Kenya is the economic, financial, and transport hub of East Africa. Kenya’s real GDP growth has averaged over 5% for the last decade. Since 2014, Kenya has been ranked as a lower middle income country with a Gross Domestic Product in excess of USD 100 billion making it one of the largest non-oil producing economy in Africa.
The Country offers one of the best foreign investment climates in the wider East African region, Over 2015-2019, Kenya’s economic growth averaged 5.7%, making it one of the fastest growing economies in Sub-Saharan Africa. The performance of the economy has been boosted by a stable macroeconomic environment, positive investor confidence and a resilient services sector.
Data from the Kenya National Bureau of Statistics (KNBS) shows that in 2021 economic activities expanded 7.5 percent compared with a contraction of 0.3 percent in 2020 mainly due to COVID-19 containment measures adopted my the government.
The growth in 2021 was largely supported by improved manufacturing, trade, transportation, real estate and financial services which benefiting from opening of the economy.
Kenya’s economy is market-based, with a few state-owned infrastructure enterprises, and maintains a liberalized external trade system. The country is generally perceived as Eastern and central Africa’s hub for Financial, Communication and Transportation service, with a well-developed social and physical infrastructure.
The government is currently implementing “Vision 2030”, a development agenda that is aimed at transforming the country to a upper middle-income economy by the year 2030. The vision is being implemented through five-year medium-term rolling plans. Additionally, the present administration has selected four sectors to focus on in order to uplift the economy. These are: Universal Healthcare; Affordable Housing; Manufacturing and Infrastructure development.
Kenya, just like many other economies across the world has been negatively affected by the outbreak of Covid-19 in early 2020. A rebound is however expected once the covid-19 containment measures are lifted and all the sectors of the economy are open.