Your email address will not be published. On Tuesday, U.S. Still, it remains unclear whether the parties will reach a final peace agreement before the deadline set by the mediating body, the Intergovernmental Authority on Development (IGAD), expires in mid-October. We also use third-party cookies that help us analyze and understand how you use this website. The country has enjoyed relative robust growth for much of the 2003-2013 decade. NAIROBI – Kenya has joined the top 10 economies in Africa after growth figures were revised, showing that it had been previously understated by at least 25%. The Kenya Vision 2030 aims to transform Kenya into a newly industrializing, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment. This website uses cookies to improve your experience while you navigate through the website. Kenya today is already a “frontier” economy. Guidance for the Brookings community and the public on our response to the coronavirus (COVID-19) », Learn more from Brookings scholars about the global response to coronavirus (COVID-19) ». Kenya’s real GDP growth has averaged over 5% for the last decade. Main Findings In order to cross the threshold into lower middle income status by 2025, Tanzania will need to sustain per capita growth of approximately 5% per year, equivalent to an overall GDP growth of approximately 7.7%. Kenya Governance Support Programme (KGSP) 2010-2015; Drivers of Accountability Programme; Peace and Security for Development; Public Financial Management; Success stories from the field. Success stories from the field; From Trees to Tech; NOWSUD Skills Development Centre; Business. Expectations High as Senate Meets to Consider Tea Reforms, Real Estate Firm Changes Lives of Differently Abled Kenyans, End of Sonkoism? These cookies will be stored in your browser only with your consent. Only four short years ago, he was grappling with uncertainty after being forced to drop out of college due to financial constraints. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. But opting out of some of these cookies may have an effect on your browsing experience. The economy’s GDP, measured by annual output of goods and services, has thus increased by the same margin, revised data from the national statistics bureau show. These cookies do not store any personal information. The index, which gives national, regional and continental scores from 0 to 100 related to four governance indicators (i.e., human development, safety and rule of law, human rights and sustainable economic opportunity), revealed that continent-wide governance performance increased by just 0.9 percent over the past five years, representing a slight decrease from the previous five years’ (2005-2009) growth of 1.2 percent. However, poverty and income inequality remain persistent challenges. Over the past year, however, some countries with historically low governance scores improved significantly, including Côte d’Ivoire and Guinea (which are in the process of recovering from political instability) as well as Niger and Zimbabwe. Mongolia and Paraguay move from lower middle … It anchors…, Real estate firm Myspace Properties visited Isiolo in the latest phase of their Corporate Social…. This makes Kenya the ninth-largest economy in Africa and classifies it as a middle-income country since its gross national income (GNI) per capita, … This website uses cookies to improve your experience. While politicians in the country had long built followings based on tribal arithmetic, Sonko did it differently. Middle-income countries generally attract greater levels of foreign direct investment, particularly in telecommunications, banks and food companies. While Kenya has a growing entrepreneurial middle class and steady growth, its economic development has been impaired by weak governance and corruption. Kenya jumps about 10 places globally and now has a larger economy than Guatemala ($54bn), Bulgaria ($53bn), Macao SAR/China ($52bn), Costa Rica ($50bn), Slovenia ($47bn), Lithuania ($46bn) and Lebanon ($44bn). For the current 2016 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,045 or less in 2014; middle-income economies are those with a GNI per capita of more than $1,045 but less than $12,736; high-income economies are those with a GNI per capita of $12,736 or more. There are 54 countries in the Commonwealth, in Africa, Asia, the Americas, Europe and the Pacific. However, analysts say this is not likely to have any effect on Kenya since investors and lenders have already been treating it as if it were already a middle income country. Necessary cookies are absolutely essential for the website to function properly. The Kenya National Bureau of Statistics findings are the result of more accurate data on key sectors such as property and telecoms. Seeing the vision Through. The aim of Kenya Vision 2030 is to create “a globally competitive and prosperous country with a high quality of life by 2030”. Figures released today changing the base calculation year to 2009 from 2001 show a larger increase than had been anticipated, pushing the country into the lower ranks of the World Bank’s so-called middle income nations. East Africa's largest economy, Kenya has a set of ambitious targets in its bid to become a middle-income country by 2030. Kenya became a low-middle-income country in 2014. Kenya is a member of the United Nations, Commonwealth of Nations, World Bank, International Monetary Fund, COMESA, International Criminal Court, and other international organisations. Over the weekend, President Kiir’s government reportedly agreed to implement a federal system of governance in the country as called for by rebel negotiators, signaling a promising step towards a political settlement. This makes Kenya the ninth-largest economy in Africa and classifies it as a middle-income country since its gross national income (GNI) per capita, $1,160, has surpassed the World Bank threshold of $1,036 to qualify. Despite this boost in GDP, many observers have noted that this revision does not mean that Kenya has overcome its economic challenges: More than four in 10 Kenyans live in poverty according to the World Bank, and Kenya still has a considerable way to go to achieve 10 percent growth annually as outlined in its Vision 2030 Agenda. are from the Nairobi Central Station to JKIA has also been halved, from Ksh500 to Ksh250. This week the Mo Ibrahim Foundation released the 2014 Ibrahim Index on African Governance, highlighting incremental improvement in principles of good governance across the continent. Approximately 10 million … Sorry, your blog cannot share posts by email. to transform into a country akin to these middle income comparator countries. We stand out from the rest. However, if Kenya’s economy only grows at 3.7 percent (the average of the last decade), the train will likely be overtaken by Rwanda, Tanzania and Uganda in the next ten years. Kenya—The Quest for Middle-Income Status. It aims to transform Kenya into “a newly-industrialising, middle income country providing a high quality of life to all its citizens in a clean and secure environment". The Kenya National Bureau of Statistics has adopted a different definition of the middle class, as anyone spending between KShs 23,670 and KShs 199,999 per month. This has catapulted Kenya past Ethiopia, Ghana and Tunisia. Kenya on Friday hit the road to becoming a middle-income nation in five months’ time after authorities said that a statistical review of the economy was under way. Data for Lower middle income, Kenya from The World Bank: Data Kenya Governance Support Programme (KGSP) 2010-2015. Kenya has crossed the threshold to become a low-middle income country following the rebasing of its National Accounts, including gross domestic product and Gross National Income The size of the economy is 25% larger than previously thought, and Kenya is now the 5th largest economy in Sub-Saharan Africa behind Nigeria, South Africa, Angola and Sudan The World Bank defines nations with GDP per capita of between $1,045 and $4,125 as “lower middle income”. But, when compared to sub-Saharan Africa’s middle-income countries, whose average rate of growth was three per cent, Kenya performed well. Let me now turn to my third topic and the main theme of today’s meeting—Kenya’s quest to become a middle-income economy. Kenya’s “rebased” GDP—which takes into account a revised base year of 2009 (from 2001) as well as better data from the high-performing sectors of agriculture, manufacturing, telecommunications and real estate—is now estimated at $53.3 billion (compared to $42.6 billion before the revision). According to the World Bank’s data, Kenya ‘s GDP per capita grew 248 per cent between 2000 and 2012 rising from US$399 in 2000 to $991 in 2012. According to Bloomberg, the boost in GDP also means that the Kenyan government will likely have an easier time accessing commercial loans since “a higher figure for GDP will help to lower Kenya’s debt ratios.” Kenya’s move to revise its GDP comes just months after Nigeria rebased its GDP in April and became the largest economy on the continent. Its economic growth is expected to continue at an annual average rate of 5.9 per cent over the next five years. Although Kenya's economy is the largest and most developed in eastern and central Africa, 36.1% (2015/2016) of its population lives below the international poverty line. Small states are especially vulnerable to things like climate change or developmental challenges. Business Today  is a blog that makes sure you are informed when it comes to business, brings you up to speed with both the local and international news. Meanwhile, on Thursday, both warring parties accused one another of launching new attacks in Unity and Upper Nile States, violating the current ceasefire. The nation’s average income, the wealth produced annually divided by the population, rises from $999 (about KSh88,000) to $1,246 (KSh109,000). 3. Other countries with strong governance records made negligible improvements or declined in their scores, (namely Botswana, Cape Verde, Mauritius, Seychelles and South Africa). Required fields are marked *, The Senate will on Monday, December 21 meet to consider the Tea Bill. Kenya’s real GDP growth has averaged over 5% for the last decade. The classification tables include all World Bank members, plus all other economies with populations of more than 30,000. I am inclined to go with this definition for Kenyan purposes, as I feel it is more in line with our spending power. This could give the government some leeway for more borrowing to help finance its plans. This severe poverty is mainly caused by economic inequality, government corruption and health problems. “Promoting equal opportunities across the country and linkages in the subregion will strengthen Kenya’s transformation from a low middle income to a middle-income country by 2030,” said Keith Hansen, World Bank Country Director for Kenya. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. The country and lending groups page provides a complete list of economies classified by income, region, and lending status and links to previous years’ classifications. Such nations are not eligible for interest-free loans typically offered to poorer nations. However, analysts say this is not likely to have any effect on Kenya since investors and lenders have already been treating it as if it were already a middle income country. We'll assume you're ok with this, but you can opt-out if you wish. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. Kenya jumps about 10 places globally and now has a larger economy than Guatemala ($54bn), Bulgaria ($53bn), Macao SAR/China ($52bn), Costa Rica ($50bn), Slovenia ($47bn), Lithuania ($46bn) and Lebanon ($44bn). Post was not sent - check your email addresses! The report includes country-specific three-year forecasts for major macroeconomic indicators, including commodity and financial markets. The rebasing means debt levels fall as a proportion of GDP. With a GNI of 1,460, Kenya is a lower-middle-income economy. Mike Mbuvi Comes Crashing Down After Meteoric Rise, KQ Aligns Flight Schedule With JKIA Express Rail Service as Prices Slashed, Lord Luigi: College Dropout Minting Profits from Animation. Affordable Housing for low & middle income earners in Nairobi 3 1.1 Basic General Data Geography and Administration Kenya is situated in the Eastern part of the African continent, between 5 degrees North and 5 degrees South latitude and 24 and 31 degree East longitude. To do that, Kenya’s GNI would have to increase five-fold from $1,160 per capita to $5,600, the World Bank’s projected threshold for upper middle income status in 2030. WASHINGTON, July 1, 2015 – The World Bank’s latest estimates of Gross National Income per capita (GNI) continue to show improved economic performance in many low-income countries, with Bangladesh, Kenya, Myanmar, and Tajikistan now becoming lower-middle income countries, joining those with annual incomes of $1,046 to $4,125. Its 2013 growth rate after the rebasing is still only 5.7 percent. You also have the option to opt-out of these cookies. Direct discussions between representatives of the warring parties in South Sudan are taking a positive turn, according to the Sudan Tribune. 32 of our members are classified as small states. Economic growth for the year has also been put at 5.7%, up from 4.7%. This category only includes cookies that ensures basic functionalities and security features of the website. 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