Kenya Economic Report 2009 on Building a Globally Competitive Economy

Abstract

This report analyses Kenya’s recent economic performance, prospects for the medium-term period 2008/09-2011, and national competitiveness. In addition, it benchmarks Kenya’s performance against comparator and selected newly industrialized countries. In accordance with the KIPPRA Act, it has been prepared in consultation with the Ministry of Planning, National Development and Vision 2030; Ministry of Finance; and the Central Bank of Kenya. Most of the data in the report covers the period up to September 2008 and has not taken into account the Kenya Economic Survey 2009. In 2007, the Kenyan economy continued to expand for the fifth consecutive year with a sustained expansion that marked a break from two decades of erratic growth and economic stagnation. Economic growth accelerated from 2.9 per cent in 2003 to 7.1 per cent in 2007. Before the political crisis beset the country following the disputed presidential elections of December 2007, the economy was projected to continue on the expansionary trend and to grow at 7.6 per cent in 2008. Indeed, the social and economic disruptions and damage arising from the political violence, coupled with an unfavourable international environment, have led to a downward revision of Kenya’s economic growth prospects to about 1.5-1.9 per cent in 2008.