Challenges The impact of the financial and economic crisis on ten African economies and labour markets in 2008-2010: Findings from the ILO/World Bank policy inventory‎ - 1.1 MB‎

61 Table 7. Summary of cash transfer programmes and coverage in Kenya B 7 5 6 ? 5 . 6 . : 7 . . . 7 5 . 6 7 . ? 7 . 5 . 8 ; ? 6 . 7 52, 6 8 + 8 + O . 5 9 7 . 6 9 5 96 9 5 96 O 7 54 ,46 8 + 8 9 5 96 9 5 96 7 7 . 5 ? 6 + 8 Q 9 5 96 9 5 96 Source: ODI Nov 2009 The government contributed 30 per cent of the costs of the Child Benefit programme US3.9 million in 2009, and was planning to maintain contributions of up to 20 per cent in the coming years as coverage increased, and extend its funding to cash transfers for the elderly US7.2 million, funded wholly from domestic resources. This reflects Kenya’s concern to promote policy stability by limiting reliance on donor funding which is subject to shifts in donor preferences McCord 2009. With KSh 1.2 billion available, the Women Enterprise Development Fund WEDF funded over 92,000 women in their income-generating activity. Also, 1,000 people with disabilities have been trained in various technical skills. Turning to public employment services, on-line registration for jobseekers was developed, and matching services with prospective employers improved. A total of 12,000 Jobseekers were placed through the public employment system while over 34,000 trainees were placed after their traineeship. Also, 9.1 million farmers were trained with the aim of sustaining the growth in agriculture under the agriculture development fund scheme. The government also raised basic minimum wages these had not been adjusted since 2006 with effect from 1 May 2009, by 18 per cent for the general workers in large towns, from KSh.5,195 to KSh.6,130 per month. In smaller towns this adjustment was reduced from KSh.5,195 to KSh.5,655. For all other “towns”, the figures are KSh.3,270 rising from KSh. 2,771 with a housing allowance of 15 per cent of the basic wage. For agricultural workers, the consolidated minimum wage was upped by 20 per cent from KSh.2,536 in 2006 to KSh. 3,043 per month as of 1 May 2009.

3. Challenges

Kenya’s poor economic performance in 2008 was largely due political instability and civic unrest that followed the February 2008 election. The political instability initiated a drop in tourism, a major source of income and employment in the country, while the crisis amplified the drop. There was also a reduction in the volume of exports in 2008 with respect to the year before -9.9 per cent, following the contraction in exports market to industrialized countries. These two factors contributed to a decrease in government’s revenues. In 2009, Kenya launched an ambitious fiscal package amounting to 3.6 per cent of GDP, which was an answer to political troubles and increase in commodity prices, as much as to the financial crisis. The fiscal package targeted infrastructure development, youth employment and tax cuts to boost aggregate demand. The combination of decrease in government’s revenue and increase spending has increased the budget deficit to an estimated 7.5 per cent of GDP in 2010. However, the 2010 outlook for the Kenyan economy was improving. First, Kenya’s exports would be likely to benefit from the expected recovery in world economic growth and the increase in prices for some of Kenya’s main exports recorded in early 2010. Second, the impact of the 2009 fiscal stimulus, implemented by the Government in late 2009, would be felt throughout 2010. As a result, the Kenyan economy was expected to grow by 3.6 per cent in 2010. 62 Sources Central Bank of Kenya, 2009: Annual Report and Monetary Statements. ILOWorld Bank, 2011: Inventory of policy responses to the 2008 financial and economic crisis forthcoming. IMF, 2010: Country report N°1026. Ministry of Finance: Budget strategy Papers 2009 and 2010-11-24. McCord, A., 2009: Cash transfers: Affordability and sustainability, Project briefing No. 30, Overseas Development Institute and Swiss Agency for Development and Cooperation. London. Office of the Prime Minister: Data about K.K.V Jobs for youth Programme. http:www.kkv.go.keindex.php?option=com_contentview=sectionid=9Itemid=90 63 Réponse du Mali face à la crise Le Mali a connu un léger ralentissement de la croissance d’un demi-point à 4,5 pour cent en 2009. Ce ralentissement est à mettre au détriment des effets de la crise sur le secteur industriel textile et agroalimentaire engendré par la baisse de la demande. Cependant, la reprise a été meilleure que prévue grâce à la bonne performance du secteur agricole bonne campagne due à la bonne pluviométrie et aux bonnes performances du secteur minier hausse de la production et des revenus d’exportations de l’or. Ces performances ajoutées à une bonne programmation des dépenses budgétaires financées par les recettes de la privatisation de la compagnie de télécommunications ont contribué à la faible exposition du Mali aux effets négatifs de la crise. Le développement économique et social devrait s’accélérer avec une croissance du PIB prévue à 5 pour cent en 2010.

1. Aperçu de l’économie et du marché du travail