Economy

Commercial news and information

The economy sustained its growth momentum that begun in 2003 to register a real gross domestic product (GDP) growth estimated to have expanded by 7.0 per cent in 2007compared to a revised growth of 6.4 per cent in 2006.

The renewed growth has mainly been on account of the economy’s resilience, improved business confidence, stable macro economic environment and a rebound of the global economy.
The overall inflation decreased from 14.5 per cent in 2006 to 9.8 per cent in 2007.

The gross national income (GNI) recorded a decelerated growth of 11.5 per cent in 2007 compared to a growth of 14.6 per cent in 2006 to stand at Ksh1, 801.3 billion.The major sources of growth for the year 2007 were transport and communication, taxes on products, wholesale and retail trade and manufacturing which contributed 23.3, 23.2, 15.7 and 8.8 respectively.

The contribution of agriculture as a source of GDP growth declined further with a drop from 17.4 per cent in 2006 to 8.1 per cent in 2007. Sectors that witnessed remarkable improvements include transport and communication, mining and quarrying, electricity and water.

The volume of trade increased by 13.9 per cent in 2007 compared to 9.8 per cent in 2006. Total import bill and total export earnings rose by 16.0 and 9.4 per cent, respectively.

Horticulture, tea, articles of apparel and clothing accessories and coffee continued to be the leading export earners, collectively accounting for 49.7 per cent of the total domestic export in 2007 earnings.
The overall balance of payments improved from a surplus of ksh 44, 446million in 2006 to a surplus of 63, 250 million in 2007 largely due to an increase in the foreign exchange reserves.

Major sectors:
Agriculture , Manufacturing, Services.

Major industries:
Agro-based and Food Processing, Textile and Clothing, Leather and Footwear, Petroleum Refining, Pharmaceuticals and Chemicals, Plastic Products, Automobile Accessories and Assembly, Packaging, Construction Materials, Household Products, Body Care Products, Printing Works

Major exports:
Tea, Horticulture, Cement, Soda Ash, Petroleum Products, Coffee, Fish and Fish Products, Iron and Steel, Leather and Footwear, Petroleum Refining, Pharmaceuticals and Chemicals, Tobacco, Plastics, Essential Oils and Services (Tourism, Transportation and Private Income).

Kenya Facts 2007
Population — 36 million
Real GDP growth — 7%
Per capita income — US$790.00
Average annual inflation — 9.8%
Literacy rate — 85.1%
Life expectancy at birth — 55.3 years
GDP — US$27.7 billion
Exchange Rate (KShs/US$) (annual average) — KShs. 64

Prepared by Kenya National Bureau of Statistics.

Domestic exports by Broad Economic Category (BEC) 2007
Food and Beverages — 39.92%
Industrial supplies (non-food) — 25.90%
Fuel and lubricants — 4.04%
Manufacturing and other capital equipment — 1.69%
Trans port equipment — 1.33%
Consumer goods not elsewhere specified — 27.12%