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

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

UK 8. pyrethrum. cement. textiles. coffee. n petroleum products. coffee.8%. beer. grain and sugar milling.1%. sugarcane.7%.3% (2010)[68] Major markets (2010) .8%.2%. hides. rice.600 Wildlife. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. soft drinks. hides and skins. paper and light manufacturing. Netherlands 8. $ 66. fluorspar Uganda 10. vehicle assembly. pineapples. Tanzania 9. sisal. meat and meat products.8%.16 billion (2010) at Market Price. 5.1% : Estimate for 2007 = 7. Democratic Republic of the Congo 4. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. US 5.03 billion (Purchasing Power Parity. dairy products.Economic summary $32. sisal. land (5% arable). Coal tea.8% (2005): 2006 = 6. soda ash. wheat. horticultural products. skins petroleum products. horticultural products. corn.22 billio tea. Egypt 4. cement. pyrethrum.Titanium.2% Per Capita Income (PPP)= $1.

4%.Imports $11.7%. resins and plastics Major suppl China 13. UAE 9. iron and steel. Saudi Arabia 6. India 13. n petroleum products.7% (2010) iers .4%. motor vehicles.2 billio machinery and transportation equipment. South Africa 8.8%. Japan 4.6%.

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

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

The UNHCR base in Dadaab in the north also currently houses around 500. due to rapid population growth from 2. Kenya's capital. There is also a small group of Baha'is.000 people. Semi-urban . with 47. Sixty percent of the Muslim population lives in Coast Province. Sizeable minorities of other faiths do exist (Muslim 11. The upper part of Eastern Province is home to 10 percent of the country's Muslims.5% as Roman Catholic. In addition.2%.POPULATION Kenya has a young population.000 RELIGION The vast majority of Kenyans are Christian (83%). who have played a key role in the local economy. indigenous beliefs 1. one of the world's largest slums.000 and 1 million locals. comprising 50 percent of the total population there. with 73% of residents aged below 30 years.7%). 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. where they constitute the majority religious group.7% regarding themselves as Protestant and 23.000). 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. Nairobi. Western areas of Coast Province are mostly Christian. there is a large Hindu population in Kenya (around 50.9 million to 40 million over the last century. In addition. The shanty town is believed to house between 170.

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

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

Summers are extremely hot over here and one is expected to wear light summer clothes. Generally speaking. The long rainy season occurs from April to July. The temperature in the coastal town of Mombasa ranges from a maximum of 30. Because of this reason. Kenya basically enjoys a tropical climate. . The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain. Nairobi. Rainfall is high in the coastal regions of the country. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. while the nights are cooler and comfortable. the regions in this area are of semi-desert and arid character. 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. while the shorter one occurs from October to December. The early hours of the morning are also cool and pleasant.30 Celsius to a minimum of 22. During the daytime the weather is hot. Apart from the coastal areas.60 Celsius minimum. while Eldoret has a maximum temperature of 23. The climate is also humid in the Lake Victoria basin. Rainfall is more on the eastern coast of the country. the country has a dry climate. the capital of the country has a temperature of 25. Kenya receives a lot of sunshine all around the year.20 Celsius maximum and 13. The coastal side of the country has a hot and humid climate. The period ranging from June to September represent the migration period of the wildlife found in the country.60 Celsius and a minimum temperature of 9.50 Celsius. its climate and weather conditions are also varied.40 Celsius. Most of the rains occur between April and July. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin.CLIMATE As Kenya has a diverse geography. It is one of the most spectacular events of the country.

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

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

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

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

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

including cold storage. According to the U. offers specialized facilities. the busiest airport in Africa.S. which has an annual average freight throughput of about 8. is expected to cost US$245 million. the largest is Nairobi's Jomo Kenyatta International Airport. the Communications Commission of Kenya was established to regulate telecommunications and radio communications in the country. which serves more than 30 airlines providing scheduled services to cities around the world. As a result of heavy operational losses.INFRASTRUCTURE Kenya has an extensive road network of approximately 95.000 miles connecting most parts of the country. handles light aircraft and general aviation. there has been a steady deterioration in the KR's services.800 kilometers of highway. In the same year. In total. The state-owned Kenya Railways Corporation (KR) manages Kenya's single-track railway system. Department of State Country Commercial Guide 2000 . The project. the Kenyan government recently launched the ambitious 'Roads 2000' project. The road network accounts for over 80 percent of Kenya's total passenger and freight transport.1 million tons. Wilson airport in Nairobi. warehousing. Of the total 63. only 8. The World Bank and the British Overseas Development Administration are currently funding a railway rehabilitation project to make KR commercially viable. is the country's main seaport and serves most East and Central African nations. boasting 21 berths. Kenya's port of Mombasa. In collaboration with various donors.000 kilometers of roads in 6 urban centers. 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.). in addition to rehabilitating 20. There are 3 international airports. the KR would lease locomotives to private-sector operators. including 21 that are paved.868 kilometers are paved (1996 est. designed to create links between all major and minor roads. which runs from Mombasa through Nairobi to the Ugandan border. Kenya has 230 airports. The international and domestic air transport infrastructure is relatively well-developed in Kenya. which will span approximately 3 years. for example. the current state of most roads is deplorable. In 1999. Accordingly. and container terminal. The deepwater port. the state-owned .

000 people. in comparison. total electricity production in Kenya equaled 4. Further adding to the problem. a joint venture between Vivendi France and Sameer of Kenya.5 MW from a diesel plant in Nairobi. there were 290. a postal services corporation. and Postal Corporation of Kenya. boasted 640 phone lines per 1. In 1999-2000. a telecommunication corporation.000 main telephone lines in use. Safaricom. power outages and blackouts have become increasingly common as a result of chronic drought. though an Electricity Regulation Board was appointed in 1998 to manage the opening up of the power sector to independent private producers. As of 1998. Kenya's electricity services are mostly provided by the state-owned Kenya Power and Lighting Company (KPLC). The government plans to sell up to 49 percent of Telkom Kenya through the Nairobi Stock Exchange.Kenya Posts and Telecommunications Corporation was split into 2 separate parastatals—Telkom Kenya. Kenya experienced its worst drought in 40 years. Since 82. won the second cellular license bid in 1999 to provide cellular services in competition with the Telkom subsidiary.9 telephone lines per 1. 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.74 percent of the power supply comes from hydroelectricity. Two international companies were licensed at the beginning of 1997 to respectively produce 43 MW of power from a thermal plant in Mombasa and 45. The United States. hydro equipment tends to be outdated and poorly maintained. Kencell. In 1998. the government is eager to further develop both thermal and geothermal sources of power. or approximately 9. .23 billion kWh. Consequently.000 people in 1996. Only 8 percent of the Kenyan population is connected to the national grid.

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

Districts are then subdivided into 497 divisions . .9. Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). There were 69 districts as of 1999 census.612 sub locations. The divisions are then subdivided into 2. The City of Nairobi enjoys the status of a full administrative province. Western Kenya is divided into 47 semi-autonomous counties that will be headed by governors who will be elected in the first general election under the new constitution in August 2012 .427 locations and then 6. The provinces were subdivided into districts .Under the old constitution. The government supervises administration of districts and provinces.

Unfortunately. Tanzania. free movement of people. higher education and telecommunications. boosted by rapid expansion in telecommunication and financial activity over the last decade.9% growth in 2011. largely because of expansions in tourism. Industry and manufacturing is the smallest sector that accounts for 16 percent of the GDP. especially the vital tea sector. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry. seen by strong performance in tourism. and improving regional infrastructures. The World Bank predicts growth of 4% in 2010 and a potential of 4. In March 2004. following the chaos which engulfed the country. kerosene and cooking oil. . and now contributes 62 percent of GDP. transport. However. Privatization of state corporations like the defunct Kenya Post and Telecommunications Company. telecommunications. But this changed immediately after the disputed presidential election of December 2007. and acceptable post-drought results in agriculture. a massive 22 percent of GDP still comes from the unreliable agricultural sector which employs 75 percent of the labor force (a consistent characteristic of under-developed economies that have not attained food security . Kenya's economy grew by more than 7% in 2007 and its foreign debt was greatly reduced. The EAC's objectives include harmonizing tariffs and customs regimes. the Presidents of Kenya. the three East African countries signed a Customs Union Agreement. As of May 2010.an important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. which resulted in East Africa's most profitable company – Safaricom. the economy has seen much expansion. recent legislation allows the government to determine and gazette price-controls on essential commodities like maize flour. has led to their revival due to massive private investment. East and central Africa's biggest economy has posted tremendous growth in the service sector.ECONOMY Despite western donors' early disappointment with the government. and Uganda re-established the East African Community (EAC). In March 1996. construction and a recovery in agriculture. economic prospects are positive with 4–5% GDP growth expected.

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

a portrait of Daniel arap Moi replaced Kenyatta until 2005. followed by 500 shillings in 1988 and 1000 shillings in 1994. 50 and 100 shillings.CURRENCY. In 1980. AND INFLATION The Kenyan shilling replaced the East African shilling in 1966 at par. the first president of Kenya. 5 shillings notes were replaced by coins in 1985. 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. In 1985. and 1 and 2 shillings. 10. EXCHANGE RATE. 10 and 20 shillings. followed by 10 shillings in 1994 and 20 shillings in 1998. BANKNOTES In 1966. the portrait of Jomo Kenyatta. the Central Bank of Kenya issued notes in denominations of 5. New coins with the image of Kenyatta were issued in 2005. COINS The first coins were issued in 1966 in denominations of 5. with the same happening to 10 and 20 shillings in 1994 and 1998. 10. 20. when the central bank introduced a new coin series that restored the portrait of Kenyatta. 25 and 50 cents. originally appeared on the obverse of all of independent Kenya's coins. Between 1967 and 1978. In 1986. 2 shillings coins were last minted in 1971. 5 shillings coins were introduced. . 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). 200 shillings notes were introduced.

after Mwai Kibaki replaced Moi as president. The issue of 12 December 2003 commemorates the "40 years of Independence 1963-2003". and 20 shilling notes from the 1978 series with Kenyatta's picture that had been in storage were issued. Mzee Jomo Kenyatta appeared on the banknotes issued until 1978. including increasing interest rate and money market operations. 500 and 1000 shilling. A new series of notes was then introduced on which Kenyatta reappeared with denominations of 50. 200. 100. and circulated for a time. 5. EXCHANGE RATE The exchange rate of Kenya shilling slumped dramatically in mid-2011. . The Central Bank of Kenya shifted its target to tighten liquidity. In 2003. 10. The banknotes are printed in Nairobi by De La Rue. INFLATION The inflation rate in Kenya was last reported at 18.9 percent in December of 2011. from about 83 shillings per US dollar to about 100 shillings per US dollar at late 2011. But expected inflows due to tea export drove up the exchange rate to about 84 shillings per US dollar on 31 January 2012.As with the coins. with Daniel arap Moi's portrait replacing him in 1980.

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

Real GDP is expected to continue to improve. the driver of previous years' growth. 14. 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. was as follows: agriculture. 6.0 percent if no shocks occur.8 percent. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. growth in 2010 would have been a lackluster 2. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. government services.6 .9 percent. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth.In 2006 Kenya’s GDP was about US$17. have moderated while agriculture and industry are rebounding after two weak years. Services. and recent investments in infrastructure.9 percent. per capita GDP in 2006 was about US$1. Adjusted in purchasing power parity (PPP) terms. transport and communications. and hotels. Without ICT.0 percent.1 2010/11 (%) 24. strong macroeconomic management.8 percent—similar to the population growth rate—and income per capita would have stagnated. Five factors are creating a positive momentum: the new constitution. 13. 25. Per capita GDP averages somewhat more than US$450 annually. and construction and a recovery in agriculture. largely because of expansions in tourism.39 billion.200. The country’s real GDP growth picked up to 2. However. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. 15.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002). Since 2000. Kenya's economy grew at an average of 3.3 and 6.0 percent.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006. GDP composition by sector. 24. ICT has been the main driver of Kenya's economic growth over the last decade. telecommunications. Public sector investments in infrastructure will help to stimulate this growth. restaurants. transport.6 percent. Economic growth in 2011-12 could range between 5.7 percent. and may now be at a tipping point for robust growth. trade. manufacturing. compared with a sluggish 1. ICT innovations. growing on average by 20 percent annually. according to 2004 estimates. Kenya has seen the return of higher growth projected at 4.7 percent. and other.5 CHANGE (%) 46. EAC integration. and propelling the combined transport and communications sector into the economy's second largest (after agriculture).

9 .2 -0.0 3.9 14.5 -14.1 14.4 1.9 -15.9 7.7 15.0 13.8 2.1 -12.9 28.9 15.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.

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

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

AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. All coffee is marketed . coffee earnings totaled $91. Black tea is Kenya's leading agricultural foreign exchange earner. In 2005 agriculture. coffee is produced on many small farms and a few large estates. In 2001. About one-half of total agricultural output is non-marketed subsistence production. behind India. compared with 80 percent in 1980. including forestry and fishing.1 million in 2001.8 million. China. and coffee.140 tons. is controlled by the parastatal Kenya Tea Development Authority. The principal cash crops are tea. or nearly 18% of total exports. with more than 260. operate on their own. The estates. Tea exports were valued at $404. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. In 2006 almost 75 percent of working Kenyans made their living on the land.000 tons. consisting of 60–75 private companies. Kenya is Africa's leading tea producer. horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports.000 farmers. after tourism and tea. Coffee has declined in importance with depressed world prices. horticultural produce. accounting for just 5 percent of export receipts in 2005. after the service sector. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings. Production in 1999 reached 220. The tea industry is divided between small farms and large estates. as well as for 18 percent of wage employment and 50 percent of revenue from exports. Production in 2001/02 amounted to 52. and Sri Lanka. Similar to the tea sector. accounted for about 24 percent of GDP. Coffee is Kenya's third leading foreign exchange earner. The small-scale sector. and only 7 or 8 percent can be classified as first-class land. and was fourth in the world.

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

overfishing. accounting for less than 1 percent of gross domestic product.000 cubic meters. salt.162. Kenya’s total catch reported in 2004 was 128. MINING AND MINERALS Kenya has no significant mineral endowment. and fluorspar. Apart from soda ash. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. the chief minerals produced are limestone. the volcanic ash crisis in April 2010 disrupted access to the key source markers in Europe FORESTRY AND FISHING Resource degradation has reduced output from forestry. In addition. gold. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. All minerals not extracted are government property. . In 2004 round wood removals came to 22.000 metric tons. Kenya’s mineral production in 2005 reached more than 1 million tons. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species. Thanks largely to rising soda ash output.vegetables. according to the Mining Act. output from fishing has been declining because of ecological disruption. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya. The mining and quarrying sector makes a negligible contribution to the economy. Pollution. However.

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

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

Reacting to the current speculation about prospects for an early oil find. . an inland area in the Lamu basin.overlooked region. with the area around Lake Turkana and the coastal belt being singled out as the most promising prospects. 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. senior geologists at Uganda's Energy Ministry who were at the forefront of the country's search for oil two decades ago. Before its exit mid this year. said they had no reason to doubt that there was oil in Kenya.

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

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

social scientists. . Vision 2030 aims to turn Kenya into an economic powerhouse by increasing income per head fivefold to $3. 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. Lee the former Prime Minister of Singapore.VISION 2030 In October 2006 the Kenya Government unveiled Vision 2030 with a focus on transforming national development. and Mr. government officials and even international personalities like Baroness Chalker from the U.K. It is an ambitious long term strategy that will supersede the Economic Recovery Strategy for Wealth and Employment Creation which expired in December 2007.000 by achieving and sustaining 10% GDP growth per annum and transforming the country into an efficient modern democracy.

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

yielding a trade deficit of about US$2.2 billion. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. Notwithstanding some restrictions. However. when the current account had a deficit of US$495 million. Other multinationals operating in Kenya includes British American Tobacco (BAT). In 2006 Kenya had a current account deficit of US$1.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. In 2006 the current account balance as a percentage of gross domestic product was –4.2. Important multinationals active in Kenya Barclays Bank. the German chemical manufacturer and producer of Nivea skincare products.7 billion. In the 1970s.Kenya typically has a substantial trade deficit. food manufacturer Cadbury and Toyota Tsusho Corporation. Foreign investors have been guaranteed ownership and the right to remit dividends. Also present are Bata. In 2005 Kenya’s income from exports was about US$3. and capital. between 60 and 70 percent of industry is still owned from abroad. 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. . The payment for imports was about US$5. This figure was a significant increase over 2005. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. and Beiersdorf. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa.5 billion. with occasional tightening of restrictions to promote the Africanization of enterprises. Kenyan policies on foreign investment generally have been favorable since independence. royalties. the global shoe company headquartered in Canada. This denied Kenyans the opportunity to progress economically .5 billion. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather.

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

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

7 6. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.7 4.1 3.8 7. resulting in simmering discontent.0 43.6 5. COMPARISON OF E.6 2.5 11.7 6.8 6.964 77.187 23.822 5.3 5.104 16.3 5.567 5.9 6.0 7.4 6.3 8.6 4.5 31.6 4.2 6.5 .6 39. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.7 528.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 5.1 4.8 3. In both Uganda and Kenya. 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.A MACRO-ECONOMIC INDICATORS Comparison of E. The win effect of the high food and fuel costs have pushed up the cost of living across the region.5 6.3 5.6 126 808.0 532.1 617.5 6.5 10.7 521.

3 36.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) 12.5 13.8 7.145 800 14.436 2.0 10.0 9.2 13.300 946 29.8 35.417 11.0 31.7 12.9 8.241 4.0 11.0 37.6 45.8 17.318 .2 15.904 21.937 3.

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

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

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