Office of the Deputy Prime Minister and Minister of Finance.

Keynote address by the Deputy Prime Minister and

Minister for Finance, Hon. Uhuru Kenyatta, EGH, MP,

on the Economic Stimulus Programme Website

and GIS Mapping launch at KICC on 19th January 2011

Fellow Cabinet Ministers Present

Permanent Secretaries,

Senior Government Officers,

Distinguished guests,

Ladies and Gentlemen,

It is my great privilege to be amongst you as a partner engaging in this process. A

process that clearly demonstrates the creativity of our youth, the resilience of the
players in the various sectors of our economy and the great contribution that
technology is making in enhancing the Government’s responsiveness and ability to
deliver to Kenyans. So let me begin by personally thanking you for taking the time
to attend this function. We, who are gathered here today, and indeed we who hold
any claim to the Kenyan title, are at a critical juncture in the revival of our
economy. Collectively, we have witnessed successes, shared in tumultuous
experiences and borne the painful, but instructive, sting of failure. We have also
experienced challenges that, several times, have threatened to extinguish our hope,
stifle our growth and eradicate our vision. Our resilience has time and time
again been put to the test, and its continued existence is testament to the abounding
potential that we each hold within us. Therefore, as I address you today, and as we
launch this monitoring and reporting initiative for the Economic Stimulus
Programme, I appeal to that undying Kenyan spirit, to that resilience and to the
hope of the full turnaround and take off of our economy. In the 2009/2010 Budget
we launched the Economic Stimulus Programme (ESP). The ESP was designed as a
high intensive, and high impact programme, aimed at investing resources in
projects with both short term and long-term benefits. The Economic Stimulus
Programme has since turned out to be the most revolutionary intervention in the
devolution of resources after the Constituency Development Fund (CDF). The ESP
was premised on the need to urgently overcome the challenges facing Kenya at the
time, especially the effects of the global economic downturn characterised by a
shrinking demand for our exports and decline of remittances from Kenyans abroad.
 Those were challenging times. Economic growth in 2009 was a paltry 1.7 per cent, a
huge decline from the impressive 7.1 per cent at the end of 2007. Agricultural
production had declined massively, while economic activities in the key growth
sectors of tourism and construction reduced. This necessitated innovative thinking
on immediate and future options. For the interventions to be sustainable they had
to hinge on the important role of partnerships and the positioning of the youth as
drivers of the envisioned knowledge economy. The guiding philosophy of the ESP
was the expansion of opportunities for economic engagement, based on the
principles of the need to ensure food security and diversification; wealth and
employment creation; and investment in the human capital development..

The implementation Framework

As the government embarked on the implementation of ESP, it became clear that a

robust implementation framework would be required so as to serve for the
implementation of ESP in subsequent years if found necessary. This framework was
also expected to provide lessons and best practices for fiscal decentralization going
forward. The development of this framework took longer than expected due to the
extensive consultations with relevant stakeholders, and, therefore partly
contributed to the delay in kick starting the implementation of the ESP.

The menu of projects proposed in the programme, were selected following a careful
analysis on measures that needed to be taken to ensure rapid, targeted long term
sustainable development and growth. Some of the key indicators that informed this
analysis are as follows: -

Firstly, with 84% of the population being under 40 years, Kenya’s population is
predominantly young. Further more than 50% of the total population lives below
the poverty line, implying that most of the poor are actually the youth. It was clear
that unless development policy begins to systematically, and, in an integrated
manner target the youth, the results of development may not be realized by all.
Addressing intergenerational equity has been a fundamental principle of this
programme.

Secondly, the challenges of regional inequalities were identified as a key priority by

the Government. Investment in marginal areas, to ensure that they are economically
viable has the benefit of further expanding development options as well as
integrating a previously left out segment into the mainstream economy. An
imperative in terms of pursuing long-term food security would require the opening
up of these Arid and Semi-Arid Lands as food production zones by use of irrigation.
This is based on a sound food production policy and a strategy aimed at shifting this
country from reliance on rain-fed agriculture.

Third, the building blocks of sound economic development are anchored on

investment in human capital. This includes investment in education and health, and
in creating a conducive environment that facilitates innovation, and the translation
of this innovative potential into entrepreneurial activities. An educated healthy
populace is key in servicing the demands of an expanded economy. Private sector
investment takes cognizance of the quality and dynamism within the labor market.
The programme is therefore laying a foundation for building the envisioned
knowledge economy, where the private sector plays an integral role.

Ladies and Gentlemen,

As is noted above, the choice of intervention measures of the ESP are framed within
broader policy objectives, as stipulated in the Vision 2030, the current national
development blue-print. The ESP is therefore consistent with government planning
that is characterised by sequencing that reflects the current priorities and desired
development outcomes. In addition, and like in practices elsewhere in the world, this
stimulus programme focuses on sectors that have the potential to unlock the flow
of resources required to sustain a vibrant robust private sector.

It has not disappointed - ESP has stimulated economic growth, created employment
and spurred entrepreneurship and innovation. The successful implementation of
ESP has clearly demonstrated the Government’s commitment to revitalise the
economy. The ESP has played a significant role, amongst other interventions in
contributing to the return of our economy to a sustainable GDP growth
now expected to be 5% by June 2011.

ESP targets sectors that have strong multiplier effects on economic growth. It is
designed to address regional development imbalances and intergenerational
inequalities. Activities covered under ESP range from the development of social
infrastructure such as schools and health-centres, and the construction of fresh-
produce markets and ‘jua kali’ sheds, to irrigation-based agriculture,
construction of fish ponds, tree planting. All these contribute to the improvement of
economic and social welfare, and, the achievement of the Millennium Development
Goals.

Ladies and Gentlemen,

In the overall, the results of the ESP have been impressive. And for this we ought to
extend our gratitude to the commitment and diligence shown by the implementing
ministries in ensuring that their respective components are implemented. These
successes have been the result of the dedication, consistency and support of
implementing ministries and coordinating teams at national and devolved levels.
Despite many challenges, they have run the projects to the second phase (2010/11).

THE ESP WEBSITE

Having gone through the first phase of implementation, the ESP has seen the need
to incorporate an integrated management information system through the creation
of an interactive website, and geographical information system. The website is an
interactive web solution for updating and sharing information and knowledge from
all parts of the country on projects. It comes complete with an email address, search
engine, website analytics, and is linked to social networks such as Facebook
and Twitter.

THE ESP GEOGRAPHICAL INFORMATION SYSTEM (GOOGLE MAPS)

Further, the ESP has developed a web-based Geographical Information System

(G.I.S), anchored on the Google Mapping platform, which will diffuse the evolution
and progress of ESP projects. Information from across the 210 constituencies is
expected to be captured and disseminated through an Internet application
programme. This provides us with a two-pronged mechanism of communication
and interface between ESP programme managers and the public, and a mechanism
for transparency and accountability to track implementation.

The ESP website and GIS system are expected to increase efficiency, openness and
objectivity in monitoring, evaluation and impact assessment of projects. It is
important to note that the ESP website/GIS is one of the first Government portals to
use the county framework as its unit of reference, making our ministry a pioneer in
envisioning and operationalizing the aspirations of our new governance structures
for access to information.

i. The ESP website and GIS mapping tool will ensure simultaneous diffusing of ESP
information, feedback and interactive fora between the Government and
stakeholders. These tools provide a structured framework in which “real time”
project management updates can be undertaken with the click of a button.

ii. The web based applications provide an effective monitoring, evaluation and
reporting framework that boosts transparency, objectivity and accountability for
both government and the general public to keep track and affirm the progress of
project implementation. Having been designed as an interactive portal, the website
provides a tertiary level monitoring and evaluation framework where citizens will
assist government in verifying project status and implementation.

iii. The presence of an online portal is expected to increase citizen interest,

participation, and ownership in local development projects, and propel local
community commitment and a sense of voluntarism in seeing the targeted projects
through to completion.

iv. With the website linked to Facebook, Twitter and You-Tube, it will provide
Government with real-time communication, feedback and interface with national
and global stakeholders keen on tracking development initiatives at the micro, meso
and national level. These social network tools will naturally attract the participation
of a development conscious younger generation of Kenyans, who frequently use
these media within their social circles.

v. The opportunities presented by this framework are limitless. With the advent of
enhanced android technologies for example, the configuration of the web portal and
GIS tool will allow for even greater government utilization of technological
advances, moving us to a new age.

vi. Ultimately, the tools will add value to the Government policy on an efficient and
effective Public Service.

Ladies and Gentlemen,

It is important to point out that this information management system is at its

nascent stage, and is expected to grow. With the designed framework, I assure you
that information will be fully updatedprogressively.

The Stimulus is about innovative thinking, a different way of doing government

business based on lessons of what works best. Targeting at the constituency level,
will ensure that every part of this country will be reached with one project or
another. Based on the results of these measures, the government will thus decide on
the next steps, and other areas for intensive investment in the future.

Ladies and Gentlemen,

The ESP website and GIS mapping tool is a further demonstration of our
commitment to enhancing transparency and accountability in the management of
public resources and the provision of quality service in fulfilment of our governance
goals. Indeed the new constitution of Kenya recognizes integrity, transparency,
accountability and sustainable development as national values and principles
of good governance. Furthermore, the innovation that the portal provides further
showcases the capacity of government to utilize technology to improve on our work.
We are also intent on undertaking similar initiatives in all our programmes and
interventions, and urge all other government programmes do the same.

I wish to recognize the support and commitment of the team behind this successful
launch, who despite the obvious challenges in creating and designing a portal of this
nature, nevertheless undertook the mammoth task of transforming this ordinary
government initiative into this interactive, technology savvy component that is the
ESP website and GIS portal. Firstly, I take great pride in acknowledging the
contribution of students from the Geospatial Engineering and Geographical
Information Systems Department of the Jomo Kenyatta University of Agriculture
and Technology (JKUAT) who worked through the Ministry’s Student Mentorship
Programme in collaboration with the ESP secretariat team. The Kenya that we
aspire to build will definitely be inspired by this generation of young Kenyans
who tirelessly worked long hours to secure the data and structural needs of the
product you now see before you. As a country driven by the vibrancy of youth, our
policies should reflect our commitment to creativity and innovation. We cannot
afford to see the brilliant innovations and ideas of our young people continually
relegated to “back burners” simply because they lack the start-up capital
and/or investment. We must hold strong to our belief in these Kenyan minds that
can, and will, bring forward inspired and original ideas that will not only affect how
government works, but that will establish us as pioneers in the African continent.

I further wish to acknowledge the contribution of Google East Africa and Iridium
Interactive, who have actualized our private public partnership aspirations through
providing the technical logistical knowhow in bringing the website and GIS portal
to fruition. The dedicated team from Iridium Interactive, who dedicated key
personnel to work onsite at the Ministry headquarters, ensured that we have the
design quality and standard that we see here today. Our appreciation is further
bestowed because these teams were making this contribution without regard to
remuneration or compensation, keen to ensure that we are well grounded to secure
information and communication to the future of the Kenyan Republic. My final
commendation is to the ESP secretariat, for their continued support in overseeing
the project implementation, as well as securing the necessary skill and support to
the creation of this website. In recognition of their tireless efforts, I shall be
awarding them with certifications of recognition.

Ladies and Gentlemen,

In conclusion, I want to urge you as Kenyans to continue believing in the capacity of

the Government to deliver results. Efficient service delivery to our tax payers has
been a key reform agenda and this programme is one of the great leaps in that
direction. I am persuaded, that it is possible to achieve most of the targets of this
programme in the stipulated time-frame, as the projects have been
conceived through a thorough analysis and understanding of what it takes to deliver
on them, involving the technical input of the ESP implementing ministries.

We, as a country, are making significant strides aimed at positioning ourselves as a

key player in the global economy. To achieve this, a new way of thinking and doing
business are the imperatives on which action will be based. We are keen on learning
from those who have made changes that delivered positive results while being aware
of our local context. We as the Government are making investments in our people to
reverse and avoid the negative human development indicators that have
characterised our profile, and move towards the Kenya envisioned in the Vision
2030.

I am proud to say that ESP has and will continue play its part in contributing to the
country’s economic growth path. I encourage you to frequently visit the ESP
website and ESP Google maps, post your comments, blog, tweet, discuss and surf
Kenya’s ESP universe. Together let us share our “ESP experiences.’’
 Ladies and Gentlemen I ask that we all allow ourselves to be displaced from the
counter-productive yoke of cynicism that has shadowed so many of us for so long;
that we keep eyes trained ahead at a time when meeting with distractions and
impediments may urge us to work even harder, and that we allow ourselves to truly
feel the weight of the responsibility that is upon us, and choose to take it up. I urge
all this because I truly believe in our ability to rise above a mediocre mentality that
is parent to the unimaginative, but I also implore you, because I know that we as a
nation, armed with our experiences; our unique collection of successes and failures,
today stand poised to realize fundamental, long awaited and reformative change in
our economy.

With these remarks, I declare the ESP website and GIS mapping officially ‘LIVE’.

Thank you, God bless you, and God bless Kenya.

__________________________

Hon Uhuru Kenyatta, MP, EGH,

DEPUTY PRIME MINISTER & MINISTER FOR FINANCE.

19th January, 2010