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Productivity a Key factor in Developmental Progress

  • By Christiane Lemma
  • May 13, 2022

Kenya has undergone vast developmental progress over the past few years with a fall in the national poverty line from 46.8% in 2005/6 to 36.1% in 2015/16 as reported in The World Bank report of 2020. This is attributed to the increased rates of productivity that supported a stable growth in gross domestic product (GDP), and allowed Kenya to economically withstand the global financial crisis. However, if Kenya plans to continue its progress, productivity needs to be prioritized in its developmental frameworks.


Productivity has threatened to fall in recent years due to the misallocation of resources, government policies, ineffective structural reform, and the Covid-19 pandemic. These factors have prevented the use of agricultural resources and have negatively affected critical productivity aspects including transportation.


Kenya is also heavy in debt which results in a narrowing fiscal space. This is critical, as this limits “the ability of the state to finance critical public goods… including health care, water and sanitation, and education, as well as to provide more resources for … development expenditures.” (The World Bank, 2020, p. 35). Once the government halts financial support for these sectors, productivity is negatively impacted and this applies more stress on the economy. This allows for the negative feedback loop of narrowing fiscal space decreasing productivity, and decreasing productivity narrowing fiscal space. The Covid-19 pandemic further exasperates this issue, limiting the amount of work available for the community. As a result, the decreased rate of productivity can halt developmental progress and become one of the biggest barriers in long-term development.


Productivity is a key aspect of growth for Kenya, one that has become a challenge to positively grow in its current climate; and this is why Kenya Climate Ventures invests in local businesses. KCV collaborates with local, medium and small climate smart enterprises to support the work sector, increase productivity, and improve sustainability. With this process, KCV can aid the growth of the economy and fast pace the developmental journey of Kenya.

By Christiane Amare Lemma