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Agriculture remains a significant part of the Kenya economy, however, growth was slowed by several hurdles, most prominently a drought that the state declared to be a national disaster. The drought restrained domestic production of staple crops such as maize, leading to food scarcity and steep rises consumer inflation. Despite the lower grain output, production of horticultural crops marked an all-time high and remained crucial sources of foreign exchange earnings. Meanwhile, meeting the ambitious target set by the Big Four agenda, which aims to transform Kenya from a state incapable of satisfying domestic demand into a food-secure country, will require mitigating dependence on rainfall, diversifying the nation’s staple basket and supporting smallholders. This chapter contains an interview with Agnes Kalibata, President, Alliance for a Green Revolution in Africa.

Having earned the moniker Silicon Savannah – a status the country first actively sought in 2013 when it launched its economic development roadmap, Vision 2030 – Kenya has made significant strides in ICT. Vision 2030 included a technology development blueprint with the main objective of transforming the country into a global digital player. Progress in this regard is being fuelled by favourable government policy, investment in infrastructure and a vibrant entrepreneurial ecosystem. Improvements, such as the addition of four fibre-optic sea cables between 2009 and 2016, have stepped up the quality of connectivity and reduced costs for consumers and businesses. Value-added services supported by mobile money have enabled mobile operators to maintain profitability, as the industry’s focus has shifted, first from voice to SMS, then to the current era of data-driven growth. This chapter contains an interview with Joseph Mucheru, Cabinet Secretary, Ministry of ICT.

Kenya’s construction and real estate sectors experienced slower growth in 2017 than in previous years, owing in part to uncertainty surrounding the contested August general elections, which translated in part, to no major government-led infrastructure projects being announced in the second half of the year. However, while the construction sector grew by less than the 9.8% recorded in 2016, healthy expansion of 8.6% was seen in 2017 for the sector to constitute 6.4% of that year’s GDP. Steady tendering activity is continuing, particularly for irrigation, transport and housing projects that are outlined in Vision 2030, the government’s long-term strategic planning document. Specifically, the real estate sector was marked by softening prices for prime residential and commercial properties. However, the outlook is brighter for the short-to-medium term, due to the government’s commitment to housing and the post-election resumption of normal commercial activity. This chapter contains an interview with Mucai Kunyiha, Chairman, Kenya Property Developers Association.

After some challenging years, Kenya’s tourism industry is recovering, with the country becoming an increasingly attractive destination as stability and confidence return, travel connections improve and relevant government programmes come into effect. The authorities are adopting increasingly innovative policies to encourage growth, which appear to be yielding results, with tourism arrivals and sector earnings both on the rise in recent years. However, connectivity is an area with potential for development and diversification must also be taken into account. In an effort to achieve this diversification, the country is looking to offer a more contemporary experience, combining traditional attractions with new offerings.

Given that the country has one of the youngest populations in the world by average age, Kenya is aware that investment in health and education will be a key component in supporting the Vision 2030 goals of transforming the nation into a middle-income country. For instance, the new Health Act, 2017 further codifies constitutional protections and mandates the provision of minimum basic services. Yet while the domestic health industry performs solidly in comparison to its regional peers, there are substantial obstacles standing in the way of progress. In regard to education, significant reform is under way to make the Kenyan education system more efficient and better able to train workers for the modern economy. The government is upgrading the curriculum, expanding coverage and placing an added focus on technical and vocational education and training. While long-term prospects are positive, doubts have risen about the costs and effectiveness of the incoming framework. This chapter contains an interview with Vimal Patel, Managing Director, Cosmos.

In conjunction with Ernst & Young, this chapter explores the taxation system and Kenya’s efforts to build an investor-friendly environment. It also contains a viewpoint with Gitahi Gachahi, CEO, EY Eastern Africa.