Economic Scenario in Kenya: A Study of Selected Sectors

Abstract

Kenya’s economy was considered stable and strong in East Africa till 2008 when its growth was adversely affected by the aftermath of general election in December 2007. According to the Central Bank of Kenya, the economic growth in the country recorded spectacular figures from 0.5% in 2002 to 7.1% in 2007. In 2008, it slumped to 1.7% and the subdue growth reflected adverse aftermath-effects of post election crisis in the first quarter of 2008 and global financial crisis in the last quarter of 2008 among other causes which decreased production level and low demand of Kenya’s exports. In 2009 there was modest improvement with 2.6% growth. This paper will examine the growth of Kenyan economy and evaluate the contribution of some selected sectors which lead to attractive economic growth of the country in the past few years. The result confirms that though Agriculture and tourism were the most affected in 2008 crisis, Agriculture, Transport and communication and tourism have been major contributors to the economic growth in the country. KeyWords: Economy, Kenya, GDP, Global Crisis

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