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Kenya
>> Regional Overview >> Kenya Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 20
THE DEVELOPMENT CHALLENGE: Kenya is at a crossroads. The upcoming general election in 2002, promising the first new president after more than two decades, offers a real political transition and an opportunity for political and economic transformation. There are presently two broad challenges: Kenya's current political and governance structure in which public office is used for private gain; and Kenya's stagnating economic performance. While the problems facing Kenya reflect in part challenges such as recurring droughts, floods, falling export commodity prices, violent conflict and public security concerns, Kenya's poor performance is also due to a policy environment that is not conducive to rapid and sustained economic growth. The new leadership will have the opportunity to restore public confidence and promote economic growth.
Over 13% of the adult population are HIV-positive and HIV is estimated to result in a 1.3% reduction in annual economic growth. Kenya has considerable resources that could allow it to grow at a significantly greater rate than it has over the last decade. Kenya benefits from a hard working, comparatively well educated population; a dynamic entrepreneurial private sector at the microenterprise to the multinational level; a relatively diversified economy; and basic infrastructure, albeit in need of repair and modernization. Compared to most of Africa, Kenya has relative political stability and its government institutions are growing towards those of a mature and effective democracy.
However, over the past 40 years, the population of Kenya has nearly quadrupled, from eight million in the early 1960s to about 30 million today, diminishing the impact of a $10.5 billion gross domestic product (GDP) to a per capita GDP of only $350. HIV sero-prevalence rose from 4.8% of the adult (ages 15 to 49) population in 1990 to 13.5% in 2000. Following decades of steady decline, mortality of children under age five increased by 25% during the 1990s. Malaria continues to be the infectious disease that kills the most children, but HIV/AIDS is becoming an important factor. Despite the reduction in fertility, and the increase in mortality, the population continues to grow by over 2% annually, well in excess of the economic growth rate and far too fast for the country's natural resource base. Over half of Kenya's population lives below the poverty line. Its economic structure and production practices need to be modernized to improve its competitiveness and meet the demands of its rapidly growing population without straining Kenya's limited arable land and natural resource base. Kenya's economic growth rate declined from 1.4% in 1998 to a negative 0.3% in 2001 mainly due to severe drought, poor infrastructure, and insecurity. Widespread corruption and weak governance institutions undermine management of public resources, the effectiveness of the public service, the rule of law, and accountability. Weak governance institutions and increasing population also keep infrastructure such as roads, railway, and telecommunications from needed maintenance or modernization. These weaknesses deter private investment, higher economic growth, job creation, and poverty reduction.
Kenya remains a high priority country for U.S. foreign policy interests. Kenya has consistently supported the United States in its fight against terrorism and transnational threats to U.S. national security. As the third largest economy in sub-Saharan Africa, Kenya is the dominant economy in the Greater Horn of Africa. Kenya, as a center for commercial and economic activity in a regional market of nearly 200 million people, has the potential to promote economic growth and stability throughout the region.
THE USAID PROGRAM:
FY 2002 Estimate: $49.971 million FY 2003 Request: $58.827 million USAID's integrated strategic plan identifies four strategic objectives for which funding is requested: health and family planning, natural resources management, democracy and governance, and economic growth. USAID's program continues and builds upon program successes in crucial areas such as family planning, smallholder agriculture, microenterprise development, democracy and governance, and HIV/AIDS. The population and health program will work to reduce fertility rates and the risk of HIV/AIDS transmission through sustainable, integrated family planning, health services, child survival interventions, health sector reform, and improved health care financing. USAID's increase in FY 2003 resources will expand the fight against HIV/AIDS. The natural resources management program will work to improve natural resources management in targeted biodiverse areas by and for stakeholders and will have the added benefit of contributing significantly to the resumption of economic growth since tourism is Kenya's second largest earner of foreign exchange. The democracy and governance program will work to increase the effectiveness of civil society organizations, increase the independence of Kenya's parliament, and promote a more transparent and competitive electoral process. USAID's program to promote increased rural household incomes will focus on improvements to smallholder agriculture and increased micro-enterprise activities in rural areas.
ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED
The USAID/Kenya program includes the following activities for which USAID is not requesting new funds, but is continuing to expend funds already appropriated.
Number: Title: Last Notified: Planned Completion: 615-004 Bomb Response Program FY02CBJ, p. 244 FY2003 OTHER PROGRAM ELEMENTS: With funding from USAID/Washington, the Kenya program has supported malaria research through the Centers for Disease Control and Prevention. In collaboration with USAID/Washington, three U.S. private voluntary organizations are implementing child survival interventions in Kenya. With funding from USAID's Education for Development and Democracy Initiative and from the Leland Initiative, USAID has helped provide scholarships to secondary school girls from poor families, assisted 22 educational institutions, provided internet connectivity to primary and secondary schools and e-mail services to Kenya's parliament. Funding provided jointly by USAID/Kenya and other regional and bilateral missions working in the region has dramatically increased the use of improved technologies resulting in increased milk production per cow, and increased incomes for small dairy farmers.
OTHER DONORS: Among the leading bilateral donors to Kenya, the United States ranks as the third largest after Japan and the United Kingdom (UK). The main donors to the democracy and governance sector include the UK, the Netherlands, Denmark, Sweden, Germany, the European Union (EU), and Canada. The World Bank, the African Development Bank, Germany, the EU, and Japan support development of non-traditional agricultural exports. USAID is the leading donor in the micro- and small enterprise sector in Kenya. Other donors that support microfinance services (credit and savings) include the UK, the EU, the Netherlands, Denmark, and the United Nations Development Program (UNDP). In the natural resources management (NRM) sector, the major donors include the Netherlands, the UK, Japan, Sweden, Belgium, Finland, Germany, Denmark, the EU, the World Bank, the UNDP, and the United Nations Environment Program (UNEP). USAID is the leading donor to Kenya's population and health sector. Other donors in this sector include the UK, Japan, United Nations Children's Fund (UNICEF), United Nations Fund for Population Activities, the Joint United Nations Programme on HIV/AIDS (UNAIDS), EU, the German Kreditanstait fur Wiederaufbau (KfW), and the World Bank. There is a high degree of coordination among USAID and other donors.
Program Data Sheets
- 615-003 Reduce Fertility and the Risk of HIV/AIDS Transmission Through Sustainable, Integrated Family Planning and Health Services
- 615-005 Improved Natural Resources Management in Targeted Biodiverse Areas by and for Stakeholders
- 615-006 Sustainable Reforms and Accountable Governance Strengthened to Improve the Balance of Power Among the Institutions of Governance
- 615-007 Increased Rural Household Incomes
Country Background Information Resources
CIA Factbook
National Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
