Kenya is structurally a model African state in that it has multiple ethnic groups and large ethnic and regional variations in development characteristics. Kenya’s relative political stability has made it one of the most widely-researched and data-rich countries in Sub-Saharan Africa.

Kenya gained independence from Britain in 1963, when a unitary constitution was adopted. Since its Independence, Kenya has had a parliamentary system with a uni-cameral legislature. Throughout the 1970s and 1980s, Kenya was often cited in operating a relatively free market in comparison to most other Sub-Saharan states. Kenya is one of only a few countries in Sub-Saharan Africa in which two ethnic coalitions have taken turns dominating the state apparatus and in which the transition from one to the other has been relatively peaceful.⁵⁷

In 1997, the IMF suspended Kenya's Enhanced Structural Adjustment Programme due to the government's failure to maintain reforms. A severe drought from 1999 to 2000 compounded Kenya's problems, causing water and energy rationing and reducing agricultural output. As a result, GDP contracted by 0.2% in 2000. The IMF, which had resumed loans in 2000 to help Kenya through the drought, again halted lending in 2001. The return of strong rains in 2001, weak commodity prices, and low investment limited Kenya's economic growth to 1.2%. Growth lagged at 1.1% in 2002 because of erratic rains, low investor confidence, meagre donor support, and political infighting up to the elections.

In the key 27 December 2002 elections, Daniel Arap Moi's 24 year reign ended, and a new opposition government took on the formidable economic problems facing the nation; progress was made in encouraging donor support, with GDP growth edging up to 1.7%. President Moi stepped down in December 2002 following fair and peaceful elections. Mwai Kibaki, running as the candidate of the multiethnic, united opposition group, the National Rainbow Coalition, defeated Kanu candidate Uhuru Kenyatta and assumed the presidency.⁵⁸ Political and ethnic tensions heightened in the run-up to the general elections at the end of 2002. Adding to these problems, the ongoing drought disrupted food distribution and led to major power shortages which slowed economic activity and depressed consumer demand, adversely affecting the country's development.⁵⁹

GDP per capita is Intl $1452. This falls within the range of $8,272 ( Libya) and $346 ( Democratic Republic of the Congo) in the countries of Africa (Table 7).

Table 7 GDP per capita (Intl $): countries of Africa, 2001

Source WHO