(Last updated 20 Jan 2012)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Kenya. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Kenya is an agriculturally dependent country with the main cash crops being tea and coffee. Kenya also boasts of a significantly productive dairy industry. There exists a sizeable manufacturing sector, which produces cement, drinks, tobacco, rubber and metal products amongst other goods.

The mining industry is still small, with opportunities for growth. In the service sector, tourism is the largest industry and principal source of foreign exchange.

Kenya is a founding member of the East African Community (EAC). The EAC aims at widening and deepening co-operation among the Partner States in, among others, political, economic and social fields for their mutual benefit. To this extent the EAC countries established a Customs Union in 2005 and are working towards the establishment of a Common Market by 2010, subsequently a Monetary Union by 2012 and ultimately a Political Federation of the East African States.

This has resulted in a larger market with the regional bloc consisting of Burundi, Kenya, Rwanda, Tanzania and Uganda with a combined population of more than 125 million people, land area of 1.82 million sq km and a combined gross domestic product of $60 billion (est. 2008).

(Source: East African Community Portal)

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Kenya is a republic in which executive power resides with the president, the vice-president and cabinet. The central legislative body is the unicameral National Assembly consisting of 210 directly elected representatives, 12 nominated members and two ex-officio members. Elections are held every five years.

Until the most recent elections, Kenya had enjoyed a long period of political stability. Kenya is one of the few states in East Africa not to have become involved in an external conflict and has led peace negotiations in Somalia and Sudan. Kenya also has a strong record of participation in UN peacekeeping operations worldwide, including in East Timor.

(Source: Department of Foreign Affairs and Trade country brief)

Trade relations and statistics

Kenya is the regional hub for trade and finance in East Africa. Through its strategic geographical location, Kenya has emerged as a significant player in regional trade, investment, infrastructure development and general economic growth.

Kenya is also a member of the Preferential Trade Area (PTA) agreement embracing countries in the Common Market for Eastern and Southern Africa. Exports and imports within member countries enjoy preferential tariff rates. Exporters to the PTA regional market (19 countries of eastern and southern Africa) receive tax advantages and have the option to trade in local currencies.

Australia’s relations with Kenya are based on Kenya’s key role and position in East Africa and its importance in multilateral bodies such as the United Nations, the Commonwealth and the World Trade Organization.

Please see the Department of Foreign Affairs and Trade country economic fact sheet. for key trade statistics.