Private sector openness has kept Kenya ahead of its East African neighbours in the global ranking of change management even as the inflexible state and civil society continue to pull down the country’s overall rating.
The Change Readiness Index (CRI) prepared by consultancy firm KPMG ranks Kenya at position 65 out of the 127 economies surveyed globally. The CRI measures how effectively a government, its private enterprises and civil society anticipate and prepare for shocks, opportunities and risks.
Kenya’s 2015 overall score represents a massive decline of 28 positions from the 2013 performance when the country ranked at number 37.
KPMG ranks Kenya enterprise’s ability to respond to change at the 47th position globally while the civil society and government responsiveness are listed as number 65 and 84 respectively.
Rwanda is East Africa’s second most responsive state to change at position 69, Uganda third at position 74, Tanzania fourth at 78 while Burundi is ranked number 125, the third worst economy after Chad and Guinea.
In terms of economic diversification and economic openness, Kenya is however ranked roughly the same as Uganda.
Some of the changes assessed by CRI include risks such as technology, competition, changes in government financial, natural disasters and social instability shocks and opportunities of political and economic nature.
Cambodia ranked 50th, leading other low income countries in the overall table.
The country was placed 34 in the enterprise pillar, 4th in the economic diversification sub index and first in the informal sector index.
Mozambique, Rwanda, Uganda, Cambodia and Tanzania are some of the top countries with higher than expected change readiness scores based on Gross National Income.
Also featuring closely in this category are Philippines, Ethiopia, Somalia and Kenya.
Insights obtained from the CRI show that high income inequality is linked to low readiness while inclusive growth is strongly correlated with change readiness.