From the basic economic knowledge i know, a country's economic growth depends on its ability to produce and export goods and services required by other countries. The more you produce, the more you export, the better, Your currency gets demand is hence stronger.

Kenya produces agricultural produce (Tea, coffee, flowers etc) then we sell.
We also provide tourism services.

On the hand, we import almost everything else, fuel,manufactured items like phones,TV,cars.
Inputs to our few manufacturing industries are also imported,e.g. steel,gas,rubber etc

unfortunately, we are not doing too well in sectors that we are meant to be strong in, We are not producing efficiently and sufficiently in agriculture,
Our tourism sector still has huge competition. and still fighting travel advisories.

We are still uprooting coffee in kiambu and Thika to put up residential areas, etc
We've ended up importing agricultural products like maize, which we should have in abundance, being an agriculturally driven country.


So, i ask, what drives our economy!!!!
to me we seem to be doing much better than how my basic economics can explain.

Which industry in kenya makes us better than TZ and UG for example?

But your economics is correct. We are a net importer and as long as we remain that way, our currency will continue losing against the international majors.

At the time I finished primary school, the dollar was worth KSh7.35 and the pound sterling was KSh18.50.

Look at the exchange rates today...even if you ignore the recent spike, you will see we have lost by a factor of about ten.

and beer

Though pre-SAP the exchange rate was fixed and not market driven, and you could not just walk up to the bureau like we do nowadays to buy forex, alot of the depreciation from the USDKES rate of 7 30 years ago to the current 91 is because of our increasing trade deficit, a big problem right now coz of low rains and imported inflation from oil etc!

i am not an economist but Tanzania is way off on manufacturing, they literally depend on Kenya for almost everything (Brookside and supaloaf included).

There is a lot of money or business directed to Kenya from abroad compared to her neighbours

Kenya has very enterprising citizens and a fairly skilled human resource hence has attracted and still keeps attracting foreign funds

Hopefully we ll have a manufacturing industry someday and be net exporters

The GDP of Kenya is about 3 Trillion Shillings (services62% Agriculture 22% Industry 16%) The problem here is 75% of labor force is in agriculture)

So if Kenya can mechanize its agriculture (thus involve less people) and maximize on service provision and industry, this GDP can be doubled in less than 10 years. With global population raising, agriculture is the next big thing... Arabs can have their oil, but we can exchange it for rice and thus reduce the balance of trade.

Can someone tell me why Kenya has no National Water Pipeline Corporation? Methinks that land clashes, famine, disenfranchisement of the Northern provinces has a lot to do with failure by the government to identify water as the second most important resource after human capital

And what is this? http://nwcpc.go.ke/

Mukiha & eboomerang for finding this phantom. I will attempt to find out how much it was allocated in the last budget and then write a letter to its top honcho to explain why Kenya Pipeline Corporation hogs all the limelight.

@accelriskconsult, also ask them (*&^%$?) why let all the Tana River water drain to the ocean, becoming wasted, while it can be repumped to irrigate expanse of agriculture plantations. Instead of poisoning our country with GMO maize, can't we tap Tana after the last HEP plant or just before it plunges sweet waters to the saline ocean? Egypt will not come after our necks afterall. Tana and Athi are ours, beginning to the end......that is if we do not continue to plunder the forests.