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Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable. This percentage is calculated from the number of mobile cellular subscriptions per 100 adults. Occasionally a single user will have more than one mobile subscription and so it is possible for this value to exceed 100%. 190 countries ranked This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Disclosed share of foreign investment in the clean energy sector (of both local and foreign investment in clean energy, this tells us the amount of foreign investment in clean energy). This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. As per the 2017 EAC common external tariff As per the 2017 EAC common external tariff As per the 2017 EAC common external tariff As per the 2020 Finance Bill (law not available online at the time of writing) As per the 2020 Finance Bill (law not available online at the time of writing) As per the 2020 Finance Bill (law not available online at the time of writing) The median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Refers to all types of entry ports. Unit is days. Year is 2018, unless specified otherwise. The real economic growth, or real GDP growth rate, measures economic growth as it relates to the GDP from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms. The real economic growth rate considers inflation in its measurement of economic growth, unlike the nominal GDP growth rate, which does not. 167 countries ranked. Scores are averaged across 2012, 2014, 2016 and 2018 with the last year weighing most of the score. See "Source" below for more details.

The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.

Overview

Kenya’s economy continues to show strength, although gross domestic product (GDP) contracted slightly to 5.6% in 2019, down from 6.3% in 2018. This is in line with historical GDP growth hovering around the 5% mark for the period 2015 - 2017. GDP managed to outpace population growth, increasing per capita GDP by an annual average of 8% for the same period. The country’s investment rating was downgraded by Moody’s from B1 to B2 in February 2018, while the country’s Standard & Poor’s (S&P) rating was maintained at B+.

Inflation in Kenya rose slightly to 5.2% in 2019, from 4.7% in 2018 and down from its recent high of 8% in 2017. The Kenyan shilling (Ksh) has remained relatively stable against the US dollar over the last few years, trading around the Ksh100 mark. Toward the end of 2019, exchange rates relative to the dollar were back at 2016 levels of around Ksh112 after peaking at Ksh125 in the first quarter of 2018.

Kenya has seen a four-fold increase in inflow of foreign direct investment (FDI) in recent years, from less than €360 million in 2016 to more than €1.38 billion in 2018. This represents a proportional increase of 1% of national GDP in two years. Investment in Kenya is driven and supported largely by the Kenyan Investment Authority (KenInvest), a statutory body with the mandate to develop eight key sectors, including energy. Kenya has also taken significant strides to improve their business environment, earning them the 61st spot on the World Bank's business ranking in 2019, up from 136 in 2015.

Investment in clean energy in 2018 exceeded €1 billion, a major increase from 2014 and 2015 annual figures below €130 million. The proportion of foreign investment in clean energy contracted from 96% in 2017 to 77% in 2018, potentially indicating increasing local investment in the sector. Kenya had favourable tariffs, taxes and duties on renewable energy technologies, but this was reversed in June 2020 with the release of the 2020 Finance Bill. The bill places a standard VAT rate of 14% on solar panels, wind turbines and batteries. In line with the East Africa Community Common External Tariff, solar panels and wind turbines still incur zero import duties, while a duty of 35% is charged on batteries.
Regional affiliation
AU, COMESA, EAC, ICGLR
Official language(s)
English, Swahili
National currency
Kenyan Shilling
Presence of port
Yes
Port of Mombasa
Next planned election and cycle length
2022 - 4 years

Demographics

Population
% urban population of total population
% rural population of total population
Population growth rate
Working age (15-64) share of total population
Working age (15-64)
Rest of population
Urbanisation rate (% urban population growth)

Connectivity

Mobile telecom operators
Airtel
Jamii
Safaricom
Telkom Kenya/Orange
All three connectivity indicators
% penetration of mobile cellular subscriptions
% penetration of mobile money
% population with access to internet

Logistics, Import duties and value added tax

Logistics

Median lead time to import
2018
4 days
Aggregated Logistics Performance Index ranking
2018
63

Import Duties and Value-Added Tax

Import Duties
Solar panels
Wind turbines
Batteries (for renewable energy storage)
VAT
Solar Panels
Wind turbines
Batteries (for renewable energy storage)

Business intelligence

Energy Ranking

Climatescope ranking
2019
5
2018
16
2017
8
2016
10
2015
6
WB RISE ranking
2018
69
2016
47
2014
6

Economy

GDP
Real GDP growth
GDP/capita, real
SSA average
GDP/capita, real
SSA average
GDP/capita, real
Debt to GDP ratio (gross debt)
Inflation rate
Exchange rate
Currency exchange rate vs. EUR and USD
Currency exchange rate vs. EUR
Currency exchange rate vs. USD
Total volume of clean energy investment
% foreign investment in clean energy
2018
77.00%
2017
96.00%
Methodologies
Get to know how this Country Brief was developed
Read more
Contact
Questions or feedback are always welcome
info@get-invest.eu