Republic of Kenya

Jamhuri ya Kenya

THE CONTINENT OF AFRICA

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

coffee. Coal tea.600 Wildlife. dairy products. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. Netherlands 8. coffee. Egypt 4. cement.2% Per Capita Income (PPP)= $1. Democratic Republic of the Congo 4. n petroleum products. rice. land (5% arable). 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. UK 8.22 billio tea.03 billion (Purchasing Power Parity.8% (2005): 2006 = 6.2%.8%.1% : Estimate for 2007 = 7. horticultural products. hides and skins.Economic summary $32.7%. soda ash. US 5.1%.16 billion (2010) at Market Price. grain and sugar milling. pineapples.Titanium. sisal. fluorspar Uganda 10. $ 66. sugarcane. horticultural products. paper and light manufacturing. sisal. cement. hides. 5. skins petroleum products.3% (2010)[68] Major markets (2010) . pyrethrum. soft drinks. meat and meat products.8%. textiles. beer. pyrethrum. vehicle assembly. Tanzania 9.8%. corn. wheat.

Japan 4.4%. resins and plastics Major suppl China 13.Imports $11.7% (2010) iers .6%. iron and steel. Saudi Arabia 6. India 13. motor vehicles.8%.7%. UAE 9. n petroleum products.2 billio machinery and transportation equipment. South Africa 8.4%.

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

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

Western areas of Coast Province are mostly Christian.000 people.9 million to 40 million over the last century. Kenya's capital. one of the world's largest slums. Sizeable minorities of other faiths do exist (Muslim 11. In addition.000 and 1 million locals. In addition.000 RELIGION The vast majority of Kenyans are Christian (83%).7%). is home to Kibera.000). comprising 50 percent of the total population there. where they constitute the majority religious group. due to rapid population growth from 2. Sixty percent of the Muslim population lives in Coast Province. indigenous beliefs 1.5% as Roman Catholic. The upper part of Eastern Province is home to 10 percent of the country's Muslims. Nairobi. with 73% of residents aged below 30 years.POPULATION Kenya has a young population. 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. The shanty town is believed to house between 170. who have played a key role in the local economy. there is a large Hindu population in Kenya (around 50. Semi-urban .7% regarding themselves as Protestant and 23. with 47. There is also a small group of Baha'is.2%. 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 UNHCR base in Dadaab in the north also currently houses around 500.

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

searching for food and water supplies.800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya.country. in a constant clockwise fashion. Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration. The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part. 11.5 million of these ungulates migrate a distance of 1. .

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 coastal side of the country has a hot and humid climate.CLIMATE As Kenya has a diverse geography. while the nights are cooler and comfortable.40 Celsius. the regions in this area are of semi-desert and arid character. Most of the rains occur between April and July. The long rainy season occurs from April to July.30 Celsius to a minimum of 22. The early hours of the morning are also cool and pleasant. Apart from the coastal areas. the capital of the country has a temperature of 25. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. while the shorter one occurs from October to December. February and March are the hottest months of the country while July and August are the cooler months. The period ranging from June to September represent the migration period of the wildlife found in the country.50 Celsius. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. Kenya basically enjoys a tropical climate. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. Rainfall is high in the coastal regions of the country. Rainfall is more on the eastern coast of the country. its climate and weather conditions are also varied. Because of this reason. During the daytime the weather is hot. Nairobi.20 Celsius maximum and 13. . The temperature in the coastal town of Mombasa ranges from a maximum of 30. Generally speaking. the country has a dry climate.60 Celsius minimum. Summers are extremely hot over here and one is expected to wear light summer clothes. Kenya receives a lot of sunshine all around the year. while Eldoret has a maximum temperature of 23.60 Celsius and a minimum temperature of 9. It is one of the most spectacular events of the country. The climate is also humid in the Lake Victoria basin.

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

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

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

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

entertainment and many more. Films are a major source of entertainment in the country.level. Many internationally renowned films have been made in Kenya. 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. sports. The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal. The Kenyan newspapers cover topics related to politics. 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.

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

Kencell.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. 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. Further adding to the problem. Kenya experienced its worst drought in 40 years. 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. a postal services corporation. in comparison.23 billion kWh. a joint venture between Vivendi France and Sameer of Kenya. The United States.9 telephone lines per 1. a telecommunication corporation. boasted 640 phone lines per 1. As of 1998. Consequently.000 main telephone lines in use.5 MW from a diesel plant in Nairobi.74 percent of the power supply comes from hydroelectricity. there were 290. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). power outages and blackouts have become increasingly common as a result of chronic drought. In 1999-2000. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. Only 8 percent of the Kenyan population is connected to the national grid. or approximately 9. total electricity production in Kenya equaled 4.000 people. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. and Postal Corporation of Kenya. hydro equipment tends to be outdated and poorly maintained. In 1998. Safaricom. Since 82. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. the government is eager to further develop both thermal and geothermal sources of power. .000 people in 1996.

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

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

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

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

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

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

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

Without ICT. telecommunications.0 percent if no shocks occur. ICT innovations. EAC integration. Kenya has seen the return of higher growth projected at 4.6 . The country’s real GDP growth picked up to 2.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. Adjusted in purchasing power parity (PPP) terms. transport and communications. 15.39 billion.6 percent.1 2010/11 (%) 24. 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 2004-2007.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). trade. transport. Public sector investments in infrastructure will help to stimulate this growth. However. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. ICT has been the main driver of Kenya's economic growth over the last decade. Real GDP is expected to continue to improve. Five factors are creating a positive momentum: the new constitution. Services. per capita GDP in 2006 was about US$1.5 CHANGE (%) 46.In 2006 Kenya’s GDP was about US$17.0 percent.7 percent. 13.9 percent.8 percent. 6. government services. Kenya's economy grew at an average of 3. and other. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence.0 percent. and hotels. and may now be at a tipping point for robust growth. Economic growth in 2011-12 could range between 5. according to 2004 estimates. Per capita GDP averages somewhat more than US$450 annually. strong macroeconomic management. and recent investments in infrastructure.3 and 6. 14. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. manufacturing. Since 2000. the driver of previous years' growth. have moderated while agriculture and industry are rebounding after two weak years. GDP composition by sector. and construction and a recovery in agriculture. growth in 2010 would have been a lackluster 2.8 percent—similar to the population growth rate—and income per capita would have stagnated. 24. growing on average by 20 percent annually. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. and propelling the combined transport and communications sector into the economy's second largest (after agriculture).9 percent.200.7 percent. 25. compared with a sluggish 1. was as follows: agriculture. restaurants. largely because of expansions in tourism.

4 1.1 -12.9 15.9 28.8 2.2 -0.0 3.5 -14.9 .9 14.0 13.9 -15.9 7.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.7 15.1 14.

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

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

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. About one-half of total agricultural output is non-marketed subsistence production. The principal cash crops are tea. including forestry and fishing. and Sri Lanka. China. accounting for just 5 percent of export receipts in 2005. The small-scale sector. Kenya is Africa's leading tea producer. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). horticultural produce. compared with 80 percent in 1980. All coffee is marketed . as well as for 18 percent of wage employment and 50 percent of revenue from exports. is controlled by the parastatal Kenya Tea Development Authority. after the service sector. Black tea is Kenya's leading agricultural foreign exchange earner. operate on their own. Production in 1999 reached 220. accounted for about 24 percent of GDP. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. In 2005 agriculture. Similar to the tea sector. Tea exports were valued at $404.000 tons. with more than 260. and only 7 or 8 percent can be classified as first-class land. Production in 2001/02 amounted to 52.1 million in 2001. The tea industry is divided between small farms and large estates. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. after tourism and tea. behind India. In 2001.8 million. or nearly 18% of total exports. Coffee is Kenya's third leading foreign exchange earner. coffee is produced on many small farms and a few large estates. The estates. and coffee. consisting of 60–75 private companies. Coffee has declined in importance with depressed world prices. In 2006 almost 75 percent of working Kenyans made their living on the land. and was fourth in the world. coffee earnings totaled $91.140 tons.000 farmers.

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

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

. Since AGOA took effect in 2000. Kenya's inclusion among the beneficiaries of the U.000 farmers. The tea industry is divided between small farms and large estates. and sugarcane crushing. or nearly 18% of total exports. with more than 260. a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods. Kenya has an oil refinery that processes imported crude petroleum into petroleum products.g.S. Industrial activity. is dominated by food-processing industries such as grain milling. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years.1 million in 2001. There is a vibrant and fast growing cement production industry. The estates. manufacturing still accounts for only 14 percent of gross domestic product (GDP). Kenya's clothing sales to the United States increased from US$44 million to US$270 million. In addition. Kenya is Africa's leading tea producer. including the removal of duty on capital equipment and other raw materials. operate on their own. China. behind India. e. Tea exports were valued at $404. Black tea is Kenya's leading agricultural foreign exchange earner. is controlled by the parastatal Kenya Tea Development Authority. Nairobi. motor-vehicle parts. Mombasa. beer production. consisting of 60–75 private companies. and was fourth in the world. and farm implements. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures. The small-scale sector. mainly for the domestic market. . concentrated around the three largest urban centers. and Sri Lanka. and the fabrication of consumer goods.INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. vehicles from kits. and Kisumu.

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

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

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

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

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

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

In the 1970s. This figure was a significant increase over 2005. the German chemical manufacturer and producer of Nivea skincare products. royalties. Also present are Bata. The payment for imports was about US$5. However.5 billion.7 billion. when the current account had a deficit of US$495 million. In 2006 Kenya had a current account deficit of US$1. This denied Kenyans the opportunity to progress economically . Foreign investors have been guaranteed ownership and the right to remit dividends. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. 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. with occasional tightening of restrictions to promote the Africanization of enterprises. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. In 2006 Kenya’s external debt totaled US$6.7 billion.5 billion. . Notwithstanding some restrictions. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. and Beiersdorf. the global shoe company headquartered in Canada.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. and capital. food manufacturer Cadbury and Toyota Tsusho Corporation. Other multinationals operating in Kenya includes British American Tobacco (BAT).Kenya typically has a substantial trade deficit. In 2005 Kenya’s income from exports was about US$3.2 billion. yielding a trade deficit of about US$2. Kenyan policies on foreign investment generally have been favorable since independence. Important multinationals active in Kenya Barclays Bank.2. between 60 and 70 percent of industry is still owned from abroad. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather.

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

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

resulting in simmering discontent.6 39.8 6.567 5. In both Uganda and Kenya. The win effect of the high food and fuel costs have pushed up the cost of living across the region.0 43.9 6.5 6.6 4.3 5.7 528.3 5.0 7. 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.4 6.0 532.104 16.1 617.6 2.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.8 3.6 5.6 4.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 32.187 23.3 5. COMPARISON OF E.7 6.5 .7 4.5 10.5 5.7 6.5 6.822 5.964 77.7 521.A MACRO-ECONOMIC INDICATORS Comparison of E.5 31.5 11.1 4. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.8 7.6 126 808. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.3 8.2 6.1 3.

145 800 14.318 .300 946 29.436 2.2 13.8 17.9 8.417 11.241 4.3 36.0 31.7 12.904 21.8 35.5 13.0 37.0 10.0 9.0 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) 12.8 7.2 15.6 45.937 3.

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

worldbank. www. www.go.html#ixzz1m90WmYO6 www.centralbank. power.tradingeconomics.com/economies/Africa/Kenya-INFRASTRUCTUREPOWER-AND-COMMUNICATIONS. (source: Kenya Economic Update. Kenya Economic Update.nationsencyclopedia.. and communications in Kenya http://www.org/Kenya.com/kenya/inflation-cpi .ke/ www. December 2010. December 2010. Information about Infrastructure.keu) Read more: Kenya Infrastructure.worldbank.org/Kenya/keu) (ref. power. and communications.

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