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

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

fluorspar Uganda 10. pyrethrum. sisal. paper and light manufacturing. pineapples. US 5. wheat. beer.Titanium. Tanzania 9.8%.2%.8%. sugarcane. coffee.22 billio tea.1% : Estimate for 2007 = 7.1%. textiles. sisal. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. soda ash.16 billion (2010) at Market Price. soft drinks. hides and skins. corn. hides. grain and sugar milling.8%. $ 66. Egypt 4.600 Wildlife. pyrethrum. land (5% arable). n petroleum products. cement. cement. Coal tea. skins petroleum products.8% (2005): 2006 = 6. horticultural products.03 billion (Purchasing Power Parity.3% (2010)[68] Major markets (2010) . vehicle assembly. horticultural products. coffee. Netherlands 8. rice. dairy products. meat and meat products.7%.2% Per Capita Income (PPP)= $1. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures.Economic summary $32. Democratic Republic of the Congo 4. UK 8. 5.

Japan 4.2 billio machinery and transportation equipment.4%. Saudi Arabia 6. India 13.8%. South Africa 8. motor vehicles.Imports $11.7% (2010) iers .7%.6%.4%. UAE 9. iron and steel. n petroleum products. resins and plastics Major suppl China 13.

The terrain of the country gradually changes from the low-lying coastal plains to the Kenyan highlands. Other major lakes of the country include Lake Naivasha and Lake Nakuru.GEOGRAPHICAL LOCATION The Geography of Kenya gives one a complete idea about the location of the country and its physical features. flows across the country before draining into Lake Victoria. situated in the northeastern part of the country. the regions of the country are mostly arid and of semi desert nature. The valley basically dissects the Kenyan highlands into east and west. the geography of Kenya also includes its numerous forests also. The country is bordered by Sudan and Ethiopia in the north and Uganda to the west. To the east one can find a large number of rainforests. which forms a major part of the geography of Kenya. Apart from these. It lies between latitudes 5°N and 5°S. which is 5.367 km2 (224. To the southwest of the country lies Tanzania while to the west lies Lake Victoria and Uganda. Another major river of the county is the Ewaso Ngiro. which is extremely fertile. One can find a large number of lakes and rivers in this country. The highlands have a cool climate and are known for their fertile soil. The highest point of the country lies in Mount Kenya. It has a coral reef and is supported by a dry coastal plain that is covered by thorny bushes and savanna. The Kenyan coast is a low-lying area. Kenya is located on the eastern part of the African continent. It is one of the major agricultural regions of the country.199 meters high. The rivers Tana and Athi flows in the southeastern part of the country while Nzoia. found in the northeastern part of the country. On the western part of the country one can find Lake Victoria. At 580. In general. Some of the major forest areas of the country include the Kakamega Forest and the Mau Forest. Kenya is the world's forty-seventh largest country. that the country stretches from the sea level in the east to the snow capped mountain in the north. Yala and Gori. the other mountain ranges that one can find over here include Mount Elgon and Mount Kilimanjaro. One can find a large number of swamps in the Loraine Plain. Somalia lies to the east of the country while Indian Ocean borders the country in the southeastern part. Apart from this. and longitudes 34° and 42°E. The biggest feature of Kenya is the Great Rift Valley located in the central and western part of the country. In general one can say. There are a large number of rivers also in Kenya. On the northern part of the country one can find Lake Turkana.081 sq mi). .

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

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. Semi-urban . Kenya's capital.000 RELIGION The vast majority of Kenyans are Christian (83%). In addition. The upper part of Eastern Province is home to 10 percent of the country's Muslims.000 people.7%). one of the world's largest slums. due to rapid population growth from 2.000 and 1 million locals. is home to Kibera. Sizeable minorities of other faiths do exist (Muslim 11. who have played a key role in the local economy.9 million to 40 million over the last century. The UNHCR base in Dadaab in the north also currently houses around 500.7% regarding themselves as Protestant and 23. There is also a small group of Baha'is. Nairobi.5% as Roman Catholic. The shanty town is believed to house between 170. there is a large Hindu population in Kenya (around 50. indigenous beliefs 1. In addition. Western areas of Coast Province are mostly Christian.000). where they constitute the majority religious group.2%. with 47.POPULATION Kenya has a young population. Sixty percent of the Muslim population lives in Coast Province. 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. comprising 50 percent of the total population there. with 73% of residents aged below 30 years.

leopard. where Blue Wildebeest and other bovid participate in a large scale annual migration. 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. buffalo. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. including the Masai Mara. A significant population of other wild animals.and rural populations are less multilingual with many in remote villages speaking only their mother tongue. Up to 250.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season. rhinoceros and elephant. The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion. reptiles and birds can be found in the national parks and game reserves in the .

Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration.800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya. . searching for food and water supplies. The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part.country.5 million of these ungulates migrate a distance of 1. in a constant clockwise fashion. 11.

CLIMATE As Kenya has a diverse geography. the country has a dry climate. Rainfall is more on the eastern coast of the country. Rainfall is high in the coastal regions of the country. Most of the rains occur between April and July. the regions in this area are of semi-desert and arid character. Generally speaking. while the shorter one occurs from October to December. Nairobi.40 Celsius. Because of this reason. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. February and March are the hottest months of the country while July and August are the cooler months. The climate is also humid in the Lake Victoria basin.50 Celsius.20 Celsius maximum and 13. while Eldoret has a maximum temperature of 23. its climate and weather conditions are also varied. Summers are extremely hot over here and one is expected to wear light summer clothes. . Apart from the coastal areas. 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.30 Celsius to a minimum of 22. The coastal side of the country has a hot and humid climate. Kenya basically enjoys a tropical climate. The early hours of the morning are also cool and pleasant. while the nights are cooler and comfortable. It is one of the most spectacular events of the country. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. the capital of the country has a temperature of 25. During the daytime the weather is hot. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain.60 Celsius minimum.60 Celsius and a minimum temperature of 9. 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. Kenya receives a lot of sunshine all around the year. The long rainy season occurs from April to July.

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

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

commonly acknowledged as one of the toughest rallies . Kenya is home to the world famous Safari Rally. 2007. The country has also made valuable contributions in the field of film and theatre.500 m. making it Africa's most successful nation in the 2008 Olympics.000 m and the marathon. necklaces. A large number of film festivals and theatre festivals are held in this country. This has led to a suspension by FIFA which was lifted in March. especially in 800 m.The clothing is unique. with both the clubs and the national team winning various continental championships in the past decade. Kenyan hip-hop and different types of folk music and tribal music.000 m. it is home to different varieties of music. Infact. in addition to multiple types of folk music based on the variety over 40 regional languages. Kenya won several medals during the Beijing Olympics. Cricket is another popular and the most successful team sport. 1. Benga music. Road running and athletics are also popular. Kenya has a diverse assortment of popular music forms. Kenya has consistently produced Olympic and Commonwealth Games champions in various distance events. armlets. rugby. Jewelry is made from colorful beads and other articled and consists of headgears. Guitars and drums are the popular instruments used in Kenyan music. 3. earrings. Kenyan people are sports lovers. cricket and boxing are the most popular sports played in the country. five gold. Kenya has been a dominant force in women's volleyball within Africa. which include afro-fusion music. nose rings. Kenya was a regional power in soccer but its dominance has been eroded by wrangles within the Kenya Football Federation. Kenya has competed in the Cricket World Cup since 1996. They participated in the ICC Cricket World Cup 2011. anklets and others. It is extremely colorful and are heavily embroidered. But the country is known chiefly for its dominance in Middledistance and long-distance athletics. The people also love to wear heavy jewelry. five silver and four bronze. 10.000 m steeplechase. 5. In the motor rallying arena. Football. The clothes are usually red and black in color to show their love for mother Earth.

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

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. Films are a major source of entertainment in the country. . 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 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 Kenyan newspapers cover topics related to politics. regional news. Many internationally renowned films have been made in Kenya. The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal.

Department of State Country Commercial Guide 2000 . offers specialized facilities.868 kilometers are paved (1996 est. which runs from Mombasa through Nairobi to the Ugandan border. in addition to rehabilitating 20. including 21 that are paved. the Kenyan government recently launched the ambitious 'Roads 2000' project. There are 3 international airports. for example.000 miles connecting most parts of the country. warehousing. The deepwater port. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. however. In total. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. In the same year. and container terminal. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. is expected to cost US$245 million.1 million tons. Kenya has 230 airports. As a result of heavy operational losses. the busiest airport in Africa.). which serves more than 30 airlines providing scheduled services to cities around the world. In 1999.800 kilometers of highway. which has an annual average freight throughput of about 8. In collaboration with various donors. boasting 21 berths.000 kilometers of roads in 6 urban centers. According to the U. the largest is Nairobi's Jomo Kenyatta International Airport.S. Kenya's port of Mombasa. Wilson airport in Nairobi. The international and domestic air transport infrastructure is relatively well-developed in Kenya. there has been a steady deterioration in the KR's services. including cold storage. Accordingly. the state-owned . only 8. designed to create links between all major and minor roads. the KR would lease locomotives to private-sector operators. 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. Of the total 63. the current state of most roads is deplorable.INFRASTRUCTURE Kenya has an extensive road network of approximately 95. is the country's main seaport and serves most East and Central African nations. which will span approximately 3 years. handles light aircraft and general aviation. The project.

Kenya experienced its worst drought in 40 years.000 people. there were 290. power outages and blackouts have become increasingly common as a result of chronic drought. Only 8 percent of the Kenyan population is connected to the national grid. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). Safaricom.000 people in 1996. boasted 640 phone lines per 1.9 telephone lines per 1. As of 1998.000 main telephone lines in use.23 billion kWh. Consequently. In 1998.5 MW from a diesel plant in Nairobi. in comparison. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. a postal services corporation. a development that forced the KPLC to introduce an emergency rationing program in July 2000 under which electricity supplies have been cut off for 12 hours a day.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom 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. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. Further adding to the problem. and Postal Corporation of Kenya. the government is eager to further develop both thermal and geothermal sources of power. In 1999-2000. a telecommunication corporation. The United States. Since 82.74 percent of the power supply comes from hydroelectricity. Kencell. or approximately 9. total electricity production in Kenya equaled 4. a joint venture between Vivendi France and Sameer of Kenya. hydro equipment tends to be outdated and poorly maintained. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. .

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

. The government supervises administration of districts and provinces.612 sub locations. There were 69 districts as of 1999 census.9. The City of Nairobi enjoys the status of a full administrative province. The divisions are then subdivided into 2. 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 .427 locations and then 6. Districts are then subdivided into 497 divisions .Under the old constitution. Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). The provinces were subdivided into districts .

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

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

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

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

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

In 2006 Kenya’s GDP was about US$17. 14. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. transport and communications.8 percent. per capita GDP in 2006 was about US$1. and hotels.6 . 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. GDP composition by sector. government services. Five factors are creating a positive momentum: the new constitution. compared with a sluggish 1. was as follows: agriculture. 13. ICT innovations.1 2010/11 (%) 24. and construction and a recovery in agriculture. However.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002).39 billion.3 and 6.0 percent if no shocks occur. and other. the driver of previous years' growth. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. manufacturing. Public sector investments in infrastructure will help to stimulate this growth. Services. and recent investments in infrastructure. 6. Per capita GDP averages somewhat more than US$450 annually. Adjusted in purchasing power parity (PPP) terms.7 percent. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. have moderated while agriculture and industry are rebounding after two weak years. trade.0 percent. largely because of expansions in tourism.9 percent.9 percent. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). 24. Economic growth in 2011-12 could range between 5. The country’s real GDP growth picked up to 2. 15. Real GDP is expected to continue to improve. Without ICT.7 percent. ICT has been the main driver of Kenya's economic growth over the last decade. strong macroeconomic management. restaurants. 25. telecommunications.5 CHANGE (%) 46. growing on average by 20 percent annually. EAC integration. and may now be at a tipping point for robust growth.200. transport.8 percent—similar to the population growth rate—and income per capita would have stagnated. Since 2000. Kenya has seen the return of higher growth projected at 4. growth in 2010 would have been a lackluster 2.6 percent.0 percent. Kenya's economy grew at an average of 3. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. according to 2004 estimates.

9 -15.5 -14.1 -12.9 .2 -0.7 15.8 2.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.9 15.0 13.1 14.4 1.9 14.0 3.9 7.9 28.

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

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

consisting of 60–75 private companies. accounting for just 5 percent of export receipts in 2005. China. All coffee is marketed . The estates. or nearly 18% of total exports. Similar to the tea sector. after tourism and tea. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). and only 7 or 8 percent can be classified as first-class land. and Sri Lanka. and was fourth in the world. Tea exports were valued at $404. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. Coffee has declined in importance with depressed world prices. Production in 2001/02 amounted to 52. Coffee is Kenya's third leading foreign exchange earner. including forestry and fishing. Kenya is Africa's leading tea producer. The small-scale sector. In 2006 almost 75 percent of working Kenyans made their living on the land. horticultural produce. coffee is produced on many small farms and a few large estates.140 tons. with more than 260. coffee earnings totaled $91. compared with 80 percent in 1980.1 million in 2001. accounted for about 24 percent of GDP. and coffee. In 2005 agriculture. after the service sector.000 tons. is controlled by the parastatal Kenya Tea Development Authority. behind India. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. About one-half of total agricultural output is non-marketed subsistence production. Black tea is Kenya's leading agricultural foreign exchange earner. Production in 1999 reached 220.8 million.000 farmers. as well as for 18 percent of wage employment and 50 percent of revenue from exports.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. operate on their own. In 2001. The principal cash crops are tea. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports. The tea industry is divided between small farms and large estates.

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

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

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

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. and electricity imported from Uganda make up the rest of the supply. combined with the fact that the rocks that form the East African Rift System are about the same age. 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. when drought reduces water flow. 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. as well as the Turkwel Gorge Dam in the west.142 megawatts between 2001 and 2003. despite several decades of intermittent exploration. The stateowned Kenya Electricity Generating Company (KenGen).ENERGY The largest share of Kenya's electricity supply comes from hydroelectric stations at dams along the upper Tana River. established in 1997 under the name of Kenya Power Company. Although Kenya is yet to give a formal indication of where its exploration program. Kenya. handles transmission and distribution. geothermal facilities at Olkaria (near Nairobi). Kenya currently imports all crude petroleum requirements. Hydrocarbon reserves have yet to be discovered on Kenya's territory. is headed. in recent weeks. Kenya aims to build a nuclear power plant by 2017. Shortfalls of electricity occur periodically. suggests a high potential for oil in Kenya. while the Kenya Power and Lighting Company (KPLC). Optimism surrounding the Kenyan program is informed by recent oil discoveries in Uganda that. handles the generation of electricity. which is slated for privatization. Kenya's installed capacity stood at 1. east Africa's largest economy. A petroleum-fired plant on the coast. which now involves half a dozen companies.

It also had a license for block L2.overlooked region. an inland area in the Lamu basin. 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. 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. Reacting to the current speculation about prospects for an early oil find. said they had no reason to doubt that there was oil in Kenya.

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

four savings and loan associations. such as Nairobi. Two of the four largest banks. and several score foreign-exchange bureaus. Government budget balance as a percentage of gross domestic product is a low –5. the system consisted of 43 commercial banks (down from 48 in 2001).FINANCIAL SERVICES Kenya is East and Central Africa's hub for financial services. almost 75 percent in agriculture. In 2004 about 15 percent of the labor force was officially classified as unemployed.448 billion. Most of the many smaller banks are family-owned and -operated. several non-bank financial institutions. while its estimated expenditures totaled US$5.377 billion. as Kenya becomes increasingly urbanized. . and the other two are majority foreign-owned (Barclays Bank and Standard Chartered). The Nairobi Stock Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. even up to 40 percent. The number employed outside small-scale agriculture and pastoralism was about 6 million. In recent years. are partially government-owned. LABOR In 2006 Kenya’s labor force was estimated to include about 12 million workers. Kenya's labor force has shifted from the countryside to the cities.1 percent in 2006. GOVERNMENT BUDGET In 2006 Kenya’s revenues totaled US$4. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). including mortgage companies. Other estimates place Kenya’s unemployment much higher. the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK).5 percent in 2004⎯had improved to –2. As of late July 2004.

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

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

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

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

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

0 7.7 6.3 5.3 8.1 4.2 6.964 77.567 5.6 4.7 6.187 23.0 532.4 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 32.5 10.5 . resulting in simmering discontent.8 7.104 16.6 39.8 3.9 6.5 6.1 3.5 5.0 43. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.3 5.7 528. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets. In both Uganda and Kenya.5 31.6 2.5 11.6 4. COMPARISON OF E.7 521.7 4.6 126 808.1 617.6 5.8 6.822 5.3 5. All the four finance ministers have been careful to include in their budgets social interventions to cushion their citizens against the rising cost of living.A MACRO-ECONOMIC INDICATORS Comparison of E. The win effect of the high food and fuel costs have pushed up the cost of living across the region.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.

5 13.436 2.0 10.8 17.318 .8 7.937 3.0 11.7 12.0 31.145 800 14.3 36.8 35.9 8.904 21.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) 12.6 45.2 13.417 11.2 15.0 9.300 946 29.0 37.241 4.

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

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

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