THE KENYAN

ECONOMY
MICRO ECONOMIC VARIABLES

Presented by
Rishabh
Shwetal
Pratap
Himanshu
Rajkumar
NATURE OF ECONOMY
• Market based economy and averagely
industrialised nation
• Import led economy
• Newly Industrialised nation by 2030
• Agriculture driven
• Mixed Economic System

2
Economic Insights
• Key development challenges still include poverty,
inequality, unemployment
• Kenyan economy grew by 6.7% in 2021
• Poverty rate declined from 17% in 2020 to 16% in 2021
• Unemployment rate fell to 12.3% from 14.3%
• Export growth is sluggish, and they are still strongly
geared towards primary agricultural goods

3
 National Income
• Kenya GNI for 2021 was $110.40B.
• 11.88% increase from 2020.
• The agricultural sector is the backbone of the
economy, contributing approximately 33 percent .

Your Date Here

4
 Kenya GNI Per Capita

Your Date Here

5
Inflation Metrics
• Kenya's inflation inched to 9.5% this year which is highest
since May 2017
• triggered by high food and fuel prices according to data
by(KNBS)
• set an inflation target of 5 per cent with an accepted range
of between 2.5 and 7.5 per cent.

6
Unemployment Attributes
Govt.
offering
Rapid
Population
contracts to • Unemployment Rate
foreign averaged 9.93 percent from
firms
1991 until 2020
• Highest unemployment rate
Labour in the East African region.
Sluggish &
market
declining
settings &
• Kenya has a long record of
economy implementing employment
mismatches
policies

7
 Monetary Policy
• Monetary Policy Committee (MPC) of Kenya kept its Central
Bank Rate on hold at 7.50%, after May’s 50 basis points
hike
• Monetary Policy Tools-
1. Reserve Requirements,
2.Open Market Operations,
3.Discount Window Operations
• The aim is to achieve stable prices, measured by a low and
stable inflation, and to sustain the value of the Kenya
shilling

8
FISCAL POLICY
• Kenya's fiscal deficit stands at Sh1 trillion which is 8.1 per cent of
GD
• Budget deficit narrowing to 6.2 of GDP
• Economic growth seen slowing to 6% this year from est. 7.6%
• Total public debt requirement for the FY’2022/23 is set to reduce
by 7.2% to Kshs 862.4 bn, from Kshs 929.7 bn, in FY’2021/22
budget estimates

9
foreign exchange & trade
• In Kenya, Foreign Exchange Reserves are the foreign assets
held or controlled by the country central bank.
• Kenya Foreign Exchange Reserves is projected to trend
around 13000.00 USD Million in 2023 and 14400.00 USD
Million in 2024.
• Kenya is largely open to foreign trade, which accounts for
27% of its GDP.

10
 THANK YOU

Your Date Here

Your Footer Here 11