Republic of Kenya

Jamhuri ya Kenya

THE CONTINENT OF AFRICA

SUMMARY
Kenya officially known as the Republic of Kenya is a country in East Africa that lies on the equator. With the Indian to its south-east, it is bordered by Tanzania to the south, Uganda to the west, South Sudan to the north-west, Ethiopia to the north and Somalia to the north-east. Kenya has a land area of 580,000 km2 and a population of nearly 41 million, representing 42 different people and cultures. The country is named after Mount Kenya, a significant landmark and second among Africa's highest mountain peaks. Following a referendum and adoption of a new constitution in August 2010, Kenya is now divided into 47 counties that are semi-autonomous units of governance. These units are expected to be fully implemented by August 2012 – in time for the first general election under the new constitution. The counties will be governed by elected governors and will operate independent of the central government in Nairobi. The country's geography is as diverse as its multi-ethnic population. It has a warm and humid climate along its coastline on the Indian Ocean which changes to wildliferich savannah grasslands moving inland towards the capital Nairobi. Nairobi has a cool climate that gets colder approaching Mount Kenya, which has three permanently snow-capped peaks. The warm and humid tropical climate reappears further inland towards Lake Victoria, before giving way to temperate forested and hilly areas in the western region. The North Eastern regions along the border with Somalia and Ethiopia are arid and semi-arid areas with neardesert landscapes. The country also has significant geothermal activity that puts a lot of electricity in the national grid. Kenya's capital city, Nairobi, is situated next to a national park. The country is famous for its safaris and diverse world-famous wildlife reserves such as Tsavo National Park, the Maasai Mara, Nakuru National Park, and Aberdares National Park that attract tourists from all over the world. Lake Victoria, the world's second largest fresh-water lake (after Lake Superior in the US and Canada) and the world's largest tropical lake, is situated to the southwest and is shared with Uganda and Tanzania. As part of East Africa, Kenya has seen human habitation since the Lower Paleolithic period. The Bantu expansion reached the area by the first millennium AD, and the borders of the modern

is a regional commercial hub. but European exploration of the interior began only in the 19th century.state comprise the crossroads of the Niger-Congo. The British Empire established the Protectorate in 1895. European and Arab presence in Mombasa dates to the Early Modern period. and Asiatic linguistic areas of Africa. making Kenya a truly multi-cultural state. Nairobi. . The economy of Kenya is the largest by GDP in East and Central Africa. Kenya is a member of the East African Community. The service industry is a major economic driver. mostly the telecommunications sector. and more recently fresh flowers to Europe. Agriculture is a major employer and the country traditionally exports tea and coffee. The capital. Nilo-Saharan. The independent Republic of Kenya was founded in December 1963. known from 1920 as the Kenya Colony. and contributes 62 percent of GDP.

16 billion (2010) at Market Price. horticultural products. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. wheat. meat and meat products.1%. hides and skins.03 billion (Purchasing Power Parity. n petroleum products. hides. cement.8%. pyrethrum. beer. sugarcane. $ 66.Titanium. soft drinks. grain and sugar milling. sisal.Economic summary $32.2%. 5. corn. vehicle assembly. Coal tea.8%. pyrethrum. dairy products.8% (2005): 2006 = 6.2% Per Capita Income (PPP)= $1. land (5% arable). coffee.1% : Estimate for 2007 = 7. cement. rice. coffee.3% (2010)[68] Major markets (2010) .22 billio tea. soda ash. sisal. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures.7%. skins petroleum products. textiles. UK 8. fluorspar Uganda 10. pineapples. Netherlands 8. Egypt 4.600 Wildlife. Tanzania 9. US 5.8%. horticultural products. paper and light manufacturing. Democratic Republic of the Congo 4.

Saudi Arabia 6. India 13.4%. UAE 9.Imports $11. n petroleum products. iron and steel.2 billio machinery and transportation equipment.7% (2010) iers .6%. resins and plastics Major suppl China 13.7%.8%. motor vehicles.4%. South Africa 8. Japan 4.

the geography of Kenya also includes its numerous forests also. . Kenya is located on the eastern part of the African continent. Somalia lies to the east of the country while Indian Ocean borders the country in the southeastern part. One can find a large number of swamps in the Loraine Plain. At 580. and longitudes 34° and 42°E. In general one can say. There are a large number of rivers also in Kenya. found in the northeastern part of the country. Apart from this. the other mountain ranges that one can find over here include Mount Elgon and Mount Kilimanjaro. flows across the country before draining into Lake Victoria. Apart from these. The terrain of the country gradually changes from the low-lying coastal plains to the Kenyan highlands.GEOGRAPHICAL LOCATION The Geography of Kenya gives one a complete idea about the location of the country and its physical features. The country is bordered by Sudan and Ethiopia in the north and Uganda to the west. that the country stretches from the sea level in the east to the snow capped mountain in the north.367 km2 (224. Some of the major forest areas of the country include the Kakamega Forest and the Mau Forest. On the western part of the country one can find Lake Victoria. To the southwest of the country lies Tanzania while to the west lies Lake Victoria and Uganda. The highlands have a cool climate and are known for their fertile soil. The highest point of the country lies in Mount Kenya. It has a coral reef and is supported by a dry coastal plain that is covered by thorny bushes and savanna. It is one of the major agricultural regions of the country. It lies between latitudes 5°N and 5°S. To the east one can find a large number of rainforests. Another major river of the county is the Ewaso Ngiro. One can find a large number of lakes and rivers in this country. situated in the northeastern part of the country. The valley basically dissects the Kenyan highlands into east and west. Yala and Gori.199 meters high.081 sq mi). Kenya is the world's forty-seventh largest country. The biggest feature of Kenya is the Great Rift Valley located in the central and western part of the country. Other major lakes of the country include Lake Naivasha and Lake Nakuru. the regions of the country are mostly arid and of semi desert nature. The Kenyan coast is a low-lying area. On the northern part of the country one can find Lake Turkana. The rivers Tana and Athi flows in the southeastern part of the country while Nzoia. In general. which is extremely fertile. which forms a major part of the geography of Kenya. which is 5.

Nairobi Province was not divided into "districts" until 2007. and Coca Cola. During Kenya's colonial period. General Motors. Several foreign companies have factories based in and around the city. The Nairobi Stock Exchange (NSE) is one of the largest in Africa and the second oldest exchange on the continent. Nairobi was renamed a County. along with the new constitution. The city and its surrounding area also forms the Nairobi County. . Nairobi City Council. Nairobi is the most populous city in East Africa. including the population of its suburbs. one of Africa's largest. the city became a centre for the colony's coffee. These include Goodyear. It is ranked 4th in terms of trading volume and capable of making 10 million trades a day. Young & Rubicam. The United Nations Office at Nairobi hosts UNEP and UN-Habitat headquarters. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi. Home to thousands of Kenyan businesses and over 100 major international companies and organisations. Nairobi is an established hub for business and culture. Nairobi is currently the 12th largest city in Africa. Founded in 1899 as a simple rail depot on the railway linking Mombasa to Uganda. Google. The county is entirely urban. Nairobi is the regional headquarters of several international companies and organizations. The Nairobi province differs in several ways from other Kenyan regions. Nairobi is home to the Nairobi Stock Exchange (NSE). The City of Nairobi enjoys the status of a full administrative County/Region. It has only one local authority. In 2007. including the United Nations Environment Programme (UNEP) and the main coordinating and headquarters for the UN in Africa & Middle East. the United Nations Office in Nairobi (UNON). tea and sisal industry. the town quickly grew to become the capital of British East Africa in 1907 and eventually the capital of a free Kenyan republic in 1963. when three districts were created. with a current estimated population of about 3 million. However. which translates to "the place of cool waters". In 2010. Nairobi is also the capital of the Nairobi Province and of the Nairobi District. CocaCola.THE CAPITAL CITY . it is popularly known as the "Green City in the Sun" and is surrounded by several expanding villa suburbs.NAIROBI Nairobi is the capital and largest city of Kenya. Airtel and Cisco Systems relocated their African headquarters to the city. Toyota Motors. Nairobi is now one of the most prominent cities in Africa politically and financially. The NSE was officially recognized as an overseas stock exchange by the London Stock Exchange in 1953. General Electric.

who have played a key role in the local economy. is home to Kibera. Major cities in Kenya include: City Nairobi Mombasa Nakuru Kisumu Meru Nyeri Machakos Eldoret Population 3 375 000 966 000 337 200 273 400 273 000 179 500 140 900 100.9 million to 40 million over the last century. indigenous beliefs 1. ETHNIC GROUPS Kenya's rising urban population has a diverse ethnic background whose people are variedly fluent in their mother tongues and the two official languages – English and Swahili. The UNHCR base in Dadaab in the north also currently houses around 500.000). In addition. one of the world's largest slums. Sizeable minorities of other faiths do exist (Muslim 11.000 and 1 million locals. The upper part of Eastern Province is home to 10 percent of the country's Muslims. comprising 50 percent of the total population there. Western areas of Coast Province are mostly Christian.7% regarding themselves as Protestant and 23.5% as Roman Catholic. where they constitute the majority religious group. In addition.000 RELIGION The vast majority of Kenyans are Christian (83%).POPULATION Kenya has a young population.2%. Sixty percent of the Muslim population lives in Coast Province. The shanty town is believed to house between 170. Semi-urban . with 47. There is also a small group of Baha'is.7%). Nairobi. due to rapid population growth from 2. with 73% of residents aged below 30 years.000 people. there is a large Hindu population in Kenya (around 50. Kenya's capital.

including the Masai Mara. The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion. where Blue Wildebeest and other bovid participate in a large scale annual migration. A significant population of other wild animals. rhinoceros and elephant. reptiles and birds can be found in the national parks and game reserves in the . buffalo. Up to 250. European and Arab) Percentage 22% 14% 13% 12% 11% 6% 6% 15% 1% Kikuyu woman in traditional attire WILDLIFE Ke nya has considerable land area devoted to wildlife habitats. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. leopard.and rural populations are less multilingual with many in remote villages speaking only their mother tongue.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season.

11.5 million of these ungulates migrate a distance of 1.800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya. in a constant clockwise fashion.country. Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration. The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part. . searching for food and water supplies.

30 Celsius to a minimum of 22. the central of the country experiences a cool and humid climate while the northern and eastern part of the country enjoys a hot and dry climate. Most of the rains occur between April and July. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. It is one of the most spectacular events of the country.CLIMATE As Kenya has a diverse geography. Summers are extremely hot over here and one is expected to wear light summer clothes. while Eldoret has a maximum temperature of 23.20 Celsius maximum and 13. The period ranging from June to September represent the migration period of the wildlife found in the country. Apart from the coastal areas. Kenya receives a lot of sunshine all around the year. The long rainy season occurs from April to July. Generally speaking. The climate is also humid in the Lake Victoria basin. its climate and weather conditions are also varied.40 Celsius. the regions in this area are of semi-desert and arid character. Because of this reason. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. Kenya basically enjoys a tropical climate. February and March are the hottest months of the country while July and August are the cooler months. Rainfall is high in the coastal regions of the country. .60 Celsius minimum. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin.60 Celsius and a minimum temperature of 9. The early hours of the morning are also cool and pleasant. the country has a dry climate.50 Celsius. Rainfall is more on the eastern coast of the country. while the shorter one occurs from October to December. Nairobi. while the nights are cooler and comfortable. The coastal side of the country has a hot and humid climate. The temperature in the coastal town of Mombasa ranges from a maximum of 30. the capital of the country has a temperature of 25. During the daytime the weather is hot.

Maternal mortality is high. The total fertility rate in Kenya is estimated to be 4. . Other than the public schools. secondary and college. Secondary and tertiary education enrollment has not increased proportionally because payment is still required for attendance. pupils sit the Kenya Certificate of Primary Education (KCPE). which determines those proceeding to the universities. there is a national examination at the end of Form Four – the Kenya Certificate of Secondary Education (KCSE). Kenya's education system consists of early childhood education. At the end of primary education. In 2007 the government issued a statement declaring that from 2008. Too many women and children still die at birth or within the first year of life. Preventable diseases such as malaria. primary. secondary education would be heavily subsidized. This practice is however on the decline as the country becomes more modernised and the practice was also banned in the country in 2011. More die before their 5th birthday. Weak policies.49 children per woman in 2012. diarrhea and malnutrition are the major child killers and responsible for much morbidity. there are a number of international schools catering for various overseas educational systems.HEALTH Despite major achievements in the health sector. primary school enrollment increased by about 70%. Kenya still faces many challenges. with the government footing all tuition fees. Private schooling also exists in Kenya. The Joint Admission Board (JAB) is responsible for selecting students joining the public universities. For those who proceed to secondary level. As a result. In January 2003. There are a large number of HIV-positive people in Kenya. partly because of female genital mutilation. there are many private schools in the country. EDUCATION The country's literacy level stands at 85% of the whole population. the Government of Kenya announced the introduction of free primary education. Similarly. which determines those who proceed to secondary school or vocational training. HIV/AIDS. mainly in urban areas. inadequate health workers. other professional training or employment. Life expectancy is estimated at between 47 and 55 years. weak management and poor leadership in most public health facilities are largely to blame. pneumonia.

However. art. The Maasai culture. were responsible for creating and spreading this culture. dance and music. the culture of the country has a strong European and Arabian influence. The Swahili Culture is the oldest culture of the country. traditions. Nairobi. was spread by the Maasai. there are a large number of other tribes like the Kikuyu. on the other hand they have also adopted the cultural patterns of modern society. inspite of such strong foreign influence. music and dance. . which adds to the unique culture of the country and its people. The main culture of the country is the Swahili Culture and the Maasai culture. Apart from this. society. Culture of Kenya is a mix of both modern and traditional cultures. Owing to its colonial history. is the seat of the country's culture. Gusii. The Bantu language speakers. and Luo. Kenya culture is extremely unique and has an identity of its own. Where on one hand the different tribes of the country have maintained their unique style of clothing. jewellery and distinct custom. a semi-nomadic tribe known for their clothes. their customs. who have their own distinct culture.CULTURE Culture in Kenya is a mix of diverse cultures and traditions. Culture of Kenyais amply reflected through its people. the capital of the country. Kamba. who settled on the coastal part of the country. Luhya. which is the most well known culture of the country.

000 m steeplechase. Infact. 10. necklaces.000 m and the marathon. Football. Cricket is another popular and the most successful team sport. It is extremely colorful and are heavily embroidered. earrings. Road running and athletics are also popular. Kenya won several medals during the Beijing Olympics. But the country is known chiefly for its dominance in Middledistance and long-distance athletics. This has led to a suspension by FIFA which was lifted in March.500 m. which include afro-fusion music. Kenyan hip-hop and different types of folk music and tribal music. 3. it is home to different varieties of music. in addition to multiple types of folk music based on the variety over 40 regional languages. Guitars and drums are the popular instruments used in Kenyan music. commonly acknowledged as one of the toughest rallies . anklets and others. five silver and four bronze. nose rings. 1. cricket and boxing are the most popular sports played in the country. In the motor rallying arena. Kenyan people are sports lovers. Jewelry is made from colorful beads and other articled and consists of headgears. Kenya is home to the world famous Safari Rally. Kenya has a diverse assortment of popular music forms. especially in 800 m. with both the clubs and the national team winning various continental championships in the past decade. The clothes are usually red and black in color to show their love for mother Earth. Kenya has consistently produced Olympic and Commonwealth Games champions in various distance events. Kenya has competed in the Cricket World Cup since 1996. armlets. They participated in the ICC Cricket World Cup 2011. Benga music. rugby. Kenya was a regional power in soccer but its dominance has been eroded by wrangles within the Kenya Football Federation. Kenya has been a dominant force in women's volleyball within Africa.The clothing is unique.000 m. making it Africa's most successful nation in the 2008 Olympics. The country has also made valuable contributions in the field of film and theatre. five gold. 2007. The people also love to wear heavy jewelry. 5. A large number of film festivals and theatre festivals are held in this country.

ENTERTAINMENT Kenya entertainment includes several activities that can make the stay at the place memorable. national and local . which provide complete entertainment to both the local people and the tourists. Many concerts are also held in Kenya. films and newspapers. but is also spread to the various other regions in Kenya. Kenya Entertainment in not only restricted to the capital city of the country. Culture of Kenya is a conglomeration of diverse cultures belonging to the different tribal groups and the people of the country. television. there are also other entertainment sources in Kenya. Apart from the various nightclubs and casinos. There are many nightclubs. discos. The nightclubs and hotels of Kenya generally organize live music bands during evening and night. The clubs and hotels are busier during the weekends. Many people gather in these places to get a flavor of live band music. Numerous television channels broadcast myriad programs that cater to various types of people in the country. These include various media sources like radio. The Kenya Broadcasting Corporation provides various radio networks at the regional. The disc jockeys churn out lively and catchy music for the visitors. Nightlife in Kenya is also highly active with various nightlife entertainment facilities for the tourists. especially during the festive season in the country. Kenya is a country that offers numerous attractions to the tourists. There are innumerable choices to be made regarding the various sources of entertainment in Kenya. Some of the popular channels are as follows: • • • • • • • Nation TV Kenya Television Network Stella TV Kenya Broadcasting Corporation Metro TV Family TV Citizen TV Radio in Kenya is also an important source that provides entertainment to the people.in the world. bars and pubs in Nairobi as well as in Mombasa. There are also tribal and traditional dances and songs that are hosted and organized in various halls of the country.

The Kenyan newspapers cover topics related to politics. KBC English Radio Service and KBC Kiswahili Radio Service are the two radio stations that operate under the National Radio Network in Kenya. regional news. The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal. Films are a major source of entertainment in the country. entertainment and many more. . sports.level. Some of the renowned newspapers that are published and circulated in Kenya are as follows: • • • • Kenya Times Standard Kenya East African Standard Kenya Daily Nation Kenya Last but not the least is Kenya films. Many internationally renowned films have been made in Kenya. The FM channels that are broadcasted on Kenya radio include: • • • Kiss FM Kenya Capital FM Kameme FM Newspapers are a source of entertainment as well as information in the country.

In total. the current state of most roads is deplorable. the busiest airport in Africa. the Kenyan government recently launched the ambitious 'Roads 2000' project. only 8. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. including 21 that are paved. the largest is Nairobi's Jomo Kenyatta International Airport.). warehousing. The project. which serves more than 30 airlines providing scheduled services to cities around the world. which runs from Mombasa through Nairobi to the Ugandan border. As a result of heavy operational losses. is the country's main seaport and serves most East and Central African nations.800 kilometers of highway. the KR would lease locomotives to private-sector operators. designed to create links between all major and minor roads. Kenya's port of Mombasa. In the same year.868 kilometers are paved (1996 est. Of the total 63.INFRASTRUCTURE Kenya has an extensive road network of approximately 95. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. Kenya has 230 airports. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. offers specialized facilities. while the government has made plans to open up the railways to private-sector participation by limiting the KR's role to owning and regulating lines. in addition to rehabilitating 20. for example. In 1999.000 miles connecting most parts of the country. There are 3 international airports. boasting 21 berths. and container terminal. is expected to cost US$245 million. Department of State Country Commercial Guide 2000 .000 kilometers of roads in 6 urban centers. which will span approximately 3 years. The international and domestic air transport infrastructure is relatively well-developed in Kenya. The deepwater port. including cold storage. handles light aircraft and general aviation. there has been a steady deterioration in the KR's services. In collaboration with various donors. the state-owned . which has an annual average freight throughput of about 8. Accordingly. Wilson airport in Nairobi. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country.S.1 million tons. however. According to the U.

In 1998. or approximately 9. the government is eager to further develop both thermal and geothermal sources of power. Safaricom. there were 290. Two international companies were licensed at the beginning of 1997 to respectively produce 43 MW of power from a thermal plant in Mombasa and 45.74 percent of the power supply comes from hydroelectricity. The United States. Since 82. total electricity production in Kenya equaled 4. Further adding to the problem. power outages and blackouts have become increasingly common as a result of chronic drought.5 MW from a diesel plant in Nairobi. a development that forced the KPLC to introduce an emergency rationing program in July 2000 under which electricity supplies have been cut off for 12 hours a day. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). Kencell.23 billion kWh.000 people.000 main telephone lines in use. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. Only 8 percent of the Kenyan population is connected to the national grid. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. a joint venture between Vivendi France and Sameer of Kenya. In 1999-2000. hydro equipment tends to be outdated and poorly maintained. Kenya experienced its worst drought in 40 years. Consequently. boasted 640 phone lines per 1. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. and Postal Corporation of Kenya. . a postal services corporation. in comparison.000 people in 1996. As of 1998.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. a telecommunication corporation.9 telephone lines per 1.

Eastern 5. A few of these promises have been met ADMINISTRATIVE REGIONS The provinces are: 1. Legislative power is vested in both the government and the National Assembly. Kibaki Kenya has maintained remarkable stability despite changes in its political system and crises in neighboring countries. and of a multi-party system. Kenyans held democratic and open elections. which had ruled the country since independence to the National Rainbow Coalition (NARC). Central 2. Nairobi 6. The Judiciary is independent of the executive and President Mwai the legislature. a coalition of political parties. North Eastern 7. whereby the President is both the head of state and head of government. Executive power is exercised by the government. Nyanza 8. most of which were judged free and fair by international observers. The 2002 elections marked an important turning point in Kenya's democratic evolution in that power was transferred peacefully from the Kenya African Union (KANU). Central 3. improving education. In December 2002. Coast 4.POLITICS Kenya is a presidential representative democratic republic. combating corruption. Rift Valley . the new ruling coalition promised to focus its efforts on generating economic growth. Under the presidency of Mwai Kibaki. and rewriting its constitution.

The government supervises administration of districts and provinces. The City of Nairobi enjoys the status of a full administrative province. There were 69 districts as of 1999 census. Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). The provinces were subdivided into districts . The divisions are then subdivided into 2. Districts are then subdivided into 497 divisions .427 locations and then 6. Western Kenya is divided into 47 semi-autonomous counties that will be headed by governors who will be elected in the first general election under the new constitution in August 2012 .612 sub locations. .Under the old constitution.9.

which resulted in East Africa's most profitable company – Safaricom. a massive 22 percent of GDP still comes from the unreliable agricultural sector which employs 75 percent of the labor force (a consistent characteristic of under-developed economies that have not attained food security . especially the vital tea sector. transport. Industry and manufacturing is the smallest sector that accounts for 16 percent of the GDP. telecommunications. But this changed immediately after the disputed presidential election of December 2007. and now contributes 62 percent of GDP. free movement of people. Tanzania. seen by strong performance in tourism. The EAC's objectives include harmonizing tariffs and customs regimes. In March 1996. construction and a recovery in agriculture. In March 2004. East and central Africa's biggest economy has posted tremendous growth in the service sector. and Uganda re-established the East African Community (EAC). and acceptable post-drought results in agriculture. following the chaos which engulfed the country. the economy has seen much expansion. The World Bank predicts growth of 4% in 2010 and a potential of 4.ECONOMY Despite western donors' early disappointment with the government. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry. the Presidents of Kenya. As of May 2010. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company. has led to their revival due to massive private investment. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. Unfortunately. boosted by rapid expansion in telecommunication and financial activity over the last decade.an important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. economic prospects are positive with 4–5% GDP growth expected. kerosene and cooking oil. and improving regional infrastructures.9% growth in 2011. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour. largely because of expansions in tourism. . the three East African countries signed a Customs Union Agreement. higher education and telecommunications. However.

. several non-bank financial institutions. industry and manufacturing sectors only employ 25 percent of the labor force but contributes the remaining 75 percent of the GDP. Kenya is East and Central Africa's hub for financial services. including mortgage companies. and several score foreign-exchange bureaus. the system consisted of 43 commercial banks (down from 48 in 2001). The Nairobi Securities Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. Kenya ranks poorly on Transparency International's corruption perception index. As of late July 2004. four savings and loan associations.The more efficient and lucrative technology-knowledge-and-skill-based service. The Kenya banking system is supervised by the Central Bank of Kenya (CBK).

followed by 10 shillings in 1994 and 20 shillings in 1998. Twenty-five cents coins were not minted after 1969. The coins are 50 cents and 1 shilling in stainless steel and bimetallic coins of 5. the Central Bank of Kenya issued notes in denominations of 5. 20. with the same happening to 10 and 20 shillings in 1994 and 1998. A bi-metallic 40 shilling coin with the portrait of President Kibaki was issued in 2003 to commemorate the fortieth anniversary of independence (1963–2003). 5 shillings coins were introduced. In 1980. 10. 50 and 100 shillings. 10 and 20 shillings. 200 shillings notes were introduced. In 1985. 25 and 50 cents. 5 shillings notes were replaced by coins in 1985. . and 1 and 2 shillings. when the central bank introduced a new coin series that restored the portrait of Kenyatta. originally appeared on the obverse of all of independent Kenya's coins. followed by 500 shillings in 1988 and 1000 shillings in 1994.CURRENCY. Between 1967 and 1978. AND INFLATION The Kenyan shilling replaced the East African shilling in 1966 at par. the first president of Kenya. EXCHANGE RATE. the portrait of Jomo Kenyatta. COINS The first coins were issued in 1966 in denominations of 5. BANKNOTES In 1966. In 1986. New coins with the image of Kenyatta were issued in 2005. 2 shillings coins were last minted in 1971. a portrait of Daniel arap Moi replaced Kenyatta until 2005. 10.

9 percent in December of 2011. 500 and 1000 shilling. 200. The issue of 12 December 2003 commemorates the "40 years of Independence 1963-2003". 100. EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. 5. But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012. The banknotes are printed in Nairobi by De La Rue.As with the coins. The Central Bank of Kenya shifted its target to tighten liquidity. after Mwai Kibaki replaced Moi as president. from about 83 shillings per US dollar to about 100 shillings per US dollar at late 2011. A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50. In 2003. . with Daniel arap Moi's portrait replacing him in 1980. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978. INFLATION The inflation rate in Kenya was last reported at 18. and circulated for a time. 10. including increasing interest rate and money market operations. and 20 shilling notes from the 1978 series with Kenyatta's picture that had been in storage were issued.

GROSS DOMESTIC PRODUCT (GDP) Kenya’s economic performance since independence .

and other. and may now be at a tipping point for robust growth.7 percent. Public sector investments in infrastructure will help to stimulate this growth. transport and communications. and construction and a recovery in agriculture. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth.39 billion. 6. 24. The country’s real GDP growth picked up to 2.0 percent. Without ICT. Kenya's economy grew at an average of 3. transport. 25. the driver of previous years' growth. Real GDP is expected to continue to improve. and recent investments in infrastructure. and hotels. Per capita GDP averages somewhat more than US$450 annually. 13. Adjusted in purchasing power parity (PPP) terms. Economic growth in 2011-12 could range between 5. largely because of expansions in tourism.6 .200. trade. telecommunications.In 2006 Kenya’s GDP was about US$17. ICT has been the main driver of Kenya's economic growth over the last decade. ICT innovations. Since 2000. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. GDP composition by sector. strong macroeconomic management. was as follows: agriculture. have moderated while agriculture and industry are rebounding after two weak years.0 percent if no shocks occur.0 percent.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006.5 CHANGE (%) 46. restaurants.3 and 6.8 percent. 14. Five factors are creating a positive momentum: the new constitution. 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 2004-2007.8 percent—similar to the population growth rate—and income per capita would have stagnated. compared with a sluggish 1.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22.9 percent. according to 2004 estimates. growth in 2010 would have been a lackluster 2. Kenya has seen the return of higher growth projected at 4. government services.7 percent.9 percent. However.1 2010/11 (%) 24. EAC integration. Services. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). per capita GDP in 2006 was about US$1.6 percent. 15. manufacturing. growing on average by 20 percent annually. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010.

2 -0.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.9 .9 7.9 -15.8 2.1 14.0 13.9 14.0 3.9 15.5 -14.7 15.1 -12.4 1.9 28.

lions and a variety of birds like falcons and others in these natural reserves. Kenya Tourism has acquired a lot of importance over the past few years and the government of the country has left no stone unturned in attracting tourist’s tom this exotic country. Tourism in Kenya is mainly centered around two major geographical areas of the country. Mombassa. Nakuru. One can take a look at the Laikipia Plateau in east Kenya or pay a visit to the Taita Hills in the southern part of the country. cheetahs. The country with its breath taking scenery. The cities are known for their history and one can pay a visit to the numerous tourist attractions found over here. One can pay a visit to the Shela Beach in the city of Lamu. Some of the major wildlife sanctuaries that one can pay a visit include the Amboseli National Reserve. Kenya has over the years become a major tourist destination of the world. which includes the Times Tower. is dominated by tourism. Bedsides these. amazing wildlife and diverse culture has been attracting tourists from all across the world every year. which include the beaches on the southern coast and the numerous national parks. Watamu National marine Park and others. The country is home to a large number of natural reserves also. One can check out the elephants. . Blue Market. Chyulu Hills National Park. Eldoret and others. Kisumu. leopards. giraffes. rhinoceros's. When on a vacation to Kenya. which contributes about 63 percent of GDP.INDUSTRY IN KENYA TOURISM Kenya's services sector. one can pay a visit to the beaches on the coast of the Indian Ocean. Tsavo East National Park and others. one can pay a visit to the cities of Lamu. Nairobi. Travelers coming here for a holiday can take a look at breathtaking view of its scenery and picturesque landscapes. Railway Museum.

customs. Tourism has inculcated environmental awareness amongst them and has also widened their outlook. The people of the country have also become much more aware and knowledgeable.Kenya tourism has had a favorable impact on the culture and tradition of the country. . Large number of international travelers come to this country and embarks on adventure safaris. Kenya tourism is a rapidly growing industry and is all set to help in making valuable contributions towards the development of the country. A large number of hotels are regularly coming up over here to provide accommodation to the tourists coming here for a holiday. The hotel industry has also flourished because of this reason. music and dance of the country. over the past few years and has thus contributed towards the economic development of the country. Tourism has also helped in providing employment to a large number of people in Kenya. Tourism generates revenue of nearly $500million per year. It has helped in preserving the cultural traditions. which helps in generating revenue for the country. Tourism has made major contributions toward the country's GDP. Tourism is a major industry of Kenya.

and was fourth in the world.1 million in 2001. horticultural produce.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. and coffee. coffee earnings totaled $91. Tea exports were valued at $404. Similar to the tea sector. operate on their own. as well as for 18 percent of wage employment and 50 percent of revenue from exports.000 farmers. after tourism and tea.000 tons. In 2001. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports. All coffee is marketed . after the service sector. and only 7 or 8 percent can be classified as first-class land. In 2006 almost 75 percent of working Kenyans made their living on the land. coffee is produced on many small farms and a few large estates. Black tea is Kenya's leading agricultural foreign exchange earner. The principal cash crops are tea. The small-scale sector. The estates. including forestry and fishing. Production in 1999 reached 220. Coffee has declined in importance with depressed world prices. accounted for about 24 percent of GDP. China. Production in 2001/02 amounted to 52. In 2005 agriculture. or nearly 18% of total exports. Coffee is Kenya's third leading foreign exchange earner. About one-half of total agricultural output is non-marketed subsistence production. compared with 80 percent in 1980. with more than 260. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed.140 tons.8 million. and Sri Lanka. accounting for just 5 percent of export receipts in 2005. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). consisting of 60–75 private companies. behind India. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. The tea industry is divided between small farms and large estates. Kenya is Africa's leading tea producer. is controlled by the parastatal Kenya Tea Development Authority.

driving coffee prices to historical lows. The production of major food staples such as corn is subject to sharp weather-related fluctuations. known as pyrethrin. Fresh produce accounted for about 30% of horticultural exports. especially the fruits and . Kenyan horticulture has become prominent in recent years. sisal. pineapples. sisal. Flowers exported include roses. cabbages. the expansion of credit to the agricultural sector has enabled farmers to better deal with the large risk of agriculture based on rainfall and the dramatic fluctuations of the prices of agricultural products. pyrethrum.through the parastatal Coffee Board of Kenya. snow peas. coffee. output contracted as coffee production was slow to recover from the prolonged drought in early 2009. avocados. Horticulture exports contracted for the third consecutive year.8 million people because of one of Kenya’s intermittent droughts. statice. cotton. Kenya's Agriculture Performance in 2010: The agriculture sector has been rebounding in 2010 and is expected to grow by 5 percent. and included green beans. onions. and passion fruit. The performance of Kenya's main agriculture exports in 2010 was strongest for tea which recovered rapidly from 2009 weather conditions. Favorable weather conditions and specific policy interventions under the government's economic stimulus program helped turn the sector around. and corn are grown in the lower-lying areas. one of the most successful agricultural production regions in Africa. sugarcane. and is now the third leading agricultural export. in 2004 aid for 1. when the sector contracted by a combined 6. Although coffee is benefitting from an increase in global prices. a flower that contains a substance used in pesticides. Coconuts. cashew nuts. This is an important development after two consecutive years of decline. astromeria. The sector continued to be affected by a muted recovery in Europe. mangoes. corn. Production downturns periodically necessitate food aid—for example. is derived from the flower's petals. A combination of volume and price increases will see the sector perform even better than in 2008. which had previously been the best year for the sector.7 percent. The pyrethrum extract. carnations. Livestock predominates in the semi-arid savanna to the north and east. and lilies. Tea. The suspension of the economic provisions of the International Coffee Agreement in July 1989 disrupted markets temporarily. following tea and coffee. However. Kenya is the world's largest producer and exporter of pyrethrum. and wheat are grown in the fertile highlands.

Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana.vegetables. Thanks largely to rising soda ash output. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species.162.000 metric tons. All minerals not extracted are government property. gold. Pollution. and fluorspar. Kenya’s mineral production in 2005 reached more than 1 million tons. The mining and quarrying sector makes a negligible contribution to the economy. Kenya’s total catch reported in 2004 was 128. overfishing. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. salt. Apart from soda ash. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya. In addition. output from fishing has been declining because of ecological disruption. In 2004 round wood removals came to 22. the chief minerals produced are limestone. MINING AND MINERALS Kenya has no significant mineral endowment. the volcanic ash crisis in April 2010 disrupted access to the key source markers in Europe FORESTRY AND FISHING Resource degradation has reduced output from forestry.000 cubic meters. according to the Mining Act. accounting for less than 1 percent of gross domestic product. . However.

a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods. Mombasa. operate on their own. Kenya's inclusion among the beneficiaries of the U. is controlled by the parastatal Kenya Tea Development Authority. manufacturing still accounts for only 14 percent of gross domestic product (GDP). Tea exports were valued at $404. Kenya is Africa's leading tea producer. and the fabrication of consumer goods. and sugarcane crushing. including the removal of duty on capital equipment and other raw materials. and Sri Lanka.000 farmers. Since AGOA took effect in 2000. behind India. The estates. There is a vibrant and fast growing cement production industry. The tea industry is divided between small farms and large estates. In addition. concentrated around the three largest urban centers. with more than 260. and Kisumu.S. beer production. consisting of 60–75 private companies. is dominated by food-processing industries such as grain milling. Black tea is Kenya's leading agricultural foreign exchange earner. Industrial activity. motor-vehicle parts. The small-scale sector. Kenya's clothing sales to the United States increased from US$44 million to US$270 million.g. . mainly for the domestic market. or nearly 18% of total exports. and farm implements.1 million in 2001. Kenya has an oil refinery that processes imported crude petroleum into petroleum products.INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. e. Nairobi. vehicles from kits. and was fourth in the world. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years. China. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures..

Kenya aims to build a nuclear power plant by 2017.142 megawatts between 2001 and 2003. has no strategic reserves and relies solely on oil marketers' 21-day oil reserves required under industry regulations. Hydrocarbon reserves have yet to be discovered on Kenya's territory. east Africa's largest economy. which is slated for privatization. Although Kenya is yet to give a formal indication of where its exploration program. despite several decades of intermittent exploration. and electricity imported from Uganda make up the rest of the supply. when drought reduces water flow. A petroleum-fired plant on the coast. Gas discoveries in Tanzania and significant proven oil reserves along the border between Uganda and DR Congo have also encouraged interest in the once largely . Kenya currently imports all crude petroleum requirements. while the Kenya Power and Lighting Company (KPLC). Petroleum accounts for 20 to 25 percent of the national import bill. To become energy sufficient. The stateowned Kenya Electricity Generating Company (KenGen). handles transmission and distribution. in recent weeks. Shortfalls of electricity occur periodically. which now involves half a dozen companies. established in 1997 under the name of Kenya Power Company. as well as the Turkwel Gorge Dam in the west. combined with the fact that the rocks that form the East African Rift System are about the same age.ENERGY The largest share of Kenya's electricity supply comes from hydroelectric stations at dams along the upper Tana River. well-placed sources in Uganda's oil industry have suggested that the country is on the verge on making an announcement that could cement East Africa's position as major oil region on the continent. Kenya. Kenya's installed capacity stood at 1. Optimism surrounding the Kenyan program is informed by recent oil discoveries in Uganda that. geothermal facilities at Olkaria (near Nairobi). suggests a high potential for oil in Kenya. is headed. handles the generation of electricity.

It also had a license for block L2. senior geologists at Uganda's Energy Ministry who were at the forefront of the country's search for oil two decades ago. Reacting to the current speculation about prospects for an early oil find. China National Offshore Oil Corporation (CNOOC) had worked with Africa Oil and Lion Energy Corp to drill an exploratory well in block 9 in northern Kenya. Before its exit mid this year. with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects.overlooked region. said they had no reason to doubt that there was oil in Kenya. an inland area in the Lamu basin. .

14. In the news recently Kenya’s planned investment in oil and gas exploration may rise to a record as the discovery of crude in neighboring Uganda piques interest in the largely untapped territory. to prospect for oil in Kenya. and other companies may follow as more plans are approved. Only 32 exploratory wells have been drilled in Kenya.mailed response to questions today.K. and there has been no formal estimate of the possible reserves.S. Spending on exploration and drilling is estimated at $126 million.based explorer Afren Plc. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy. an oil and gas analyst at Renaissance Capital Ltd. (AFR) “Big companies like Tullow coming into the country automatically creates more interest. . Petroleum Commissioner Martin Heya said.” . with an estimated 2. Heya said in an interview in Nairobi.” Dragan Trajkov. prepares to become a crude producer next year when Tullow expects to start pumping from the Lake Albert Basin. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest.OIL EXPLORATION Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya.” Heya said. plans to sink two test wells in north. That compares with 480 in East Africa. he said. according to data from U. said an e.5 billion barrels of oil reserves.500 in the west of the continent and 19. while U. No oil has been discovered yet. “I wouldn’t be surprised if the Kenyan government tries to capitalize on it.-based Apache Corp. (APA) may drill offshore next year.western Kenya this year and early 2012. “The more wells that are drilled.” Exploration companies are increasing spending in Kenya as neighboring Uganda. as it provides credibility to potentially finding more discoveries. CNOOC. the London-based explorer with the most licenses in Africa. the faster a discovery will be made. The deal allowed for China's state-controlled offshore oil and gas company. Tullow Oil Plc (TLW). in London. which is just beginning to drill its first exploratory wells on the borders of Sudan and Somalia and in coastal waters. the Kenyan capital.000 in north and central Africa.

several non-bank financial institutions. Two of the four largest banks. In recent years. almost 75 percent in agriculture. Government budget balance as a percentage of gross domestic product is a low –5. GOVERNMENT BUDGET In 2006 Kenya’s revenues totaled US$4. The Nairobi Stock Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. the system consisted of 43 commercial banks (down from 48 in 2001).377 billion. four savings and loan associations. LABOR In 2006 Kenya’s labor force was estimated to include about 12 million workers. Most of the many smaller banks are family-owned and -operated. As of late July 2004. Kenya's labor force has shifted from the countryside to the cities. the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK). In 2004 about 15 percent of the labor force was officially classified as unemployed.5 percent in 2004⎯had improved to –2. and several score foreign-exchange bureaus. as Kenya becomes increasingly urbanized.448 billion. including mortgage companies. The number employed outside small-scale agriculture and pastoralism was about 6 million. Other estimates place Kenya’s unemployment much higher. such as Nairobi. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). even up to 40 percent.FINANCIAL SERVICES Kenya is East and Central Africa's hub for financial services. and the other two are majority foreign-owned (Barclays Bank and Standard Chartered).1 percent in 2006. while its estimated expenditures totaled US$5. . are partially government-owned.

Vision 2030 will be steered by the National Economic and Social Council which is chaired by the President and brings together CEOs of top businesses. Lee the former Prime Minister of Singapore. social scientists.K. Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy. .VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development. It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007. and Mr. government officials and even international personalities like Baroness Chalker from the U.

Kenya’s apparel industry is struggling to hold its ground against Asian competition and runs a trade deficit with the United States. Kenya’s chief exports are horticultural products and tea. about 10 times the value of Kenya’s third most valuable export. manufactured goods. machinery. and transportation equipment. Kenya. The leading imports are crude petroleum. followed by the European Union. pyrethrum. Among the early steps toward integration is the customs union which has eliminated duties on goods and non-tariff trade barriers among the members. Many of Kenya's problems relating to the export of goods are believed by most economists to be caused by Kenya's export of inexpensive goods that saturate the global market but do little to substantially raise the amount of money coming into the country. Uganda. a partnership of Kenya. coffee. sold to near neighbors. while that of multilateral agencies. In 2005 the combined value of these commodities was US$1. some from China and others from the high developed countries. Major suppliers are the UK. United Arab Emirates. Kenya’s other significant exports are petroleum products. a nonaligned country. chemicals. cement. some from Russia. Kenya’s main exports to the United States are garments traded under the terms of the African Growth and Opportunity Act (AGOA).150 million. has seen substantial foreign investment and significant amounts of development aid. Between 60 and 70 percent of industry is still owned from abroad Kenya's development assistance has come from increasingly diverse sources in recent years with China taking an increasingly higher prominent role than the west. . and sisal. and Tanzania. Uganda.FOREIGN ECONOMIC RELATIONS Since independence. The most active investors currently are the Chinese. Tanzania. Africa is Kenya's largest export market. particularly the World Bank and the European Development Fund. has increased. fish. and the Netherlands. The share of funding provided by the United Kingdom has fallen significantly. The aim of the EAC is to create a common market of the three states modeled on the European Union. Despite AGOA. The major destinations for exports are the United Kingdom (UK). and India. Japan. Kenya is active within regional trade blocs such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC).

Foreign investors have been guaranteed ownership and the right to remit dividends. yielding a trade deficit of about US$2.Kenya typically has a substantial trade deficit.5 billion. Other multinationals operating in Kenya includes British American Tobacco (BAT). The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. In 2006 the current account balance as a percentage of gross domestic product was –4.7 billion. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. when the current account had a deficit of US$495 million. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. food manufacturer Cadbury and Toyota Tsusho Corporation. with occasional tightening of restrictions to promote the Africanization of enterprises. Kenyan policies on foreign investment generally have been favorable since independence. In 2006 Kenya had a current account deficit of US$1. between 60 and 70 percent of industry is still owned from abroad. and capital. the German chemical manufacturer and producer of Nivea skincare products. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. Important multinationals active in Kenya Barclays Bank.2 billion. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise.2. royalties.7 billion. and Beiersdorf. This denied Kenyans the opportunity to progress economically . Also present are Bata. In 2006 Kenya’s external debt totaled US$6. the global shoe company headquartered in Canada. The payment for imports was about US$5.5 billion. Notwithstanding some restrictions. In the 1970s. However. This figure was a significant increase over 2005. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. . In 2005 Kenya’s income from exports was about US$3.

KENYA EXPORTS Kenya exports were worth 45. petroleum products. cement.7 Billion KES in October of 2011. Other export items include textiles. KENYA IMPORTS Kenya imports were worth 115. motor vehicles. United States and Pakistan. iron and steel products. resins and plastics. United States and Japan.3 Billion KES in October of 2011. . South Africa. petroleum products. Uganda. Kenya imports mostly machinery and transportation equipment. UAE. China. coffee. Agricultural products are central to Kenya's export industry with horticultural and tea being the most important. Kenya main import partners are India. Tanzania. Saudi Arabia. Kenya main exports partners are UK. iron and steel. tobacco. Netherlands.

energy and gas. While agriculture recorded reduced growth. Tanzania and Uganda carried out their general elections during the year in contrasting environments. and construction sectors helped to bolster growth. the GDP growth was attributed to recovery in construction and wholesale trade. with the exception of Kenya. Tanzania. All the same. Kenya’s growth was grounded on strong performance across all the key sectors of the economy with agriculture recording marked improvement after two consecutive years of decline. Significantly. Continuing economic recovery in the global economy boosted Tanzania’s tourist and Foreign Direct Investment (FDI) inflows and the demand for its exports. the two countries managed to post positive GDP growth. In Uganda. Sectors such as communications.6% to 7% in 2010/11.REGIONAL ECONOMIC OVERVIEW The East African Countries of Kenya. The country also shook off the effects of the post election violence. . construction and financial services recorded impressive growth compared to the past year Rwanda benefited from a stable macroeconomic environment and recorded the lowest inflation in the region. financial services. and improved performance in telecommunications. Uganda and Rwanda experienced modest GDP growth rates of 5. improved performance in the manufacturing. electricity. mining and quarrying subsectors. all the other three countries experienced reduced growth rates compared to 2009/10.

187 23.6 126 808.1 3.5 11.5 31.7 4.7 6.7 521. COMPARISON OF E.9 6.A MACRO-ECONOMIC INDICATORS Comparison of E.6 4.6 39.5 6. resulting in simmering discontent. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.6 4.0 7.5 6.5 10.0 532.1 617.0 43.3 8.822 5.5 .4 6.1 4.6 2.7 528.3 5.5 5. All the four finance ministers have been careful to include in their budgets social interventions to cushion their citizens against the rising cost of living.8 6.104 16.8 7.A Macroeconomic Indicators GDP current prices(USD Million) Real GDP growth rate(%)–2010/11 Real GDP growth rate(%)–2009/10 Population(Million ) GDP per capita(USD)current prices Overall inflation rate (%) Treasury bill interest rate (%) Budget deficit % of GDP at current Kenya Tanzania Uganda Rwanda EA Total/ Average 32.7 6.2 6. In both Uganda and Kenya. The win effect of the high food and fuel costs have pushed up the cost of living across the region.567 5. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.6 5.3 5.8 3.3 5.964 77.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.

6 45.5 13.0 10.318 .8 7.0 9.7 12.145 800 14.8 17.3 36.241 4.417 11.9 8.0 37.300 946 29.prices Development expenditure as a % of GDP at current prices Development expenditure as a % of total expenditure Total public debt(USD million) Trade deficit as % of GDP current prices Tax revenues (USD million) 12.2 13.8 35.0 11.904 21.937 3.2 15.0 31.436 2.

Another large drag on Kenya’s economy is the burden of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS). Kenyans. led by strong performance in tourism and telecommunications. Kenya's economic policies have been subjected to criticism by western donors. prolonged drought that has necessitated power rationing. deteriorating infrastructure. Kenya’s economic performance has been hampered by numerous interacting factors: heavy dependence on a few agricultural exports that are vulnerable to world price fluctuations. Poor governance and corruption also have had a negative impact on growth. population growth that has outstripped economic growth. Kenya ranks among the world’s half-dozen most corrupt countries. 23 percent living on less than US$1 per day. The agricultural sector employs nearly 75 percent of the country’s 38 million people. pay some 16 bribes a month—two in every three encounters with public officials. . and motivations behind. making it expensive to do business in Kenya. However there is still significant improvement to be done. and acceptable post-drought results in agriculture. and extreme disparities of wealth that have limited the opportunities of most to develop their skills and knowledge. There is debate as to the validity of. whose policy aims include budgetary reforms and debt restraint.CRITICISM AND CHALLENGES The economy’s heavy dependence on rain-fed agriculture and the tourism sector leaves it vulnerable to cycles of boom and bust. Bribery and fraud cost Kenya as much as US$1 billion a year. Half of the sector’s output remains subsistence production. Despite early disillusionment of western donors with the government. Prospects significantly improved under the Kibaki government. such criticism. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. the economy has seen a broad-based expansion. Western donors are now adopting a less paternalistic attitude towards their relations with African nations. According to Transparency International. especially the vital tea sector.

go.centralbank. December 2010.tradingeconomics. Information about Infrastructure.com/economies/Africa/Kenya-INFRASTRUCTUREPOWER-AND-COMMUNICATIONS.. December 2010.worldbank. (source: Kenya Economic Update. and communications in Kenya http://www.ke/ www. power. www.worldbank.com/kenya/inflation-cpi . and communications.nationsencyclopedia.keu) Read more: Kenya Infrastructure.org/Kenya/keu) (ref. power.html#ixzz1m90WmYO6 www. www. Kenya Economic Update.org/Kenya.