Economic Overview

The Kenyan economy, East Africa’s largest, has experienced considerable growth in the past few years, driven by several key factors. The country enjoys some particular advantages: a reasonably well-educated labour force, a vital port that serves as an entry point for goods destined for countries in the East African and Central Africa interior, abundant wildlife and kilometres of attractive coastline and above all, a government that is committed to implementing business reforms.

Kenya’s economy remained one of the strongest economies in Africa recording a GDP of Kshs. 7749. 4 billion (US$ 77.494 billion) and growing at 4.9 % in 2017. Agriculture is the most important contributor to Kenya’s GDP at 24.9 %. Tea and horticulture are the leading export earners for Kenya. In 2017, tea and horticulture exports were valued at Kshs. 147.3 billion (US$ 1.473 billion) and Kshs. 113.3 billion (US$ 1.133 billion) respectively. Africa is the leading destination of Kenya’s exports followed by Asia and Europe. Kenya’s main exports to Japan are tea, coffee and cut flowers. Pakistan remains the leading importer of Kenyan tea.

Kenya’s position as the economic, commercial and logistical hub in Eastern Central Africa, places the country as one of the best investment destinations globally. Foreign Direct Investments (FDI) has been on the rise and is strongest in the East Africa region. Additionally, the re-based Gross Domestic Product (GDP) figures of USD 58.1 Billion in 2014 elevated Kenya to a Lower Middle Income Country, one of the largest economies in Sub-Saharan Africa and amongst the fastest growing in the world. In the region, Kenya is the dominant economy in the East Africa Community, contributing to more than 40% of the region’s GDP. This is also uniquely distinguished from many countries by the fact that Kenya’s economy has for a long time been one of the most diversified with no oil, nor gas exports. The recent discovery of oil in Turkana (northern part of the country) is likely to strengthen and boost Kenya’s economic growth.

Other Milestone steps evidenced in modernizing railways, seaports, the airports, and development of geothermal power stations, all puts Kenya on an accelerated developmental pedestal. This is further complemented by Kenya being a member of both the EAC and COMESA economic regional blocs, which both gives a combined market population of over 400 million which is about a half of Africa’s total population.

For more information on the overall economic outlook, and GDP growth of the Kenyan Economy click http://www.knbs.or.ke/.