Kenya is a state in the great lakes region of east Africa; it is bordered by Somalia, Tanzania, Uganda, south Sudan and Ethiopia to the north. It has a population of 43.18 million people. Kenya’s economy is market-based, with few state owned enterprises and maintains a liberal trading system. Its GDP is at $40.70 billion and has a GDP growth of 4.6% as per 2012, with an inflation rate of 9.4%. Kenya is seen to have a well-developed social and physical infrastructure. Kenya is classified as a middle income country capable of servicing its debts, by the World Bank.
According to World Bank and IMF projections the economy is expected to grow at 5.8-6% this year. A significant improvement from the 4.6% GDP growth rate recorded in 2012. According to the Kenya economic update, in the next two years; lower interest rates and high investment will support Kenya’s economic growth. Growth potential is seen in agriculture and manufacturing, while services and ICT are weakening.
Kenya’s vision 2030 is “a national long term development blue-print to create a globally competitive and prosperous nation with a high quality of life by 2030”. It aims to transform Kenya into a middle income country, providing a high quality of life in a safe and clean environment. This vision is anchored on three pillars; economic development, social development and political governance.
Kenya’s economy grew rapidly after independence, through public investment, agricultural production – grew by 4.7% annually - and private foreign industrial investment. The gross domestic product grew at an annual average of 6.6 % in a decade (1963-1973). However there was a decline in its economic performance from 1974, the country...
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...e births. This was an improvement from the 2003 figure of 77 and 115 deaths per 1000 births, respectively.
The challenges faced by the new devolved government, and calls for referendum slow down “the pace of democracy, reforms and accountability”. There has been some progress in the implementation of key policies and processes under the new constitution – Such as an independent judiciary; a new chief justice, attorney general and director of public prosecutions. These political reforms have improved Kenya’s governance.
The World Bank Country policy and Institutionalism Assessment (CPIA) rates improved from 3.8 in the fiscal year 2011 to 3.9 in the fiscal year 2012; this is the highest CPIA rate in Africa. This improvement is accredited to progress in the implementation of policies and institutions for growth and poverty reduction.
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