Economy in Kenya

Economy—overview: Since 1993 the government of Kenya has implemented a program of economic liberalization and reform. Steps have included the removal of import licensing and price controls removal of foreign exchange controls fiscal and monetary restraint and reduction of the public sector through privatizing publicly owned companies and downsizing the civil service. With the support of the World Bank IMF and other donors these reforms have led to a turnaround in economic performance following a period of negative growth in the early 1990s. Kenya's real GDP grew at 5% in 1995 and 4% in 1996 and inflation remained under control. Growth slowed in 1997. Political violence damaged the tourist industry and the IMF allowed Kenya's Enhanced Structural Adjustment Program to lapse due to the government's failure to enact reform conditions and to adequately address public sector corruption. Moreover El Nino rains destroyed crops and damaged an already crumbling infrastructure in 1997 and on into 1998. Long-term barriers to development include electricity shortages the government's continued and inefficient dominance of key sectors endemic corruption and the country's high population growth rate.

GDP: purchasing power parity—$150,590(2004 est.)

GDP—real growth rate: 34.2% (2004 est.)

GDP—per capita: purchasing power parity—$5400 (2004 est.)

GDP—composition by sector:

agriculture: 34%

industry: 20%

services: 46% (2004)

Inflation rate—consumer price index: 8.8% (2004)

Labor force:

total: 8.78 million (2004 est.)

by occupation: agriculture 75%-80% non-agriculture 20%-25%

Unemployment rate: 54% urban (2004 est.)

Budget:

revenues: $1billion

expenditures: $3 billion including capital expenditures of $638 million (FY96/97 est.)

Industries: small-scale consumer goods (plastic furniture batteries textiles soap cigarettes flour) processing agricultural products; oil refining cement; tourism

Industrial production growth rate: 3.8% (2004)

Electricity—capacity: 808 000 kW (2004)

Electricity—production: 2.47 billion kWh (2004)

Electricity—consumption per capita: 134 kWh (2004)

Agriculture—products: coffee tea corn wheat sugarcane fruit vegetables; dairy products beef pork poultry eggs rice beans cocoa

Exports:

total value: $2.1 billion (f.o.b. 2004)

commodities: tea 18% coffee 15% petroleum products (2004)

partners: Uganda 22.8% UK 20.1% Tanzania 19.1% Germany 14.0% Netherlands 7.6% US 6.1%

Imports:

total value: $2.9 billion (f.o.b. 1996)

commodities: machinery and transportation equipment 31% consumer goods 13% petroleum products 12% (1995)

partners: UK 21.3% UAE 18% Japan 14% Germany US

Debt—external: $7 billion (1994 est.)

Economic aid: South Africa 

Currency: 1 Kenyan shilling (KSh) = 1 dollar

Exchange rates: Kenyan shillings (KSh) per US$1—61.164 (January 1998) 58.732 (1997) 57.115 (1996) 51.430 (1995) 56.051 (1994) 58.001 (1993)

Fiscal year: 1 July—30 June