Productivity is Kenya’s real edge, we must build on it

This story has significance for readers across Kenya and beyond.

The debate over why nations prosper has never been so real. Jared Diamond argues geography shapes destiny, but Daron Acemoglu and James Robinson argue institutions matter more. Kenya sits unusually close to the middle of that argument.

Mombasa and Lamu give Kenya two deep-water ports serving nearly 500 million people, the largest concentration of consumers between Cairo and Cape Town, with Nairobi chairing Comesa. No other country in the region combines that maritime capacity, a market of that size and that degree of institutional weight. Kenya inherited a geography few countries can match, and a people as industrious as the Chinese.

Lee Kuan Yew inherited no such advantage. Singapore was expelled from the Malaysian federation in 1965 with no hinterland, no resources and no obvious reason to survive as an independent state. Yet within a generation it became Southeast Asia’s reference point. Growth in Malaysia, Indonesia and Thailand accelerated in Singapore’s shadow. Mahathir Mohamad asked how the lawns around Singapore’s Istana remained so green, then set about greening Kuala Lumpur. Suharto greened Jakarta, Ferdinand Marcos greened Manila, Thanin Kraivichien greened Bangkok, each competing to build a cleaner capital. Good governance proved contagious.

In 1977, Lee committed his government to a 10-year, coordinated cleanup of the Singapore River. The project cost S$200 million and relocated 46,000 squatters into public housing. It finished on schedule in 1987. Fish returned, and the river became the centrepiece of Singapore’s waterfront rather than its sewer. Nairobi River has cycled through three failed clean-up attempts since the 1990s and is midway through a fourth, a Sh45 billion programme launched in 2024 and expected to conclude in 2027.

Singapore of Africa

Kenya’s neighbours are demonstrating that transformation is possible. Addis Ababa’s Corridor Development Project has delivered walkways, cycle lanes and 22 kilometres of riverside parkland in four years, despite a currency devaluation and a civil war. Kigali has retained its reputation as Africa’s cleanest city through a plastic bag ban introduced in 2008 and the civic clean-up, Umuganda, that has reshaped public behaviour. Tour operators now market Kigali as the “Singapore of Africa”.

Capital, meanwhile, continues to flow into the country. Aliko Dangote, Africa’s richest man, selected Lamu ahead of Tanzania’s Tanga and Kenya’s Mombasa for a $17 billion, 700,000-barrel-per-day refinery to supply the region. Kenya’s challenge now is moving infrastructure projects from announcement to execution.

What determines whether Kenya becomes rich is the third ingredient Robert Solow identified 70 years ago: total factor productivity—the efficiency with which an economy combines its labour and capital. Studying Japan’s post-war recovery, Yew became convinced that productivity, rather than resources, explained why some countries surged ahead while others stagnated.

One conversation reinforced that belief. Nobuo Hizaki, a Japanese managing director, estimated that Singaporean workers would eventually operate at about 70 per cent of Japanese productivity. His explanation was cultural—Japanese workers covered for colleagues facing emergencies, while Singaporeans, inheriting Britain’s division of labour, confined themselves to defined responsibilities. Yew later wrote that Japanese workers fitted together like Lego bricks. He spent the next three decades closing that gap through continuous training, management reform and reshaping workplace culture.

The lesson was simple: productivity is neither genetic nor accidental. It can be taught, measured and institutionalised. Kenya faces the opposite challenge. Formal employment accounts for about 15 per cent of all jobs, real wages have stagnated and the World Bank estimates that opening some of the country’s most protected sectors could add one percentage point to long-term economic growth.

National productivity

Singapore treated that transformation as policy, establishing the National Productivity Board in 1972. One of its advisers, Kohei Goshi of the Japan Productivity Center, described productivity as a marathon with no finishing line. In 1980, Japan’s Ministry of International Trade and Industry studied Singapore and concluded that its location positioned it to become Southeast Asia’s centre for knowledge and information after Tokyo, but its people must be reliable and trustworthy.

Nairobi already markets itself as East Africa’s commercial and technology hub, the Silicon Savannah. Yet, Kenya has never built its productivity marathon, an institution dedicated to improving how people work, solve problems and build trust in the quality of what they produce. Kenya needs that kind of institution: a national productivity board that treats human capital as infrastructure. That means sustained investment in science, engineering and technical education, alongside changing workplace culture.

Lee admired Japan because its manufacturers pursued what he called near-zero defect production. Kenya’s industrial future will be judged by the same standard. Can Kenyan businesses produce goods and services that compete with a global standard?

What will determine whether Kenya finally joins the ranks of developed economies is whether it can produce more value from the same worker, the same technology and the same hour. Productivity is the discipline that turns geography into prosperity. Until Kenya builds that discipline deliberately, it will continue watching its neighbours with fewer advantages move ahead.

The writer is a whistleblower, strategy consultant, and a startup mentor. www.nelsonamenya.com

Reporting originally appeared via Nation Africa. Read the full source for additional context.