Lucas Barasa
9 July 2009
Nairobi — Prime Minister Raila Odinga was on Thursday tasked to explain efforts being made by the government to address increased cost of doing business in the country.
Private sector players cited insufficient energy, poor infrastructure, corruption and red tape as some of the issues with a negative impact on businesses.
Mr Odinga who convened a breakfast meeting attended by ministers, permanent secretaries, parastatal chiefs and private sector to discuss Kenya's bid to host next year's World Economic Forum said a task force had been created in his office to see how green energy could be developed to reduce costs.
Chaired by the PM, the committee consists of representatives from affected ministries and experts from the energy sector.
Kenya, he said, wants to produce 2000 megawatts of green energy by 2012 and that he had talked to German President and a British minister who said the target could be realised.
The PM said the country had huge potential for production of solar, wind, geothermal and bio fuels and cited Turkana, Marsabit and Lamu as suitable areas.
He said high costs of energy made it difficult for Kenya to compete with countries like South Africa and Egypt on investments.
"We are determined to bring down the high costs of energy," Mr Odinga, said.
Mr Odinga's statement follows recent rise of fuel prices in the country.
On Thursday, the PM said the government had approved a paper on by-passes, adding that many things were also being done to improve infrastructure.
A standard gauge railway line will be built from Mombasa to Kampala, he said.
The government was further investing heavily in water development.
The Sh15 billion Kazi Kwa Vijana initiative, he said, was doing well and that it was part of the government's efforts to stimulate the economy.
On governance, Mr Odinga said the government was giving priority to reforms.
Noting a task force had been established to advice the government on police reforms, he said, apart from being expanded, the unit has never been reformed since independence.
The reforms, he said, will help create a fully national force with recruitment and promotions being done on a transparent manner.
The reforms will also deal with corruption in police, he said.
The PM added that reforms will also be conducted in Judiciary and that a Truth Justice and Reconciliation Commission had been established to deal with Kenya's past.
He said the boundaries commission will look into administrative and electoral boundaries.
The Independent Review Electoral Commission will help correct anomalies in the system.
On corruption, Mr Odinga said Kenyans have to change their attitude and stop offering bribes.
Mr Odinga noted it was important for Kenya to host the World Economic Forum saying it will help stimulate the economy.
Kenya is competing with Ghana and Tanzania to host the forum that was held in South Africa this year.
A technical team will be in the country next week to evaluate Kenya's ability to host the forum.
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