Kenya should redirect more public resources towards infrastructure and other essential public services instead of expanding its role in commercial ventures, Mentoria Economics Chief Economist Ken Gichinga has said, arguing that the country's long-term growth depends on creating an environment where private businesses can invest, innovate and create jobs.
Speaking during a Radio Generation interview on Tuesday, Gichinga said the government should concentrate on providing public goods and services that support economic activity rather than competing with private investors in sectors such as real estate.
"The government's role is to enable a good business environment. The challenge we have in Kenya is that the government wants to do business, and that creates a conflict of interest. Government should provide public goods—justice, law and order, roads, military and border security. Those are things the private sector cannot provide."
He said public infrastructure remains one of the most important tools for attracting investment and expanding economic opportunities, warning that current spending priorities have shifted away from that responsibility.
"For the first time in Kenya, we are spending more money on affordable housing than on building roads. Roads are public infrastructure. Affordable housing, although it has an ecosystem around it, still provides private goods to people. Government has neglected its public infrastructure role and moved into private real estate."
According to Gichinga, governments should focus on creating conditions that allow businesses to thrive rather than directly participating in commercial activities.
"Government should not be running businesses. It should not be running hotels or commercial enterprises. It cannot be the referee and also take the corner kick. Its responsibility is to provide justice, enforce contracts and create an environment where businesses can thrive."
Beyond the debate on public spending, Gichinga pointed to opportunities that could reshape Kenya's economic future, including the country's potential to become a major centre for satellite launches.
He cited recent research indicating that Kenya possesses natural advantages that could make it one of the world's most attractive locations for space launches. These include its position along the Equator, access to the Indian Ocean on its eastern side, a favourable climate and a skilled workforce.
"There is a new research showing Kenya is the best country in the world to launch space satellites. We are on the Equator, where the Earth spins fastest, and we have a large water body to the east. Add our stable climate and strong human capital, and imagine the investment that could come if global companies chose Kenya instead of other launch sites."
He said investment in the space sector would have effects beyond satellite launches by supporting new industries, creating jobs and encouraging innovation across the economy.
Gichinga also called for greater support for small businesses, saying economic transformation does not only come from large-scale industrial projects. He argued that properly organised small enterprises can grow, expand their operations and eventually become major contributors to economic growth.
"Sometimes small is beautiful. If you organise Jua Kali businesses in a sustainable way, they build economies of scale and eventually graduate to the next level. Government's role is to identify each region's competitive advantage and create the conditions for businesses to grow rather than trying to run the businesses itself."
He maintained that Kenya's future prosperity will depend on sustained investment in public infrastructure, policies that support private enterprise and a stronger focus on innovation-driven opportunities capable of generating long-term growth.
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