Overview

From the one-party state of the past to the constitutional reforms of the present
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Kenya’s recent political history is defined in part by robust elections, but that was not always the case. For much of the 1980s, for example, the country was officially a one-party state. However, the gradual liberalisation of the political system in the 1990s, combined with more recent reforms, have helped pave the way for a more inclusive and devolved form of governance – all under a new constitution…

Overview

A land of diversity with a long history and growing economy
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Kenya, in many ways, is a country so diverse and multifaceted that it is difficult to sum up in a single sentence. It is among other things: one of the world’s most popular tourist destinations; an economic heavyweight with diplomatic clout; a storied trading post along the Indian Ocean; a country of incredible natural beauty and wealth; and a nation of rich ethnic and linguistic diversity. It has…

Overview

Rising consumption levels are driving growth and regional expansion
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A rarity for many African markets, home-grown businesses form a significant proportion of Kenya’s modern retail sector. With consumption levels rising, a number of outlets are using growth in the domestic market as a platform for regional expansion. Competition is tight and the informal market continues to play a big role, but the sector is dynamic. Accelerating the sector’s growth now requires…

Overview

Re-engineering of the industrial base presents growth opportunities
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Seven years after publication of the Vision 2030 national development roadmap (V2030), Kenya is moving toward the integrated development of industry involving the upgrade of infrastructure, regulation and skills. Policy is being guided by V2030, the National Industrialisation Policy Framework 2012-30 (NIPF) and the Second Medium-Term Development Plan 2013-17 (MTDP2), in tandem with the East African…

Overview

Implementing a devolved system of governance and making efforts to spur growth in key economic sectors
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As an emerging market, Kenya benefits from a number of competitive advantages, not only within East Africa but also within the wider continental context. The country has recently undergone a significant overhaul of its governmental system, devolving key powers to local counties, while a spate of underground discoveries have prompted new interest in the hydrocarbons sector. In recent decades, Kenya,…

Overview

Growing number of people and businesses accessing financial services
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The banking sector in Kenya is notably diversified, thanks in large part to the country’s efforts to boost financial inclusion. Kenya’s predominant mobile money platform, M-Pesa, is perhaps the best known example, but other elements of the Kenyan system, such as savings and credit associations, microfinance and agency banking, also underscore the diversity and innovation within the sector. Even…

Overview

Commercially viable discoveries lay the groundwork for the domestic oil and gas industry
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Along with Tanzania and Uganda, Kenya is emerging as a new destination for oil and gas explorers after several hydrocarbons deposits in commercially viable quantities were found in the East Africa region. A series of onshore and offshore oil and gas finds in Kenya suggest that the country has the potential to become a hydrocarbons exporter, as well as a regional energy transit hub as producers in Sudan…

Overview

Reforms and new trading options are set to transform the bourse
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Headlined by two equities boards and liquid options for bonds both in primary and secondary trading, Kenya’s capital markets stand out for their maturity in comparison to most African markets, although other asset classes are in the early stages of development. Advanced instruments such as derivatives for hedging or speculation are not yet available, but market authorities say new products are set…

Overview

Premium growth and expanded coverage are expected
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Holding enormous untapped potential, Kenya’s insurance industry has expanded rapidly over the past 10 years, with both the life and non-life segments showing consistent double-digit growth as the nation’s rising middle class becomes increasingly aware of the benefits insurance entails. Although the sector is still dominated by the short-term motor segment, rapid uptake in life, medical and new…

Overview

Expanding capacity and access across the nation
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As with a number of African markets, expanding the capacity of Kenya’s utilities sector is a key part of the government’s blueprint for development. On the power side, the government aims to add 5000 MW of generation capacity to the existing 1672 MW by 2017. Down the road, the government intends to further expand capacity to meet the 17,000 MW of demand anticipated by 2030. By comparison, in the…