Kenya

The Republic of Kenya, or Kenya ({{IPA2|?k?nj?}}), is a country in East Africa. It borders Ethiopia on the north, Somalia on the north-east, Tanzania on the south, Uganda on the west, and Sudan on the northwest, with the Indian Ocean on the southeast.

Economy

Main article: Economy of Kenya

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Kenya's main economic strengths include tourism and agriculture. The economy is only now beginning to show some growth after years of stagnation. Some argue that this slow economic growth is because of poor management and uneven commitment to reform; others insist that it is due to falling commodity prices and poor access to Western markets.

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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. One of the unintended consequence of freeing foreign exchange control was that it allowed a gold-and-diamond export scam in which the Kenyan government lost over 600 million US dollars. This resulted in a weak currency which hindered economic improvement.

Related Topics:
1993 - Liberalization - Price controls - Foreign exchange controls - World Bank - IMF - Negative growth - 1990s - Gold-and-diamond export scam

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Kenya's GDP grew 5% in 1995 and 4% in 1996, and inflation remained under control. Growth slowed in 1997-1999 however. Political violence damaged the tourist industry, and Kenya's Enhanced Structural Adjustment Program lapsed. A new economic team was put in place in 1999 to revitalize the reform effort, strengthen the civil service, and curb corruption, but wary donors continue to question the government's commitment to western establishment ideas of sound economic policy.

Related Topics:
GDP - 1995 - 1996 - Inflation - 1997 - 1999 - Kenya's Enhanced Structural Adjustment Program

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Considered by some to be long-term barriers to development are: electricity shortages, the government's continued and allegedly inefficient dominance of key sectors, corruption, the foreign debt burden, unstable international commodity prices, poor communication infrastructure and the country's high population growth rate.

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Chief among Kenya's exports are: Flowers (Horticulture), Fruit and Vegetables, Tea and Coffee. Another key foreign exchange earner is tourism.

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