KAS

Kenya is the most industrialized country within East and Central Africa and its economy has shown a high potential to develop further in the future with economic growth rates higher than five percent.

Economic reforms are needed in order to lift Kenya from low-income to middle-income status. Especially Devolution is seen to have the potential to balance economic disparities between different counties and when successfully implemented, this process can contribute to an overall positive development in the country’s economy.

Devolution ensures equal access to resources and that every region profits equally from improved economic conditions. Thus it is highly favorable for devolution if the relevant economic national associations are supported to develop their own decentralized structures and to establish them in their respective counties. In the workshop, the facilitators further explained how devolution can stabilize the markets as it can influence the demand and supply on county levels. It is essential to understand the constitution and to know how to interpret the laws, so the business community can profit from them and prevent law abuse.

The meeting in Mombasa brought together those trade association and business leaders drawn from the six sub-counties of Mombasa County who participated in the joint training focusing on issues of new business tactics both in marketing and pricing while identifying opportunities available at the County Government. Another critical issue of debate was the strengthening of the understanding of certain principles of Social Market Economy. As a result decentralized structures suitable for trade associations were identified.

One core area of debate in this regard, was the need to establish a strong coastal regional network to enhance capacity building as well as to better harmonize local economic structures for more efficient representation and involvement of Sub-County Trade Associations. Another special focus was placed on how to promote and enhance public-private partnerships to strengthen the impact of trade unions at the county level and further to institutionalize capacity development of County Level Trade Associations. As a result the participants agreed on the fact that lobbying, advocacy and a sound economic policy are essential for a healthy trade environment and resources management. Moreover, the need to foster social unity and welfare of the business community through cooperation between the county government and trade associations was emphasized.

Another core area of debate was the importance of social justice in business. Businesses is also part of social responsibility. A fair and proper administration of laws conforming to the natural law of all persons is highly relevant for the Kenyan Society. In order to reduce poverty and to ensure a sustainable development more dialogue between Government and business representatives is needed. This can be achieved through Public-Private Partnership (PPP) and public participation such as discussion of the bills and the exchange of ideas.

Participants proposed monthly meetings with representatives of all Trade Associations and the County Governor. These meetings will in turn be used as forums to discuss the devolution implementation progress and to address specific economic challenges in the different Sub-Counties. It was concluded that more input from the business sector is essential before setting the County business agenda and the County Government budget. Finally, the facilitators and trade association representatives planned the forming of sector working groups in order to allow better consultancy cooperation between the business community and the County Government.

One of the objectives of the Konrad Adenauer Foundation in Kenya is to support the relevant national Economic Policy Associations to develop their own decentralized structures and to establish them in the Counties. Therefore, the workshop was highly relevant for the economic actors regarding the development and implementation of decentralized structures. The training was also used as an occasion to explore the issue of principles of Social Market Economy and decentralized structures suitable for trade associations.

Furthermore, participants also were aware of the fact that the agricultural sector in Kenya has a huge potential to solve the issues of food security. A current “Afrinol Project” has a focus on enhancing food security and on renewable energy. It does therefore fight the problematic of dry periods and hunger in Kenya and can guarantee sustainable revenue for 51 percent.