Kenyan history dates to the Stone Age era, making it one of the most extensive and complete records of human cultural development worldwide. This is due to the country’s conducive environmental factors for human survival and growth. Kenya gained independence in 1963 from the British colony, after which it stimulated its economy through public investment, agricultural production, and industrial investment. The gross domestic product (GDP) is 98 billion US dollars standing for 0.09 percent of the world market share. The economy expanded, attracting foreign investors and making the country a business hub in the East African economy. This paper will deeply analyze the economy of Kenya from its historical background to the modern-day nation.
The labor force in Kenya comprises 61.1 percent of agriculture, and 6.7 percent of the industry, while other services constitute 32.2 percent. More than 20 million people are working in Kenya, with an employment to-population ratio of 64 and a labor force participation of 68.8 percent (Kamau). The country’s talents are rooted in athletics, and have more marathoners than any other African nation. The people of Kenya are experts in games and sports and manufacturing and agricultural sectors that thrive throughout the year.
According to the Kenya National Bureaus of Statistics, the unemployment rate will decrease to 7.20 percent in 2021 from the previous 10.40. This change is attributed to political stability experienced in the country, promoting economic growth. The annual inflation rate in Kenya decreased to 6.45 percent in October 2021 from the earlier 6.91 percent increase in August (Kamau). The inflation slowed for transport prices, housing, and utilities, while the inflation for food and beverages remained unchanged for the last six months.
The country is actively growing due to the educated workforce and active service, which usually have lower barriers to economic entry. In addition, the financial stability experience encourages entrepreneurs and foreign investors to put extra investments across the country. In the past decade, Kenya has developed a transport system with the newly completed standard gauge train (SGR) and the Nairobi expressway expected to strengthen the economy.
The top natural resource is limestone, soda ash, wildlife, forest, and water bodies. The wildlife makes Kenya the most visited country in Africa due to the presence of the Big Five animals. The major export are coffee, tea, and horticultural products, while its main imports to the country are machinery, motor vehicles, electronics, drugs, petroleum, iron, and steel. The largest importer is China, followed by India and Japan. The Kenyan’s comparative advantage lies in the high education and training, goods market efficiency, and tea export. The country is strategically positioned with working links to foreign countries, making it East Africa’s most prominent service economy.
Economic growth has been changed by technology to a significant level. In communication, nine out of 10 people own a mobile making it one of the fastest-growing economies in Africa. Innovations such as mobile money payments, internet connectivity, and digital land registration have primarily impacted the Kenyan economy. Entrepreneurship has affected the growth of the Kenyan economy in various sectors. An example is Safaricom, which has placed the country on the global map in mobile money transactions and payments. Technology has progressed every sector in imaginable ways by creating tools and resources which have placed vital information in the hands of Kenyans. Technology has greatly impacted education, banking, media, agriculture, transport, and other economic sectors.
Work Cited
Kamau, Maurice. “Economic Survey 2021 Highlights.” Kenya National Bureau of Statistics. 2021. Web.