section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Kenya's macroeconomic outlook has steadily posted robust growth over the past few decades mostly from road, rail, air and water transport infrastructure projects as well as massive investments in Information and Communication Technology. The Kenyan economy is the largest in East Africa. After independence, Kenya promoted rapid economic growth through public investment, encouraged smallholder agricultural production and provided incentives for private industrial investment. Kenya is East Africa's regional transportation and financial hub. Kenya's financial sector is vibrant, well developed and diversified boasting the highest financial inclusion in the region and globally.
  
  Foreign investments in Kenya remain relatively weak considering the size of its economy and its level of development. As of 2022, Kenya's total FDI stock stood at US$10.4 billion, accounting for a mere 9.5% of the country's GDP.
  
  Kenya has a Human Development Index (HDI) of 0.555 (medium), ranked 145 out of 186 in the world. As of 2005, 17.7% of Kenyans lived on less than $1.25 a day. In 2017, Kenya ranked 92nd in the World Bank ease of doing business rising from 113rd in 2016 (of 190 countries). The important agricultural sector is one of the least developed and largely inefficient, employing 75% of the workforce compared to less than 3% in the food secure developed countries. Kenya is usually classified as a frontier market or occasionally an emerging market, but it is not one of the least developed countries.
  
  The economy has seen much expansion, seen by strong performance in tourism, higher education, and telecommunications, and decent post-drought results in agriculture, especially the vital tea sector. Kenya's economy grew by more than 7% in 2007, and its foreign debt was greatly reduced. This changed immediately after the disputed presidential election of December 2007, following the chaos which engulfed the country.
  
  Telecommunications and financial activity over the last decade now comprise 62% of GDP. 22% of GDP still comes from the unreliable agricultural sector which employs 75% of the labour force (a characteristic of under-developed economies that have not attained food security). A small portion of the population relies on food aid. Industry and manufacturing is the smallest sector, accounting for 16% of GDP. The service, industry and manufacturing sectors only employ 25% of the labour force but contribute 75% of GDP. Kenya also exports textiles worth over $400 million under AGOA.
  
  Privatisation of state corporations like the defunct Kenya Post and Telecommunications Company, which resulted in East Africa's most profitable company— Safaricom, has led to their revival because of massive private investment.
  
  As of May 2011, economic prospects are positive with 4–5% GDP growth expected, largely because of expansions in tourism, telecommunications, transport, construction, and a recovery in agriculture. The World Bank estimated growth of 4.3% in 2012.
  
  In March 1996, the presidents of Kenya, Tanzania, and Uganda re-established the East African Community (EAC). The EAC's objectives include harmonising tariffs and customs regimes, free movement of people, and improving regional infrastructures. In March 2004, the three East African countries signed a Customs Union Agreement.
  
  Kenya has a more developed financial services sector than its neighbours. The Nairobi Securities Exchange (NSE) is ranked 4th in Africa in terms of market capitalisation. The Kenyan banking system is supervised by the Central Bank of Kenya (CBK). As of late July 2004, the system consisted of 43 commercial banks (down from 48 in 2001) and several non-bank financial institutions including mortgage companies, four savings and loan associations, and several core foreign-exchange bureaus.