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In 1999 Kenya's GNP was about KES 812,766 million (World Bank estimate), equivalent to KES 27,356 per head. After services, agriculture, including forestry and fishing, is the most important economic sector, accounting for 23.2 per cent of gross domestic product (GDP) in 1999. Tourism is a vital part of the economy; mining activity is on a relatively small scale. Kenya's estimated national operating budget in 1997 included expenditure of KES 203,343 million and revenue of approximately KES 190,350 million.

After World War II Kenya experienced one of the highest rates of economic growth in the world because of large-scale foreign investments and the influx of European management and technical personnel. The colonial government's policy was to leave economic growth to private enterprise. After independence, Kenya joined with Tanzania and Uganda in 1967 to form the East African Community, which aimed to further the development of a common market in goods and services among the member states; the community was dissolved in 1977 but revived again in 2001.

Following a 3.3 per cent increase in output in 1994, the economy continued to grow in 1995 with decreasing inflation and a 5 per cent growth in GDP. Chief factors hindering prosperity are one of the world's highest rates of population growth and withdrawal of donor aid from 1991 until 1993, pending economic and political reforms. In February 1996 the World Bank approved a loan of KES 16,413 million that had been withheld since 1994, in response to the beginnings of economic reforms made prior to elections in 1997.

Agriculture, Forestry, and Fishing

Although only about 4 per cent of the land is suitable for arable production, the Kenyan agricultural system is highly diversified, producing almost every basic foodstuff. Potatoes, coffee, tea, cotton, cereal grains, beans, peanuts, and tobacco are grown in the highlands, the prime agricultural area, while sugar cane, corn, cassava, pineapples, sisal, cotton, and cashew nuts are grown on the coast and in the lowlands. Coffee, tea, pyrethrum, sisal, and horticultural products are the most important export crops.

Livestock breeding and dairy farming are important to the Kenyan economy; in 1999 Kenya had about 13.4 million head of cattle, 7.60 million goats, 5.80 million sheep, and 30 million chickens. In 1995 dairy production included about 4,000 tonnes of butter (including ghee, a semi-fluid clarified butter) and about 1.9 million tonnes of cow's milk.

Kenya's forests produce mostly hardwoods (musheragi, muiri, mukeo, camphor, musaise) and some softwoods (pids, cedar, cypress). Wattle bark, used in tanning, is an important export item. Output of timber was 27.7 million cu m (978 million cu ft) a year in 1994. Commercial fishing, primarily on inland waterways and lakes, is sufficient to satisfy the local market. The annual catch in 1997 was about 161,183 tonnes.

Minings

Kenya has few developed mineral resources, and mining plays only a small role in its economy. Mineral production in Kenya includes soda ash, salt, fluorspar, iron ore, gold, garnets, and limestone. Large deposits of lead and silver have been discovered near Mombasa.

Manufacturing

Kenya has one of East Africa's most diversified manufacturing sectors. However, it is still on a small scale and consists mainly of food- and raw-material-processing for local consumption. Manufacturing amounts to around 11 per cent of GDP. Flour-milling, cement-manufacturing, and oil-refining are among the country's leading industries.

Tourism

Kenya relies on tourism as its greatest source of foreign exchange earnings. In 1994 Kenya attracted over 800,000 visitors annually, yielding revenue of more than KES 31,991 million. Earnings from tourism dipped in 1993 and 1995 because of growing violence and unrest. Tourists primarily visit Kenya's national parks and game reserves to see and photograph the wildlife; many also enjoy the beaches along the Indian Ocean coastline. Tsavo National Park and Marsabit National Reserve are the country's two largest parks; the Masai Mara park, in south-west Kenya, is probably the best known.

Energy

Since World War II hydroelectric power projects have been developed to meet the increasing demand for power. In 1993 Kenya had an installed electricity-generating capacity of about 810,000 kW, two thirds from hydroelectric power stations. Annual production of electricity in 1998 was approximately 4.2 billion kWh.

Currency and Banking

The monetary unit is the Kenya shilling of 100 cents (KES 75.98784 being equal to USD 1, as at Jan 06, 2009).

Commerce and Trade

Kenya usually spends considerably more each year on imports than it earns from exports; in 1999 annual imports were valued at KES 212,766 million and exports at KES 136,778 million. Exports went principally to Germany, the United Kingdom, the United States, and Uganda. Major exports include coffee (the largest cash crop), tea, petroleum products, canned pineapple, hides and skins, sisal, soda ash, and pyrethrum extract (used in insecticides). Imports came mainly from the United Kingdom, Germany, the United Arab Emirates, and Japan, and include crude petroleum, industrial machinery, motor vehicles, iron and steel, agricultural implements, pharmaceuticals, and fertilizers.

Labour

In 1994 about 1.47 million people were employed in Kenya's formal economy; more than 50 per cent worked in service industries, about 18 per cent in agriculture and forestry, and about 18 per cent in manufacturing and construction. The vast majority of the country's estimated 10.3 million economically active people, however, works outside the formal sector, either as subsistence farmers and herders, or within the informal sector of small-scale traders, craftspeople, and entrepreneurs.

Transport

Kenya is served by the Kenya Railways Corporation, which operates about 1,911 km (1,187 mi) of track; the domestic network links into the Ugandan and Tanzanian systems. Kenya has a road network of about 63,800 km (39,643 mi); 14 per cent of this is paved. In 1997 there were 10 passenger cars per 1,000 people. Mombasa is the chief port and serves Uganda and Ethiopia as well as Kenya. Steamer services are maintained on Lake Victoria, with connections to Albert and Kyoga lakes in Uganda. The Jomo Kenyatta Airport in Nairobi is a major terminus for Kenya Airways, which has been privatized, and other international airlines. Moi international airport is located at Mombasa.

Communications

Kenya has 4 daily newspapers with a combined circulation of around 263,000. Leading dailies include two English-language newspapers, the Daily Nation and The Standard, and a Swahili-language daily, Taifa Leo, all published in Nairobi. The Kenya Broadcasting Corporation operates radio and six television stations with English-, African-, and Asian-language programmes. There is a well-developed telecommunications system with around 9 telephones per 1,000 people, 3 million radios, and 730,000 television receivers.