Kenya Essay ⋆ Business Essay Examples ⋆ EssayEmpire

The Sahara Desert accords the continent of Africa a natural geographical divide into two distinct regions: the northern sub-region and the southern sub-region, also called sub-Saharan Africa. The northern sub-region comprises the North African countries of Morocco, Algeria, Tunisia, Libya, Egypt, Sudan, and Western Sahara. The southern sub-region (sub-Saharan Africa) accommodates 48 countries, of which 42 are mainland countries and six are island countries. These 48 countries are spread across four geographical regions: west Africa, south Africa, east Africa, and central Africa. In west Africa, there are 21 mainland and two island countries; in south Africa, 10 mainland and three island countries; in central Africa, five mainland countries; and in east Africa eight mainland and one island countries.

Kenya is a mainland country in the east African part of sub-Saharan Africa, formerly the British East Africa. Kenya gained independence from the United Kingdom in December 63. Nzee Jomo Kenyatta was the first president and ruled from the start of independence in 1963 to his death in 1978. In a constitutional succession, Daniel Arap Moi became president in 1978 and reigned for 24 years, stepping down in 2002. During this period, political instability in Kenya grew with ethnically charged, violent, and fraudulent elections in the political process. In fact, Kenya became a one-party state under the ruling Kenya African National Union (KANU), spurring domestic and international political pressure to liberalize the political process. The domestic and international political pressure brought about change and the conduct of free and fair elections that put Mwai Kibaki in power in 2002. However, his reelection bid in 2007 suffered yet another blow characterized by ethnic violence that disrupted economic activity and almost tore the country apart.

Kenya is about twice the size of the U.S. state of Nevada and borders Sudan and Ethiopia to the north, Uganda and Somalia to the west and east, respectively, and Tanzania and the Indian Ocean to the south. Kenya’s topography is unique, including highlands comprising the most flourishing farming area in Africa, and Mount Kenya, the second highest peak in Africa. Though the climate is tropical with two major seasons, the dry and the rainy, the interior part is also arid.

The population of Kenya is about 38 million, ranking in seventh position in sub-Saharan Africa. About 55 percent of the population are between the ages of 15 and 64 years, 42 percent are under 14 years, and about 3 percent are 65 years and over. The life expectancy of the total population is about 56 years. Females live slightly longer than their male counterparts do. Infant mortality is higher in males than in females. The literacy level of the population is relatively high, and higher among males than females. However, literacy rate as a measure of human capital has not promoted substantial economic development.

Diversity in Kenya is not as pronounced as diversity in Nigeria, the most populous mainland country in the west of sub-Saharan Africa. While Nigeria has 250 ethnic groups, Kenya has only nine ethnic groups that include Kikuyu, 22 percent; Luhya, 14 percent; Luo, 13 percent; Kalenjin, 12 percent; Kamba, 11 percent; Kisii, 6 percent; Meru, 6 percent; other African, 15 percent; and non-African (Asian, European and Arab), 1 percent. The diversity of the ethnic groups in Kenya has contributed to some dimensions of instability and corruption.

The Kenyan economy is market based, revolving predominantly around agriculture, services, and private foreign industrial investment. In recent times, agriculture—horticulture and tea—contributed 23 percent and 22 percent, respectively, of the total export earnings. The service sector is dominated by tourism, which contributes 63 percent of gross domestic product (GDP), and the manufacturing sector accounts for only 14 percent of the GDP. The boost in the industrial sector resulted in the inclusion of Kenya in the African Growth and Opportunity Act (AGOA). The AGOA is an American initiative aimed at stimulating trade with African countries.

Economic performance in Kenya has not been steady. From 1963 to 1973, the economy grew significantly, reaching about 7 percent of GDP. However, between 1974 and 2001, economic performance declined overall, showing stagnated, negative, and minimal GDP growth at various points. The inadequate macroeconomic, microeconomic, and institutional policy reforms are responsible for aggravating the decline in GDP. Nevertheless, economic growth improved slightly in 2001. In addition, in 2006 GDP growth reached about 6 percent and 2007 projections about 7 percent, due to reforms instituted by President Mwai Kibaki. However, economic performance in Kenya still faces several growth inhibitors that include dependence of agricultural produce exports on world price fluctuation, unreliable service sector (tourism) due to poor governance and instability promoted by ethnic disunity, industrial export competition, and a continued high rate of corruption. Transparency International ranks Kenya among the most corrupt countries in Africa. These factors influence the Kenyan economic growth negatively, leaving about 50 percent of Kenya’s population below the poverty level.

Bibliography:

John E. Akoten, Breaking the Vicious Cycle of Poor Access to Credit by Micro and Small Enterprises in Kenya (Institute of Policy Analysis and Research, 2007);
John E. Akoten, Determinants of Small Firm Productivity and Growth in Kenya: Its Implications for Policy (Institute of Policy Analysis and Research, 2007);
CIA, “Kenya,” The World Factbook, www.cia.gov (cited March 2009);
Collier, The Bottom Billion (Oxford University Press, 2007);
Crilly, “After Clashes, Kenya Tourist Trade Struggle,” Christian Science Monitor (March 2008);
Peter Kimuyu, “Corruption, Firm Growth and Export Propensity in Kenya,” International Journal of Social Economics (v34/3, 2007);
Dorothy McCormick, Patrick O. Alila, and Mary Omosa, Business in Kenya: Institutions and Interactions (University of Nairobi Press, 2007);
Umeadi, A Dark Century for Sub Sahara Africa (AuthorHouse, 2008);
Douglas Zhihua Zeng, Knowledge, Technology, and Cluster-Based Growth in Africa (World Bank, 2008).

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