Mother Earth Travel > Country Index > Kenya > Map Economy History |
| Economy - overview: Kenya is well placed to serve as an engine
of growth in East Africa, but its economy has been stagnating because of
poor management and uneven commitment to reform. In 1993, the government
of Kenya implemented a program of economic liberalization and reform that
included the removal of import licensing, price controls, and foreign
exchange controls. With the support of the World Bank, IMF, and other
donors, the reforms led to a brief turnaround in economic performance
following a period of negative growth in the early 1990s. Kenya's real GDP
grew 5% in 1995 and 4% in 1996, and inflation remained under control.
Growth slowed after 1997, averaging only 1.5% in 1997-2000. In 1997,
political violence damaged the tourist industry, and Kenya's Enhanced
Structural Adjustment Program lapsed due to the government's failure to
maintain reform or address public sector corruption. Severe drought in
1999 and 2000 caused water and energy rationing and reduced agricultural
sector productivity. A new economic team was put in place in 1999 to
revitalize the reform effort, strengthen the civil service, and curb
corruption. The IMF and World Bank renewed their support to Kenya in
mid-2000, but a number of setbacks to the economic reform program in late
2000 have renewed donor and private sector concern about the government's
commitment to sound governance. Long-term barriers to development include
electricity shortages, inefficient government dominance of key sectors,
endemic corruption, and high population growth. GDP: purchasing power
parity - $45.6 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Kenya > Map Economy History