This publiction is part of a series produced by UN Trade and Development (UNCTAD) and designed to document data-driven and evidence-based assessments of gaps and limitations in the development of productive capacities in developing countries, together with proposed intervention strategies.

The publication examines the challenges and opportunities in Kenya's productive capacities to advance structural transformation and economic diversification, as well as the related gaps and necessary policy responses.

Part 1: The National Productive Capacities Gap Assessment (NPCGA)

The NPCGA of Kenya examines the state of the country's national productive capacities and binding constraints to its structural transformation, economic diversification and overall sustainable development.

It uses the Productive Capacities Index (PCI), which relies on eight components: natural capital, human capital, transport, energy, ICT, institutions, private sector and structural change to measure gaps in productive capacities. It then proposes specific, tailored policy interventions to address these challenges.

Part 2: The Holistic Productive Capacities Development Programme (HPCDP)

The HPCDP provides details on how best to address the gaps and limitations and key binding constraints to the country's development through a comprehensive programme.

The HPCDP is tailored to specific domestic circumstances, comparative advantages, and national institutional frameworks and provides strategic orientation and action-oriented, step-by-step approaches to tackle these key binding constraints. 

It is designed to address Kenya's deep-rooted development challenges, as articulated in the NPCGA, by moving away from the practice of short-term, sectoral and fragmented, project-based interventions towards long-term, integrated, and programme-based approaches to development.

This publication is a result of the implementation of the project “Developing integrated programmes to alleviate binding constraints to development by fostering structural transformation, building productive capacities and enhancing investment opportunities and linkages with china”, which is funded by the 2030 Agenda for Sustainable Development Sub- Fund under the United Nations Peace and Development Fund.

Report by the United Nations Conference on Trade & Development