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Economic Growth and Trade

Speeches Shim

Power Africa is supporting the Government of Kenya’s vision to increase the supply of and access to reliable, affordable, and sustainable electricity for economic growth.
Power Africa is supporting the Government of Kenya’s vision to increase the supply of and access to reliable, affordable, and sustainable electricity for economic growth.
Irene Angwenyi/USAID

OVERVIEW

Kenya is one of the fastest growing economies in Africa.  Yet, nearly half of the 50 million residents live below the poverty line.  Two thirds of Kenyans do not have access to basic financial services such as bank accounts.  USAID supports economic growth by encouraging trade, supporting small businesses, promoting the development of a robust energy and agriculture sectors.  Agriculture is the main engine of economic growth in Kenya. About 75 percent of Kenyans earn all or part of their income from the sector. Agriculture accounts for 33 percent of the nation's gross domestic product (GDP).

PROGRAM AREAS

Trade

USAID works with the Government of Kenya to increase trade among East African countries and globally.  African Growth and Opportunity Act (AGOA), the East Africa Trade and Investment Hub, and other global initiatives increase trade opportunities.  USAID supports a range of trade-related areas including: capacity building, private sector enabling environment, market access, food security, and exports.

Learn moreEast Africa Trade and Investment HubExporting Through AGOA: A Kenyan factory expands with AGOA

Development Finance

Many Kenyans don’t have access to credit and financial capital to grow their businesses.  USAID has encouraged the banking sector to expand services to underserved Kenyans. We identify opportunities and assist banks and microfinance institutions to design financial products.  For instance, loans that address the unique needs of agricultural value chains. USAID increases access to other financial products as well. USAID’s Development Credit Authority (DCA) works to catalyze financing.  In the last five years, this program catalyzed over $29 million in local capital for agriculture, energy, water, sanitation, hygiene, and health.

Energy Sector

The Government of Kenya has a vision to increase the supply of and access to reliable, affordable, and sustainable electricity.  Kenya has one of the more developed power sectors in sub-Saharan Africa. Kenya also has an active private sector and a strong national power utility and abundant renewable energy resources, especially geothermal, wind, and solar.  Sustainable electricity is needed for strong economic growth. The Power Africa initiative helped nearly one million Kenyans access electricity through new mini grid installations and solar home systems.  Power Africa also supported new power generation projects totaling 728 megawatts. 301 megawatts of that already connected to the grid.

Overview: Economic Growth

Kenya Investment Mechanism Program (KIM)

Kenya Power Sector Report: Development of Kenya's Power Sector 2015 - 2020

Women’s Global Development and Prosperity Initiative (W-GDP)

AGOA 101 Guide for Kenya