Economic Overview

The Kenyan economy, East Africa's largest, has experienced considerable growth in the past few years, driven by several key factors The country enjoys some particular advantages: a reasonably well-educated labour force, a vital port that serves as an entry point for goods destined for countries in the East African and Central Africa interior, abundant wildlife and miles of attractive coastline and a government that is committed to implementing business reforms.

Kenya's agricultural development remains the most important contributor to GDP with horticultural industry of mainly high quality cut flowers being among the leading export products. Kenya's transport and communications infrastructure are of a middling quality, although recent developments should bring about more vigorous competition and better services in the medium and long term. Kenya is part of the East African Community (EAC), of which Tanzania, Uganda, Rwanda and Burundi are the other members. The EAC is working toward a closer integration and this is likely to have far-reaching, positive consequences for Kenya's economy. Kenya is also a member of COMESA, the 20 member Common Market for East and Southern Africa, opening up the way for trade across Eastern and Southern Africa for nearly 400 million people which is about half of Africa's total population.

 The Development of the EAC presents opportunities, as well as challenges for Kenya. Kenya's economy is considerably larger than those of Uganda and Tanzania, not to mention Burundi and Rwanda, and it has been necessary for the government to make tax concessions so that the customs union, in effect from January 1, 2005 does not unfairly disadvantage the other members.