1. Kenya's economy, “the future pride of Africa”By
Brian Otieno Owino
“Mzalendo”.

2. Introduction
Kenya's economy is market-based, with some state-owned infrastructure enterprises, and maintains a liberalized external trade system. The economy’s heavy dependence on rain-fed agriculture and the tourism sector leaves it vulnerable to cycles of boom and bust. Kenya’s economic performance has been hampered by numerous interacting factors: heavy dependence on a few agricultural exports that are vulnerable to world price fluctuations, population growth that has outstripped economic growth, prolonged drought that has necessitated power rationing, deteriorating infrastructure, and extreme disparities of wealth that have limited the opportunities of most to develop their skills and knowledge. Poor governance and corruption also have had a negative impact on growth, making it expensive to do business in Kenya. But still there is hope and light at the end of the tunnel.

3. International Comparison Program Highlights for Africa
Key highlight results for Kenya include;
􀁸 Kenya is ranked at position 8 in the Largest Economies category out of 48 countries that participated in International Comparison Program (ICP) Africa in terms of GDP
􀁸 In terms of richest and poorest countries, Kenya is ranked at position 25th richest out of 48 countries
􀁸 In terms of price levels, Kenya was 13th least expensive country
􀁸 Kenya was ranked at position 22nd as the most expensive country to invest in.

4. The GDP growth annual rate

5. Inflation growth

6. Major Economic Sectors
The major sectors of Kenya's economy are agriculture, industries and services. Though agriculture formed the basis of the economy of Kenya in the early years of independence, today this sector accounts for a very small percentage of the country's GDP. The services sector contributes the highest percentage to the country's total GDP followed by the industrial sector.

7. GDP composition by sector

8. Agriculture
Agriculture sector recorded a growth of 2.3 per cent in 2007 compared to a revised growth of 4.4 per cent in The drop was mainly due to delayed long rains and low volume of short rains in Agriculture value added at current prices increased by 8.9 per cent from KSh 362,675.0 million in 2006 to KSh 394,939.1 million in The quantity of horticulture exports increased by 17.7 per cent with the value of exports increasing by 51.3 per cent from KSh 43.1 billion in 2006 to KSh 65.2 billion in 2007.
Estimated maize production declined by 6.1 per cent to 32.5 million bags in 2007 from 34.6 million bags produced in 2006 Wheat production increased by 6.4 per cent from thousand tonnes in 2006 to thousand tonnes in 2007

9. Agriculture conti……
Coffee production increased by 10.6 per cent from 48.3 thousand tonnes in 2005/06 crop year to 53.4 thousand tonnes in 2006/07 crop year. Tea production increased by 19.0 per cent to thousand. The volume of marketed milk increased from 361 million litres in 2006 to 423 million litres in tonnes in 2007

10. Environment and Natural Resources
Total fish landed from the freshwater bodies in Kenya increased by 5.5 per cent to thousand tonnes in The value of mineral production increased by 6.1 per cent from KSh 6.6 billion in 2006 to KSh 7.0 billion in Volume of forest products sold decreased from thousand cubic metres in 2006 to thousand cubic metres in 2007.

11. Energy
The international prices for Murban crude oil rose by 46.0 per cent from US$ per barrel in December 2006 to US$ per barrel in December 2007.
Total quantities of petroleum imports registered a growth of 16.4 per cent to stand at 3,691.8 thousand tonnes in 2007.

12. Manufacturing
The manufacturing sector grew at 6.2 per cent in 2007 compared to a growth of 6.3 per cent in The growth was partly driven by increased exports of manufactured products and growth in business investment.
Value of manufacturing output rose by 8.1 per cent from KSh billion in 2006 to KSh billion in Key growth drivers include: Manufacture of food, beverages and tobacco, petroleum and other chemicals

13. Tourism
The country earned an estimated KSh 65.4 billion in 2007, representing a 16.4 per cent increase over the KSh 56.2 billion earned in 2006.
The volume of international arrivals grew by 13.5 per cent from 1,600.6 thousand recorded in 2006 to 1,816.8 thousand in 2007
The number of bed-nights occupied went up by 17.2 per cent from 5,922.7 thousand in 2006 to 6,939.4 thousand in 2007.

14. Outlook for Kenya 2009
Sectors expected to boost growth in the economy includes:
􀁸 Manufacturing
􀁸 Transport and communication
􀁸 Financial sector
􀁸 Building and construction
􀁸 Wholesale and Retail trade
In 2009 GDP is expected to record a growth of between 3.5 per cent and 4.5 per cent.

15. Key interventions areas to spur growth in 2009
Harmony within the Coalition Government
Fast tracking the rehabilitation and construction of infrastructure
Easy accessibility of credit for investment
Aggressive Tourism marketing
Address the cost of production in key sectors
-Agriculture
-Manufacturing

16. Thank you