Economy - overview: | The regional hub for trade and finance in East Africa, Kenya has been hampered by corruption and by reliance upon several primary goods whose prices have remained low. In 1997, the IMF suspended Kenya's Enhanced Structural Adjustment Program due to the government's failure to maintain reforms and curb corruption. A severe drought from 1999 to 2000 compounded Kenya's problems, causing water and energy rationing and reducing agricultural output. As a result, GDP contracted by 0.2% in 2000. The IMF, which had resumed loans in 2000 to help Kenya through the drought, again halted lending in 2001 when the government failed to institute several anticorruption measures. Despite the return of strong rains in 2001, weak commodity prices, endemic corruption, and low investment limited Kenya's economic growth to 1.2%. Growth lagged at 1.1% in 2002 because of erratic rains, low investor confidence, meager donor support, and political infighting up to the elections. In the key 27 December 2002 elections, Daniel Arap MOI's 24-year-old reign ended, and a new opposition government took on the formidable economic problems facing the nation. In 2003, progress was made in rooting out corruption and encouraging donor support. GDP grew 5% in 2005. |
GDP - per capita | $1,200 (2005 est.) |
GDP - real growth rate (%) | 5% (2005 est.) |
Agriculture - products | tea, coffee, corn, wheat, sugarcane, fruit, vegetables; dairy products, beef, pork, poultry, eggs |
GDP - composition by sector (%) | agriculture: 16.3%, industry: 18.8%, services: 65.1% (2004 est.) |
Industries | small-scale consumer goods (plastic, furniture, batteries, textiles, soap, cigarettes, flour), agricultural products; oil refining, aluminum, steel, lead, cement; commercial ship repair, tourism |
Economic aid - recipient | $453 million (1997) |
Debt - external | $7.349 billion (2005 est.) |
Population below poverty line (%) | 50% (2000 est.) |
Labor force - by occupation (%) | agriculture 75% (2003 est.) |