This report analyzes the recent performance of the Kenyan economy and provides an assessment of the medium term prospects under different assumptions. The key areas that are analyzed include recent macroeconomic performance, governance, social economic development, and the main sectors of the economy such as agriculture, manufacturing, trade and foreign policy, financial services, tourism, micro and small enterprises, infrastructure and economic services, and environment and natural resources.
The theme of the report is Creating an Enabling Environment for Stimulating Investment for Competitive and Sustainable Counties. This is timely as the implementation of devolution gathers full momentum. The Constitution and the County Governments Act No. 17 of 2012 envisage that the 47 county governments will play an important role in Kenya's economic development. The Kenyan economy is on a strong recovery path, and the medium term prospects are positive, predicated on a smooth transition to devolved governance system, continued implementation of the reform agenda as outlined in the Medium Term Plan and Vision 2030, regional stability and security, favourable weather conditions and a stable global economic environment. Nonetheless, the government will have to enhance capacity and policy flexibility to respond effectively to the changing policy environment.