Economy of Kenya

1882

The 1882 Married Women's Property Act gives married women equal property rights and the Law of Succession Act gives women inheritance rights, but the constitution exempts those who are considered "members of a particular race or tribe" from being governed by these laws, and instead allows customary law to remain in practice.

1895

In 1895 they dominated the coastal strip, and by 1920 they had followed the interior trade routes all the way to the Buganda Kingdom.

1920

In 1895 they dominated the coastal strip, and by 1920 they had followed the interior trade routes all the way to the Buganda Kingdom.

While Europeans and Indians enjoyed strong economic growth between 1920 and 1963, Africans were deprived of their land, dehumanized and forced to work for minimal pay under extremely poor working conditions through a well-established system of racial segregation. Kenya regained its independence in 1963.

1946

However the rate of GDP growth declined to 4.2% per year in the 1980s, and 2.2% a year in the 1990s. Kenya's policy of import substitution, which started in 1946 with European and Asian enterprises, did not achieve the desired result of transforming Kenya's industrial base, and in the late 1970s rising oil prices began to make Kenya's manufacturing sector noncompetitive.

1963

While Europeans and Indians enjoyed strong economic growth between 1920 and 1963, Africans were deprived of their land, dehumanized and forced to work for minimal pay under extremely poor working conditions through a well-established system of racial segregation. Kenya regained its independence in 1963.

From 1963 to 1973 gross domestic product (GDP) grew at an annual average rate of 6.6%, and during the 1970s it grew at an average rate of 7.2%.

The public debt level is thus 51% of GDP as of 2019. In 2021,Kenya's debt had risen to an absolute amount of US$65B against a GDP of US$101B.The public debt level is thus 65% of GDP as of year 2021. Kenya's largest bilateral lender since 2011 has been China, and the largest multilateral lender since 1963 has been the World Bank. ===Economic Stimulus Program=== The Kenya Economic Stimulus Program (ESP) was introduced in the 2010/2011 budget plan.

1965

An influential sessional paper authored by Tom Mboya and Mwai Kibaki in 1965 stressed the need for Kenya to avoid both the capitalistic economy of the West and the communism of the East.

1970

From 1963 to 1973 gross domestic product (GDP) grew at an annual average rate of 6.6%, and during the 1970s it grew at an average rate of 7.2%.

However the rate of GDP growth declined to 4.2% per year in the 1980s, and 2.2% a year in the 1990s. Kenya's policy of import substitution, which started in 1946 with European and Asian enterprises, did not achieve the desired result of transforming Kenya's industrial base, and in the late 1970s rising oil prices began to make Kenya's manufacturing sector noncompetitive.

1973

From 1963 to 1973 gross domestic product (GDP) grew at an annual average rate of 6.6%, and during the 1970s it grew at an average rate of 7.2%.

1980

However the rate of GDP growth declined to 4.2% per year in the 1980s, and 2.2% a year in the 1990s. Kenya's policy of import substitution, which started in 1946 with European and Asian enterprises, did not achieve the desired result of transforming Kenya's industrial base, and in the late 1970s rising oil prices began to make Kenya's manufacturing sector noncompetitive.

As a result of these issues, bilateral and multilateral donors suspended their aid programs in Kenya in 1991. In the 1980s and 1990s, Kenya signed structural adjustment loans with the World Bank and IMF, the loans were to be given on condition that Kenya adopts some government reforms, a liberal trade and interest rate regime and an industrial policy that was outward-oriented among other reforms . In 1993, the Government of Kenya began a major program of economic reform and liberalization.

In 2006, almost 75% of working Kenyans made their living on the land, compared with 80% in 1980.

The rapid expansion of the sector immediately after independence stagnated in the 1980s, hampered by shortages in [power], high energy costs, dilapidated transport infrastructure, and the dumping of cheap imports.

The tourism sector exhibited steady growth after independence and by the late 1980s had become the country's principal source of foreign exchange.

1982

The deficit of US$5B was borrowed. In financial year ending June 2020,Kenya Revenue Authority collected tax revenue amounting to approximately US$15B. === Government debt === From 1982, Kenya key public debt indicators rose above the critical level measured as a percentage of GDP and as a percentage of government revenue. In 2002, the last year of Daniel arap Moi's administration, Kenya' s public debt stood at almost 80% of GDP.

1989

In 1989, 4.5 million Kenyans out of a total working population of 7.3M worked on family farms.

Most Kenyans are now striving to get modern, wage jobs." Modern wage jobs include being an "engineer, telecommunication specialist, cut flower worker, teacher, construction worker, housekeepers, professionals, any industrial and manufacturing job, and port and dock workers." In 1989, there were only 1.9M Kenyans employed in wage work.

Non-farm self-employment has risen from 1989 to 2009. The World Bank characterizes non-farm self-employment to include jobs such as "street vendor, shop owner, dressmaker, assistant, fishmonger, caterer, etc." Non-farm self-employment has risen from a total of 0.9M in 1989 to a total of 2.7M in 2009.

1990

However the rate of GDP growth declined to 4.2% per year in the 1980s, and 2.2% a year in the 1990s. Kenya's policy of import substitution, which started in 1946 with European and Asian enterprises, did not achieve the desired result of transforming Kenya's industrial base, and in the late 1970s rising oil prices began to make Kenya's manufacturing sector noncompetitive.

As a result of these issues, bilateral and multilateral donors suspended their aid programs in Kenya in 1991. In the 1980s and 1990s, Kenya signed structural adjustment loans with the World Bank and IMF, the loans were to be given on condition that Kenya adopts some government reforms, a liberal trade and interest rate regime and an industrial policy that was outward-oriented among other reforms . In 1993, the Government of Kenya began a major program of economic reform and liberalization.

In the late 1990s, a terrorism-related downturn in tourism followed the 1998 bombing of the U.S Embassy in Nairobi and subsequent negative travel advisories from Western governments.

1991

From 1991 to 1993, Kenya had its worst economic performance since independence.

As a result of these issues, bilateral and multilateral donors suspended their aid programs in Kenya in 1991. In the 1980s and 1990s, Kenya signed structural adjustment loans with the World Bank and IMF, the loans were to be given on condition that Kenya adopts some government reforms, a liberal trade and interest rate regime and an industrial policy that was outward-oriented among other reforms . In 1993, the Government of Kenya began a major program of economic reform and liberalization.

1993

From 1991 to 1993, Kenya had its worst economic performance since independence.

Inflation reached a record of 100% in August 1993, and the government's budget deficit was over 10% of GDP.

As a result of these issues, bilateral and multilateral donors suspended their aid programs in Kenya in 1991. In the 1980s and 1990s, Kenya signed structural adjustment loans with the World Bank and IMF, the loans were to be given on condition that Kenya adopts some government reforms, a liberal trade and interest rate regime and an industrial policy that was outward-oriented among other reforms . In 1993, the Government of Kenya began a major program of economic reform and liberalization.

1994

From 1994 to 1996, Kenya's real GDP growth rate averaged just over 4% a year. In 1997, however, the economy entered a period of slowing or stagnant growth, due in part to adverse weather conditions and reduced economic activity before the general elections in December 1997.

1996

From 1994 to 1996, Kenya's real GDP growth rate averaged just over 4% a year. In 1997, however, the economy entered a period of slowing or stagnant growth, due in part to adverse weather conditions and reduced economic activity before the general elections in December 1997.

The bank began printing banknotes in 1996.

1997

From 1994 to 1996, Kenya's real GDP growth rate averaged just over 4% a year. In 1997, however, the economy entered a period of slowing or stagnant growth, due in part to adverse weather conditions and reduced economic activity before the general elections in December 1997.

In July 1997, the Government of Kenya refused to meet earlier commitments to the IMF on governance reforms.

As a result, the IMF suspended lending for three years, and the World Bank also put a $90 million structural adjustment credit on hold. The Government of Kenya subsequently took positive steps on reform, including the establishment of the Kenya Anti-Corruption Authority in 1997, and measures to improve the transparency of government procurement and reduce the government payroll.

The state-owned Kenya Electricity Generating Company (KenGen), established in 1997 under the name Kenya Power Company, handles the generation of electricity, while the Kenya Power and Lighting Company (KPLC) handles transmission and distribution.

In 1997 and 2000, for example, drought prompted severe power rationing, with economically damaging 12-hour blackouts.

In recent years, Kenya's labour force has shifted from the countryside to the cities, such as Nairobi, as Kenya becomes increasingly urbanised. The labour force participation rate in Kenya has been constant from 1997 to 2010 for both women and men.

In 1997, 65% of women were employed in some type of labour and 76% of men were employed.

1998

In the late 1990s, a terrorism-related downturn in tourism followed the 1998 bombing of the U.S Embassy in Nairobi and subsequent negative travel advisories from Western governments.

2000

In July 2000, the IMF signed a $150 million Poverty Reduction and Growth Facility, and the World Bank followed shortly after with a $157 million Economic and Public Sector Reform credit.

Since AGOA took effect in 2000, Kenya's clothing sales to the United States increased from US$44 million to US$270M in 2006.

In 1997 and 2000, for example, drought prompted severe power rationing, with economically damaging 12-hour blackouts.

2001

Kenya's installed capacity stood at 1,142 megawatts a year between 2001 and 2003.

As of late July 2004, the system consisted of 43 commercial banks (down from 48 in 2001), several non-bank financial institutions, including mortgage companies, four savings and loan associations, and many foreign-exchange bureaus.

Some examples of discriminatory statutes in the constitution are the Law of Succession Act, the Divorce Laws, and the Children's Act 2001.

2002

By 2005, the Kenyan public debt had reduced from highs of 80% of GDP in 2002 to 27% of GDP in 2005.

The deficit of US$5B was borrowed. In financial year ending June 2020,Kenya Revenue Authority collected tax revenue amounting to approximately US$15B. === Government debt === From 1982, Kenya key public debt indicators rose above the critical level measured as a percentage of GDP and as a percentage of government revenue. In 2002, the last year of Daniel arap Moi's administration, Kenya' s public debt stood at almost 80% of GDP.

2003

Despite some setbacks, this process of reform established Kenya as East Africa’s economic powerhouse as well as the region’s business hub. Economic growth improved between 2003 and 2008, under the Mwai Kibaki administration.

When Kibaki took power in 2003, he immediately established the National Debt Management Department at the treasury, reformed the Kenya Revenue Authority (KRA) to increase government revenue, reformed financial laws on banking, wrote off the debts of strategic public enterprises and ensured that 30% of government tax revenue was invested in economic development projects.

Economic growth improved from 2% in 2003 to 7% in 2007.

In the last 10 years of the Moi regime, the government was spending 94% of all its revenue on salaries and debt servicing to IMF, World Bank and other western countries. In 2003, Mwai Kibaki's administration instituted a public debt management department within the treasury department to bring Kenya's debt down to sustainable levels. In 2006, Kenya had a current account deficit of US$1.5B.

The Ministry of Finance aimed to use this program to achieve regional development for equity and social stability. ===Integrated Financial Management Information System=== Originally introduced in 2003, the Integrated Financial Management Information System (IFMIS) was re-engineered by the Ministry of Finance to curb fraud and other malpractices.

Kenya's installed capacity stood at 1,142 megawatts a year between 2001 and 2003.

2004

With these National Rainbow Coalition (NARC) government-driven reforms, the KRA collected more tax revenue in 2004 than was anticipated.

Government budget balance as a percentage of gross domestic product had improved to −2.1% in 2006 from −5.5% in 2004. In 2012, Kenya set a budget of US$14.59B with a government revenue of approximately US$12B. The 2018 budget policy report set a budget of US$30B.

Production downturns periodically necessitate food aid—for example, in 2004 aid was needed for 1.8 million people⎯because of Kenya's intermittent droughts.

In 2004 roundwood removals came to 22,162,000 cubic meters.

Kenya's total catch reported in 2004 was 128,000 metric tons.

In 2004, oil consumption was estimated at a day. ===Tourism=== Kenya's services sector, which contributes about 63% of GDP, is dominated by tourism.

As of late July 2004, the system consisted of 43 commercial banks (down from 48 in 2001), several non-bank financial institutions, including mortgage companies, four savings and loan associations, and many foreign-exchange bureaus.

In 2004, about 15% of the labour force was officially classified as unemployed.

2005

By 2005, the Kenyan public debt had reduced from highs of 80% of GDP in 2002 to 27% of GDP in 2005.

This figure was a significant increase over 2005, when the current account had a deficit of US$495 million.

In 2005, the combined value of these commodities was US$1,150 million, about 10 times the value of Kenya's third most valuable export, coffee.

In 2005 Kenya's income from exports was about US$3.2 billion.

In 2005 agriculture, including forestry and fishing, accounted for about 24% of GDP, as well as for 18% of wage employment and 50% of revenue from exports.

In 2005 horticulture accounted for 23% and tea for 22% of total export earnings.

Coffee has declined in importance with depressed world prices, accounting for just 5% of export receipts in 2005.

Thanks largely to rising soda ash output, Kenya's mineral production in 2005 reached more than 1 million tons.

In 2005, 60% of women and 70% of men were in the labour force, increasing slightly to 61% of women and 72% of men in 2010. ===Family farm labour=== In the past 20 years, Kenyans have moved away from family farming towards jobs that pay wages or to start small businesses outside of agriculture.

2006

The most recent redesign of Kenya's currency was in 2019. ==Government finances== === Revenue and spending === In 2006, Kenya's government revenues totaled US$4.448 billion and its estimated expenditures totaled US$5.377B.

Government budget balance as a percentage of gross domestic product had improved to −2.1% in 2006 from −5.5% in 2004. In 2012, Kenya set a budget of US$14.59B with a government revenue of approximately US$12B. The 2018 budget policy report set a budget of US$30B.

In the last 10 years of the Moi regime, the government was spending 94% of all its revenue on salaries and debt servicing to IMF, World Bank and other western countries. In 2003, Mwai Kibaki's administration instituted a public debt management department within the treasury department to bring Kenya's debt down to sustainable levels. In 2006, Kenya had a current account deficit of US$1.5B.

In 2006, the current account balance as a percentage of gross domestic product was −4.2. In 2006 Kenya's external debt totaled US$6.7B.

With a GDP of US$25.83B in 2006, the public debt level stood at 27% of GDP. In 2011 debt management report the national treasury noted that the debt was rising, growing to 40% of GDP in 2009 and to 54% of GDP by 2012. In 2019, Kenya's debt had risen to an absolute amount of US$50B against a GDP of US$98B.

Total aid was $943 million in 2006, which was 4% of gross national income.

In 2006, almost 75% of working Kenyans made their living on the land, compared with 80% in 1980.

Since AGOA took effect in 2000, Kenya's clothing sales to the United States increased from US$44 million to US$270M in 2006.

In 2006 tourism generated US$803 million, up from US$699 million the previous year. Kenya has also contributed to boosting tourism in other countries; the Nairobi-headquartered Serena Hotel is the most consistently high-rated hotel in Pakistan. ===Financial services=== Kenya is East Africa's hub for financial services.

A number of large local firms such as Anant Bhatt LLP, BC Patel & Co, Githuku Mwangi & Kabia, Devani & Devani, and KKCO also play an integral part in serving the needs of Sacco Societies Regulatory Authority registered companies and private companies within the financial ecosystem. ==Labour== In 2006, Kenya's labour force was estimated to include about 12 million workers, almost 75% in agriculture.

2007

Economic growth improved from 2% in 2003 to 7% in 2007.

The vision is separated into three pillars: economic, social, and political. ===The Economic Pillar=== The economic pillar seeks to consistently achieve economic growth averaging more than 10% for 23 years beginning in the year 2007.

2008

Despite some setbacks, this process of reform established Kenya as East Africa’s economic powerhouse as well as the region’s business hub. Economic growth improved between 2003 and 2008, under the Mwai Kibaki administration.

In 2008, the growth slumped to 1% due to post-election violence before returning to an average of 5% between 2009 and 2013.

The government plans to open two new power stations in 2008, Sondu Miriu (hydroelectric) and Olkaria IV (geothermal), but power demand growth is strong, and demand is still expected to outpace supply during periods of drought. Kenya currently imports all crude petroleum requirements, and petroleum accounts for 20% to 25% of the national import bill.

2009

In 2008, the growth slumped to 1% due to post-election violence before returning to an average of 5% between 2009 and 2013.

However, in 2009 due to the drought and the global financial crisis, high input costs and a fall in demand for some of the country's exports, caused the agriculture sector contracted by 2.7%. Between 2013 and 2018 under the Jubilee Party government led by Uhuru Kenyatta, GDP growth averaged above 5%.

With a GDP of US$25.83B in 2006, the public debt level stood at 27% of GDP. In 2011 debt management report the national treasury noted that the debt was rising, growing to 40% of GDP in 2009 and to 54% of GDP by 2012. In 2019, Kenya's debt had risen to an absolute amount of US$50B against a GDP of US$98B.

In 2009, only 6.5M Kenyans out of a total working population of 14.3M worked on family farms.

In 2009 this number had increased to 5.1M.

In 2009, 3.4M men and 1.3M women were employed in wage jobs. ===Non-farm self-employment/"Jua Kali"=== In Kenya, the "Jua Kali" sector is another name for the informal economy, also described as non-farming self-employment.

Non-farm self-employment has risen from 1989 to 2009. The World Bank characterizes non-farm self-employment to include jobs such as "street vendor, shop owner, dressmaker, assistant, fishmonger, caterer, etc." Non-farm self-employment has risen from a total of 0.9M in 1989 to a total of 2.7M in 2009.

Men make up 1.4M workers, and women workers number 1.3M. As of 2009, Kenya's informal economy accounts for about 80% of the total employment for the country.

2010

The public debt level is thus 51% of GDP as of 2019. In 2021,Kenya's debt had risen to an absolute amount of US$65B against a GDP of US$101B.The public debt level is thus 65% of GDP as of year 2021. Kenya's largest bilateral lender since 2011 has been China, and the largest multilateral lender since 1963 has been the World Bank. ===Economic Stimulus Program=== The Kenya Economic Stimulus Program (ESP) was introduced in the 2010/2011 budget plan.

In recent years, Kenya's labour force has shifted from the countryside to the cities, such as Nairobi, as Kenya becomes increasingly urbanised. The labour force participation rate in Kenya has been constant from 1997 to 2010 for both women and men.

In 2005, 60% of women and 70% of men were in the labour force, increasing slightly to 61% of women and 72% of men in 2010. ===Family farm labour=== In the past 20 years, Kenyans have moved away from family farming towards jobs that pay wages or to start small businesses outside of agriculture.

2011

With a GDP of US$25.83B in 2006, the public debt level stood at 27% of GDP. In 2011 debt management report the national treasury noted that the debt was rising, growing to 40% of GDP in 2009 and to 54% of GDP by 2012. In 2019, Kenya's debt had risen to an absolute amount of US$50B against a GDP of US$98B.

The public debt level is thus 51% of GDP as of 2019. In 2021,Kenya's debt had risen to an absolute amount of US$65B against a GDP of US$101B.The public debt level is thus 65% of GDP as of year 2021. Kenya's largest bilateral lender since 2011 has been China, and the largest multilateral lender since 1963 has been the World Bank. ===Economic Stimulus Program=== The Kenya Economic Stimulus Program (ESP) was introduced in the 2010/2011 budget plan.

2012

Government budget balance as a percentage of gross domestic product had improved to −2.1% in 2006 from −5.5% in 2004. In 2012, Kenya set a budget of US$14.59B with a government revenue of approximately US$12B. The 2018 budget policy report set a budget of US$30B.

With a GDP of US$25.83B in 2006, the public debt level stood at 27% of GDP. In 2011 debt management report the national treasury noted that the debt was rising, growing to 40% of GDP in 2009 and to 54% of GDP by 2012. In 2019, Kenya's debt had risen to an absolute amount of US$50B against a GDP of US$98B.

Of these, 3.8M were women and 2.7M were men. ===Wage-job labour=== According to the World Bank 2012 Kenya Economic Update, "Men are much more likely than women to hold wage jobs, and women are more likely to work on family farms.

2013

In 2008, the growth slumped to 1% due to post-election violence before returning to an average of 5% between 2009 and 2013.

However, in 2009 due to the drought and the global financial crisis, high input costs and a fall in demand for some of the country's exports, caused the agriculture sector contracted by 2.7%. Between 2013 and 2018 under the Jubilee Party government led by Uhuru Kenyatta, GDP growth averaged above 5%.

2015

In July 2015 Kenya's inflation rate was estimated to be 6.62%. Kenya's currency is printed by mandate of the Central Bank of Kenya.

2018

An increasingly significant portion of Kenya's foreign financial inflows are remittances by non-resident Kenyans who work in the US, Middle East, Europe and Asia. As of September 2018, economic prospects were positive with above 6% GDP growth expected, largely because of expansions in the telecommunications, transport and construction sectors, and a recovery in agriculture.

However, in 2009 due to the drought and the global financial crisis, high input costs and a fall in demand for some of the country's exports, caused the agriculture sector contracted by 2.7%. Between 2013 and 2018 under the Jubilee Party government led by Uhuru Kenyatta, GDP growth averaged above 5%.

Real GDP growth (annualised) was 5.7% in Q1 of 2018, 6.0% in Q2 2018 and 6.2% in Q3 2018.

In 2018 President Uhuru Kenyatta established the Big Four Agenda, focusing on universal healthcare, manufacturing, affordable housing and food security, to drive this pillar. ===The Political Pillar=== The political pillar envisions a democratic system that is issue-based,transparent,people-centered, results-oriented and is accountable to the public.

Government budget balance as a percentage of gross domestic product had improved to −2.1% in 2006 from −5.5% in 2004. In 2012, Kenya set a budget of US$14.59B with a government revenue of approximately US$12B. The 2018 budget policy report set a budget of US$30B.

2019

There is a high level of IT literacy and innovation, especially among young Kenyans. In 2020, Kenya ranked 56th in the World Bank ease of doing business rating, up from 61st in 2019 (of 190 countries).

The most recent redesign of Kenya's currency was in 2019. ==Government finances== === Revenue and spending === In 2006, Kenya's government revenues totaled US$4.448 billion and its estimated expenditures totaled US$5.377B.

With a GDP of US$25.83B in 2006, the public debt level stood at 27% of GDP. In 2011 debt management report the national treasury noted that the debt was rising, growing to 40% of GDP in 2009 and to 54% of GDP by 2012. In 2019, Kenya's debt had risen to an absolute amount of US$50B against a GDP of US$98B.

The public debt level is thus 51% of GDP as of 2019. In 2021,Kenya's debt had risen to an absolute amount of US$65B against a GDP of US$101B.The public debt level is thus 65% of GDP as of year 2021. Kenya's largest bilateral lender since 2011 has been China, and the largest multilateral lender since 1963 has been the World Bank. ===Economic Stimulus Program=== The Kenya Economic Stimulus Program (ESP) was introduced in the 2010/2011 budget plan.

2020

As of 2020, Kenya had the third largest economy in Sub-Saharan Africa, coming behind Nigeria and South Africa. The government of Kenya is generally investment-friendly and has enacted several regulatory reforms to simplify both foreign and local investment, including the creation of an export processing zone.

There is a high level of IT literacy and innovation, especially among young Kenyans. In 2020, Kenya ranked 56th in the World Bank ease of doing business rating, up from 61st in 2019 (of 190 countries).

The deficit of US$5B was borrowed. In financial year ending June 2020,Kenya Revenue Authority collected tax revenue amounting to approximately US$15B. === Government debt === From 1982, Kenya key public debt indicators rose above the critical level measured as a percentage of GDP and as a percentage of government revenue. In 2002, the last year of Daniel arap Moi's administration, Kenya' s public debt stood at almost 80% of GDP.

2021

The public debt level is thus 51% of GDP as of 2019. In 2021,Kenya's debt had risen to an absolute amount of US$65B against a GDP of US$101B.The public debt level is thus 65% of GDP as of year 2021. Kenya's largest bilateral lender since 2011 has been China, and the largest multilateral lender since 1963 has been the World Bank. ===Economic Stimulus Program=== The Kenya Economic Stimulus Program (ESP) was introduced in the 2010/2011 budget plan.




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