202) 387-6101 chancery: Diplomatic
representation from the US: chief of mission: Ambassador Johnnie CARSON
embassy: US Embassy, Mombasa Road, Nairobi mailing address: Box 21A, Unit
64100, APO AE 09831 telephone: [254] (2) 537-800 FAX: [254] (2) 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: Kenya, the regional hub for trade and finance in East
Africa, is hampered by corruption and reliance upon several primary goods
whose prices continue to decline. Following strong economic growth in 1995
and 1996, Kenya's economy has stagnated, with GDP growth failing to keep
up with the rate of population growth. 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 0.3%
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%, and Kenya is unlikely
to see growth above 2% in 2002. Substantial IMF and other foreign support
is essential to prevent a further decline in real per capita output.

GDP: purchasing power parity - $31 billion (2001 est.)

GDP - real growth rate: 1% (2001 est.)

GDP - per capita: purchasing power parity - $1,000 (2001 est.)

GDP - composition by sector: agriculture: 24% industry: 13% services:
63% (2000 est.)

Population below poverty line: 50% (2000 est.)

Household income or consumption by percentage share: lowest 10%: 2%
highest 10%: 37.2% (2000)

Distribution of family income - Gini index: 44.5 (1994)

Inflation rate (consumer prices): 3.3% (2001 est.)

Labor force: 10 million (2001 est.)

Labor force - by occupation: agriculture 75%-80%

Unemployment rate: 40% (2001 est.)

Budget: revenues: $2.91 billion expenditures: $2.97 billion, including
capital expenditures of $NA (2000 est.)

Industries: small-scale consumer goods (plastic, furniture, batteries,
textiles, soap