Reliable energy supply, prudent debt management and far-reaching governance reforms are the critical changes Kenya must undertake to achieve First World status, Head of Public Service Felix Koskei has said.
Speaking on the country’s long-term development trajectory, Koskei said Kenya’s transition from a developing economy to a developed one will depend on deep structural reforms that boost productivity, strengthen institutions and create a stable environment for investment.
Koskei noted that affordable and reliable energy is foundational to industrial growth, arguing that no country has attained developed status without a strong and dependable power sector.
He said Kenya’s ongoing investments in green energy—including geothermal, wind and solar—place the country in a strong position to power manufacturing, agro-processing and digital industries while keeping production costs competitive.
On public finances, the Head of Public Service emphasized the need for disciplined debt management to safeguard economic stability.
"Kenya’s "First World" ambition requires a heightened management of public debt and fiscal pressure. Debt Sustainability: Moving away from expensive commercial loans toward sustainable financing to prevent "debt distress" that chokes off growth. Tax Base Expansion: Increasing domestic revenue mobilization fairly without stifling the private sector or the "hustler" (informal) economy," said Koskei.Governance reforms were cited as the third pillar of Kenya’s First World ambition. Koskei said strengthening institutional integrity, tackling corruption and upholding the rule of law are necessary to restore investor confidence and ensure efficient use of public resources.
He added that consistent enforcement of contracts and protection of property rights would help attract long-term investment and support industrial expansion.
Beyond the three pillars, Koskei said Kenya must continue shifting from an economy that exports raw materials to one that adds value locally. He pointed to the need to expand manufacturing, promote agro-processing and leverage the country’s strong ICT sector to grow high-value services.
"Kenya currently relies heavily on agricultural exports like tea, coffee, and flowers. To reach developed status, it must move up the value chain," he noted.He also called for national unity and political stability, urging Kenyans to move beyond ethnic-based politics and rally behind shared development goals. According to Koskei, sustained policy continuity and collective support for reforms will determine how quickly Kenya can close the gap with developed economies.
The government’s development agenda, anchored under the Bottom-Up Economic Transformation Agenda (BETA), is designed to align reforms in energy, debt management and governance with broader efforts to grow productivity and create jobs.
A skilled workforce was also identified as central to Kenya’s First World ambition. The focus is increasingly on science, technology, engineering and mathematics (STEM) education to support high-tech and high-productivity industries.
Expansion of Technical and Vocational Education and Training (TVET) is expected to bridge skills gaps and improve youth employability in modern sectors. There are also calls to significantly increase funding for research and development, from the current levels of under one per cent of GDP toward the 2–3 per cent common in developed economies.