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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
Agriculture is a major employer and the country traditionally exports tea and coffee. European and Arab presence in Mombasa dates to the Early Modern period. known from 1920 as the Kenya Colony. . The British Empire established the Protectorate in 1895. and contributes 62 percent of GDP. Nairobi. Kenya is a member of the East African Community. and more recently fresh flowers to Europe. is a regional commercial hub. The service industry is a major economic driver. but European exploration of the interior began only in the 19th century. The independent Republic of Kenya was founded in December 1963. The economy of Kenya is the largest by GDP in East and Central Africa. mostly the telecommunications sector. The capital.state comprise the crossroads of the Niger-Congo. and Asiatic linguistic areas of Africa. Nilo-Saharan. making Kenya a truly multi-cultural state.
2% Per Capita Income (PPP)= $1.16 billion (2010) at Market Price. Tanzania 9. UK 8. $ 66. Coal tea.1% : Estimate for 2007 = 7. meat and meat products. pineapples. soft drinks. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. coffee. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. rice.Titanium.Economic summary $32. sisal. Democratic Republic of the Congo 4. paper and light manufacturing. coffee. fluorspar Uganda 10. horticultural products.2%. sugarcane. pyrethrum. hides.8% (2005): 2006 = 6. dairy products. vehicle assembly.8%.22 billio tea. Egypt 4.03 billion (Purchasing Power Parity. US 5. beer. textiles. pyrethrum. corn. hides and skins. grain and sugar milling. sisal.600 Wildlife. skins petroleum products.3% (2010) Major markets (2010) . cement. soda ash. wheat. n petroleum products. 5.7%. cement. land (5% arable). Netherlands 8.1%. horticultural products.8%.8%.
motor vehicles.8%. Saudi Arabia 6. India 13. n petroleum products.Imports $11. Japan 4. resins and plastics Major suppl China 13.4%. UAE 9.7%. iron and steel.7% (2010) iers .2 billio machinery and transportation equipment.4%.6%. South Africa 8.
On the western part of the country one can find Lake Victoria. that the country stretches from the sea level in the east to the snow capped mountain in the north. the geography of Kenya also includes its numerous forests also. The rivers Tana and Athi flows in the southeastern part of the country while Nzoia. The biggest feature of Kenya is the Great Rift Valley located in the central and western part of the country. The country is bordered by Sudan and Ethiopia in the north and Uganda to the west. Apart from this. which is 5. One can find a large number of swamps in the Loraine Plain. which is extremely fertile. Yala and Gori. In general one can say. Somalia lies to the east of the country while Indian Ocean borders the country in the southeastern part.367 km2 (224. situated in the northeastern part of the country. It has a coral reef and is supported by a dry coastal plain that is covered by thorny bushes and savanna. One can find a large number of lakes and rivers in this country. The Kenyan coast is a low-lying area. the other mountain ranges that one can find over here include Mount Elgon and Mount Kilimanjaro.081 sq mi). found in the northeastern part of the country. There are a large number of rivers also in Kenya. In general. Apart from these. Kenya is located on the eastern part of the African continent. . The highest point of the country lies in Mount Kenya.199 meters high. flows across the country before draining into Lake Victoria. At 580. and longitudes 34° and 42°E. Some of the major forest areas of the country include the Kakamega Forest and the Mau Forest. The valley basically dissects the Kenyan highlands into east and west. It lies between latitudes 5°N and 5°S. the regions of the country are mostly arid and of semi desert nature. It is one of the major agricultural regions of the country. The terrain of the country gradually changes from the low-lying coastal plains to the Kenyan highlands. To the east one can find a large number of rainforests. Kenya is the world's forty-seventh largest country. The highlands have a cool climate and are known for their fertile soil. Other major lakes of the country include Lake Naivasha and Lake Nakuru. which forms a major part of the geography of Kenya.GEOGRAPHICAL LOCATION The Geography of Kenya gives one a complete idea about the location of the country and its physical features. On the northern part of the country one can find Lake Turkana. To the southwest of the country lies Tanzania while to the west lies Lake Victoria and Uganda. Another major river of the county is the Ewaso Ngiro.
. along with the new constitution. CocaCola.NAIROBI Nairobi is the capital and largest city of Kenya. one of Africa's largest. Founded in 1899 as a simple rail depot on the railway linking Mombasa to Uganda. These include Goodyear. the United Nations Office in Nairobi (UNON). the town quickly grew to become the capital of British East Africa in 1907 and eventually the capital of a free Kenyan republic in 1963. Nairobi Province was not divided into "districts" until 2007. During Kenya's colonial period. tea and sisal industry. it is popularly known as the "Green City in the Sun" and is surrounded by several expanding villa suburbs. Several foreign companies have factories based in and around the city. Nairobi is currently the 12th largest city in Africa. and Coca Cola. The city and its surrounding area also forms the Nairobi County. which translates to "the place of cool waters". The county is entirely urban. General Electric. Nairobi is now one of the most prominent cities in Africa politically and financially. In 2010. Nairobi is an established hub for business and culture. It is ranked 4th in terms of trading volume and capable of making 10 million trades a day. the city became a centre for the colony's coffee. Nairobi was renamed a County. Airtel and Cisco Systems relocated their African headquarters to the city. including the United Nations Environment Programme (UNEP) and the main coordinating and headquarters for the UN in Africa & Middle East. Nairobi is the regional headquarters of several international companies and organizations. The NSE was officially recognized as an overseas stock exchange by the London Stock Exchange in 1953. The United Nations Office at Nairobi hosts UNEP and UN-Habitat headquarters. Home to thousands of Kenyan businesses and over 100 major international companies and organisations. However. Nairobi is also the capital of the Nairobi Province and of the Nairobi District. The Nairobi province differs in several ways from other Kenyan regions. Google. The Nairobi Stock Exchange (NSE) is one of the largest in Africa and the second oldest exchange on the continent. when three districts were created. Nairobi is home to the Nairobi Stock Exchange (NSE). Nairobi is the most populous city in East Africa. with a current estimated population of about 3 million. Nairobi City Council. In 2007. Young & Rubicam. General Motors. It has only one local authority. The City of Nairobi enjoys the status of a full administrative County/Region. including the population of its suburbs. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi.THE CAPITAL CITY . Toyota Motors.
indigenous beliefs 1. with 73% of residents aged below 30 years.000 and 1 million locals. The UNHCR base in Dadaab in the north also currently houses around 500. In addition.000 people. Sixty percent of the Muslim population lives in Coast Province. Major cities in Kenya include: City Nairobi Mombasa Nakuru Kisumu Meru Nyeri Machakos Eldoret Population 3 375 000 966 000 337 200 273 400 273 000 179 500 140 900 100.000). Kenya's capital.9 million to 40 million over the last century.2%. In addition. Western areas of Coast Province are mostly Christian.POPULATION Kenya has a young population.5% as Roman Catholic. Sizeable minorities of other faiths do exist (Muslim 11. Nairobi. with 47.7% regarding themselves as Protestant and 23. The shanty town is believed to house between 170. one of the world's largest slums. 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. is home to Kibera. who have played a key role in the local economy.7%). there is a large Hindu population in Kenya (around 50. The upper part of Eastern Province is home to 10 percent of the country's Muslims. There is also a small group of Baha'is. where they constitute the majority religious group. comprising 50 percent of the total population there.000 RELIGION The vast majority of Kenyans are Christian (83%). Semi-urban . due to rapid population growth from 2.
buffalo. including the Masai Mara. Up to 250. where Blue Wildebeest and other bovid participate in a large scale annual migration.and rural populations are less multilingual with many in remote villages speaking only their mother tongue. leopard. reptiles and birds can be found in the national parks and game reserves in the . The "Big Five" animals of Africa can be found in Kenya and in the Masai Mara in particular: the lion. Ethnic Group’s Kikuyu Luhya Luo Kalenjin Kamba Kisii Meru Other African Non-African (Asian.000 blue wildebeest perish each year in the long and arduous movement to find forage in the dry season. European and Arab) Percentage 22% 14% 13% 12% 11% 6% 6% 15% 1% Kikuyu woman in traditional attire WILDLIFE Ke nya has considerable land area devoted to wildlife habitats. A significant population of other wild animals. rhinoceros and elephant.
Kenya is the setting for one of the Natural Wonders of the World – the great wildebeest migration.country. The annual animal migration – especially migration of the wildebeest – occurs between June and September with millions of animals taking part. . 11. searching for food and water supplies.800 miles from the Serengeti in neighboring Tanzania to the Masai Mara in Kenya.5 million of these ungulates migrate a distance of 1. in a constant clockwise fashion.
40 Celsius. The climate is also humid in the Lake Victoria basin. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. It is one of the most spectacular events of the country.50 Celsius.30 Celsius to a minimum of 22. Nairobi. the country has a dry climate. its climate and weather conditions are also varied.20 Celsius maximum and 13. During the daytime the weather is hot. The temperature in the coastal town of Mombasa ranges from a maximum of 30. The period ranging from June to September represent the migration period of the wildlife found in the country. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. the capital of the country has a temperature of 25. Apart from the coastal areas. The long rainy season occurs from April to July. The coastal side of the country has a hot and humid climate. Generally speaking. February and March are the hottest months of the country while July and August are the cooler months. 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. Kenya receives a lot of sunshine all around the year. .60 Celsius minimum. The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. The early hours of the morning are also cool and pleasant. Most of the rains occur between April and July. while the shorter one occurs from October to December. while Eldoret has a maximum temperature of 23. Rainfall is more on the eastern coast of the country. Kenya basically enjoys a tropical climate.60 Celsius and a minimum temperature of 9. Rainfall is high in the coastal regions of the country. the regions in this area are of semi-desert and arid character. Because of this reason. Summers are extremely hot over here and one is expected to wear light summer clothes.CLIMATE As Kenya has a diverse geography. while the nights are cooler and comfortable.
In January 2003. inadequate health workers. weak management and poor leadership in most public health facilities are largely to blame. For those who proceed to secondary level. 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 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). with the government footing all tuition fees. . which determines those proceeding to the universities.49 children per woman in 2012. At the end of primary education. the Government of Kenya announced the introduction of free primary education. There are a large number of HIV-positive people in Kenya. The total fertility rate in Kenya is estimated to be 4. mainly in urban areas. diarrhea and malnutrition are the major child killers and responsible for much morbidity. More die before their 5th birthday. Other than the public schools. pupils sit the Kenya Certificate of Primary Education (KCPE). other professional training or employment. there are a number of international schools catering for various overseas educational systems. secondary and college. Kenya's education system consists of early childhood education. partly because of female genital mutilation. The Joint Admission Board (JAB) is responsible for selecting students joining the public universities. Private schooling also exists in Kenya. there are many private schools in the country. Kenya still faces many challenges. EDUCATION The country's literacy level stands at 85% of the whole population. Secondary and tertiary education enrollment has not increased proportionally because payment is still required for attendance. Weak policies. HIV/AIDS.HEALTH Despite major achievements in the health sector. Maternal mortality is high. pneumonia. Similarly. Preventable diseases such as malaria. Life expectancy is estimated at between 47 and 55 years. As a result. primary school enrollment increased by about 70%. Too many women and children still die at birth or within the first year of life. primary. In 2007 the government issued a statement declaring that from 2008.
The Maasai culture. there are a large number of other tribes like the Kikuyu. Apart from this. art. and Luo. dance and music. Nairobi. traditions. However. the culture of the country has a strong European and Arabian influence. Kamba. . inspite of such strong foreign influence. The Swahili Culture is the oldest culture of the country. Culture of Kenya is a mix of both modern and traditional cultures. Luhya. is the seat of the country's culture. Gusii. which adds to the unique culture of the country and its people. The Bantu language speakers. were responsible for creating and spreading this culture. music and dance. The main culture of the country is the Swahili Culture and the Maasai culture. which is the most well known culture of the country.CULTURE Culture in Kenya is a mix of diverse cultures and traditions. society. Where on one hand the different tribes of the country have maintained their unique style of clothing. a semi-nomadic tribe known for their clothes. who settled on the coastal part of the country. jewellery and distinct custom. who have their own distinct culture. was spread by the Maasai. Kenya culture is extremely unique and has an identity of its own. Culture of Kenyais amply reflected through its people. on the other hand they have also adopted the cultural patterns of modern society. the capital of the country. their customs. Owing to its colonial history.
Kenya is home to the world famous Safari Rally. five gold. Benga music. five silver and four bronze. It is extremely colorful and are heavily embroidered. rugby.000 m steeplechase. Kenya has consistently produced Olympic and Commonwealth Games champions in various distance events. Kenya has been a dominant force in women's volleyball within Africa. This has led to a suspension by FIFA which was lifted in March.The clothing is unique. nose rings.500 m. Cricket is another popular and the most successful team sport. They participated in the ICC Cricket World Cup 2011. making it Africa's most successful nation in the 2008 Olympics. Kenya has a diverse assortment of popular music forms. cricket and boxing are the most popular sports played in the country.000 m. Kenya has competed in the Cricket World Cup since 1996. which include afro-fusion music. Kenyan hip-hop and different types of folk music and tribal music. Guitars and drums are the popular instruments used in Kenyan music. it is home to different varieties of music. Kenya was a regional power in soccer but its dominance has been eroded by wrangles within the Kenya Football Federation. armlets. In the motor rallying arena. earrings. in addition to multiple types of folk music based on the variety over 40 regional languages. But the country is known chiefly for its dominance in Middledistance and long-distance athletics. The people also love to wear heavy jewelry. The clothes are usually red and black in color to show their love for mother Earth. 3. Jewelry is made from colorful beads and other articled and consists of headgears. 10. Kenyan people are sports lovers. commonly acknowledged as one of the toughest rallies . Kenya won several medals during the Beijing Olympics. 5. 2007. necklaces. Infact. with both the clubs and the national team winning various continental championships in the past decade. Road running and athletics are also popular.000 m and the marathon. especially in 800 m. 1. anklets and others. Football. The country has also made valuable contributions in the field of film and theatre. A large number of film festivals and theatre festivals are held in this country.
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. Culture of Kenya is a conglomeration of diverse cultures belonging to the different tribal groups and the people of the country.in the world. films and newspapers. television. discos. Many people gather in these places to get a flavor of live band music. Apart from the various nightclubs and casinos. There are also tribal and traditional dances and songs that are hosted and organized in various halls of the country. The nightclubs and hotels of Kenya generally organize live music bands during evening and night. Many concerts are also held in Kenya. national and local . which provide complete entertainment to both the local people and the tourists. there are also other entertainment sources in Kenya. There are innumerable choices to be made regarding the various sources of entertainment in Kenya. Nightlife in Kenya is also highly active with various nightlife entertainment facilities for the tourists. There are many nightclubs. especially during the festive season in the country. Kenya Entertainment in not only restricted to the capital city of the country. These include various media sources like radio. but is also spread to the various other regions in Kenya. The disc jockeys churn out lively and catchy music for the visitors. Kenya is a country that offers numerous attractions to the tourists. ENTERTAINMENT Kenya entertainment includes several activities that can make the stay at the place memorable. The clubs and hotels are busier during the weekends. The Kenya Broadcasting Corporation provides various radio networks at the regional. bars and pubs in Nairobi as well as in Mombasa.
level. Some of the renowned newspapers that are published and circulated in Kenya are as follows: • • • • Kenya Times Standard Kenya East African Standard Kenya Daily Nation Kenya Last but not the least is Kenya films. . The 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. Many internationally renowned films have been made in Kenya. The Kenyan newspapers cover topics related to politics. sports. entertainment and many more. KBC English Radio Service and KBC Kiswahili Radio Service are the two radio stations that operate under the National Radio Network in Kenya. 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. regional news.
is the country's main seaport and serves most East and Central African nations. for example. in addition to rehabilitating 20.1 million tons. which will span approximately 3 years. which has an annual average freight throughput of about 8. There are 3 international airports. Department of State Country Commercial Guide 2000 . In collaboration with various donors.868 kilometers are paved (1996 est. boasting 21 berths. only 8. the largest is Nairobi's Jomo Kenyatta International Airport. the state-owned . In 1999. As a result of heavy operational losses. which serves more than 30 airlines providing scheduled services to cities around the world. 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. Wilson airport in Nairobi. including 21 that are paved. designed to create links between all major and minor roads. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. warehousing. Kenya has 230 airports. The project. The deepwater port.000 kilometers of roads in 6 urban centers. In the same year. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country.000 miles connecting most parts of the country.).S. Kenya's port of Mombasa. the current state of most roads is deplorable. handles light aircraft and general aviation. however. is expected to cost US$245 million. The international and domestic air transport infrastructure is relatively well-developed in Kenya. the Kenyan government recently launched the ambitious 'Roads 2000' project. Accordingly. including cold storage. In total. According to the U. the KR would lease locomotives to private-sector operators. and container terminal. offers specialized facilities. Of the total 63. the busiest airport in Africa.800 kilometers of highway. which runs from Mombasa through Nairobi to the Ugandan border.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. The road network accounts for over 80 percent of Kenya's total passenger and freight transport. there has been a steady deterioration in the KR's services.
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.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. hydro equipment tends to be outdated and poorly maintained. 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. and Postal Corporation of Kenya. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary. In 1998. power outages and blackouts have become increasingly common as a result of chronic drought. boasted 640 phone lines per 1. a telecommunication corporation. Kenya experienced its worst drought in 40 years. or approximately 9.74 percent of the power supply comes from hydroelectricity. a postal services corporation.000 people. there were 290. Safaricom. in comparison. The United States. The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange. Consequently. Further adding to the problem. 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. the government is eager to further develop both thermal and geothermal sources of power.000 people in 1996. Only 8 percent of the Kenyan population is connected to the national grid.23 billion kWh.9 telephone lines per 1. In 1999-2000. As of 1998. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC).000 main telephone lines in use. Kencell. Since 82. total electricity production in Kenya equaled 4. .5 MW from a diesel plant in Nairobi.
which had ruled the country since independence to the National Rainbow Coalition (NARC). Nyanza 8. Kibaki Kenya has maintained remarkable stability despite changes in its political system and crises in neighboring countries. Coast 4. improving education. Eastern 5. The Judiciary is independent of the executive and President Mwai the legislature. the new ruling coalition promised to focus its efforts on generating economic growth. Central 3. and of a multi-party system. North Eastern 7. Under the presidency of Mwai Kibaki. Kenyans held democratic and open elections. whereby the President is both the head of state and head of government. Central 2. combating corruption. 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. Executive power is exercised by the government. Nairobi 6. Rift Valley . 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. In December 2002. and rewriting its constitution. a coalition of political parties. most of which were judged free and fair by international observers.
Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president).9. 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 . The City of Nairobi enjoys the status of a full administrative province. The divisions are then subdivided into 2. Districts are then subdivided into 497 divisions .427 locations and then 6. The provinces were subdivided into districts . . The government supervises administration of districts and provinces.612 sub locations.Under the old constitution.
The EAC's objectives include harmonizing tariffs and customs regimes. the economy has seen much expansion. Tanzania. boosted by rapid expansion in telecommunication and financial activity over the last decade. and now contributes 62 percent of GDP. higher education and telecommunications. and Uganda re-established the East African Community (EAC). . largely because of expansions in tourism.ECONOMY Despite western donors' early disappointment with the government. East and central Africa's biggest economy has posted tremendous growth in the service sector. has led to their revival due to massive private investment. and improving regional infrastructures. free movement of people. Industry and manufacturing is the smallest sector that accounts for 16 percent of the GDP. Unfortunately. following the chaos which engulfed the country. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company.9% growth in 2011. economic prospects are positive with 4–5% GDP growth expected. especially the vital tea sector. kerosene and cooking oil. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry. 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 . As of May 2010. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour. and acceptable post-drought results in agriculture. transport. But this changed immediately after the disputed presidential election of December 2007. the three East African countries signed a Customs Union Agreement. The World Bank predicts growth of 4% in 2010 and a potential of 4. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. the Presidents of Kenya. In March 2004. However. which resulted in East Africa's most profitable company – Safaricom. In March 1996.an important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. seen by strong performance in tourism. construction and a recovery in agriculture. telecommunications.
the system consisted of 43 commercial banks (down from 48 in 2001). several non-bank financial institutions. four savings and loan associations. As of late July 2004. 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. and several score foreign-exchange bureaus. . The Nairobi Securities Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. including mortgage companies. Kenya is East and Central Africa's hub for financial services. Kenya ranks poorly on Transparency International's corruption perception index. The Kenya banking system is supervised by the Central Bank of Kenya (CBK).
In 1985. the portrait of Jomo Kenyatta. followed by 500 shillings in 1988 and 1000 shillings in 1994. 10 and 20 shillings. COINS The first coins were issued in 1966 in denominations of 5. the Central Bank of Kenya issued notes in denominations of 5. with the same happening to 10 and 20 shillings in 1994 and 1998. New coins with the image of Kenyatta were issued in 2005. 10.CURRENCY. 200 shillings notes were introduced. AND INFLATION The Kenyan shilling replaced the East African shilling in 1966 at par. 2 shillings coins were last minted in 1971. 50 and 100 shillings. In 1980. EXCHANGE RATE. BANKNOTES In 1966. 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). 5 shillings notes were replaced by coins in 1985. 25 and 50 cents. followed by 10 shillings in 1994 and 20 shillings in 1998. 5 shillings coins were introduced. The coins are 50 cents and 1 shilling in stainless steel and bimetallic coins of 5. Twenty-five cents coins were not minted after 1969. and 1 and 2 shillings. the first president of Kenya. originally appeared on the obverse of all of independent Kenya's coins. when the central bank introduced a new coin series that restored the portrait of Kenyatta. 10. 20. In 1986. Between 1967 and 1978. . a portrait of Daniel arap Moi replaced Kenyatta until 2005.
9 percent in December of 2011. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978. INFLATION The inflation rate in Kenya was last reported at 18. In 2003. 10. with Daniel arap Moi's portrait replacing him in 1980. 500 and 1000 shilling. The Central Bank of Kenya shifted its target to tighten liquidity.As with the coins. from about 83 shillings per US dollar to about 100 shillings per US dollar at late 2011. 200. including increasing interest rate and money market operations. But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012. EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. after Mwai Kibaki replaced Moi as president. A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50. and circulated for a time. 5. The issue of 12 December 2003 commemorates the "40 years of Independence 1963-2003". . 100. 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.
GROSS DOMESTIC PRODUCT (GDP) Kenya’s economic performance since independence .
39 billion.7 percent.200.5 CHANGE (%) 46. 25. The country’s real GDP growth picked up to 2. GDP composition by sector. Per capita GDP averages somewhat more than US$450 annually. the driver of previous years' growth. EAC integration. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. and hotels. have moderated while agriculture and industry are rebounding after two weak years. However.1 2010/11 (%) 24. Kenya has seen the return of higher growth projected at 4. Kenya's economy grew at an average of 3. transport. ICT innovations. and construction and a recovery in agriculture. Five factors are creating a positive momentum: the new constitution. 14.9 percent. growth in 2010 would have been a lackluster 2.9 percent. per capita GDP in 2006 was about US$1. transport and communications. according to 2004 estimates.In 2006 Kenya’s GDP was about US$17. and recent investments in infrastructure. restaurants. Services. Economic growth in 2011-12 could range between 5.6 percent. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. and may now be at a tipping point for robust growth.8 percent—similar to the population growth rate—and income per capita would have stagnated. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. 24.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002).8 percent. strong macroeconomic management. Without ICT. compared with a sluggish 1. Over the last three decades Kenya has experienced only two short episodes when economic growth exceeded five percent and was sustained for at least three consecutive years: 1986-88 and 2004-2007.0 percent. Since 2000.0 percent. Real GDP is expected to continue to improve. Public sector investments in infrastructure will help to stimulate this growth. trade. ICT has been the main driver of Kenya's economic growth over the last decade. 6.0 percent if no shocks occur.7 percent. largely because of expansions in tourism.3 and 6. telecommunications. 13. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence.6 .3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. growing on average by 20 percent annually. Adjusted in purchasing power parity (PPP) terms. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). 15. was as follows: agriculture. government services. manufacturing. and other.
9 -15.1 14.9 7.9 .4 1.9 28.0 13.1 -12.0 3.9 15.5 -14.7 15.2 -0.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.9 14.8 2.
Tourism in Kenya is mainly centered around two major geographical areas of the country. Kisumu. Nakuru. one can pay a visit to the beaches on the coast of the Indian Ocean. leopards. The country is home to a large number of natural reserves also. Travelers coming here for a holiday can take a look at breathtaking view of its scenery and picturesque landscapes. Eldoret and others. which includes the Times Tower. 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. giraffes. Watamu National marine Park and others. . The country with its breath taking scenery. Some of the major wildlife sanctuaries that one can pay a visit include the Amboseli National Reserve. Mombassa. Nairobi. is dominated by tourism. Blue Market. Railway Museum. which contributes about 63 percent of GDP. One can pay a visit to the Shela Beach in the city of Lamu.INDUSTRY IN KENYA TOURISM Kenya's services sector. Bedsides these. One can check out the elephants. amazing wildlife and diverse culture has been attracting tourists from all across the world every year. 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. When on a vacation to Kenya. Chyulu Hills National Park. lions and a variety of birds like falcons and others in these natural reserves. The cities are known for their history and one can pay a visit to the numerous tourist attractions found over here. which include the beaches on the southern coast and the numerous national parks. rhinoceros's. Tsavo East National Park and others. cheetahs. Kenya has over the years become a major tourist destination of the world.
Tourism has made major contributions toward the country's GDP. Large number of international travelers come to this country and embarks on adventure safaris. Tourism is a major industry of Kenya. customs. The hotel industry has also flourished because of this reason. . which helps in generating revenue for the country. It has helped in preserving the cultural traditions. A large number of hotels are regularly coming up over here to provide accommodation to the tourists coming here for a holiday. over the past few years and has thus contributed towards the economic development of the country. music and dance of the country. Kenya tourism is a rapidly growing industry and is all set to help in making valuable contributions towards the development of the country. Tourism has also helped in providing employment to a large number of people in Kenya. Tourism has inculcated environmental awareness amongst them and has also widened their outlook. Tourism generates revenue of nearly $500million per year.Kenya tourism has had a favorable impact on the culture and tradition of the country. The people of the country have also become much more aware and knowledgeable.
The principal cash crops are tea. In 2001. accounting for just 5 percent of export receipts in 2005. Coffee is Kenya's third leading foreign exchange earner. and coffee. consisting of 60–75 private companies. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. 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. with more than 260. The estates. China. About one-half of total agricultural output is non-marketed subsistence production. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). including forestry and fishing. Production in 1999 reached 220. horticultural produce. In 2005 agriculture. behind India. and Sri Lanka.140 tons.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. and was fourth in the world. Coffee has declined in importance with depressed world prices. Tea exports were valued at $404. after tourism and tea. after the service sector. accounted for about 24 percent of GDP. Similar to the tea sector.000 farmers. coffee earnings totaled $91. Black tea is Kenya's leading agricultural foreign exchange earner. compared with 80 percent in 1980. In 2006 almost 75 percent of working Kenyans made their living on the land. The tea industry is divided between small farms and large estates. The small-scale sector.8 million. or nearly 18% of total exports. operate on their own. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports. Production in 2001/02 amounted to 52.000 tons.1 million in 2001. All coffee is marketed . Kenya is Africa's leading tea producer. coffee is produced on many small farms and a few large estates. and only 7 or 8 percent can be classified as first-class land.
and lilies. 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.through the parastatal Coffee Board of Kenya. onions. in 2004 aid for 1. avocados. Production downturns periodically necessitate food aid—for example. pineapples. Kenya's Agriculture Performance in 2010: The agriculture sector has been rebounding in 2010 and is expected to grow by 5 percent. Livestock predominates in the semi-arid savanna to the north and east. snow peas. and included green beans. especially the fruits and . However. known as pyrethrin. and wheat are grown in the fertile highlands. Tea. Favorable weather conditions and specific policy interventions under the government's economic stimulus program helped turn the sector around. output contracted as coffee production was slow to recover from the prolonged drought in early 2009. Coconuts. and passion fruit. The production of major food staples such as corn is subject to sharp weather-related fluctuations. Kenya is the world's largest producer and exporter of pyrethrum.7 percent. following tea and coffee.8 million people because of one of Kenya’s intermittent droughts. mangoes. coffee. Kenyan horticulture has become prominent in recent years. cotton. statice. astromeria. when the sector contracted by a combined 6. a flower that contains a substance used in pesticides. The pyrethrum extract. cashew nuts. The performance of Kenya's main agriculture exports in 2010 was strongest for tea which recovered rapidly from 2009 weather conditions. and is now the third leading agricultural export. pyrethrum. Fresh produce accounted for about 30% of horticultural exports. cabbages. The suspension of the economic provisions of the International Coffee Agreement in July 1989 disrupted markets temporarily. sisal. Horticulture exports contracted for the third consecutive year. A combination of volume and price increases will see the sector perform even better than in 2008. corn. is derived from the flower's petals. Flowers exported include roses. and corn are grown in the lower-lying areas. This is an important development after two consecutive years of decline. which had previously been the best year for the sector. sisal. one of the most successful agricultural production regions in Africa. carnations. driving coffee prices to historical lows. sugarcane. Although coffee is benefitting from an increase in global prices. The sector continued to be affected by a muted recovery in Europe.
. output from fishing has been declining because of ecological disruption.000 cubic meters. MINING AND MINERALS Kenya has no significant mineral endowment. Kenya’s mineral production in 2005 reached more than 1 million tons. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. Kenya’s total catch reported in 2004 was 128. according to the Mining Act. Thanks largely to rising soda ash output. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya.000 metric tons. Apart from soda ash.vegetables. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. the volcanic ash crisis in April 2010 disrupted access to the key source markers in Europe FORESTRY AND FISHING Resource degradation has reduced output from forestry. accounting for less than 1 percent of gross domestic product. overfishing. The mining and quarrying sector makes a negligible contribution to the economy. In 2004 round wood removals came to 22. However. gold. Pollution. 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. and fluorspar. In addition. salt. All minerals not extracted are government property.
beer production. There is a vibrant and fast growing cement production industry. Industrial activity. with more than 260. Kenya's clothing sales to the United States increased from US$44 million to US$270 million. is controlled by the parastatal Kenya Tea Development Authority. is dominated by food-processing industries such as grain milling.S. and farm implements. Nairobi. Kenya's inclusion among the beneficiaries of the U. The estates. including the removal of duty on capital equipment and other raw materials.1 million in 2001. . a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods. vehicles from kits. The tea industry is divided between small farms and large estates. China. and Kisumu. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures. and Sri Lanka. behind India. Tea exports were valued at $404. and was fourth in the world. Since AGOA took effect in 2000. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years. Mombasa. operate on their own. motor-vehicle parts. Kenya has an oil refinery that processes imported crude petroleum into petroleum products. The small-scale sector. In addition. and sugarcane crushing. and the fabrication of consumer goods. e. or nearly 18% of total exports.. manufacturing still accounts for only 14 percent of gross domestic product (GDP).g.000 farmers.INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. consisting of 60–75 private companies. Kenya is Africa's leading tea producer. Black tea is Kenya's leading agricultural foreign exchange earner. concentrated around the three largest urban centers. mainly for the domestic market.
in recent weeks. Hydrocarbon reserves have yet to be discovered on Kenya's territory. Kenya's installed capacity stood at 1. handles the generation of electricity. which is slated for privatization. is headed. Although Kenya is yet to give a formal indication of where its exploration program. has no strategic reserves and relies solely on oil marketers' 21-day oil reserves required under industry regulations. despite several decades of intermittent exploration. Petroleum accounts for 20 to 25 percent of the national import bill. suggests a high potential for oil in Kenya. Kenya aims to build a nuclear power plant by 2017. Kenya. handles transmission and distribution. A petroleum-fired plant on the coast. Shortfalls of electricity occur periodically. geothermal facilities at Olkaria (near Nairobi). as well as the Turkwel Gorge Dam in the west. east Africa's largest economy. while the Kenya Power and Lighting Company (KPLC). when drought reduces water flow. combined with the fact that the rocks that form the East African Rift System are about the same age. Kenya currently imports all crude petroleum requirements. To become energy sufficient. Optimism surrounding the Kenyan program is informed by recent oil discoveries in Uganda that. established in 1997 under the name of Kenya Power Company.142 megawatts between 2001 and 2003. The stateowned Kenya Electricity Generating Company (KenGen). 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.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. and electricity imported from Uganda make up the rest of the supply. 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 .
. said they had no reason to doubt that there was oil in Kenya. Reacting to the current speculation about prospects for an early oil find. It also had a license for block L2. 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. Before its exit mid this year. 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. with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects.overlooked region.
S. No oil has been discovered yet. Spending on exploration and drilling is estimated at $126 million. the Kenyan capital. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy.-based Apache Corp. The deal allowed for China's state-controlled offshore oil and gas company. said an e.” Exploration companies are increasing spending in Kenya as neighboring Uganda. with an estimated 2.western Kenya this year and early 2012. 14.mailed response to questions today. and other companies may follow as more plans are approved. according to data from U. to prospect for oil in Kenya. 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. Petroleum Commissioner Martin Heya said. prepares to become a crude producer next year when Tullow expects to start pumping from the Lake Albert Basin.500 in the west of the continent and 19. in London. “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. an oil and gas analyst at Renaissance Capital Ltd.K. the faster a discovery will be made.000 in north and central Africa.” Dragan Trajkov. while U. CNOOC. (AFR) “Big companies like Tullow coming into the country automatically creates more interest. Only 32 exploratory wells have been drilled in Kenya. (APA) may drill offshore next year. the London-based explorer with the most licenses in Africa. That compares with 480 in East Africa. “The more wells that are drilled. Heya said in an interview in Nairobi.5 billion barrels of oil reserves. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest. as it provides credibility to potentially finding more discoveries.” .” Heya said. plans to sink two test wells in north. . Tullow Oil Plc (TLW).based explorer Afren Plc. and there has been no formal estimate of the possible reserves. he said.OIL EXPLORATION Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya.
are partially government-owned. Other estimates place Kenya’s unemployment much higher.1 percent in 2006. Most of the many smaller banks are family-owned and -operated. and the other two are majority foreign-owned (Barclays Bank and Standard Chartered). Kenya's labor force has shifted from the countryside to the cities. The Nairobi Stock Exchange (NSE) is ranked 4th in Africa in terms of Market capitalization. The number employed outside small-scale agriculture and pastoralism was about 6 million. as Kenya becomes increasingly urbanized. Two of the four largest banks.448 billion. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). As of late July 2004.5 percent in 2004⎯had improved to –2.377 billion. the system consisted of 43 commercial banks (down from 48 in 2001). GOVERNMENT BUDGET In 2006 Kenya’s revenues totaled US$4. such as Nairobi. four savings and loan associations. and several score foreign-exchange bureaus. . even up to 40 percent. Government budget balance as a percentage of gross domestic product is a low –5. while its estimated expenditures totaled US$5. In 2004 about 15 percent of the labor force was officially classified as unemployed. almost 75 percent in agriculture. several non-bank financial institutions. including mortgage companies. LABOR In 2006 Kenya’s labor force was estimated to include about 12 million workers. the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK).FINANCIAL SERVICES Kenya is East and Central Africa's hub for financial services. In recent years.
K.VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development. Vision 2030 will be steered by the National Economic and Social Council which is chaired by the President and brings together CEOs of top businesses. It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007. . and Mr. Lee the former Prime Minister of Singapore. social scientists. Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy. government officials and even international personalities like Baroness Chalker from the U.
sold to near neighbors. Many of Kenya's problems relating to the export of goods are believed by most economists to be caused by Kenya's export of inexpensive goods that saturate the global market but do little to substantially raise the amount of money coming into the country. has increased. The major destinations for exports are the United Kingdom (UK). and transportation equipment. while that of multilateral agencies. The share of funding provided by the United Kingdom has fallen significantly. particularly the World Bank and the European Development Fund.150 million. followed by the European Union. chemicals. some from Russia. Kenya is active within regional trade blocs such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). In 2005 the combined value of these commodities was US$1. machinery. Kenya. Uganda. and sisal. cement. fish. Kenya’s other significant exports are petroleum products. a partnership of Kenya. . 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.FOREIGN ECONOMIC RELATIONS Since independence. 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. Japan. pyrethrum. coffee. and Tanzania. Africa is Kenya's largest export market. Tanzania. The most active investors currently are the Chinese. Despite AGOA. some from China and others from the high developed countries. The leading imports are crude petroleum. The aim of the EAC is to create a common market of the three states modeled on the European Union. a nonaligned country. Kenya’s apparel industry is struggling to hold its ground against Asian competition and runs a trade deficit with the United States. and the Netherlands. and India. Kenya’s chief exports are horticultural products and tea. Uganda. about 10 times the value of Kenya’s third most valuable export. Kenya’s main exports to the United States are garments traded under the terms of the African Growth and Opportunity Act (AGOA). Major suppliers are the UK. United Arab Emirates. manufactured goods.
when the current account had a deficit of US$495 million.7 billion. Also present are Bata. and Beiersdorf. In 2006 Kenya’s external debt totaled US$6. food manufacturer Cadbury and Toyota Tsusho Corporation. However. Other multinationals operating in Kenya includes British American Tobacco (BAT).relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. The payment for imports was about US$5. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. This figure was a significant increase over 2005. .2. Important multinationals active in Kenya Barclays Bank. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather.Kenya typically has a substantial trade deficit. Kenyan policies on foreign investment generally have been favorable since independence. royalties. with occasional tightening of restrictions to promote the Africanization of enterprises. In 2006 Kenya had a current account deficit of US$1. yielding a trade deficit of about US$2.7 billion. In the 1970s. This denied Kenyans the opportunity to progress economically .5 billion. In 2006 the current account balance as a percentage of gross domestic product was –4. and capital.5 billion. Notwithstanding some restrictions. In 2005 Kenya’s income from exports was about US$3. the German chemical manufacturer and producer of Nivea skincare products. between 60 and 70 percent of industry is still owned from abroad. the global shoe company headquartered in Canada.2 billion. Foreign investors have been guaranteed ownership and the right to remit dividends.
United States and Japan. iron and steel. UAE. United States and Pakistan. Uganda. iron and steel products. Tanzania. . petroleum products. tobacco.3 Billion KES in October of 2011. cement. Kenya imports mostly machinery and transportation equipment. Netherlands.KENYA EXPORTS Kenya exports were worth 45. Other export items include textiles. resins and plastics. Kenya main exports partners are UK. South Africa.7 Billion KES in October of 2011. coffee. KENYA IMPORTS Kenya imports were worth 115. China. Agricultural products are central to Kenya's export industry with horticultural and tea being the most important. Saudi Arabia. motor vehicles. Kenya main import partners are India. petroleum products.
Tanzania. improved performance in the manufacturing. While agriculture recorded reduced growth.REGIONAL ECONOMIC OVERVIEW The East African Countries of Kenya. All the same. . the two countries managed to post positive GDP growth. Continuing economic recovery in the global economy boosted Tanzania’s tourist and Foreign Direct Investment (FDI) inflows and the demand for its exports. Sectors such as communications. and construction sectors helped to bolster growth. The country also shook off the effects of the post election violence. Uganda and Rwanda experienced modest GDP growth rates of 5. mining and quarrying subsectors. and improved performance in telecommunications. electricity. In Uganda. Kenya’s growth was grounded on strong performance across all the key sectors of the economy with agriculture recording marked improvement after two consecutive years of decline. all the other three countries experienced reduced growth rates compared to 2009/10. Tanzania and Uganda carried out their general elections during the year in contrasting environments. energy and gas.6% to 7% in 2010/11. 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. the GDP growth was attributed to recovery in construction and wholesale trade. Significantly. financial services. with the exception of Kenya.
6 5.6 2.0 7.6 126 808.6 4.1 3.3 5.2 6. resulting in simmering discontent.A MACRO-ECONOMIC INDICATORS Comparison of E.9 6.6 39.822 5.567 5.3 5.8 6.6 4.5 .7 521.5 6.964 77. COMPARISON OF E.4 6. In both Uganda and Kenya.1 617.7 6.0 43.0 532.5 31. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.187 23. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.3 8.5 5.5 6.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.8 3. The win effect of the high food and fuel costs have pushed up the cost of living across the region.A Macroeconomic Indicators GDP current prices(USD Million) Real GDP growth rate(%)–2010/11 Real GDP growth rate(%)–2009/10 Population(Million ) GDP per capita(USD)current prices Overall inflation rate (%) Treasury bill interest rate (%) Budget deficit % of GDP at current Kenya Tanzania Uganda Rwanda EA Total/ Average 32.5 10. 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.7 6.104 16.5 11.1 4.7 528.3 5.7 4.8 7.
2 13.prices Development expenditure as a % of GDP at current prices Development expenditure as a % of total expenditure Total public debt(USD million) Trade deficit as % of GDP current prices Tax revenues (USD million) 12.937 3.5 13.300 946 29.0 11.318 .417 11.0 9.8 35.8 17.3 36.145 800 14.7 12.241 4.0 10.904 21.8 7.2 15.0 31.436 2.9 8.0 37.6 45.
Despite early disillusionment of western donors with the government. 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 motivations behind. Another large drag on Kenya’s economy is the burden of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS). making it expensive to do business in Kenya. population growth that has outstripped economic growth. and extreme disparities of wealth that have limited the opportunities of most to develop their skills and knowledge. Kenyans. Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. However there is still significant improvement to be done. 23 percent living on less than US$1 per day. There is debate as to the validity of. pay some 16 bribes a month—two in every three encounters with public officials. especially the vital tea sector.CRITICISM AND CHALLENGES The economy’s heavy dependence on rain-fed agriculture and the tourism sector leaves it vulnerable to cycles of boom and bust. According to Transparency International. whose policy aims include budgetary reforms and debt restraint. Kenya ranks among the world’s half-dozen most corrupt countries. the economy has seen a broad-based expansion. Poor governance and corruption also have had a negative impact on growth. The agricultural sector employs nearly 75 percent of the country’s 38 million people. led by strong performance in tourism and telecommunications. Western donors are now adopting a less paternalistic attitude towards their relations with African nations. Prospects significantly improved under the Kibaki government. Half of the sector’s output remains subsistence production. . Bribery and fraud cost Kenya as much as US$1 billion a year. and acceptable post-drought results in agriculture. deteriorating infrastructure. Kenya's economic policies have been subjected to criticism by western donors. prolonged drought that has necessitated power rationing. such criticism.
nationsencyclopedia. power. and communications in Kenya http://www.go.keu) Read more: Kenya Infrastructure. December 2010. www.tradingeconomics.worldbank. December 2010. power.com/kenya/inflation-cpi . (source: Kenya Economic Update. and communications.html#ixzz1m90WmYO6 www.org/Kenya/keu) (ref.ke/ www. www.centralbank.worldbank.. Kenya Economic Update.com/economies/Africa/Kenya-INFRASTRUCTUREPOWER-AND-COMMUNICATIONS.org/Kenya. Information about Infrastructure.
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