Chamber of Commerce Country Factsheet Last update: 09.02.2018
Your advisors at the Chamber of Commerce
- Thomas Bertrand+352423939337
- Steven Koener+352423939379
Paleontologists believe people may first have inhabited Kenya about 2 million years ago. In the 700s, Arab seafarers established settlements along the coast, and the Portuguese took control of the area in the early 1500s. More than 40 ethnic groups reside in Kenya. Its largest group, the Kikuyu, migrated to the region at the beginning of the 18th century.
The land became a British protectorate in 1890 and a Crown colony in 1920, called British East Africa. Nationalist stirrings began in the 1940s, and in 1952 the Mau Mau movement, made up of Kikuyu militants, rebelled against the government. The fighting lasted until 1956.
On Dec. 12, 1963, Kenya achieved full independence. Jomo Kenyatta, a nationalist leader during the fight to win independence who had been jailed by the British, was its first president.
From 1964 to 1992, the country was ruled as a one-party state by the Kenya African National Union (KANU), first under Kenyatta, and then under Daniel arap Moi. Demonstrations and riots put pressure on Moi to allow multiparty elections in 1992
Kenya is the economic and transport hub of East Africa. Kenya’s real GDP growth has averaged over 5% for the last seven years. Since 2014 Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. While Kenya has a growing entrepreneurial middle class and faster growth, its economic and development trajectory is threatened by weak governance and corruption. Unemployment and under-employment are high, but reliable numbers are hard to find.
Agriculture remains the backbone of the Kenyan economy, contributing 25% of GDP. About 80% of Kenya’s population of roughly 42 million work at least part-time in the agricultural sector, including livestock and pastoral activities. Over 75% of agricultural output is from small-scale, rain-fed farming or livestock production.
Inadequate infrastructure continues to hamper Kenya’s efforts to improve its economic growth to the 8-10% range so that it can meaningfully address poverty and unemployment. The KENYATTA administration sought external investment in infrastructure development. International financial institutions and donors remain important to Kenya's economic growth and development, but Kenya has also successfully raised capital in the global bond market. Kenya issued its first sovereign bond offering in mid-2014. Nairobi has contracted with a Chinese company to construct a new standard gauge railway connecting Mombasa and Nairobi, with completion expected in 2017. The country is in the process of devolving some state revenues and responsibilities to the counties. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Chronic budget deficits, including a shortage of funds in mid-2015, hampered the government’s ability to implement proposed development programs, but the economy is back in balance with many indicators, including foreign exchange reserves, interest rates, inflation, and FDI moving in the right direction.
Tourism holds a significant place in Kenya’s economy. Multiple terror attacks by the Somalia-based group al-Shabaab in the time since the 2013 attack on Nairobi’s Westgate mall, which killed at least 67, had a negative effect on international tourism earnings, but the sector is starting to recover. Kenya’s success in hosting a series of incident-free high-profile events in the second half of 2015, including the visit of US President Obama, has helped improve the outlook for tourism.
Source: The IMF Statistics - Kenya
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
Air Services agreement
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Kenya
Le Luxembourg est représenté par:
Ambassade Royale des Pays-Bas à Nairobi
Poste compétent pour les affaires consulaires:
Ambassade du Royaume de Belgique à Nairobi
Les demandes de visas pour se rendre au Luxembourg sont à adresser à la représentation de:
Ambassade du Royaume de Belgique à Nairobi
Attaché(e) économique et commercial(e) - (AWEX)
M. Ivan Korsak
Ambassade de Begique
Limuu Road, Muthaïga, Nairobi
P.O. Box 30 461 Nairobi
Tel: 00254 20 71.22.547
Fax: 00254 20 71.22.613
Country risk as defined by Office du Ducroire for Kenya
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other Useful Links:
- The CIA World Factbook on Kenya
- Présentation de la République du Kenya par trésor
- La République du Kenya sur le site de l'AWEX
- Doing Business in Kenya
- Das ist Kenia
- Economic Freedom Index - Kenya
The Chamber of Commerce and the country
- 06.05.2015 - 08.05.2015