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. 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. The aim of Kenya Vision 2030 is to create “a globally competitive and prosperous country with a high quality of life by 2030”. 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. b. 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%. We stand out from the rest. 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. are from the Nairobi Central Station to JKIA has also been halved, from Ksh500 to Ksh250. According to the World Bank’s data, Kenya ‘s GDP per capita grew 248 per cent between 2000 and 2012 rising from US$399 in 2000 to $991 in 2012. 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. 3. Post was not sent - check your email addresses! 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. On Tuesday, U.S. Necessary cookies are absolutely essential for the website to function properly. The Kenya National Bureau of Statistics findings are the result of more accurate data on key sectors such as property and telecoms. Small states are especially vulnerable to things like climate change or developmental challenges. This website uses cookies to improve your experience while you navigate through the website. While politicians in the country had long built followings based on tribal arithmetic, Sonko did it differently. “Promoting equal opportunities across the country and linkages in the subregion will strengthen Kenya’s transformation from a low middle income to a middle-income country by 2030,” said Keith Hansen, World Bank Country Director for Kenya. Let me now turn to my third topic and the main theme of today’s meeting—Kenya’s quest to become a middle-income economy. 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. The rebasing means debt levels fall as a proportion of GDP. 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. The classification tables include all World Bank members, plus all other economies with populations of more than 30,000. It anchors…, Real estate firm Myspace Properties visited Isiolo in the latest phase of their Corporate Social…. Kenya became a low-middle-income country in 2014. Its economic growth is expected to continue at an annual average rate of 5.9 per cent over the next five years. 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. 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. While Kenya has a growing entrepreneurial middle class and steady growth, its economic development has been impaired by weak governance and corruption. Other countries with strong governance records made negligible improvements or declined in their scores, (namely Botswana, Cape Verde, Mauritius, Seychelles and South Africa). 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. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. 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 These cookies will be stored in your browser only with your consent. Seeing the vision Through. Approximately 10 million … 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. Your email address will not be published. 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". We'll assume you're ok with this, but you can opt-out if you wish. To do that, Kenya’s GNI would have to increase five-fold from $1,160 per capita to $5,600, the World Bank’s projected threshold for upper middle income status in 2030. Kenya, on the other hand, had a growth rate of 5.6 per cent. Required fields are marked *, The Senate will on Monday, December 21 meet to consider the Tea Bill. Guidance for the Brookings community and the public on our response to the coronavirus (COVID-19) », Learn more from Brookings scholars about the global response to coronavirus (COVID-19) ». This severe poverty is mainly caused by economic inequality, government corruption and health problems. Kenya Global Economic Prospects examines trends for the world economy and how they affect developing countries. 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”. 32 of our members are classified as small states. Kenya Governance Support Programme (KGSP) 2010-2015; Drivers of Accountability Programme; Peace and Security for Development; Public Financial Management; Success stories from the field. The nation’s rebased Gross Domestic Product for last year is now estimated at Ksh4.76 trillion (about $55 billion), up from KSh3.8 trillion, the minister for devolution and planning, Anne Waiguru, said. 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. The report includes country-specific three-year forecasts for major macroeconomic indicators, including commodity and financial markets. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. 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. 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, if Kenya’s economy only grows at 3.7 percent (the average of the last decade), the train will likely be overtaken by Rwanda, Tanzania and Uganda in the next ten years. 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. 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%. Kenya is a lower-middle income economy. The equator cuts across the country from East to West. announced that Kenya’s gross domestic product (GDP) is 25 percent larger, better data from the high-performing sectors, will likely have an easier time accessing commercial loans, just months after Nigeria rebased its GDP, does not mean that Kenya has overcome its economic challenges, More than four in 10 Kenyans live in poverty, has a considerable way to go to achieve 10 percent growth, continent-wide governance performance increased by just 0.9 percent, agreed to implement a federal system of governance, remains unclear whether the parties will reach a final peace agreement, accused one another of launching new attacks, Unpacking the misconceptions about Africa’s food imports, Lessons from the proliferating mini-grid incentive programs in Africa, How to reignite Africa’s growth and avoid the need for future debt jubilee. Kenya was reclassified as a middle-income country in early October, but as this east African nation comes to terms with its new ranking, it is becoming clear … But, when compared to sub-Saharan Africa’s middle-income countries, whose average rate of growth was three per cent, Kenya performed well. Such nations are not eligible for interest-free loans typically offered to poorer nations. But opting out of some of these cookies may have an effect on your browsing experience. Kenya Governance Support Programme (KGSP) 2010-2015. Your email address will not be published. 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. We also use third-party cookies that help us analyze and understand how you use this website. Meanwhile, on Thursday, both warring parties accused one another of launching new attacks in Unity and Upper Nile States, violating the current ceasefire. Mongolia and Paraguay move from lower middle … 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. Success stories from the field; From Trees to Tech; NOWSUD Skills Development Centre; Business. 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. 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. to transform into a country akin to these middle income comparator countries. Its 2013 growth rate after the rebasing is still only 5.7 percent. Economic growth for the year has also been put at 5.7%, up from 4.7%. I am inclined to go with this definition for Kenyan purposes, as I feel it is more in line with our spending power. The country has enjoyed relative robust growth for much of the 2003-2013 decade. You also have the option to opt-out of these cookies. Commonwealth countries are diverse – they are amongst the world’s biggest, smallest, richest and poorest countries. These cookies do not store any personal information. 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, … This has catapulted Kenya past Ethiopia, Ghana and Tunisia. 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 Vision 2030 aims to transform Kenya into a newly industrializing, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment. Middle-income countries generally attract greater levels of foreign direct investment, particularly in telecommunications, banks and food companies. 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. There are 54 countries in the Commonwealth, in Africa, Asia, the Americas, Europe and the Pacific. This could give the government some leeway for more borrowing to help finance its plans. Only four short years ago, he was grappling with uncertainty after being forced to drop out of college due to financial constraints. With a GNI of 1,460, Kenya is a lower-middle-income economy. Kenya’s real GDP growth has averaged over 5% for the last decade. Data for Lower middle income, Kenya from The World Bank: Data Kenya’s real GDP growth has averaged over 5% for the last decade. Kenya’s “rebased” GDP—which takes into account a revised base year of 2009 (from 2001) as well as better data from the high-performing sectors of agriculture, manufacturing, telecommunications and real estate—is now estimated at $53.3 billion (compared to $42.6 billion before the revision). On Tuesday, Kenyan Planning Minister Anne Waiguru announced that Kenya’s gross domestic product (GDP) is 25 percent larger than previously thought after it was recalculated using updated statistics. However, poverty and income inequality remain persistent challenges. 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. The nation’s average income, the wealth produced annually divided by the population, rises from $999 (about KSh88,000) to $1,246 (KSh109,000). The World Bank defines nations with GDP per capita of between $1,045 and $4,125 as “lower middle income”. 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). 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). Direct discussions between representatives of the warring parties in South Sudan are taking a positive turn, according to the Sudan Tribune. 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. East Africa's largest economy, Kenya has a set of ambitious targets in its bid to become a middle-income country by 2030. 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. 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. This category only includes cookies that ensures basic functionalities and security features of the website. Expectations High as Senate Meets to Consider Tea Reforms, Real Estate Firm Changes Lives of Differently Abled Kenyans, End of Sonkoism? Kenya today is already a “frontier” economy. 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. 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. It aims to transform Kenya into “a newly-industrialising, middle income country providing a high quality of life to all its citizens in a clean and secure environment". As a middle-income economy, Kenya will no longer qualify for the many trade concessions it currently enjoys as a low-income country. 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. Sorry, your blog cannot share posts by email. This website uses cookies to improve your experience. 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