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03-Jun-2016 14:14 by 7 Comments

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Growth in 2011 is expected to be in the range of 4.5-5.0 percent, somewhat lower than earlier projections of 5-6 percent growth, due to a combination of factors, including high inflation, drought, and a weak shilling causing prices of imported goods to skyrocket.Kenya’s inflation dropped from 16.2 percent in 2008 to 9.2 percent in 2009, partly due to new methodology for calculating the rate, and fell further to 4.1 percent in 2010.

In late 2010, the ratings agency Standard & Poor’s (S&P) upgraded Kenya’s sovereign debt rating to B+/B (long-term/short-term) with a stable outlook.

S&P affirmed this rating in December 2011, despite inflation near 20 percent and exchange rate volatility that saw the Kenya shilling oscillate between Ksh 107 and Ksh 83 against the dollar in a two-month period.

The rating is based on S&P’s “expectation of continued political stability, fairly resilient economic growth, improving inflation performance, and continued moderately high deficits, but with more spending on growth-enhancing infrastructure investment.” S&P could lower the rating if “political tensions were to flare up, significant currency pressures were to re-emerge, or fiscal or monetary performance were to deteriorate significantly.” Since independence, Kenya has pursued at various times import substitution and export oriented industrialization strategies.

It is currently implementing an industrialization strategy outlined in Sessional Paper No.

Home » Under Secretary for Economic Growth, Energy, and the Environment » Bureau of Economic and Business Affairs » Remarks and Releases » Other Releases » Investment Climate Statements 2015 » Investment Climate Statements 2012 » Kenya Openness to Foreign Investment Kenya has enjoyed a long history of economic leadership in East Africa as the largest and most advanced economy in the region.

However, ethnically-charged post-election violence in January-February 2008, which left 1,200 dead and 300,000 displaced, caused many to reassess Kenya’s investment climate.

Since then, the economy has rebounded but serious concerns about corruption and governance remain.Tourism is nearing pre-election levels with 1.1 million arrivals in 2010 and 1.04 million in the first three quarters of 2011, up 16 percent compared to the same period in 2010.This is despite security concerns following high-profile kidnappings in the coastal city of Lamu, one of the triggers for Kenya’s military incursion into Somalia in pursuit of al-Shabaab militants.Kenya adopted a new constitution in a peaceful 2010 referendum, generating hope that the country will avoid a repeat of the 2008 violence when it heads to the polls again in late 2012 or early 2013.After experiencing 7.1 percent growth in 2007, the economy slowed to 1.6 percent growth in 2008.The economy in 2009 grew at 2.6 percent, while 2010 growth further improved to 5.6 percent.

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  • updating your passport 03-Jun-2016 14:17

    High inflation reemerged in 2011, however, hitting a year-on-year high of 19.72 percent in November 2011 before falling slightly to 18.93 percent in December 2011. Agriculture was hard-hit by drought in 2011, but recovered following an unusually long and heavy short rains period in October-November, which also led to severe flooding in some areas of the country.