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

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

soft drinks.Economic summary $32.8%.8% (2005): 2006 = 6. Coal tea.2%.Titanium. pineapples. sisal. Democratic Republic of the Congo 4.8%. $ 66. sisal. 5. pyrethrum. n petroleum products. grain and sugar milling.3% (2010)[68] Major markets (2010) . soda ash. paper and light manufacturing. wheat. skins petroleum products. beer. Tanzania 9. horticultural products. horticultural products.600 Wildlife. hides. cement. UK 8. corn. sugarcane. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. rice. pyrethrum. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures.03 billion (Purchasing Power Parity. hides and skins. coffee. meat and meat products.2% Per Capita Income (PPP)= $1. vehicle assembly. land (5% arable). cement. Netherlands 8.7%.22 billio tea. US 5. coffee.16 billion (2010) at Market Price. fluorspar Uganda 10. textiles.1%.8%.1% : Estimate for 2007 = 7. Egypt 4. dairy products.

2 billio machinery and transportation equipment.8%.7% (2010) iers . Japan 4.4%. motor vehicles. South Africa 8.Imports $11. India 13. n petroleum products.7%. resins and plastics Major suppl China 13.4%.6%. UAE 9. iron and steel. Saudi Arabia 6.

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

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

Kenya's capital. Western areas of Coast Province are mostly Christian. comprising 50 percent of the total population there. In addition. indigenous beliefs 1.5% as Roman Catholic. with 73% of residents aged below 30 years. Nairobi. Sizeable minorities of other faiths do exist (Muslim 11. there is a large Hindu population in Kenya (around 50. due to rapid population growth from 2.000 people.000 RELIGION The vast majority of Kenyans are Christian (83%). In addition. The shanty town is believed to house between 170. The upper part of Eastern Province is home to 10 percent of the country's Muslims.7% regarding themselves as Protestant and 23.POPULATION Kenya has a young population.000). one of the world's largest slums.2%. where they constitute the majority religious group. The UNHCR base in Dadaab in the north also currently houses around 500.000 and 1 million locals. is home to Kibera. Sixty percent of the Muslim population lives in Coast Province. who have played a key role in the local economy. Semi-urban .9 million to 40 million over the last century. with 47. There is also a small group of Baha'is. 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.7%). 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.

A significant population of other wild animals. leopard. rhinoceros and elephant. Up to 250. The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season.and rural populations are less multilingual with many in remote villages speaking only their mother tongue. reptiles and birds can be found in the national parks and game reserves in the . including the Masai Mara. buffalo. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. 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. where Blue Wildebeest and other bovid participate in a large scale annual migration.

800 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. in a constant clockwise fashion. 11. Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration.5 million of these ungulates migrate a distance of 1.country. searching for food and water supplies. .

Summers are extremely hot over here and one is expected to wear light summer clothes. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. Generally speaking. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. The temperature in the coastal town of Mombasa ranges from a maximum of 30. while the nights are cooler and comfortable. Apart from the coastal areas. Rainfall is more on the eastern coast of the country.20 Celsius maximum and 13.30 Celsius to a minimum of 22.40 Celsius. the capital of the country has a temperature of 25. 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.CLIMATE As Kenya has a diverse geography. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. while the shorter one occurs from October to December. The long rainy season occurs from April to July. Nairobi. Rainfall is high in the coastal regions of the country. Kenya receives a lot of sunshine all around the year. the regions in this area are of semi-desert and arid character. The period ranging from June to September represent the migration period of the wildlife found in the country. Because of this reason. . It is one of the most spectacular events of the country. Most of the rains occur between April and July. The climate is also humid in the Lake Victoria basin.60 Celsius and a minimum temperature of 9. the country has a dry climate.60 Celsius minimum. February and March are the hottest months of the country while July and August are the cooler months. The early hours of the morning are also cool and pleasant. The coastal side of the country has a hot and humid climate. its climate and weather conditions are also varied. while Eldoret has a maximum temperature of 23. During the daytime the weather is hot.50 Celsius. Kenya basically enjoys a tropical climate.

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

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

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

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

sports. . 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. Many internationally renowned films have been made 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. KBC English Radio Service and KBC Kiswahili Radio Service are the two radio stations that operate under the National Radio Network in Kenya.level. entertainment and many more. 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. The Kenyan newspapers cover topics related to politics. Films are a major source of entertainment in the country.

which has an annual average freight throughput of about 8. Department of State Country Commercial Guide 2000 . Kenya has 230 airports. Kenya's port of Mombasa. In collaboration with various donors. the largest is Nairobi's Jomo Kenyatta International Airport.000 miles connecting most parts of the country. is expected to cost US$245 million. boasting 21 berths.000 kilometers of roads in 6 urban centers. which serves more than 30 airlines providing scheduled services to cities around the world.). in addition to rehabilitating 20. for example. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. including cold storage. 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. the state-owned . including 21 that are paved. The international and domestic air transport infrastructure is relatively well-developed in Kenya. According to the U. the Kenyan government recently launched the ambitious 'Roads 2000' project. The project. offers specialized facilities. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. In total. warehousing. which runs from Mombasa through Nairobi to the Ugandan border. the KR would lease locomotives to private-sector operators. the busiest airport in Africa. Accordingly. Of the total 63. Wilson airport in Nairobi. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system.S.868 kilometers are paved (1996 est. As a result of heavy operational losses. only 8. which will span approximately 3 years. designed to create links between all major and minor roads. the current state of most roads is deplorable. is the country's main seaport and serves most East and Central African nations.INFRASTRUCTURE Kenya has an extensive road network of approximately 95.800 kilometers of highway. In 1999. there has been a steady deterioration in the KR's services. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. and container terminal. In the same year. There are 3 international airports.1 million tons. handles light aircraft and general aviation. however. The deepwater port.

9 telephone lines per 1. and Postal Corporation of Kenya. Two international companies were licensed at the beginning of 1997 to respectively produce 43 MW of power from a thermal plant in Mombasa and 45.000 people in 1996. a joint venture between Vivendi France and Sameer of Kenya. 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.000 main telephone lines in use. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers.000 people. boasted 640 phone lines per 1. In 1999-2000. hydro equipment tends to be outdated and poorly maintained. Kenya experienced its worst drought in 40 years. a postal services corporation. In 1998. or approximately 9.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. power outages and blackouts have become increasingly common as a result of chronic drought. . there were 290.5 MW from a diesel plant in Nairobi. in comparison. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). total electricity production in Kenya equaled 4.74 percent of the power supply comes from hydroelectricity. Kencell. Further adding to the problem. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary.23 billion kWh. As of 1998. Since 82. Consequently. a telecommunication corporation. the government is eager to further develop both thermal and geothermal sources of power. The United States. Only 8 percent of the Kenyan population is connected to the national grid. Safaricom.

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

427 locations and then 6. . The provinces were subdivided into districts .612 sub locations.9. Districts are then subdivided into 497 divisions . 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 . The City of Nairobi enjoys the status of a full administrative province. The government supervises administration of districts and provinces. The divisions are then subdivided into 2.Under the old constitution. There were 69 districts as of 1999 census.

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

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

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

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

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

and hotels. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). the driver of previous years' growth.In 2006 Kenya’s GDP was about US$17. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22.0 percent. and other. Without ICT. Adjusted in purchasing power parity (PPP) terms. However.9 percent.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006.8 percent—similar to the population growth rate—and income per capita would have stagnated. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. per capita GDP in 2006 was about US$1.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). largely because of expansions in tourism. Economic growth in 2011-12 could range between 5.7 percent. The country’s real GDP growth picked up to 2. and may now be at a tipping point for robust growth. 14.200.1 2010/11 (%) 24. 24. government services. trade. telecommunications. 13.8 percent. 6. ICT innovations. ICT has been the main driver of Kenya's economic growth over the last decade. growing on average by 20 percent annually. growth in 2010 would have been a lackluster 2. according to 2004 estimates.0 percent.6 .39 billion. 25. EAC integration.0 percent if no shocks occur. compared with a sluggish 1. Kenya has seen the return of higher growth projected at 4. Public sector investments in infrastructure will help to stimulate this growth. Services. transport.9 percent. 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. transport and communications. Kenya's economy grew at an average of 3. was as follows: agriculture. and recent investments in infrastructure.3 and 6. and construction and a recovery in agriculture. have moderated while agriculture and industry are rebounding after two weak years.5 CHANGE (%) 46. restaurants. manufacturing. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. Since 2000.6 percent.7 percent. Five factors are creating a positive momentum: the new constitution. strong macroeconomic management. Real GDP is expected to continue to improve. Per capita GDP averages somewhat more than US$450 annually. GDP composition by sector. 15.

9 28.1 14.9 -15.0 3.5 -14.9 .1 -12.9 14.2 -0.4 1.9 15.9 7.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.8 2.7 15.0 13.

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

which helps in generating revenue for the country. Tourism has also helped in providing employment to a large number of people in Kenya. It has helped in preserving the cultural traditions. 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.Kenya tourism has had a favorable impact on the culture and tradition of the country. 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. . Large number of international travelers come to this country and embarks on adventure safaris. A large number of hotels are regularly coming up over here to provide accommodation to the tourists coming here for a holiday. music and dance of the country. Tourism generates revenue of nearly $500million per year. Tourism has made major contributions toward the country's GDP. over the past few years and has thus contributed towards the economic development of the country. customs. The hotel industry has also flourished because of this reason.

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

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

gold. according to the Mining Act. However. accounting for less than 1 percent of gross domestic product. In 2004 round wood removals came to 22.162. Apart from soda ash. salt. In addition. All minerals not extracted are government property. Pollution. Kenya’s total catch reported in 2004 was 128. Kenya’s mineral production in 2005 reached more than 1 million tons. . MINING AND MINERALS Kenya has no significant mineral endowment. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. overfishing. the chief minerals produced are limestone. 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. The mining and quarrying sector makes a negligible contribution to the economy.000 cubic meters. Thanks largely to rising soda ash output. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species.000 metric tons. and fluorspar. output from fishing has been declining because of ecological disruption.vegetables. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya.

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

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

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

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

are partially government-owned. the system consisted of 43 commercial banks (down from 48 in 2001). . GOVERNMENT BUDGET In 2006 Kenya’s revenues totaled US$4. almost 75 percent in agriculture. Kenya's labor force has shifted from the countryside to the cities. The number employed outside small-scale agriculture and pastoralism was about 6 million. and several score foreign-exchange bureaus.1 percent in 2006. including mortgage companies. In 2004 about 15 percent of the labor force was officially classified as unemployed. Most of the many smaller banks are family-owned and -operated. as Kenya becomes increasingly urbanized. Two of the four largest banks. In recent years. LABOR In 2006 Kenya’s labor force was estimated to include about 12 million workers. four savings and loan associations. and the other two are majority foreign-owned (Barclays Bank and Standard Chartered). As of late July 2004. while its estimated expenditures totaled US$5. several non-bank financial institutions.5 percent in 2004⎯had improved to –2.448 billion. Other estimates place Kenya’s unemployment much higher. even up to 40 percent. The Kenya banking system is supervised by the Central Bank of Kenya (CBK).FINANCIAL SERVICES Kenya is East and Central Africa's hub for financial services. the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK).377 billion. Government budget balance as a percentage of gross domestic product is a low –5. The Nairobi Stock Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. such as Nairobi.

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.VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development.K. Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3. 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. social scientists. . government officials and even international personalities like Baroness Chalker from the U.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy. Lee the former Prime Minister of Singapore.

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

This denied Kenyans the opportunity to progress economically . food manufacturer Cadbury and Toyota Tsusho Corporation. The payment for imports was about US$5.2 billion. yielding a trade deficit of about US$2. and Beiersdorf. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise.7 billion. with occasional tightening of restrictions to promote the Africanization of enterprises.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa.5 billion. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. In 2005 Kenya’s income from exports was about US$3. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. In 2006 Kenya’s external debt totaled US$6.5 billion. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. when the current account had a deficit of US$495 million. Foreign investors have been guaranteed ownership and the right to remit dividends. between 60 and 70 percent of industry is still owned from abroad. Other multinationals operating in Kenya includes British American Tobacco (BAT). Notwithstanding some restrictions.2. In 2006 Kenya had a current account deficit of US$1. However. This figure was a significant increase over 2005.7 billion. and capital. the German chemical manufacturer and producer of Nivea skincare products. . The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather.Kenya typically has a substantial trade deficit. In 2006 the current account balance as a percentage of gross domestic product was –4. Kenyan policies on foreign investment generally have been favorable since independence. the global shoe company headquartered in Canada. Important multinationals active in Kenya Barclays Bank. royalties. In the 1970s. Also present are Bata.

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

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

The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices. resulting in simmering discontent.0 43.A MACRO-ECONOMIC INDICATORS Comparison of E.6 39.3 5. In both Uganda and Kenya.9 6.0 532.1 4. The win effect of the high food and fuel costs have pushed up the cost of living across the region.7 6.5 6.7 4.567 5.5 6.1 3.8 3. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.6 5.4 6.8 7. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests. COMPARISON OF E. 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.6 4.8 6.5 11.104 16.6 4.7 528.5 .3 8.964 77.3 5.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 32.1 617.5 5.187 23.7 6.2 6.5 31.6 2.822 5.5 10.0 7.7 521.6 126 808.3 5.

5 13.0 9.937 3.318 .7 12.2 13.904 21.6 45.9 8.3 36.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 11.2 15.241 4.300 946 29.8 35.8 7.145 800 14.417 11.0 31.436 2.0 37.8 17.0 10.

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

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

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