Republic of Kenya

Jamhuri ya Kenya


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

known from 1920 as the Kenya Colony. is a regional commercial hub. The capital. The economy of Kenya is the largest by GDP in East and Central Africa. mostly the telecommunications sector. Nairobi. and more recently fresh flowers to Europe. but European exploration of the interior began only in the 19th century. Kenya is a member of the East African Community. The service industry is a major economic driver. Nilo-Saharan. Agriculture is a major employer and the country traditionally exports tea and coffee. The independent Republic of Kenya was founded in December 1963. and contributes 62 percent of GDP.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. .

22 billio tea. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. Coal tea. dairy products. cement. meat and meat products.8%. hides. coffee. land (5% arable). pineapples. wheat. US 5. $ 66.2% Per Capita Income (PPP)= $1. vehicle assembly. sisal. cement. horticultural products.600 Wildlife. Netherlands 8.7%.Economic summary $32.1% : Estimate for 2007 = 7. grain and sugar milling. UK 8.16 billion (2010) at Market Price. pyrethrum. horticultural products. beer.8% (2005): 2006 = 6.3% (2010)[68] Major markets (2010) .1%. coffee. skins petroleum products. sugarcane.8%.Titanium. sisal. Democratic Republic of the Congo 4. soda ash. 5. rice. Egypt 4. hides and skins. Tanzania 9. soft drinks.8%. pyrethrum.03 billion (Purchasing Power Parity. n petroleum products.2%. textiles. paper and light manufacturing. corn. fluorspar Uganda 10.

Saudi Arabia 6.4%. UAE 9.7%. motor vehicles.4%. South Africa 8.2 billio machinery and transportation equipment.7% (2010) iers . India 13. resins and plastics Major suppl China 13. n petroleum products.8%.6%. Japan 4.Imports $11. iron and steel.

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

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

Major cities in Kenya include: City Nairobi Mombasa Nakuru Kisumu Meru Nyeri Machakos Eldoret Population 3 375 000 966 000 337 200 273 400 273 000 179 500 140 900 100.000).2%. where they constitute the majority religious group. Sizeable minorities of other faiths do exist (Muslim 11. comprising 50 percent of the total population there. Semi-urban . is home to Kibera. with 73% of residents aged below 30 years.POPULATION Kenya has a young population. indigenous beliefs 1. In addition. one of the world's largest slums. with 47. The shanty town is believed to house between 170.7% regarding themselves as Protestant and 23. The UNHCR base in Dadaab in the north also currently houses around 500. who have played a key role in the local economy. Sixty percent of the Muslim population lives in Coast Province. There is also a small group of Baha'is. there is a large Hindu population in Kenya (around 50.9 million to 40 million over the last century. Western areas of Coast Province are mostly Christian. Nairobi.5% as Roman Catholic. Kenya's capital.000 and 1 million locals. due to rapid population growth from 2. The upper part of Eastern Province is home to 10 percent of the country's Muslims.000 RELIGION The vast majority of Kenyans are Christian (83%).7%). In addition. 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.000 people.

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. The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion. A significant population of other wild animals.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season. reptiles and birds can be found in the national parks and game reserves in the . leopard. including the Masai Mara. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. where Blue Wildebeest and other bovid participate in a large scale annual migration.and rural populations are less multilingual with many in remote villages speaking only their mother tongue. rhinoceros and elephant.

5 million of these ungulates migrate a distance of 1. Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration. in a constant clockwise miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya. The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part. . 11. searching for food and water supplies.

Kenya receives a lot of sunshine all around the year. February and March are the hottest months of the country while July and August are the cooler months. its climate and weather conditions are also varied. Nairobi. while Eldoret has a maximum temperature of 23.30 Celsius to a minimum of 22. Most of the rains occur between April and July. . It is one of the most spectacular events of the country. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. the regions in this area are of semi-desert and arid character. The climate is also humid in the Lake Victoria basin.60 Celsius minimum. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. Apart from the coastal areas.CLIMATE As Kenya has a diverse geography. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain.50 Celsius.60 Celsius and a minimum temperature of 9. The temperature in the coastal town of Mombasa ranges from a maximum of 30. The period ranging from June to September represent the migration period of the wildlife found in the country. the capital of the country has a temperature of 25. while the nights are cooler and comfortable. Summers are extremely hot over here and one is expected to wear light summer clothes. Generally speaking. Because of this reason. The early hours of the morning are also cool and pleasant. Kenya basically enjoys a tropical climate. Rainfall is more on the eastern coast of the country. During the daytime the weather is hot. Rainfall is high in the coastal regions of the country. the country has a dry climate.20 Celsius maximum and 13.40 Celsius. 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. The coastal side of the country has a hot and humid climate. The long rainy season occurs from April to July. while the shorter one occurs from October to December.

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

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

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

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

and container terminal.). offers specialized facilities. In collaboration with various donors. Department of State Country Commercial Guide 2000 . handles light aircraft and general aviation. the busiest airport in Africa. 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. including 21 that are paved. for example. which has an annual average freight throughput of about 8. Accordingly. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. In total.INFRASTRUCTURE Kenya has an extensive road network of approximately 95.1 million tons. the current state of most roads is deplorable. which runs from Mombasa through Nairobi to the Ugandan border. warehousing.000 miles connecting most parts of the country. the largest is Nairobi's Jomo Kenyatta International Airport. is expected to cost US$245 million. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. including cold storage.800 kilometers of highway.868 kilometers are paved (1996 est. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. the state-owned . the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. There are 3 international airports. As a result of heavy operational losses. Of the total 63.000 kilometers of roads in 6 urban centers. In 1999. The deepwater port. which will span approximately 3 years. According to the U. in addition to rehabilitating 20. the KR would lease locomotives to private-sector operators. Kenya has 230 airports. which serves more than 30 airlines providing scheduled services to cities around the world. the Kenyan government recently launched the ambitious 'Roads 2000' project. however. In the same year. boasting 21 berths. only 8. there has been a steady deterioration in the KR's services. The project.S. designed to create links between all major and minor roads. Wilson airport in Nairobi. is the country's main seaport and serves most East and Central African nations. The international and domestic air transport infrastructure is relatively well-developed in Kenya. Kenya's port of Mombasa.

and Postal Corporation of Kenya. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange.000 people in 1996. In 1999-2000. Since 82.000 people.23 billion kWh.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. or approximately 9. The United States. hydro equipment tends to be outdated and poorly maintained. 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. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. Further adding to the problem.000 main telephone lines in use. there were 290. Safaricom. Consequently. . 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. power outages and blackouts have become increasingly common as a result of chronic drought. the government is eager to further develop both thermal and geothermal sources of power. a postal services corporation.9 telephone lines per 1. Kencell. in comparison. boasted 640 phone lines per 1. In 1998. total electricity production in Kenya equaled 4.5 MW from a diesel plant in Nairobi. Kenya experienced its worst drought in 40 years. Only 8 percent of the Kenyan population is connected to the national grid. As of 1998. a telecommunication corporation. a joint venture between Vivendi France and Sameer of Kenya.74 percent of the power supply comes from hydroelectricity.

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

There were 69 districts as of 1999 census. Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). 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 .9.612 sub locations. The government supervises administration of districts and provinces. . The divisions are then subdivided into 2.427 locations and then 6.Under the old constitution. The City of Nairobi enjoys the status of a full administrative province. Districts are then subdivided into 497 divisions . The provinces were subdivided into districts .

The EAC's objectives include harmonizing tariffs and customs regimes. has led to their revival due to massive private investment. construction and a recovery in agriculture. As of May 2010. In March 1996. Unfortunately. the three East African countries signed a Customs Union Agreement. East and central Africa's biggest economy has posted tremendous growth in the service sector. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company.9% growth in 2011. which resulted in East Africa's most profitable company – Safaricom. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry. The World Bank predicts growth of 4% in 2010 and a potential of 4. boosted by rapid expansion in telecommunication and financial activity over the last decade. kerosene and cooking oil. Tanzania. the economy has seen much expansion. higher education and telecommunications.ECONOMY Despite western donors' early disappointment with the government. following the chaos which engulfed the country. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. In March 2004. especially the vital tea sector. the Presidents of Kenya. and now contributes 62 percent of GDP. However. seen by strong performance in tourism. and improving regional infrastructures. free movement of people. economic prospects are positive with 4–5% GDP growth expected. and Uganda re-established the East African Community (EAC). largely because of expansions in tourism. But this changed immediately after the disputed presidential election of December 2007. and acceptable post-drought results in agriculture. telecommunications. . transport. 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 . Industry and manufacturing is the smallest sector that accounts for 16 percent of the important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour.

Kenya ranks poorly on Transparency International's corruption perception index. four savings and loan associations.The more efficient and lucrative technology-knowledge-and-skill-based service. 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. As of late July 2004. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). 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. including mortgage companies. Kenya is East and Central Africa's hub for financial services. and several score foreign-exchange bureaus.

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

and circulated for a time. 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. The issue of 12 December 2003 commemorates the "40 years of Independence 1963-2003". In 2003.As with the coins. from about 83 shillings per US dollar to about 100 shillings per US dollar at late 2011. 500 and 1000 shilling. The Central Bank of Kenya shifted its target to tighten liquidity. INFLATION The inflation rate in Kenya was last reported at 18. with Daniel arap Moi's portrait replacing him in 1980. The banknotes are printed in Nairobi by De La Rue. 10. A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978. EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012. after Mwai Kibaki replaced Moi as president. 5. 200. . 100.9 percent in December of 2011.

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

the timely implementation of the constitutional reforms would also be necessary to help boost business confidence.3 and 6. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). government services.1 2010/11 (%) 24. 13.6 percent. and hotels. manufacturing.39 billion. Without ICT.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). Economic growth in 2011-12 could range between 5. 6. the driver of previous years' growth.200. have moderated while agriculture and industry are rebounding after two weak years. Since 2000. Real GDP is expected to continue to improve.In 2006 Kenya’s GDP was about US$17. 24. transport. according to 2004 estimates. Public sector investments in infrastructure will help to stimulate this growth. trade. ICT innovations. strong macroeconomic management. 14.0 percent. restaurants. was as follows: agriculture.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. telecommunications. EAC integration. Per capita GDP averages somewhat more than US$450 annually.9 percent. and construction and a recovery in agriculture.7 percent.8 percent. transport and communications. However.7 percent. growing on average by 20 percent annually. 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. and may now be at a tipping point for robust growth. Kenya's economy grew at an average of 3. and recent investments in infrastructure. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. 25. Kenya has seen the return of higher growth projected at 4. Five factors are creating a positive momentum: the new constitution. largely because of expansions in tourism. The country’s real GDP growth picked up to 2. 15. Services. per capita GDP in 2006 was about US$1. GDP composition by sector.6 .9 percent.0 percent. compared with a sluggish 1. and other.8 percent—similar to the population growth rate—and income per capita would have stagnated. growth in 2010 would have been a lackluster 2. ICT has been the main driver of Kenya's economic growth over the last decade.0 percent if no shocks occur.5 CHANGE (%) 46. Adjusted in purchasing power parity (PPP) terms.

9 14.9 .1 -12.1 14.2 -0.7 15.9 -15.9 7.9 15.4 1.5 -14.8 2.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.0 3.0 13.9 28.

leopards. Mombassa. Chyulu Hills National Park. cheetahs. which includes the Times Tower. one can pay a visit to the cities of Lamu. amazing wildlife and diverse culture has been attracting tourists from all across the world every year. which contributes about 63 percent of GDP. 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. When on a vacation to Kenya.INDUSTRY IN KENYA TOURISM Kenya's services sector. The cities are known for their history and one can pay a visit to the numerous tourist attractions found over here. Nakuru. Kenya has over the years become a major tourist destination of the world. The country is home to a large number of natural reserves also. Travelers coming here for a holiday can take a look at breathtaking view of its scenery and picturesque landscapes. The country with its breath taking scenery. Tsavo East National Park and others. lions and a variety of birds like falcons and others in these natural reserves. rhinoceros's. One can check out the elephants. Nairobi. . Railway Museum. one can pay a visit to the beaches on the coast of the Indian Ocean. Blue Market. Tourism in Kenya is mainly centered around two major geographical areas of the country. is dominated by tourism. Watamu National marine Park and others. Eldoret and others. Kisumu. 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. which include the beaches on the southern coast and the numerous national parks. Bedsides these. One can pay a visit to the Shela Beach in the city of Lamu. giraffes. Some of the major wildlife sanctuaries that one can pay a visit include the Amboseli National Reserve.

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

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

and included green beans. Production downturns periodically necessitate food aid—for example. Horticulture exports contracted for the third consecutive year. corn. and passion fruit. pineapples. carnations. and wheat are grown in the fertile highlands. coffee. is derived from the flower's petals. and lilies. 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. onions. cashew nuts. sugarcane. mangoes. The production of major food staples such as corn is subject to sharp weather-related fluctuations. cabbages. The pyrethrum extract. The performance of Kenya's main agriculture exports in 2010 was strongest for tea which recovered rapidly from 2009 weather conditions. in 2004 aid for 1. avocados. and corn are grown in the lower-lying areas. Tea. The suspension of the economic provisions of the International Coffee Agreement in July 1989 disrupted markets temporarily. a flower that contains a substance used in pesticides. Although coffee is benefitting from an increase in global prices.through the parastatal Coffee Board of Kenya.8 million people because of one of Kenya’s intermittent droughts. Fresh produce accounted for about 30% of horticultural exports. Flowers exported include roses. Kenyan horticulture has become prominent in recent years. sisal. especially the fruits and . Kenya is the world's largest producer and exporter of pyrethrum. one of the most successful agricultural production regions in Africa. Livestock predominates in the semi-arid savanna to the north and east. This is an important development after two consecutive years of decline. The sector continued to be affected by a muted recovery in Europe. statice. Coconuts. Favorable weather conditions and specific policy interventions under the government's economic stimulus program helped turn the sector around. snow peas. following tea and coffee. cotton. output contracted as coffee production was slow to recover from the prolonged drought in early 2009. when the sector contracted by a combined 6.7 percent. Kenya's Agriculture Performance in 2010: The agriculture sector has been rebounding in 2010 and is expected to grow by 5 percent. However. sisal. astromeria. which had previously been the best year for the sector. A combination of volume and price increases will see the sector perform even better than in 2008. known as pyrethrin. pyrethrum. driving coffee prices to historical lows. and is now the third leading agricultural export.

In 2004 round wood removals came to 22. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species.162. MINING AND MINERALS Kenya has no significant mineral endowment. Pollution.000 metric tons. The mining and quarrying sector makes a negligible contribution to the economy. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya. Kenya’s mineral production in 2005 reached more than 1 million tons. overfishing. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. and fluorspar. Apart from soda ash. . the chief minerals produced are limestone.vegetables.000 cubic meters. according to the Mining Act. accounting for less than 1 percent of gross domestic product. salt. gold. In addition. output from fishing has been declining because of ecological disruption. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. However. Thanks largely to rising soda ash output. Kenya’s total catch reported in 2004 was 128. 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. All minerals not extracted are government property.

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

while the Kenya Power and Lighting Company (KPLC). despite several decades of intermittent exploration. has no strategic reserves and relies solely on oil marketers' 21-day oil reserves required under industry regulations. Petroleum accounts for 20 to 25 percent of the national import bill.142 megawatts between 2001 and 2003. Optimism surrounding the Kenyan program is informed by recent oil discoveries in Uganda that. Hydrocarbon reserves have yet to be discovered on Kenya's territory. A petroleum-fired plant on the coast. Kenya. To become energy sufficient. The stateowned Kenya Electricity Generating Company (KenGen). geothermal facilities at Olkaria (near Nairobi). when drought reduces water flow. 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. combined with the fact that the rocks that form the East African Rift System are about the same age. Although Kenya is yet to give a formal indication of where its exploration program. handles the generation of electricity. in recent weeks. is headed. established in 1997 under the name of Kenya Power Company. Kenya aims to build a nuclear power plant by 2017. which now involves half a dozen companies. suggests a high potential for oil in Kenya. as well as the Turkwel Gorge Dam in the west. east Africa's largest economy.ENERGY The largest share of Kenya's electricity supply comes from hydroelectric stations at dams along the upper Tana River. Shortfalls of electricity occur periodically. 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's installed capacity stood at 1. which is slated for privatization. handles transmission and distribution. and electricity imported from Uganda make up the rest of the supply.

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.overlooked region. Before its exit mid this year. 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. said they had no reason to doubt that there was oil in Kenya. Reacting to the current speculation about prospects for an early oil find. an inland area in the Lamu basin. with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects. .

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

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

VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development.K. government officials and even international personalities like Baroness Chalker from the U. Lee the former Prime Minister of Singapore. Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3. social scientists. and Mr.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy. 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. . It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007.

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

5 billion. This figure was a significant increase over 2005. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. yielding a trade deficit of about US$2. Notwithstanding some restrictions. This denied Kenyans the opportunity to progress economically .Kenya typically has a substantial trade deficit. the German chemical manufacturer and producer of Nivea skincare products. In the 1970s. However. . Important multinationals active in Kenya Barclays Bank.7 billion. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. In 2006 Kenya had a current account deficit of US$1. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. with occasional tightening of restrictions to promote the Africanization of enterprises. Other multinationals operating in Kenya includes British American Tobacco (BAT).2 billion. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. royalties. and capital. Also present are Bata. In 2006 the current account balance as a percentage of gross domestic product was –4. The payment for imports was about US$5. the global shoe company headquartered in Canada. between 60 and 70 percent of industry is still owned from abroad.2. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. food manufacturer Cadbury and Toyota Tsusho Corporation.5 billion. In 2006 Kenya’s external debt totaled US$6. Foreign investors have been guaranteed ownership and the right to remit dividends. In 2005 Kenya’s income from exports was about US$3.7 billion. when the current account had a deficit of US$495 million.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. Kenyan policies on foreign investment generally have been favorable since independence. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. and Beiersdorf.

UAE. Kenya imports mostly machinery and transportation equipment. Uganda.3 Billion KES in October of 2011. coffee.KENYA EXPORTS Kenya exports were worth 45. South Africa. . Kenya main exports partners are UK. KENYA IMPORTS Kenya imports were worth 115.7 Billion KES in October of 2011. Netherlands. cement. petroleum products. iron and steel products. tobacco. Kenya main import partners are India. iron and steel. China. Tanzania. resins and plastics. United States and Pakistan. petroleum products. Agricultural products are central to Kenya's export industry with horticultural and tea being the most important. United States and Japan. Saudi Arabia. motor vehicles. Other export items include textiles.

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

5 6.6 5.6 39.0 43.104 16.6 4.6 2.822 5.567 5. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.A MACRO-ECONOMIC INDICATORS Comparison of E.1 617.8 3.5 . COMPARISON OF E.187 23.3 5.7 521.8 7.1 4.6 126 808.5 10. resulting in simmering discontent.7 528.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.1 3. The win effect of the high food and fuel costs have pushed up the cost of living across the region. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.3 8.0 7.2 6.5 31.7 6.4 6.0 532.3 5.7 6.6 4.5 11. In both Uganda and Kenya.3 5.964 77. 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.5 5.7 4.9 6.5 6.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 32.8 6.

8 35.0 10.2 13.0 9.0 37.145 800 14.7 12.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) 12.0 31.5 13.8 17.0 11.3 36.436 2.417 11.241 4.8 7.937 3.2 15.904 21.300 946 29.6 45.9 8.318 .

deteriorating infrastructure.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. such criticism. and acceptable post-drought results in agriculture. Western donors are now adopting a less paternalistic attitude towards their relations with African nations. 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. Half of the sector’s output remains subsistence production. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. Kenya's economic policies have been subjected to criticism by western donors. Prospects significantly improved under the Kibaki government. Kenyans. and motivations behind. Another large drag on Kenya’s economy is the burden of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS). population growth that has outstripped economic growth. Despite early disillusionment of western donors with the government. prolonged drought that has necessitated power rationing. making it expensive to do business in Kenya. and extreme disparities of wealth that have limited the opportunities of most to develop their skills and knowledge. Bribery and fraud cost Kenya as much as US$1 billion a year. According to Transparency International. pay some 16 bribes a month—two in every three encounters with public officials. whose policy aims include budgetary reforms and debt restraint. the economy has seen a broad-based expansion. However there is still significant improvement to be done. The agricultural sector employs nearly 75 percent of the country’s 38 million people. Poor governance and corruption also have had a negative impact on growth. . There is debate as to the validity of. led by strong performance in tourism and telecommunications. Kenya ranks among the world’s half-dozen most corrupt countries. especially the vital tea sector. 23 percent living on less than US$1 per day. www. December (ref..worldbank. (source: Kenya Economic Update. www.keu) Read more: Kenya Infrastructure.html#ixzz1m90WmYO6 .worldbank. power.go. power. and communications. Information about Infrastructure. www. and communications in Kenya http://www. December 2010. Kenya Economic

Sign up to vote on this title
UsefulNot useful