Manufacturing Industry and Economic Growth in Kenya : A Kaldorian Approach

What are the prospects of Kenya's long-term economic growth and development? This paper provides an analytical description of the Kenyan economy by looking at Kenya Vision 2030 with a special focus on underlying structural dimensions. One of the important factors affecting Kenya's development process is the low level of industrial development. Despite opportunities brought about by globalization, industrialization is on the verge of by-passing the country altogether. On the advise of development partners, the country continue to emphasize agriculture development in the conviction that improved agricultural production will lead to growth and reduce poverty as it is the mainstay of the economy. As this paper points out, this is detrimental to the country's growth ambition of attaining industrialization and middle-income status by 2030. The study recommends emphasizing industrial development against agricultural development as the basis for growth. Policy makers in Kenya ought to promote industrial production as the prime option of realizing sustainable growth contrary to any advice that agriculture is the engine of growth. The paper points out the magnitude of the changes required to catch up with newly industrializing countries that were at par with Kenya like Singapore four decades ago. Partnering with industrialized countries ought to be the leading factor