ECONOMIC SURVEY OF KENYA

ASSIGNMENT

ECONOMIC SURVEY OF KENYA

Submitted By :-

GROUP 3 1. Aashvin Kishore 2. Avneesh Asija 3. Jasmeet Singh 4. Ritika Gupta 5. Shubham Shresth 6. Vineet Jain

KENYA

Gross Domestic Product of Kenya

Current GDP (2012) : US $37.23 billion

Year

GDP (Kenyan Shillings)(in Billions)

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

823.234 814.342 813.570 834.163 869.923 904.816 906.807 937.008 959.561 965.312 1010.935 1013.963 1042.200 1090.310 1155.516 1228.610 1314.528 1334.604 1371.106 1450.142 1513.608 1584.747

Gross Domestic Product at Constant Prices

1800 1600 1400 1200 1000 800 600 400 200 0 Kenyan Shilling (Billions)

Year

Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP (in US$) (in Billions)
27.005 27.347 27.925 29.235 31.123 32.988 33.644 35.158 36.534 37.548 40.211 40.985 43.012 44.913 47.955 52.636 57.951 60.141 62.324 66.797 71.207 75.888

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP

80 70 60 50 40 30 20 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Gross domestic product based on purchasingpower-parity (PPP) valuation of country GDP

Year
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GDP Growth, at constant prices (in percentage)

1.339 -1.08 -0.095 2.531 4.287 4.011 0.22 3.33 2.407 0.599 4.726 0.299 2.785 4.616 5.981 6.326 6.993 1.527 2.735 5.764 4.377 4.7

Gross domestic product, constant prices

8

Gross domestic product, constant prices

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -1 -2

Human Development Index

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development. It was created by the Pakistani economist Mahbubul Haq and the Indian economist Amartya Sen in 1990 and was published by the United Nations Development Programme.

Human Development Index of Kenya is 0.519 Life Expentancy at Birth is 57.7 (years) Mean years of schooling (for adults) is 7.0 GNI per capita in PPP terms is $1541

Year 2012 2011 2010 2009 2008 2007 2006 2005 2000

Kenya HDI 0.519 0.515 0.511 0.505 0.495 0.491 0.480 0.472 0.447

Number of Indians in the Kenyan Society

Size of Indian population in Kenya: There are over 75,000 people of Indian origin including Indian passport holders. The Indian population is about 0.36% of the total Kenyan population. Out of these about 75% are Kenyan citizens, 10% are British Overseas citizens and about 15% are Indian citizens. Indians comfortably settled after a lot of hardship, when they first came to Kenya they were engaged in agriculture and business but the new generation is inclined towards education and are engaged in professions like engineers, marketing, accountants, technicians, teaching etc. The Indians in Kenya have migrated from different parts of India, they mainly belong to Punjab and Gujarat region but in the recent times many Indians from Southern part of India like Andhra Pradesh and Tamil Nadu have migrated to Kenya. Gujarati community is the major community in Kenya when compared to others but other communities such as Keralities etc are growing faster than the Gujarati community.

Top 10 Import Commodities of Kenya

S. No.

Name of Commodities
2008

Value (million US$)

2009 2010

1.

Petroleum oils, other than crude Petroleum oils and oils obtained from bituminous minerals Palm oil and its fractions

1769.6

1399

1646.3

2.

1176.5

705.8

915.2

3.

458.8

332.6

452.4

4.

Electrical apparatus for line telephony Motor Cars

319.3

343.1

520

5.

311.9

296.0

345.5

6.

Other aircrafts, spacecrafts Flat-rolled products of iron or non-alloy steel Medicaments

157.4

305.4

453.2

7.

315.5

213.6

269

8.

236.5

233.7

269.9

9.

Maize

96.3

439.6

69

10.

Wheat and Meslin

201.3

179.3

219.7

Top 10 Export Commodities of Kenya

S. No.

Name of Commodities 2008

Value (million US$) 2009 2010

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Tea Cut flowers and flowers buds Coffee Petroleum oils, other than crude Other vegetables Carbonates Portland Cement, aluminous cement Cigars, cheroots, cigarillos Flat-rolled products of iron or non-alloy steel Articles for the conveyance or packing of goods

931.3 446.6 152 173.3 206.4 193.9 117.3 91.4 99.2 69.5

894.5 421.8 201.3 177.9 175.6 109.5 104.5 85.8 69.7 59.8

1163.2 396.2 207 205.6 150.3 95.5 94.6 92.7 77.3 68.4

Kenyas Top 5 Exports to India

Commodities

INORGANIC CHEMICALS; ORGANIC OR INORGANIC COMPOUNDS OF PRECIOUS METALS, OF RARE-EARTH METALS, OR RADI. ELEM. OR OF ISOTOPES.

COFFEE, TEA, MATE AND SPICES.

RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND LEATHER

EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS.

SALT; SULPHUR; EARTHS AND STONE; PLASTERING MATERIALS, LIME AND CEMENT.

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

9.07 9.21 11 13.98 15.71 15.52 23.77 29.94 22.52 22.97 38.29 36.79

3.46 3.79 4.02 6.42 7.09 6.14 7.31 9.3 10.79 14.08 11.73 14.04

3.08 2.88 5.1 7.07 5.83 7.29 6.49 7.15 8.17 11.22 13.04 12.44

2.25 5.96 3.08 0.28 0.63 2 13.61 1.05 5.55 30.61 2.06 11.48

0.41 1.55 5.17 3.05 3.14 7.67 16.31 10.96 16.42 6.09 19.33 4.48

45

40 INORGANIC CHEMICALS; ORGANIC OR INORGANIC COMPOUNDS OF PRECIOUS METALS, OF RARE-EARTH METALS, OR RADI. ELEM. OR OF ISOTOPES. COFFEE, TEA, MATE AND SPICES.

35

30

25 RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND LEATHER

20

15

EDIBLE VEGETABLES AND CERTAIN ROOTS AND TUBERS.

10 SALT; SULPHUR; EARTHS AND STONE; PLASTERING MATERIALS, LIME AND CEMENT.

Kenyas Top 5 Imports from India

COMMODITIES

MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES.

PHARMACEUTIC AL PRODUCTS

NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF.

IRON AND STEEL

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDER

2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-10 2010-11 2011-12 2012-13

0.41 11.95 2.74 158.77 216.1 823.9 922.26 464.49 583.75 1061.84 880.79 2401.41

18.92 17.72 21.1 23.04 34.19 57.13 79.87 102.94 99.54 164.92 208.01 225.03

16.63 22.58 27.21 18.15 55.94 54.92 75.14 117.21 122.87 133.08 154.3 158.1

12.55 13.07 13.43 17.91 26.22 57.76 72.52 105.85 68.62 88.78 135.66 153.92

6.09 7.44 5.94 8.94 21.89 38.14 59.26 113.71 87.86 149.99 126.51 148.43

All values in USD Million

3500

3000

ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS,AND PARTS. IRON AND STEEL

2500

2000 NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF. 1500

1000

PHARMACEUTICAL PRODUCTS

500 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES.

Indian Companies in Kenya

Tata Chemical Ltd. Essar Energy Bharti Airtel (petroleum refining) Reliance Industries Ltd. (petroleum retail) Tata (automobile, IT, pharmaceuticals, etc.) Karuturi Ltd. Kalpataru Power Transmission Ltd. Power Grid Corporation of India Ltd. Kirloskar Brothers Ltd. Mahindra & Mahindra WIPRO Punj Lloyd Dr. Reddy Cipla TVS

Conclusion

Republic of Kenya is a soveriegn state in East Africa. Kenya lies on the equator with the Indian Ocean to the south-east. Nairobi is the capital as well as the largest city of Kenya. The country is famous for its Wildlife Safari and national parks.

Kenya has the largest economy by GDP in the eastern and central Africa. Agriculture is the main employer and the country traditionally exports tea and coffee. It is also the member of East African Community.

Kenyas economy has been inconsistent since its independence in 1963. During 1990s Kenyas GDP growth was inconsistent it ranged from negative figure to 4%. After 2003 Kenya had a higher and consistent GDP growth till 2007, which peaked at 7% in 2007. Then in 2008 the growth reduced to 1.6% due to post-election violence in Kenya and the global financial crisis. Now the GDP growth rate has rebounded to almost 5% and the economic prospects for Kenya remain favourable for the coming years. And if the positive trend continues, Kenya is projected to be the first East-African country to move from low income status to middle income status.

Kenya is the most industrialized country in eastern and central Africa. Kenyas main export partner are UK, Netherlands, US and the rest of the East Africa. Main import partners are China, India, South Africa and UAE.

Agriculture is the backbone of Kenyas economy and most of its export include agricultural products, such as tea, coffee, flowers, vegetables and fruits. Another major industry is the manufacturing industry Kenya is mostly involved in export of raw products. Kenya does not have a well established oil industry that is why its major import commodity is petroleum and oils.

Indian community has contributed actively to kenyas progress. The bilateral trade among the two countries amounted to $2.4 billion in 2010-11. But the balance of trade was heavily in Indias favour. India is kenyas sixth largest trading partner and largest exporter to Kenya. Many Indian firms such as Tata Group, Essar, Bharti Airtel and Reliance Industries have invested in floriculture, telecommunications, petrochemicals etc. and have executed engineering contracts in power and other sectors.

When HDI is considered Kenya has been a consistent performer. Kenyas scrore has increased 0.9% annually since 1980 from 0.424 to 0.519 presently. The HDI of Kenya is comparabily more than that of the average HDI of the sub-Saharan Africa. Kenya entered 2013 from an improving economic position with low inflation and stable interest rates. Kenya is still underperforming its counterparts and its economy is still unbalanced bacause of the sharp differences in sectoral performances. The economy remain vulnerable to external shocks as current account deficiet is above 10% of GDP despite global fuel prices have moderated recently.

Kenyas economy is expected to expand at the rate of 6% in 2013, the fastest pace in six years, as investors gain confidence due to peaceful political transition as well as good agricultural and services future prospects.

References

IMF Outlook World Bank UNDP focusafrica.gov.in Wikipedia Indexmundi.com Tradingeconomics.com Kenya.rcbowen.com Commerce.nic.in