A positive economic overview of the country
Kenya has experienced a decade of strong economic growth. Today, Kenya is particularly advanced in the services sector and has been at the origin of innovations adopted throughout the continent. By its determination to be the most innovative country in Africa, in 2017 Kenya has become the first country to sell government bonds via mobile phones.
Agriculture also plays an important role in the economy of country, in fact, Kenya is the world’s third-largest tea producer and the second-largest exporter by volume of tea.
Agriculture accounts for nearly 35% of Kenya’s GDP and employs more than 30% of the working population.
Although the country does not have as many mineral resources as the neighbouring countries, some high-value minerals such as titanium have considerable potential. Besides, Kenya could become an oil and gas producer in the coming years as new oil fields (with a potential of 750 Million barrels) have been discovered following the drilling of exploration in the Northwest of the country, at Turkana region.
The service sector accounts for about 45% of GDP and employs 47.8% of the working population. Tourism is also a key sector of the Kenyan economy, the government has been investing a lot of money in security and making the country more attractive for tourists.
In March 11, 2018, Uhuru Kenyatta and Raila Odinga sealed their reconciliation with a handshake and agreed on the need for reforms in nine areas called the Building Bridge Initiative.
The terms of reference of the task force are “to evaluate the national challenges describe in the country” and “Building Bridges to a New Kenyan Nation, and having done so, make practical recommendations and reform proposals that build lasting unity”. It is also mandated to “outline the policy, administrative reform proposals, and implementation modalities for each identified challenge area; and conduct consultations with citizens.
By its difficult past and the economic crisis of 2017, Kenya is struggling to find the growth drivers that would enable it to modernise its economy. The transformation of agriculture and the industrialisation of the country are the guidelines that would both strengthen the country’s integration into world trade and create the jobs needed to absorb the current demographic shock.
But to achieve this ambition, Kenya, which has undeniable assets, must significantly improve the functioning of its market and its public governance, particularly by eradicating corruption, to make it more attractive to foreign investors.
Kenya is growing step by step.
by Fernanda Braz