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Home Africa

Kenya is the East Africa’s economic Hotbed and engine

by Franklin Smith
September 1, 2015
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Kenya is the East Africa’s economic Hotbed and engine


The story of Barack Obama’s trip to Africa has largely been written as an historic homecoming. It’s so much more than that, though, and the next president should continue to make better relations with Kenya a priority. That’s in part, because it is Kenya, not the traditional African powerhouses Nigeria and South Africa, that is best positioned to provide the continent with some much-needed leadership in years to come. Here’s why:

First, Kenya is a leader in East Africa and a critical ally in the war on terrorism. Its ability to monitor threats and gather intelligence in innovative ways, primarily on the Somalia-based terrorist group Al Shabaab, will protect US security operations in the region. Kenya also plays an increasingly important peacekeeping role and helps build cooperation and coordination with Tanzania, Uganda, Rwanda and Burundi—Kenya’s partners within the East African Community. In fact, President Uhuru Kenyatta’s administration has focused on fostering stronger relationships with governments across Africa. Though Ethiopia often leads in regional peace negotiations, Kenyatta provides critical support in helping manage current political crises in Burundi and South Sudan.

Kenya can play this leadership role because it has built one of Africa’s most stable democracies. The country’s new constitution, which creates a decentralized political system to limit presidential powers and empower local governments, is a key component of that. The country’s treasury and central bank offer models for other African states to emulate. Kenya’s story is all the more important because the country emerged from sectarian political violence following a disputed presidential election just eight years ago. It offers a solid blueprint for African nations to follow.

Kenya is also East Africa’s economic engine. With relatively good infrastructure (despite Nairobi’s notorious traffic jams), ongoing investment in the power sector, and a consumer market of 43 million people, Kenya attracts a sizable share of sub-Saharan Africa’s foreign direct investment (FDI). In 2014, for example, Kenya was the second largest destination in sub-Saharan Africa for FDI, behind South Africa. That’s thanks, in no small part, to Kenya’s emergence as the continent’s tech hub, unofficially referred to as “Silicon Savannah.” The port of Mombasa serves as the region’s lifeline, and Kenya’s progress toward the commercial development of its oil and gas is complemented by its role as an oil transport hub. During his visit, Obama pushed for greater US investment in Kenya. The next president would be wise to do the same.

Lower oil prices will slow development in Nigeria. Dissatisfaction with government and social unrest in South Africa will continue to weigh on that country’s growth. That’s why Kenya’s stable political system and dynamic economy will only become more important for Africa and for the rest of the world.

story by: Ian Bremmer

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