21 January 2007, by Elly Wamari in Nairobi. Kenya"s sudden economic growth from a paltry 0.6 percent in 2002 to 5.8 percent by the end of 2005 is creating quite some remarkable excitement. Just about every economic pundit is throwing in an opinion or two over what the growth portends for the nation, and what should be done to sustain it.
Amidst the various debates are intimations that a slight rise might actually have been recorded in 2006 to push the growth figure to about 6 percent. Obviously, the Government is flaunting the rosy figures at every opportunity, and promising an even rosier scenario.
A few weeks ago, the Ministry of National Planning and Economic Development released a statement detailing the sectors that posted the most significant growths during the 2002-2005 period.
 
Tourism continues to be a major driver of Kenya"s economy. In 2005, earnings in this sector rose to $710 million or €544 million, from $565 million or €433 million in 2004. This translates to 25.6 percent increase in one year.
Agriculture did well too, during the period under review. It registered a 6.7 percent growth in 2005 against a targeted 3.1 percent. This means it has grown beyond expectations. Main contributors to this growth are horticulture (which has become a favourite for agricultural investors), tea, and coffee. Sugarcane and cereal production, as well as dairy farming, are on the recovery path. They contributed significantly to the growth in agricultural production. Even though, sugar is still going through some management hitches.
 
The visibly vibrant construction industry posted a growth of four percent. Economic planners had anticipated a growth of 4.2 percent in 2007. It would appear that this target is well within reach. However, a surprise increase in the prices of construction commodities towards the end of last year is causing some jitters within the industry.
The manufacturing sector registered the slowest progress, having only leaped by just under one percent between 2003 and 2005. With a growth of 10.5 percent in 2005 from 9.7 percent in 2003, this sector is well below the targeted growth of 15.5 percent in 2007. Poor infrastructure is the reason for such a paltry performance, according to the Minister for Planning and National Development, Henry Obwocha. The Government has set aside some funds for infrastructural development.
 
Following a duty waiver on computers last year by the Government, the ICT sector is expected to perform even better than its impressive growth of 11.8 percent in 2005, against a targeted five percent by 2007. It has literally zoomed past the estimates.
If such economic growth is sustained beyond elections this year, and if the presently heightened war against insecurity by the Government is also kept, the country"s attractiveness to investors faces good prospects.
 
What probably is left now is for the Kenya Investment Authority (KIA) to more aggressively market the country as a favourable investment destination. The authority has recently been accused by an economic commentator of sleeping on the job.
 
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