5. Leveraging Innovation, Technology and Diversification as Strategic Business Responses to Economic Challenges in Kenya: A Review

Abstract

Kenya, a nation possessing great potential, finds itself embroiled in a complex economic landscape. While strides have been made in recent years, persistent challenges cast a long shadow, threatening to dim the prospects of countless households, individuals and businesses. Unemployment persists, casting a net of uncertainty over countless aspirations. Poverty tightens its grip on many, hindering upward mobility and perpetuating inequalities. The specter of economic stagnation looms, threatening to dampen the national spirit and limit opportunities for all. Yet, amidst these formidable challenges, there lies a ray of hope. Strategic businesses are recognizing the limitations of traditional approaches, and are weaving a new tapestry of strategic responses by adopting three impactful threads: innovation, technology, and diversification. This paper reviews the potential of leveraging innovation, technology, and diversification as strategic business responses to economic challenges in Kenya. The review aims at exploring the link between innovation, technology, and economic diversification, culminating in the provision of recommendations for leveraging these strategies to address the economic challenges in Kenya. The review on relevant evidences indicates that, in today's increasingly interconnected and fast-paced world, innovation and technological oriented business strategies have emerged as key drivers of economic growth, fostering job creation, competitiveness, and sustainable development. Additionally, economic diversification has proven to be a key element of economic development in which a country moves to a more diverse production and trade structure. On the other hand, effective leveraging of science, technology and innovation are essential ingredients for wealth creation in all nations. Technology and innovation is also a key component of social integration, sustainable development and poverty eradication based on equity, freedom, justice, governance, peace and prosperity. The review therefore provides valuable insights and support for the findings and recommendations for leveraging these strategies to address the economic challenges in Kenya.