Ideation Stage; Voices That Shaped the Kenyan Private Sector.
1. DR. MANU CHANDARIA.
It had been an electric election for a nation yearning to believe in something or someone again. Mwai Kibaki was sworn in as the 3rd President of the Republic of Kenya. As he bathed in the adulation of thousands of people gathered at Uhuru Park, Kibaki touched on the issues that had propelled him to the presidency. It was a time when Kenya had a -2 percent growth rate, poverty was rampant, and insecurity and unemployment were at an all-time low.
By 2001, Kenya’s economy had steadily declined over three decades since independence. Despite the recession and the oil commodity shocks during the period (1962–74), the economic growth rate averaged 6.6 percent, which was then above the average for low-income countries. This initial growth, however, was not sustained. Consequently, the rate of economic growth declined steadily in subsequent years to reach a low of 1.9 percent in the period 1990 to 2001.
Poverty was mainly a rural problem in a country where 80 percent of the population lived in rural areas, and two-thirds of them were largely dependent on agriculture for a living. Geographical remoteness, seasonality, periodic health crises, and natural disasters worsened the situation of the rural poor.
In 2003, while the inauguration of a new government appeared to signal that there would be a turn for the better, economic growth remained lame at only 1.4 percent. Growth had been similarly low in 2002 at 1.1 percent. The poor growth performance in 2002 and 2003 was accompanied by deteriorating economic fundamentals, including a huge domestic debt, a worsening fiscal deficit, and rising inflation.
Kenyans were ripe for change.
Kibaki assured Kenyans that his government would embark on policies geared towards economic reconstruction, employment creation, and immediate rehabilitation of the collapsed infrastructure. However, it was the climax of his speech that was the highlight for businessmen and women in the country: “My government will closely work with the private sector and with our external partners,” Kibaki said.
Kibaki’s administration kept true to their word. As soon as he was sworn in, he convened the Economic Recovery Strategy meeting in Mombasa. This was a result-based meeting that prioritized government actions toward meeting the Medium Term Plan of the Economic Recovery Strategy for Wealth and Employment Creation (ERS). In attendance were cabinet ministers, private sector members, NGOs, and ordinary Kenyans. In total, 500 people were present.
At the heart of this meeting was a man with fortitude and insight, whose character would determine the fate of private sector unity. That man was Dr. Manu Chandaria.
Awarded the Most Respected CEO in East Africa for three consecutive years — in a survey done by Nation Media Group and Price Water House Coopers, before the formation of KEPSA, Chandaria was an undisputed champion in the business world. He earned all this as the Chairman and CEO of COMCRAFT, an industrial conglomerate with interests in aluminum, steel, plastics, and information technology.
