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Political Risk Analysis Kenya 2012

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Political Risk Analysis Kenya 2012
Political Risk Analysis KENYA
Table of contents
1. OVERVIEW 3
1.1. GEOGRAPHIC FEATURES 3
1.2. CLIMATIC CONDITIONS 3
1.3. POPULATION 4
1.4. BACKGROUND OF KENYA’S ECONOMY (1960-2010) 5
2. POLITICAL CRITERIA 8
2.1. GENERAL 8
2.2. THE POLITICAL BALANCE OF POWER 9
2.3. PRESENT GOVERNMENT AND HIS ATTITUDES AND PROGRAMS 9
2.4. POLITICAL STABILITY IN KENYA 10
3. CRITERIA RELATED TO DOMESTIC ECONOMY 11
3.1. GENERAL INFORMATION 11
3.2. GDP 11
3.3. MOST IMPORTANT SECTORS AND PRODUCTS 12
3.4. INFLATION RATE 13
3.5. THE GROWTH OF THE POPULATION 14
3.6. DOMESTIC INFRASTRUCTURE 14
4. CRITERIA RELATED TO FOREIGN ECONOMY 15
4.1. IMPORT 2011 16
4.2. EXPORT 2011 17
4.3. THE IMBALANCE IN TRADING 19
4.4. KENYAN CURRENCY 20
4.5. KENYAN MONETARY POLICY 21
4.6. KENYAN’S DEBT SITUATION 21
5. CONCLUSION 23
6. SUMMARY 26

1. OVERVIEW
1.1. GEOGRAPHIC FEATURES

Kenya covers an area of 582,646 square kilometers.

The land stretches from the sea level (Indian Ocean) in the east, to 5,199 meters at the peak of the snow-capped Mount Kenya. From the coast, the altitude changes gradually through the coastal belt and plains (below 152 meters above sea level), the dry intermediate low belt to what is known as the Kenya Highlands (over 900 meters above sea level).

The monotony of terrain in the low belt is broken by residual hills, masses of broken boulders and inselbergs. Settlement is confined to places where water can be found. Wildlife are masters of the greater part of the low belt. The famous Amboseli Game Reserve and Tsavo National Parks are situated here.

The Great Rift Valley bisects the Kenya Highlands into east and west. Mount Kenya is on the eastern side. The Highlands are cool and agriculturally rich. Both large and small holder farming is carried out in the highlands.

The Lake Victoria Basin is dominated by Kano plains which are suited for farming through irrigation. The northern part of Kenya is plain and arid. However, a variety of food

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