Kenya

Kenya, on the East African coast of the Indian Ocean, has a land mass of 580,370 km² and a total coastline of 536km. It has a population of 54.03 million and GDP of US$113.4 billion. \r\nKenya’s growth is projected to reach 5.2% on average during 2024-2026, mainly driven by the private sector as business confidence strengthens and the public sector continues to scale back. Kenya’s growth is also expected to benefit from the implementation of the recently signed trade agreements under the European Union Economic Partnership Agreement, African Continental Free Trade Area.\r\n\r\nKenya’s economy grew 5.2% in 2023, up from 4.8% in 2022, as agriculture rebounded, and services grew moderately. On the supply side, services accounted for 69% of the growth and agriculture for 23%, while on the demand side, household consumption accounted for 70%. Inflation edged up to 7.7% in 2023 from 7.6% in 2022, driven by core inflation (32% of the change), fuel inflation (26%), and cost-push inflation (9% year on year increase in the producer price index).\r\n\r\nThe policy rate was hiked 375 basis-points, to 12.5%, and central bank operations sought to anchor inflation expectations. The fiscal deficit widened from 6.3% of GDP in 2022 to 7% in 2023, as revenues underperformed, and interest costs rose. Public debt expanded from 66.7% of GDP in 2022 to 70.2% in 2023, driven by increased loans to finance the primary deficit and by exchange rate depreciation. The current account deficit narrowed from 5.2% of GDP in 2022 to 4.9% in 2023, as trade deficits shrank, and secondary incomes increased. \r\n\r\nThe politics of Kenya take place in a framework of a presidential republic, whereby the president is both head of state and head of government, and of a multi-party system in accordance with a new constitution passed in 2010. The proposed Finance Bill 2024 which raised a number of taxes on consumer items was withdrawn by President William Ruto after a large group of youths stormed the parliamentary buildings in protest against the legislation..\r\nThe government’s Least Cost Power Development Plan 2017-2037 outlines current and planned energy sources and fuels for power generation in Kenya. It also provides an overview of renewable energy sources including biomass and cogeneration and biogas. The plan aims to increase installed energy capacity from 1,515MW to 10,621MW by 2031.\r\n\r\nIncentives to attract foreign investment include a 10-year tax holiday for investors that establish businesses in Kenya, and international companies are permitted to repatriate all of their profits.\r\n

Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF.