Kenya is the largest and most advanced economy in East and Central Africa. Its GDP accounts for more than 50 per cent of the region’s total and in terms of current market prices, its 2019 GDP stood at $99.246 billion making it the 62nd largest economy in the world. Kenya’s strong growth prospects are supported by an emerging middle class and an increasing appetite for high-value good and services.
A key regional player in East Africa, Kenya is a major communications and logistics hub, with an important Indian Ocean port and strategic land borders with Ethiopia, South Sudan, Uganda, Tanzania, and Somalia. It has a population of about 48.5 million (2016).
Kenya’s economic growth in 2016 reached 5.8% placing the country as one of the fastest growing economies in Sub-Saharan Africa. This expansion was boosted by a stable macroeconomic environment, low oil prices, a rebound in tourism, strong remittance inflows, and government-led infrastructure development initiatives.
The country’s Medium-term GDP growth 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. Inflation is expected to remain within the government’s target range while the current account deficit is projected to remain manageable. Growth will also be driven by ongoing key investment to support implementation of the Big 4 development agenda and improved business sentiment. Growth could have been stronger in the absence of interest rate caps that continue to derail recovery in private credit growth.
In addition to aligning fostering economic development through the country’s development agenda to the long-term development plan; Vision 2030, the President in December outlined the “Big Four” development priority areas for his final term as President. The Big Four will prioritize manufacturing, universal healthcare, affordable housing and food security.
A new Constitution in 2010 introduced Devolution that lead to both political and economic transformation, and strengthened accountability and public service delivery at local levels.
Kenya has the potential to be one of Africa’s success stories from its growing youthful population, a dynamic private sector, highly skilled workforce, improved infrastructure, a new constitution, and its pivotal role in East Africa.
Kenya is a market of strategic importance for both Dubai and Dubai Chamber. Since we opened our Kenya office in 2016, we have seen a dramatic improvement in bilateral business relations. Non-oil trade between Kenya and Dubai continued to climb to reach US$1.4 billion in 2018.
Meanwhile, the number of Kenyan companies registered with Dubai Chamber has increased steadily to exceed 300 today. This growth has been supported by several key factors such as the expansion of direct flights between the UAE and Kenya, as well as strategic cooperation agreements, which have been signed in recent years.
Source:
http://www.worldbank.org/en/country/kenya/overview
http://invest.go.ke/why-invest-in-kenya/
Climate
The climate of Kenya varies by location, from mostly cool every day, to always warm/hot. The climate along the coastal region is tropical therefore with rainfall and temperatures remaining higher throughout the year. The air also changes from cool to hot, almost every day.
The further inside Kenya, the more arid the climate becomes. An arid climate is nearly devoid of rainfall, and temperature swings widely according to the general time of the day/night. For many areas of Kenya, the daytime temperature rises about 12 °C (corresponding to a rise of about 22 °F), almost every day. Elevation is the major factor in temperature levels, with the higher areas, on average, as 11 °C (20 °F) cooler, day or night. Cities over a kilometer in elevation have temperature swings from roughly 10–26 °C (50–79 °F). Nairobi, at 1,798 m (5,899 ft), ranges from 9–27 °C (49–80 °F)
Currency and Credit Cards
The official currency is the Kenya Shilling (KES). United States Dollar (USD) is a widely accepted currency at many banks – exchange points across Nairobi and the country. ATMs are readily available throughout the country. Mobile money transfer is a widely used throughout the country making access to finance easy and affordable. The vast majority of commercial outlets in the capital and major outlets outside the capital accept major credit cards (Mastercard and Visa).
Latest exchange rates can be viewed here: https://www.centralbank.go.ke/forex
Electricity
Electricity in Kenya is generated from geothermal (47% of consumption), hydropower (39%), thermal (13%) and wind (0.4%). Kenya’s current installed electricity capacity is estimated at 2.4GW, 1.5GW of which is grid-connected and 500MW of which has come online since mid-2014
Language
The official languages are English and Swahili which are widely understood and spoken by the general population. English is the most widely used business language in the country.
Time
Kenya is three (3) hours ahead of GMT/UTC.
About East African Community
East Africa is the easterly region of the African continent, variably defined by geography and geopolitics. The region comprises Kenya, Tanzania, Uganda, Rwanda and Burundi. The countries collectively form the East Africa Community.
The East African Community (EAC) is a regional intergovernmental organisation of 6 Partner States: the Republics of Burundi, Kenya, Rwanda, South Sudan, the United Republic of Tanzania, and the Republic of Uganda, with its headquarters in Arusha, Tanzania.
The EAC is home to 177 million citizens, of which 22% is urban population. With a land area of 2.5 million square kilometres and a combined Gross Domestic Product of US$ 193 billion (EAC Statistics for 2019), its realization bears great strategic and geopolitical significance and prospects for the renewed and reinvigorated EAC.
The EAC is one of the fastest growing regional economic blocs in the world, the bloc is widening and deepening co-operation among the partner states in political, economic and social for their mutual benefit.
The process towards an East African Federation is being fast tracked, underscoring the serious determination of the East African leadership and citizens to construct a powerful and sustainable East African economic and political bloc.
Source: www.eac.int
Dubai serves as a major re-export hub for African companies that trade with the GCC and use the city as a strategic hub to access key growth markets in Asia and Europe.
Prospective sectors include but not limited to:
- Agriculture and Food Processing
- Financial Services
- Energy
- Information and Communication Technology
- Manufacturing
- Pharmaceuticals and Healthcare
- Retail and Franchising
- Tourism and Hospitality