World Bank2017-06-162017-06-162011-06https://hdl.handle.net/10986/27254Over the last decade, Kenya's society and economy have changed fundamentally and these deep trends will continue. Rapid population growth and urbanization will create many new challenges which need to be managed well to support Kenya's economic take-off in the medium-term. This fourth edition of the Kenya economic update argues that Kenya can turn the tide in turbulent times and make the most of the ongoing structural shifts. In 2011, Kenya will need to address short-term domestic and international shocks, including higher inflation, pressures on the exchange rate and, most importantly, a volatile political environment. The government will need to navigate through these shocks successfully and to continue with its economic reform program to achieve higher growth. At the same time, the government will be making major strategic decisions in Kenya's decentralization architecture which will shape the medium-term development prospects of the country. Economic success is possible, as the 5.6 percent growth in 2010 has shown. If growth will accelerate to an average of 6 percent this decade, Kenya will achieve middle income country status by 2019.en-USCC BY 3.0 IGOACCOUNTABILITY STRUCTURESADVERSE SHOCKSAFFORDABLE HOUSINGAGRICULTUREAIRPORTBALANCE OF PAYMENTSBANK BRANCHESBANK RATEBASIS POINTSBEST MARKETBILLBRANCH NETWORKSBUDGET DEFICITBUFFERSBUSINESS CONFIDENCEBUSINESS ENVIRONMENTCAPACITY CONSTRAINTSCAPITAL FLIGHTCAPITAL INVESTMENTSCARSCASH RESERVECASH TRANSFERSCENTRAL BANKCOMMERCIAL BANKSCOMMODITYCOMMON MARKETCOMMUTERSCONSUMER PRICE INDEXCONSUMERSCREDIT GROWTHCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEBTDEMOGRAPHICDEMOGRAPHIC CHANGEDEMOGRAPHIC CHANGESDEPOSITDEPOSIT RATESDEVELOPING COUNTRIESDEVELOPING ECONOMIESDEVELOPMENT ASSISTANCEDEVELOPMENT STRATEGYDIVIDENDDIVIDENDSDRIVINGECONOMIC DEVELOPMENTSECONOMIC EXPANSIONECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC REFORMECONOMIC SHOCKSECONOMIES OF SCALEEMERGING MARKETSENABLING ENVIRONMENTEQUIPMENTEXCESS LIQUIDITYEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXCHANGE RATESEXPANSION OF EXPORTSEXPENDITURESEXPORT BASEEXPORT EARNINGSEXPORT GROWTHEXPORT MARKETSEXPORT PERFORMANCEEXPORTEREXPORTERSEXPORTSEXTERNAL SHOCKSEXTREME POVERTYFINANCIAL CRISISFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFISCAL DEFICITFISCAL DEFICITSFISCAL POLICYFOOD PRICESFORECASTSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTORSFREIGHTFREIGHT SERVICESFUELFUEL PRICEFUEL PRICESGDPGDP PER CAPITAGLOBAL ECONOMIESGLOBAL ECONOMYGLOBAL EXPORTGLOBAL EXPORTSGLOBAL MARKETSGOVERNMENT EXPENDITUREGROWTH RATEGROWTH RATESHIGH TRANSPORTHIGH-SPEED TRAINHOLDINGIMBALANCEIMPORTIMPORT COSTSIMPORTSINCOMEINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE PROJECTSINSURANCEINTEREST RATESINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTMENT FLOWSINVESTOR CONFIDENCELABOR MARKETLAND TRANSPORTLEVERAGELEVIESLIFE EXPECTANCYLIQUIDITYLOCAL ECONOMYMACROECONOMIC INDICATORSMACROECONOMIC STABILITYMARKET ACCESSMIDDLE INCOME COUNTRYMONETARY FUNDMONETARY POLICIESMONETARY POLICYNEW MARKETNEW MARKETSNEW PRODUCTSNON-PERFORMING LOANSOIL PRICEOIL PRICESOUTPUTOUTSOURCINGPER CAPITA INCOMEPOLICEPOLICY RESPONSEPRICE INCREASEPRICE INCREASESPRIVATE INVESTMENTPRIVATE SECTOR GROWTHPRIVATE SECTOR INVESTMENTPROFIT MARGINSPUBLIC DEBTPUBLIC INVESTMENTPUBLIC POLICYRAILRAILWAYRAILWAY LINERAILWAY SYSTEMREAL ESTATEREAL GROWTH RATEREFORM PROGRAMREGIONAL MARKETSREPOREPO RATEROADROAD LINKSROADSROUTESSAVINGSSAVINGS RATESCANDALSHORT TERM INTEREST RATESSOCIAL DEVELOPMENTSTOCK EXCHANGESTOCK MARKETSTOCK MARKET DECLINESSTOCKSSTREETSSTRUCTURAL CHANGESUPPLY SHOCKTARIFF BARRIERSTAXTOTAL CREDITTOTAL EXPORTTOTAL IMPORTSTRADE DEFICITTRADE SHOCKSTRADINGTRADING PARTNERTRADING PARTNERSTRADING VOLUMESTRAFFICTRANSITTRANSIT CORRIDORTRANSPORTTRANSPORT COSTSTRANSPORT EQUIPMENTUNCERTAINTYUPWARD PRESSUREURBANIZATIONVALUE ADDEDVEHICLEVEHICLESWAGESWAREHOUSEWORLD MARKETSReportWorld Bank10.1596/27254