Kenya's Economy

The positive results of British colonialism in Kenya included a reasonable transport infrastructure and a successful agricultural economy with good land-use practices. The country could feed itself, and it exported premium-quality coffee and tea.

Mining has played a minor role in Kenya's economy. The country has limited reserves of gold, ruby, fluorspar, soda ash and titanium, though a controversial project to mine titanium was derailed in 2003.

The history of Kenya's economy since independence is a troubled one. Probably the major impediment to Kenya's economic development has been the 400% growth in its population. Other problems include government laxity in curbing corruption and enforcing market reforms, extreme floods and droughts, and a lull in investor confidence.

Since 2003 some progress has been made in eliminating corruption and encouraging financial support. GDP grew more than 5% in 2005, but a consistent growth rate of between 5% and 7% will be needed to have an impact on poverty.

Today Kenya's economy relies mainly on the export of tea, coffee, flowers and vegetables. These industries earn more than 60% of Kenya's foreign exchange, and employ 80% of its workforce.

Tourism is another major contributor while Kenya has a burgeoning informal sector. The jua kali (hot sun) traders work at roadsides, selling everything from welding services to potted plants.

Self-help groups have also gained popularity, teaching handiwork courses that are economically empowering, particularly for women.

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