The Kenyan Economy
Kenya has fully liberalized its economy by abolishing exchange controls, removing price controls, and import licensing regimes. The government has also freed the Kenya shilling exchange rate to be market-driven with no restrictions on remittances as well as the repatriation of profits and dividends. The country's Capital Markets is also open to foreign participation.
Kenya is also the largest and the most advanced economy in East and Central Africa; with strong growth prospects supported by an emerging, urban middle class. In the last decade, Kenya has made significant political, structural, and economic reforms that have largely driven sustained economic growth, social development, and political gains.
The promulgation of the 2010 Constitution ushered in devolution, a new political and economic governance system that has seen Kenya rise to be one of the fastest-growing economies in Sub-Saharan Africa with the real Gross Domestic Product (GDP) estimated to have expanded by 5.4 percent in 2019 compared to a growth of 6.3 percent in 2018. A September 2019 economic outlook published by The World Bank attributed the boost in economic expansion to the country's stable macroeconomic environment, positive investor confidence, and a resilient services sector.
The Government's Big 4 Agenda and commitment to entrenching investor-friendly reforms have seen the rapid transformation of the country's investment landscape. Since 2014, Kenya has jumped 80 places to be ranked at position 56 out of 190 Countries in the 2019 World Bank Group’s Doing Business Report cementing the country's position as East Africa's largest economy with a simplified and predictable business environment.
Kenya operates a liberal economy that promotes trade and investment with guarantees on capital repatriation as well as remittance of dividends and interest to foreign investors. Agriculture and manufacturing are the key drivers of the economy contributing over 41% of the national gross domestic product growth (GDP of $99.246 billion - 2019).
Looking ahead, Kenya is on course to deliver on her development blueprint Vision 2030 with medium-term GDP is expected to rise to 5.9% in 2020 and 6.0% in 2021 underpinned by private consumption, a pick-up in industrial activity and still strong performance in the services sector.