The Country
Natural Resources
Limestone, soda ash, salt, gemstones, fluorspar, zinc, diatomite, gypsum, wildlife, hydropower
Environmental Issues
Water faces extreme pollution from urban and industrial wastes and increased use of pesticides and fertilizers. The water in Lake Victoria is infested with hyacinth, and the country faces deforestation, soil erosion, desertification and poaching.
Industries
Commercial ship repair, tourism and small-scale consumer goods (plastic, furniture, batteries, textiles, soap, cigarettes, flour, agricultural products, oil refining, aluminum, steel, lead, cement)
Military Branches
Army, navy and air force
Independence
Dec. 12, 1963 (from the United Kingdom)
Economic Overview
The regional hub for trade and finance in east Africa, Kenya has been hampered by corruption and by reliance upon several primary goods whose prices have remained low. In 1997, the International Monetary Fund suspended Kenya’s Enhanced Structural Adjustment Program because of the government’s failure to maintain reforms and curb corruption. A severe drought in 1999 and 2000 compounded Kenya’s problems, leading to water and energy rationing and reducing agricultural output. As a result, the gross domestic product (GDP) shrank by 0.2% in 2000. The IMF, which had resumed loans in 2000 to help Kenya through the drought, again halted lending in 2001, when the government failed to institute several anti-corruption measures. Despite the return of strong rains in 2001, weak commodity prices, endemic corruption and low investments limited Kenya’s economic growth to 1.2%. Growth lagged at 1.1% in 2002 because of erratic rains, low investor confidence, meager donor support and political infighting leading up to the democratic elections. In the key December 2002 presidential election, Daniel Arap Moi’s 24-year reign ended, and a new opposition government took on the formidable economic problems facing the nation. In 2003, progress was made in rooting out corruption and encouraging donor support, with GDP growth edging up to 1.7%. The GDP grew a moderate 2.2% in 2004.