Kenya sets aside $110.7mn to unlock blue economy

The government of Kenya has earmarked $110.7 million to elevate the blue economy sector in the country, aiming to revamp fisheries facilities and reclaim landing sites. Economic Analyst Reginald Kadzutu recently shared insights on CNBC Africa regarding the strategies needed to unleash the industry's potential. Kadzutu emphasized the vital role the blue economy can play in diversifying African economies, particularly in light of the vulnerabilities and fragility exposed by the COVID-19 pandemic. With approximately 70% of African nations being coastal or islands, the continent holds substantial potential in leveraging its vast maritime resources to boost economic growth. Despite Africa's extensive coastline and inland waterways, the current contribution of the blue economy to the continent's GDP remains disproportionately low. Kadzutu underscored the opportunity for Africa to harness its blue economy to reduce dependence on traditional income sources susceptible to global market fluctuations, fostering economic resilience and sustainability. Regarding Kenya specifically, Kadzutu highlighted existing challenges in the country's approach to the blue economy. He pointed out the presence of numerous fragmented policies rather than a cohesive, integrated strategy dedicated to the sector. With over 70 discrete policies governing various aspects of the blue economy, Kenya's current framework lacks synergy and coherence needed for efficient utilization of maritime resources. Kadzutu stressed the urgency of consolidating these policies into a unified, comprehensive blueprint to streamline operations and maximize the sector's impact on the economy. Despite Kenya's blue economy presently contributing $1.8 billion to the national GDP, focusing mainly on tourism, maritime transport, and fisheries, there is significant room for growth by enhancing human capital and investing in critical infrastructure. In terms of human resources, Kadzutu identified a shortage of skilled labor in key areas such as deep-sea fishing, ship and boat building, and fish processing. Addressing this skills gap is crucial for the sustainable development of the blue economy and the creation of new employment opportunities. Moreover, inadequate infrastructure around water bodies, including facilities for fish processing, poses a hindrance to maximizing the value chain in the sector. Kadzutu referenced a concerning instance where Kenya resorted to importing fish from China due to insufficient domestic processing capacity, emphasizing the need for strategic investments in infrastructure to bolster self-sufficiency. To catalyze progress in the blue economy, Kadzutu emphasized the imperative of aligning annual budgets with sector-specific initiatives and ensuring the allocation of sufficient resources to drive growth and innovation. Recent announcements by the Kenyan government, including the allocation of 12 billion Kenyan shillings to advance the blue economy, have raised questions about the effectiveness of such investments. Kadzutu cautioned against hasty financial commitments without a clear, integrated policy framework outlining objectives, timelines, and performance metrics. While financial injections can fuel sectoral development, they must be accompanied by a coherent strategic roadmap to guide resource allocation and monitor progress. Kadzutu urged policymakers to move beyond token gestures and prioritize systematic planning to achieve tangible outcomes in the blue economy. Without a well-defined strategy supported by practical measures, financial injections risk falling short of catalyzing sustainable growth and enduring impact. Furthermore, Kadzutu acknowledged President Uhuru Kenyatta's directive to reclaim landing sites allegedly under unauthorized ownership, emphasizing the need for decisive follow-through on such mandates. However, he highlighted past instances where proclamations lacked substantive action, underscoring the importance of translating rhetoric into tangible results through consistent and accountable governance. Kadzutu's insights shed light on the intricate challenges and promising opportunities in Kenya's quest to unlock the full potential of its blue economy. By overcoming obstacles through strategic planning, targeted investments, and robust governance, Kenya can chart a course towards a more vibrant and sustainable maritime sector, driving economic growth and prosperity for its citizens.