According to Trading Economics global macro models and analysts, Kenya’s GDP is predicted to reach $100.00 billion by the end of 2021. According to our econometric models, Kenya’s GDP will trend around 107.00 USD billion in 2022 and 110.00 USD billion in 2023 in the long run.
What accounts for Kenya’s low GDP?
Kenya is East Africa’s commercial, financial, and transportation hub. For the past eight years, Kenya’s real GDP growth has averaged over 5%. Kenya has been classified as a lower middle income country since 2014, when its per capita GDP exceeded a World Bank criterion. Kenya’s economic and development trajectory could be jeopardized by poor administration and corruption, despite the country’s expanding entrepreneurial middle class and stable growth. Although accurate figures are difficult to come by, unemployment and underemployment are exceedingly prevalent, maybe approaching 40% of the population. Agriculture…
Is Kenya wealthy or impoverished?
Kenya’s economy is classified as lower-middle income. Despite having the largest and most developed economy in eastern and central Africa, 36.1 percent of Kenya’s population (2015/2016) lives below the international poverty line. Economic inequity, government corruption, and health issues are the main causes of extreme poverty. Poverty, on the other hand, exacerbates these issues. Fortunately, Kenya’s government has made numerous efforts to combat poverty, and it has received significant assistance from international organizations. According to a recent MPI index, the occurrence rate of poverty has consistently reduced. However, long-term efforts are still required in Kenya to eradicate poverty.
In Kenya, how is GDP calculated?
GDP growth rate in percentage terms at market prices based on constant local currency. The aggregates are calculated using constant US dollars. GDP is calculated as the total gross value added by all resident producers in the economy, plus any product taxes, minus any subsidies not included in the product value. It is estimated without taking into account depreciation of manufactured assets or natural resource depletion and degradation.
How is the Kenyan economy doing?
NAIROBI, Kenya, 14 December 2021 Kenya’s economy has shown resiliency in the aftermath of the COVID-19 pandemic, with output in the first half of the year exceeding pre-pandemic levels. The country’s gross domestic product (GDP) is predicted to expand by 5% in 2021, making it one of the fastest recovering countries in Sub-Saharan Africa.
Overall economic growth is predicted to be strong in 2022-23, at 4.9 percent per year, similar to pre-pandemic levels (5 percent average annual growth from 2010 to 2019). Growth has been bolstered by rebounds in industry and, particularly, services, according to the 24th edition of the Kenya Economic Update, “From Recovery to Better Jobs.” However, after a particularly excellent performance in 2020, agricultural output declined by 0.5 percent in the first half of 2021, owing in part to below-average rains. A comeback in private consumption has aided demand-side recovery, which has been aided by rising employment and household incomes.
Kenya’s economy has continued to adjust to the pandemic and its attendant restrictions. Through most of 2021, a mix of containment measures, such as a nightly curfew, was in place, but more economically disruptive measures, such as lockdowns and travel restrictions, were phased out, limiting the impact on economic activity. The vaccination distribution, which started slowly owing to supply difficulties, has accelerated as more vaccine supplies have arrived, notably since September. Through the third quarter of 2021, this has aided economic recovery and growth.
Kenya had received a total of 16,201,670 vaccines as of December 5, 2021, with 7,583,134 vaccines administered. While vaccine acceptability appears to be strong, the government’s goal of fully inoculating the adult population of around 30 million people by the end of 2022 remains a long way off. About 10% of adults (2.9 million people) had had their entire vaccination by December 6, 2021, while another 16% (4.9 million people) had taken their first dose.
In the medium term, the research predicts strong growth. This forecast takes into account the fact that while certain sectors, such as education, have recovered quickly, others, such as foreign tourism, have just recovered partially and will take much longer to recover. The expected continued recovery of hotels and restaurants, trade, transportation, and other services is contingent on significant progress in immunization to help avoid fresh waves of infections and accompanying containment measures.
“Recent economic performance has been excellent, and the outlook is positive,” said Alex Sienaert, Senior Economist for Kenya. “However, the future path of the epidemic remains a key source of uncertainty in Kenya, as it does everywhere,” he added. “It is vital that Kenya continues to undertake medium-term fiscal consolidation plans to promote further recovery, minimize debt distress risks, and reestablish space for social and development investment.”
Aside from pandemic-related dangers, a second major domestic risk factor is the current drought, which is devastating areas of the country and is already creating tremendous hardship. If the drought worsens or spreads, it will have a negative impact on the economy in the short term. The key external risks are slower global growth, higher-than-expected energy prices, and tighter external financing conditions.
Accelerating job creation will be critical as Kenya strives for an inclusive and resilient economic recovery. This report’s special topic expands on the labor market study presented in the last Kenya Economic Update (KEU23), focusing on business dynamics and job creation. The country’s jobs and economic transformation (JET) strategy is vital to creating a durable recovery from the COVID-19 crisis and generating good jobs for Kenya’s rising youth population, according to a previous report. Kenya’s fast-growing workforce will be able to participate in and drive JET if continued investment in human capital and social protection is made.
In Africa, how wealthy is Kenya?
The following is a list of Kenya’s wealthiest individuals. It is based on Forbes magazine’s yearly estimate of wealth and assets, which is compiled and published every year.
Kenya’s economy is the largest in the East African Community and the third largest in Sub-Saharan Africa, with a GDP of US$120.87 billion in 2020, up from US$70.539 billion in 2017. Only South Africa and Nigeria are ahead of Kenya in terms of GDP in Sub-Saharan Africa.
Is Tanzania more prosperous than Kenya?
Kenya’s travel infrastructure is better and more reliable than Tanzania’s since Kenya is a wealthier country. There are more hotels and guesthouses, it is easy to convert foreign currency to shillings because all major banks offer this service, and public transit is plentiful.
Is Kenya a third-world country?
Kenya is, indeed, a third-world country. While Kenya has recently been upgraded to lower-middle-income status, not all Kenyans have benefited from the increased prosperity.
Why is Kenya so well-known?
Kenya is an East African country known for its beautiful scenery and extensive animal reserves. For many years, its Indian Ocean coast supplied historically important ports through which products from Arabian and Asian traders entered the continent. Along that coast, which offers some of Africa’s best beaches, are mostly Muslim Swahili cities like Mombasa, a historic capital that has contributed much to the country’s musical and culinary history. Inland, the populated highlands are known for their tea plantations, which were an important source of income during the British colonial era, as well as a diverse range of animal species, including lions, elephants, cheetahs, rhinoceroses, and hippopotamuses. The western provinces of Kenya are forested, with lakes and rivers, whereas a small area of the north is arid and semidesert. Kenya’s unique wildlife and scenic environment attract a considerable number of European and North American tourists, and tourism is a significant contributor to the country’s economy.
Is Kenya’s economy in good shape?
Kenya was one of Africa’s fastest-growing economies before the COVID-19 pandemic, with yearly average growth of 5.9% between 2010 and 2018. Kenya has recently achieved lower-middle income status, with a GDP of $95 billion, and has effectively developed a broad and dynamic economy. It also functions as a gateway to the greater East African market. Kenya, on the other hand, continues to face substantial obstacles in achieving sustainable and equitable economic growth, which have been compounded by the economic disruptions caused by COVID-19, as well as long-standing issues such as corruption and economic inequality.
Since independence, two-thirds of Kenya’s population has lived in poverty, earning less than $3.20 a day. As a result, the majority of Kenyans, especially women and girls, are chronically vulnerable. There is a significant disparity between rich and poor Kenyans, with nearly 70% of Kenyan families suffering from chronic malnutrition, food insecurity, and avoidable diseases. Many Kenyans face economic inequity, while a small group of people profit from their labor, resources, and opportunity.
To improve economic development for all Kenyans, USAID collaborates with the Kenyan government, the private sector, and the Kenyan people. Every Kenyan may benefit from Kenya’s progress, build their business, feed their families, and contribute to Kenya’s future, according to our vision. To accomplish this, we collaborate with Kenyan and American private sector organizations to deliver development projects that are co-designed with Kenyans. These groups work directly with Kenya’s private sector, communities, and county and national governments to ensure a level playing field for enterprises and people.
Our combined efforts have enhanced Kenya’s economic prospects over the last few years. We’ve come up with:
- Reduced the time and expense of doing business in Kenya, including a 6 day reduction in cross-border transportation wait times.
- Through the African Growth and Opportunity Act (AGOA), the Kenyan private sector was able to export over $600 million, making the United States Kenya’s second largest export market.
- Over $180 million in private sector investments were leveraged for better water and food security.
Agriculture Market Systems
Kenya’s agriculture industry is the backbone of the economy, accounting for over 33% of the country’s GDP (GDP). More over 40% of the total population works in agriculture, while 70% of the rural population works in agriculture. Agriculture production, on the other hand, has been stagnant in recent years; value addition is minimal, and many smallholder farmers remain impoverished due to a lack of access to competitive markets, financing, and new technology. Through private sector engagement with self-reliant rural communities, we aim to boost agriculture-led economic growth, improve nutrition outcomes, expand county government capacity, and build sustainable market systems.
Trade
USAID collaborates with Kenya’s government and the corporate sector to expand trade between East African countries and globally. We encourage two-way trade and investment between Kenya and the United States, as well as assisting Kenyan and American businesses in maximizing trade opportunities afforded by the African Growth and Opportunity Act (AGOA) and other initiatives. USAID supports a variety of trade-related initiatives, including capacity building, creating an enabling environment for the private sector, improved market access, increased food security, and export promotion.
Access to Finance and Investment
Many Kenyan businesses, particularly small and medium-sized businesses, need access to capital to expand. USAID is collaborating closely with the Kenyan government and the private sector in Kenya and the United States to stimulate more investment in Kenyan companies and the banking sector to expand services to Kenyans who are underserved, with a special focus on the agricultural sector. We seek out possibilities and work with banks and other financial institutions to develop financial products that are tailored to underprivileged borrowers. In addition, we support foreign direct investments that promote inclusive growth, job creation, and increased productivity in Kenya’s economy. Investment environment changes, investment pipeline development, and transaction consulting services are all part of our activity.
Energy Sector
With a goal of universal access by 2022, the Kenyan government has a vision to expand the supply of and access to dependable, affordable, and sustainable power. With an active private sector, a strong government power utility, and plentiful renewable energy resources, particularly geothermal, wind, and solar, Kenya has one of the most developed power industries in Sub-Saharan Africa. Strong economic growth necessitates the use of long-term energy sources. To support Kenya’s economic development, USAID’s Power Africa effort is improving access to clean, adequate, dependable, and cost-effective energy while also offering opportunities for more private sector participation. Through new small grid installations and solar residential systems, the Power Africa program has enabled nearly one million Kenyans get access to power.