Economy

Economy - overview: Kenya is well placed to serve as an engine of growth in East Africa, but its economy is stagnating because of poor management and uneven commitment to reform. In 1993, the government of Kenya implemented a program of economic liberalization and reform that included the removal of import licensing, price controls, and foreign exchange controls. With the support of the World Bank, IMF, and other donors, the reforms led to a brief turnaround in economic performance following a period of negative growth in the early 1990s. Kenya's real GDP grew 5% in 1995 and 4% in 1996, and inflation remained under control. Growth slowed in 1997-99 however. Political violence damaged the tourist industry, and Kenya's Enhanced Structural Adjustment Program lapsed due to the government's failure to maintain reform or address public sector corruption. 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 - per capita: purchasing power parity - $1,600 (1999 est.)

GDP - composition by sector:
agriculture: 26%
industry: 18%
services: 56% (1999 est.)

Population below poverty line: 42% (1992 est.)

Household income or consumption by percentage share:
lowest 10%: 1.2%
highest 10%: 47.7% (1992)

Labor force: 9.2 million (1998 est.)

Labor force - by occupation: agriculture 75%-80%

Unemployment rate: 50% (1998 est.)

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

Electricity - production: 4.23 billion kWh (1998)

Electricity - production by source:
fossil fuel: 8.27%
hydro: 82.74%
nuclear: 0%
other: 8.99% (1998)

Agriculture - products: coffee, tea, corn, wheat, sugarcane, fruit, vegetables; dairy products, beef, pork, poultry, eggs

Exports - commodities: tea, coffee, horticultural products, petroleum products (1995)

Exports - partners: Uganda 16%, UK 13%, Tanzania 13%, Egypt 5%, Germany 5% (1998)

Imports - commodities: machinery and transportation equipment, petroleum products, iron and steel

Imports - partners: UK 12%, UAE 9%, US 8%, Japan 8%, Germany 6%, India 4% (1998)

Economic aid - recipient: $457 million (1997)

Currency: 1 Kenyan shilling (KSh) = 100 cents

Fiscal year: 1 July - 30 June

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