Republic of Kenya

Jamhuri ya Kenya


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

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

1%. sisal. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5.8%. UK 8. paper and light manufacturing. corn. Egypt 4. grain and sugar milling.8%. vehicle assembly.8% (2005): 2006 = 6. cement. fluorspar Uganda 10. coffee. Coal tea. Democratic Republic of the Congo 4. hides.22 billio tea.8%. pyrethrum. beer. soda ash. horticultural products. meat and meat products. Netherlands 8.03 billion (Purchasing Power Parity. sugarcane. dairy products. land (5% arable).600 Wildlife.2%. 5.7%. n petroleum products. US 5. horticultural products.3% (2010)[68] Major markets (2010) .Economic summary $32.Titanium. cement. Tanzania 9. textiles. pyrethrum. coffee. sisal. skins petroleum products. rice.16 billion (2010) at Market Price. pineapples. soft drinks. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. $ 66.1% : Estimate for 2007 = 7. wheat. hides and skins.2% Per Capita Income (PPP)= $1.

India 13. resins and plastics Major suppl China 13. iron and steel. motor vehicles.6%. Saudi Arabia 6.Imports $11. n petroleum products.4%. Japan 4. South Africa 8.8%.7% (2010) iers .4%. UAE 9.2 billio machinery and transportation equipment.7%.

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

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

Semi-urban . with 73% of residents aged below 30 years. The UNHCR base in Dadaab in the north also currently houses around 500.000).000 RELIGION The vast majority of Kenyans are Christian (83%).7%).2%. In addition. where they constitute the majority religious group. The shanty town is believed to house between 170. there is a large Hindu population in Kenya (around 50. is home to Kibera.5% as Roman Catholic. In addition.000 and 1 million locals. who have played a key role in the local economy. 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. Sizeable minorities of other faiths do exist (Muslim 11.000 people. 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.9 million to 40 million over the last century. due to rapid population growth from 2. one of the world's largest slums. Nairobi.POPULATION Kenya has a young population.7% regarding themselves as Protestant and 23. indigenous beliefs 1. The upper part of Eastern Province is home to 10 percent of the country's Muslims. with 47. Western areas of Coast Province are mostly Christian. comprising 50 percent of the total population there. Kenya's capital. There is also a small group of Baha'is.

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.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 WILDLIFE Ke nya has considerable land area devoted to wildlife habitats. leopard. buffalo. A significant population of other wild animals. Up to 250. including the Masai Mara. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season. rhinoceros and elephant. reptiles and birds can be found in the national parks and game reserves in the .

800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya. . 11. Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest in a constant clockwise fashion.5 million of these ungulates migrate a distance of 1. 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.

The long rainy season occurs from April to July. Nairobi.CLIMATE As Kenya has a diverse geography. The climate is also humid in the Lake Victoria basin. Rainfall is more on the eastern coast 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. Because of this reason. The early hours of the morning are also cool and pleasant. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin.60 Celsius minimum. It is one of the most spectacular events of the country. .60 Celsius and a minimum temperature of 9. while the shorter one occurs from October to December. the country has a dry climate. The coastal side of the country has a hot and humid climate. the capital of the country has a temperature of 25. Apart from the coastal areas. Rainfall is high in the coastal regions of the country. During the daytime the weather is hot. The temperature in the coastal town of Mombasa ranges from a maximum of 30.40 Celsius.30 Celsius to a minimum of 22. Kenya basically enjoys a tropical climate. The period ranging from June to September represent the migration period of the wildlife found in the country. the regions in this area are of semi-desert and arid character. while the nights are cooler and comfortable. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. Most of the rains occur between April and July. Summers are extremely hot over here and one is expected to wear light summer clothes.50 Celsius.20 Celsius maximum and 13. Kenya receives a lot of sunshine all around the year. February and March are the hottest months of the country while July and August are the cooler months. Generally speaking. while Eldoret has a maximum temperature of 23. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. its climate and weather conditions are also varied.

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

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

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

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

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

is the country's main seaport and serves most East and Central African nations.000 miles connecting most parts of the country. handles light aircraft and general aviation. while the government has made plans to open up the railways to private-sector participation by limiting the KR's role to owning and regulating lines. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system.800 kilometers of highway. In total. for example.1 million tons. According to the U.S. which serves more than 30 airlines providing scheduled services to cities around the world.000 kilometers of roads in 6 urban centers. In the same year. In 1999.).INFRASTRUCTURE Kenya has an extensive road network of approximately 95. the current state of most roads is deplorable. Department of State Country Commercial Guide 2000 . the busiest airport in Africa. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. the state-owned . there has been a steady deterioration in the KR's services. offers specialized facilities. boasting 21 berths. designed to create links between all major and minor roads. Wilson airport in Nairobi. the KR would lease locomotives to private-sector operators. Kenya has 230 airports. which runs from Mombasa through Nairobi to the Ugandan border. is expected to cost US$245 million. in addition to rehabilitating 20. The project. warehousing. including 21 that are paved. however. As a result of heavy operational losses. The deepwater port. There are 3 international airports. only 8. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. Kenya's port of Mombasa. including cold storage. the Kenyan government recently launched the ambitious 'Roads 2000' project. which has an annual average freight throughput of about 8. which will span approximately 3 years. Accordingly. and container terminal.868 kilometers are paved (1996 est. Of the total 63. The international and domestic air transport infrastructure is relatively well-developed in Kenya. In collaboration with various donors. the largest is Nairobi's Jomo Kenyatta International Airport.

though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers.000 people. . or approximately 9. Kenya experienced its worst drought in 40 years. In 1999-2000. hydro equipment tends to be outdated and poorly maintained. a telecommunication corporation. Two international companies were licensed at the beginning of 1997 to respectively produce 43 MW of power from a thermal plant in Mombasa and 45.9 telephone lines per 1. Further adding to the problem. Kencell. In 1998. boasted 640 phone lines per 1. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. a postal services corporation.74 percent of the power supply comes from hydroelectricity. Since 82.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya.000 main telephone lines in use. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. As of 1998. in comparison. The United States.23 billion kWh.5 MW from a diesel plant in Nairobi.000 people in 1996. power outages and blackouts have become increasingly common as a result of chronic drought. Consequently. Only 8 percent of the Kenyan population is connected to the national grid. the government is eager to further develop both thermal and geothermal sources of power. a joint venture between Vivendi France and Sameer of Kenya. and Postal Corporation of Kenya. a development that forced the KPLC to introduce an emergency rationing program in July 2000 under which electricity supplies have been cut off for 12 hours a day. total electricity production in Kenya equaled 4. there were 290. Safaricom. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC).

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

The provinces were subdivided into districts . There were 69 districts as of 1999 census.9. Districts are then subdivided into 497 divisions . . Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). The City of Nairobi enjoys the status of a full administrative province.612 sub locations.Under the old constitution. 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 2.427 locations and then 6. The government supervises administration of districts and provinces.

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

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

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

A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50. The banknotes are printed in Nairobi by De La Rue. and 20 shilling notes from the 1978 series with Kenyatta's picture that had been in storage were issued. and circulated for a time. The issue of 12 December 2003 commemorates the "40 years of Independence 1963-2003". The Central Bank of Kenya shifted its target to tighten liquidity.As with the coins. INFLATION The inflation rate in Kenya was last reported at 18. 5. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978.9 percent in December of 2011. 200. . EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. with Daniel arap Moi's portrait replacing him in 1980. from about 83 shillings per US dollar to about 100 shillings per US dollar at late 2011. 500 and 1000 shilling. In 2003. including increasing interest rate and money market operations. 100. after Mwai Kibaki replaced Moi as president. 10. But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012.

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

and construction and a recovery in agriculture.8 percent—similar to the population growth rate—and income per capita would have stagnated. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. GDP composition by sector. and other.In 2006 Kenya’s GDP was about US$17. government services. telecommunications. the driver of previous years' growth. Services.0 percent if no shocks occur. 25. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. growing on average by 20 percent annually. EAC integration. per capita GDP in 2006 was about US$1. Without ICT. 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. 6. restaurants. Public sector investments in infrastructure will help to stimulate this growth.6 . and may now be at a tipping point for robust growth.5 CHANGE (%) 46.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002).200.6 percent. Kenya's economy grew at an average of 3. Five factors are creating a positive momentum: the new constitution.0 percent. Since 2000. according to 2004 estimates. strong macroeconomic management. Kenya has seen the return of higher growth projected at 4. 14. Real GDP is expected to continue to improve. Per capita GDP averages somewhat more than US$450 annually.39 billion. 24. have moderated while agriculture and industry are rebounding after two weak years.7 percent.7 percent.1 2010/11 (%) 24. ICT innovations. 15. transport. growth in 2010 would have been a lackluster 2.9 percent. transport and communications. compared with a sluggish 1.8 percent.0 percent. trade. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. and hotels. manufacturing. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. Economic growth in 2011-12 could range between 5. largely because of expansions in tourism. and recent investments in infrastructure.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. 13.3 and 6. Adjusted in purchasing power parity (PPP) terms. The country’s real GDP growth picked up to 2.9 percent. ICT has been the main driver of Kenya's economic growth over the last decade. However. was as follows: agriculture. and propelling the combined transport and communications sector into the economy's second largest (after agriculture).

9 .9 -15.1 -12.0 13.1 14.9 15.2 -0.7 15.8 2.9 14.0 3.9 28.5 -14.4 1.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.9 7.

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

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

is controlled by the parastatal Kenya Tea Development Authority. and coffee. In 2006 almost 75 percent of working Kenyans made their living on the land. accounted for about 24 percent of GDP. operate on their own.8 million. The principal cash crops are tea. coffee earnings totaled $91. as well as for 18 percent of wage employment and 50 percent of revenue from exports. and Sri Lanka. Tea exports were valued at $404. The tea industry is divided between small farms and large estates. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). Black tea is Kenya's leading agricultural foreign exchange earner. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. after tourism and tea. All coffee is marketed . The estates. horticultural produce. Production in 2001/02 amounted to 52.000 farmers. including forestry and fishing. consisting of 60–75 private companies. compared with 80 percent in 1980. Kenya is Africa's leading tea producer. Production in 1999 reached 220. and was fourth in the world. Coffee is Kenya's third leading foreign exchange earner. accounting for just 5 percent of export receipts in 2005. behind India.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. China. Coffee has declined in importance with depressed world prices.000 tons.1 million in 2001. The small-scale sector. In 2005 agriculture. Similar to the tea sector. with more than 260. In 2001. coffee is produced on many small farms and a few large estates. and only 7 or 8 percent can be classified as first-class land. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports.140 tons. after the service sector. or nearly 18% of total exports. About one-half of total agricultural output is non-marketed subsistence production. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings.

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

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

with more than 260. e. operate on their own.. Tea exports were valued at $404. Kenya's inclusion among the beneficiaries of the U. behind India. Mombasa. Nairobi. or nearly 18% of total exports. and Kisumu. including the removal of duty on capital equipment and other raw materials. Kenya has an oil refinery that processes imported crude petroleum into petroleum products. vehicles from kits.S. In addition.g. motor-vehicle parts. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years. and Sri Lanka. and sugarcane crushing. mainly for the domestic market. Since AGOA took effect in 2000. a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods. beer production.1 million in 2001.000 farmers. The tea industry is divided between small farms and large estates. Industrial activity. and was fourth in the world. Kenya's clothing sales to the United States increased from US$44 million to US$270 million. There is a vibrant and fast growing cement production industry. manufacturing still accounts for only 14 percent of gross domestic product (GDP). The estates. and farm implements. Black tea is Kenya's leading agricultural foreign exchange earner. is controlled by the parastatal Kenya Tea Development Authority. is dominated by food-processing industries such as grain milling. and the fabrication of consumer goods. Kenya is Africa's leading tea producer. consisting of 60–75 private companies. China.INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures. concentrated around the three largest urban centers. . The small-scale sector.

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

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

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

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

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

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

In 2006 Kenya’s external debt totaled US$6.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. and Beiersdorf. Other multinationals operating in Kenya includes British American Tobacco (BAT). Also present are Bata. Kenyan policies on foreign investment generally have been favorable since independence.Kenya typically has a substantial trade deficit. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. yielding a trade deficit of about US$2. the German chemical manufacturer and producer of Nivea skincare products. Foreign investors have been guaranteed ownership and the right to remit dividends. with occasional tightening of restrictions to promote the Africanization of enterprises. .5 billion.5 billion. and capital. The payment for imports was about US$5. the global shoe company headquartered in Canada. However. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. In 2006 Kenya had a current account deficit of US$1.7 billion. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. royalties. Important multinationals active in Kenya Barclays Bank.2. between 60 and 70 percent of industry is still owned from abroad. Notwithstanding some restrictions. when the current account had a deficit of US$495 million.7 billion.2 billion. food manufacturer Cadbury and Toyota Tsusho Corporation. In the 1970s. In 2006 the current account balance as a percentage of gross domestic product was –4. This denied Kenyans the opportunity to progress economically . The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. This figure was a significant increase over 2005. In 2005 Kenya’s income from exports was about US$3.

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

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

3 8.6 39.4 6. COMPARISON OF E.567 5.5 11.6 5.5 31.1 617.3 5.3 5.6 2. 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. In both Uganda and Kenya.5 .5 5.6 4.7 4.6 126 808.7 528. resulting in simmering discontent.5 6.0 7.8 6.5 6.7 521. The win effect of the high food and fuel costs have pushed up the cost of living across the region.187 23.964 77.6 4. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.A MACRO-ECONOMIC INDICATORS Comparison of E.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.104 16.822 5.2 6.0 43.9 6.5 10.8 3.8 7.A Macroeconomic Indicators GDP current prices(USD Million) Real GDP growth rate(%)–2010/11 Real GDP growth rate(%)–2009/10 Population(Million ) GDP per capita(USD)current prices Overall inflation rate (%) Treasury bill interest rate (%) Budget deficit % of GDP at current Kenya Tanzania Uganda Rwanda EA Total/ Average 32.7 6.1 4. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.3 5.7 6.0 532.1 3.

417 11.8 7.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) 12.904 21.8 35.6 45.7 12.300 946 29.318 .5 13.0 31.0 10.3 36.145 800 14.937 3.0 11.436 2.241 4.2 13.9 8.8 17.2 15.0 9.0 37.

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

go. power.centralbank. and communications.nationsencyclopedia. Kenya Economic Update. December www.html#ixzz1m90WmYO6 ( www. power. Information about Infrastructure. and communications in Kenya http://www.keu) Read more: Kenya Infrastructure. (source: Kenya Economic Update. December 2010..

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