The Kenyan economy is East Africa’s largest with a GDP of US$ 97 billion and an estimated growth of 5.4 % in 2020. Kenya contributes approximately 50% of the region’s GDP.  Agriculture is the most important contributor to Kenya’s GDP at 24.9 %.  Tea and horticulture are the leading export earners for Kenya. Other main exports include: textile and apparels, coffee, tobacco products and minerals, animal or vegetable oils, iron and steel products, vegetable and fruit preparations, pharmaceuticals/ medicaments, and articles of plastics.

The Kenyan economy has experienced considerable growth in the past few years, driven by several key factors. Kenya’s economy is uniquely distinguished from many countries by the fact that it has for a long time been one of the most diversified with no oil, nor gas exports. The country enjoys some particular advantages: a reasonably well-educated labour force, a vital port that serves as an entry point for goods destined for countries in the East African and Central Africa interior, abundant wildlife and kilometres of attractive coastline and above all, a government that is committed to implementing business reforms.

Kenya’s position as the economic, commercial and logistical hub in Eastern Central Africa places the country as one of the best investment destinations globally. Foreign Direct Investments (FDI) has been on the rise and is strongest in the East Africa region. Additionally, the re-based Gross Domestic Product (GDP) figures of USD 58.1 Billion in 2014 elevated Kenya to a Lower Middle-Income Country, one of the largest economies in Sub-Saharan Africa and amongst the fastest growing in the world.

Other Milestone that put Kenya on an accelerated developmental pedestal include modernized railways, seaports, the airports and development of geothermal power stations. This is further complemented by Kenya being a member of both the East Africa Community (EAC) with a consumer market of 174 million and Common Market of Eastern and Southern Africa (COMESA) with a market of 560 million.

For more information on the overall economic outlook, and GDP growth of the Kenyan Economy click click www.knbs.or.ke.

Private sector-led economic growth has since the early 2000s, been Kenya’s Priority. The Government’s business-friendly stance has rolled over into Vision 2030, which sets development benchmarks for a number of priority sectors. The Government has also prioritised the Big 4 agenda in the medium term (2018/19 – 2022/23) focusing on manufacturing, food and nutrition security, affordable housing and universal health care. This has been complemented by the integration of the EAC and the establishment in 2005 of a customs union and a common market (2010). The operationalization of the African Continental Free Trade Area (AfCFTA) has created a market of more than 1.2 billion people; a GDP of USD 3.4 trillion and is expected to increase intra-African trade by 52.3% or USD 34.6 billion by 2022 .

For more information : Starting A Business in Kenya – Kenya Investment Authority