Kenya - Country Private Sector Diagnostic (Executive Summary)

Overview & Synopsis

Kenya, one of Sub-Saharan Africa’s largest and most diversified economies, has strong fundamentals for private sector–led growth. The country has a population of over 50 million, a diversified economic base, strong regional connectivity through the Port of Mombasa, a relatively skilled workforce, and significant agricultural, renewable energy, and tourism assets. Over the past decade, Kenya recorded steady economic growth, driven largely by public investment. However, this growth has not produced sufficient private investment, productivity gains, export growth, or formal job creation. Private investment remains low, foreign direct investment (FDI) inflows lag those of peer countries, exports have declined as a share of gross domestic product (GDP), and only a small fraction of the 1 million annual labor market entrants find formal employment.