Economic State of Kenya
Kenya boasts one of the most developed economies in the continent of Africa. The Kenyans currently are living in the low middle class range. They are reaping the benefits of their 3 major economic sectors which are agriculture, forestry, fishing, and mining of minerals. During the 1970’s Kenya’s agricultural production grew by 4.7% annually. Currently agriculture dominates Kenya’s economy the fertility of the land has created a large production sector for the economy. Some of their main methods consist of crop rotation once every five years in order to keep the nutrients within the soil. 42 million people currently work part time in Kenya’s agricultural sector. (CIA.gov) As of today Agriculture contributes 25% of the GDP.
At one point in time Kenya was completely unstable. The economy was in shambles and had been for years. As of today Kenya’s economy ranks 72nd out of all the countries in the world. Corruption is down business freedom is up and trade and investment freedom are high for that region. Recently Kenya has risen from political instability and has become one of Africa’s most developed economies. They are seeing a 4.3% increase in their GDP. Their labor force in total consists of 18 million people and 61 % of that population is employed with the agricultural field. The agricultural industry is very important in the Kenyan’s economy. Although agriculture produces sought after crops 75% is still done on small scale basis. (CIA.gov)
The variables that have been plaguing Kenya’s economy are the high un employment rates which are hovering at 40 %.( CIA.gov) Although Kenya’s middle class is steadily growing urbanization and poverty are growing faster. Kenya’s infrastructure also has created a problem for the economy. Kenya’s main goal is to create a worthy infrastructure they still see stalls with that because of fraud with that they see inflation and sharp currency depreciation. During 2008 inflation had risen to just below 20% the IMF and World Bank had to lay out a plan but by that could deter investors from leaving Kenya’s country had to raise their cash reserve and interest rates. (Countrywatch.com) They have begun to rebound since 2008 and are still the strongest economies in Africa. Some of the major institutions that are funded by the government include the Poverty Reduction Growth facility who seek to progress in fixing Kenyas poverty problems.
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"Index of Economic Freedom." Index of Economic Freedom. N.p., n.d. Web. 01 May 2016. http://www.heritage.org/index/visualize?cnts=kenya&type=2.
"The State of the Kenyan Economy - Current Trends and Future Prospects." The Brookings Institution. N.p., n.d. Web. 01 May 2016. <http://www.brookings.edu/events/2014/02/19-kenyan-economy>.
