Republic of Kenya
Jamhuri ya Kenya
THE CONTINENT OF AFRICA
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. The British Empire established the Protectorate in 1895. The capital. Kenya is a member of the East African Community. mostly the telecommunications sector. but European exploration of the interior began only in the 19th century. Agriculture is a major employer and the country traditionally exports tea and coffee. The independent Republic of Kenya was founded in December 1963. is a regional commercial hub. The economy of Kenya is the largest by GDP in East and Central Africa. and more recently fresh flowers to Europe. Nairobi.
. and contributes 62 percent of GDP. Nilo-Saharan. and Asiatic linguistic areas of Africa. The service industry is a major economic driver. known from 1920 as the Kenya Colony. European and Arab presence in Mombasa dates to the Early Modern period.state comprise the crossroads of the Niger-Congo.
paper and light manufacturing. Egypt 4. beer. cement.3% (2010)
Major markets (2010)
.8%.8% (2005): 2006 = 6. hides and skins. US 5. sisal. soda ash. Democratic Republic of the Congo 4.Titanium.8%. Coal tea. 5. grain and sugar milling. vehicle assembly. hides. n petroleum products.2% Per Capita Income (PPP)= $1. textiles. horticultural products. cement.600 Wildlife.8%. pyrethrum. land (5% arable). corn. pineapples. Tanzania 9.7%.Economic summary
$32.1% : Estimate for 2007 = 7. pyrethrum.1%. sugarcane.22 billio tea. rice. dairy products. coffee. 2010)
There exists an informal economy that is never counted as part of the official GDP figures. UK 8.03 billion (Purchasing Power Parity. meat and meat products.2%. horticultural products.16 billion (2010) at Market Price. $ 66. sisal. tourism
Annual growth rate Per capita income Natural resources Agricultural produc e
Trade in 2010 Exports
$5. wheat. Netherlands 8. fluorspar Uganda 10. skins petroleum products. coffee. soft drinks.
7%.8%.6%. motor vehicles.4%. Saudi Arabia 6. iron and steel. n petroleum products.Imports
$11. resins and plastics
Major suppl China 13.4%. UAE 9.7% (2010) iers
.2 billio machinery and transportation equipment. South Africa 8. India 13. Japan 4.
which is extremely fertile. Kenya is the world's forty-seventh largest country. and longitudes 34° and 42°E. Some of the major forest areas of the country include the Kakamega Forest and the Mau Forest.367 km2 (224. Yala and Gori. The highlands have a cool climate and are known for their fertile soil. Kenya is located on the eastern part of the African continent. It is one of the major agricultural regions of the country. It has a coral reef and is supported by a dry coastal plain that is covered by thorny bushes and savanna. The valley basically dissects the Kenyan highlands into east and west. found in the northeastern part of the country. The country is bordered by Sudan and Ethiopia in the north and Uganda to the west. the other mountain ranges that one can find over here include Mount Elgon and Mount Kilimanjaro. There are a large number of rivers also in Kenya.199 meters high. One can find a large number of swamps in the Loraine Plain.GEOGRAPHICAL LOCATION
The Geography of Kenya gives one a complete idea about the location of the country and its physical features. The terrain of the country gradually changes from the low-lying coastal plains to the Kenyan highlands. On the western part of the country one can find Lake Victoria. the geography of Kenya also includes its numerous forests also. One can find a large number of lakes and rivers in this country. that the country stretches from the sea level in the east to the snow capped mountain in the north. Apart from this. The rivers Tana and Athi flows in the southeastern part of the country while Nzoia. situated in the northeastern part of the country. The highest point of the country lies in Mount Kenya. To the east one can find a large number of rainforests. At 580. which forms a major part of the geography of Kenya.081 sq mi). It lies between latitudes 5°N and 5°S. Apart from these. To the southwest of the country lies Tanzania while to the west lies Lake Victoria and Uganda. In general one can say. Another major river of the county is the Ewaso Ngiro. the regions of the country are mostly arid and of semi desert nature. In general. Other major lakes of the country include Lake Naivasha and Lake Nakuru. The biggest feature of Kenya is the Great Rift Valley located in the central and western part of the country. On the northern part of the country one can find Lake Turkana. The Kenyan coast is a low-lying area. flows across the country before draining into Lake Victoria. Somalia lies to the east of the country while Indian Ocean borders the country in the southeastern part.
. which is 5.
. tea and sisal industry. Several foreign companies have factories based in and around the city. The Nairobi province differs in several ways from other Kenyan regions. CocaCola. Airtel and Cisco Systems relocated their African headquarters to the city. It has only one local authority. During Kenya's colonial period. The county is entirely urban. Nairobi is currently the 12th largest city in Africa. It is ranked 4th in terms of trading volume and capable of making 10 million trades a day. Nairobi is now one of the most prominent cities in Africa politically and financially. The city and its surrounding area also forms the Nairobi County. General Motors. including the United Nations Environment Programme (UNEP) and the main coordinating and headquarters for the UN in Africa & Middle East. Nairobi is also the capital of the Nairobi Province and of the Nairobi District. one of Africa's largest. The NSE was officially recognized as an overseas stock exchange by the London Stock Exchange in 1953. The Nairobi Stock Exchange (NSE) is one of the largest in Africa and the second oldest exchange on the continent. the city became a centre for the colony's coffee. General Electric. Home to thousands of Kenyan businesses and over 100 major international companies and organisations. the United Nations Office in Nairobi (UNON). These include Goodyear.NAIROBI
Nairobi is the capital and largest city of Kenya. In 2007. In 2010. with a current estimated population of about 3 million. Nairobi is the most populous city in East Africa. including the population of its suburbs. Google. Nairobi is an established hub for business and culture. 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). along with the new constitution. Nairobi was renamed a County. Young & Rubicam. Nairobi Province was not divided into "districts" until 2007. which translates to "the place of cool waters". However. Founded in 1899 as a simple rail depot on the railway linking Mombasa to Uganda. The United Nations Office at Nairobi hosts UNEP and UN-Habitat headquarters. The City of Nairobi enjoys the status of a full administrative County/Region. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi. when three districts were created. Nairobi City Council.THE CAPITAL CITY . it is popularly known as the "Green City in the Sun" and is surrounded by several expanding villa suburbs. Toyota Motors. and Coca Cola. Nairobi is the regional headquarters of several international companies and organizations.
000). where they constitute the majority religious group.7% regarding themselves as Protestant and 23. with 47. one of the world's largest slums.000
The vast majority of Kenyans are Christian (83%). In addition.5% as Roman Catholic. is home to Kibera.000 people. with 73% of residents aged below 30 years.000 and 1 million locals. comprising 50 percent of the total population there. Kenya's capital.7%). The shanty town is believed to house between 170. There is also a small group of Baha'is. Sixty percent of the Muslim population lives in Coast Province. Nairobi. The UNHCR base in Dadaab in the north also currently houses around 500. there is a large Hindu population in Kenya (around 50. Semi-urban
. The upper part of Eastern Province is home to 10 percent of the country's Muslims. who have played a key role in the local economy.2%. due to rapid population growth from 2. Sizeable minorities of other faiths do exist (Muslim 11.9 million to 40 million over the last century.
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. Western areas of Coast Province are mostly Christian. indigenous beliefs 1. In addition.POPULATION
Kenya has a young population. 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.
The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion. where Blue Wildebeest and other bovid participate in a large scale annual migration. buffalo. Up to 250. including the Masai Mara.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season.
Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. leopard. A significant population of other wild animals. reptiles and birds can be found in the national parks and game reserves in the
.and rural populations are less multilingual with many in remote villages speaking only their mother tongue. European and Arab) Percentage 22% 14% 13% 12% 11% 6% 6% 15% 1%
Kikuyu woman in traditional attire
Ke nya has considerable land area devoted to wildlife habitats. rhinoceros and elephant.
Kenya is the setting for one of the Natural Wonders of the World – the
great wildebeest migration. The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part.
.5 million of these ungulates migrate a distance of 1. searching for food and water supplies. in a constant clockwise fashion.country. 11.800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya.
Kenya basically enjoys a tropical climate. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. the regions in this area are of semi-desert and arid character. February and March are the hottest months of the country while July and August are the cooler months. During the daytime the weather is hot. Nairobi. Most of the rains occur between April and July. The long rainy season occurs from April to July. The temperature in the coastal town of Mombasa ranges from a maximum of 30.30 Celsius to a minimum of 22. Rainfall is more on the eastern coast of the country. the capital of the country has a temperature of 25. Apart from the coastal areas. Summers are extremely hot over here and one is expected to wear light summer clothes. Kenya receives a lot of sunshine all around the year. the country has a dry climate. The period ranging from June to September represent the migration period of the wildlife found in the country.20 Celsius maximum and 13. The coastal side of the country has a hot and humid climate. The climate is also humid in the Lake Victoria basin.
. while Eldoret has a maximum temperature of 23. Rainfall is high in the coastal regions of the country. Because of this reason.50 Celsius. its climate and weather conditions are also varied. It is one of the most spectacular events of the country. 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. while the nights are cooler and comfortable. Generally speaking. The early hours of the morning are also cool and pleasant.40 Celsius.CLIMATE
As Kenya has a diverse geography.60 Celsius minimum. while the shorter one occurs from October to December.60 Celsius and a minimum temperature of 9. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country.
Secondary and tertiary education enrollment has not increased proportionally because payment is still required for attendance. other professional training or employment. inadequate health workers. the Government of Kenya announced the introduction of free primary education. At the end of primary education. Life expectancy is estimated at between 47 and 55 years. HIV/AIDS. Too many women and children still die at birth or within the first year of life.
The country's literacy level stands at 85% of the whole population. weak management and poor leadership in most public health facilities are largely to blame. pneumonia. Kenya's education system consists of early childhood education. primary school enrollment increased by about 70%. Private schooling also exists in Kenya. There are a large number of HIV-positive people in Kenya. there are a number of international schools catering for various overseas educational systems. secondary and college. This practice is however on the decline as the country becomes more modernised and the practice was also banned in the country in 2011.
. primary. Preventable diseases such as malaria. there are many private schools in the country. diarrhea and malnutrition are the major child killers and responsible for much morbidity. mainly in urban areas. In 2007 the government issued a statement declaring that from 2008. For those who proceed to secondary level. The Joint Admission Board (JAB) is responsible for selecting students joining the public universities. More die before their 5th birthday. As a result. there is a national examination at the end of Form Four – the Kenya Certificate of Secondary Education (KCSE).HEALTH
Despite major achievements in the health sector. which determines those who proceed to secondary school or vocational training.49 children per woman in 2012. Other than the public schools. Maternal mortality is high. Weak policies. The total fertility rate in Kenya is estimated to be 4. In January 2003. with the government footing all tuition fees. which determines those proceeding to the universities. Kenya still faces many challenges. Similarly. pupils sit the Kenya Certificate of Primary Education (KCPE). partly because of female genital mutilation. secondary education would be heavily subsidized.
music and dance. art. However. The Bantu language speakers. the capital of the country. their customs. Where on one hand the different tribes of the country have maintained their unique style of clothing. which adds to the unique culture of the country and its people. traditions. there are a large number of other tribes like the Kikuyu.CULTURE
Culture in Kenya is a mix of diverse cultures and traditions. who have their own distinct culture. Kenya culture is extremely unique and has an identity of its own. The main culture of the country is the Swahili Culture and the Maasai culture. Gusii. who settled on the coastal part of the country. Culture of Kenya is a mix of both modern and traditional cultures. were responsible for creating and spreading this culture. The Maasai culture. a semi-nomadic tribe known for their clothes. and Luo. was spread by the Maasai. society. Culture of Kenyais amply reflected through its people. Kamba. which is the most well known culture of the country. Apart from this. The Swahili Culture is the oldest culture of the country. jewellery and distinct custom.
. Nairobi. the culture of the country has a strong European and Arabian influence. on the other hand they have also adopted the cultural patterns of modern society. Owing to its colonial history. dance and music. Luhya. inspite of such strong foreign influence. is the seat of the country's culture.
Cricket is another popular and the most successful team sport. commonly acknowledged as one of the toughest rallies
. Kenya is home to the world famous Safari Rally.000 m and the marathon. earrings. The people also love to wear heavy jewelry. It is extremely colorful and are heavily embroidered. which include afro-fusion music. cricket and boxing are the most popular sports played in the country. Kenyan hip-hop and different types of folk music and tribal music. In the motor rallying arena. especially in 800 m.The clothing is unique. 10. A large number of film festivals and theatre festivals are held in this country. Road running and athletics are also popular. They participated in the ICC Cricket World Cup 2011. 5. But the country is known chiefly for its dominance in Middledistance and long-distance athletics. with both the clubs and the national team winning various continental championships in the past decade. Benga music. Kenyan people are sports lovers. The clothes are usually red and black in color to show their love for mother Earth. nose rings. Kenya was a regional power in soccer but its dominance has been eroded by wrangles within the Kenya Football Federation. Kenya won several medals during the Beijing Olympics. anklets and others.000 m steeplechase. Football. Kenya has been a dominant force in women's volleyball within Africa.500 m. Jewelry is made from colorful beads and other articled and consists of headgears. five gold. This has led to a suspension by FIFA which was lifted in March. Guitars and drums are the popular instruments used in Kenyan music. in addition to multiple types of folk music based on the variety over 40 regional languages. five silver and four bronze.000 m. 1. Kenya has a diverse assortment of popular music forms. The country has also made valuable contributions in the field of film and theatre. armlets. 3. Kenya has consistently produced Olympic and Commonwealth Games champions in various distance events. 2007. it is home to different varieties of music. making it Africa's most successful nation in the 2008 Olympics. Infact. rugby. Kenya has competed in the Cricket World Cup since 1996. necklaces.
There are many nightclubs. 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. discos. Many concerts are also held in Kenya. Numerous television channels broadcast myriad programs that cater to various types of people in the country. The nightclubs and hotels of Kenya generally organize live music bands during evening and night. films and newspapers. Nightlife in Kenya is also highly active with various nightlife entertainment facilities for the tourists. there are also other entertainment sources in Kenya. The clubs and hotels are busier during the weekends. but is also spread to the various other regions in Kenya.
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. These include various media sources like radio. bars and pubs in Nairobi as well as in Mombasa. national and local
. The disc jockeys churn out lively and catchy music for the visitors. Kenya Entertainment in not only restricted to the capital city of the country. Culture of Kenya is a conglomeration of diverse cultures belonging to the different tribal groups and the people of the country.in the world. television. which provide complete entertainment to both the local people and the tourists. The Kenya Broadcasting Corporation provides various radio networks at the regional. Apart from the various nightclubs and casinos. Many people gather in these places to get a flavor of live band music. 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. especially during the festive season in the country.
sports.level. The Kenyan newspapers cover topics related to politics. Some of the renowned newspapers that are published and circulated in Kenya are as follows: • • • • Kenya Times Standard Kenya East African Standard Kenya Daily Nation Kenya
Last but not the least is Kenya films. Films are a major source of entertainment in the country. The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal.
. 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. regional news. KBC English Radio Service and KBC Kiswahili Radio Service are the two radio stations that operate under the National Radio Network in Kenya. entertainment and many more. Many internationally renowned films have been made in Kenya.
Kenya has an extensive road network of approximately 95. boasting 21 berths. handles light aircraft and general aviation. designed to create links between all major and minor roads. The deepwater port. the state-owned
. offers specialized facilities. however. As a result of heavy operational losses.800 kilometers of highway. the KR would lease locomotives to private-sector operators. In total. and container terminal. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. which serves more than 30 airlines providing scheduled services to cities around the world. Kenya has 230 airports.868 kilometers are paved (1996 est. There are 3 international airports. In 1999. the Kenyan government recently launched the ambitious 'Roads 2000' project.S. only 8. Of the total 63. which has an annual average freight throughput of about 8. including 21 that are paved. the busiest airport in Africa. the largest is Nairobi's Jomo Kenyatta International Airport. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. for example. which runs from Mombasa through Nairobi to the Ugandan border. The project. Kenya's port of Mombasa. Department of State Country Commercial Guide 2000 . Wilson airport in Nairobi. 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.1 million tons. In collaboration with various donors.000 miles connecting most parts of the country. in addition to rehabilitating 20. Accordingly. is expected to cost US$245 million. In the same year. According to the U. The international and domestic air transport infrastructure is relatively well-developed in Kenya. is the country's main seaport and serves most East and Central African nations. warehousing. including cold storage. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. the current state of most roads is deplorable. which will span approximately 3 years.).000 kilometers of roads in 6 urban centers. there has been a steady deterioration in the KR's services.
74 percent of the power supply comes from hydroelectricity. there were 290.
.23 billion kWh. The United States. a telecommunication corporation. Kencell. total electricity production in Kenya equaled 4.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary.000 people in 1996. 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. Since 82. As of 1998. Consequently. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. 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. in comparison. and Postal Corporation of Kenya. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. In 1999-2000. Safaricom.5 MW from a diesel plant in Nairobi. boasted 640 phone lines per 1. Further adding to the problem.000 people. hydro equipment tends to be outdated and poorly maintained. Only 8 percent of the Kenyan population is connected to the national grid.9 telephone lines per 1. In 1998. or approximately 9.000 main telephone lines in use. power outages and blackouts have become increasingly common as a result of chronic drought. Kenya experienced its worst drought in 40 years. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). a joint venture between Vivendi France and Sameer of Kenya. the government is eager to further develop both thermal and geothermal sources of power. a postal services corporation.
combating corruption. and rewriting its constitution. most of which were judged free and fair by international observers. Central
2. which had ruled the country since independence to the National Rainbow Coalition (NARC). a coalition of political parties. the new ruling coalition promised to focus its efforts on generating economic growth. Under the presidency of Mwai Kibaki. and of a multi-party system. Nairobi 6. Nyanza 8. A few of these promises have been met
The provinces are: 1. whereby the President is both the head of state and head of government. Central 3. 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. improving education. Executive power is exercised by the government. Rift Valley
Kenya is a presidential representative democratic republic. The Judiciary is independent of the executive and President Mwai the legislature. Kibaki Kenya has maintained remarkable stability despite changes in its political system and crises in neighboring countries. In December 2002. Coast 4. Kenyans held democratic and open elections. Legislative power is vested in both the government and the National Assembly. Eastern 5.
427 locations and then 6. Western
Kenya is divided into 47 semi-autonomous counties that will be headed by governors who will be elected in the first general election under the new constitution in August 2012 . The divisions are then subdivided into 2.Under the old constitution.
. The government supervises administration of districts and provinces. Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). The provinces were subdivided into districts . Districts are then subdivided into 497 divisions .612 sub locations. There were 69 districts as of 1999 census. The City of Nairobi enjoys the status of a full administrative province.9.
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. the three East African countries signed a Customs Union Agreement. transport. seen by strong performance in tourism.an important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. As of May 2010. economic prospects are positive with 4–5% GDP growth expected. East and central Africa's biggest economy has posted tremendous growth in the service sector. which resulted in East Africa's most profitable company – Safaricom. Tanzania.9% growth in 2011. has led to their revival due to massive private investment. especially the vital tea sector. Unfortunately. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry. the economy has seen much expansion. The EAC's objectives include harmonizing tariffs and customs regimes. and now contributes 62 percent of GDP. 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 .
. kerosene and cooking oil. following the chaos which engulfed the country. construction and a recovery in agriculture. and improving regional infrastructures. The World Bank predicts growth of 4% in 2010 and a potential of 4. In March 2004. higher education and telecommunications. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour. However. and Uganda re-established the East African Community (EAC).ECONOMY
Despite western donors' early disappointment with the government. In March 1996. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. telecommunications. free movement of people. largely because of expansions in tourism. But this changed immediately after the disputed presidential election of December 2007. and acceptable post-drought results in agriculture. the Presidents of Kenya. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company.
The Kenya banking system is supervised by the Central Bank of Kenya (CBK). Kenya is East and Central Africa's hub for financial services. The Nairobi Securities Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. the system consisted of 43 commercial banks (down from 48 in 2001). several non-bank financial institutions. As of late July 2004.
. including mortgage companies.The more efficient and lucrative technology-knowledge-and-skill-based service. four savings and loan associations. and several score foreign-exchange bureaus. 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.
a portrait of Daniel arap Moi replaced Kenyatta until 2005. originally appeared on the obverse of all of independent Kenya's coins. In 1985. 10. In 1986. COINS The first coins were issued in 1966 in denominations of 5. Between 1967 and 1978. Twenty-five cents coins were not minted after 1969. 10.
. the first president of Kenya. followed by 10 shillings in 1994 and 20 shillings in 1998. 2 shillings coins were last minted in 1971. 10 and 20 shillings. and 1 and 2 shillings. when the central bank introduced a new coin series that restored the portrait of Kenyatta. 5 shillings coins were introduced. 20. 5 shillings notes were replaced by coins in 1985. 50 and 100 shillings. The coins are 50 cents and 1 shilling in stainless steel and bimetallic coins of 5.CURRENCY. the portrait of Jomo Kenyatta. 200 shillings notes were introduced. New coins with the image of Kenyatta were issued in 2005. In 1980. 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). 25 and 50 cents. the Central Bank of Kenya issued notes in denominations of 5. followed by 500 shillings in 1988 and 1000 shillings in 1994. EXCHANGE RATE. with the same happening to 10 and 20 shillings in 1994 and 1998. BANKNOTES In 1966. AND INFLATION
The Kenyan shilling replaced the East African shilling in 1966 at par.
9 percent in December of 2011. 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. and circulated for a time. 10. A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50.As with the coins. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978. after Mwai Kibaki replaced Moi as president. with Daniel arap Moi's portrait replacing him in 1980. 5. 100. including increasing interest rate and money market operations. The issue of 12 December 2003 commemorates the "40 years of Independence 1963-2003". 200. 500 and 1000 shilling. EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012. In 2003. and 20 shilling notes from the 1978 series with Kenyatta's picture that had been in storage were issued. INFLATION The inflation rate in Kenya was last reported at 18. The banknotes are printed in Nairobi by De La Rue.
GROSS DOMESTIC PRODUCT (GDP)
Kenya’s economic performance since independence
ICT innovations. Kenya has seen the return of higher growth projected at 4. and recent investments in infrastructure. per capita GDP in 2006 was about US$1.9 percent.7 percent.200. according to 2004 estimates. 24. manufacturing. transport. have moderated while agriculture and industry are rebounding after two weak years. and hotels. 6. Per capita GDP averages somewhat more than US$450 annually.3 and 6. Kenya's economy grew at an average of 3. GDP composition by sector. 15. Without ICT.5 CHANGE (%) 46. ICT has been the main driver of Kenya's economic growth over the last decade.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). transport and communications.8 percent—similar to the population growth rate—and income per capita would have stagnated. strong macroeconomic management.6 percent. Public sector investments in infrastructure will help to stimulate this growth.In 2006 Kenya’s GDP was about US$17. government services. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. largely because of expansions in tourism.0 percent. Services. and other. 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. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence.0 percent if no shocks occur. EAC integration. telecommunications. Since 2000.6
. Five factors are creating a positive momentum: the new constitution. and construction and a recovery in agriculture. Real GDP is expected to continue to improve. However.7 percent. Adjusted in purchasing power parity (PPP) terms. 25. Economic growth in 2011-12 could range between 5. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22.0 percent. restaurants. was as follows: agriculture. 14.1 2010/11 (%) 24. 13.39 billion.8 percent. compared with a sluggish 1.9 percent. The country’s real GDP growth picked up to 2. growth in 2010 would have been a lackluster 2. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). and may now be at a tipping point for robust growth. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. trade. growing on average by 20 percent annually. the driver of previous years' growth.
3.9 -15.4 1.8 2.9 28.0 13.1 -12.9 15.1 14.5 -14.9
7.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications
4.9 14.2 -0.
leopards. one can pay a visit to the cities of Lamu. Tourism in Kenya is mainly centered around two major geographical areas of the country. Blue Market. is dominated by tourism. One can check out the elephants. One can pay a visit to the Shela Beach in the city of Lamu. Railway Museum. amazing wildlife and diverse culture has been attracting tourists from all across the world every year. 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. Travelers coming here for a holiday can take a look at breathtaking view of its scenery and picturesque landscapes.INDUSTRY IN KENYA
Kenya's services sector.
. cheetahs. which contributes about 63 percent of GDP. One can take a look at the Laikipia Plateau in east Kenya or pay a visit to the Taita Hills in the southern part of the country. giraffes. Nairobi. Some of the major wildlife sanctuaries that one can pay a visit include the Amboseli National Reserve. Mombassa. Nakuru. Kenya has over the years become a major tourist destination of the world. rhinoceros's. The country is home to a large number of natural reserves also. Kisumu. Eldoret and others. Tsavo East National Park and others. When on a vacation to Kenya. one can pay a visit to the beaches on the coast of the Indian Ocean. which include the beaches on the southern coast and the numerous national parks. The cities are known for their history and one can pay a visit to the numerous tourist attractions found over here. Watamu National marine Park and others. lions and a variety of birds like falcons and others in these natural reserves. which includes the Times Tower. Bedsides these. Chyulu Hills National Park. The country with its breath taking scenery.
which helps in generating revenue for the country. It has helped in preserving the cultural traditions. Tourism has also helped in providing employment to a large number of people in Kenya.
. music and dance of the country. 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. Tourism has made major contributions toward the country's GDP. Tourism has inculcated environmental awareness amongst them and has also widened their outlook.Kenya tourism has had a favorable impact on the culture and tradition of the country. Kenya tourism is a rapidly growing industry and is all set to help in making valuable contributions towards the development of the country. A large number of hotels are regularly coming up over here to provide accommodation to the tourists coming here for a holiday. Tourism is a major industry of Kenya. Tourism generates revenue of nearly $500million per year. over the past few years and has thus contributed towards the economic development of the country. The hotel industry has also flourished because of this reason. customs.
and Sri Lanka.8 million. The small-scale sector. Tea exports were valued at $404. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. and coffee. accounted for about 24 percent of GDP. behind India. operate on their own. Production in 2001/02 amounted to 52. Kenya is Africa's leading tea producer.1 million in 2001. including forestry and fishing. horticultural produce. The principal cash crops are tea. consisting of 60–75 private companies. as well as for 18 percent of wage employment and 50 percent of revenue from exports. About one-half of total agricultural output is non-marketed subsistence production. and was fourth in the world. compared with 80 percent in 1980. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP).AGRICULTURE
The agricultural sector continues to dominate Kenya’s economy. The tea industry is divided between small farms and large estates. Production in 1999 reached 220. Similar to the tea sector. All coffee is marketed
. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports.000 farmers. is controlled by the parastatal Kenya Tea Development Authority. Black tea is Kenya's leading agricultural foreign exchange earner. and only 7 or 8 percent can be classified as first-class land. China. Coffee has declined in importance with depressed world prices. In 2001.000 tons. coffee is produced on many small farms and a few large estates. accounting for just 5 percent of export receipts in 2005. after tourism and tea. coffee earnings totaled $91. or nearly 18% of total exports. In 2006 almost 75 percent of working Kenyans made their living on the land. after the service sector.140 tons. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. with more than 260. The estates. Coffee is Kenya's third leading foreign exchange earner. In 2005 agriculture.
7 percent. sisal.8 million people because of one of Kenya’s intermittent droughts. output contracted as coffee production was slow to recover from the prolonged drought in early 2009. However. 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. and corn are grown in the lower-lying areas. and passion fruit. Kenyan horticulture has become prominent in recent years. cabbages. Although coffee is benefitting from an increase in global prices. cashew nuts. Tea. A combination of volume and price increases will see the sector perform even better than in 2008. Production downturns periodically necessitate food aid—for example. carnations. a flower that contains a substance used in pesticides. avocados. The sector continued to be affected by a muted recovery in Europe. which had previously been the best year for the sector. Kenya is the world's largest producer and exporter of pyrethrum. snow peas. Kenya's Agriculture Performance in 2010: The agriculture sector has been rebounding in 2010 and is expected to grow by 5 percent. pineapples. mangoes. The pyrethrum extract. corn. and wheat are grown in the fertile highlands. driving coffee prices to historical lows. one of the most successful agricultural production regions in Africa. when the sector contracted by a combined 6. especially the fruits and
. The suspension of the economic provisions of the International Coffee Agreement in July 1989 disrupted markets temporarily. Horticulture exports contracted for the third consecutive year. and lilies. and included green beans. pyrethrum. Fresh produce accounted for about 30% of horticultural exports. sugarcane. known as pyrethrin. Favorable weather conditions and specific policy interventions under the government's economic stimulus program helped turn the sector around. This is an important development after two consecutive years of decline. sisal.through the parastatal Coffee Board of Kenya. cotton. The performance of Kenya's main agriculture exports in 2010 was strongest for tea which recovered rapidly from 2009 weather conditions. The production of major food staples such as corn is subject to sharp weather-related fluctuations. Coconuts. onions. Livestock predominates in the semi-arid savanna to the north and east. coffee. statice. in 2004 aid for 1. Flowers exported include roses. is derived from the flower's petals. astromeria. and is now the third leading agricultural export. following tea and coffee.
Apart from soda ash. according to the Mining Act.
MINING AND MINERALS
Kenya has no significant mineral endowment. overfishing. salt. However. Kenya’s mineral production in 2005 reached more than 1 million tons.000 cubic meters. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species. output from fishing has been declining because of ecological disruption.000 metric tons. Pollution.
. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. accounting for less than 1 percent of gross domestic product. gold. the chief minerals produced are limestone.vegetables. All minerals not extracted are government property. In 2004 round wood removals came to 22. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. The mining and quarrying sector makes a negligible contribution to the economy. 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. and fluorspar. Kenya’s total catch reported in 2004 was 128. Thanks largely to rising soda ash output. In addition.162.
beer production. and Sri Lanka. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years.
. mainly for the domestic market. Kenya has an oil refinery that processes imported crude petroleum into petroleum products. The tea industry is divided between small farms and large estates.. is dominated by food-processing industries such as grain milling. vehicles from kits. China. and was fourth in the world. consisting of 60–75 private companies. concentrated around the three largest urban centers. 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. behind India. and sugarcane crushing. The estates. Kenya is Africa's leading tea producer. is controlled by the parastatal Kenya Tea Development Authority. The small-scale sector. Industrial activity. including the removal of duty on capital equipment and other raw materials. Mombasa.000 farmers. manufacturing still accounts for only 14 percent of gross domestic product (GDP). There is a vibrant and fast growing cement production industry. and the fabrication of consumer goods.g.INDUSTRY AND MANUFACTURING
Although Kenya is the most industrially developed country in East Africa.S. and farm
implements. Kenya's clothing sales to the United States increased from US$44 million to US$270 million. In addition. Nairobi. or nearly 18% of total exports. Tea exports were valued at $404. Since AGOA took effect in 2000. and Kisumu. motor-vehicle parts. Black tea is Kenya's leading agricultural foreign exchange earner. operate on their own. with more than 260.1 million in 2001. e.
Kenya's installed capacity stood at 1. Petroleum accounts for 20 to 25 percent of the national import bill. geothermal
facilities at Olkaria (near Nairobi). To become energy sufficient.ENERGY
The largest share of Kenya's electricity supply comes from hydroelectric stations at dams along the upper Tana
River. despite several decades of intermittent exploration. and electricity imported from Uganda make up the rest of the supply. handles the generation of electricity. as well as the Turkwel Gorge Dam in the west. Kenya. suggests a high potential for oil in Kenya. Optimism surrounding the Kenyan program is informed by recent oil discoveries in Uganda that. which is slated for privatization. east Africa's largest economy. The stateowned Kenya Electricity Generating Company (KenGen). Shortfalls of electricity occur periodically.142 megawatts between 2001 and 2003. Kenya aims to build a nuclear power plant by 2017.
coast. is headed. established in 1997 under the name of Kenya Power Company. which now involves half a dozen companies. handles transmission and distribution. when drought reduces water flow. Gas discoveries in Tanzania and significant proven oil reserves along the border between Uganda and DR Congo have also encouraged interest in the once largely
. while the Kenya Power and Lighting Company (KPLC). Hydrocarbon reserves have yet to be discovered on Kenya's territory. Although Kenya is yet to give a formal indication of where its exploration program. in recent weeks. Kenya currently imports all crude petroleum requirements. 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. has no strategic reserves and relies solely on oil marketers' 21-day oil reserves required under industry regulations. combined with the fact that the rocks that form the East African Rift System are about the same age.
with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects. senior geologists at Uganda's Energy Ministry who were at the forefront of the country's search for oil two decades ago. 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. It also had a license for block L2.
. said they had no reason to doubt that there was oil in Kenya. an inland area in the Lamu basin.overlooked region. Reacting to the current speculation about prospects for an early oil find.
The deal allowed for China's state-controlled offshore oil and gas company. plans to sink two test wells in north. Petroleum Commissioner Martin Heya said.western Kenya this year and early 2012. (AFR) “Big companies like Tullow coming into the country automatically creates more interest. Tullow Oil Plc (TLW). which is just beginning to drill its first exploratory wells on the borders of Sudan and Somalia and in coastal waters.”
. as it provides credibility to potentially finding more discoveries. 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.000 in north and central Africa. with an estimated 2.mailed response to questions today. (APA) may drill offshore next year.OIL EXPLORATION
Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya. the London-based explorer with the most licenses in Africa.500 in the west of the continent and 19. Spending on exploration and drilling is estimated at $126 million. an oil and gas analyst at Renaissance Capital Ltd. in London. Heya said in an interview in Nairobi.K. and other companies may follow as more plans are approved.” Exploration companies are increasing spending in Kenya as neighboring Uganda. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest. and there has been no formal estimate of the possible reserves. the faster a discovery will be made. . said an e. he said.” Heya said. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy. “The more wells that are drilled. That compares with 480 in East Africa. the Kenyan capital.S. CNOOC. while U. to prospect for oil in Kenya.5 billion barrels of oil reserves. prepares to become a crude producer next year when Tullow expects to start pumping from the Lake Albert Basin. “I wouldn’t be surprised if the Kenyan government tries to capitalize on it.” Dragan Trajkov.based explorer Afren Plc. No oil has been discovered yet. according to data from U. Only 32 exploratory wells have been drilled in Kenya.-based Apache Corp. 14.
and the other two are majority foreign-owned (Barclays Bank and Standard Chartered). Government budget balance as a percentage of gross domestic product is a low –5. the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK).5 percent in 2004⎯had improved to –2.
In 2006 Kenya’s labor force was estimated to include about 12 million workers. even up to 40 percent.377 billion. almost 75 percent in agriculture. Two of the four largest banks.FINANCIAL SERVICES
Kenya is East and Central Africa's hub for financial services. are partially government-owned. Other estimates place Kenya’s unemployment much higher. including mortgage companies.1 percent in 2006. while its estimated expenditures totaled US$5.
In 2006 Kenya’s revenues totaled US$4. the system consisted of 43 commercial banks (down from 48 in 2001). such as Nairobi. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). Most of the many smaller banks are family-owned and -operated. and several score foreign-exchange bureaus. In 2004 about 15 percent of the labor force was officially classified as unemployed. As of late July 2004. several non-bank financial institutions. The Nairobi Stock Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization.448 billion. Kenya's labor force has shifted from the countryside to the cities. four savings and loan associations. as Kenya becomes increasingly urbanized. In recent years. The number employed outside small-scale agriculture and pastoralism was about 6 million.
and Mr. Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3. Lee the former Prime Minister of Singapore. social scientists.VISION 2030
In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development. It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy. Vision 2030 will be steered by the National Economic and Social Council which is chaired by the President and brings together CEOs of top businesses.K. government officials and even international personalities like Baroness Chalker from the U.
Despite AGOA. a nonaligned country. Among the early steps toward integration is the customs union which has eliminated duties on goods and non-tariff trade barriers among the members. Kenya. fish. particularly the World Bank and the European Development Fund. pyrethrum.FOREIGN ECONOMIC RELATIONS
Since independence. Africa is Kenya's largest export market. machinery. Kenya’s other significant exports are petroleum products. followed by the European Union.150 million. sold to near neighbors. a partnership of Kenya. The share of funding provided by the United Kingdom has fallen significantly. some from China and others from the high developed countries. In 2005 the combined value of these commodities was US$1. Uganda. Tanzania. Kenya is active within regional trade blocs such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). Japan. Uganda. and India. while that of multilateral agencies. cement. about 10 times the value of Kenya’s third most valuable export. has seen substantial foreign investment and significant amounts of development aid. Kenya’s chief exports are horticultural products and tea. Kenya’s apparel industry is struggling to hold its ground against Asian competition and runs a trade deficit with the United States. and the Netherlands. The aim of the EAC is to create a common market of the three states modeled on the European Union. and Tanzania. manufactured goods. chemicals. Kenya’s main exports to the United States are garments traded under the terms of the African Growth and Opportunity Act (AGOA). The leading imports are crude petroleum. 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 transportation equipment. and sisal. The major destinations for exports are the United Kingdom (UK). has increased. coffee. United Arab Emirates. The most active investors currently are the Chinese. Major suppliers are the UK. some from Russia.
. 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.
Also present are Bata. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. The payment for imports was about US$5. and capital. the German chemical manufacturer and producer of Nivea skincare products. This denied Kenyans the opportunity to progress economically . when the current account had a deficit of US$495 million.
.7 billion. In 2006 the current account balance as a percentage of gross domestic product was –4. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. Notwithstanding some restrictions.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. between 60 and 70 percent of industry is still owned from abroad. In 2006 Kenya had a current account deficit of US$1. with occasional tightening of restrictions to promote the Africanization of enterprises. Other multinationals operating in Kenya includes British American Tobacco (BAT). Foreign investors have been guaranteed ownership and the right to remit dividends. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. 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. yielding a trade deficit of about US$2.Kenya typically has a substantial trade deficit. In 2005 Kenya’s income from exports was about US$3. This figure was a significant increase over 2005.5 billion. food manufacturer Cadbury and Toyota Tsusho Corporation.2.7 billion.2 billion. the global shoe company headquartered in Canada. However. and Beiersdorf. Important multinationals active in Kenya Barclays Bank. royalties. In 2006 Kenya’s external debt totaled US$6. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. In the 1970s. Kenyan policies on foreign investment generally have been favorable since independence. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007.
Saudi Arabia.KENYA EXPORTS Kenya exports were worth 45.7 Billion KES in October of 2011. Kenya main exports partners are UK. Kenya main import partners are India. Tanzania. motor vehicles. Kenya imports mostly machinery and transportation equipment. United States and Pakistan. iron and steel products. Agricultural products are central to Kenya's export industry with horticultural and tea being the most important. tobacco. iron and steel. resins and plastics. China. petroleum products. petroleum products.
KENYA IMPORTS Kenya imports were worth 115. UAE. South Africa. Netherlands. United States and Japan. cement. Other export items include textiles. Uganda. coffee.3 Billion KES in October of 2011.
the GDP growth was attributed to recovery in construction and wholesale trade. and construction sectors helped to bolster growth. with the exception of Kenya. Tanzania and Uganda carried out their general elections during the year in contrasting environments.REGIONAL ECONOMIC OVERVIEW
The East African Countries of Kenya. Tanzania.6% to 7% in 2010/11. mining and quarrying subsectors. all the other three countries experienced reduced growth rates compared to 2009/10. In Uganda. Sectors such as communications. While agriculture recorded reduced growth. electricity. Significantly. All the same. 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. 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.
. improved performance in the manufacturing. financial services. Uganda and Rwanda experienced modest GDP growth rates of 5. and improved performance in telecommunications. energy and gas. 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. the two countries managed to post positive GDP growth.
23.1 4.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.5 10.4
COMPARISON OF E.5
. In both Uganda and Kenya.3 5.8
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.0
11. The win effect of the high food and fuel costs have pushed up the cost of living across the region.6 126
808. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.3 5.5 6.7 4.3 8.0 7.6 2.3 5.7
6.5 31.0 43.1
4.1 3.5 6. resulting in simmering discontent.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.A MACRO-ECONOMIC INDICATORS
Comparison of E.7
29.prices Development expenditure as a % of GDP at current prices Development expenditure as a % of total expenditure Total public debt(USD million) Trade deficit as % of GDP current prices Tax revenues (USD million)
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. making it expensive to do business in Kenya. whose policy aims include budgetary reforms and debt restraint. the economy has seen a broad-based expansion.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.
. and motivations behind. Prospects significantly improved under the Kibaki government. However there is still significant improvement to be done. Half of the sector’s output remains subsistence production. Despite early disillusionment of western donors with the government. 23 percent living on less than US$1 per day. population growth that has outstripped economic growth. such criticism. and extreme disparities of wealth that have limited the opportunities of most to develop their skills and knowledge. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. Kenya ranks among the world’s half-dozen most corrupt countries. Kenya's economic policies have been subjected to criticism by western donors. Another large drag on Kenya’s economy is the burden of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS). especially the vital tea sector. and acceptable post-drought results in agriculture. Poor governance and corruption also have had a negative impact on growth. There is debate as to the validity of. According to Transparency International. deteriorating infrastructure. Bribery and fraud cost Kenya as much as US$1 billion a year. led by strong performance in tourism and telecommunications. pay some 16 bribes a month—two in every three encounters with public officials. Western donors are now adopting a less paternalistic attitude towards their relations with African nations. Kenyans. The agricultural sector employs nearly 75 percent of the country’s 38 million people. prolonged drought that has necessitated power rationing.
. December 2010.worldbank. (source: Kenya Economic Update.html#ixzz1m90WmYO6
www.worldbank.go.com/economies/Africa/Kenya-INFRASTRUCTUREPOWER-AND-COMMUNICATIONS.centralbank. and communications in Kenya http://www. power.tradingeconomics. www. power.org/Kenya.nationsencyclopedia. Information about Infrastructure. and communications. December 2010.org/Kenya/keu) (ref. Kenya Economic Update.keu)
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