Wayzata World Factbook 1995/World Factbook - 1995 Edition - Wayzata Technology (1995).iso/mac/text/Build/orig BACKGR/BNOT0060.TXT

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National Trade Data Bank
ITEM ID     : ST BNOTES KENYA
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - KENYA

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1994
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | KENYA

BACKGROUND NOTES:  KENYA
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
U.S. DEPARTMENT OF STATE

MAY 1994
Official Name:  Republic of Kenya

PROFILE

Geography
Area:  582,646 sq.  km.  (224,960 sq mi.); slightly smaller than Texas.
Cities:  Capital- -Nairobi (pop.  1.2 million in 1991).  Other cities--Mombasa
(450,000), Kisumu (150,000), Nakuru (150,000).

Terrain:  Kenya rises from a low coastal plain on the Indian Ocean in a series
of mountain ridges and plateaus which stand above 3,000 meters (9,000 ft.) in
the center of the country.  The Rift Valley bisects the country above Nairobi
opening up to arid plain in the north.  Mountain plains cover the south before
descending to the shores of Lake Victoria in the west.

Climate:  Varies from the tropical south, west, and central regions to arid
and semi-arid wasteland in the north and the northeast.

People
Nationality:  Noun and adjective--Kenyan(s).  Population (1992 est.):  26
million.  Annual growth rate (1992 est.):  3.4%.  Ethnic groups:
African--Kikuyu 21%, Luhya 14%, Luo 13%, Kalenjin 11%, Kamba 11%, Kisii 6%,
Meru 5%.  Non-African--Asian, European, Arab 1%.  Religions:  Indigenous
beliefs 24%, Protestant 40%, Roman Catholic 30%, Muslim 6%.  Languages:
English, Swahili, many local ethnic languages.  Education:  Years
compulsory--none, but first 8 yrs.  of primary school are provided free by
government.  Attendance--83% for primary grades.  Literacy (in English)--59%.
Health:  Infant mortality rate--70/1,000.  Life expectancy--59 yrs.  Work
force (1.4 million wage earners):  Public sector--48%.  Industry and
commerce--21%.  Agriculture--21%.

Government
Type:  Republic.
Independence:  December 12, 1963.
Constitution:  1963.
Branches:  Executive--president (chief of state, head of government,
commander-in-chief of armed forces).  Legislative--unicameral National
Assembly (parliament).  Judicial-- Court of Appeal, High Court, various lower
courts.  Administrative subdivisions:  42 rural districts, joined to form 7
rural provinces.  Nairobi area has special status.  Political Parties:  Ruling
Party:  Kenya African National Union.  Suffrage:  Universal at 18.  Flag:
Black, red, and green horizontal bands from top to bottom separated by narrow
white stripes.  A warrior's shield and crossed spears are centered on flag.

Economy
GDP (1992):  $8.7 billion.
Annual growth rate (1992):  -0.5%.
Per capita income:  $350.
Natural resources:  Wildlife, land.

Agriculture:  Products--corn, wheat, rice, sugarcane, coffee, tea, sisal,
pineapples, horticultural products, pyrethrum, meat and meat products, hides,
skins.  Arable land--20%.

Industry:  Types--petroleum product, cement, beer, light manufacturing.

Trade:  Exports--$952 million:  coffee, petroleum products, tea, hides and
skins, meat and meat products, cement, pyrethrum, sisal, soda ash, wattle
extract, pineapples.  Major markets--U.K., Germany, Netherlands, U.S., Uganda,
France, Italy, Tanzania, and India.  Imports--$1.8 billion:  crude petroleum,
machinery, vehicles, iron and steel, paper and paper products,
pharmaceuticals, fertilizers, textiles.  Major suppliers--U.K., Germany,
France, Italy, U.S., United Arab Emirates, Saudi Arabia, Japan, India,
Netherlands, and China.

Official exchange rate:  63 Kenya shillings (Ksh)=U.S.$1.


PEOPLE
Kenya's population is varied.  Traditional herders, Arab Muslims, and
cosmopolitan residents of Nairobi contribute to the culture.  The standard of
living in major cities ranks high in Sub-Saharan Africa.  Most city workers
retain links with their rural, extended families and leave the city
periodically to help work on the family farm.  About 75% of the work force is
engaged in agriculture, mainly as subsistence farmers.  The urban sector
employs about 1.4 million people.

The national motto of Kenya is harambee, meaning "pull together." In that
spirit, volunteers in hundreds of communities build schools, clinics, and
other facilities each year and collect funds to send students abroad.

The four state universities enroll about 20,000 students, representing only
40% of the Kenyan students who qualify for admission.


HISTORY
Fossils found in East Africa suggest that proto- humans roamed the area more
than 20 million years ago.  Recent finds near Kenya's Lake Turkana indicate
that the Homo genus of humans lived in the area 2.6 million years ago.

Cushitic-speaking people, who occupied the area from about 1000 BC, received
Arab traders by the first century AD.  Kenya's proximity to the Arabian
Peninsula invited colonization, and Arab and Persian settlements were founded
along the coast by the eighth century AD.  By then, Bantu and Nilotic peoples
had moved into the area.

The Swahili language, a mixture of Bantu and Arabic, developed as a lingua
franca for trade between the different peoples.  Arab dominance was eclipsed
by the arrival in 1498 of the Portuguese, who gave way in turn to Islamic
control under the Imam of Oman in the 1600s.  Britain established its
influence in the 19th century.

The colonial history of Kenya dates from the Berlin Conference of 1885, when
the European powers first par-titioned East Africa into spheres of influence.
In 1895, the British Gov- ernment established the East African Protectorate
and, soon after, opened the fertile highlands to white settlers.  The settlers
were allowed a voice in government even before it was officially made a
British colony in 1920, but Africans were prohibited from direct political
participation until 1944.

From October 1952 to December 1959, Kenya was under a state of emer-gency
arising from the "Mau Mau" rebellion against British colonial rule.  During
this period, African participation in the political process increased rapidly.
The first direct elections for Africans to the Legislative Council took place
in 1957.  Kenya became independent on December 12, 1963, and the next year
joined the Commonwealth.

Jomo Kenyatta, a member of the predominant Kikuyu tribe and head of the Kenya
African National Union (KANU), became Kenya's first president.  The minority
party, Kenya African Democratic Union (KADU), representing a coalition of
small tribes that had feared dominance by larger ones, dissolved itself
voluntarily in 1964 and joined KANU.

A small but significant leftist opposition party, the Kenya People's Union
(KPU), emerged in 1966, led by Jara-mogi Oginga Odinga, a former vice
president and Luo elder.  After the 1969 assassination of a leading government
official, Tom Mboya, and subsequent political tension, the KPU was banned and
its leader detained.  No new opposition parties were formed after 1969, and
KANU became the sole and ruling political party.  At Kenyatta's death in
August 1978, Vice President Daniel arap Moi became interim President.  On
October 14, Moi became President in his own right after he was elected head of
KANU and designated its sole nominee.

In June 1982, the National Assembly amended the constitution, making Kenya a
de jure one-party state, and parliamentary elections were held in September
1983.  The 1988 elections reinforced the one-party system.  In December 1991,
parliament repealed the one-party section of the constitution, allowing other
parties to register.  By early 1992, several new parties had been formed, and
multi-party elections were held in December 1992.  President Moi was reelected
for another five-year term.  Opposition party members won about 45% of the
parliamentary seats; President Moi's KANU party maintains a parliamentary
majority.


GOVERNMENT
The unicameral assembly consists of 188 members elected to a term of up to
five years, plus 12 members appointed by the president.  The president
appoints the vice president and cabinet members from among those elected to
the assembly.  The attorney general and the speaker are ex officio members of
the National Assembly.

The judiciary is headed by a High Court, consisting of a chief justice and at
least 11 associate judges, all appointed by the president.

Local administration is divided among 42 rural districts, each headed by a
presidentially appointed commissioner.  The districts are joined to form seven
rural provinces.  The Nairobi area has special status and is not included in
any district or province.  The government supervises administration of
districts and provinces.

Principal Government Officials
President and Commander in Chief of the Armed Forces--
  Daniel Toroitich arap Moi
Vice President and Minister of Finance--Prof. George Saitoti
Minister Foreign Affairs--Stephen Kalonzo Musyoka
Ambassador to the United States--Benjamin Kipkorir
Ambassador to the United Nations--Raphael Kiilu

Kenya maintains an embassy in the United States at 2249 R Street NW,
Washington, DC 20008 (tel.  [phone]).


POLITICAL CONDITIONS
Since independence, Kenya has maintained remarkable stability during many
changes within the political system.  Although the government has pursued
Africanization in the economic and labor sectors, Asians and Europeans
participate significantly.  Development remains the dominant agenda for the
Moi Administration.


ECONOMY
After independence, Kenya promoted rapid economic growth through public
investment, encouragement of smallholder agricultural production, and
incentives for private (often foreign) industrial investment.  Gross domestic
product (GDP) grew at an annual average of 6.6% from 1963 to 1973.
Agricultural production grew by 4.7% annually during the same period,
stimulated by redistributing estates, diffusing new crop strains, and opening
new areas to cultivation.

Vulnerable to swings in its international terms- of-trade, Kenya has found its
foreign exchange shortages worsened by a rapid rise in import prices,
especially for oil, and a sharp drop in prices for export crops coffee and
tea.

Economic growth has declined since 1973, and real GDP grew by less than 5%
during 1980-91.  Agricultural production, accounting for about one-third of
GDP and almost two-thirds of non- petroleum exports, averaged growth of less
than 4% per year.

Bad weather and decreased international demand contributed to this trend, but
inconsistencies in domestic pricing policy and credit availability, as well as
inadequate marketing systems, have been equally important.

The government must also deal with a rapidly growing population, which has
increased unemployment and strained Kenya's educational facilities.  The
population growth rate (3.4% per year) is one of the world's highest.
Population growth contributes to unemployment, running at 30%-40%.
Joblessness is highest in urban areas, where the formal wage-earning sector is
hard pressed to absorb annual increases.  Pressure on social services is also
most apparent in the cities.

With less than 20% of the land classified as arable and much of that already
densely populated, increases in food crop production have not kept pace with
population growth.  When crops fail because of drought, as in 1984, large
amounts of food must be imported.

Kenya's manufacturing sector suffers from the consequences of earlier policy
decisions.  The initial and rapid growth of industrial production in Kenya was
based on investment in import substitution, often by multi-national companies,
protected by extensive quantitative import barriers against competition.  As a
result, manufacturing firms now tend to be non- competitive.

Following a recessionary slump in the mid- 1980s, the government launched a
wide-ranging structural adjustment program designed to attain real-per-capita
income growth.  With external donors' cooperation in the form of greatly
increased assistance flows from external donors, the government committed
itself to major economic policy changes, including price decontrols,
privatization, parastatal reform, and reduction of government budget deficits.

In addition, an import liberalization scheme was established, agricultural
prices were made somewhat more responsive to market demand, and the private
sector was given a bigger role in marketing agricultural products.  Export
processing zones were established and exporters awarded better incentives.  In
principle, the government agreed to limit the public sector deficit and net
borrowing from the banking sector, but it failed either to curb the rising
budget deficit or implement many reforms.

By mid-1991, the growth rate in agricultural production was 3.4%,
manufacturing was stagnating, and tourism--the major source of foreign
exchange earnings--was in a slump induced by the Gulf war.  The rate of
capital accumulation was declining, inflation was skyrocketing (25%-30%), and
the government deficit was up to 6.7% of GDP.

In November 1991, assistance donors agreed to suspend all programs and cash
assistance pending evidence of active reform measures.  Primary areas of
concern continue to be decreasing the growing budget deficit, scaling back the
civil service, and privatizing some of the most wasteful parastatals
corporations.

Nairobi continues to be a major hub in East Africa with the region's best
transportation linkages, communications infrastructure, and trained personnel.
Thus, it is still a desirable place for foreign firms to maintain branch and
representative offices, although many companies find it difficult to transfer
out dividends.


FOREIGN RELATIONS
Despite internal tensions in Sudan and Ethiopia, Kenya has maintained good
relations with its northern neighbors.  Recent relations with Uganda and
Tanzania have improved as the three countries work for mutual economic
benefit.  The lack of a cohesive government in Somalia prevents normal contact
with that country, although Kenya serves as the major host for refugees from
that conflict.

Kenya maintains a moderate profile in Third World politics.  Kenya's relations
with Western countries are generally friendly, although current political and
economic instabilities are often blamed on Western pressures.


U.S.-KENYAN RELATIONS
U.S.  assistance to Kenya promotes broad-based economic development as the
basis for continued progress in political, social, and related areas of
national life.  U.S.  aid strategy is designed to achieve three major
objectives:

--  Reduced population growth;
--  Increased agricultural productivity; and
--  Increased role of private enterprise in the economy.

It focuses on small farmers and the rural landless, a group that comprises
more than four- fifths of Kenya's poorest citizens and accounts for about
one-quarter of the population.  The U.S.  Peace Corps has more than 165
volunteers in Kenya.

The United States and Kenya have enjoyed cordial relations.  More than 6,000
U.S.  citizens live in Kenya, and about 35,000 Americans visit annually.
About two-thirds of the resident Americans are missionaries and their
families.  U.S.  business investment is about $350 million, primarily in
commerce, light manufacturing, and the tourist industry.

Principal U.S.  Embassy Officials Ambassador--Aurelia Brazeal Deputy Chief of
Mission--E.  Michael Southwick USAID Mission Director--John R.  Westley Public
Affairs Officer (USIS)--Frederick E.V.  La Sor

The U.S.  embassy in Kenya is located at Haile Selassie and Moi Avenues,
Nairobi, PO Box 30137 (tel.  334141; fax 340838).  The U.S.  Consulate General
in Mombasa is in Palli House, Nyerere Avenue, PO Box 88079 (tel.  315101).


Travel Notes
Climate and clothing:  Light- and medium-weight clothing is worn most of the
year.  Sweaters and light raincoats are needed during the rainy seasons.

Customs:  U.S.  citizens entering Kenya need a passport and visa.

Health:  No special precautions are required in Nairobi, and adequate hospital
and outpatient treatment is available in the city.  Outside the capital, avoid
tapwater and unwashed fruits and vegetables.  Anti-malarial tablets and yellow
fever, polio, typhoid, and hepatitis immunizations are recommended for
travelers outside the capital.

Transportation:  Many inter-national airlines serve Nairobi.  Most major towns
are linked by Kenya Airways flights, good passenger train services, and
intercity bus services.  Places of special tourist interest are served by
local light-aircraft companies.  Taxis are abundant in Nairobi.


Published by the United States Department of State -- Bureau of Public Affairs
-- Office of Public Communication -- Washington, DC May 1994 -- Managing
Editor:  Peter A.  Knecht -- Editor:  Christina Macdonald

Department of State Publication 8024 -- Background Notes Series.  Contents of
this publication are not copyrighted unless indicated.  If not copyrighted,
the material may be reproduced without consent; citation of the publication as
the source is appreciated.  Permission to reproduce any copyrighed material
(including photos and graphics) must be obtained from the original source.

For sale by the Superintendent of Documents, U.S.  Government Printing Office,
Washington, DC 20402.