Is Kenya truly on the journey to economic transformation?

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Kenya is a key economic player in East Africa with a population of nearly 55 million, and Singapore has a population of 6.11million. Kenya has land covering 580,367km squared while Singapore’s land covers 736km squared, making Kenya 789 times bigger than Singapore. The two countries continue to cooperate within multilateral platforms such as the United Nations and the Commonwealth. The Kenyan government has embarked on an ambitious transformation path, with Singapore as the benchmark, as it boasts one of the world’s highest standards of living. Kenya has a GDP of 136 billion dollars while Singapore has a GDP of 547.1billion dollars. The GDP per capita for Kenya is 5700 US dollars, while in Singapore it is 127,500 US dollars as per the World Bank report 2025, meaning that we are less productive, hence we have less income. We need to effectively deal with factors lowering our productivity.

60% of Kenyans are in the informal sector, which affects taxation, planning, skills development, and credit access. The formalisation of the informal sector will be key in achieving this plan, as the larger the tax base, the more the revenue for the country, which will help bridge our budget deficit. Kenya’s literacy level is 82% while Singapore is at 97%, Kenya has 76% electricity connectivity while Singapore has 100% connectivity, employment rate in Kenya is 5.2% while Singapore is 2%, Singapore has 91% internet access while Kenya has 29% internet access,71% of Kenyans have access to water while in Singapore its 100% access.

The exchange rate has stabilised at Ksh/USD 129, which has provided a good balance for importers and exporters, though we envision more exports and fewer imports. The new interest rate regime by CBK of using the KESONIA rate benchmark plus a risk margin for individual clients will ease access to credit and accelerate private investments. The recent initiative to exempt from taxation all Kenyans earning below Sh30,000 per month will be a welcome relief to most Kenyans in this bracket.

Singapore is one of the world’s most expensive countries in terms of cost of living, Kenya continues to implement programs in the agriculture sector to revolutionise the sector and lower the cost of living, Reduction of input prices for farmers as currently being implemented in targeted crops is key including commercialising farming and reclaiming dryland thorough irrigation schemes, Agrarian revolution is the precedent for industrial revolution in any economy

Singapore has automated its business processes both for the public and private sectors. The ease of doing business operations in Kenya is transforming with the automation of business registry services and e-government procurement systems, which will improve efficiency and time spent to comply and acquire licenses

Corruption is almost non-existent in Singapore, with culprits jailed or hanged. The judicial system also plays a role in economic development, as this ensures prudent utilisation of public resources. The Ethics and Anti-Corruption Commission (EACC) here in Kenya has increased its robustness in fighting corruption with more practical measures

Kenya is making major strides in infrastructure, with key economic enablers or multipliers being given priority roads, ports, nuclear and renewable energy, electricity stability, SGR, water connectivity, internet connectivity, and communication infrastructure. These enablers need to be used to help Kenya take off into manufacturing.

Housing is not just a social factor but also an economic factor.80% of Singaporeans live in decent houses developed by the Housing Development Board of Singapore, which maintains affordable housing. This compares to the current government’s affordable housing program being undertaken all over the country.

The education sector in Kenya is undergoing tremendous shift from 8-4-4 to CBE and early pathway selection. This will ensure education aligns with industry needs and stimulates creation of better goods and services, providing unique and satisfying solutions. Singapore achieved education and industry match by means of rigorous instructor selection, significant per-student investment, and a meritocratic structure that includes academic and vocational pathways.

Kenya has great entrepreneurial ability compared to Singapore, with micro, small, and medium enterprises (MSMEs) contributing 30% of the GDP. The MSMES have been facilitated with a dedicated ministry to accelerate this sector.

The new Social Health Insurance Fund(SHA) overhaul has achieved significant milestones despite challenges and continues to be perfected to lower the costs of healthcare for the citizens. Citizens also need to engage in preventive medicine to supplement government initiatives. Singapore utilizes the globally recognised 3M structure, which represents the Medisave, MediShield Life, and Medifund models.

Singapore is managed by the People’s Action Party, which is the primary political party that has been in power since 1965. This has provided stability and direction in matters of development. Essentially, this stresses that continuity in political party governance and streamlining the political parties can stimulate economic development.

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