Kwale county: The Chairman of the Economic Society of Kenya (ESK), Dr. Ulwodi Dustone, has called on policymakers and economists to focus Kenya's development agenda on strong institutions that enhance sustainability, inclusion, and trust in governance. His remarks came during the Second Annual National Conference of Economists 2025, held at Diani Reef Beach Resort and Spa.
According to Kenya News Agency, Dr. Dustone emphasized that the future of Kenya's economy hinges not just on natural resources or demographics, but on the country's capacity to establish and maintain effective institutions. He highlighted that markets are part of a larger framework comprising rules, norms, organizations, and governance systems, which can either aid or impede development. Dr. Dustone described institutions as the 'rules of the game', with citizens and organizations acting as the 'players'.
While acknowledging the significant progress Kenya has made through institutional reforms over the past decades, Dr. Dustone noted ongoing challenges such as weak enforcement, economic informality, and short-term policy thinking that continue to obstruct further advancement. He stressed that Kenya's vision for the future must be built on institutions that promote sustainability, which involves embedding long-term planning into economic governance, beyond just environmental stewardship.
The ESK Chairman also highlighted the necessity of inclusion, stating that economic growth does not inherently lead to shared prosperity. He called for the establishment of institutions that widen access to education, protect property rights for women and marginalized groups, and ensure fair taxation. Dr. Dustone warned that without uniform application and enforcement of rules, economic growth could exclude some segments of the population.
Moreover, Dr. Dustone emphasized the importance of public trust in institutions for Kenya's economic success. He argued that when citizens perceive justice as impartial, contracts as enforceable, and public resources as well-managed, they are more inclined to invest, innovate, and engage productively in the economy.
Economists were encouraged to adopt institutional economics as a practical framework for policy-making, aligning with this year's conference theme, 'The Kenya We Want: Achieving Sustainable Development for Inclusive Prosperity.' Dr. Dustone concluded by stating that Kenya's prosperity should be enduring, inclusive, and sustainable, underscoring the need to nurture institutions that drive innovation, manage risk, and balance efficiency with equity, while considering both present and future aspirations.