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Jamhuri ya Kenya
THE CONTINENT OF AFRICA
Kenya officially known as the Republic of Kenya is a country in East Africa that lies on the equator. With the Indian to its south-east, it is bordered by Tanzania to the south, Uganda to the west, South Sudan to the north-west, Ethiopia to the north and Somalia to the north-east. Kenya has a land area of 580,000 km2 and a population of nearly 41 million, representing 42 different people and cultures. The country is named after Mount Kenya, a significant landmark and second among Africa's highest mountain peaks. Following a referendum and adoption of a new constitution in August 2010, Kenya is now divided into 47 counties that are semi-autonomous units of governance. These units are expected to be fully implemented by August 2012 – in time for the first general election under the new constitution. The counties will be governed by elected governors and will operate independent of the central government in Nairobi. The country's geography is as diverse as its multi-ethnic population. It has a warm and humid climate along its coastline on the Indian Ocean which changes to wildliferich savannah grasslands moving inland towards the capital Nairobi. Nairobi has a cool climate that gets colder approaching Mount Kenya, which has three permanently snow-capped peaks. The warm and humid tropical climate reappears further inland towards Lake Victoria, before giving way to temperate forested and hilly areas in the western region. The North Eastern regions along the border with Somalia and Ethiopia are arid and semi-arid areas with neardesert landscapes. The country also has significant geothermal activity that puts a lot of electricity in the national grid. Kenya's capital city, Nairobi, is situated next to a national park. The country is famous for its safaris and diverse world-famous wildlife reserves such as Tsavo National Park, the Maasai Mara, Nakuru National Park, and Aberdares National Park that attract tourists from all over the world. Lake Victoria, the world's second largest fresh-water lake (after Lake Superior in the US and Canada) and the world's largest tropical lake, is situated to the southwest and is shared with Uganda and Tanzania. As part of East Africa, Kenya has seen human habitation since the Lower Paleolithic period. The Bantu expansion reached the area by the first millennium AD, and the borders of the modern
The independent Republic of Kenya was founded in December 1963. The economy of Kenya is the largest by GDP in East and Central Africa. Nilo-Saharan. Nairobi. The British Empire established the Protectorate in 1895. mostly the telecommunications sector. and Asiatic linguistic areas of Africa. The capital. Agriculture is a major employer and the country traditionally exports tea and coffee. . The service industry is a major economic driver. but European exploration of the interior began only in the 19th century. Kenya is a member of the East African Community. making Kenya a truly multi-cultural state. and more recently fresh flowers to Europe. known from 1920 as the Kenya Colony. is a regional commercial hub. European and Arab presence in Mombasa dates to the Early Modern period. and contributes 62 percent of GDP.state comprise the crossroads of the Niger-Congo.
Netherlands 8. fluorspar Uganda 10. meat and meat products. wheat. horticultural products. sisal.2%.8%. Egypt 4. dairy products.22 billio tea. soft drinks. coffee. vehicle assembly. n petroleum products. sisal. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures.Titanium.2% Per Capita Income (PPP)= $1.8%. $ 66. skins petroleum products. pyrethrum. hides and skins.1%. cement. sugarcane. horticultural products. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. hides. Tanzania 9. cement. pineapples. paper and light manufacturing.600 Wildlife. US 5.3% (2010) Major markets (2010) .16 billion (2010) at Market Price. textiles.1% : Estimate for 2007 = 7. Democratic Republic of the Congo 4. pyrethrum. soda ash. land (5% arable).8%.7%. UK 8. coffee. rice.03 billion (Purchasing Power Parity. grain and sugar milling. 5.Economic summary $32.8% (2005): 2006 = 6. beer. Coal tea. corn.
Japan 4.8%.4%.7%. India 13.4%. South Africa 8.6%. motor vehicles. n petroleum products. iron and steel. Saudi Arabia 6.7% (2010) iers .Imports $11. UAE 9. resins and plastics Major suppl China 13.2 billio machinery and transportation equipment.
It has a coral reef and is supported by a dry coastal plain that is covered by thorny bushes and savanna. the regions of the country are mostly arid and of semi desert nature. In general. Kenya is located on the eastern part of the African continent. It lies between latitudes 5°N and 5°S.199 meters high. To the southwest of the country lies Tanzania while to the west lies Lake Victoria and Uganda. The valley basically dissects the Kenyan highlands into east and west. which forms a major part of the geography of Kenya. The highest point of the country lies in Mount Kenya. the geography of Kenya also includes its numerous forests also. Yala and Gori. It is one of the major agricultural regions of the country. Some of the major forest areas of the country include the Kakamega Forest and the Mau Forest. Another major river of the county is the Ewaso Ngiro. The biggest feature of Kenya is the Great Rift Valley located in the central and western part of the country. On the western part of the country one can find Lake Victoria. One can find a large number of swamps in the Loraine Plain. To the east one can find a large number of rainforests. Kenya is the world's forty-seventh largest country. which is extremely fertile. The country is bordered by Sudan and Ethiopia in the north and Uganda to the west. . flows across the country before draining into Lake Victoria. The Kenyan coast is a low-lying area. Apart from these. One can find a large number of lakes and rivers in this country. In general one can say. At 580. The rivers Tana and Athi flows in the southeastern part of the country while Nzoia. The highlands have a cool climate and are known for their fertile soil. The terrain of the country gradually changes from the low-lying coastal plains to the Kenyan highlands. that the country stretches from the sea level in the east to the snow capped mountain in the north. Apart from this. found in the northeastern part of the country.081 sq mi). which is 5.GEOGRAPHICAL LOCATION The Geography of Kenya gives one a complete idea about the location of the country and its physical features. Somalia lies to the east of the country while Indian Ocean borders the country in the southeastern part. Other major lakes of the country include Lake Naivasha and Lake Nakuru.367 km2 (224. the other mountain ranges that one can find over here include Mount Elgon and Mount Kilimanjaro. and longitudes 34° and 42°E. On the northern part of the country one can find Lake Turkana. There are a large number of rivers also in Kenya. situated in the northeastern part of the country.
including the population of its suburbs. Nairobi is an established hub for business and culture. Toyota Motors. Nairobi was renamed a County. Nairobi City Council.THE CAPITAL CITY . the city became a centre for the colony's coffee. Nairobi is home to the Nairobi Stock Exchange (NSE). . Nairobi Province was not divided into "districts" until 2007. Airtel and Cisco Systems relocated their African headquarters to the city. Nairobi is now one of the most prominent cities in Africa politically and financially. It is ranked 4th in terms of trading volume and capable of making 10 million trades a day. However. The Nairobi province differs in several ways from other Kenyan regions. It has only one local authority.NAIROBI Nairobi is the capital and largest city of Kenya. Home to thousands of Kenyan businesses and over 100 major international companies and organisations. Several foreign companies have factories based in and around the city. Young & Rubicam. In 2007. along with the new constitution. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi. with a current estimated population of about 3 million. The county is entirely urban. The United Nations Office at Nairobi hosts UNEP and UN-Habitat headquarters. Nairobi is the regional headquarters of several international companies and organizations. it is popularly known as the "Green City in the Sun" and is surrounded by several expanding villa suburbs. CocaCola. The City of Nairobi enjoys the status of a full administrative County/Region. tea and sisal industry. 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. 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. General Motors. Nairobi is the most populous city in East Africa. The NSE was officially recognized as an overseas stock exchange by the London Stock Exchange in 1953. General Electric. which translates to "the place of cool waters". and Coca Cola. In 2010. the United Nations Office in Nairobi (UNON). when three districts were created. Founded in 1899 as a simple rail depot on the railway linking Mombasa to Uganda. Google. During Kenya's colonial period. The Nairobi Stock Exchange (NSE) is one of the largest in Africa and the second oldest exchange on the continent. Nairobi is currently the 12th largest city in Africa. These include Goodyear. Nairobi is also the capital of the Nairobi Province and of the Nairobi District. one of Africa's largest.
The shanty town is believed to house between 170.000).000 people. one of the world's largest slums.POPULATION Kenya has a young population. there is a large Hindu population in Kenya (around 50. comprising 50 percent of the total population there.2%.7% regarding themselves as Protestant and 23. due to rapid population growth from 2.5% as Roman Catholic.9 million to 40 million over the last century. Semi-urban . indigenous beliefs 1. who have played a key role in the local economy. Nairobi.7%). with 47. The upper part of Eastern Province is home to 10 percent of the country's Muslims. with 73% of residents aged below 30 years. In addition.000 and 1 million locals. Sizeable minorities of other faiths do exist (Muslim 11.000 RELIGION The vast majority of Kenyans are Christian (83%). There is also a small group of Baha'is. is home to Kibera. Kenya's capital. where they constitute the majority religious group. Western areas of Coast Province are mostly Christian. Sixty percent of the Muslim population lives in Coast Province. The UNHCR base in Dadaab in the north also currently houses around 500. 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. 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. In addition.
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. including the Masai Mara. reptiles and birds can be found in the national parks and game reserves in the . Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian. European and Arab) Percentage 22% 14% 13% 12% 11% 6% 6% 15% 1% Kikuyu woman in traditional attire WILDLIFE Ke nya has considerable land area devoted to wildlife habitats. leopard.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season. buffalo. Up to 250.and rural populations are less multilingual with many in remote villages speaking only their mother tongue. rhinoceros and elephant. where Blue Wildebeest and other bovid participate in a large scale annual migration.
country. in a constant clockwise fashion. Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration.800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya. searching for food and water supplies.5 million of these ungulates migrate a distance of 1. 11. . The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part.
60 Celsius minimum. The long rainy season occurs from April to July.30 Celsius to a minimum of 22. Most of the rains occur between April and July. its climate and weather conditions are also varied. while the shorter one occurs from October to December. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain.20 Celsius maximum and 13. The temperature in the coastal town of Mombasa ranges from a maximum of 30. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. the country has a dry climate. .40 Celsius. February and March are the hottest months of the country while July and August are the cooler months. while Eldoret has a maximum temperature of 23. The climate is also humid in the Lake Victoria basin. Kenya receives a lot of sunshine all around the year. Rainfall is more on the eastern coast of the country.50 Celsius. Kenya basically enjoys a tropical climate. while the nights are cooler and comfortable. Nairobi. Summers are extremely hot over here and one is expected to wear light summer clothes. the regions in this area are of semi-desert and arid character.CLIMATE As Kenya has a diverse geography. During the daytime the weather is hot. Because of this reason. The early hours of the morning are also cool and pleasant. Generally speaking.60 Celsius and a minimum temperature of 9. 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 coastal side of the country has a hot and humid climate. It is one of the most spectacular events of the country. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. the 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. the capital of the country has a temperature of 25.
Private schooling also exists in Kenya. Life expectancy is estimated at between 47 and 55 years. secondary and college. This practice is however on the decline as the country becomes more modernised and the practice was also banned in the country in 2011. there are many private schools in the country. Too many women and children still die at birth or within the first year of life. pneumonia.49 children per woman in 2012. Weak policies. In January 2003. In 2007 the government issued a statement declaring that from 2008. The Joint Admission Board (JAB) is responsible for selecting students joining the public universities. HIV/AIDS. primary. with the government footing all tuition fees. diarrhea and malnutrition are the major child killers and responsible for much morbidity. Similarly. inadequate health workers. More die before their 5th birthday. As a result. Secondary and tertiary education enrollment has not increased proportionally because payment is still required for attendance. . Other than the public schools. Maternal mortality is high. mainly in urban areas. there are a number of international schools catering for various overseas educational systems. partly because of female genital mutilation. there is a national examination at the end of Form Four – the Kenya Certificate of Secondary Education (KCSE). secondary education would be heavily subsidized. The total fertility rate in Kenya is estimated to be 4. Preventable diseases such as malaria. At the end of primary education. Kenya's education system consists of early childhood education. EDUCATION The country's literacy level stands at 85% of the whole population. which determines those proceeding to the universities. weak management and poor leadership in most public health facilities are largely to blame. pupils sit the Kenya Certificate of Primary Education (KCPE). primary school enrollment increased by about 70%. which determines those who proceed to secondary school or vocational training. other professional training or employment. For those who proceed to secondary level.HEALTH Despite major achievements in the health sector. Kenya still faces many challenges. There are a large number of HIV-positive people in Kenya. the Government of Kenya announced the introduction of free primary education.
Culture of Kenyais amply reflected through its people. Apart from this. which is the most well known culture of the country. music and dance. Nairobi. The Bantu language speakers. Gusii. Where on one hand the different tribes of the country have maintained their unique style of clothing. traditions. who settled on the coastal part of the country. However. is the seat of the country's culture. which adds to the unique culture of the country and its people. jewellery and distinct custom. who have their own distinct culture. and Luo. Owing to its colonial history.CULTURE Culture in Kenya is a mix of diverse cultures and traditions. inspite of such strong foreign influence. the culture of the country has a strong European and Arabian influence. Culture of Kenya is a mix of both modern and traditional cultures. a semi-nomadic tribe known for their clothes. art. dance and music. was spread by the Maasai. Kenya culture is extremely unique and has an identity of its own. Kamba. The Maasai culture. were responsible for creating and spreading this culture. there are a large number of other tribes like the Kikuyu. Luhya. The main culture of the country is the Swahili Culture and the Maasai culture. The Swahili Culture is the oldest culture of the country. the capital of the country. their customs. . on the other hand they have also adopted the cultural patterns of modern society. society.
Kenya has a diverse assortment of popular music forms. Kenya has consistently produced Olympic and Commonwealth Games champions in various distance events. commonly acknowledged as one of the toughest rallies . with both the clubs and the national team winning various continental championships in the past decade. cricket and boxing are the most popular sports played in the country. nose rings.000 m steeplechase. Guitars and drums are the popular instruments used in Kenyan music. Kenyan hip-hop and different types of folk music and tribal music. In the motor rallying arena. necklaces. which include afro-fusion music. Cricket is another popular and the most successful team sport. Road running and athletics are also popular.000 m. five gold. Kenya won several medals during the Beijing Olympics. Kenya is home to the world famous Safari Rally. Jewelry is made from colorful beads and other articled and consists of headgears. Kenya has competed in the Cricket World Cup since 1996. It is extremely colorful and are heavily embroidered. Kenya has been a dominant force in women's volleyball within Africa. Football. 1. Infact. it is home to different varieties of music. 3. 10. 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. in addition to multiple types of folk music based on the variety over 40 regional languages. A large number of film festivals and theatre festivals are held in this country. armlets. rugby. earrings. But the country is known chiefly for its dominance in Middledistance and long-distance athletics. anklets and others.The clothing is unique. Benga music. Kenyan people are sports lovers.000 m and the marathon. especially in 800 m. 5. The country has also made valuable contributions in the field of film and theatre. 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. five silver and four bronze.500 m. The people also love to wear heavy jewelry. This has led to a suspension by FIFA which was lifted in March. 2007.
These include various media sources like radio. Kenya Entertainment in not only restricted to the capital city of the country. but is also spread to the various other regions in Kenya. there are also other entertainment sources in Kenya. ENTERTAINMENT Kenya entertainment includes several activities that can make the stay at the place memorable. The nightclubs and hotels of Kenya generally organize live music bands during evening and night. There are many nightclubs. Many concerts are also held in Kenya. Some of the popular channels are as follows: • • • • • • • Nation TV Kenya Television Network Stella TV Kenya Broadcasting Corporation Metro TV Family TV Citizen TV Radio in Kenya is also an important source that provides entertainment to the people. There are also tribal and traditional dances and songs that are hosted and organized in various halls of the country. Kenya is a country that offers numerous attractions to the tourists. The clubs and hotels are busier during the weekends. which provide complete entertainment to both the local people and the tourists. discos. The Kenya Broadcasting Corporation provides various radio networks at the regional. Apart from the various nightclubs and casinos. Nightlife in Kenya is also highly active with various nightlife entertainment facilities for the tourists. especially during the festive season in the country. Numerous television channels broadcast myriad programs that cater to various types of people in the country. national and local .in the world. Many people gather in these places to get a flavor of live band music. The disc jockeys churn out lively and catchy music for the visitors. television. films and newspapers. 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. bars and pubs in Nairobi as well as in Mombasa.
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. regional news. The FM channels that are broadcasted on Kenya radio include: • • • Kiss FM Kenya Capital FM Kameme FM Newspapers are a source of entertainment as well as information in the country. The Kenyan newspapers cover topics related to politics. KBC English Radio Service and KBC Kiswahili Radio Service are the two radio stations that operate under the National Radio Network in Kenya. . Films are a major source of entertainment in the country. The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal.level. entertainment and many more. sports. Many internationally renowned films have been made in Kenya.
1 million tons. Accordingly. designed to create links between all major and minor roads. however. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. for example.800 kilometers of highway. the KR would lease locomotives to private-sector operators. Of the total 63.). the busiest airport in Africa. In the same year. handles light aircraft and general aviation. is the country's main seaport and serves most East and Central African nations.868 kilometers are paved (1996 est. There are 3 international airports. The deepwater port. only 8.000 miles connecting most parts of the country. warehousing. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. boasting 21 berths.S. Wilson airport in Nairobi. the Kenyan government recently launched the ambitious 'Roads 2000' project. According to the U. The project. while the government has made plans to open up the railways to private-sector participation by limiting the KR's role to owning and regulating lines. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. including cold storage. As a result of heavy operational losses. including 21 that are paved. In 1999. Department of State Country Commercial Guide 2000 . offers specialized facilities. is expected to cost US$245 million. Kenya's port of Mombasa. the state-owned . The international and domestic air transport infrastructure is relatively well-developed in Kenya. which serves more than 30 airlines providing scheduled services to cities around the world.000 kilometers of roads in 6 urban centers.INFRASTRUCTURE Kenya has an extensive road network of approximately 95. in addition to rehabilitating 20. In collaboration with various donors. which runs from Mombasa through Nairobi to the Ugandan border. there has been a steady deterioration in the KR's services. which will span approximately 3 years. and container terminal. Kenya has 230 airports. which has an annual average freight throughput of about 8. In total. the current state of most roads is deplorable. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. the largest is Nairobi's Jomo Kenyatta International Airport.
Since 82. In 1998. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. a joint venture between Vivendi France and Sameer of Kenya. Consequently. Safaricom. or approximately 9. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). In 1999-2000.000 people in 1996.74 percent of the power supply comes from hydroelectricity.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. boasted 640 phone lines per 1. total electricity production in Kenya equaled 4. there were 290. 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. Further adding to the problem.000 main telephone lines in use.5 MW from a diesel plant in Nairobi. The United States. Kenya experienced its worst drought in 40 years.000 people. a telecommunication corporation. a postal services corporation. Kencell.23 billion kWh. . 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. the government is eager to further develop both thermal and geothermal sources of power. and Postal Corporation of Kenya. Only 8 percent of the Kenyan population is connected to the national grid. As of 1998. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. hydro equipment tends to be outdated and poorly maintained.9 telephone lines per 1. in comparison. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary.
and rewriting its constitution. most of which were judged free and fair by international observers. the new ruling coalition promised to focus its efforts on generating economic growth. Eastern 5. Under the presidency of Mwai Kibaki. Nyanza 8. which had ruled the country since independence to the National Rainbow Coalition (NARC). The 2002 elections marked an important turning point in Kenya's democratic evolution in that power was transferred peacefully from the Kenya African Union (KANU). Rift Valley . combating corruption. whereby the President is both the head of state and head of government. Kibaki Kenya has maintained remarkable stability despite changes in its political system and crises in neighboring countries. and of a multi-party system. Legislative power is vested in both the government and the National Assembly. Nairobi 6. In December 2002. The Judiciary is independent of the executive and President Mwai the legislature. a coalition of political parties. Executive power is exercised by the government. Central 2. Central 3. A few of these promises have been met ADMINISTRATIVE REGIONS The provinces are: 1.POLITICS Kenya is a presidential representative democratic republic. Coast 4. improving education. Kenyans held democratic and open elections. North Eastern 7.
Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). There were 69 districts as of 1999 census. 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 .Under the old constitution.9. The City of Nairobi enjoys the status of a full administrative province. The government supervises administration of districts and provinces. . Districts are then subdivided into 497 divisions . The divisions are then subdivided into 2. The provinces were subdivided into districts .427 locations and then 6.612 sub locations.
the three East African countries signed a Customs Union Agreement. which resulted in East Africa's most profitable company – Safaricom. especially the vital tea sector. Industry and manufacturing is the smallest sector that accounts for 16 percent of the GDP. As of May 2010. following the chaos which engulfed the country. and Uganda re-established the East African Community (EAC). seen by strong performance in tourism. boosted by rapid expansion in telecommunication and financial activity over the last decade. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry. In March 2004. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company.ECONOMY Despite western donors' early disappointment with the government. Unfortunately. But this changed immediately after the disputed presidential election of December 2007. higher education and telecommunications. telecommunications. largely because of expansions in tourism. The World Bank predicts growth of 4% in 2010 and a potential of 4. the Presidents of Kenya. economic prospects are positive with 4–5% GDP growth expected. However. .9% growth in 2011. transport. and now contributes 62 percent of GDP. and improving regional infrastructures. East and central Africa's biggest economy has posted tremendous growth in the service sector. the economy has seen much expansion.an important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. free movement of people. has led to their revival due to massive private investment. kerosene and cooking oil. construction and a recovery in agriculture. 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 . Tanzania. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour. In March 1996. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. The EAC's objectives include harmonizing tariffs and customs regimes. and acceptable post-drought results in agriculture.
including mortgage companies. four savings and loan associations. Kenya is East and Central Africa's hub for financial services. The Nairobi Securities Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. . Kenya ranks poorly on Transparency International's corruption perception index. and several score foreign-exchange bureaus. industry and manufacturing sectors only employ 25 percent of the labor force but contributes the remaining 75 percent of the GDP. As of late July 2004. the system consisted of 43 commercial banks (down from 48 in 2001). several non-bank financial institutions. The Kenya banking system is supervised by the Central Bank of Kenya (CBK).The more efficient and lucrative technology-knowledge-and-skill-based service.
In 1986. In 1985. a portrait of Daniel arap Moi replaced Kenyatta until 2005. when the central bank introduced a new coin series that restored the portrait of Kenyatta. In 1980. New coins with the image of Kenyatta were issued in 2005. 5 shillings notes were replaced by coins in 1985. the Central Bank of Kenya issued notes in denominations of 5. 5 shillings coins were introduced. and 1 and 2 shillings. followed by 10 shillings in 1994 and 20 shillings in 1998. followed by 500 shillings in 1988 and 1000 shillings in 1994. COINS The first coins were issued in 1966 in denominations of 5. 2 shillings coins were last minted in 1971. BANKNOTES In 1966. originally appeared on the obverse of all of independent Kenya's coins. the portrait of Jomo Kenyatta. AND INFLATION The Kenyan shilling replaced the East African shilling in 1966 at par. 10. The coins are 50 cents and 1 shilling in stainless steel and bimetallic coins of 5. 25 and 50 cents.CURRENCY. Between 1967 and 1978. EXCHANGE RATE. 10. A bi-metallic 40 shilling coin with the portrait of President Kibaki was issued in 2003 to commemorate the fortieth anniversary of independence (1963–2003). 10 and 20 shillings. 50 and 100 shillings. . with the same happening to 10 and 20 shillings in 1994 and 1998. Twenty-five cents coins were not minted after 1969. 20. the first president of Kenya. 200 shillings notes were introduced.
from about 83 shillings per US dollar to about 100 shillings per US dollar at late 2011. after Mwai Kibaki replaced Moi as president. The banknotes are printed in Nairobi by De La Rue. and 20 shilling notes from the 1978 series with Kenyatta's picture that had been in storage were issued. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978. 500 and 1000 shilling. 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. with Daniel arap Moi's portrait replacing him in 1980. 200. 10. In 2003. . But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012. 5. including increasing interest rate and money market operations. A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50. EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. 100. and circulated for a time.As with the coins. INFLATION The inflation rate in Kenya was last reported at 18.9 percent in December of 2011.
GROSS DOMESTIC PRODUCT (GDP) Kenya’s economic performance since independence .
ICT has been the main driver of Kenya's economic growth over the last decade. have moderated while agriculture and industry are rebounding after two weak years. strong macroeconomic management. The country’s real GDP growth picked up to 2. and recent investments in infrastructure. 24.1 2010/11 (%) 24.7 percent. per capita GDP in 2006 was about US$1. the driver of previous years' growth. growing on average by 20 percent annually. and hotels. Since 2000. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. according to 2004 estimates. Services.5 CHANGE (%) 46.6 percent.In 2006 Kenya’s GDP was about US$17. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. manufacturing. 15. 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. and may now be at a tipping point for robust growth.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. GDP composition by sector.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002).0 percent. government services.7 percent. Kenya's economy grew at an average of 3.200. and construction and a recovery in agriculture. However. restaurants. Adjusted in purchasing power parity (PPP) terms. Economic growth in 2011-12 could range between 5. EAC integration. 25. Without ICT. largely because of expansions in tourism. Public sector investments in infrastructure will help to stimulate this growth.0 percent.8 percent.3 and 6. trade. transport and communications. Five factors are creating a positive momentum: the new constitution. Kenya has seen the return of higher growth projected at 4. 13.6 .39 billion. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. transport. was as follows: agriculture.0 percent if no shocks occur.8 percent—similar to the population growth rate—and income per capita would have stagnated. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). telecommunications. ICT innovations. Per capita GDP averages somewhat more than US$450 annually. and other. compared with a sluggish 1. 6.9 percent. 14.9 percent. Real GDP is expected to continue to improve. growth in 2010 would have been a lackluster 2.
9 15.9 28.1 -12.9 -15.7 15.5 -14.9 7.0 3.9 14.1 14.8 2.9 .0 13.4 1.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.2 -0.
Blue Market. One can check out the elephants. which include the beaches on the southern coast and the numerous national parks. Nakuru. Nairobi. is dominated by tourism. rhinoceros's. Tsavo East National Park and others. Tourism in Kenya is mainly centered around two major geographical areas of the country. which includes the Times Tower. Some of the major wildlife sanctuaries that one can pay a visit include the Amboseli National Reserve. giraffes. . The cities are known for their history and one can pay a visit to the numerous tourist attractions found over here. Kisumu. which contributes about 63 percent of GDP. lions and a variety of birds like falcons and others in these natural reserves. 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 cities of Lamu. Railway Museum. When on a vacation to Kenya. Eldoret and others. The country is home to a large number of natural reserves also. cheetahs. Mombassa. Chyulu Hills National Park. Kenya has over the years become a major tourist destination of the world. amazing wildlife and diverse culture has been attracting tourists from all across the world every year. one can pay a visit to the beaches on the coast of the Indian Ocean.INDUSTRY IN KENYA TOURISM Kenya's services sector. Travelers coming here for a holiday can take a look at breathtaking view of its scenery and picturesque landscapes. Watamu National marine Park and others. The country with its breath taking scenery. One can pay a visit to the Shela Beach in the city of Lamu. leopards. Bedsides these. 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.
which helps in generating revenue for the country. It has helped in preserving the cultural traditions. Large number of international travelers come to this country and embarks on adventure safaris. customs. . music and dance of the country. The people of the country have also become much more aware and knowledgeable. over the past few years and has thus contributed towards the economic development of the country. Tourism is a major industry of Kenya. Tourism has also helped in providing employment to a large number of people in Kenya. Tourism has made major contributions toward the country's GDP. A large number of hotels are regularly coming up over here to provide accommodation to the tourists coming here for a holiday. Tourism generates revenue of nearly $500million per year. Kenya tourism is a rapidly growing industry and is all set to help in making valuable contributions towards the development of the country.Kenya tourism has had a favorable impact on the culture and tradition of the country. The hotel industry has also flourished because of this reason. Tourism has inculcated environmental awareness amongst them and has also widened their outlook.
The estates. as well as for 18 percent of wage employment and 50 percent of revenue from exports. and Sri Lanka. is controlled by the parastatal Kenya Tea Development Authority. after tourism and tea. and only 7 or 8 percent can be classified as first-class land. coffee earnings totaled $91. Coffee is Kenya's third leading foreign exchange earner. In 2001. Coffee has declined in importance with depressed world prices.140 tons. China. Production in 1999 reached 220. Similar to the tea sector. with more than 260. and coffee. The principal cash crops are tea. including forestry and fishing. consisting of 60–75 private companies. The tea industry is divided between small farms and large estates. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports. In 2006 almost 75 percent of working Kenyans made their living on the land. behind India. accounting for just 5 percent of export receipts in 2005. after the service sector.000 tons. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. or nearly 18% of total exports. Black tea is Kenya's leading agricultural foreign exchange earner. and was fourth in the world. Production in 2001/02 amounted to 52. Tea exports were valued at $404. The small-scale sector.1 million in 2001. About one-half of total agricultural output is non-marketed subsistence production. In 2005 agriculture. accounted for about 24 percent of GDP. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. horticultural produce. operate on their own.000 farmers. Kenya is Africa's leading tea producer. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP).AGRICULTURE The agricultural sector continues to dominate Kenya’s economy.8 million. compared with 80 percent in 1980. coffee is produced on many small farms and a few large estates. All coffee is marketed .
Kenya is the world's largest producer and exporter of pyrethrum. avocados. Kenya's Agriculture Performance in 2010: The agriculture sector has been rebounding in 2010 and is expected to grow by 5 percent. snow peas. output contracted as coffee production was slow to recover from the prolonged drought in early 2009. which had previously been the best year for the sector. and lilies. sisal. The production of major food staples such as corn is subject to sharp weather-related fluctuations. The sector continued to be affected by a muted recovery in Europe. astromeria. following tea and coffee. and wheat are grown in the fertile highlands. and is now the third leading agricultural export. cabbages. Tea. This is an important development after two consecutive years of decline.7 percent. known as pyrethrin.through the parastatal Coffee Board of Kenya. Although coffee is benefitting from an increase in global prices. statice. sugarcane. in 2004 aid for 1. The pyrethrum extract. pineapples. one of the most successful agricultural production regions in Africa. is derived from the flower's petals. Production downturns periodically necessitate food aid—for example. coffee. However. Fresh produce accounted for about 30% of horticultural exports. Horticulture exports contracted for the third consecutive year. Flowers exported include roses. Favorable weather conditions and specific policy interventions under the government's economic stimulus program helped turn the sector around. pyrethrum. 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. and corn are grown in the lower-lying areas. sisal. mangoes. the expansion of credit to the agricultural sector has enabled farmers to better deal with the large risk of agriculture based on rainfall and the dramatic fluctuations of the prices of agricultural products. Kenyan horticulture has become prominent in recent years. a flower that contains a substance used in pesticides. carnations. and passion fruit.8 million people because of one of Kenya’s intermittent droughts. cotton. A combination of volume and price increases will see the sector perform even better than in 2008. Coconuts. and included green beans. Livestock predominates in the semi-arid savanna to the north and east. especially the fruits and . onions. driving coffee prices to historical lows. The performance of Kenya's main agriculture exports in 2010 was strongest for tea which recovered rapidly from 2009 weather conditions. cashew nuts. corn.
One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. and fluorspar. according to the Mining Act. output from fishing has been declining because of ecological disruption. MINING AND MINERALS Kenya has no significant mineral endowment. Apart from soda ash. accounting for less than 1 percent of gross domestic product.000 cubic meters. Pollution. overfishing. The mining and quarrying sector makes a negligible contribution to the economy. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species.162. the chief minerals produced are limestone.vegetables. In addition.000 metric tons. Kenya’s mineral production in 2005 reached more than 1 million tons. gold. . salt. In 2004 round wood removals came to 22. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. However. 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. All minerals not extracted are government property. Thanks largely to rising soda ash output. Kenya’s total catch reported in 2004 was 128.
and farm implements. and was fourth in the world. Kenya's clothing sales to the United States increased from US$44 million to US$270 million. e. concentrated around the three largest urban centers. .000 farmers. The tea industry is divided between small farms and large estates. including the removal of duty on capital equipment and other raw materials.S. Kenya is Africa's leading tea producer. Tea exports were valued at $404.. and Kisumu. or nearly 18% of total exports. China.1 million in 2001. with more than 260. The estates. motor-vehicle parts. Mombasa. is controlled by the parastatal Kenya Tea Development Authority. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures.INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. In addition. Kenya's inclusion among the beneficiaries of the U. mainly for the domestic market. consisting of 60–75 private companies. Since AGOA took effect in 2000. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years. is dominated by food-processing industries such as grain milling. Black tea is Kenya's leading agricultural foreign exchange earner. There is a vibrant and fast growing cement production industry. Nairobi. beer production. manufacturing still accounts for only 14 percent of gross domestic product (GDP). and Sri Lanka. a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods. Industrial activity. operate on their own. and sugarcane crushing. behind India. and the fabrication of consumer goods. vehicles from kits. Kenya has an oil refinery that processes imported crude petroleum into petroleum products.g. The small-scale sector.
Petroleum accounts for 20 to 25 percent of the national import bill. A petroleum-fired plant on the coast.ENERGY The largest share of Kenya's electricity supply comes from hydroelectric stations at dams along the upper Tana River. when drought reduces water flow. east Africa's largest economy. Kenya currently imports all crude petroleum requirements. combined with the fact that the rocks that form the East African Rift System are about the same age. Kenya's installed capacity stood at 1. in recent weeks. well-placed sources in Uganda's oil industry have suggested that the country is on the verge on making an announcement that could cement East Africa's position as major oil region on the continent. Kenya aims to build a nuclear power plant by 2017. handles transmission and distribution. The stateowned Kenya Electricity Generating Company (KenGen). despite several decades of intermittent exploration. has no strategic reserves and relies solely on oil marketers' 21-day oil reserves required under industry regulations. established in 1997 under the name of Kenya Power Company. Although Kenya is yet to give a formal indication of where its exploration program. is headed. Optimism surrounding the Kenyan program is informed by recent oil discoveries in Uganda that. To become energy sufficient. 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 . Kenya. suggests a high potential for oil in Kenya. as well as the Turkwel Gorge Dam in the west. and electricity imported from Uganda make up the rest of the supply. which now involves half a dozen companies. Hydrocarbon reserves have yet to be discovered on Kenya's territory. handles the generation of electricity. Shortfalls of electricity occur periodically. geothermal facilities at Olkaria (near Nairobi).142 megawatts between 2001 and 2003. while the Kenya Power and Lighting Company (KPLC).
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. said they had no reason to doubt that there was oil in Kenya. with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects. Before its exit mid this year. China National Offshore Oil Corporation (CNOOC) had worked with Africa Oil and Lion Energy Corp to drill an exploratory well in block 9 in northern Kenya. It also had a license for block L2. an inland area in the Lamu basin.overlooked region. .
” Exploration companies are increasing spending in Kenya as neighboring Uganda. No oil has been discovered yet.” Dragan Trajkov.” Heya said.based explorer Afren Plc. “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. Spending on exploration and drilling is estimated at $126 million. 14. and other companies may follow as more plans are approved. “The more wells that are drilled.OIL EXPLORATION Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya.000 in north and central Africa. Petroleum Commissioner Martin Heya said. the faster a discovery will be made. CNOOC. The deal allowed for China's state-controlled offshore oil and gas company. while U. (AFR) “Big companies like Tullow coming into the country automatically creates more interest.-based Apache Corp. Only 32 exploratory wells have been drilled in Kenya. and there has been no formal estimate of the possible reserves.500 in the west of the continent and 19.S. (APA) may drill offshore next year. prepares to become a crude producer next year when Tullow expects to start pumping from the Lake Albert Basin.” .mailed response to questions today. the Kenyan capital. Heya said in an interview in Nairobi. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy. he said.5 billion barrels of oil reserves.western Kenya this year and early 2012. the London-based explorer with the most licenses in Africa. 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. in London. an oil and gas analyst at Renaissance Capital Ltd. plans to sink two test wells in north. with an estimated 2. Tullow Oil Plc (TLW). said an e. That compares with 480 in East Africa. as it provides credibility to potentially finding more discoveries.K. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest. to prospect for oil in Kenya. according to data from U.
In recent years. . including mortgage companies. In 2004 about 15 percent of the labor force was officially classified as unemployed. while its estimated expenditures totaled US$5. Most of the many smaller banks are family-owned and -operated.448 billion. several non-bank financial institutions. and the other two are majority foreign-owned (Barclays Bank and Standard Chartered). such as Nairobi.377 billion. are partially government-owned. the system consisted of 43 commercial banks (down from 48 in 2001). Other estimates place Kenya’s unemployment much higher. The number employed outside small-scale agriculture and pastoralism was about 6 million.FINANCIAL SERVICES Kenya is East and Central Africa's hub for financial services.5 percent in 2004⎯had improved to –2. almost 75 percent in agriculture. Government budget balance as a percentage of gross domestic product is a low –5. as Kenya becomes increasingly urbanized. 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. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK). even up to 40 percent. and several score foreign-exchange bureaus. four savings and loan associations.1 percent in 2006. The Nairobi Stock Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. As of late July 2004. GOVERNMENT BUDGET In 2006 Kenya’s revenues totaled US$4. Two of the four largest banks.
K.VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development. Lee the former Prime Minister of Singapore. . and Mr. 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.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy. Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3. social scientists. government officials and even international personalities like Baroness Chalker from the U. It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007.
and Tanzania. The share of funding provided by the United Kingdom has fallen significantly. cement. some from China and others from the high developed countries. and sisal. and India. 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. a nonaligned country. Kenya’s chief exports are horticultural products and tea. 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. about 10 times the value of Kenya’s third most valuable export. In 2005 the combined value of these commodities was US$1. some from Russia. The aim of the EAC is to create a common market of the three states modeled on the European Union. Tanzania. Africa is Kenya's largest export market. Kenya’s apparel industry is struggling to hold its ground against Asian competition and runs a trade deficit with the United States. 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. Japan. and transportation equipment. manufactured goods. machinery. pyrethrum. The major destinations for exports are the United Kingdom (UK). chemicals. The leading imports are crude petroleum. sold to near neighbors. Major suppliers are the UK. while that of multilateral agencies. United Arab Emirates. . fish.150 million. and the Netherlands. a partnership of Kenya. Uganda. coffee. Kenya’s other significant exports are petroleum products. The most active investors currently are the Chinese. particularly the World Bank and the European Development Fund. Kenya is active within regional trade blocs such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). has increased. Despite AGOA. followed by the European Union. Uganda. has seen substantial foreign investment and significant amounts of development aid. 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.
and Beiersdorf. In 2006 Kenya had a current account deficit of US$1.2 billion.7 billion. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. the German chemical manufacturer and producer of Nivea skincare products. and capital. In the 1970s. In 2005 Kenya’s income from exports was about US$3. when the current account had a deficit of US$495 million. Foreign investors have been guaranteed ownership and the right to remit dividends. Notwithstanding some restrictions. The payment for imports was about US$5. yielding a trade deficit of about US$2. Also present are Bata. However. Kenyan policies on foreign investment generally have been favorable since independence.Kenya typically has a substantial trade deficit. between 60 and 70 percent of industry is still owned from abroad. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. This figure was a significant increase over 2005.7 billion.5 billion. with occasional tightening of restrictions to promote the Africanization of enterprises.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. royalties. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. food manufacturer Cadbury and Toyota Tsusho Corporation. . In 2006 the current account balance as a percentage of gross domestic product was –4. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. Other multinationals operating in Kenya includes British American Tobacco (BAT). This denied Kenyans the opportunity to progress economically . The debt is forecast to be a manageable 30 percent of gross domestic product in 2007.5 billion. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise.2. In 2006 Kenya’s external debt totaled US$6. the global shoe company headquartered in Canada. Important multinationals active in Kenya Barclays Bank.
3 Billion KES in October of 2011. South Africa. iron and steel. Tanzania. petroleum products. Netherlands. tobacco. Kenya main import partners are India.7 Billion KES in October of 2011. Saudi Arabia. Other export items include textiles. Agricultural products are central to Kenya's export industry with horticultural and tea being the most important. iron and steel products. United States and Pakistan. China. Kenya main exports partners are UK. coffee.KENYA EXPORTS Kenya exports were worth 45. KENYA IMPORTS Kenya imports were worth 115. United States and Japan. . cement. Uganda. UAE. Kenya imports mostly machinery and transportation equipment. petroleum products. motor vehicles. resins and plastics.
While agriculture recorded reduced growth. and construction sectors helped to bolster growth. all the other three countries experienced reduced growth rates compared to 2009/10. All the same. In Uganda. the GDP growth was attributed to recovery in construction and wholesale trade. .REGIONAL ECONOMIC OVERVIEW The East African Countries of Kenya. Continuing economic recovery in the global economy boosted Tanzania’s tourist and Foreign Direct Investment (FDI) inflows and the demand for its exports. Tanzania. and improved performance in telecommunications. electricity. improved performance in the manufacturing. financial services. Significantly. The country also shook off the effects of the post election violence. Uganda and Rwanda experienced modest GDP growth rates of 5. with the exception of Kenya. Tanzania and Uganda carried out their general elections during the year in contrasting environments. the two countries managed to post positive GDP growth. 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. 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.6% to 7% in 2010/11. Sectors such as communications. energy and gas. mining and quarrying subsectors.
7 6.567 5. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.3 8.2 6.0 532.5 11.822 5.104 16.7 4.6 2. COMPARISON OF E.0 43. The win effect of the high food and fuel costs have pushed up the cost of living across the region.8 7.4 6. 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.6 4.7 6.6 4.964 77.6 39.187 23.3 5.5 6.3 5.1 4.7 528.6 5.6 126 808.5 10.5 5. In both Uganda and Kenya.7 521.8 3.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 32.8 6.5 31.5 . resulting in simmering discontent.0 7.9 6.1 617.1 3.3 5.5 6.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.A MACRO-ECONOMIC INDICATORS Comparison of E.
8 35.0 37.5 13.904 21.145 800 14.8 17.2 13.0 9.241 4.3 36.2 15.8 7.300 946 29.937 3.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) 12.0 31.0 10.436 2.9 8.6 45.318 .0 11.7 12.417 11.
and motivations behind. 23 percent living on less than US$1 per day. such criticism.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. Poor governance and corruption also have had a negative impact on growth. pay some 16 bribes a month—two in every three encounters with public officials. deteriorating infrastructure. Another large drag on Kenya’s economy is the burden of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS). Kenyans. population growth that has outstripped economic growth. Kenya's economic policies have been subjected to criticism by western donors. whose policy aims include budgetary reforms and debt restraint. making it expensive to do business in Kenya. According to Transparency International. especially the vital tea sector. Despite early disillusionment of western donors with the government. Prospects significantly improved under the Kibaki government. Western donors are now adopting a less paternalistic attitude towards their relations with African nations. The agricultural sector employs nearly 75 percent of the country’s 38 million people. . and extreme disparities of wealth that have limited the opportunities of most to develop their skills and knowledge. However there is still significant improvement to be done. the economy has seen a broad-based expansion. Half of the sector’s output remains subsistence production. Kenya ranks among the world’s half-dozen most corrupt countries. There is debate as to the validity of. 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. and acceptable post-drought results in agriculture. Bribery and fraud cost Kenya as much as US$1 billion a year. prolonged drought that has necessitated power rationing. led by strong performance in tourism and telecommunications. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced.
. Kenya Economic Update.com/kenya/inflation-cpi .org/Kenya/keu) (ref. December 2010.tradingeconomics.org/Kenya. and communications in Kenya http://www. and communications. (source: Kenya Economic Update. December 2010. power.centralbank.keu) Read more: Kenya Infrastructure.com/economies/Africa/Kenya-INFRASTRUCTUREPOWER-AND-COMMUNICATIONS.ke/ www. power.worldbank.nationsencyclopedia.go. www. www. Information about Infrastructure.worldbank.html#ixzz1m90WmYO6 www.
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