The government is projecting a growth rate of 6.7 percent for the year 2023-2024 attributed to the Bottom-Up Economic Transformative agenda.
National Treasury Cabinet Secretary Njuguna Ndung’u says Kenya’s economy began to recover in 2021 which saw an estimated 4.8 percent growth achieved in the year.
Speaking during a function organized by the Salaries and Remuneration Commission, the CS noted that tax revenue forms the basis for the current government wage structure, which is slightly above 50 percent of total tax revenue, amounting to about to 7.4 percent of the GDP.
The goal, however according to the CS, is to enhance tax revenue to 15.8 percent of the fiscal year 2023 to 2024.
While acknowledging that the COVID-19 pandemic triggered an economic downturn, that resulted in a staggering -0.27% recession, Professor Ndung’u said the government has strategically targeted specific sectors that are believed to yield substantial impacts and drive growth momentum.
He noted that the unique aspect of this agenda lies in its recognition of the necessity for change, with a focus on addressing the needs of the majority at the bottom of the economic pyramid, as well as those living in dire poverty.
The CS emphasized that robust economic growth is pivotal to eradicating poverty, and the government is committed to a pro-growth poverty reduction strategy, that centers on bolstering social protection programs to combat inequality.
“Strong growth is going to be very important to reduce poverty. But when it is supplemented by targeted social protection programs, it will flatten inequality in the long run,” he said.
Treasury: The Economy is projected to grow significantly despite the turbulence that had caused a deadlock. #KBCniYetu ^DB pic.twitter.com/19ufHZMZLj
— KBC Channel1 News (@KBCChannel1) August 10, 2023
Ndung’u emphasized that sectors benefiting the local “mwananchi” will play a pivotal role in uplifting those situated at the lower echelons of the socioeconomic pyramid.
The government’s pursuit of a bottom-up economic transformative agenda, as articulated by CS Ndung’u, offers a comprehensive strategy to enhance tax revenue while addressing economic challenges and inequality.
By focusing on sectors that directly impact citizens and incorporating targeted poverty reduction measures, it is targeted at uplifting those at the bottom of the pyramid, fostering a more prosperous and equitable future for all Kenyans.
