Kenya Economy Infographic 2017: Centre Stage
31 May 2017
As the largest economy in the EAC, Kenya is a major player in both the region and sub-Saharan Africa as a whole. Over the past few decades, its market has transformed from being largely agrarian into one of the most diversified and innovative on the continent. It was sub-Saharan Africa’s fifth-largest economy in 2015, ranked 11th in inbound foreign direct investment and is one of the few countries in Africa that is not primarily dependent on extractive revenues.
- Economy: Bonded Together - After 10 years of expansionary policy, in 2016 Kenya underscored its commitment to reducing its fiscal deficit by 3% of GDP within two years. It aims to do this by reducing spending on all types of recurring expenses, and increasing spending on developmental projects that improve economic prospects.
- Capital Markets: Strong fundamentals - Listed equities are deriving benefits from the strong performance of several key sectors, including fast-moving consumer goods and telecoms. However, the biggest driver on the Nairobi Securities Exchange is the banking industry, which comprises a large number of the biggest blue chips firms by capitalisation.
- ICT: Access for All - ICT plays a central role in Kenya’s economy, spurring infrastructure investment, early adoption of nextgeneration broadband and rapid mobile money growth. The industry is being driven by rising demand for data services and smartphones.
- Energy & Mining: Supply & Demand - Kenya’s energy transportation and logistics infrastructure position the country as a strategic gateway for its inland neighbours, as evidenced by the volume of re-exports. That may continue to grow in the years to come as it looks to develop new pipelines and ports to handle both domestic production, and exports from Uganda and South Sudan.