P. 1
Republic of Kenya Proj

Republic of Kenya Proj

|Views: 14|Likes:

More info:

Published by: Kimberley Allison Fernandez on Feb 25, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

02/25/2012

pdf

text

original

Kenya’s economic performance since independence

In 2006 Kenya’s GDP was about US$17.39 billion. Per capita GDP averages somewhat more
than US$450 annually. Adjusted in purchasing power parity (PPP) terms, per capita GDP in
2006 was about US$1,200. The country’s real GDP growth picked up to 2.3 percent in early
2004 and to nearly 6 percent in 2005 and 2006, compared with a sluggish 1.4 percent in 2003
and throughout President Daniel arap Moi’s last term (1997–2002). Real GDP is expected to
continue to improve, largely because of expansions in tourism, telecommunications, transport,
and construction and a recovery in agriculture. The Kenya Central Bank forecast for 2007 is
between 5 and 6 percent GDP growth. GDP composition by sector, according to 2004 estimates,
was as follows: agriculture, 25.7 percent; manufacturing, 14.0 percent; trade, restaurants, and
hotels, 13.8 percent; transport and communications, 6.9 percent; government services, 15.6
percent; and other, 24.0 percent.

Kenya's 2010 Economic Performance and Outlook for 2011: In 2010, Kenya has seen the
return of higher growth projected at 4.9 percent, and may now be at a tipping point for robust
growth. Five factors are creating a positive momentum: the new constitution, EAC integration,
ICT innovations, strong macroeconomic management, and recent investments in infrastructure.
Services, the driver of previous years' growth, have moderated while agriculture and industry are
rebounding after two weak years. ICT has been the main driver of Kenya's economic growth
over the last decade, growing on average by 20 percent annually, and propelling the combined
transport and communications sector into the economy's second largest (after agriculture). Since
2000, Kenya's economy grew at an average of 3.7 percent. Without ICT, growth in 2010 would
have been a lackluster 2.8 percent—similar to the population growth rate—and income per
capita would have stagnated. Over the last three decades Kenya has experienced only two short
episodes when economic growth exceeded five percent and was sustained for at least three
consecutive years: 1986-88 and 2004-2007. Economic growth in 2011-12 could range between
5.3 and 6.0 percent if no shocks occur. Public sector investments in infrastructure will help to
stimulate this growth. However, the timely implementation of the constitutional reforms would
also be necessary to help boost business confidence.

CONTRIBUTION OF KEY SECTORS TO GDP GROWTH

SECTOR

2009/10 (%)2010/11 (%)CHANGE (%)

Agriculture

-22.1

24.5

46.6

Manufacturing

4.7

7.8

3.1

Construction

15.1

2.9

-12.2

Wholesale & retail trade

14.9

14.4

-0.5

Hotel & restaurants

15.9

1.0

-14.9

Transport &communications

28.9

13.0

-15.9

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->