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

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

beer. US 5.8%. rice. grain and sugar milling. corn.Economic summary $32. vehicle assembly.3% (2010)[68] Major markets (2010) . land (5% arable). Netherlands 8. pyrethrum. $ 66. hides.Titanium. cement. soft drinks. Egypt 4. horticultural products. coffee. cement.2%. 5. sugarcane.1%.03 billion (Purchasing Power Parity. pineapples. coffee. n petroleum products.8%. dairy products. Democratic Republic of the Congo 4.16 billion (2010) at Market Price. textiles.7%. fluorspar Uganda 10.22 billio tea. wheat. pyrethrum. soda ash. horticultural products. sisal. UK 8.8%. Coal tea. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. skins petroleum products.1% : Estimate for 2007 = 7. hides and skins. paper and light manufacturing. sisal.2% Per Capita Income (PPP)= $1. meat and meat products. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures.8% (2005): 2006 = 6. Tanzania 9.600 Wildlife.

n petroleum products.2 billio machinery and transportation equipment.6%. Japan 4. motor vehicles. Saudi Arabia 6.7%.8%.Imports $11.4%.7% (2010) iers . resins and plastics Major suppl China 13. UAE 9. India 13. iron and steel.4%. South Africa 8.

367 km2 (224. Another major river of the county is the Ewaso Ngiro. Some of the major forest areas of the country include the Kakamega Forest and the Mau Forest. To the east one can find a large number of rainforests. It lies between latitudes 5°N and 5°S. Other major lakes of the country include Lake Naivasha and Lake Nakuru. It is one of the major agricultural regions of the country. Kenya is the world's forty-seventh largest country. . The country is bordered by Sudan and Ethiopia in the north and Uganda to the west. At 580.081 sq mi). Apart from these. situated in the northeastern part of the country. The valley basically dissects the Kenyan highlands into east and west. Somalia lies to the east of the country while Indian Ocean borders the country in the southeastern part. There are a large number of rivers also in Kenya. the regions of the country are mostly arid and of semi desert nature. which is 5. The Kenyan coast is a low-lying area. One can find a large number of swamps in the Loraine Plain. It has a coral reef and is supported by a dry coastal plain that is covered by thorny bushes and savanna. found in the northeastern part of the country. The highlands have a cool climate and are known for their fertile soil. flows across the country before draining into Lake Victoria. The highest point of the country lies in Mount Kenya. On the western part of the country one can find Lake Victoria. the geography of Kenya also includes its numerous forests also. that the country stretches from the sea level in the east to the snow capped mountain in the north. Apart from this. In general one can say. On the northern part of the country one can find Lake Turkana.199 meters high. Kenya is located on the eastern part of the African continent. the other mountain ranges that one can find over here include Mount Elgon and Mount Kilimanjaro.GEOGRAPHICAL LOCATION The Geography of Kenya gives one a complete idea about the location of the country and its physical features. which forms a major part of the geography of Kenya. The biggest feature of Kenya is the Great Rift Valley located in the central and western part of the country. Yala and Gori. One can find a large number of lakes and rivers in this country. To the southwest of the country lies Tanzania while to the west lies Lake Victoria and Uganda. The rivers Tana and Athi flows in the southeastern part of the country while Nzoia. In general. The terrain of the country gradually changes from the low-lying coastal plains to the Kenyan highlands. which is extremely fertile. and longitudes 34° and 42°E.

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

who have played a key role in the local economy. In addition. due to rapid population growth from 2. Nairobi. The upper part of Eastern Province is home to 10 percent of the country's Muslims.000).2%. Sizeable minorities of other faiths do exist (Muslim 11. Western areas of Coast Province are mostly Christian. one of the world's largest slums.7% regarding themselves as Protestant and 23. indigenous beliefs 1. Kenya's capital.000 RELIGION The vast majority of Kenyans are Christian (83%). Sixty percent of the Muslim population lives in Coast Province. ETHNIC GROUPS Kenya's rising urban population has a diverse ethnic background whose people are variedly fluent in their mother tongues and the two official languages – English and Swahili.7%). where they constitute the majority religious group. The UNHCR base in Dadaab in the north also currently houses around 500. Semi-urban . with 73% of residents aged below 30 years. Major cities in Kenya include: City Nairobi Mombasa Nakuru Kisumu Meru Nyeri Machakos Eldoret Population 3 375 000 966 000 337 200 273 400 273 000 179 500 140 900 100.9 million to 40 million over the last century. is home to Kibera. There is also a small group of Baha'is.000 people. comprising 50 percent of the total population there. with 47.000 and 1 million locals.5% as Roman Catholic.POPULATION Kenya has a young population. In addition. there is a large Hindu population in Kenya (around 50. The shanty town is believed to house between 170.

and rural populations are less multilingual with many in remote villages speaking only their mother tongue. including the Masai Mara. The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion. A significant population of other wild animals. rhinoceros and elephant.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season. European and Arab) Percentage 22% 14% 13% 12% 11% 6% 6% 15% 1% Kikuyu woman in traditional attire WILDLIFE Ke nya has considerable land area devoted to wildlife habitats. where Blue Wildebeest and other bovid participate in a large scale annual migration. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. Up to 250. leopard. buffalo. reptiles and birds can be found in the national parks and game reserves in the .

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

the capital of the country has a temperature of 25. Summers are extremely hot over here and one is expected to wear light summer clothes. The long rainy season occurs from April to July.60 Celsius and a minimum temperature of 9.CLIMATE As Kenya has a diverse geography. It is one of the most spectacular events of the country. while Eldoret has a maximum temperature of 23. the regions in this area are of semi-desert and arid character. .40 Celsius. The coastal side of the country has a hot and humid climate. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin.20 Celsius maximum and 13.30 Celsius to a minimum of 22. Kenya basically enjoys a tropical climate. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. 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. Most of the rains occur between April and July. Rainfall is more on the eastern coast of the country. Generally speaking. Kenya receives a lot of sunshine all around the year.50 Celsius. Because of this reason. the country has a dry climate. February and March are the hottest months of the country while July and August are the cooler months. while the nights are cooler and comfortable. During the daytime the weather is hot. Rainfall is high in the coastal regions of the country. The period ranging from June to September represent the migration period of the wildlife found in the country. Apart from the coastal areas. The temperature in the coastal town of Mombasa ranges from a maximum of 30.60 Celsius minimum. The climate is also humid in the Lake Victoria basin. Nairobi. The early hours of the morning are also cool and pleasant. while the shorter one occurs from October to December. 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. Other than the public schools. Private schooling also exists in Kenya. Kenya still faces many challenges. At the end of primary education. The total fertility rate in Kenya is estimated to be 4. Weak policies. which determines those who proceed to secondary school or vocational training. there is a national examination at the end of Form Four – the Kenya Certificate of Secondary Education (KCSE). diarrhea and malnutrition are the major child killers and responsible for much morbidity.49 children per woman in 2012. pupils sit the Kenya Certificate of Primary Education (KCPE). other professional training or employment. There are a large number of HIV-positive people in Kenya. For those who proceed to secondary level. In 2007 the government issued a statement declaring that from 2008. partly because of female genital mutilation. HIV/AIDS. Maternal mortality is high. secondary and college. the Government of Kenya announced the introduction of free primary education. More die before their 5th birthday. weak management and poor leadership in most public health facilities are largely to blame. As a result. Similarly. there are a number of international schools catering for various overseas educational systems. EDUCATION The country's literacy level stands at 85% of the whole population. primary school enrollment increased by about 70%. The Joint Admission Board (JAB) is responsible for selecting students joining the public universities. . Kenya's education system consists of early childhood education. with the government footing all tuition fees. secondary education would be heavily subsidized. which determines those proceeding to the universities. there are many private schools in the country.HEALTH Despite major achievements in the health sector. primary. inadequate health workers. Life expectancy is estimated at between 47 and 55 years. Too many women and children still die at birth or within the first year of life. This practice is however on the decline as the country becomes more modernised and the practice was also banned in the country in 2011. Secondary and tertiary education enrollment has not increased proportionally because payment is still required for attendance. In January 2003. mainly in urban areas. pneumonia.

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

Kenya has competed in the Cricket World Cup since 1996. Kenyan hip-hop and different types of folk music and tribal music. Football. The clothes are usually red and black in color to show their love for mother Earth. They participated in the ICC Cricket World Cup 2011. Road running and athletics are also popular. But the country is known chiefly for its dominance in Middledistance and long-distance athletics. Jewelry is made from colorful beads and other articled and consists of headgears. 5. A large number of film festivals and theatre festivals are held in this country. Kenya has a diverse assortment of popular music forms. Infact. which include afro-fusion music. rugby. five silver and four bronze. nose rings. with both the clubs and the national team winning various continental championships in the past decade. necklaces. Guitars and drums are the popular instruments used in Kenyan music.000 m and the marathon.The clothing is unique. Cricket is another popular and the most successful team sport. Kenya won several medals during the Beijing Olympics. 10. The people also love to wear heavy jewelry. Kenya has consistently produced Olympic and Commonwealth Games champions in various distance events.500 m. The country has also made valuable contributions in the field of film and theatre. 2007.000 m steeplechase.000 m. it is home to different varieties of music. cricket and boxing are the most popular sports played in the country. Kenya has been a dominant force in women's volleyball within Africa. especially in 800 m. anklets and others. Kenya is home to the world famous Safari Rally. In the motor rallying arena. five gold. commonly acknowledged as one of the toughest rallies . 3. Kenya was a regional power in soccer but its dominance has been eroded by wrangles within the Kenya Football Federation. making it Africa's most successful nation in the 2008 Olympics. armlets. It is extremely colorful and are heavily embroidered. Kenyan people are sports lovers. 1. This has led to a suspension by FIFA which was lifted in March. Benga music. earrings. in addition to multiple types of folk music based on the variety over 40 regional languages.

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

The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal.level. . regional news. entertainment and many more. KBC English Radio Service and KBC Kiswahili Radio Service are the two radio stations that operate under the National Radio Network in Kenya. sports. Some of the renowned newspapers that are published and circulated in Kenya are as follows: • • • • Kenya Times Standard Kenya East African Standard Kenya Daily Nation Kenya Last but not the least is Kenya films. The Kenyan newspapers cover topics related to politics. Many internationally renowned films have been made in Kenya. Films are a major source of entertainment in the country. 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.

S. only 8. The deepwater port.1 million tons. 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. for example. In total. including cold storage.800 kilometers of highway. the current state of most roads is deplorable. In the same year. Department of State Country Commercial Guide 2000 . which has an annual average freight throughput of about 8.). offers specialized facilities. Kenya has 230 airports. there has been a steady deterioration in the KR's services. which will span approximately 3 years. The project. warehousing.868 kilometers are paved (1996 est. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. and container terminal. In collaboration with various donors. is the country's main seaport and serves most East and Central African nations. designed to create links between all major and minor roads. In 1999.000 miles connecting most parts of the country. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. the Kenyan government recently launched the ambitious 'Roads 2000' project. Accordingly. which runs from Mombasa through Nairobi to the Ugandan border. the KR would lease locomotives to private-sector operators. boasting 21 berths. the state-owned . the busiest airport in Africa. is expected to cost US$245 million. the largest is Nairobi's Jomo Kenyatta International Airport. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. including 21 that are paved. There are 3 international airports. Of the total 63. in addition to rehabilitating 20. handles light aircraft and general aviation. Kenya's port of Mombasa. According to the U.000 kilometers of roads in 6 urban centers.INFRASTRUCTURE Kenya has an extensive road network of approximately 95. As a result of heavy operational losses. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. Wilson airport in Nairobi. however. which serves more than 30 airlines providing scheduled services to cities around the world. The international and domestic air transport infrastructure is relatively well-developed in 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. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. Since 82. As of 1998. Only 8 percent of the Kenyan population is connected to the national grid.000 main telephone lines in use. in comparison. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). power outages and blackouts have become increasingly common as a result of chronic drought. 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. or approximately 9. Consequently. total electricity production in Kenya equaled 4. there were 290.000 people in 1996. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange.74 percent of the power supply comes from hydroelectricity.5 MW from a diesel plant in Nairobi.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. Safaricom. In 1998. and Postal Corporation of Kenya. In 1999-2000. the government is eager to further develop both thermal and geothermal sources of power. a joint venture between Vivendi France and Sameer of Kenya. boasted 640 phone lines per 1. .23 billion kWh.000 people. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. Kencell. a postal services corporation. Kenya experienced its worst drought in 40 years.9 telephone lines per 1. Further adding to the problem. a telecommunication corporation. hydro equipment tends to be outdated and poorly maintained. The United States.

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

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

the Presidents of Kenya. seen by strong performance in tourism. Industry and manufacturing is the smallest sector that accounts for 16 percent of the GDP. economic prospects are positive with 4–5% GDP growth expected. The EAC's objectives include harmonizing tariffs and customs regimes. 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 . and acceptable post-drought results in agriculture. the economy has seen much expansion. construction and a recovery in agriculture. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company. following the chaos which engulfed the country. As of May 2010. largely because of expansions in tourism. and now contributes 62 percent of GDP. and improving regional infrastructures. kerosene and cooking oil. In March 1996. transport. has led to their revival due to massive private important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. which resulted in East Africa's most profitable company – Safaricom. The World Bank predicts growth of 4% in 2010 and a potential of 4.9% growth in 2011. telecommunications. and Uganda re-established the East African Community (EAC). .ECONOMY Despite western donors' early disappointment with the government. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. higher education and telecommunications. boosted by rapid expansion in telecommunication and financial activity over the last decade. But this changed immediately after the disputed presidential election of December 2007. East and central Africa's biggest economy has posted tremendous growth in the service sector. Tanzania. free movement of people. the three East African countries signed a Customs Union Agreement. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour. In March 2004. Unfortunately. especially the vital tea sector. However. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry.

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

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

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

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

and may now be at a tipping point for robust growth. and hotels.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006.In 2006 Kenya’s GDP was about US$17. strong macroeconomic management. and other. telecommunications.200.7 percent. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. growth in 2010 would have been a lackluster 2. Services. restaurants. Kenya's economy grew at an average of 3. 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 2004-2007.0 percent.6 percent.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). according to 2004 estimates. 24.1 2010/11 (%) 24. largely because of expansions in tourism.0 percent if no shocks occur. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence.9 percent. Real GDP is expected to continue to improve. per capita GDP in 2006 was about US$1.8 percent. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). ICT innovations. Without ICT. Adjusted in purchasing power parity (PPP) terms. trade. EAC integration.5 CHANGE (%) 46. and recent investments in infrastructure. have moderated while agriculture and industry are rebounding after two weak years.6 . compared with a sluggish 1. Per capita GDP averages somewhat more than US$450 annually.7 percent. 13.9 percent. Kenya has seen the return of higher growth projected at 4. Economic growth in 2011-12 could range between 5. However.3 and 6. Public sector investments in infrastructure will help to stimulate this growth. growing on average by 20 percent annually. The country’s real GDP growth picked up to 2. 14. ICT has been the main driver of Kenya's economic growth over the last decade. was as follows: agriculture. 6. government services. and construction and a recovery in agriculture. GDP composition by sector.39 billion. transport and communications. the driver of previous years' growth.0 percent. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010.8 percent—similar to the population growth rate—and income per capita would have stagnated. 25. 15. Five factors are creating a positive momentum: the new constitution. manufacturing. Since 2000. transport.

9 7.1 14.9 15.0 3.2 -0.8 2.9 -15.5 -14.9 14.0 13.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.4 1.9 28.9 .7 15.1 -12.

one can pay a visit to the cities of Lamu. amazing wildlife and diverse culture has been attracting tourists from all across the world every year. One can pay a visit to the Shela Beach in the city of Lamu. . is dominated by tourism.INDUSTRY IN KENYA TOURISM Kenya's services sector. Chyulu Hills National Park. Tsavo East National Park and others. One can take a look at the Laikipia Plateau in east Kenya or pay a visit to the Taita Hills in the southern part of the country. giraffes. Watamu National marine Park and others. Tourism in Kenya is mainly centered around two major geographical areas of the country. leopards. The country is home to a large number of natural reserves also. One can check out the elephants. lions and a variety of birds like falcons and others in these natural reserves. which includes the Times Tower. The country with its breath taking scenery. The cities are known for their history and one can pay a visit to the numerous tourist attractions found over here. Eldoret and others. Kisumu. one can pay a visit to the beaches on the coast of the Indian Ocean. Nakuru. rhinoceros's. Nairobi. which include the beaches on the southern coast and the numerous national parks. Bedsides these. When on a vacation to Kenya. Kenya Tourism has acquired a lot of importance over the past few years and the government of the country has left no stone unturned in attracting tourist’s tom this exotic country. cheetahs. Some of the major wildlife sanctuaries that one can pay a visit include the Amboseli National Reserve. Kenya has over the years become a major tourist destination of the world. Mombassa. Travelers coming here for a holiday can take a look at breathtaking view of its scenery and picturesque landscapes. which contributes about 63 percent of GDP. Blue Market. Railway Museum.

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

as well as for 18 percent of wage employment and 50 percent of revenue from exports. horticultural produce. In 2005 agriculture. accounting for just 5 percent of export receipts in 2005. or nearly 18% of total exports. after tourism and tea. compared with 80 percent in 1980. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. In 2001. About one-half of total agricultural output is non-marketed subsistence production. and Sri Lanka. Production in 2001/02 amounted to 52.1 million in 2001. The tea industry is divided between small farms and large estates. with more than 260. consisting of 60–75 private companies. China. Kenya is Africa's leading tea producer. Production in 1999 reached 220. and coffee.140 tons. and was fourth in the world. The estates. operate on their own. Coffee is Kenya's third leading foreign exchange earner. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP).000 tons. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. The small-scale sector.000 farmers.8 million. The principal cash crops are tea. Tea exports were valued at $404. is controlled by the parastatal Kenya Tea Development Authority. coffee is produced on many small farms and a few large estates.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. and only 7 or 8 percent can be classified as first-class land. Coffee has declined in importance with depressed world prices. Black tea is Kenya's leading agricultural foreign exchange earner. including forestry and fishing. behind India. In 2006 almost 75 percent of working Kenyans made their living on the land. All coffee is marketed . Similar to the tea sector. accounted for about 24 percent of GDP. coffee earnings totaled $91. after the service sector. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports.

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

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

There is a vibrant and fast growing cement production industry. behind India. and the fabrication of consumer goods. or nearly 18% of total exports. is dominated by food-processing industries such as grain milling. Since AGOA took effect in 2000. and farm implements. with more than 260.g. Black tea is Kenya's leading agricultural foreign exchange earner. Kenya has an oil refinery that processes imported crude petroleum into petroleum products. consisting of 60–75 private companies. and Kisumu. and sugarcane crushing. Nairobi. concentrated around the three largest urban centers. The small-scale sector. e. The estates. Mombasa. China. and was fourth in the world. Kenya is Africa's leading tea producer. Kenya's inclusion among the beneficiaries of the U. vehicles from kits. The tea industry is divided between small farms and large estates. mainly for the domestic market.. In addition. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures. beer production. operate on their own. including the removal of duty on capital equipment and other raw materials. manufacturing still accounts for only 14 percent of gross domestic product (GDP). motor-vehicle parts. Kenya's clothing sales to the United States increased from US$44 million to US$270 million. . Tea exports were valued at $404.1 million in 2001. and Sri Lanka.S. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years.000 farmers. a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods.INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. is controlled by the parastatal Kenya Tea Development Authority. Industrial activity.

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

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.overlooked region. . senior geologists at Uganda's Energy Ministry who were at the forefront of the country's search for oil two decades ago. Reacting to the current speculation about prospects for an early oil find. It also had a license for block L2. Before its exit mid this year. an inland area in the Lamu basin. 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.

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. which is just beginning to drill its first exploratory wells on the borders of Sudan and Somalia and in coastal waters. and there has been no formal estimate of the possible reserves.” . in London. .OIL EXPLORATION Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya. while U. Petroleum Commissioner Martin Heya said. the London-based explorer with the most licenses in Africa. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy.K. 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. as it provides credibility to potentially finding more discoveries. the faster a discovery will be made. the Kenyan capital. (AFR) “Big companies like Tullow coming into the country automatically creates more interest. an oil and gas analyst at Renaissance Capital Ltd. “The more wells that are drilled.500 in the west of the continent and 19. with an estimated 2.” Heya said. That compares with 480 in East Africa. The deal allowed for China's state-controlled offshore oil and gas company. No oil has been discovered yet. Heya said in an interview in Nairobi. to prospect for oil in Kenya. according to data from U. he said. CNOOC.western Kenya this year and early 2012.based explorer Afren Plc. Only 32 exploratory wells have been drilled in Kenya.-based Apache Corp. (APA) may drill offshore next year. 14. Tullow Oil Plc (TLW). plans to sink two test wells in north.” Dragan Trajkov. Spending on exploration and drilling is estimated at $126 million. and other companies may follow as more plans are approved.S. said an e.mailed response to questions today. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest.” Exploration companies are increasing spending in Kenya as neighboring Uganda.5 billion barrels of oil reserves.000 in north and central Africa.

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

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

particularly the World Bank and the European Development Fund. Uganda. sold to near neighbors. and sisal. some from Russia. In 2005 the combined value of these commodities was US$1. and India. pyrethrum. and the Netherlands. some from China and others from the high developed countries. Tanzania. while that of multilateral agencies.150 million. The leading imports are crude petroleum. 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. machinery. and transportation equipment. 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. Japan. fish. 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. The major destinations for exports are the United Kingdom (UK). . The most active investors currently are the Chinese. chemicals. Despite AGOA. United Arab Emirates. followed by the European Union. a nonaligned country. Kenya is active within regional trade blocs such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). cement. 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. Kenya’s other significant exports are petroleum products. and Tanzania. Kenya’s chief exports are horticultural products and tea. Africa is Kenya's largest export market. manufactured goods. has seen substantial foreign investment and significant amounts of development aid. The aim of the EAC is to create a common market of the three states modeled on the European Union. a partnership of Kenya. has increased. Uganda. Major suppliers are the UK. coffee. Kenya’s main exports to the United States are garments traded under the terms of the African Growth and Opportunity Act (AGOA).FOREIGN ECONOMIC RELATIONS Since independence.

5 billion. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. . In 2005 Kenya’s income from exports was about US$3. royalties.7 billion. the global shoe company headquartered in Canada. when the current account had a deficit of US$495 million. and capital. Other multinationals operating in Kenya includes British American Tobacco (BAT). yielding a trade deficit of about US$2. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. Important multinationals active in Kenya Barclays Bank. This figure was a significant increase over 2005.5 billion. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya.2. Notwithstanding some restrictions. Also present are Bata. Kenyan policies on foreign investment generally have been favorable since independence. and Beiersdorf.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. Foreign investors have been guaranteed ownership and the right to remit dividends. food manufacturer Cadbury and Toyota Tsusho Corporation. In the 1970s. the German chemical manufacturer and producer of Nivea skincare products. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. between 60 and 70 percent of industry is still owned from abroad.7 billion.2 billion. This denied Kenyans the opportunity to progress economically . In 2006 Kenya had a current account deficit of US$1. In 2006 the current account balance as a percentage of gross domestic product was –4. The payment for imports was about US$5. with occasional tightening of restrictions to promote the Africanization of enterprises. However. In 2006 Kenya’s external debt totaled US$6.Kenya typically has a substantial trade deficit.

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

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

1 617.6 5.9 6.6 39.7 6.8 3. 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.3 5.822 5.6 126 808.187 23.8 7.8 6.0 7.6 4.3 5.5 6.7 4.5 10. COMPARISON OF E.964 77.7 521.3 8. The win effect of the high food and fuel costs have pushed up the cost of living across the region.1 3.0 43.0 532.1 4.104 16. 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.6 4.2 6.5 .5 31.6 2.7 528.3 5.567 5. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.7 6.A Macroeconomic Indicators GDP current prices(USD Million) Real GDP growth rate(%)–2010/11 Real GDP growth rate(%)–2009/10 Population(Million ) GDP per capita(USD)current prices Overall inflation rate (%) Treasury bill interest rate (%) Budget deficit % of GDP at current Kenya Tanzania Uganda Rwanda EA Total/ Average 32.5 11. resulting in simmering discontent. In both Uganda and Kenya.4 6.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.5 5.5 6.

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) 12.8 17.145 800 14.241 4.2 15.0 31.0 10.2 13.417 11.436 2.904 21.3 36.5 13.8 7.0 37.318 .300 946 29.7 12.0 11.6 45.8 35.0 9.9 8.937 3.

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

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

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