Republic of Kenya

Jamhuri ya Kenya


Kenya officially known as the Republic of Kenya is a country in East Africa that lies on the equator. With the Indian to its south-east, it is bordered by Tanzania to the south, Uganda to the west, South Sudan to the north-west, Ethiopia to the north and Somalia to the north-east. Kenya has a land area of 580,000 km2 and a population of nearly 41 million, representing 42 different people and cultures. The country is named after Mount Kenya, a significant landmark and second among Africa's highest mountain peaks. Following a referendum and adoption of a new constitution in August 2010, Kenya is now divided into 47 counties that are semi-autonomous units of governance. These units are expected to be fully implemented by August 2012 – in time for the first general election under the new constitution. The counties will be governed by elected governors and will operate independent of the central government in Nairobi. The country's geography is as diverse as its multi-ethnic population. It has a warm and humid climate along its coastline on the Indian Ocean which changes to wildliferich savannah grasslands moving inland towards the capital Nairobi. Nairobi has a cool climate that gets colder approaching Mount Kenya, which has three permanently snow-capped peaks. The warm and humid tropical climate reappears further inland towards Lake Victoria, before giving way to temperate forested and hilly areas in the western region. The North Eastern regions along the border with Somalia and Ethiopia are arid and semi-arid areas with neardesert landscapes. The country also has significant geothermal activity that puts a lot of electricity in the national grid. Kenya's capital city, Nairobi, is situated next to a national park. The country is famous for its safaris and diverse world-famous wildlife reserves such as Tsavo National Park, the Maasai Mara, Nakuru National Park, and Aberdares National Park that attract tourists from all over the world. Lake Victoria, the world's second largest fresh-water lake (after Lake Superior in the US and Canada) and the world's largest tropical lake, is situated to the southwest and is shared with Uganda and Tanzania. As part of East Africa, Kenya has seen human habitation since the Lower Paleolithic period. The Bantu expansion reached the area by the first millennium AD, and the borders of the modern

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

soda ash.Titanium.3% (2010)[68] Major markets (2010) . Netherlands 8. vehicle assembly.2% Per Capita Income (PPP)= $1. soft drinks.Economic summary $32. Democratic Republic of the Congo 4.03 billion (Purchasing Power Parity. wheat. UK 8. coffee. US 5. skins petroleum products. tourism Annual growth rate Per capita income Natural resources Agricultural produc e Industry Trade in 2010 Exports $5. cement. corn. horticultural products. n petroleum products.8%. horticultural products.2%. dairy products. $ 66. grain and sugar milling.8%. sisal. sisal. pyrethrum. land (5% arable).7%.1% : Estimate for 2007 = 7. rice.16 billion (2010) at Market Price. fluorspar Uganda 10. pineapples. beer. meat and meat products. Tanzania 9.8% (2005): 2006 = 6. hides and skins. paper and light manufacturing.22 billio tea. hides. pyrethrum.1%.8%. sugarcane.600 Wildlife. Egypt 4. cement. Coal tea. 2010) GDP There exists an informal economy that is never counted as part of the official GDP figures. 5. textiles. coffee.

iron and steel.7% (2010) iers .2 billio machinery and transportation equipment. UAE 9.8%. South Africa 8. resins and plastics Major suppl China 13.7%. Japan 4. Saudi Arabia 6. India 13.Imports $11.4%.4%. motor vehicles.6%. n petroleum products.

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

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

Western areas of Coast Province are mostly Christian. who have played a key role in the local economy.000 and 1 million locals.000 people.2%. with 73% of residents aged below 30 years.7% regarding themselves as Protestant and 23. Nairobi. Sixty percent of the Muslim population lives in Coast Province. is home to Kibera. 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. The shanty town is believed to house between 170. where they constitute the majority religious group.9 million to 40 million over the last century. comprising 50 percent of the total population there.000). indigenous beliefs 1. There is also a small group of Baha'is. The UNHCR base in Dadaab in the north also currently houses around 500. In addition. there is a large Hindu population in Kenya (around 50. Kenya's capital. due to rapid population growth from 2. In addition.7%).000 RELIGION The vast majority of Kenyans are Christian (83%). with 47.POPULATION Kenya has a young population.5% as Roman Catholic. The upper part of Eastern Province is home to 10 percent of the country's Muslims. 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. Sizeable minorities of other faiths do exist (Muslim 11. Semi-urban .

rhinoceros and elephant. buffalo. 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. leopard. 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. where Blue Wildebeest and other bovid participate in a large scale annual migration. including the Masai Mara. reptiles and birds can be found in the national parks and game reserves in the . Up to 250.000 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.

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

The climate in Kenya is greatly influenced by its location close to the equator and its varied terrain.40 Celsius. Nairobi. its climate and weather conditions are also varied.60 Celsius minimum. while the nights are cooler and comfortable. the regions in this area are of semi-desert and arid character. Summers are extremely hot over here and one is expected to wear light summer clothes. Most of the rains occur between April and July. 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.50 Celsius. Generally speaking.20 Celsius maximum and 13. It is one of the most spectacular events of the country. Because of this reason. The climate in Kenya is varied and has a profound influence on the life and the settlement patterns of the people of the country. Rainfall is high in the coastal regions of the country. while Eldoret has a maximum temperature of 23. . The coastal side of the country has a hot and humid climate. This is primarily because of the moist westerly winds that rises form the Atlantic Ocean and the Congo Basin. Rainfall is more on the eastern coast of the country. while the shorter one occurs from October to December. The temperature in the coastal town of Mombasa ranges from a maximum of 30. The early hours of the morning are also cool and pleasant. the country has a dry climate. Apart from the coastal areas.30 Celsius to a minimum of 22. The period ranging from June to September represent the migration period of the wildlife found in the country.CLIMATE As Kenya has a diverse geography. During the daytime the weather is hot.60 Celsius and a minimum temperature of 9. Kenya basically enjoys a tropical climate. February and March are the hottest months of the country while July and August are the cooler months. The climate is also humid in the Lake Victoria basin. the capital of the country has a temperature of 25. Kenya receives a lot of sunshine all around the year. The long rainy season occurs from April to July.

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

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

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

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

The settings of the films in the natural African landscapes have enhanced the beauty of the films to a great deal. . 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. Many internationally renowned films have been made in Kenya. Some of the renowned newspapers that are published and circulated in Kenya are as follows: • • • • Kenya Times Standard Kenya East African Standard Kenya Daily Nation Kenya Last but not the least is Kenya films.level. sports. 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. The Kenyan newspapers cover topics related to politics. regional news.

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

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

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

The provinces were subdivided into districts . . Kenya comprised eight provinces each headed by a Provincial Commissioner (centrally appointed by the president). Districts are then subdivided into 497 divisions . 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 .612 sub locations. There were 69 districts as of 1999 census. The government supervises administration of districts and provinces.427 locations and then 6.9. The divisions are then subdivided into 2.Under the old constitution.

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

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

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

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

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

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. the driver of previous years' growth.0 percent if no shocks occur.39 billion.8 percent—similar to the population growth rate—and income per capita would have stagnated. CONTRIBUTION OF KEY SECTORS TO GDP GROWTH SECTOR Agriculture 2009/10 (%) -22. strong macroeconomic management. Adjusted in purchasing power parity (PPP) terms. trade. restaurants. have moderated while agriculture and industry are rebounding after two weak years. and other. transport.5 CHANGE (%) 46. Per capita GDP averages somewhat more than US$450 annually. 15. ICT innovations.200. government services.3 and 6. and propelling the combined transport and communications sector into the economy's second largest (after agriculture). Public sector investments in infrastructure will help to stimulate this growth. Without ICT.In 2006 Kenya’s GDP was about US$17.3 percent in early 2004 and to nearly 6 percent in 2005 and 2006.8 percent. the timely implementation of the constitutional reforms would also be necessary to help boost business confidence. and construction and a recovery in agriculture. Real GDP is expected to continue to improve. was as follows: agriculture. according to 2004 estimates. Kenya has seen the return of higher growth projected at 4.7 percent. largely because of expansions in tourism. EAC integration. telecommunications. The country’s real GDP growth picked up to 2.9 percent. and hotels. ICT has been the main driver of Kenya's economic growth over the last decade. Kenya's 2010 Economic Performance and Outlook for 2011: In 2010. Five factors are creating a positive momentum: the new constitution.4 percent in 2003 and throughout President Daniel arap Moi’s last term (1997–2002).7 percent.1 2010/11 (%) 24.0 percent. transport and communications. 6.0 percent. and may now be at a tipping point for robust growth. Since 2000.6 .6 percent. Kenya's economy grew at an average of 3. growing on average by 20 percent annually. Economic growth in 2011-12 could range between 5. The Kenya Central Bank forecast for 2007 is between 5 and 6 percent GDP growth. growth in 2010 would have been a lackluster 2. and recent investments in infrastructure. 25. 24. GDP composition by sector. However. compared with a sluggish 1.9 percent. 13. per capita GDP in 2006 was about US$1. Services. manufacturing.

8 2.4 1.9 7.1 -12.9 28.5 -14.0 3.0 13.1 14.Manufacturing Construction Wholesale & retail trade Hotel & restaurants Transport &communications 4.9 -15.9 15.2 -0.7 15.9 14.9 .

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

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

horticultural produce and tea are the main growth sectors and the two most valuable of all of Kenya’s exports. 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. although only 15 percent of Kenya’s total land area has sufficient fertility and rainfall to be farmed. About one-half of total agricultural output is non-marketed subsistence production. China. compared with 80 percent in 1980.1 million in 2001. after tourism and tea. In 2005 agriculture. In 2005 horticulture accounted for 23 percent and tea for 22 percent of total export earnings.AGRICULTURE The agricultural sector continues to dominate Kenya’s economy. In 2006 almost 75 percent of working Kenyans made their living on the land. Kenya is Africa's leading tea producer. horticultural produce. and was fourth in the world. accounted for about 24 percent of GDP. In 2001. Black tea is Kenya's leading agricultural foreign exchange earner. and coffee.140 tons. with more than 260. All coffee is marketed . behind India. Coffee is Kenya's third leading foreign exchange earner. operate on their own. The tea industry is divided between small farms and large estates. coffee earnings totaled $91. Production in 2001/02 amounted to 52. Agriculture is the second largest contributor to Kenya’s gross domestic product (GDP). The estates.000 tons. or nearly 18% of total exports.8 million. coffee is produced on many small farms and a few large estates. including forestry and fishing. Tea exports were valued at $404. Production in 1999 reached 220. Coffee has declined in importance with depressed world prices. and Sri Lanka. The small-scale sector. after the service sector. and only 7 or 8 percent can be classified as first-class land. accounting for just 5 percent of export receipts in 2005. consisting of 60–75 private companies. Similar to the tea sector.000 farmers. The principal cash crops are tea.

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

and fluorspar.162.000 cubic meters. MINING AND MINERALS Kenya has no significant mineral endowment. Thanks largely to rising soda ash output. accounting for less than 1 percent of gross domestic product. 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.000 metric tons. . overfishing. Kenya’s total catch reported in 2004 was 128. gold. In addition. Kenya’s mineral production in 2005 reached more than 1 million tons. Apart from soda ash. salt. according to the Mining Act. The mining and quarrying sector makes a negligible contribution to the economy.vegetables. One of Kenya’s largest foreign-investment projects in recent years is the planned expansion of Magadi Soda. the chief minerals produced are limestone. In 2004 round wood removals came to 22. Fisheries are of local importance around Lake Victoria and have potential on Lake Turkana. output from fishing has been declining because of ecological disruption. Pollution. All minerals not extracted are government property. the majority contributed by the soda ash operation at Lake Magadi in south-central Kenya. However. and the use of unauthorized fishing equipment have led to falling catches and have endangered local fish species.

and farm implements. The estates. is controlled by the parastatal Kenya Tea Development Authority. China. e. consisting of 60–75 private companies. or nearly 18% of total exports. The tea industry is divided between small farms and large estates. motor-vehicle parts. Mombasa. and was fourth in the world. Government's African Growth and Opportunity Act (AGOA) has given a boost to manufacturing in recent years. and Sri Lanka.g. Since AGOA took effect in 2000. There is a vibrant and fast growing cement production industry.000 farmers. operate on their own.S. mainly for the domestic market. Tea exports were valued at $404. concentrated around the three largest urban centers. Kenya has an oil refinery that processes imported crude petroleum into petroleum products. Kenya is Africa's leading tea producer. is dominated by food-processing industries such as grain milling. Nairobi. Black tea is Kenya's leading agricultural foreign exchange earner. a substantial and expanding informal sector commonly referred to as Jua Kali engages in small-scale manufacturing of household goods. manufacturing still accounts for only 14 percent of gross domestic product (GDP). Kenya's clothing sales to the United States increased from US$44 million to US$270 million. and sugarcane crushing. behind India. and the fabrication of consumer goods. Industrial activity. beer production. with more than 260.1 million in 2001. Kenya's inclusion among the beneficiaries of the U..INDUSTRY AND MANUFACTURING Although Kenya is the most industrially developed country in East Africa. . vehicles from kits. and Kisumu. The small-scale sector. Other initiatives to strengthen manufacturing have been the new government's favorable tax measures. In addition. including the removal of duty on capital equipment and other raw materials.

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

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

” Exploration companies are increasing spending in Kenya as neighboring Uganda. as it provides credibility to potentially finding more discoveries. said an e. and there has been no formal estimate of the possible reserves. prepares to become a crude producer next year when Tullow expects to start pumping from the Lake Albert Basin. the Kenyan capital. . plans to sink two test wells in north.K. the London-based explorer with the most licenses in Africa. “The more wells that are drilled.western Kenya this year and early 2012. in London. (APA) may drill offshore next year. 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. according to data from U. to prospect for oil in Kenya. That compares with 480 in East Africa. “The level of activity is at a high and we think once Tullow starts drilling we must prepare ourselves for even more interest. “I wouldn’t be surprised if the Kenyan government tries to capitalize on it. with an estimated 2. The deal allowed for China's state-controlled offshore oil and gas company.mailed response to questions today.S. 14.” Dragan Trajkov. he said. the latest in a series of deals designed to keep Africa's natural resources flowing to China's rapidly expanding economy. No oil has been discovered yet. which is just beginning to drill its first exploratory wells on the borders of Sudan and Somalia and in coastal waters. and other companies may follow as more plans are approved. the faster a discovery will be made. (AFR) “Big companies like Tullow coming into the country automatically creates more interest. Spending on exploration and drilling is estimated at $126 million. an oil and gas analyst at Renaissance Capital Ltd.000 in north and central Africa.based explorer Afren Plc.-based Apache Corp.” Heya said.500 in the west of the continent and 19.5 billion barrels of oil reserves. Only 32 exploratory wells have been drilled in Kenya. Tullow Oil Plc (TLW).OIL EXPLORATION Early in 2006 Chinese President Hu Jintao signed an oil exploration contract with Kenya.” . Heya said in an interview in Nairobi. while U. CNOOC.

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

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

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

5 billion. Foreign investors have been guaranteed ownership and the right to remit dividends.relegating most of them to poverty and creating conditions that would lead to dependency on foreign aid. yielding a trade deficit of about US$2. In the 1970s.7 billion.2.2 billion. Kenyan policies on foreign investment generally have been favorable since independence. royalties. Important multinationals active in Kenya Barclays Bank. This denied Kenyans the opportunity to progress economically . and Beiersdorf. In 2006 Kenya had a current account deficit of US$1. The payment for imports was about US$5.5 billion. . with occasional tightening of restrictions to promote the Africanization of enterprises. Notwithstanding some restrictions. the German chemical manufacturer and producer of Nivea skincare products. The trade balance fluctuates widely because Kenya’s main exports are primary commodities subject to the effects of both world prices and weather. Kenyan has had more economic success and more success raising its own quality of life than some of its neighbors in Sub-Saharan Africa. In 2006 the current account balance as a percentage of gross domestic product was –4. and capital. between 60 and 70 percent of industry is still owned from abroad. This figure was a significant increase over 2005. the government disallowed foreign investment unless there was also some government participation in the ownership of an enterprise. when the current account had a deficit of US$495 million. Other multinationals operating in Kenya includes British American Tobacco (BAT). Also present are Bata. food manufacturer Cadbury and Toyota Tsusho Corporation. the global shoe company headquartered in Canada. Standard Chartered Bank and mobile service provider Vodafone (all three from the UK) are among the top companies doing business in Kenya.7 billion. The debt is forecast to be a manageable 30 percent of gross domestic product in 2007. a significant portion of which can be traced to fraudulent asset transfers by the colonial Britain during transition to independence. However. In 2006 Kenya’s external debt totaled US$6.Kenya typically has a substantial trade deficit. In 2005 Kenya’s income from exports was about US$3.

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

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

6 4.A Macroeconomic Indicators GDP current prices(USD Million) Real GDP growth rate(%)–2010/11 Real GDP growth rate(%)–2009/10 Population(Million ) GDP per capita(USD)current prices Overall inflation rate (%) Treasury bill interest rate (%) Budget deficit % of GDP at current Kenya Tanzania Uganda Rwanda EA Total/ Average 32.6 2. 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.9 6.1 4.7 521. These and other measures aimed at stimulating economic growth are the key messages in the 2011/12 budgets. In both Uganda and Kenya.5 .5 31.3 8.8 3.5 10.2 6.6 5.567 5. COMPARISON OF E. The win effect of the high food and fuel costs have pushed up the cost of living across the region.5 11.3 5.7 4. the citizenry has protested publicly under the so called ‘walk to work’ and ‘unga revolution’ protests.7 6.1 617. resulting in simmering discontent.5 6.1 3.A MACRO-ECONOMIC INDICATORS Comparison of E.104 16.6 4.4 6.5 5.0 7.5 6.964 77.7 528.3 5.The year 2011/12 budgets have been prepared in the wake of rising food and fuel prices.0 532.6 126 808.0 43.822 5.3 5.8 6.6 39.8 7.7 6.187 23.

0 37.145 800 14.937 3.318 .0 11.2 13.6 45.7 12.9 8.0 10.241 4.2 15.3 36.5 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) 12.417 11.904 21.0 9.8 17.8 7.436 2.8 35.300 946 29.0 31.

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

worldbank. Information about (ref. December 2010. www. and communications in Kenya http://www.centralbank. (source: Kenya Economic Update..html#ixzz1m90WmYO6 www.nationsencyclopedia.go. December 2010. power. .worldbank.keu) Read more: Kenya Kenya Economic Update. and communications.

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