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

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

dairy products. Democratic Republic of the Congo 4. hides.22 billio tea. paper and light manufacturing.16 billion (2010) at Market Price. grain and sugar milling. Netherlands 8. land (5% arable).3% (2010)[68] Major markets (2010) .8%. sugarcane. skins petroleum products. sisal. rice. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. soft drinks. horticultural products. horticultural products.03 billion (Purchasing Power Parity. vehicle assembly. 5. meat and meat products. wheat. coffee. cement.8%.Economic summary $32. US 5. $ 66. corn.1%. UK 8. sisal. n petroleum products.8%.2%. pyrethrum.2% Per Capita Income (PPP)= $1.600 Wildlife. fluorspar Uganda 10. pyrethrum. Egypt 4. textiles.8% (2005): 2006 = 6. coffee.7%. soda ash. cement. Tanzania 9. pineapples. Coal tea. beer. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5.1% : Estimate for 2007 = 7.Titanium. hides and skins.

motor vehicles.Imports $11.2 billio machinery and transportation equipment.4%. iron and steel. resins and plastics Major suppl China 13. India 13. n petroleum products. Japan 4.6%.7% (2010) iers . Saudi Arabia 6.4%. UAE 9.7%.8%. South Africa 8.

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

Nairobi is the most populous city in East Africa. which translates to "the place of cool waters". Nairobi is also the capital of the Nairobi Province and of the Nairobi District. . Nairobi is currently the 12th largest city in Africa. the city became a centre for the colony's coffee. including the United Nations Environment Programme (UNEP) and the main coordinating and headquarters for the UN in Africa & Middle East. The city and its surrounding area also forms the Nairobi County. The City of Nairobi enjoys the status of a full administrative County/Region. During Kenya's colonial period. Nairobi City Council. The Nairobi province differs in several ways from other Kenyan regions. Nairobi is the regional headquarters of several international companies and organizations. It is ranked 4th in terms of trading volume and capable of making 10 million trades a day. The Nairobi Stock Exchange (NSE) is one of the largest in Africa and the second oldest exchange on the continent. Airtel and Cisco Systems relocated their African headquarters to the city. Nairobi was renamed a County. In 2010. Google. General Motors. These include Goodyear. Young & Rubicam. The NSE was officially recognized as an overseas stock exchange by the London Stock Exchange in 1953. The United Nations Office at Nairobi hosts UNEP and UN-Habitat headquarters. Home to thousands of Kenyan businesses and over 100 major international companies and organisations. the United Nations Office in Nairobi (UNON). when three districts were created.NAIROBI Nairobi is the capital and largest city of Kenya. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi. one of Africa's largest. Toyota Motors. However.THE CAPITAL CITY . Nairobi Province was not divided into "districts" until 2007. including the population of its suburbs. Founded in 1899 as a simple rail depot on the railway linking Mombasa to Uganda. along with the new constitution. with a current estimated population of about 3 million. the town quickly grew to become the capital of British East Africa in 1907 and eventually the capital of a free Kenyan republic in 1963. Nairobi is now one of the most prominent cities in Africa politically and financially. It has only one local authority. tea and sisal industry. CocaCola. Several foreign companies have factories based in and around the city. In 2007. it is popularly known as the "Green City in the Sun" and is surrounded by several expanding villa suburbs. The county is entirely urban. and Coca Cola. Nairobi is home to the Nairobi Stock Exchange (NSE). General Electric. Nairobi is an established hub for business and culture.

with 47.000 RELIGION The vast majority of Kenyans are Christian (83%). comprising 50 percent of the total population there. is home to Kibera. Sixty percent of the Muslim population lives in Coast Province. due to rapid population growth from 2.000). There is also a small group of Baha'is.000 and 1 million locals. Semi-urban . with 73% of residents aged below 30 years. 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. Kenya's capital.7%). who have played a key role in the local economy. one of the world's largest slums. The UNHCR base in Dadaab in the north also currently houses around 500. Nairobi. Western areas of Coast Province are mostly Christian.2%. In addition. In addition.000 people.7% regarding themselves as Protestant and 23.5% as Roman Catholic. Sizeable minorities of other faiths do exist (Muslim 11. Major cities in Kenya include: City Nairobi Mombasa Nakuru Kisumu Meru Nyeri Machakos Eldoret Population 3 375 000 966 000 337 200 273 400 273 000 179 500 140 900 100. The shanty town is believed to house between 170. where they constitute the majority religious group.POPULATION Kenya has a young population. The upper part of Eastern Province is home to 10 percent of the country's Muslims.9 million to 40 million over the last century. there is a large Hindu population in Kenya (around 50. indigenous beliefs 1.

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

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

The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain.60 Celsius and a minimum temperature of 9. The coastal side of the country has a hot and humid climate.50 Celsius. The climate is also humid in the Lake Victoria basin. while Eldoret has a maximum temperature of 23. The temperature in the coastal town of Mombasa ranges from a maximum of 30. The long rainy season occurs from April to July. The early hours of the morning are also cool and pleasant. During the daytime the weather is hot. It is one of the most spectacular events of the country. while the nights are cooler and comfortable. Generally speaking. Because of this reason. Kenya receives a lot of sunshine all around the year.30 Celsius to a minimum of 22.40 Celsius.60 Celsius minimum. the capital of the country has a temperature of 25. Nairobi. the regions in this area are of semi-desert and arid character. Summers are extremely hot over here and one is expected to wear light summer clothes. Rainfall is more on the eastern coast of the country. Most of the rains occur between April and July. Apart from the coastal areas. February and March are the hottest months of the country while July and August are the cooler months. its climate and weather conditions are also varied.20 Celsius maximum and 13. the country has a dry climate. while the shorter one occurs from October to December. The period ranging from June to September represent the migration period of the wildlife found in the country. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. . the central of the country experiences a cool and humid climate while the northern and eastern part of the country enjoys a hot and dry climate.CLIMATE As Kenya has a diverse geography. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. Kenya basically enjoys a tropical climate. Rainfall is high in the coastal regions of the country.

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

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

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

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

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

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

000 main telephone lines in use.74 percent of the power supply comes from hydroelectricity. hydro equipment tends to be outdated and poorly maintained. the government is eager to further develop both thermal and geothermal sources of power. In 1998.000 people. As of 1998. Kencell. 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. Kenya experienced its worst drought in 40 years. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. power outages and blackouts have become increasingly common as a result of chronic drought. Consequently.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. in comparison. Further adding to the problem. or approximately 9. 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.5 MW from a diesel plant in Nairobi. The United States.9 telephone lines per 1.000 people in 1996. Safaricom. boasted 640 phone lines per 1. there were 290. a joint venture between Vivendi France and Sameer of Kenya. total electricity production in Kenya equaled 4.23 billion kWh. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. . Only 8 percent of the Kenyan population is connected to the national grid. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. Since 82. a telecommunication corporation. a postal services corporation. and Postal Corporation of Kenya. In 1999-2000. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC).

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

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

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

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

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

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

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

6 percent. restaurants. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. Per capita GDP averages somewhat more than US$450 annually. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence.5 CHANGE (%) 46. 13. EAC integration. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010.1 2010/11 (%) 24. ICT innovations. 6. telecommunications. Without ICT.0 percent. trade. transport and communications. the driver of previous years' growth.6 . largely because of expansions in tourism.9 percent.8 percent—similar to the population growth rate—and income per capita would have stagnated. 25.In 2006 Kenya’s GDP was about US$17. GDP composition by sector. Over the last three decades Kenya has experienced only two short episodes when economic growth exceeded five percent and was sustained for at least three consecutive years: 1986-88 and 2004-2007. The country’s real GDP growth picked up to 2. manufacturing. government services.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). have moderated while agriculture and industry are rebounding after two weak years. ICT has been the main driver of Kenya's economic growth over the last decade. growing on average by 20 percent annually.7 percent. Real GDP is expected to continue to improve. per capita GDP in 2006 was about US$1.7 percent. Since 2000. Five factors are creating a positive momentum: the new constitution. strong macroeconomic management. 15. Services. Adjusted in purchasing power parity (PPP) terms.0 percent. and may now be at a tipping point for robust growth.200.9 percent. Kenya has seen the return of higher growth projected at 4. growth in 2010 would have been a lackluster 2. 14. and construction and a recovery in agriculture.3 and 6. transport. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). 24.8 percent. Kenya's economy grew at an average of 3. and recent investments in infrastructure. However. Economic growth in 2011-12 could range between 5. and other. was as follows: agriculture. and hotels. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth.39 billion. compared with a sluggish 1.0 percent if no shocks occur. according to 2004 estimates. Public sector investments in infrastructure will help to stimulate this growth.

9 -15.8 2.7 15.0 13.9 7.1 14.5 -14.4 1.9 15.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.1 -12.9 14.9 28.2 -0.0 3.9 .

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

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

accounted for about 24 percent of GDP. and coffee. The small-scale sector. is controlled by the parastatal Kenya Tea Development Authority. The principal cash crops are tea. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. About one-half of total agricultural output is non-marketed subsistence production. coffee is produced on many small farms and a few large estates.140 tons. compared with 80 percent in 1980. accounting for just 5 percent of export receipts in 2005. Production in 1999 reached 220.8 million.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports. Coffee has declined in importance with depressed world prices. Kenya is Africa's leading tea producer.1 million in 2001. including forestry and fishing. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). after tourism and tea. Coffee is Kenya's third leading foreign exchange earner. and Sri Lanka. In 2006 almost 75 percent of working Kenyans made their living on the land. or nearly 18% of total exports. behind India.000 farmers. In 2005 agriculture. Production in 2001/02 amounted to 52.000 tons. and only 7 or 8 percent can be classified as first-class land. operate on their own. as well as for 18 percent of wage employment and 50 percent of revenue from exports. and was fourth in the world. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. Similar to the tea sector. after the service sector. The estates. China. coffee earnings totaled $91. horticultural produce. Tea exports were valued at $404. In 2001. consisting of 60–75 private companies. All coffee is marketed . with more than 260. Black tea is Kenya's leading agricultural foreign exchange earner. The tea industry is divided between small farms and large estates.

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

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

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

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

an inland area in the Lamu basin. said they had no reason to doubt that there was oil in Kenya. . It also had a license for block L2. with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects. China National Offshore Oil Corporation (CNOOC) had worked with Africa Oil and Lion Energy Corp to drill an exploratory well in block 9 in northern Kenya. senior geologists at Uganda's Energy Ministry who were at the forefront of the country's search for oil two decades ago.overlooked region. Reacting to the current speculation about prospects for an early oil find. Before its exit mid this year.

” Exploration companies are increasing spending in Kenya as neighboring Uganda.based explorer Afren Plc. according to data from U. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest. 14.5 billion barrels of oil reserves. Only 32 exploratory wells have been drilled in Kenya. plans to sink two test wells in north.OIL EXPLORATION Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya. to prospect for oil in Kenya. CNOOC. “I wouldn’t be surprised if the Kenyan government tries to capitalize on it. while U. “The more wells that are drilled. the London-based explorer with the most licenses in Africa.000 in north and central Africa. the faster a discovery will be made.” . Petroleum Commissioner Martin Heya said. . The deal allowed for China's state-controlled offshore oil and gas company. and there has been no formal estimate of the possible reserves.mailed response to questions today. That compares with 480 in East Africa. Heya said in an interview in Nairobi. he said.” Heya said. with an estimated 2.western Kenya this year and early 2012.K. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy. and other companies may follow as more plans are approved.” Dragan Trajkov. an oil and gas analyst at Renaissance Capital Ltd. in London. prepares to become a crude producer next year when Tullow expects to start pumping from the Lake Albert Basin. Spending on exploration and drilling is estimated at $126 million.500 in the west of the continent and 19. which is just beginning to drill its first exploratory wells on the borders of Sudan and Somalia and in coastal waters. said an e. (AFR) “Big companies like Tullow coming into the country automatically creates more interest. (APA) may drill offshore next year. Tullow Oil Plc (TLW). as it provides credibility to potentially finding more discoveries.-based Apache Corp. the Kenyan capital. 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.S. No oil has been discovered yet.

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

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. It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007. . Lee the former Prime Minister of Singapore. government officials and even international personalities like Baroness Chalker from the U. and Mr. social scientists.K. 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.VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development.

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

This figure was a significant increase over 2005. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. the German chemical manufacturer and producer of Nivea skincare products. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. with occasional tightening of restrictions to promote the Africanization of enterprises.7 billion.2 billion.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. food manufacturer Cadbury and Toyota Tsusho Corporation. The payment for imports was about US$5.2.7 billion. 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 –4.5 billion. yielding a trade deficit of about US$2. between 60 and 70 percent of industry is still owned from abroad. In 2005 Kenya’s income from exports was about US$3. Notwithstanding some restrictions. Other multinationals operating in Kenya includes British American Tobacco (BAT).Kenya typically has a substantial trade deficit. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. the global shoe company headquartered in Canada. . when the current account had a deficit of US$495 million. and capital. Foreign investors have been guaranteed ownership and the right to remit dividends. However. In 2006 Kenya’s external debt totaled US$6. In the 1970s. royalties. Kenyan policies on foreign investment generally have been favorable since independence. Also present are Bata. Important multinationals active in Kenya Barclays Bank. and Beiersdorf.5 billion. This denied Kenyans the opportunity to progress economically . Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya.

Tanzania.KENYA EXPORTS Kenya exports were worth 45.3 Billion KES in October of 2011. petroleum products. Netherlands. Kenya main exports partners are UK. China. iron and steel. motor vehicles. resins and plastics. iron and steel products. South Africa. coffee. UAE. Uganda. Agricultural products are central to Kenya's export industry with horticultural and tea being the most important.7 Billion KES in October of 2011. Saudi Arabia. . Kenya imports mostly machinery and transportation equipment. United States and Pakistan. tobacco. petroleum products. cement. Other export items include textiles. KENYA IMPORTS Kenya imports were worth 115. United States and Japan. Kenya main import partners are India.

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

3 8.7 521.6 39.6 5.104 16. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.6 4.8 3.1 4. resulting in simmering discontent. In both Uganda and Kenya.5 31.8 7.5 6. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.187 23.7 6.8 6.964 77.9 6.3 5.5 5.A MACRO-ECONOMIC INDICATORS Comparison of E.5 .3 5.6 126 808.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices. The win effect of the high food and fuel costs have pushed up the cost of living across the region.0 532.7 4.4 6.6 4.5 6.1 3.7 528. All the four finance ministers have been careful to include in their budgets social interventions to cushion their citizens against the rising cost of living.0 43.2 6.0 7.7 6.5 11.A Macroeconomic Indicators GDP current prices(USD Million) Real GDP growth rate(%)–2010/11 Real GDP growth rate(%)–2009/10 Population(Million ) GDP per capita(USD)current prices Overall inflation rate (%) Treasury bill interest rate (%) Budget deficit % of GDP at current Kenya Tanzania Uganda Rwanda EA Total/ Average 32.1 617. COMPARISON OF E.822 5.567 5.6 2.5 10.3 5.

0 10.300 946 29.241 4.2 15.436 2.8 7.7 12.0 37.3 36.0 11.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) 12.937 3.6 45.0 9.417 11.904 21.5 13.2 13.0 31.8 17.145 800 14.8 35.318 .9 8.

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

.com/kenya/inflation-cpi . Kenya Economic Update.keu) Read more: Kenya Infrastructure. Information about Infrastructure. and communications in Kenya http://www. www. www.worldbank. power.nationsencyclopedia. www.centralbank.worldbank.html#ixzz1m90WmYO6 (source: Kenya Economic Update.tradingeconomics. December and communications. December (ref.

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