Institutional Factors - Infrastructure

Since the implementation of a new constitution in 2010, Kenya is one of the fastest growing economies in Africa (The World Bank In Kenya). A major driver for this growth is the development of infrastructure within the economy. Currently infrastructure accounts for about 65.3% of Kenya's GDP, and only continues to grow (Fast Growing Economy: How is Kenya's Infrastructure Developing). In 2018, Kenya moved up 19 places in the World Banks list of 190 economies. This continues the trend of strong economic growth in Kenya, in large part due to their infrastructure. However, despite the strong economic growth in infrastructure, it has not necessarily lead to a proportional change in economic development. A lot of the jobs created in Kenya still rely on the informal economy through tourism, trade etc. This means that although infrastructure is booming in Kenya, it has not led to a substantial increase in employment in the sector (Infrastructure for Economic Growth). Going forward their are many challenges facing Kenya in order to further development. A more stable economy would lead to increased foreign investment in industries, and increase the ease of doing business. An increased ease of doing business would help to boost overall employment and job opportunities for low income areas, and help to decrease poverty, which is hindering economic development (Infrastructure for Economic Growth). It is not all bad however, as Kenya has made significant strides towards some of their goals for development. They have decreased the child mortality rate, achieved almost universal primary school completion, the gender gap in education has decreased, and spending on healthcare has increased substantially (The World Bank In Kenya).

Overall, Kenya is moving in the right direction in terms of their infrastructure and economic growth and development. They still have a lot of work to do in order to create more jobs in the sector, but as it stands, infrastructure is a key driver of their economy.

Work Cited

“The World Bank In Kenya.” The World Bank, World Bank Group,          www.worldbank.org/en/country/kenya/overview.

Wairua, Mercy W. “Fast Growing Economy: How Is Kenya's Infrastructure Developing?” Lawyer Monthly , Lawyer Monthly, 30 Nov. 2018, www.lawyer-monthly.com/2018/11/fast-growing-economy-how-is-kenyas-infrastructure-developing/.

“Infrastructure for Economic Growth and Shared Prosperity in Kenya: Addressing Infrastructure Constraints, Promoting Economic Growth, and Reducing Inequality.” The World Bank, World Bank Group, 21 July 2016, www.worldbank.org/en/results/2016/07/21/infrastructure-for-economic-growth-and-shared-prosperity-in-kenya-addressing-infrastructure-constraints-promoting-economic-growth-and-reducing-inequality.