Exploring the Economic Potential of Kenya

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Analysis of Country Kenya

Introduction
The Republic of Kenya is located in the south of the Sahara, one of an advanced economy and peaceful country in east and central Africa. The United Nations has established four major office sites in worldwide; one of the four major UN official sites [1] built at the capital city Nairobi in Kenya. In Africa Continental, Kenya has a very important position. Due to its most advanced location and colonialist culture, the country is qualified to meet all pre-request for rapid development in the future. This country not only has significant potential for economic development in the less developed world, but also it has strong power and influence in Africa. Therefore, it is necessary to take a look at regulation …show more content…

It has a large area among the African countries, which are 581,309 square kilometers, and only had a small population of about 45 million people in July 2014. [2] Uganda, Ethiopia and Somali have border connect with Kenya. The climate of Kenya is warm and humid, which is the tropical climate caused by the Indian Ocean coastline. However, it is not warm in other regions. For example, the area around Nairobi is cooler, and Mount Kenya has snow on its tops. Also, as the largest tropical fresh-water lake in the world, Lake Victoria humidified the further inland of Kenya, and becomes a famous tourist attraction. Therefore, the popularity of Kenya is contributed by its safaris, diverse climate and geography, and expansive wildlife reserves and national parks. [3] In most recent years, the tourism sector has become the principal source of foreign exchange for the country. However, base on the Human Development Index (HDI), it ranked 145 out of 186 in the world. [4] Thus, there is an affluent urban minority in the country. 17.7% of Kenyans lived on less than $1.25 a day until to 2005. Under the colonization by British, Kenya experienced many economic and political problem, and it caused various serious issues inside the country after the following …show more content…

There is 75% of the labor force occupied by agriculture sector which only contributes 22% of GDP. Conversely, 75% of GDP were contributed by 25% of the labor force in service, industrial and manufacturing sectors. [9] In 2012, the World Bank showed the data of Kenya’s GDP which was only $40.7 billion in 2012 considered as a low income country. The major agriculture products are tea, horticulture and coffee which are also the main export product. Corn is the major food for Kenyans, but the yield of corn is not stable due to the fluctuant weather condition. For instance, Kenya was in a food shortage during the severe droughts in 2004. In 2012, agriculture exports (horticultural produce and tea) collected $5.942 billion revenues, but the imports ($14.39 billion) the product was more than exports. Thus, it can be seen that Kenya had a serious trade deficit in the world market. The main import products are machinery and transportation equipment, petroleum products, motor vehicle, iron and steel, resins and plastics. In other words, the development of industrial sector was still weak in Kenya. It accounts for only 14% of GDP. The major industrial activity in Kenya is food-processing industries. It has an oil refinery that is able to filter crude oil to complete petroleum products which are mainly for the domestic

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