Analysis Report on Kenya From Business/Economic and Security/Political Perspectives

Analysis Country Report on Kenya From Business/Economic and Security/Political Perspectives
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Analysis Country Report on Kenya From Business/Economic and Security/Political Perspectives
Introduction
Over the last decade, Kenya, a country located in East Africa has witnessed significant economic and political strides that have resulted in sustained economic development, political stability, and social development. Nevertheless, inequality, poverty, climate change, corruption, weakening of the private sector, and increased economic vulnerabilities to both external and internal shocks remain key development issues impacting its growth (The World Bank, 2022a). The country has a population of more than 50 million and boasts a leading economy in Sub-Saharan Africa. According to the International Trade Administration (ITA) (2021), although Kenya’s economy is currently witnessing a slump, analysts predict a modest recovery in key sectors such as education, healthcare, construction, and information communication technology (ICT). On the trade statistics and economic indicators, the ITA perceives Kenya as a market-based economy and a logistic, financial, commercial, and economic hub of the East Africa region. The country also has a growing population of young, educated, and tech-savvy English-speaking populace. Besides, Kenya has continued to improve the ease of business operations and has a robust bilateral tie with the United States that promotes investment and trade. Kenya is notably the first Sub-Saharan African country to enter the Free Trade Agreement (FTA) negotiation with the U.S with bilateral trade between the two countries standing at $940 million in 2020 (ITA, 2021). Nevertheless, these figures were lower compared to the previous year of $1.1 billion before the Covid-19 pandemic (ITA, 2021). This analysis of the country Report on Kenya from a business/economic perspective provides details for foreign investors to be mindful of the current and future business instability and maintain strategic dexterity.
As one of the East African countries bordering Ethiopia, Somalia, and Sudan, the three countries historically known for multiple internal crises, Kenya’s security is under threat. There are ongoing tensions between Sudan and Egypt over the Nile water and the Ethiopian ambitious Grand Ethiopian Renaissance Dam project that is likely to result in a geopolitical war. Somalia, a country neighbouring Kenya to the east is also currently facing electoral impasse that would threaten Kenya’s decade of efforts to restore political stability in the area. The country has also been embroiled in a maritime boundary dispute with Kenya, an indication of fraying relationship between the duo. Kenya’s neighbour, South Sudan has frail governance and this is a pointer to an endemic instability in the region. Uganda, another Kenya’s neighbour to the west has perennially been battling with flawed elections with President Yoweri Museveni retaining the presidency since 1986 to date (Gavin, 2021). To the south of Kenya is Tanzania, which though a calm neighbour, ...