Kenya's Economy & Money

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.

Money

The unit of currency is the Kenya Shilling (KSh), which is divided into 100 cents. Notes are in KSh1000, 500, 200, 100, 50, 20 and 10. Coins are KSH1, and 50, 10 and 5 cents.

The exchange rate is in your favour. Generally, you will find that fine cuisine, wine and entertainment cost a fraction of the tariff charged by equivalent establishments elsewhere in the world.

The price of a beer starts at KSh35. A traditional meal will cost about KSh150, while you can expect to pay about KSh500-1000 for a more classy meal. Petrol costs about KSh35 per litre. A roll of 36-exposure print film will cost about KSh200.

Banking hours are as follows:

Monday to Friday: 09h00 - 14h00 First Saturday of the month: 09h00 - 11h00

Banks in Mombasa and the coastal areas open and close half an hour earlier while banks and bureaux de change at international airports are open 24 hours a day.

National and international banks have branches in Mombasa, Nairobi, Kisumu, Thika, Eldoret, Kericho and Nyeri and in most other major towns.

All major credit cards (Mastercard, Visa, Diners Club and American Express) are widely accepted.

Tipping is not required but, unlike in some other African countries, is not forbidden either. Most hotels include a 10% service charge on the bill. If the service charge has not been included a KSh100 tip is usual, although the amount is entirely at the visitor's discretion.

Bear in mind that salaries in East Africa tend to be very low, and that people working in service industries rely on tips to supplement their wages.

On safari you should tip your driver, cook and guide. These people do not earn very much so you should tip as much as you feel you can. KSh150 per employee per day is about right, but of course this depends on you and how happy you were with the service.

Enquire now |  Add to my enquiry