INFRAESTUCTURA VIAL

At independence in 1963, Kenya inherited a highly unequal society on many fronts. There was inequity in entitlement to political, civil and human rights, and large disparities in incomes and access to education, health and land, as well as to basic needs, including clean water, adequate housing and sanitation. Since then, considerable progress has been made towards resolving these problems, particularly in education and, more recently, in access to improved health services and clean water sources. But much remains to be done to provide Kenyans with equal opportunities so that every Kenyan has an equal chance to realise his or her potential in life. There should be special programmes to benefit individuals and communities who, through no fault of their own, cannot take advantage of such opportunities. This is the key objective of the social equity component of the social pillar. Apart from equity in access to opportunities on many fronts – geographical units, income status, sex and age – it also emphasises equal political liberties and entitlement to human rights for all. The political pillar is also dedicated to the realisation of equal citizenship rights regardless of one’s origin, sex or age, and to equality of participation in the making of major policy decisions. All these aspects are relevant to the creation of social equity and wealth creation opportunities for the poor.

Some of the initiatives to reduce inequalities by 2030 have already been outlined in the sectoral strategies discussed above. These are summed up in this section as the major strategic thrust towards achieving a socially-just and equitable society, which constitutes the overall policy objective of the Social Pillar. But there are other strategic policies towards achieving a socially equitable and just society that will deserve continuous attention under Vision 2030. These included the following:

1. Raising average annual incomes per person from an estimated KShs.45,447

(approximately US$650) in 2006 to above US$3,000 (at 2006 prices). This projection is consistent with that of a rapidly-industrialising country;

2. Avoiding gross disparities while rewarding talent and investment risks in a manner that is deemed socially just and therefore not politically destabilising;

3. Reducing poverty from the current level (46 per cent of total population) by between 3 and 9 per cent, which is where most industrialising countries in South East Asia currently are;

4. Implementing policies that minimise the differences in income opportunities and access to social services across Kenya’s geographical regions, paying special attention to the most disadvantaged communities in the Arid and Semi-Arid Districts, urban slums and pockets of extreme poverty in the high potential agricultural areas; and

5. Increasing community empowerment through “devolved” public funds, weighted in favour of the most disadvantaged communities, to be allocated in accordance with locally-determined priorities through transparent and participatory procedures (i.e. use of devolved funds to prioritise local needs). As GDP grows at the anticipated level of 10 per cent annually under Vision 2030, the size of public revenue is expected to rise and with it, the proportion allocated to funding devolved to local communities. The strategy of increased empowerment for poverty reduction at community level will, therefore, be highly dependent on the realisation of the overall growth objectives projected in the Economic Pillar of Kenya Vision 2030.

Situation analysis

As a measure of overall human welfare, the UNDP’s Human Development Index (HDI) provides one of the best summaries of a country’s overall achievements in providing its citizens with quality education, health care, longevity, and basic necessities to lead a decent life along the lines spelt out by sectoral objectives of the social pillars in this document. The HDI ranges from one (perfect equality in access) to zero (totally unequal). In practical terms, it ranges from Norway (the best in 2004) which is 0.965 to Niger at 0.311. Figure 4.9.1 shows that Kenya’s HDI in 2006 was estimated at 0.532. While this is below Norway’s index of 0.965, it represents an improvement from the 1990s. But this average also hides disparities within the country, between urban and rural areas, between income groups, and between geographical regions. The 2006 UNDP Human Development Report Kenya indicates that Nairobi’s HDI is 0.773, Central Province’s is 0.637, Rift Valley’s is 0.528, Eastern Province’s is 0.531, Coast Province’s is 0.518, Western Province’s is 0.516, Nyanza Province’s is 0.468 and North Eastern Province’s is 0.285. As we move towards 2030, there is need for Kenya to develop its own welfare indicators, which are more consistent with our aspirations.

Figure 4.9.1: HDI for selected countries

Source: UNDP, Human Development Report (2006) Country

Human Development Index HDI

•The HDI ranges from 1.0 (perfectly ‘equal’) to 0.0 (perfectly ‘unequal’)

•Strategies to improve access to vital services (e.g. education, health, water and sanitation) will uplift Kenya’s HDI from 0.532 to 0.750 or above. 0.965 Norway 0.805 Malaysia 0.784 Thailand 0.768 China 0.532 Kenya

Source: UNDP, Human Development Report, 2006

To achieve that target, Kenya will consolidate the gains made under the ERS that targeted improved education, health, water and sanitation, among other human resource investments, to the most disadvantaged communities and geographical areas. The strategy for raising the national HDI will therefore give priority to communities left behind, and thereby upgrade them to national levels. This should raise the HDI from 0.532 to 0.750 or above.

As measured by the Gini Index, which rates income distribution from zero (perfect equality) to one (absolute inequality), Kenya’s Gini Index was estimated at 0.425 in 1997 and declined to 0.380 in 2006, according to data resulting from the 2005/06 Kenya Integrated Household

Budget Survey. But while rural income disparities fell, those in the urban areas increased. Yet, income distribution in Kenya compares favourably with that of her neighbours and other developing countries. Through Vision 2030, Kenya aims to achieve an HDI of between 0.750 and 0.805, which is the range of rapidly industrialising countries in South East Asia.

Figure 4.9.2: Gini Indices and National Poverty Levels of selected countries (2006)

Source: UNDP, Human Development Report (2006); KIHBS

Country Gini Index

0.380 0.346 0.430 0.408 0.492 0.420 0.447 Malaysia China Ghana Uganda Thailand Kenya Tanzania 46 36 38 9 13 5

National Poverty Levels (%)

At an annual per capita income of US$650, Kenya’s top priority, therefore, is to raise national incomes, particularly those of its poorest citizens, while ensuring that income distribution improves, not worsens. To realise this objective, Vision 2030 intends to raise overall incomes while reducing national poverty levels, now estimated at 46 per cent, to single digits by 2030. This will eradicate core poverty, while increasing incomes and opportunities for practically all of the population.

Strategies

One strategic intervention is to address poverty and equity issues through distributing growth more evenly among income groups and strengthening social and political programmes targeting the poor. This will be complemented by increased use of devolved funds, whose absolute amounts are expected to rise as the economy expands. In 2006, funds disbursed through such funds amounted to KShs. 32.54 billion covering the Constituency Development Fund (CDF), the Local Authority Transfer Fund (LATF), the District Roads Fund, the Constituency Aids Fund, the Constituency Educational Bursary Fund and free primary education. To upscale the ground-level impact of these funds, Vision 2030 expects an increase in funding to be matched by more transparent and participatory expenditure, combined with enhanced efficiency in resource utilisation. In addition to direct intervention through a devolved expenditure policy, all the economic, social and political strategies proposed in this Vision have a strong equity component.

Vision and strategies for achieving equity

Vision 2030 aims to “create a socially just and equitable society without extreme poverty”. The ultimate objective will be to improve the livelihoods of the poor e.g. through better technologies, better livestock management, better ASAL technologies etc.

Flagship projects

1. In order to better target and reach the poor than hitherto before, data collection will be improved to map out the spread of the poor throughout the country and to create profiles of the poor and their pressing needs;

2. Targeted programmes and projects will be formulated in light of the data profiles established; and

3. An integrated national strategy will be developed to promote good governance and effectiveness of devolution of funds.

Flagship projects and Initiatives

1. Gender and regional parity in access to education, health, and social services: The objective under this thrust is to raise the levels of income, education, individual health, longevity and access to basic needs of all Kenyans. This will raise the Human Development Index for Kenya from about 0.5 in 2007 to between 0.6 and 0.7 by 2012. That achievement will reduce the social inequalities the country faces today in access to income-generating opportunities and public services across gender, regions and income groups. In addition, special welfare programmes will be provided to meet the needs of the most disadvantaged individuals and communities in the country in order to raise their overall welfare levels. The education and health sectors will play a particularly unique role in the attainment of gender and regional parity. Achievement of a net enrolment ratio of 95 per cent in primary schools, and a transition rate of 80 per cent into secondary schools, as well as integration of pre- schooling and primary education, will offer increased opportunities for currently disadvantaged groups. Revamping the national health infrastructure, targeting of preventive health care, reduction of child and maternal mortality ratios, reduction of out-of pocket-expenditure to 25 per cent nationally (and to less than 25 per cent in the poorest districts) will all prolong the lives of those currently under threat, thus presenting them with better opportunities. In addition, the Ministry of Health will complete ongoing institutional reforms to delegate health care delivery to local hospitals and clinics with the full participation of communities in decision making. This will allow the Ministry to focus on policy issues. Overall, health expenditure will emphasise preventive and promotive care, which has the highest potential in lowering the national disease burden.

2. Poverty reduction, and reduced income disparities: The objective under this thrust is to reduce inequality in access to public services and income opportunities across gender, social status and regions. The specific goal will be to reduce the national poverty ratio from the current 46 per cent to a range of between 30 and 35 per cent by 2012. A key strategy to attaining this goal is to target more income-earning opportunities for disadvantaged groups and regions (as identified above) in the six growth sectors of tourism, agriculture, wholesale and retail trade, manufacturing, BPO and financial services. There will also be increased infrastructure spending in the sub-sectors of roads, water, sewerage, communications, electricity and lighting targeting poor communities and regions. These measures will be aimed at creating an

enabling environment for poor communities to take part in wealth creation for themselves and their country.

3. Community empowerment through increased efficiency and impact of devolved funds:

The objective of this initiative is to increase the efficiency and developmental impact of devolved funds. The goal for 2012 is to increase the amount of devolved funds by the percentage growth in annual revenue. This goal will be achieved by increasing the amount, efficiency and impact of devolved funds and by increasing public participation and voice of the poorest members of local communities so that development issues of concern to such members can be channelled into public policy.

CHATER 5: POLITICAL PILLAR: MOVING TO THE FUTURE AS