Kenya

A de facto one-party state from 1969 to 1982, Kenya was taken over by the Kenya African National Union (KANU), which maintained that it was the only legal party in the country. While President Daniel Toroitich arap MOI, who came to power in 1978, gave in to political liberalization demands in 1991, the opposition did not succeed in removing KANU from power during the 1992 and 1997 elections. After free and fair elections, MOI left office in 2002, and Mwai KIBAKI of the National Rainbow Coalition (NARC), the united opposition group, became president. The NARC coalition of KIBAKI dissolved in 2005, and a new opposition coalition was formed- the Orange Democratic Movement; this coalition rejected the draft of the constitution in the 2005 referendum.

Main Airports

Mombasa (MBA) (Moi International), Nairobi (NBO) (Jomo Kenyatta International)

U.S. Embassy

UN Avenue, Nairobi, P.O. Box 606, Village Market, Nairobi
tel. 254-20-363-6000
http://nairobi.usembassy.gov/

Statistics

GDP: purchasing power parity:

$37.15 billion (2005 est.)

GDP - real growth rate:

5.2% (2005 est.)

GDP - per capita: purchasing power parity:

1,100 (2005 est.)

Inflation rate (consumer prices):

10.3% (2005 est.)

Labor force:

11.85 million (2005 est.)

Exports:

$3.173 billion f.o.b. (2005 est.)

Exports - partners:

Uganda 13.8%, UK 10.5%, US 9.5%, Netherlands 8.1%, Egypt 5.1%, Tanzania 4.7%, Pakistan 4.5% (2005)

Imports:

$5.126 billion f.o.b. (2005 est.)

Imports - partners:

UAE 13.9%, US 10.1%, Saudi Arabia 10.1%, South Africa 8.1%, China 7.3%, India 6.7%, UK 5.6%, Japan 4% (2005)

Population:

34,707,817

Population growth rate:

2.57% (2006 est.)

Population Below Poverty Line:

50% (2000 est.)

Major Industries:

small-scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap, cigarettes, flour), agricultural products, horticulture, oil refining; aluminum, steel, lead; cement, commercial ship repair, tourism

Employing Workers: 68*

Registering Property: 115*

Enforcing Contracts: 67*

Closing a Business: 128*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Kenya	Region
Procedures (number)	13	11.1
Time (days)	54	61.8

Kenya Risk Assessment

Country Rating

Rating: C

A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behaviour. Corporate default probability is high.

Risk Assessment

Kenya posted strong growth for the fourth straight year in 2007. Good weather conditions benefited agriculture as well as the forestry and fishing sectors. On a more fundamental level, the base of economic growth broadened thanks to the development of tourism and the intensification of trade within the East Africa Community. Those trends should continue in 2008 provided the post-elections tensions prove to lessen.
The economy has, however, been giving signs of overheating due to bottlenecks in transport and energy infrastructure. Rising despite the central bank's restrictive monetary policy, inflation should remain above the five°per°cent target.

The good economic conditions coupled with prudent fiscal policy have only contributed modestly to the consolidation of public finances with privatisation proceeds and tax revenues less than expected while debt service and investment spending undermined the budget. The fiscal deficit should moreover grow larger in 2008 due to the spending increase. The strong growth has moreover resulted in a widening of the current account deficit attributable to rising capital goods imports and the increasing cost of oil. The country's external financing needs nonetheless remain largely covered by incoming foreign direct investment. The country has ample and growing foreign exchange reserves.

Despite the progress made in improving the business environment, which allowed Kenya to be included in 2007 among the ten most reform-minded countries in Africa, the anti-corrupt campaign is still inadequate. The escalation of ethnic tensions in the wake of the hotly disputed December 2007 elections constitutes a critical risk for the stability of the country and the region.

STRENGTHS

• Kenya's relatively diversified economy has benefited from the growth of the construction and telecommunications sectors.
• An emerging middle class has underpinned consumption and fostered greater diversification of production.
• The regional integration under way within the East Africa Community has enhanced Kenya's role in the region and its attractiveness to investors.
• The influx of foreign direct investment, since 2005 has underpinned an increase in medium-term potential.

• Agriculture remains a crucial sector of the economy, generating 25 per cent of GDP and providing a livelihood for the majority — 85 per cent — of the population whose incomes are thus vulnerable to weather conditions.
• A shortage of infrastructure and its deteriorated condition have impeded growth with the road network and port facilities still inadequate and electricity production limited.
• An extensive mobilisation of resources will be necessary to stem not only the poverty that afflicted 46 per cent of the population in 2006 but also unemployment and an AIDS pandemic in sharp decline but still affecting six per cent of the population.
• Persistent corruption and violence have damaged Kenya's image and have had a negative impact on international aid.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation