Economical Status and Development of Kenya

Ec onomical Status and Development of Kenya

Kenya is a major powerhouse in East and Central Africa. The capital of Nairobi is an important commercial and communication hub for the East African Community (EAC) region and hosts a United Nation (UN) office and different UNprograms, e. g. the United Nations Environment Program(UNEP) and the United Nations Human Settlements Program (HABITAT) as well as 22 other multinational bodies. Although the Gross Domestic Product (GDP) per capita is high (1,700 USD) with a stable growth rate of 6 %, the rate of poverty stands at 48 %. Tea and coffee are the main export commodities. Kenya has developed its Vision 2030 Program, which aims to transform Kenya into a newly industrialized, "middleincome country providing a high quality life to all its citizens by the year 2030". The program is an all-inclusive and participatory stakeholder consultative process and includes various business opportunities for private investment, which have been highlighted in the following paragraphs.

Structure of Energy Supply in Kenya

Over two thirds of the population still rely on biomass like wood, animal waste and agricultural residues as primary energy source (68 %), which is mainly used for cooking.

Commercial energy resources are petroleum (22 %), electricity (9 %) and other sources (1 %). The electricity demand of 5,000 GWh is fully met by national hydro power stations, thermal oil-fired stations and geothermal sources. The total

installed capacity is 1,200 MW.Around 80 % of the population live in rural areas,

where the electrification rate is 4 %, while in the urban areas around 51 % are connected to the national grid.