The government has identified the binding constraints whose resolutions will lower the cost of doing business substantially and propel the growth forecast higher;   BIS Review 101/2010  Kenya’s growth diagnostic studies have identified a lack of complementary factors: They include infrastructure gaps and poor private appropriability factors that prevent the private sector to reap full returns to their investment  1  such as: crime, corruption and relics of political instability.
Furthermore, the distortions in the savings and investment decisions of economic agents and in resource allocation resulting from higher inflation became a drag on growth. This was how stagflation of the late 1970s came into being. This unpleasant experience taught us that economic growth could only be sustained with price stability, and price stability should be the goal of monetary policy.