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. The country has enjoyed relative robust growth for much of the 2003-2013 decade. Kenya became a low-middle-income country in 2014. Other countries with strong governance records made negligible improvements or declined in their scores, (namely Botswana, Cape Verde, Mauritius, Seychelles and South Africa). 3. 32 of our members are classified as small states. 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. 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. With a GNI of 1,460, Kenya is a lower-middle-income economy. Success stories from the field; From Trees to Tech; NOWSUD Skills Development Centre; Business. 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. Kenya Governance Support Programme (KGSP) 2010-2015; Drivers of Accountability Programme; Peace and Security for Development; Public Financial Management; Success stories from the field. 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, … 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 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". The classification tables include all World Bank members, plus all other economies with populations of more than 30,000. Required fields are marked *, The Senate will on Monday, December 21 meet to consider the Tea Bill. The rebasing means debt levels fall as a proportion of GDP. Economic growth for the year has also been put at 5.7%, up from 4.7%. Small states are especially vulnerable to things like climate change or developmental challenges. 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. This has catapulted Kenya past Ethiopia, Ghana and Tunisia. 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. Kenya today is already a “frontier” economy. Kenya Governance Support Programme (KGSP) 2010-2015. But, when compared to sub-Saharan Africa’s middle-income countries, whose average rate of growth was three per cent, Kenya performed well. 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. Meanwhile, on Thursday, both warring parties accused one another of launching new attacks in Unity and Upper Nile States, violating the current ceasefire. Such nations are not eligible for interest-free loans typically offered to poorer nations. 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. Post was not sent - check your email addresses! The World Bank defines nations with GDP per capita of between $1,045 and $4,125 as “lower middle income”. “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. 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. This category only includes cookies that ensures basic functionalities and security features of the website. While Kenya has a growing entrepreneurial middle class and steady growth, its economic development has been impaired by weak governance and corruption. Your email address will not be published. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. 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. The report includes country-specific three-year forecasts for major macroeconomic indicators, including commodity and financial markets. 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. 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. As a middle-income economy, Kenya will no longer qualify for the many trade concessions it currently enjoys as a low-income country. 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". 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”. 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. 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). This website uses cookies to improve your experience while you navigate through the website. 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. 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. Kenya’s real GDP growth has averaged over 5% for the last decade. 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. 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. These cookies do not store any personal information. This website uses cookies to improve your experience. There are 54 countries in the Commonwealth, in Africa, Asia, the Americas, Europe and the Pacific. It anchors…, Real estate firm Myspace Properties visited Isiolo in the latest phase of their Corporate Social…. 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. 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. But opting out of some of these cookies may have an effect on your browsing experience. We also use third-party cookies that help us analyze and understand how you use this website. Commonwealth countries are diverse – they are amongst the world’s biggest, smallest, richest and poorest countries. 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. Its economic growth is expected to continue at an annual average rate of 5.9 per cent over the next five years. 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. This severe poverty is mainly caused by economic inequality, government corruption and health problems. Seeing the vision Through. 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 … 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). Middle-income countries generally attract greater levels of foreign direct investment, particularly in telecommunications, banks and food companies. 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. Kenya—The Quest for Middle-Income Status. 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