The Economic Development Of Kenya

1251 WordsMar 16, 20176 Pages
Kenya is the regional leader in East Africa and this position is expected to be a constant over time. The economy is fairly diversified with a strong and well developed services sector. The financial services industry in particular is well developed and established, moreso the country is considered East and Central Africa’s hub for financial services. Kenya is also the preferred entry point for companies wishing to expand further in the region. Moreover, East Africa’s largest economy is one of the most innovative on the African continent, which bodes well for future economic development. The country is a key investor within the East African commmunity, while the largest chunk of intraregional trade is due to Kenya. However, economic…show more content…
The country has been able to take advantage of the region’s positive prospects and should continue to do so in coming years. The country has good prospects for economic growth and foreign direct investment (FDI), import cover levels are comfortable, and political risk is relatively low. Tanzania’s notable economic expansion in recent years has been facilitated by open market policies related to global commerce. The financial sector and the investment framework are relatively well developed for the region. However, these strengths are offset by weak socioeconomic indicators, structurally large current account and budgetdeficits, and rising debt levels. Growth in the agricultural sector has been driven by increased production of major food crops such as maize, sorghum and cassava, but the sector’s performance remains below potential. In turn, the services and industrial sectors have shown strong growth. The nascent banking sector and expanding telecommunications sector are key drivers behind services growth, while construction, electricity generation, manufacturing and mining are salient sub-sectors in industrial activity. Looking ahead, the banking and telecommunication sectors will continue to support services growth, while increased electricity generation capacity will benefit the expansion of the manufacturing

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