Policy Brief No. 02 of 2014 on Kenya now a Middle Income Economy but Wanjiku Still Crying

Abstract

Kenya has rebased its economy to make the measure of GDP more inclusive in terms of productive sectors and industrial output. The rebasing included changing the base year from 2001 to 2009 and also incorporating new information sourced from several surveys, censuses and recent administrative records. The new statistics raise Kenya's profile as a credit-worthy economy. Being designated a middle income economy comes with a psychological boost for investors and its gives Kenyans a boost towards self-esteem and freedom from servitude. Ultimately, the positive results of rebased economic statistics can be felt only if proper investment policies are instituted and subsequently implemented.