ECONOMY OF KENYA
Kenya is an agricultural country and this is the main economic activity carried out by most people in the country. However there is a school of thought that agriculture is the main economic activity not due to the high revenue generated from the activity but due to the large number of people who depend on agricultural activity for their livelihood. Despite all this arguments agriculture remains the backbone of Kenyan economy. Its estimated that 15% of the total Kenyan land is fertile but only 8% have being utilised for agricultural production. However the government in the recent past has launched various projects that aim to fully all the land available so as to increase food security of the county.
Agriculture contributes to twenty four percent of the total gross domestic product (GDP). Some of the crops that help to boost the economy include tea, coffee and horticulture with tea contributing 23% and horticulture 22%. Coffee is the lowest contributor to the GDP due to decline in coffee prices in the major world markets. In 2010 tea recorded the highest volume of exports as compared to other cash crops grown in the country. Between 2005 and 2010, agricultural sector in Kenya grew by 5% and this in turn helped to boost the economy of Kenya. This improvement is attributed to sustainable agricultural projects launched by the government.
This is another sector that is very important to the economy of Kenya due to the many tourist attraction sites in the country. It is estimated that tourism contributes almost 63% to the total GDP making it the highest foreign exchange contributor in the country. The sector has being steadily improving since independence but it suffered a major blow after the post election skirmishes that rocked the country in 2007. Advertisements and promotions of some of the major tourist attraction sites in Kenya in the foreign countries has helped to reverse this decline and so far this initiative has been very effective in attracting more tourists to the country.
INDUSTRY AND MANUFACTURING
Kenya is the most industrialized country in East Africa; these sectors contribute 16% to the total gross domestic product. However plans to expand the sectors aim at expand the various industries and manufacturing plants in the country and this will in turn help to boost the Kenya Economy. Most people in Kenya depend on the various industries and manufacturing plants for employment hence increase in sector will translate to more employment opportunities for Kenya and this will further leading to significant increase in the economy of Kenya. Most of the industries are located in Nairobi, Kisumu and Mombasa since these areas are the main producers of raw products. However Nairobi is preferred due to the good infrastructure and proximity to almost all the government offices. Other countries such as USA and China have helped the county in its plan to increase urbanisation.
MINING AND MINERALS
Kenya is very rich in minerals that are spread all over the country. However the sector has not being fully exploited due to low investment in the sector and lack of machinery and technology to exploit minerals in the country. It contributes to 2% of the total GDP; Soda Ash contributes the highest percentage followed by limestone, salt and fluorspar. In 2005 the total volume of soda ash that is mainly mined from Lake Magadi in the Rift Valley was reported to be more than 1 million tonnes.
Advancement in technology is projected to enhance the mining sector and this will in turn help to enhance the Kenyan Economy as a result of increase in volumes of minerals mined and exported to the various markets all over the world.
FORESTRY AND FISHING
According to a survey carried out this sectors contribute to 1% of the GDP. The low contribution of the sector to the economy of Kenya results from increased degradation of the water catchment areas in the country due to deforestation as the population increases. Pollution of the water bodies results in disruption of the lake and marine ecological systems. However implementation of rules and regulation to govern pollution and land degradation will help to boost and protect these natural resources.
Many businesses have being established in the country such as insurance companies, retail and wholesale shops, telecommunication companies, learning institutions and many more that have a direct impact on Kenya Economy.
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