Editing Economy of Kenya (section)

==Foreign economic relations==
[[File:2006Kenyan exports.PNG|thumb|450px|Kenyan exports.]]

Foreign investments in Kenya remain relatively weak considering the size of its economy and its level of development. As of 2022, Kenya's total FDI stock stood at USD 10.4 billion, accounting for a mere 9.5% of the country’s GDP.<ref>{{Cite web |title=Foreign direct investment (FDI) in Kenya - International Trade Portal |url=https://www.lloydsbanktrade.com/en/market-potential/kenya/investment |access-date=2024-03-09 |website=www.lloydsbanktrade.com |language=en |archive-date=2 March 2024 |archive-url=https://web.archive.org/web/20240302151403/https://www.lloydsbanktrade.com/en/market-potential/kenya/investment |url-status=live }}</ref>

Investments come from China, Japan, Russia, the United States, and the United Kingdom, among others. Kenya hosts a number of foreign multinational companies and international organisations such as the [[United Nations Environment Programme]].<ref>{{Cite web|url=http://www.italafricacentrale.com/index.php?option=com_content&view=article&id=40&Itemid=99&lang=en|title=Kenya Economy|last=Mariarosaria|website=italafricacentrale.com|language=en-gb|access-date=2018-10-29|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730224702/http://www.italafricacentrale.com/index.php?option=com_content&view=article&id=40&Itemid=99&lang=en|url-status=dead}}</ref> China's investments have been increasing, while those of western countries such as the United Kingdom has fallen significantly. Investments from multilateral agencies, particularly the [[World Bank]] and the [[European Development Fund]], have also increased. The most active investors currently are the [[Africa-China Relations|Chinese]].

Kenya is active within regional trade blocs such as the [[Common Market for Eastern and Southern Africa]] and the [[East African Community]], a partnership of [[Kenya]], [[Uganda]], [[Tanzania]], [[Rwanda]], [[Burundi]] and [[South Sudan]]. The aim of the latter is to create a common market of its member states modelled on the [[European Union]].<ref name="cp" /> Among the early steps toward integration is the bloc's [[customs union]], which has eliminated duties on goods and non-tariff trade barriers among members.

=== Exports ===
Kenya's chief exports are horticultural products and tea. In 2005, the combined value of these commodities was US$1,150 million, about 10 times the value of Kenya's third most valuable export, coffee. Kenya's other significant exports are petroleum products, fish, cement, pyrethrum, and sisal. The leading imports are crude petroleum, chemicals, manufactured goods, machinery, and transportation equipment. Africa is Kenya's largest export market, followed by the European Union.<ref name=cp/>

The major destinations for exports are Uganda, Tanzania, the United Kingdom, and the Netherlands. Major suppliers are China, India, the [[United Arab Emirates]], Saudi Arabia, and South Africa. Kenya's main exports to the United States are garments traded under the terms of the African Growth and Opportunity Act. Notwithstanding this, Kenya's apparel industry is struggling to hold its ground against Asian competition and runs a trade deficit with the United States. Many of Kenya's problems relating to the export of goods are believed by economists to be caused by the fact that Kenya's exports are inexpensive items that do not bring substantial amounts of money into the country.<ref name=cp/>

Kenya is the dominant trade partner for Uganda (12.3% exports, 15.6% imports) and [[Rwanda]] (30.5% exports, 17.3% imports).<ref>[https://www.cia.gov/the-world-factbook/countries/uganda/ The World Factbook] {{Webarchive|url=https://web.archive.org/web/20210412232431/https://www.cia.gov/the-world-factbook/countries/uganda |date=12 April 2021 }} Uganda country profile, CIA World Factbook</ref><ref>[https://www.cia.gov/the-world-factbook/countries/rwanda/ The World Factbook] {{Webarchive|url=https://web.archive.org/web/20210109091722/https://www.cia.gov/the-world-factbook/countries/rwanda |date=9 January 2021 }} Rwanda country profile, CIA World Fact book</ref>

=== Balance of trade ===
Kenya typically has a substantial trade deficit. The trade balance fluctuates widely because Kenya's main exports are primary commodities subject to the effects of both world prices and weather. In 2005 Kenya's income from exports was about US$3.2 billion. The payment for imports was about US$5.7B, yielding a trade deficit of about US$2.5B.<ref name=cp/>

{| class="wikitable"
!Year
!Goods exports<br /><small>(million US$)</small><ref>{{Cite web |title=Goods exports (BoP, current US$) - Kenya |url=https://data.worldbank.org/indicator/BX.GSR.MRCH.CD?end=2023&locations=KE&most_recent_value_desc=true&start=1977 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
!Goods imports<br /><small>(in</small> <small>million US$)</small><ref>{{Cite web |title=Goods imports (BoP, current US$) - Kenya |url=https://data.worldbank.org/indicator/BM.GSR.MRCH.CD?end=2023&locations=KE&most_recent_value_desc=true&start=1977 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
!Net trade<br /><small>(in</small> <small>million US$)</small><ref>{{Cite web |title=Net trade in goods (BoP, current US$) - Kenya |url=https://data.worldbank.org/indicator/BN.GSR.MRCH.CD?end=2023&locations=KE&most_recent_value_desc=true&start=1977 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
|-
|2023
|{{Increase}}$7,220
|{{Increase}}$17,243
|{{Decrease}}−$10,023
|-
|2020
|{{Increase}}$6,052
|{{Increase}}$14,390
|{{Decrease}}−$8,338
|-
|2015
|{{Increase}}$5,970
|{{Increase}}$14,349
|{{Decrease}}−$8,379
|-
|2010
|{{Increase}}$5,211
|{{Increase}}$11,442
|{{Decrease}}−$6,231
|-
|2005
|{{Increase}}$3,459
|{{Increase}}$5,587
|{{Decrease}}−$2,127
|-
|2000
|{{Increase}}$1,778
|{{Increase}}$3,022
|{{Decrease}}−$1,243
|-
|1990
|{{Decrease}}$1,090
|{{Decrease}}$2,005
|{{Decrease}}−$915
|-
|1980
|$1,421
|$2,345
|{{Decrease}}−$923
|}

=== Foreign investment policies ===
Kenyan policies on foreign investment generally have been favourable since independence, with occasional tightening of restrictions to promote the africanisation of enterprises. Foreign investors have been guaranteed ownership and the right to remit [[dividend]]s, [[royalties]], and capital.<ref name=cp/>

Kenya is currently the most important source of foreign direct investments in Uganda and Rwanda. Uganda and its neighbouring regions are the main export destinations for Kenyan products.<ref>{{Cite book |last1=Ngui |first1=Dianah |last2=Chege |first2=Jacob |last3=Kimuyu |first3=Peter |date=2016-07-28 |chapter=Kenya's Industrial Development: Policies, Performance, and Prospects |chapter-url=https://academic.oup.com/book/26774/chapter/195690704 |title=Manufacturing Transformation |language=en |doi=10.1093/acprof:oso/9780198776987.003.0004 |access-date=5 May 2023 |archive-date=5 May 2023 |archive-url=https://web.archive.org/web/20230505034935/https://academic.oup.com/book/26774/chapter/195690704 |url-status=live }}</ref> Kenya has had more success in growing its economy and quality of life levels than many of its neighbours in [[sub-Saharan Africa]].<ref name=cp/>