DECLINE OF KENYA’S ECONOMY

After independence, Kenya promoted rapid economic growth through public investment, encouragement of smallholder agricultural production, and incentives for private (often foreign) industrial investment. Gross domestic product (GDP) grew at an annual average of 6.6% from 1963 to 1973. Agricultural production grew by 4.7% annually during the same period, stimulated by redistributing estates, diffusing new crop strains, and opening new areas to cultivation. After experiencing moderately high growth rates during the 1960s and 1970s, Kenya's economic performance during the 1980s and 1990s was far below its potential. The economy grew by an annual average of only 1.5% between 1997 and 2002, which was below the population growth estimated at 2.5% per annum, leading to a decline in per capita incomes. The decline in economic performance in the last two decades was largely due to inappropriate agricultural policies, inadequate credit, and poor international terms of trade contributing to the decline in agriculture. Kenya's inward-looking policy of import substitution and rising oil prices made Kenya's manufacturing sector uncompetitive. The government began a massive intrusion in the private sector. Lack of export incentives, tight import controls, and foreign exchange controls made the domestic environment for investment even less attractive.
From 1991 to 1993, Kenya had its worst economic performance since independence. Growth in GDP stagnated, and agricultural production shrank at an annual rate of 3.9%. Inflation reached a record 100% in August 1993, and the government's budget deficit was over 10% of GDP. As a result of these combined problems, bilateral and multilateral donors suspended program aid to Kenya in 1991. In the 1990s, the government implemented economic reform measures to stabilize the economy and restore sustainable growth. In 1994, nearly all administrative controls on producer and retail prices, imports, foreign exchange and grain marketing were removed. The Government of Kenya privatized a range of publicly owned companies, reduced the number of civil servants, and introduced conservative fiscal and monetary policies. By the mid-1990s, the government lifted price controls on petroleum products. In 1995, foreigners were allowed to invest in the Nairobi Stock Exchange (NSE). In July 1997, the Government of Kenya refused to meet commitments made earlier to the International Monetary Fund (IMF) on governance reforms. As a result, the IMF suspended lending for 3 years, and the World Bank also put a $90-million structural adjustment credit on hold.
The Government of Kenya took some positive steps on reform, including the establishment of the Kenyan Anti-Corruption Authority in 1999, and the adoption of measures to improve the transparency of government procurements and reduce the government payroll. In July 2000, the IMF signed a $150 million Poverty Reduction and Growth Facility (PRGF), and the World Bank followed suit shortly after with a $157 million Economic and Public Sector Reform credit. The Anti-Corruption Authority was declared unconstitutional in December 2000, and other parts of the reform effort faltered in 2001. The IMF and World Bank again suspended their programs.
Net foreign direct investment (FDI) was negative from 2000-2003, but started trickling back in 2004, as demonstrated by an increase in the number of enterprises operating in Export Processing Zones (EPZs) from 66 to 74 between 2003 and 2004. The value of total investments increased from Ksh18.7 billion (U.S. $247.3 million) in 2005 to Ksh20.1 billion (over U.S. $278.3 million) in 2006. Following the end of the Multifiber Arrangement (MFA) textile agreement in January 2005, several textile and apparel factories closed, leaving 68 EPZ enterprises. In 2006, this number increased to 70 EPZ enterprises. According to the World Bank's Migrations and Remittances Factbook 2008, remittances rose from U.S. $338.3 million in 2004 to U.S. $1.3 billion in 2007, equivalent to 5.3% of the GDP.
The economy began to recover after 2002, registering 2.8% growth in 2003, 4.3% in 2004, 5.8% in 2005, 6.1% in 2006, and 7.0% in 2007. However, the violence that broke out after the December 27, 2007 general election paralyzed the economy in January and early February 2008 and closed the Northern Corridor in Rift Valley province, cutting off vital shipments of fuel and other goods to Uganda, Rwanda, Burundi, eastern Democratic Republic of the Congo and South Sudan. Tourists fled, and agricultural production in the breadbasket Rift Valley region was crippled. The manufacturing sector had to cut back operations by 70%, as unsafe roads prevented movement of workers, inputs, or products, and congestion at the Port of Mombasa slowed imports and exports. The signing of a reconciliation agreement on February 28 put the economy back on track, but the damage in the first quarter to agriculture, tourism, consumption, investment, and the financial, transport, and construction sectors is expected to shave 2008 economic growth from the 8% forecast to the 4%-6% level. Governments in major source countries for tourists to Kenya have lifted their travel advisories, and the Kenyan Government and tourism industry will make strenuous efforts to bring tourists back, but revenues will be a small fraction of the approximately $1 billion earned in 2007.
During President Kibaki's first term in office (2003-2007), the Government of Kenya began an ambitious economic reform program and resumed its cooperation with the World Bank and the IMF. The National Rainbow Coalition (NARC) government enacted the Anti-Corruption and Economic Crimes Act and Public Officers Ethics Act in May 2003 aimed at fighting graft in public offices. There was some movement to reduce corruption in 2003, but the government did not sustain that momentum. Other reforms, especially in the judiciary, public procurement, etc., led to the unlocking of donor aid and a renewed hope of economic revival.
In November 2003, following the signing into law of key anti-corruption legislation and other reforms by the Kibaki government, donors reengaged as the IMF approved a three-year $250 million Poverty Reduction and Growth Facility (PRGF) and donors committed $4.2 billion in support over 4 years. In December 2004, the IMF approved Kenya's Poverty Reduction and Growth Facility arrangement equivalent to U.S. $252.8 million to support the government's economic and governance reforms. However, the government's ability to stimulate economic demand through fiscal and monetary policy remains fairly limited, while the pace at which the government is pursuing reforms in other key areas remains slow. The Privatization Law was enacted in 2005, but only became operational as of January 1, 2008. Parastatals Kenya Electricity Generating Company (KenGen), Kenya Railways, Telkom Kenya, and Kenya Re-Insurance have been privatized, and the government sold 25% of Safaricom (10 billion shares) in 2008, reducing its share to 35%. Accelerating growth to achieve Kenya's potential and reduce the poverty that afflicts about 46% of its population will require continued de-regulation of business, improved delivery of government services, addressing structural reforms, massive investment in new infrastructure (especially roads), reduction of chronic insecurity caused by crime, and improved economic governance generally. The government's Vision 2030 plan calls for these reforms, but implementation will be delayed by the reconstruction effort, coalition politics, and line ministries' limited capacity. In June 2008, the government introduced a revised but still ambitious Vision 2030 plan that seeks to address the economic challenges stemming from the political crisis while still striving to meet growth benchmarks.
Economic expansion is fairly broad-based and is built on a stable macro-environment fostered by government, and the resilience, resourcefulness, and improved confidence of the private sector. Despite the post-election crisis, Nairobi continues to be the primary communication and financial hub of East Africa. It enjoys the region's best transportation linkages, communications infrastructure, and trained personnel, although these advantages are less prominent than in past years. On January 31, 2007, the government signed a $2.7 million contract with Tyco Telecommunications to perform an undersea survey for the construction of a fiber-optic cable to Fujairah in the United Arab Emirates (U.A.E.) called the East African Marine Systems (TEAMS). Two other fiber-optic cables projects are being pursued to link Kenya to the rest of East Africa and India. Once TEAMS and the domestic fiber-optic cables planned by the government are completed, the economy is expected to benefit significantly from reduced internet access prices and improved capacity. A wide range of foreign firms maintain regional branches or representative offices in the city. In March 1996, the Presidents of Kenya, Tanzania, and Uganda re-established the East African Community (EAC). The EAC's objectives include harmonizing tariffs and customs regimes, free movement of people, and improving regional infrastructures. In March 2004, the three East African countries signed a Customs Union Agreement paving the way for a common market. The Customs Union and a Common External Tariff were established on January 1, 2005, but the EAC countries are still working out exceptions to the tariff. Rwanda and Burundi joined the community in July 2007. In May 2007, during a Common Market for Eastern and Southern Africa (COMESA) Summit, 13 heads of state endorsed a move to adopt a COMESA customs union and set December 8, 2008 as the target date for its adoption.
In 2007, horticulture exports rose 65% to U.S. $1.12 billion, surpassing tourism as the largest foreign exchange earner. Tourism earned Kenya U.S. $972 million in 2007, up from U.S. $803 million in 2006, followed by tea exports of U.S. $638.9 million. Africa is Kenya's largest export market, followed by the European Union (EU). Kenya benefits significantly from the African Growth and Opportunity Act (AGOA), but the apparel industry is struggling to hold its ground against Asian competition. Ninety-eight percent of AGOA exports are garments, and Kenya's AGOA exports fell from U.S. $265 million in 2006 to U.S. $250 million in 2007.
Kenya faces profound environmental challenges brought on by high population growth, deforestation, shifting climate patterns, and the overgrazing of cattle in marginal areas in the north and west of the country. Significant portions of the population will continue to require emergency food assistance in the coming years.
Nairobi, Kenya - For the first time since independence in 1963, Kenya recorded a contracted economy, with a negative three percent growth during the 12 months to 30 November last year.
The unprecedented economic performance confirms the country's downward slide owing to gross mismanagement and factors beyond the government's control, such as drought.
According to the Central Bank's monthly review for February, estimates of key economic activities, including agriculture, indicate that the gross domestic product (GDP) declined by 0.3 percent during the 12 months, compared to 1.4 percent during the same period in 1999.
The bank attributes this poor performance in all the aspects of the economy to mainly drought, which brought about long and severe power and water rationing, and insecurity, which adversely affected foreign investment and tourism.
The major culprit, however, is high-level corruption and inept management.
This sordid state of affairs means that the current misery, including poverty, high rate of unemployment and poor provision of social services, including education and health care, will go on for most of the year.
Agricultural production in general declined by 0.3 percent, compared to 1.2 percent in 1999. For instance, the production of tea, the chief foreign exchange earner, slumped by 5.8 percent to 233,775 tonnes, down from 248,248 tonnes.
But the good news is that, owing to improved world prices, the earnings from the exports of the crop increased from 446 million US dollars to 473 million dollars.
The output of horticulture and other export crops also declined considerably, according to the review.
The manufacturing sector, whose GDP share is 13.2 percent, declined by 1.2 percent, compared to the one-percent fall the previous year.
The poor performance is ascribed to the reduced competitiveness in domestic production arising from the high cost of raw materials and other inputs, such as energy and transportation.
Finance, insurance, real estate and business services, which account for 10.5 percent of GDP, grew by 1.5 percent, compared to two percent in 1999.
According to the central bank, various measures have been taken to reverse the trend. These include the on-going repair of the road network, the restructuring of the central tender board, and the telecommunications sub-sector and the reforms in the agriculture sector.

NICKY BITA

The Power of Choice

Sometimes, in the seemingly never-ending quest for fulfillment, we arrive at a point where the question, "What's the meaning of life?" becomes meaningless. It is my belief that life has no meaning but that it is WE who bring meaning to it.

The purpose of life is to live it as brilliantly and as gloriously as possible. Everyday is an opportunity to say "YES" to life or to say "YES" to what may appear to be unfavorable circumstances. The choice is always ours. Say "YES" to life and we find that life responds with life-affirming circumstances. Say "NO" to seemingly unfavorable circumstances and they lose their power to hold you prisoner.

One of the greatest gifts, perhaps the most important, given to us by our Creator is the ability to make choices. All that we see around us, all the people we meet, all the events in our lives, all the circumstances surrounding us, good or not so good, are there because of choices we've made at one time or another.

We may not be able to figure out what choices brought what result because we make so many choices all the time. However, rest assured that there is a link between our choices and the life we live. Many of the great teachers throughout history have stated and restated this, so, if our past choices have brought us to where we are today, then our choices today will make the tomorrow that comes.

We can change our choices to those that produce peace, prosperity and happiness. Choose faith instead of fear and current frightening situations will have no alternative but to change their very nature. Choose courage instead of discouragement and your world will begin to vibrate at a higher, more beautiful level. Above all, choose love for this is the highest vibration of all.

Let your choices be based on the truth that the Universe is biased on the side of good. If you feel unsafe or frightened by appearances, you may just be reacting to remembered situations. Do not let your choice be dictated by logic alone but use your heart as a partner in the decision.

It is not what is happening around you that causes anxiety but what you think about what's happening around you. And since your thoughts are yours, you can choose to change them whenever you want. Change your thoughts and keep them changed and in so doing you would have started a process which changes your entire world.

Edited by Nicky

Boredom

The labeling of a huge part of human experience as boring is a relatively new phenomenon. The concept of boredom -- a sense of emptiness and a lack of stimulation -- didn't even exist until the nineteenth century. Before that, it was used only in the context of a person who spoke too long or rambled off the topic: "Oh, she's such a bore!" Now it is a state of being that is a fate worse than death.
Psychologists say that the problem we think is "out there" -- in the book, movie, job, relationship -- is actually in us. Boredom, they say, is created by an inability to delay gratification and a low tolerance for frustration, both of which have serious implications for our success in life and in love.
Any time we proclaim something boring, what we really are saying is that we don't have patience for it. Rather than looking at ourselves for the source of the problem -- and therefore the solution -- we look at whatever is provoking the feeling and label that the problem.
A lot of human experience can be considered boring. There are huge stretches of parenting, in relationships, in work, where "nothing" is happening, or at least nothing obvious. We can consider those moments boring and seek to alleviate that boredom with any distraction available. Or we can see such occasions as opportunities to tap into our patience and look more deeply.
Try it yourself. Go on a fast for a week in which you refuse to consider any experience boring. When your mind begins to use that label -- in traffic, say, or on hold -- challenge yourself to find something of interest in what is going on, either in yourself or the world around you. How does that change your experience?
With attention, nothing is boring, even the most routine tasks. If you tune in to how the warm soapy water feels as you wash the pots and pans, how does that change the experience for you? Or weeding the garden, how does it feel to bend and stretch in the sunlight? What *is* the name of that gray bird with the crested head that suddenly appeared? This level of experiencing life isn’t one that we tune in to, but it is one that can bear many riches of wonder at the very fact of being alive in this amazing world.

Nicky Bita

community commitments

Community commitment has been in my mind since my father passed away a long time before i was old enough to get to school, and my mother is not educated at all and my brothers finished secondary school but did not continue their education. I am taking the responsibility for my family to excel and go to university. They are all looking up to me to do something big with my life for my benefit and that of my family…I want to become a committed community developer with feeling and sense of the community so that I can go back to my community and especially care for the women and children who do not get the proper care they need. Women are not respected as well as children. I want to change this…I also want to be well paid so that I can also sponsor other children in my community to have the same opportunity I currently have. be part of this journey...

NICKY BITA

A Seaon of Forgiveness

From Brenda Coulter's book entitled seasons of forgiveness have really Learned to let go of worry and take risks as it brings out clearly a story of Victor Talcott who finds herself in a very dangerous situation. Her brother-in-law is trying to kill her and down the story Sam McGarry shows up to save her as his brother is moving next door.

The Next thing you know sparks are flying, but neither one among Tori or Sam know how to handle the situation. A lot is to be learned about how opposites attract each other, regardless of whether they want to or not. Sam likes to take risks and Tori is completely organized all the time. Have come to like Brenda because she has a way of grasping your attention from the first paragraph. I started reading this book while waiting at a job appointment office. I could not put it down. Every time we stopped somewhere I would keep reading. I was glad I wasn't driving at the time. I tell you its touching and inspiring you better try it out and wonder...

Through the book you learn so much about how God has a plan for your life. You can learn to let go of fear and worry and take a risk and a leap of faith. Doing so can lead to lots of adventure and Gods Grace and Revelation for your life will be with you.

Taste and find what a wonderful book

Nicky

The only movie by Robin Hood:Prince of Thieves

Have been of late fallen in love with Robin Hood movies but one of the best is the Prince of thieves ,Let me just get one thing straight: "Robin Hood: Prince of Thieves" is a good movie. Whether or not one accepts it as an absolute fabrication based loosely on a myth or as a continuation of the legend, it is a rousing and thoroughly entertaining film. Surprisingly, if one does look at the earliest Robin Hood ballads this version of the Robin Hood story does indeed stay surprisingly close in certain respects. One of the original ballads describes Robin's meeting with Little John as very similar to the film's depiction of the event. The way in which Robin and Marian meet in the film also has its basis in one of the ancient Robin Hood ballads.

In All the scenarios am fond of this retelling of the popular bandit-hero story, Robin begins as Robin of Locksley, a spoiled English aristocrat who goes off to fight in the Crusades for glory and "honor." However, Robin (Kevin Costner) is forced to grow up as he instead faces horrors and imprisonment at the hands of his captors. In a daring escape, Robin breaks out of captivity and sails back home to England, accompanied by a new acquaintance, Azeem (a Moor) who refuses to leave his side until his 'debt is repaid' and he has saved Robin's life as well. Once home, Robin is devastated to learn that his father has been murdered and his lands overrun by the temporary ruler while the king is away fighting, the Sheriff of Nottingham. In this film, the Sheriff is the main bad guy, who is assisted by Guy of Gisborne. Alan Rickman is absolutely irresistible as the evil sheriff, spouting off such memorable lines as "Locksley, I'm going to cut your heart out with a spoon!" and "You -- my room, 10:30. You, 10:45. And bring a friend," among others. Rickman hams it up perfectly and is a perfect foil to Costner's upbeat, impish and likable Robin. Mary Elizabeth Mastrantonio is good as Maid Marian, and Christian Slater puts in an enjoyable performance as Will Scarlett. Scarlett is also based on a character from the early ballads. The movie also boasts the famous Brian Adams song "Everything I Do" and is an aesthetically pleasing and well-done film from start to finish.

Much more will be coming to you every Saturdays so remember to follow this series

Nicky

how to make a girl fall in love with you

Getting a girl of your dreams is much like getting the car of your dream. But unlike a car which you can always bargain for, there is nothing like a 20 percent discount in courting the girl of your dreams, she’s so sweet a thing to be discounted, you dearly are in love with her and your feelings for her can only be communicated not by the words of the mouth, but by the words of the heart. Getting the girl actually depends on how big your heart is - faint heart, never won fair lady.

The first step in the heart-winning exercise for any man is to make a good impression. In your doing so, you don’t have to talk, dress or do the common things that all the Toms do to get a decent girl’s attention. Be unique, that’s all you need. Be a man of his own style. Dress decently - indecency can make one be mistaken for arrogance; watch your language - obscene language gives the impression of immaturity, being uncultured and cheap; be a man of good habits - don’t drink or smoke like any other loser.

Let her fall in love gradually. Romance is an important part of falling in love. When in College I had a crush on the most beautiful lady in our first year lot. Though all senior guys were out to get that girl, I managed to divert her attention from the other guys. I wrote her three letters without disclosing my identity and slid into her room secretly; all I said was ‘Yours Secret Admirer.’ The first letter contained the meaning of her name, this I got by playing around with the initials of her name to make meaning. The second was a funny message that could only be read backwards and it was all about her physique and her smartness. In the third letter I told the girl to be ready to receive a rose flower from her admirer, but only if she could be kind enough to phone him using a number that I had included in the letter. The girl did phone me that very night, and her first words to me were, “Hallo Secret Admirer.” So, the story of our love affair came to be. Later she told me that was so creative of me, no one had approached her in that manner. I made her fall in love with me in the romantic manner.

Befriending and understanding the girl you are out to get is the next important thing. This is what I also did. You have to understand that as a lady, she loves to be loved, adores to be adored and needs to be needed. This will move you closer to the girl and you’ll get to know what she’s into, what she likes and dislikes, and what her style is. Love is built upon friendship and it always leaves individuals better off having known each other should they break up. I and my College steady were to break some time later but to date, we are the best of buddies. Be sure that bringing out the selflessness friend in you will make her create room for you in her heart.

A shoulder to lean on and some good friend that she can always turn to is all that a lady wants. Please don’t hesitate to be helpful and supportive. Be that friend who rekindles her zeal of hardworking and restoring hope back into her life when she looses hope. This above all other things will make you her daily vitamin simply because you bring out the best in her in terms of personality and character. In you, she’ll have found that friend whom she can open up to, share with and advice each other on the rights and wrongs, the dos and don’ts of life. Don’t forget to always be there to celebrate the good times, and to lend an ear when the girl needs you to listen as a friend.

Make the girl feel special; because she’s someone’s friend - your friend, and let her know that she too has touched your life in a unique way like no one else could. Compliment her for her company and for being there when you needed her, when you felt sad and all alone. Show appreciations for the comfort the girl offers you and for making you smile.

In your day to day talks, share your dreams, your world, and every aspect of your life with your girl. Always dream with her, build with her, and always cheer her on and encourage her. Tell your girl how you always think about her even when you try not to think about her. Let the girl know that she’s your first thing in the morning and the last thing when you go to bed at night.

Her knowing that you were thinking of her when you slipped beneath the softness of your blanket and gave in to the bliss of sweet dreams, will make her go ‘my my’ and her heart will sing your name all the year round.

You have to be creative and constructive to keep girl’s interest in you so full of life. I remember one time I told my girlfriend to be to imagine we are both deaf and dump. We then sat opposite each other on the table and started sharing our feelings for each other using eyes and hand signs. It turned out to be some fun. There was also this time that we were in the library and we decided we are not going to speak to each other verbal, so I wrote a love note on a paper and passed it across the table to her, she replied and on and on we carried on our love on paper conversation till we almost exhausted a whole rim of paper. At sometime, I noticed that some guys sited with us on the table were enjoying our ordeal than their studies. Such are the things that made the girl embrace my world. I remember her suggesting that we play deaf and dump two years after we broke up, can you imagine that?

Never fail to phone her, even when she least expects it. I once called some girl that I was interested in at four o’clock in the morning. When inquiring of what I was doing up so early, I told her I was in thirteenth heaven, where people think of their loved ones when they can’t sleep. Wow! First thing early the next morning, she was at my door with a king-sized hug for me.No matter how many dates you take her, don’t make any elbow - exceeding moves after any date, just drop her home and with a friendly handshake, wish her good night. Don’t kiss her when she expects you to. Your respect as a gentleman will be earned on how patient you are with her when it comes to such matters as kissing her and accessing her inner graces.

The writing is on the wall that you want her, but you can’t have her just yet. Increase your demand. Try to show her that men are also hard to get at times. Make her realize that when she feels a little dizzy, a little tired, a little sad, a little sick, a lot bored and very much cold, she’s actually missing vitamin you. By this time, she’ll be so much into you and since love is truthful and is characterized by open and honest communication, honestly promise her your everlasting devotion, loyalty, respect, and your unconditional love for a lifetime. Prove to her that you’ll always be there for her, to listen and to hold her hand, and that you’ll always do your best to make her happy, and feel loved.

Remember, patience is the key to her heart; be like that gardener watching a fruit as it hangs on the tree, day after day admiring it, but, exercising tremendous self-discipline, neither feeling the fruit, nor pinching it, nor testing it to see if it is ready. And then, one day he holds out his hand and the fruit simply drops into it, ripe, warm and eager to be eaten.

The patience and self-control which you practice will make you more attractive and charming. This will qualify you as her daily vitamin and win you that heart hers.

I wish you to meet the girl of your dreams ASAP, make her fall in love with you, and make her feel the happiest girl in the world!

Nicky Bita