Make public-private sector forums more productive

Kenya is having lots of conversations these days. In social media and blogs, the term “kakistocracy” (a 17th century term for a system of government that is run by the worst, least qualified and/or most unscrupulous citizens) has cropped up a few times. The names “Romanov” and “Marie Antoinette” too. Through WhatsApp, I’ve seen at least three posts from young Kenyans in the past fortnight or so that ask tough questions of our political leadership. Let us be absolutely clear – these are not happy times

Last week, I spoke to the idea of a “thinking calendar” based on six macro-themes that the Jubilee administration needs to be spending sleepless nights on in the next two-and-a half years. Let’s remember they have already been in town for six and a half years. To recall, these themes were fiscal consolidation, development logic, new economy, digital economy, security, governance and enablers; as well as equity and equality.

I will occasionally track events to see how we work in each of these themes. Let’s skip Friday’s multi-lingual Mount Kenya “conclave” (and reportedly subsequent “mini pow-wow”) and move to Monday’s Kepsa-government “buzz session”. This was held for the first time under the “framework” of the National Development Implementation and Communication Cabinet Committee. Since it was a closed-door meeting, I made Twitter my friend and followed @KEPSA_KENYA and @PDUDelivery.

I was seeking new thinking on the economy beyond “kadogo”, “bubble”, “bandit” and “casino”. To government (@PDUDelivery), the meeting was about “enhancing the performance of private sector by addressing challenges facing the sector”. To Kepsa, the meeting’s theme was “economic stimulus on jobs, investments and revenue collection”. In other words, with differing objectives, the perfect setting to “talk at” not “talk to” one another – the ultimate “talk shop”.

And it didn’t fail to deliver. The private sector “wants”; the government “will”. Stuff is happening. Import clearance is down from 11 to four days. The VAT refund backlog is down from six to two percent. Huduma Centres and e-Citizen services are being merged (I thought they already were). All pending bills will be cleared by the end of this month. There is potential for private sector credit growth to rise from six to 10 per cent. Oh, and yes, the private sector is the engine of growth (a point I thought we fully agreed in Sessional Paper Number One of 1986).

Other things could or should be happening. The cost of power still needs to come down. Counterfeits are still prevalent. A Wages Council, to link pay to productivity and avoid “ceremonial increments” was suggested. Local roads contractors (local content, anyone?) must improve their work quality. SMEs (as represented by the Jua Kali Association at the meeting) want the SME Fund, patient (private) capital for SMEs, clearly identified work space and a priority list of 50 items that government will purchase. We also learn that it is estimated that an incredible 45 percent of the goods we import could be made here, while, on the other hand, there is a high-level of risk aversion in Kenya’s present investment climate.

Because everyone at the end of the meeting was so tight-lipped, the only press report I have seen suggested that Government had promised to fix everything within the next three to six months. Which everything when discussions only scratched the surface?

More useful, however, was the announcement (in the meeting) of a Regulations Conference that will be held every December to look at bottlenecks and opportunities in the regulatory ecosystem. This will answer important questions raised at the meeting around regulations to do with health products, building permits and live animal exports. The suggestion to private sector to align its engagement with government around the annual budget cycle was another useful pointer.

Because Kenyan officials don’t take notes, I bet most will have missed half of what I’ve put down here.

Two final points here. How do we set up these public-private sector meetings to work towards a common viewpoint that addresses the big issues (productivity, competitiveness, cost of doing business) as well as the micro-points? Then the eternal question, how are the resolutions, if any, translated into action, and such resolutions and actions communicated in the public interest?

Or, as one Twitterati put it, how do we know that Kenya’s recent development path is not just another Potemkin village – a construction built solely to deceive us into thinking life is better that it really is?