Kenya 

Kenya country policy

Policy established 11 October 2011

• ILC, bank guarantee or central public guarantee (unconditional)
• The country ceiling is 300 mln euro
• - of which was used as at 2012-02-29 166 mln euro
• Public buyers: ORIO facility

Country class: 6

Good governance control

Kenya country facts

Atradius Dutch State Business Economic Research

Country Report last updated :  16 December 2011   
Country :  KENYA 

Political Situation

 
Constitutional Reform

Head of state
President Mwai Kibaki (since December 2002, member of NARC-Kenya, reelected in the controversial elections of December 2007).

Form of government
Grand coalition of Party of National Unity (Kibaki) and the Orange Democratic Movement (Odinga).  
 
Internal Economic Situation
Fiscal Stimulus

General situation
Since 2004 the macro-economic performance has improved markedly. Economic growth suffered due to the post-election violence but has recovered since then. Growth is forecasted between 4.5% and 6% for 2012 and driven by government expenditure.  Inflation was 14% in 2011External debt remains manageable and Kenya can count on IMF support. Nairobi is the financial centre of East Africa. Liquidity remains adequate, but large current account deficits are a potential threat.  
 
External Economic Situation
Sustainable Sovereign Debt

Main sources of foreign exchange
Tourism ($579 mln), horticulture (12% XG), tea (19%) coffee (7%), fish (2%) donor support.

Main foreign markets
Africa (33%, Uganda 9%, Tanzania 9%), EU (32%, UK 10%, Netherlands 9%), USA (9%), Asia (12%, Pakistan 5%).

Main expenses of foreign exchange
Machines and transport equipment, chemicals, petroleum, manufactured goods and food.
 
Balance of payments  
Current account deficits are more than offset by capital inflows.