S Embassy, United Nations Ave., Gigiri; P. O. Box 606
Village Market Nairobi
mailing address: Box 21A, Unit 64100, APO AE 09831
telephone: [254] (20) 537-800
FAX: [254] (20) 537-810

Flag description:
three equal horizontal bands of black (top), red, and green; the
red band is edged in white; a large warrior's shield covering
crossed spears is superimposed at the center

Economy Kenya

Economy - overview:
The regional hub for trade and finance in East Africa, Kenya has
been hampered by corruption and by reliance upon several primary
goods whose prices have remained low. In 1997, the IMF suspended
Kenya's Enhanced Structural Adjustment Program due to the
government's failure to maintain reforms and curb corruption. A
severe drought from 1999 to 2000 compounded Kenya's problems,
causing water and energy rationing and reducing agricultural output.
As a result, GDP contracted by 0.2% in 2000. The IMF, which had
resumed loans in 2000 to help Kenya through the drought, again
halted lending in 2001 when the government failed to institute
several anticorruption measures. Despite the return of strong rains
in 2001, weak commodity prices, endemic corruption, and low
investment limited Kenya's economic growth to 1.2%. Growth lagged at
1.1% in 2002 because of erratic rains, low investor confidence,
meager donor support, and political infighting up to the elections.
In the key December 2002 elections, Daniel Arap MOI's 24-year-old
reign ended, and a new opposition government took on the formidable
economic problems facing the nation. In 2003, progress was made in
rooting out corruption and encouraging donor support. Since then,
however, the KIBAKI government has been rocked by high-level graft
scandals. The World Bank suspended aid for most of 2006, and the IMF
has delayed loans pending further action by the government on
corruption. The scandals have not seemed to affect growth, with GDP
growing more than 5% in 2006.

GDP (purchasing power parity):
$40.77 billion (2006 est.)

GDP (official exchange rate):
$17.39 billion (2006 est.)

GDP - real growth rate:
5.5% (2006 est.)

GDP - per capita (PPP):
$1,200 (2006 est.)

GDP - composition by sector:
agriculture: 16.3%
industry: 18.8%
services: 65% (2004 est.)

Labor force:
1.955 million (2006 est.)

Labor force - by occupation:
agriculture: 75%
industry and services: 25% (2003 es