Kenya’s economy is market-based, with a few state-owned infrastructure enterprises, and maintains a liberalized external trade system. The country is generally perceived as Eastern and Central Africa’s hub for Financial, Communication and Transportation services.
- The first quarter of 2012 was characterized by high inflation rates, high interest rates and delays in the onset of the long rains. Inflationary pressure was primarily due to high oil prices, while the high interest rates were mainly due to the tightening of the monetary policy by the Central Bank. In addition to delay in rains, agriculture sector suffered severe frost in January, which mainly affected tea and horticulture sub-sectors.
- Though growth of most sectors slowed substantially, a few sectors recorded notable improvements. The most remarkable improvements were realized in the Electricity and Water, Transport and Communication and Agriculture and Forestry sectors, which respectively grew by 10.8, 5.9 and 2.3 per cent in the first quarter of 2012 compared to 4.8, and 0.2 per cent, during a similar period in 2011.
- Economic prospects are positive with expected growth of 5 percent in 2012, largely because of expansions in tourism, telecommunications, transport, construction and a recovery in agriculture. These improvements are supported by a large pool of English speaking professional workers. There is a high level of computer literacy, especially among the youth. The government, generally perceived as investment friendly, has enacted several regulatory reforms to simplify both foreign and local investment. An increasingly significant portion of Kenya’s foreign inflows is from remittances by non-resident Kenyans who work in the US, Middle East, Europe, Asia and Antarctica. Compared to its neighbors, Kenya has a well-developed social and physical infrastructure. It is considered the main alternative location to South Africa, for major corporations seeking entry into the African continent.
- We are convinced it is private investment that creates the income and the resources that will see us conquer illiteracy, diseases, malnutrition, challenges of supply of clean water and all the other factors that stand in the way to poverty elimination.