The Government is seeking to move away from short-term, project-based interventions to long term approaches.
Prime Cabinet Secretary, Musalia Mudavadi has said implementation of Kenya’s Holistic Productive Capacities Development Programme (HPCDP) calls for a long-term, multisectoral and programmatic approach.
The 10-year programme set to commence in 2025 aims to reshape Kenya’s economic future and fast-track the realization of the country’s development agenda by building strong economic foundations and empowering people, businesses and institutions to innovate, compete and thrive.
This, he said, is essential if the country is to build the productive resources, entrepreneurial capacities and institutional linkages that will enable Kenya to achieve sustainable economic development.
“It is through this integrated approach that we will create a conducive environment for job creation, innovation and inclusive growth,” said the PCS, during the high-level consultation on the implementation of HPCDP.” he said when he chaired a consultative meeting with key development partners Thursday morning.
The projected budget of USD20 million is targeted to operationalize the programme from March 2025 to February 2035.
He assured that the Government will work with its partners to mobilize resources, enhance policy coordination and drive the successful implementation of the HPCDP.
Mudavadi said the HPCDP is not an isolated initiative but is intricately aligned with the Government’s strategic priorities and long-term vision.
The programme focuses on economic diversification, industrialization and digital transformation directly complements the key pillars of Bottom Up Economic Transformation Agenda (BETA) namely agricultural transformation, MSME growth, affordable housing, healthcare, and the digital economy.
This synergy, he stated, will drive Kenya’s sustainable growth and global competitiveness.
“As we engage in discussions, I urge all participants to consider the long-term vision and critical role each of us plays in turning this vision into reality. Let us ensure that the outputs from this consultation are actionable and that they serve to strengthen our collective resolve in advancing Kenya’s development agenda,” Mudavadi urged.
Mudavadi, who is also the Foreign and Diaspora Affairs Cabinet Secretary, said that Kenya is at an important juncture in its development trajectory.
Despite a myriad of challenges, he said the country sees opportunities that are defining the future of the country and its people.
The challenges include need for economic diversification, industrialization, value addition, infrastructure development and digital transformation.
He stated that the Government’s ambitious development programs aim to turn these challenges into opportunities for scaling up economic growth and job creation, to meet the demands of the ever rising youthful and educated population.
“Our advancements in digital transformation have positioned Kenya as a global leader in this space. It is in this context that HPCDP, which is designed by the Government in partnership with the United Nations Conference on Trade and Development (UNCTAD), defines our roadmap towards addressing these challenges to accelerate Government’s realization of Kenya’s Vision 2030, the Fourth Medium-Term Plan (MTP IV) and BETA),” he stated.
The CS said HPCDP presents a holistic framework, which has been developed in consultation with key stakeholders.
Its five interlinked pillars: economic diversification and industrialization, infrastructure and the natural environment, ICT for digital transformation, private sector development and skills formation, offer a comprehensive approach to fostering structural transformation.
“This initiative will enhance value-added production, human capital and diversified economic activities that are critical to positioning Kenya on the pathway to a middle-income economy,” he stated.
He said the launch of National Productive Capacities Gap Assessment (NPCGA) in May last year, as well as the subsequent engagements, including the high-level dialogue on the HPCDP in August last year, have laid the groundwork for the implementation of this initiative.
“We now stand at the threshold of a new phase, where we will operationalize the programme’s goals, build productive capacities, and move forward the recommendations that emerged from the consultative process,” he explained.
To achieve the programme’s targets, the high level meeting was convened as the first step towards its implementation.
” In this regard, we appeal to our development partners to make firm financial commitments, with follow-up actions to be coordinated by the responsible department. We are encouraged by the willingness of partners like Qatar, Germany, Turkey, Japan and Saudi Arabia to support our ambitions. We look forward to further expanding these partnerships,” he noted.
Kenya recorded above-average growth rates in Africa exceeding 5% for the 15 years preceding the COVID-19 pandemic.
This enabled the country to reach an estimated GDP per capita of $2,082 in 2021.
Notwithstanding this progress, the country faces daunting economic and social challenges, including shortage of jobs and livelihood opportunities for its youth, which accounts for over 70 percent of the population.
The Holistic Productive Capacities Development Programme for Kenya (Kenya Programme) is designed to accelerate the implementation of the Kenya Vision 2030 and the Medium-term Plan 2022-2027 and lay the foundation for the country’s successive development agenda beyond 2030.
Kenya’s Vision 2030 hinges on bridging the country’s productive capacities gap — a crucial factor in transforming its economy from one reliant on low-productivity sectors to a diversified and high-value economy.
