Ethnic divisions account for many of Kenya's problems. During the early 1990s, tribal clashes killed thousands and left tens of thousands homeless. Ethnically split opposition groups allowed the regime of Daniel Toroitich arap MOI, in power since 1978, to be reelected for a fourth term in 1997 in balloting marred by violence and fraud.

Economy - overview  Kenya is well placed to serve as an engine of growth in East Africa, but its economy is stagnating because of poor management and uneven commitment to reform. In 1993, the government of Kenya implemented a program of economic liberalization and reform that included the removal of import licensing, price controls, and foreign exchange controls. With the support of the World Bank, IMF, and other donors, the reforms led to a brief turnaround in economic performance following a period of negative growth in the early 1990s. Kenya's real GDP grew 5% in 1995 and 4% in 1996, and inflation remained under control. Growth slowed in 1997-99 however. Political violence damaged the tourist industry, and Kenya's Enhanced Structural Adjustment Program lapsed due to the government's failure to maintain reform or address public sector corruption. A new economic team was put in place in 1999 to revitalize the reform effort, strengthen the civil service, and curb corruption, but wary donors continue to question the government's commitment to sound economic policy. Long-term barriers to development include electricity shortages, the government's continued and inefficient dominance of key sectors, endemic corruption, and the country's high population growth rate.

GDP  purchasing power parity - $45.1 billion (1999 est.)

GDP - real growth rate  1.5% (1999 est.)

GDP - per capita  purchasing power parity - $1,600 (1999 est.)

GDP - composition by sector  agriculture:26%

industry:18%

services:56% (1999 est.)

Population below poverty line  42% (1992 est.)

Household income or consumption by percentage share  lowest 10%:1.2%

highest 10%:47.7% (1992)

Inflation rate (consumer prices)  6% (1999 est.)

Labor force  9.2 million (1998 est.)

Labor force - by occupation  agriculture 75%-80%

Unemployment rate  50% (1998 est.)

Budget  revenues:$2.91 billion

expenditures:$2.97 billion, including capital expenditures of $NA (2000 est.)

Industries  small-scale consumer goods (plastic, furniture, batteries, textiles, soap, cigarettes, flour), agricultural products processing; oil refining, cement; tourism

Industrial production growth rate  1% (1999 est.)

Electricity - production  4.23 billion kWh (1998)

Electricity - production by source  fossil fuel:8.27%

hydro:82.74%

nuclear:0%

other:8.99% (1998)

Electricity - consumption  4.078 billion kWh (1998)

Electricity - exports  0 kWh (1998)

Electricity - imports  144 million kWh (1998)

Agriculture - products  coffee, tea, corn, wheat, sugarcane, fruit, vegetables; dairy products, beef, pork, poultry, eggs

Exports  $2.2 billion (f.o.b., 1999 est.)

Exports - commodities  tea, coffee, horticultural products, petroleum products (1995)

Exports - partners  Uganda 16%, UK 13%, Tanzania 13%, Egypt 5%, Germany 5% (1998)

Imports  $3.3 billion (f.o.b., 1999 est.)

Imports - commodities  machinery and transportation equipment, petroleum products, iron and steel

Imports - partners  UK 12%, UAE 9%, US 8%, Japan 8%, Germany 6%, India 4% (1998)

Debt - external  $6.5 billion (1998)

Economic aid - recipient  $457 million (1997)

Currency  1 Kenyan shilling (KSh) = 100 cents

Exchange rates  Kenyan shillings (KSh) per US$1 - 73.943 (December 1999), 70.326 (1999), 60.367 (1998), 58.732 (1997), 57.115 (1996), 51.430 (1995)