This paper mainly analyses the drivers of economic growth in kenya and the linkages. Power transmission system improvement project country. This paper provides a critical appraisal of development of education system in kenya. European journal of business, economics and accountancy vol. Led by a recovery in agriculture, a rebound in kenyas economic. Real gdp growth rate of kenya and its regional peers %, 202016f source. Kenya economic update world bank documents world bank group.
Kenyas main source of information for innovation is customer feedback and the internet 90 figure 4. In 2009, kenya s gross domestic product gdp was 29. Twothirds of kenyans do not have access to basic financial services such as banking accounts. Hence, it is a complex problem to answer about the measuring of economic development.
Kenya power transmission system improvement project. Kenya is the largest food and agricultural products importer in east africa. Kenya s economic growth rate has been low since independence. After a strong rebound in 2018, kenyas economic growth has. Since a person without basic literacy and numeracy skills. It aims to promote research in all aspects of economic development and international trade on both a long term and a short term basis. Political, social and economic developments and challenges in kenya from 1960 to 2010 mbogo wa wambui essay history africa publish your bachelors or masters thesis, dissertation, term paper or essay. The impact of ethnic conflict on economic development. Generally, economic development is a process of change over a long period of time. The development of the kenya human development report khdr 20 has come a long way, and this involved many individuals and key institutions. Press% 20release%20%20meeting%20of%20september%2025,%202018.
The kihbs is designed to be nationally representative, that is, the information collected from the survey households will be used to estimate the characteristics of all households in kenya. Economic development of kenya, tourism industry impact. Here we will look at the role of regional economic organizations to kenyas development. The kenya participatory poverty assessments suggest that income poverty is not necessarily the aspect of. Major industries include agriculture, forestry, fishing, mining, manufacturing, energy, tourism and financial services. It was the first national longterm development vision and its aim was to transform kenya into a newly industrialising, middleincome country providing a high quality of life to all its citizens by 2030 in a clean and secure environment.
Kenya has solid managerial capacity but still below the frontier. Impact of official development assistance on economic. The economic development of kenya english abstract. World bank, 2016 kenyas growth trajectory has been underpinned by various sectors, ranging from agriculture and. But life expectancy in kenya today is the same as it was in the mid1980s, having. Kenyas social, economic, political and environmental development achievements made in. The policy framework paper prepared by the government of kenya in collaboration with the imf and the world bank february 16, 1996 i. The application is used by two thirds of the kenyan population and allows the transfer of the equivalent of 25 % of the gdp. Hear will discuss only a number of the factors that have undermined economic growth in kenya.
Kenya shows the highest public expenditure on education in east africa at 17. Moreover, education is strongly linked to the notion of empowerment. Socioeconomic status and participatory development in kenya. Kalio, department of economics, egerton university, kenya, john mutenyo, school. Promoting local economic development strategic planning volume 1. It is commonly assumed that education has an important positive effect on economic growth, but to date the evidence for this assumption has been surprisingly weak. Apr 24, 2007 kenya has long depended on external assistance for development financing, but the extent of that dependence has varied with domestic conditions. Life expectancy has risen from 48 years in 1963 to 60 in 2011, above the 56year average for subsaharan africa. Nairobi ministry of industry, trade and enterprise development.
To this end, credit organises seminar series on development economics. Smoke 1993 asserts that over the past 30 years, poverty has been on the rise in kenya. Small businesses in kenya are challenged by the lack of essential business support services, especially financial services. The ministry of planning and national development kenya. Development in kenya ojala daphen otieno moi university, p.
Dec 03, 2011 role of agriculture in economic development of kenya agriculture is the art and business of cultivating soil, producing crops and raising livestock. Reflecting improved rains, better business sentiment and easing of political uncertainty, real gdp growth is estimated to rebound from 4. Kenyas economy also serves as an anchor in the region, contributing to the progressive development of the east african community. All three countries view regional integration as an essential plank of their development strategy and an important ingredient in. Kirori senior lecturer and head of accounting and finance department faculty of commerce the catholic university of eastern africa abstract the rural sector is a major factor in kenyas productive sectors referred to in the statistical. Education of any country is an important tool for the developmental process of that particular nation. This was the fastest expansion in three quarters, as activity in the allimportant agricultural sector improved significantly 4% vs 2. Whereas in the mid1960s kenya depended on external sources for 82% of its total development resources, by. Since a person without basic literacy and numeracy skills is in a difficult situation to master everyday life, the lack of basic education has always been accepted as one of the major components of any multidimensional concept of poverty. Rapid increases in inflation could reduce economic growth and worsen the poverty levels of the citizens of kenya. Nov 21, 2012 factors that undermine economic development in kenya there are several factors that have lead to the slow economic growth in since independence. The number of people unemployed is currently more than two million and at least. Kenya has long depended on external assistance for development financing, but the extent of that dependence has varied with domestic conditions. Factors that undermine economic development in kenya.
This growth has been deemed low yet 30% of the budget goes to education. Kenyas social development proposals and challenges. The kenya integrated household budget survey kihbs is being carried out by the kenya national l bureau of statistics. Since 1963, kenya has pursued development that has focused on eradicating hunger, illiteracy and diseases. O box 390030100, eldoret, kenya abstract the government of kenya spends 30% of its budget on education.
Kenya enjoys the reputation of a country unabashedly committed to capitalist development, and one that has enjoyed relatively high rates of economic growth. Some of the indicators, especially the human poverty index hpi, human development index hdi, genderrelated development index gdi and the gender empowerment measure gem, were introduced by the undp in its 1995 and 1997 human development reports. As it stands now, kenya is the dominant economy in the east african. According to a world bank report in 2005, stated that about two thirds of the world population poor are mainly concentrated in rural areas, which are predominantly agricultureoriented areas. Whereas in the mid1960s kenya depended on external sources for 82% of its total development resources, by the early 1970s the proportion had fallen to only 45%. This section explains kenyas economic growth performance since 2000, updating an earlier study that covered the period from the 1960s to the 1990s mwega and ndungu 2008. Box, 30197, nairobi, kenya misaro josephine department of sociology and social work university of nairobi p. Kenya public disclosure authorized 103822 public disclosure authorized public disclosure authorized public disclosure authorized. We will look at kenyas policynational interest within the east african region as well as her relations with uganda, kenyas most important trading partner. Total factor productivity, growth accounting aquilars m. Five years after launching a series of programs and pilot projects to.
Kenya, where poor police services are eroding the states capacity to protect people and property, thereby limiting the countrys efforts in relation to economic development and poverty reduction. A descriptive analysis over 19702001 period gabriel n. The economy has been growing at a rate of 25% for the last 10 years after initial growth rates of between 0. Pdf economic development of kenya, tourism industry impact. Political, social and economic developments and challenges in kenya from 1960 to 2010 mbogo wa wambui essay history africa publish your bachelors or masters thesis, dissertation, term paper or. In 2011 kenyas economy recorded checked growth, primarily driven by financial intermediation, tourism, construction and agriculture sectors. Political, social and economic developments and challenges. Political, social and economic developments and challenges in. Financial development, economic growth and poverty in kenya. Socioeconomic status and participatory development in kenya kariuki david kinyanjui department of sociology and social work university of nairobi p. Free download pdf from this direct link economic survey 2019 has been tabled in the parliament by finance minister nirmala sitharaman. Following 2014s gdp rebasing, the country is now east africas largest economy and. Therefore, i would like to thank them immensely for their support and contributions on behalf of the ministry and national technical committee ntc. Nairobi china has provided financial support to kenya because it is confident with kenyas bright future in economic development, a chinese diplomat said on friday.
Although kenya is currently in a stage of growth, there are still several factors inhibiting economic. The development of ict is remarkable, with the best known example of mpesa, a mobile payment application, now leader in this field. Due to the prominent role of agriculture in kenyas economy, usaids activities to strenthen the agricultural sector play an important role in reducing poverty and. Joseph akuma misati department of sociology maasai mara university p. In kenya economic development is dependent on agricultural improvement. Josephx506018220 a research paper submitted to the school of economics in partial fulfillment of the requirements for the award of the degree of master of arts in economics of the university of nairobi. Organization wto and belong to other rtaskenya and uganda are members of comesa, and tanzania is a member of sadc see fig. Promoting local economic development through strategic planning. While there is scope for expansion of industrial activities and tourism, kenyas economy is essentially agricultural and the report accords the highest priority to agricultural development over the next few years. It was the first national longterm development vision and its aim was to transform kenya into a newly. Factors that undermine economic development in kenya there are several factors that have lead to the slow economic growth in since independence.
A history of hindrances and limiting factors christopher nulty 09 the beginnings of this paper are rooted in kibera, kenya. This volume is a product of the staff of the international bank for reconstruction and development the world bank. All three countries view regional integration as an essential plank of their development strategy and an important ingredient in stimulating increased trade and investment. Kenya african economic outlook african development bank. This act may be cited as the special economic zones act, 2015 and shall come into operation upon the explry of ninety days from the darc of its publication. During the 1980s, it became obvious that this employment policy was financially. Doc economic development of kenya abdirizak m diis. Edition of the kenya economic update seeks to contribute to this discussion. Located in east africa and sharing its borders with countries including ethiopia, south sudan. Promoting local economic development through strategic. Review of kenya vision 2030 first mediumterm plan, 20082012 ezekiel mbitha mwenzwa department of social sciences karatina university p. Measurement of economic development economics discussion. Impact of official development assistance on economic growth in kenya by veledinah m.
Kirori senior lecturer and head of accounting and finance department faculty of commerce. Though there are several criteria or principles to measure the economic development, yet none provides a satisfactory and universally acceptable index of economic development. Impact of official development assistance on economic growth. Josephx506018220 a research paper submitted to the school of economics in partial fulfillment of the requirements for the award of the degree of master. Kenya faces a major challenge in reducing unemployment and poverty. Role of educational investment on economic growth and. Quick guide 92117266 series the local economic development series promoting local economic development through strategic planning united nations human settlements volume 1. Role of agriculture in economic development of kenya agriculture is the art and business of cultivating soil, producing crops and raising livestock.
Role of agriculture in economic development of kenya. The economic development of kenya english world bank. Kenya s social, economic, political and environmental development achievements made in the last 40 years and specifically the period between 1992 and present is outlined, as well as challenges facing development. Kenyas economic outlook for the coming years looks robust, despite some challenges, such as a trade deficit, rising debt and global headwinds. The economy of kenya is a marketbased economy with a liberalised external trade system and a few state enterprises. Kenya gdp annual growth rate 20042019 data 20202022. The centre for research in economic development and international trade is based in the school of economics at the university of nottingham. Following the successful implementation of the economic recovery strategy for wealth and employment creation 200307, kenya vision 2030 was launched by the grand coalition government in july 2008.
Dec 12, 20 life expectancy has risen from 48 years in 1963 to 60 in 2011, above the 56year average for subsaharan africa. In this stocktaking report, kenyas historical pursuit of sustainable development is traced and put in perspective from 1963 when kenya attained independence to present but with emphasis on the period between 1992 and 2012, which is the focus of this report. Global economic growth remains strong but is expected to level off in the. While there is scope for expansion of industrial activities and tourism, kenya s economy is essentially agricultural and the report accords the highest priority to agricultural development over the next few years.