wazua Fri, May 8, 2026
Welcome Guest Search | Active Topics | Log In

3 Pages123>
What drives Kenya's Economy?
subzero
#1 Posted : Friday, June 24, 2011 12:02:22 PM
Rank: Member

Joined: 1/10/2008
Posts: 365
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?
mukiha
#2 Posted : Friday, June 24, 2011 3:57:32 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
subzero wrote:


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


Manufacturing. TZ and UG import a lot of finished goods from our manufacturers.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#3 Posted : Friday, June 24, 2011 4:03:16 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
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.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
KulaRaha
#4 Posted : Friday, June 24, 2011 4:12:28 PM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
We are driven by corruption. A lot of GOK money is diverted into the economy by corruption, keeping the economy ticking.
Business opportunities are like buses,there's always another one coming
The Merchant
#5 Posted : Saturday, June 25, 2011 12:24:30 PM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
KulaRaha wrote:
We are driven by corruption. A lot of GOK money is diverted into the economy by corruption, keeping the economy ticking.

and beer Laughing out loudly Laughing out loudly Laughing out loudly Sad
Cde Monomotapa
#6 Posted : Saturday, June 25, 2011 3:18:58 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
The Merchant wrote:
KulaRaha wrote:
We are driven by corruption. A lot of GOK money is diverted into the economy by corruption, keeping the economy ticking.

and beer Laughing out loudly Laughing out loudly Laughing out loudly Sad

Two effective stimulus packs.
Sufficiently Philanga....thropic
#7 Posted : Saturday, June 25, 2011 10:42:21 PM
Rank: Elder

Joined: 9/23/2010
Posts: 2,225
Location: Sundowner,Amboseli
mukiha wrote:
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.

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!
@SufficientlyP
eco
#8 Posted : Wednesday, July 20, 2011 2:31:13 AM
Rank: Member

Joined: 6/17/2011
Posts: 229
Whatever drives our economy, should we maintain peace and political stability after 2012 General elections, it is likely that the economy will hit double digit growth. Good projections by AfDB http://tinyurl.com/3mwwjb2
kiterunner
#9 Posted : Wednesday, July 20, 2011 2:47:40 AM
Rank: Member

Joined: 7/9/2011
Posts: 730
Location: Nairobi
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
our goals are best achieved indirectly
eboomerang
#10 Posted : Wednesday, July 20, 2011 11:51:31 AM
Rank: Member

Joined: 6/27/2011
Posts: 301
Location: Nairobi
A large fraction of the economy is really sustained by the informal sector. The "bottom of the pyramid" being the most vibrant. If you look a few years back at how Safaricom and Kencell(Airtel) started and follow through their earnings, you'll see that if you don't address the masses you are out of business in Kenya.

At the national level it's mainly tourism and a bit of exports. The balance of trade is out of control, we being on the loosing end. With the emergence of Rwanda et al the shilling might weaken further over the coming years.

So far, I haven't seen any initiative that can bring sustainable growth to Kenya.
3 Pages123>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Copyright © 2026 Wazua.co.ke. All Rights Reserved.