TRALAC - Trade Law Centre

Country Info: Kenya

Economic Background

Kenya, a leading developing country in East Africa, has been a significant beneficiary under AGOA and is one of the leading apparel exporters to the US in sub-Saharan Africa.  

Kenya has been hampered by corruption and by reliance upon several primary goods whose prices have remained low. Low infrastructure investment threatens Kenya's long-term position as the largest East African economy. In the key December 2002 elections, Daniel MOI's 24-year-old reign ended, and a new opposition government took on the formidable economic problems facing the nation. After some early progress in rooting out corruption and encouraging donor support, the Kibaki government was rocked by high-level graft scandals in 2005 and 2006.

In 2006, the World Bank and IMF delayed loans pending action by the government on corruption. The international financial institutions and donors have since resumed lending, despite little action on the government's part to deal with corruption. Unemployment is very high.

The country has experienced chronic budget deficits, inflationary pressures, and sharp currency depreciation - as a result of high food and fuel import prices. The discovery of oil in March 2012 provides an opportunity for Kenya to balance its growing trade deficit if the deposits are found to be commercially viable and Kenya is able to develop a port and pipeline to export its oil. (Source: World Factbook, 2013)

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Kenya - National AGOA Strategy

Kenya - National AGOA Strategy

The preferential market access granted to Kenya and other African countries through the Africa Growth and Opportunity Act (AGOA) has played a critical role in spurring Kenya’s exports with the US. This has been most dramatic in the case of the textiles and apparel sector, which grew at 44% a year in the few years after AGOA’s passage. In effect, AGOA has created an apparel industry in Kenya on a scale that the country would unlikely have...

Organisation USAID / Chemonics International
Publish Date 28 June 2012
View details D Size: 1 MB

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