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Kenya’s economy has been largely deregulated with the removal of most licensing procedures. The respective roles of the public and private sectors have evolved overtime, enabling the country to experience continuity in its underlying economic development strategy. The Government’s economic and liberalization reforms aim at achieving an enhanced welfare level by ensuring stable, balanced and sustainable growth and integration with the global economy in a harmonized manner.
The macroeconomic framework includes fiscal discipline and a stable monetary policy, poverty alleviation, creation of employment and even distribution of wealth. The policy further seeks to contain inflation at single digit levels, maintenance of low interest rates and a balanced budget to be achieved by widening the economic base beyond agriculture, government divesture from state enterprises and developing Free Trades Areas.
Economic Performance
Kenya has through the Economic Recovery Strategy for Wealth and Employment Creation formulated an enabling environment for trade, business, tourism and foreign direct investment.
Agriculture is the backbone of the economy. It accounts for about 24% of real GDP and approximately 63% of exports. Services account for 63% of the GDP. Manufacturing constitutes 13% of GDP. The sector is composed of medium and large enterprises with major foreign multinational companies from Europe, USA, and Asia.
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Exports
Kenya is a major exporter of primary agricultural commodities. The main exports are: coffee, tea, horticulture products, sisal, pyrethrum, wattle extract, hides and skins, fish and fish preparations.
Export Partners
Uganda, Tanzania, United Kingdom, Netherlands, Pakistan, Egypt, Germany, Rwanda, Democratic Republic of Congo and Sudan.
Imports
The leading imports are primarily industrial inputs; crude petroleum and refined petroleum products, edible oils and fats, resins and plastics, fertilizers, machinery and transportation equipment, iron and steel, raw materials.
Import Partners
United Arab Emirates, Saudi Arabia, South Africa, United Kingdom, Japan, United States of America, India, Germany, China, France.
Natural Resources
Cement, fluorspar and soda ash, gold, limestone, rubies, fluorspar, garnets, wildlife and hydropower.
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Kenya and Israel enjoy a growing economic and trade partnership. The two way bilateral trade amounted to US $ 74,4 million in 2005 up from US $ 59 million in 2004. Of this, exports to Israel amounted to US $ 22 million and imports from Israel to Kenya were worth US $ 52 million.
 
| Year |
Exports (us $) |
Imports (us $) |
Total (us $) |
| 2000 |
15,849,846 |
28,181,481 |
44,031,357 |
| 2001 |
15,517,017 |
23,670,319 |
39,187,336 |
| 2002 |
20,010,300 |
27,250,000 |
47,260,300 |
| 2003 |
20,538,800 |
36,394,200 |
56,933,000 |
| 2004 |
14,494,400 |
44,452,100 |
58,946,500 |
| 2005 |
20,000,000 |
54,400,000 |
74,400,000 |
Kenya's main exports to Israel consist of live animals and animal products, wood and wood manufacture products, plant and vegetable products, semiprecious stones and metals, prepared foodstuffs.
Kenya's main imports from Israel consist of base metals, machinery and electrical equipment, rubber and plastics, optical and medical equipment, Plant and vegetable products, paper and paper products.
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Doing Business in Kenya
Kenya is strategically located as the gateway to Eastern and Central Africa. She is a regional hub for investment and commerce. Enormous business opportunities await today's entrepreneur in the Kenya/Israel market environment.
Whether you are a Kenyan based company looking to do business in Israel, or an Israel based enterprise interested in establishing a presence in Kenya, you will find useful information in this section.
Investment climate
Investing in Kenya has been made easier through implementation of various measures. Factors favouring both local and foreign investment in Kenya are:
Political stability
Stable macro-economic policy
Competitive investment incentives
Guarantees to investors
Preferential market access
A business-friendly tax system
Highly developed human resource
Relatively developed infrastructure
Business Opportunities
Prospects for major trade and investment opportunities exist in manufacturing, agriculture and agro based industries, hotel and tourist related industries, transport, and construction.
There are over 900 major manufacturers and over 200 multinationals in the country, mainly from Britain, France, the US and West Germany.
Detailed information on how to start and do business in Kenya is available through these links:
www.tradeandindustry.go.ke
www.investmentkenya.com
www.epckenya.org
www.cbs.go.ke
Market Access
Exports from Kenya enjoy preferential access to world markets under a number of special access and duty reduction programmes.
Regional Markets
Kenya is an active member of the East African Community (EAC) and the Common Market for Eastern & Southern Africa (COMESA), and the New Partnership for Africa's Development initiative (NEPAD) a block of 400 million people.
These key trading blocks in Africa provide a large market for goods and services. The conclusion of the East African Customs Union and the ongoing creation of the COMESA Common Investment Area provide attractive potential for increased trade amongst the members.
read more>>> www.eastafricancommunity.com , www.commonmarketforeasternandsouthernafrica.com
www.eac.int
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