The nation’s average income, the wealth produced annually divided by the population, rises from $999 (about KSh88,000) to $1,246 (KSh109,000). Kenya Global Economic Prospects examines trends for the world economy and how they affect developing countries. For the current 2016 fiscal year, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,045 or less in 2014; middle-income economies are those with a GNI per capita of more than $1,045 but less than $12,736; high-income economies are those with a GNI per capita of $12,736 or more. Kenya became a low-middle-income country in 2014. Expectations High as Senate Meets to Consider Tea Reforms, Real Estate Firm Changes Lives of Differently Abled Kenyans, End of Sonkoism? Affordable Housing for low & middle income earners in Nairobi 3 1.1 Basic General Data Geography and Administration Kenya is situated in the Eastern part of the African continent, between 5 degrees North and 5 degrees South latitude and 24 and 31 degree East longitude. Meanwhile, on Thursday, both warring parties accused one another of launching new attacks in Unity and Upper Nile States, violating the current ceasefire. Kenya is set to be classified as a middle income country, 16 years ahead of schedule, with the release of revised figures for the economy. We'll assume you're ok with this, but you can opt-out if you wish. Small states are especially vulnerable to things like climate change or developmental challenges. The classification tables include all World Bank members, plus all other economies with populations of more than 30,000. Its 2013 growth rate after the rebasing is still only 5.7 percent. The rebasing means debt levels fall as a proportion of GDP. Kenya’s real GDP growth has averaged over 5% for the last decade. Kenya Governance Support Programme (KGSP) 2010-2015; Drivers of Accountability Programme; Peace and Security for Development; Public Financial Management; Success stories from the field. Kenya’s real GDP growth has averaged over 5% for the last decade. Despite this boost in GDP, many observers have noted that this revision does not mean that Kenya has overcome its economic challenges: More than four in 10 Kenyans live in poverty according to the World Bank, and Kenya still has a considerable way to go to achieve 10 percent growth annually as outlined in its Vision 2030 Agenda. The country and lending groups page provides a complete list of economies classified by income, region, and lending status and links to previous years’ classifications. Kenya acquired a lower middle income country status after re-basing in September 2014, Lazarus Amayo, Kenya’s High Commissioner to the United Kingdom (UK) has said. Ambassador to the United Nations Samantha Power warned both Kiir and Machar that if a peace deal is not struck by then, they could expect the U.N. Security Council to issue sanctions against them. On Tuesday, U.S. According to Bloomberg, the boost in GDP also means that the Kenyan government will likely have an easier time accessing commercial loans since “a higher figure for GDP will help to lower Kenya’s debt ratios.” Kenya’s move to revise its GDP comes just months after Nigeria rebased its GDP in April and became the largest economy on the continent. The aim of Kenya Vision 2030 is to create “a globally competitive and prosperous country with a high quality of life by 2030”. Kenya Governance Support Programme (KGSP) 2010-2015. This has catapulted Kenya past Ethiopia, Ghana and Tunisia. Kenya is a lower-middle income economy. Kenya could be the first EAC country to reach Middle Income status by 2020, but only if it achieves its potential of about 6 percent uninterrupted economic growth. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. This week the Mo Ibrahim Foundation released the 2014 Ibrahim Index on African Governance, highlighting incremental improvement in principles of good governance across the continent. The Kenya National Bureau of Statistics has adopted a different definition of the middle class, as anyone spending between KShs 23,670 and KShs 199,999 per month. However, analysts say this is not likely to have any effect on Kenya since investors and lenders have already been treating it as if it were already a middle income country. Commonwealth countries are diverse – they are amongst the world’s biggest, smallest, richest and poorest countries. The World Bank defines nations with GDP per capita of between $1,045 and $4,125 as “lower middle income”. Over the weekend, President Kiir’s government reportedly agreed to implement a federal system of governance in the country as called for by rebel negotiators, signaling a promising step towards a political settlement. Kenya on Friday hit the road to becoming a middle-income nation in five months’ time after authorities said that a statistical review of the economy was under way. The report includes country-specific three-year forecasts for major macroeconomic indicators, including commodity and financial markets. NAIROBI – Kenya has joined the top 10 economies in Africa after growth figures were revised, showing that it had been previously understated by at least 25%. I am inclined to go with this definition for Kenyan purposes, as I feel it is more in line with our spending power. Mike Mbuvi Comes Crashing Down After Meteoric Rise, KQ Aligns Flight Schedule With JKIA Express Rail Service as Prices Slashed, Lord Luigi: College Dropout Minting Profits from Animation. Kenya, Nigeria and 11 other countries have been listed under the Lower Middle-Income Countries by the United Nations Industrial Development Organisation (UNIDO) in a report submitted to the just concluded G20 Summit held in China. Over the past year, however, some countries with historically low governance scores improved significantly, including Côte d’Ivoire and Guinea (which are in the process of recovering from political instability) as well as Niger and Zimbabwe. Main Findings In order to cross the threshold into lower middle income status by 2025, Tanzania will need to sustain per capita growth of approximately 5% per year, equivalent to an overall GDP growth of approximately 7.7%. Although Kenya's economy is the largest and most developed in eastern and central Africa, 36.1% (2015/2016) of its population lives below the international poverty line. The Kenya National Bureau of Statistics findings are the result of more accurate data on key sectors such as property and telecoms. But opting out of some of these cookies may have an effect on your browsing experience. Post was not sent - check your email addresses! Kenya jumps about 10 places globally and now has a larger economy than Guatemala ($54bn), Bulgaria ($53bn), Macao SAR/China ($52bn), Costa Rica ($50bn), Slovenia ($47bn), Lithuania ($46bn) and Lebanon ($44bn). This makes Kenya the ninth-largest economy in Africa and classifies it as a middle-income country since its gross national income (GNI) per capita, $1,160, has surpassed the World Bank threshold of $1,036 to qualify. Necessary cookies are absolutely essential for the website to function properly. b. East Africa's largest economy, Kenya has a set of ambitious targets in its bid to become a middle-income country by 2030. Data for Lower middle income, Kenya from The World Bank: Data Figures released today changing the base calculation year to 2009 from 2001 show a larger increase than had been anticipated, pushing the country into the lower ranks of the World Bank’s so-called middle income nations. These cookies will be stored in your browser only with your consent. The economy’s GDP, measured by annual output of goods and services, has thus increased by the same margin, revised data from the national statistics bureau show. Kenya is a member of the United Nations, Commonwealth of Nations, World Bank, International Monetary Fund, COMESA, International Criminal Court, and other international organisations. However, analysts say this is not likely to have any effect on Kenya since investors and lenders have already been treating it as if it were already a middle income country. While politicians in the country had long built followings based on tribal arithmetic, Sonko did it differently. WASHINGTON, July 1, 2015 – The World Bank’s latest estimates of Gross National Income per capita (GNI) continue to show improved economic performance in many low-income countries, with Bangladesh, Kenya, Myanmar, and Tajikistan now becoming lower-middle income countries, joining those with annual incomes of $1,046 to $4,125. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. Such nations are not eligible for interest-free loans typically offered to poorer nations. 32 of our members are classified as small states. Business Today  is a blog that makes sure you are informed when it comes to business, brings you up to speed with both the local and international news. We also use third-party cookies that help us analyze and understand how you use this website. This website uses cookies to improve your experience. are from the Nairobi Central Station to JKIA has also been halved, from Ksh500 to Ksh250. Approximately 10 million … The index, which gives national, regional and continental scores from 0 to 100 related to four governance indicators (i.e., human development, safety and rule of law, human rights and sustainable economic opportunity), revealed that continent-wide governance performance increased by just 0.9 percent over the past five years, representing a slight decrease from the previous five years’ (2005-2009) growth of 1.2 percent. Success stories from the field; From Trees to Tech; NOWSUD Skills Development Centre; Business. Ms Khan said the rebasing lifted the average per capita income in Kenya to $1,246 "effectively meaning that the country moves to lower middle income status". Kenya is set to be classified as a middle income country, 16 years ahead of schedule, with the release of revised figures for the economy. Kenya—The Quest for Middle-Income Status. This website uses cookies to improve your experience while you navigate through the website. Still, it remains unclear whether the parties will reach a final peace agreement before the deadline set by the mediating body, the Intergovernmental Authority on Development (IGAD), expires in mid-October. This could give the government some leeway for more borrowing to help finance its plans. Kenya’s entry into middle income level has been long in coming. Kenya jumps about 10 places globally and now has a larger economy than Guatemala ($54bn), Bulgaria ($53bn), Macao SAR/China ($52bn), Costa Rica ($50bn), Slovenia ($47bn), Lithuania ($46bn) and Lebanon ($44bn). Consequently, Mo Ibrahim, the founder of the index, called on African governments to prevent this sort of “backsliding” and “remain vigilant and not get complacent.” Furthermore, the index suggests a shift in the “drivers of governance improvements, from economic to political,” according to the Institute of Security Studies, as gains in sustainable economic opportunity and human development have been relatively limited in recent years when compared with progress seen in political participation and human rights. Only four short years ago, he was grappling with uncertainty after being forced to drop out of college due to financial constraints. Kenya, on the other hand, had a growth rate of 5.6 per cent. As a middle-income economy, Kenya will no longer qualify for the many trade concessions it currently enjoys as a low-income country. The country has enjoyed relative robust growth for much of the 2003-2013 decade. Your email address will not be published. However, poverty and income inequality remain persistent challenges. Kenya has crossed the threshold to become a low-middle income country following the rebasing of its National Accounts, including gross domestic product and Gross National Income The size of the economy is 25% larger than previously thought, and Kenya is now the 5th largest economy in Sub-Saharan Africa behind Nigeria, South Africa, Angola and Sudan 3. The programme is guided by Kenya Vision 2030, the country’s economic development blueprint that aims to transform Kenya into a newly industrializing, “middle-income country providing a high-quality life to all its citizens by the year 2030”. These cookies do not store any personal information. 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