandals no longer seem to shock Kenyans.

I should be careful with my words to avoid being oblivious of the grave matters being reported about politicians who are usually allergic of the “I” pronoun and seem to have an obsession with a French word called “We”.

Equally, I would like to avoid being ignorant and inadvertently pushing for an erasure of accountability, truth and transparency by sounding fatigued by the everyday scandals reported. Every day dailies or broadcasting channels report about a new scandal or one in the cooking, my blood boils, since I am conscious of the treachery happening in this country, yet I feel powerless, not seen and not heard. Everyone convinces me that change is going to come through a single ballot decision in 2027 and I find it dubiously ironic. If I look at our past this is a fantasy, anxiously hilarious since the pattern problematically repeats itself.

Prestigious promises are being aired by rival politicians, the old and the new complemented by scathing harsh accusations about who did and who did not do. To a keen observer this parasitic pattern is a constant in Kenyan politics, where politicians set exams, be their own chief examiners and comically award themselves 100% pass marks on who was the best at embezzling taxpayers’ money and delivering the bare minimum “allegedly”, but hopefully these old jokes this time will fall flat on Kenyans’ ears. 

A ballot decision in 2027, fills me with me with excitement making me jittering with hope for better leaders. However, it equally raises glowering suspicions and denial internally from past leadership traumas. The postponement of holding people accountable feels like Kenyans are sitting on a sharp nail till 2027 and unless Kenyans wake up and question the affluence in a country that boasts a skyrocketing national debt, 2027 elections winner may achieve meagre outcomes in their term. The consistent lack of oversight by the government in its spending is alarming and it should nudge Kenyans to fight the opulence and corruption in this country, Because, there is a no future Kenya, if we cannot shape the present Kenya.

Every unqualified person hired by heavily taxed Kenyans is a clog in the system and they shouldn’t wait until 2027 to be ousted. Clear jurisdiction processes exist on how to fire every leader or public servant deemed incompetent not only when passing personal interest bills, but equally when calling for accountability. Author James Clear says, “Every action you take is a vote for the type of person you wish to become. No single instance will transform your beliefs, but as the votes build up so does the evidence of your new identity”. Kenyans should decide now, transform our beliefs into action to get a new and a fruitful Kenya.

By IMMANUEL OTUNGA

Second Year Communication Student,  Chuka University 

Kenya is standing at a delicate economic moment. On paper, the numbers may suggest resilience, steady GDP growth projections, an active private sector, and continued infrastructure expansion. But beneath those statistics lies a different reality: households are strained, businesses are cautious, and confidence in economic direction feels fragile.

The conversation we must now have is not about short-term fixes. It is about structural reform. Over the past few years, Kenyans have faced rising taxes, elevated fuel prices, increased electricity costs, and a weakening shilling that has made imports more expensive. 

For ordinary citizens, the impact is immediate  higher food prices, higher transport costs, and shrinking disposable incomes. For businesses, especially SMEs, operating costs continue to climb while consumer purchasing power declines.

This combination is dangerous. When citizens spend less, businesses earn less. When businesses earn less, they hire less. The cycle feeds itself.

The government has defended recent tax measures as necessary to stabilize public finances and reduce debt dependency. That argument has merit. Kenya’s debt servicing obligations are significant, and fiscal discipline cannot be ignored. However, taxation without simultaneous expansion of productivity risks suffocating the very economy it seeks to stabilize. The real issue is not whether Kenya should raise revenue. The issue is how.

Broadening the tax base through formalization of the informal sector, improving tax compliance efficiency, and sealing revenue leakages would ease pressure on already compliant taxpayers. Instead of increasing rates repeatedly, reform should focus on efficiency, transparency, and accountability.

Equally important is the cost of doing business. Industrial players have consistently raised concerns about electricity tariffs, regulatory duplication, and unpredictable policy shifts. When policies change abruptly, investors hesitate. Predictability builds confidence. Confidence drives investment. Investment creates jobs.

Energy costs, in particular, remain a central issue. If Kenya aims to be a regional manufacturing hub, electricity must be affordable and stable. Without competitive energy pricing, local manufacturers cannot compete with imported goods. The result is a trade imbalance that further weakens the currency.

Agriculture, which employs a large percentage of the population either directly or indirectly, also requires strategic support. Farmers continue to struggle with high input costs  fertilizer, fuel, transport  while market access remains inconsistent. Strengthening agricultural value chains, improving storage infrastructure, and ensuring fair market pricing would significantly boost rural incomes and national food security.

Another pressing concern is youth unemployment. Each year, thousands of graduates enter the job market with limited absorption capacity. Entrepreneurship is often presented as the solution, yet access to affordable credit remains limited. Financial institutions price risk conservatively, and young entrepreneurs struggle to secure collateral.

If Kenya is serious about empowering its youth, then structured support systems  mentorship programs, tax incentives for startups, innovation hubs linked to universities must be strengthened. Economic growth without job creation is not inclusive growth.

Beyond policy, public trust plays a powerful role in economic stability. Investors and citizens alike respond not only to fiscal measures but also to governance signals. Transparency in public spending, consistent communication, and visible anti-corruption efforts reinforce confidence. Without trust, even sound economic policies struggle to gain public support.

Kenya does have strong fundamentals. The country remains a regional economic anchor in East Africa. Its financial sector is relatively sophisticated, its entrepreneurial culture vibrant, and its digital innovation ecosystem impressive. Mobile money penetration, for example, has transformed financial access and positioned Kenya as a continental leader in fintech innovation.But fundamentals alone are not enough.

The next phase of Kenya’s economic journey requires deliberate structural alignment reducing inefficiencies, supporting productivity, strengthening institutions, and ensuring that growth translates into tangible improvements in livelihoods.

Policy decisions must shift from reactive to strategic. Rather than responding to fiscal pressure with immediate taxation, long-term planning should focus on export expansion, industrial competitiveness, and domestic value addition. A stronger export base reduces pressure on foreign exchange reserves and strengthens the shilling organically.

In the end, economic stability is not built through isolated measures. It is built through coherence  where taxation, industrial policy, energy strategy, agriculture, and youth empowerment align toward a shared national vision.

Kenya’s economic crossroads is not a crisis, but it is a warning. The choices made today will determine whether the next decade is defined by sustained prosperity or prolonged strain.

The path forward requires courage, consultation, and consistency. And above all, it requires placing productivity and opportunity at the centre of reform.

By MERCY MUTEMI 

Communication Student,  Chuka University 

University life is often described as a time of growth, discovery and opportunity. However, for many students, it is also a period marked by financial struggle and constant worry about survival. Rising living costs, limited financial support and increasing academic demands have forced students to find creative ways to sustain themselves. Some take part time jobs while others start small businesses. For one fourth year, a veterinary student, Simon Wanjiru, survival has taken an unusual but innovative direction which is hatching eggs inside his small bedsitter. 

Inside his bedsitter residence near the campus, an improvised business quietly operates.  In one corner of the room, cartons are carefully arranged under warm bulb lights which hold dozens of eggs. This is not an ordinary storage but a home-made incubator designed to hatch chicks.

The student who is pursuing degree in veterinary medicine, uses his academic knowledge and practical skills to run the small enterprise. With limited financial resources, he could not afford a modern incubator machine. Instead, he improvised using locally available materials such as cardboard cartons and electric bulbs to provide the warmth needed for the eggs to hatch.

According to him, the idea came from necessity rather than choice. Like many Kenyan university students, he struggled to meet daily expenses, pay rent and afford basic needs. The financial burden pushed him to think beyond traditional student jobs. ‘’I had to find a way to support myself,’’ he explains, ’’Buying a professional incubator was expensive, so I decided to use what I had and apply what I learned in class.’’

The small business requires patience and dedication. The student carefully monitors temperature levels, regularly checks the eggs and ensures the environment remains suitable for hatching according to the marked dates numbered in the eggs. Despite the challenges, the project has started to generate income through the sale of chicks to local poultry farmers and nearby residents.

Running the business alongside academic work is not easy. Balancing lectures, assignments and the daily management of the incubation process demand discipline and time management. Yet the student remains committed seeing the venture not only as a source of income but also practical experience in his field of study.

His story reflects the broader reality facing many campus students today. Economic hardship has become a common experience, forcing learners to become entrepreneurs even before graduation. Students are increasingly turning to innovation as a survival strategy. Experts note that such initiatives demonstrate resilience and creativity among young people. The high cost of education and living expenses continue to push students into challenging situations, where survival often depends on personal initiative.

Despite the difficulties, Simon Wanjiru remains hopeful about the future. He believes the experience is preparing him for life after university and shaping his entrepreneurial skills. ‘’I see it as more than just a business,’’ he says, ‘’It is a lesson in resilience and step towards my future career.’’

His improvised egg hatching project may appear simple but it represents a powerful symbol of determination. In the face of economic struggle, students are not merely surviving, they are innovating, adapting and creating opportunities where non-existed before.

As financial challenges continue to shape campus life, stories like his reveal a generation determined to hatch hope from hardship.