Kenya’s economy is the largest in East and Central Africa, and has experienced considerable growth in the past few years with average growth rate of over 5 percent. As of 2015, Gross Domestic Product (GDP) stood at USD 63.3 billion with per capita income of USD 1,500. Although the economy remains small by global standards, it is distinguished from most African countries by the fact that it is one of the most diversified and advanced.
Key sectors of the economy include agriculture, manufacturing, real estate and services. Although agriculture remains the mainstay of the economy at 30 per cent of GDP, manufacturing’s share of GDP has been rising significantly over the years. At 10 per cent, manufacturing is the second-largest contributor to GDP, with the processing of agricultural products a key factor in growth.
Kenya operates a liberal economy which promotes trade and investment. The country has, abolished price and exchange controls. The Government has also instituted measures to sustain macro-economic stability such as prudent fiscal and monetary policies, improvements in economic governance, and privatization of some public enterprises. These policies continue to promote growth by providing a more secure environment for private sector investment decisions.
Foreign investors seeking to establish a presence in Kenya generally receive the same treatment as local investors. However, the minimum foreign investment to qualify for Government of Kenya (GOK) investment incentives and an investment certificate is USD 100,000. Kenya’s Foreign Investment Protection Act (FIPA) guarantees capital repatriation and remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits
Private enterprises, both foreign and domestic, can freely establish, acquire, and dispose of business enterprises according to the Companies Act. The Constitution of Kenya provides protection against the expropriation of private property. Only permitted subject to the payment of prompt and fair compensation
As of 2015, Kenya had a population of 44 million with an annual growth rate estimated at 2.7 per cent. The country is experiencing growing consumer demand of high end products and services bolstered by growing middle class and rising trend towards.
Kenya's membership to regional economic blocs coupled with her strategic geographic position makes the country the gateway to the huge East African Community (EAC) market with over 135 million people and the Common Market for Eastern and Southern Africa (COMESA) market with over 450 million people. Kenya is a beneficiary of several trade preferential arrangements which includes The African Growth and Opportunities Act (AGOA) and Economic Partnership Agreement (EPA) which gives duty free access to the EU among others