KN BS MATIDHAL BUREAU STATISTICE- Eng: _1'u in Economic Survey 20 1 8 Economic Survey 2018 Kenya National Bureau of Statistics P.O Box 30266-00100 Herufi House Nairobi Tel. 254-2-3317583/6/8 Fax:254-2-3315977 http://www.knbs.or.ke E-mail:directorgeneral@knbs.or.ke ISBN: 978-9966-102-06-5 All Rights Reserved Copyright©2018 Extracts may be published if the source is duly acknowledged ii Table of Contents Table of Contents List of Tables....................................................................................................................ix List of Figures................................................................................................................. xv About KNBS.................................................................................................................. xvi Foreword.....................................................................................................................xviii Data Quality.................................................................................................................... xx List of Acronyms and Abbreviations............................................................................. xxi Summary and Outlook.....................................................................................................1 SECTION A: INTERNATIONAL SCENE......................................................................9 Chapter 1: International Scene......................................................................................10 Overview..................................................................................................................................................................10 Regional Economic Analysis..............................................................................................................................10 Outlook....................................................................................................................................................................17 SECTION B: DOMESTIC ECONOMY........................................................................18 Chapter 2: Economic Performance...............................................................................19 Overview..................................................................................................................................................................19 Sectoral Analysis...................................................................................................................................................20 Chapter 3: Employment, Earnings and Consumer Prices.............................................41 Overview..................................................................................................................................................................41 Employment...........................................................................................................................................................41 Formal Sector Employment...............................................................................................................................42 Wage Earnings in the Modern Sector..............................................................................................................46 Informal sector employment..............................................................................................................................52 Minimum Wages and Collective Bargaining Agreements.........................................................................52 Social Security .......................................................................................................................................................55 Consumer Price Index.........................................................................................................................................56 Chapter 4: Money, Banking and Finance.......................................................................62 Overview..................................................................................................................................................................62 Selected Monetary Indicators............................................................................................................................62 Consolidated Accounts of the Banking System.............................................................................................64 Sources of Change in Money Supply................................................................................................................66 Selected Financial Aggregates in Real Values ..............................................................................................66 Nominal and Real Interest Rates.....................................................................................................................67 Deposit Taking Savings and Credit Cooperatives.......................................................................................72 Capital Markets....................................................................................................................................................72 Insurance.................................................................................................................................................................73 Developments in the financial sector................................................................................................................75 Chapter 5: Public Finance..............................................................................................76 Overview..................................................................................................................................................................76 National Government.........................................................................................................................................76 County Governments...........................................................................................................................................86 General Government...........................................................................................................................................89 Chapter 6: International Trade and Balance of Payments.............................................91 Overview..................................................................................................................................................................91 iii Economic Survey 2018 Balance of Trade...................................................................................................................................................91 Price changes..........................................................................................................................................................92 Terms of Trade......................................................................................................................................................93 Volume changes.....................................................................................................................................................93 Quantities of Principal Domestic Exports.....................................................................................................94 Quantities of Principal Imports........................................................................................................................95 Values of Principal Domestic Exports.............................................................................................................96 Values of Principal Imports...............................................................................................................................97 Prices of Principal Domestic Exports and Imports......................................................................................99 Composition of Exports...................................................................................................................................102 Composition of Imports...................................................................................................................................103 Direction of Trade.............................................................................................................................................105 Balance of Payments.........................................................................................................................................111 International Liquidity....................................................................................................................................113 Foreign Exchange Rates...................................................................................................................................113 Developments in the External Sector............................................................................................................114 Chapter 7: Agriculture Sector Review.........................................................................115 Overview...............................................................................................................................................................115 Agricultural Output and Input......................................................................................................................115 Marketed Production........................................................................................................................................116 Crops.....................................................................................................................................................................121 Agricultural Training ......................................................................................................................................129 Societies and Unions in Agricultural activities..........................................................................................131 FBS Indicators....................................................................................................................................................132 Food Balance Sheet...........................................................................................................................................132 Chapter 8: Environment and Natural Resources.........................................................139 Overview...............................................................................................................................................................139 Environment and Natural Resources Gross Value Added.....................................................................139 Water Supplies...................................................................................................................................................139 Forestry.................................................................................................................................................................142 Wildlife.................................................................................................................................................................145 Refuse Management .........................................................................................................................................147 Environment Impact Assessments.................................................................................................................147 Weather Patterns...............................................................................................................................................148 Weather Patterns...............................................................................................................................................149 Recent Developments .......................................................................................................................................151 Chapter 9: Energy Sector.............................................................................................152 Overview...............................................................................................................................................................152 Petroleum.............................................................................................................................................................152 Electricity.............................................................................................................................................................159 Average Electricity Tariffs...............................................................................................................................160 Developments in the Energy Sector...............................................................................................................162 Chapter 10: Manufacturing..........................................................................................164 Overview...............................................................................................................................................................164 Formal employment in the Sector.................................................................................................................164 Manufacturing Output....................................................................................................................................164 Quantum Indices...............................................................................................................................................165 Cement Production and Utilization.............................................................................................................170 Producer Prices...................................................................................................................................................170 iv Table of Contents Credit to Manufacturing Sector.....................................................................................................................172 Export Processing Zones .................................................................................................................................174 African Growth and Opportunity Act ........................................................................................................175 Developments in the Sector.............................................................................................................................175 Chapter 11: Building and Construction......................................................................176 Overview...............................................................................................................................................................176 Key Economic Indicators ................................................................................................................................176 Construction Price Indices...............................................................................................................................177 Housing Credit and Government Expenditures........................................................................................180 Roads Statistics .................................................................................................................................................181 Developments......................................................................................................................................................185 Chapter 12: Tourism Sector.........................................................................................186 Overview...............................................................................................................................................................186 Visitor Arrivals ..................................................................................................................................................186 Hotel Occupancy by Country of Residence.................................................................................................191 National Parks and Game Reserves.............................................................................................................196 Museums, Snake Parks and Historical Sites..............................................................................................197 Conference Tourism..........................................................................................................................................199 Training in Hospitality...................................................................................................................................199 Chapter 13: Transport and Storage..............................................................................200 Overview .............................................................................................................................................................200 Value of Output ................................................................................................................................................200 Road Transport..................................................................................................................................................201 New Registration of Motor Vehicles and Motor Cycles..........................................................................202 Road Licenses......................................................................................................................................................203 Road Traffic Accidents.....................................................................................................................................203 Railway Transport ...........................................................................................................................................204 Water Transport................................................................................................................................................204 Pipeline Transport.............................................................................................................................................205 Air Transport......................................................................................................................................................206 Aircraft Movements...........................................................................................................................................208 Licensed Air Operators....................................................................................................................................209 Selected Aviation Industry Indicators..........................................................................................................210 Postal Services.....................................................................................................................................................211 Storage .................................................................................................................................................................212 Developments in the Transport and Storage Sector.................................................................................212 Chapter 14: Information and Communication Technology.......................................214 Overview...............................................................................................................................................................214 Value of Output.................................................................................................................................................214 Fixed Telephone and Mobile Network Services........................................................................................215 Telephone call traffic.........................................................................................................................................216 Message Services Traffic...................................................................................................................................217 Internet Services ................................................................................................................................................218 Broadband Services...........................................................................................................................................218 Tariffs....................................................................................................................................................................219 Domains...............................................................................................................................................................221 Media Frequencies and Mobile Transceivers.............................................................................................222 Employment, Investment and Revenue .......................................................................................................223 Information Society...........................................................................................................................................224 v Economic Survey 2018 International Trade in ICT Equipment......................................................................................................225 Newspaper Circulation and Online Newspaper Readership.................................................................226 SECTION C: SOCIAL SCENE....................................................................................227 Chapter 15: Education and Training............................................................................228 Overview...............................................................................................................................................................228 Education Expenditure....................................................................................................................................228 Chapter 16: Health and Vital Statistics........................................................................249 Overview...............................................................................................................................................................249 Expenditure on Health Services.....................................................................................................................249 Chapter 17: Governance, Peace and Security..............................................................258 Overview...............................................................................................................................................................258 Public Safety, Law and Order........................................................................................................................258 Ethics and Corruption......................................................................................................................................265 Environmental Crimes.....................................................................................................................................266 Prosecution of Murder Cases .........................................................................................................................266 The Judiciary......................................................................................................................................................268 The Prisons..........................................................................................................................................................270 Probation and Aftercare..................................................................................................................................272 Immigration........................................................................................................................................................275 Police, Prisons and Probation officers..........................................................................................................275 National Identity Cards..................................................................................................................................276 Voter Registration .............................................................................................................................................276 Refugees in Kenya..............................................................................................................................................281 Gender and Development................................................................................................................................281 Social Protection ...............................................................................................................................................282 Developments......................................................................................................................................................283 SECTION D: EMERGING ISSUES 285 Chapter 18: Environmental Economic Accounts: Energy Accounts..........................286 Overview...............................................................................................................................................................286 Introduction........................................................................................................................................................286 Rationale..............................................................................................................................................................287 Objectives.............................................................................................................................................................287 Implementation of SEEA in Kenya...............................................................................................................287 Supply and Use Tables.....................................................................................................................................287 Physical Supply and Use Table ....................................................................................................................288 Energy Physical Supply and Use Table ......................................................................................................289 Energy Balance...................................................................................................................................................290 Energy Physical Supply and Use Table (PSUT)......................................................................................294 Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya.................297 Introduction........................................................................................................................................................297 Survey Objectives...............................................................................................................................................297 Survey Methodology..........................................................................................................................................297 Poverty Measurement Approach...................................................................................................................297 Adjusting for Spatial and Seasonal Price Variation................................................................................298 Poverty Estimates...............................................................................................................................................298 Adjusting for Differences in Needs................................................................................................................298 Computing Poverty Lines................................................................................................................................298 vi Table of Contents Expenditure patterns .......................................................................................................................................299 Food, Overall and Hardcore (Extreme) Poverty at National Level...................................................301 Poverty by Socio-Economic Characteristics of the Head of the Household ......................................306 Chapter 20: Highlights of the KIHBS 2015/16 Labour Force Basic Report..............308 Overview...............................................................................................................................................................308 Active Population..............................................................................................................................................308 Total Dependency Ratio..................................................................................................................................308 Employment to Population Ratio.................................................................................................................309 Labour Force Participation Rate..................................................................................................................310 Educational Attainment – Highest Level Completed..............................................................................311 Hours worked.....................................................................................................................................................312 Working Patterns...............................................................................................................................................312 Time-Related Under-Employment...............................................................................................................313 Part Time Workers...........................................................................................................................................313 Unemployment Rate – Labour Underutilisation (LU1).......................................................................314 Labour Underutilization.................................................................................................................................314 Labour Underutilization (LU2)..................................................................................................................315 Economically Inactive Population................................................................................................................315 vii Economic Survey 2018 List of Tables Table 0: Key Economic and Social Indicators, 2013-2017............................................................................. 8 Table 1.1: Key Economic Indicators and Projections for Selected OECD Countries, 2015 - 2019 .13 Table 1.2: Real GDP Growth, Inflation and Current Account Balances for Selected Regions and Countries, 2015-2018.......................................................................................................................................... 15 Table 2.1: Gross Domestic Product by Activity, 2013 - 2017...................................................................... 23 Table 2.2: Gross Domestic Product by Activity............................................................................................. 24 Table 2.3: Gross Domestic Product by Activity............................................................................................. 25 Table 2.4: Gross Domestic Product by Activity............................................................................................. 26 Table 2.5: Sources of Growth, 2013-2017....................................................................................................... 27 Table 2.6: Annual Production Accounts by Industry, 2013-2017.............................................................. 29 Table 2.6: Annual Production Accounts by Industry, 2013-2017 (Cont’d)............................................. 30 Table 2.7: Expenditure on the Gross Domestic Product, 2013-2017........................................................ 31 Table 2.8: Expenditure on the Gross Domestic Product, 2013-2017........................................................ 31 Table 2.9: Expenditure on the Gross Domestic Product, 2013-2017........................................................ 32 Table 2.10: Expenditure on the Gross Domestic Product, 2013-2017...................................................... 32 Table 2.11a: Gross Fixed Capital Formation, 2013-2017............................................................................. 32 Table 2.11b: Gross Fixed Capital Formation, 2013-2017............................................................................ 33 Table 2.12a: Gross Fixed Capital Formation, 2013-2017............................................................................. 33 Table2.12b: Gross Fixed Capital Formation, 2013-2017............................................................................. 33 Table 2.13: Gross Domestic Product and Gross National Income, 2013-2017....................................... 34 Table 2.14: National Disposable Income and Saving, 2013-2017.............................................................. 35 Table 2.15 Gross Domestic Product by Activity............................................................................................ 36 Table 2.15: Gross Domestic Product by Activity (Cont’d).......................................................................... 37 Table 2.16 Gross Domestic Product by Activity............................................................................................ 38 Table 2.16: Gross Domestic Product by Activity (Cont’d).......................................................................... 39 Table 2.17: Growth rate of Gross Domestic Product by Activity............................................................... 40 Table 2.17: Growth rate of Gross Domestic Product by Activity (Cont’d)............................................. 40 Table 3.1: Recorded Employment1, 2013 - 2017.......................................................................................... 41 Table 3.2: Wage Employment by Industry and Sector, 2013 – 2017......................................................... 43 Table 3.3 Wage Employment in the Public Sector, 2013 – 2017................................................................ 45 Table 3.4: Wage Employment by Industry and Sex, 2016 and 2017 ........................................................ 46 Table 3.5: Wage Payments1 by Industry and Sector, 2013 – 2017.............................................................. 47 Table 3.6: Total Wage Payments in the Public Sector, 2013 - 2017............................................................ 48 Table 3.7: Average Annual Wage Earnings per Employee1, 2013 – 2017.................................................. 49 Table 3.8: Percentage changes in Wage Employment and Average Earnings1, 2017/2012 and 2017/2016 ............................................................................................................................................................. 50 Table 3.9: Estimated Real Average Wage Earnings per Employee1, 2013–2017. .................................... 51 Table 3.10: Changes in Wage Employment, Prices and Real Earnings, 2013 - 2017............................. 52 Table 3.11: Number of Persons Engaged in the Informal Sector by Activity1, 2013 – 2017................. 52 Table 3.12: Gazetted Monthly Basic Minimum Wages for Agricultural Industry, 2013 – 2017........... 53 Table 3.13: Gazetted Monthly Basic Minimum Wages1 in Urban Areas, 2016 – 2017 .......................... 54 Table 3.14: Collective Bargaining Agreements Registered by the Employment and Labour Relations Court, 2016 – 2017 ............................................................................................................................................. 55 Table 3.15: Registered Employers, Employees, Contributions and Benefits, 2013- 2017.................... 55 Table 3.16: Consumer Price Indices and Inflation by Divisions, 2013 - 2017......................................... 56 Table 3.17: Consumer Price Indices for Food and Non-Alcoholic Beverages, 2013 -2017.................. 57 Table 3.18: Average Retail Prices of Selected Consumer Goods in the Consumer Price Basket, 2013 2017......................................................................................................................................................................... 57 Table 3.19: Annual Inflation, 2013 - 2017....................................................................................................... 58 Table 3.20: Consumer Price Indices, Nairobi Lower Income Group, 2013 - 2017................................. 58 Table 3.21: Consumer Price Indices, Nairobi Middle Income Group, 2013 - 2017............................... 59 Table 3.22: Consumer Price Indices, Nairobi Upper Income Group, 2013 - 2017................................. 59 Table 3.23: Consumer Price Indices, Overall Nairobi, 2013 – 2017.......................................................... 60 Table 3.24: Consumer Price Indices, the Rest of Urban Areas, 2013 - 2017............................................ 60 viii List of Tables Table 3.25: Consumer Price Indices, Kenya, 2013 - 2017............................................................................ 61 Table 4.1: Monetary Indicators, 2013-2017.................................................................................................... 63 Table 4.2: Money and Quasi Money Supply, 2013-2017............................................................................. 64 Table 4.3: Consolidated Accounts of the Banking System 2013-2017...................................................... 65 Table 4.4: Changes in Money Supply and the Sources, 2013-2017........................................................... 66 Table 4.5: Trends in the Real Values of Selected Financial Aggregates1, 2013-2017............................. 67 Table 4.6: Nominal Principal Interest Rates, 2013-2017............................................................................. 67 Table 4.7: Selected Real Principal Interest Rates, 2013-2017..................................................................... 68 Table 4.8: Central Bank of Kenya Assets and Liabilities, 2013-2017........................................................ 69 Table 4.9a: Commercial Banks’ Bills, Loans and Advances1, 2013-2017.................................................. 70 Table 4.9b: Commercial Banks’ Bills, Loans and Advances Sector Shares1 2013–2017....................... 71 Table 4.10: Commercial Banks’ Deposit Liabilities and Liquid Assets, 2013-2017.............................. 72 Table 4.11: Performance of Deposit Taking Savings and Credit Cooperatives 2014-2017.................. 72 Table 4.12: Secondary Market Statistics, 2013-2017.................................................................................... 73 Table 4.13: Performance of Life Insurance Business, 2013-2017............................................................... 74 Table 4.14: Performance for General Insurance Business, 2013– 2017.................................................... 75 Table 5.1: Statement of National Government Operations, 2013/14 - 2017/18.................................... 77 Table 5.2: Analysis of Key Fiscal Ratios, 2013/14 - 2017/18...................................................................... 77 Table 5.3: Comparison of National Government Budget Estimates with Actual Out-turns, 2014/15 2017/18.................................................................................................................................................................. 78 Table 5.4: National Government Gross Receipts on the Recurrent Account, 2013/14 - 2017/18... 79 Table 5.5: Import Duty Collections on Selected Categories of Commodities, 2013 - 2017................. 80 Table 5.6: Excise Revenue Levied on Commodities and Services1 , 2013 - 2017................................... 80 Table 5.7: National Government Financing of Non-Financial Assets, 2013/14 - 2017/18.................. 81 Table 5.8: National Government Expenditure Classification by Functions of Government, 2014/152017/18.................................................................................................................................................................. 82 Table 5.9: Economic Analysis of National Government Expenditure, 2013/14-2017/18................... 83 Table 5.10: National Government Outstanding Debt by Source, 2013 - 2017........................................ 84 Table 5.11: National Government Debt Servicing, 2013 - 2017................................................................ 85 Table 5.12: National Government Debt Service Charges and Earnings from Export of Goods and Services+, 2013-2017............................................................................................................................................ 85 Table 5.13: County Government revenue, 2016/17 – 2017/18+............................................................... 87 Table 5.14: Economic classification of County Governments Expenditure, 2013/14 - 2017/18....... 88 Table 5.15: Expenditure of County Governments Classified by Functions, 2013/14 - 2017/18....... 89 Table 5.16: General Government Consolidated Statement of Operations, 2013/14 – 2016/17........ 90 Table 6.1: Balance of Trade, 2013-2017........................................................................................................... 92 Table 6.2(a): Export and Import Price Indices, 2013-2017......................................................................... 93 Table 6.2(b): Terms of Trade, 2013-2017........................................................................................................ 93 Table 6.2(c): Quantum Indices1, 2013-2017.................................................................................................. 94 Table 6.3(a): Quantities of Principal Domestic Exports, 2013-2017........................................................ 95 Table 6.3(b): Quantities of Principal Imports, 2013-2017.......................................................................... 96 Table 6.4(a): Values of Principal Domestic Exports, 2013-2017................................................................ 97 Table 6.4(b): Values of Principal Imports, 2013-2017.................................................................................. 99 Table 6.5(a): Average Prices of Principal Domestic Exports, 2013-2017..............................................100 Table 6.5(b): Average Prices of Principal Imports, 2013- 2017...............................................................101 Table 6.6: Domestic Exports by Broad Economic Category, 2013-2017................................................102 Table 6.7: Total Imports by Broad Economic Category, 2013-2017........................................................104 Table 6.8: Values of Total Exports by Destination, 2013-2017.................................................................106 Table 6.9: Values of Imports by Origin, 2013-2017.....................................................................................108 Table 6.10: Trade with African Countries, 2013-2017...............................................................................110 Table 6.11: Balance of Payments, 2013-2017...............................................................................................112 Table 6.12: Central Monetary Authorities: Foreign Exchange reserves, 2013-2017............................113 Table 6.13: Average Foreign Exchange Rates of Kenya Shilling for Selected Currencies, 20132017.......................................................................................................................................................................114 Table 7.1: Agricultural Output and Input1, 2013 - 2017 ............................................................................116 ix Economic Survey 2018 Table 7.2: Recorded Marketed Agricultural Production at Current Prices, 2013-2017 ....................117 Table 7.3: Volume and Price Indices of Recorded Sales of Agricultural Production, 2013 - 2017....118 Table 7.4: Average Gross Commodity Prices1 to Farmers, 2013 - 2017..................................................119 Table 7.5: Recorded Sale of Produce from Large and Small Farms, 2013 - 2017 .................................119 Table 7.6: Quantum and Price indices for Purchased Inputs, 2013 - 2017 ............................................120 Table 7.7: Value of Purchased Agricultural Inputs1, 2013-2017................................................................120 Table 7.8: Price Indices and Terms of Trade for Agriculture, 2013 – 2017............................................121 Table 7.9: Estimated Production of Selected Agricultural Commodities, 2013 – 2017......................121 Table 7.10: Retail Market Prices for Selected Food Crops, 2013 – 2017................................................122 Table 7.11: Recorded Sale of Selected Crops, 2013-2017..........................................................................123 Table 7.12: Production and Imports of Wheat, 2013 - 2017.....................................................................123 Table 7.13: Production, Area and Average Yield of Coffee by Type of Grower, 2012/13-2016/17 .124 Table 7.14: Production, Area and Average Yield of Tea by Type of Grower, 2013-2017 ...................125 Table 7.15: Planted Area, Area Harvested, Production and Average Yield of Sugarcane, 20132017.......................................................................................................................................................................125 Table 7.16: Production, Imports and Exports of Sugar, 2013-2017.........................................................126 Table 7.17: Exports of Fresh Horticultural Produce1, 2013-2017............................................................127 Table 7.18: Production of Rice in Irrigation Schemes, 2012/13 - 2016/17...........................................128 Table 7.19: Livestock Slaughtered and Dairy products, 2013-2017.........................................................129 Table 7.20: Enrolment in Agricultural Training Institutions, 2013-2017...............................................130 Table 7.21: Number of Societies and Unions, 2013 – 2017.......................................................................131 Table 7.22: Sale of Selected Agricultural Produce by Co-operatives and their Contribution to Gross Farm Revenue, 2013– 2017 .............................................................................................................................132 Table 7.23: Food Balance Sheet, 2013-2017.................................................................................................133 Table 7.24 (a): Food Balance Sheet, 2017.....................................................................................................135 Table 7.24 (b): Food Balance Sheet, 2016.....................................................................................................137 Table 8.1: Trends in Environment and Natural Resources Gross Value Added, 2013 - 2017.............139 Table 8.2: Water Purification Points and Boreholes Drilled, 2013/14 - 2017/18.................................140 Table 8.3: Development Expenditure on Water Supplies and Related Services by the National Government, 2013/14 - 2017/18...................................................................................................................140 Table 8.4: Quantity and Value of fish landed, 2013 - 2017.........................................................................142 Table 8.5: Forest Coverage by Category, 2013 - 2017.................................................................................142 Table 8.6: Government Forest Plantation Stocking, 2013 - 2017.............................................................143 Table 8.7 -Sale of Products from Government Forest, 2013 - 2017.........................................................143 Table 8.8: Quantity and Value of Mineral Production, 2013 - 2017........................................................145 Table 8.9: Average Export Prices of Soda Ash, Fluorspar, and Titanium Ore and Concentrates, 2013 2017.......................................................................................................................................................................146 Table 8.10: Wildlife Population Estimates1 in the Kenya Rangelands, 2013-2017...............................146 Table 8.11: Expenditure on Cleaning and Refuse Management by the Nairobi City County, 2012/132016/17................................................................................................................................................................147 Table 8.12: Solid Waste Collected, 2013 - 2017...........................................................................................147 Table 8.13: Environment Impact Assessments by Sector, 2013 - 2017...................................................147 Table 8.14 - Mean Annual and Seasonal Rainfall.........................................................................................149 Table 8.15 - Mean Annual and Seasonal Maximum Temperatures..........................................................150 Table 8.16: Mean Annual and Seasonal Minimum Temperatures............................................................150 Table 9.1: Quantity and Value of Imports, Exports and Re-exports of Petroleum Products1, 20132017.......................................................................................................................................................................153 Table 9.2: Petroleum Fuels Supply and Demand, 2013-2017...................................................................154 Table 9.3: Net Domestic Sale of Petroleum Fuels by Consumer Categories, 2013-2017....................155 Table 9.4: Whole Sale Prices1 of Petroleum Fuels in Mombasa, 2013-2017..........................................156 Table 9.5: Murban ADNOC Prices1, 2013-2017.........................................................................................156 Table 9.6: Average Retail Prices of Selected Petroleum Fuels, 2013- 2017.............................................158 Table 9.7a: Installed and Effective Capacity of Electricity, 2013-2017....................................................159 Table 9.7b: Generation and Imports of Electricity, 2013-2017................................................................160 Table 9.8: Electricity Supply and Demand, 2013-2017..............................................................................161 x List of Tables Table 9.9: Average Electricity Tariffs1, 2013-2017........................................................................................161 Table 9.10: Production, Trade and Consumption of Energy1 by Primary Sources, 2013-2017.........162 Table 10.1: Manufacturing Output, Compensation of Employees and Value Added, 2013-2017....165 Table 10.2: Quantum Indices of Manufacturing Production, 2013-2017..............................................166 Table 10.3: Percentage change in Quantum Indices of Manufacturing Production, 2013-2017 .....167 Table 10.4: Production of Selected Commodities 2013-2017..................................................................168 Table 10.5: Cement Production and Utilization, 2013-2017....................................................................170 Table 10.6: Producer Price Indices, 2013 to 2017.......................................................................................171 Table 10.7 Average Producer Prices of Selected Products .........................................................................171 Table 10.8: Manufacturing Projects Approved by Financial Institutions and Other Commercial Banks, 2013 -2017..............................................................................................................................................172 Table 10.9: Industrial Projects Approved by Kenya Industrial Estates, 2013-2017..............................173 Table 10.10: Industrial Projects1 Registered by Kenya Investments Authority, 2013-2017................173 Table 10.11: Selected EPZ Performance Indicators, 2013-2017..............................................................174 Table 10.12: Selected EPZ Garment / Apparel Performance Indicators under AGOA, 2013-2017.175 Table 11.1: Selected Key Economic Indicators in Building and Construction, 2013 - 2017 ............177 Table 11.2: Percentage Changes in Construction Cost of Materials and Labour, 2015 – 2017.........177 Table 11.3: Monthly Average Basic Wages in Building and Construction Industry, 2013 – 2017.....178 Table 11.4: Value of Private Building Plans Approved and Building Works Completed in Nairobi City County, 2013 - 2017...........................................................................................................................................178 Table 11.5: Reported Private and Public Buildings1 Completed, 2013 – 2017.....................................178 Table 11.6: Reported Value of New Private and Public Buildings issued with certificate of occupancy, 2013 – 2017..........................................................................................................................................................179 Table 11.7: Housing Loans Advanced by National Housing Corporation by County, 2016/2017 .180 Table 11.8: Approved and Actual Government Expenditure on Housing, 2013/14 – 2017/18.......180 Table 11.9: Expenditure on Roads, 2013/14 - 2017/18............................................................................181 Table 11.10: Status of Ongoing R2000 Programme as at end of December 2017 ...............................182 Table 11.11: Kilometres of Road by Type and Classification as at 30th June, 2013 - 2017 .................183 Table 11.12 - Major Road Works in Progress in 2017.................................................................................184 Table 11.12 - Major Road Works in Progress in 2017 Cont’d ...................................................................185 Table 12.1: International Visitor Arrivals by Purpose of Visit, 2013-2017.............................................189 Table 12.2: International Visitor Departures by Purpose of Visit, 2013-2017.......................................190 Table 12.3: Departing Visitors by Country of Residence and by Purpose of Visit1, 2015-2017........191 Table 12.4: Number of Visitor-Days Stayed1 by Purpose of Visit, 2013-2017.......................................191 Table 12.5: Hotel Bed-Nights Occupancy by Country of Residence, 2013-2017................................193 Table 12.6: Hotel Bed-Nights by Zone, 2013-2017.....................................................................................194 Table 12.7: Hotel Bed-Nights Occupancy by Area and by Country of Residence, 2016-2017..........195 Table 12.8: Game Lodges1 Occupancy, 2015 – 2017..................................................................................195 Table 12.9: Number of Visitors to National Parks and Game Reserves, 2013-2017............................196 Table 12.10: Number of Visitors to Museums, Snake Parks and Historical Sites, 2013-2017............198 Table 12.11: Indicators on Conference Tourism, 2015-2017....................................................................199 Table 12.12: Kenya Utalii College Graduates, 2013-2017.........................................................................199 Table 13.1: Transport and Storage - Value of Output, 2013 – 2017.........................................................201 Table 13.2: Road Maintenance Funds, 2013/14 - 2017/18 .....................................................................201 Table 13.3: Earnings from Road Traffic, 2013 - 2017 ................................................................................201 Table 13.4: New Registration of Road Motor Vehicles and Motor Cycles, 2013 - 2017 ....................202 Table 13.5: Road Transport Licenses Issued, 2013 – 2017.......................................................................203 Table 13.6: Reported Road Traffic Accidents, 2013 - 2017.......................................................................203 Table 13.7: Railway Traffic+, 2013 - 2017......................................................................................................204 Table 13.8: Traffic Handled at Mombasa Port, 2013 – 2017.....................................................................205 Table 13.9: Pipeline Throughput of White Petroleum Products, 2013 – 2017....................... 206 Table 13.10: Commercial Passenger Traffic1 by Airport, 2013 - 2017 ...................................................207 Table 13.11: Commercial Cargo and Mail Traffic by Airport, 2013 - 2017............................................208 Table 13.12: Aircraft Movements by Type, 2013 - 2017.............................................................................209 Table 13.13: Licensed Air Operators, 2013 – 2017 ....................................................................................209 xi Economic Survey 2018 Table 13.14: Selected Aviation Industry Indicators, 2013 – 2017............................................................210 Table 13.15: Postal Services, 2013 – 2017 ....................................................................................................211 Table 14.1: Output, Intermediate Consumption and Value Added of the Information and Communication Sector, 2013-2017................................................................................................................214 Table 14.2: Fixed and Mobile Network Services, 2013-2017....................................................................215 Table 14.3: Telephone Call Traffic, 2013-2017............................................................................................216 Table 14.4: Message Service Traffic, 2013 -2017..........................................................................................217 Table 14.5: Internet Providers and Subscriptions, 2013-2017..................................................................218 Table 14.6: Broadband Services, 2013-2017.................................................................................................219 Table 14.7: Fixed and Mobile Charges, 2013-2017.....................................................................................220 Table 14.8 Average International Call Rates from Mobile Phone, 2013- 2017......................................221 Table 14.9 Registered Domains, 2013-2017.................................................................................................222 Table 14.10: Media Frequencies and Mobile Transceivers, 2013-2017..................................................223 Table 14.11: Employment, Investment and Revenue, 2013-2017............................................................224 Table 14.12: Key Indicators Measuring Information Society, 2013-2017..............................................224 Table 14.13: International Trade in ICT Equipment, 2013-2017............................................................225 Table 14.14: Local Daily/Weekly Newspapers in Circulation, 2013 – 2017.........................................226 Table 15.1: Expenditure for the Ministry of Education1, 2013/14 - 2017/18.......................................229 Table 15.2: Educational Institutions by Category, 2013 – 2017...............................................................230 Table 15.3: Pupil Enrolment and Teacher Numbers in ECDE Centres, 2013 – 2017 ........................231 Table 15.4: Primary School Enrolment by Class and Sex, 2013 – 2017 .................................................233 Table 15.5: Candidates by Sex and Mean Subject Score in KCPE, 2013-2017......................................234 Table 15.6: Public Primary School Teachers1 by Cadre and Sex, 2013 – 2017 ...................................236 Table 15.7: Enrolment in Secondary Schools by Class and Sex, 2013 – 2017 .....................................236 Table 15.8: National trends in KCSE candidates mean grade by Sex, 2013-2017 ................................238 Table 15.9: Public Secondary School and Tertiary Teachers by Cadre and Sex1, 2013 – 2017..........239 Table 15.10: Teacher Trainees Enrolment by Year and Sex, 2013- 2017.................................................240 Table 15.11: Enrolment in Technical and TVET Institutions by Sex, 2013 – 2017.............................241 Table 15.12: Enrolment1 by University and Sex, 2014/15 - 2017/18......................................................242 Table 15.13: Number of Universities and Other Institutions Offering Degree Programmes by Institution Category, 2013-2017 ....................................................................................................................243 Table 15.14: Number of approved Degree Programmes, 2013 - 2017..................................................243 Table 15.15: Loan Applicants, Beneficiaries and Loans Awarded by Sex, 2012/13 – 2016/17 ........244 Table 15.16: Bursary Applicants, Beneficiaries and Amount Awarded by Sex, 2012/13 – 2016/17.245 Table 15.17: Government Capitation, Loan Repayments and Loans / Bursaries Awarded, 2012/132016/17................................................................................................................................................................246 Table 15.18: Adult Education Enrolment by Sex and County, 2015 - 2017...........................................247 Table 15.19: Adults who passed Proficiency Tests and Private Candidates Registered for KCPE by Sex and County, 2016 - 2017 ...........................................................................................................................248 Table 16.1: Expenditure on Health Services, 2013/14 - 2017/18 ..........................................................250 Table 16.2: Registered Deaths by Major Causes, 2013 – 2017................................................................250 Table 16.3: Full Immunization Coverage (FIC), Rate of Under-One Year Old Children by County 2013-2017 ...........................................................................................................................................................252 Table 16.4: Facility Based Incidence of Disease, 2013-2017.....................................................................253 Table 16.5: Registered Health Personnel and those in Training, 2016-2017 ........................................254 Table 16.6: Undergraduate and Post Graduate Medical Students by Course and Sex, 2013/142017/18 ...............................................................................................................................................................255 Table 16.7: Middle Level Medical Trainees+ in Public Medical Training Colleges by Course, 2012/13-2016/17 ..............................................................................................................................................256 Table 16.8 : Registered Active Members of the National Hospital Insurance Fund, 2012/132016/17................................................................................................................................................................257 Table 16.9: NHIF Receipts and Pay Outs, 2012/2013-2016/2017 ........................................................257 Table 17.1: Crimes Reported to the Police, 2013 - 2017............................................................................259 Table 17.2: Crimes Reported to Police by Command Station, 2014 - 2017..........................................260 Table 17.3: Firearms and Ammunition Recovered or Surrendered, and Drugs Seized, 2013 - 2017.261 xii List of Tables Table 17.4: Persons Reported to the Police to have Committed Crimes by sex and Command Stations, 2014 - 2017..........................................................................................................................................262 Table 17.5: The Number of Persons Reported to have Committed Crime by Type of Offence and Sex, 2013 - 2017...........................................................................................................................................................264 Table 17.6: Cases Handled and Action Taken by Ethics and Anti-Corruption Commission, 2012/13 2016/17................................................................................................................................................................265 Table 17.7: Reports Forwarded to the Office of the Director of the Public Prosecution and Action Taken, 2012/13 -2016/17.................................................................................................................................265 Table 17.8: Public Assets Traced, Recovered and Loss Averted by EACC, 2012/13 - 2016/17.......266 Table 17.9: Environmental Crimes Reported to NEMA, 2013 - 2017....................................................266 Table 17.10: Prosecution of Murder Cases, 2013 – 2017...........................................................................267 Table 17.11: Cases Handled by the Courts, 2013 - 2017...........................................................................268 Table 17.12: Magistrates, Judges and Practicing Lawyers, 2013 - 2017...................................................269 Table 17.13: Persons Committed to Prison by Sex, 2013 - 2017..............................................................270 Table 17.14: Daily Average Population of Prisoners by Sex, 2013 - 2017...............................................271 Table 17.15: Convicted Persons Committed to Prison by Age and Sex, 2013 - 2017..........................271 Table 17.16: Convicted Prisoners by Type of Offence and Sex, 2013 - 2017........................................273 Table 17.17: Offenders Serving Probation Sentences, Community Service and Aftercare by Sex and Type of Offence, 2016 and 2017.....................................................................................................................274 Table 17.18: Police, Prisons and Probation Officers, 2013 – 2017...........................................................275 Table 17.19: Passports and Work Permits Issued, and Foreign Nationals Registered, 2013 - 2017.. 276 Table 17.20: New Identity Card Applications Made, Produced and Collected by County, 2013 2017.......................................................................................................................................................................277 Table 17.20: New Identity Card Applications Made, Produced and Collected by County, 2013 - 2017 cont…...................................................................................................................................................................278 Table 17.21: Registered Voters, 2016 - 2017.................................................................................................279 Table 17.21: Registered Voters, 2016 - 2017 cont........................................................................................280 Table 17.22: Refugees and Asylum Seekers by Age and Sex, 2013 - 2017..............................................281 Table 17.23: Women Groups Registration, Contributions and Source of Loans, 2013/14 2017/18................................................................................................................................................................281 Table 17.24: Key Decision Making Positions by Sex, 2016 - 2017...........................................................282 Table 17.25: Funds for Older Persons and, Orphaned and Vulnerable Children, 2013/14 – 2017/18................................................................................................................................................................283 Appendix 17.1: Classification of Offences by the Kenya Police Service Based on the Kenyan Penal Code......................................................................................................................................................................284 Appendix 17.2: Description of Offences........................................................................................................284 Box1: Monetary Supply and Use Table..........................................................................................................288 Box2: Structure of Physical Supply and Use Table .....................................................................................289 Table 18.1a: Supply and Demand for Coal, Coke and Non-Renewable Feedstocks, 2017.................291 Table 18.1b: Supply and Demand for Electricity, 2017..............................................................................292 Table 18.1c: Supply and Demand for Petroleum Products, 2017.............................................................293 Table 18.2a: Pilot Physical Supply Table for Energy, 2017........................................................................295 Table 18.2b: Pilot Physical Use Table for Energy, 2017..............................................................................296 Table 19.1: Mean Monthly Food and Non-Food Expenditure per Adult Equivalent, 2015/16 .......300 Table 19.2: Summary of Headcount Poverty Measures, 2015/16............................................................302 Table 19.3: Food, Overall and Hardcore Poverty Estimates (Individual) by Residence and County, 2015/16................................................................................................................................................................303 Table 19.4: Poverty Headcount Rates (%) and Socio-economic Indicators at Household Level, 2015/16................................................................................................................................................................306 Table 20.1: Total Dependency Ratio by Residence and by Region.........................................................309 Table 20.2: Distribution of Working Age Population (15 - 64) by Employment, 2009 KPHC and 2015/16 KIHBS..................................................................................................................................................310 Table 20.3: Percentage Distribution of Population (15-64) by Hours Worked....................................312 Table 20.4: Key Indicators of the Labour Market........................................................................................316 xiii Economic Survey 2018 List of Figures Figure 3.1: Number of New Jobs Created in Formal and Informal Sectors, 2013 – 2017..................... 42 Figure 3.2: Percentage Changes in Wage Employment in the Formal Sector, 2013 – 2017................. 44 Figure 7.1: Growth Rate in Real Agricultural Gross Value Added, 2013 - 2017...................................116 Figure 7.2: Maize Production and Imports, 2013-2017.............................................................................122 Figure 7.3: Sugar Production and Imports, 2013-2017..............................................................................126 Figure 7.4: Monthly Performance of Fresh Horticultural Exports, 2017................................................127 Figure 7.5: Import Dependency and Self-Sufficiency Ratios, 2017 ........................................................133 Figure 7.6: Caloric Supply by Main Food Groups, 2017............................................................................134 Figure 8.1: Value of Fish Landed, 2013 – 2017............................................................................................141 Figure 8.2: Long Rains (March to May) Performance, 2017.....................................................................148 Figure 8.3: Short Rains (October to December) performance, 2017......................................................149 Figure 8.4: Mean Annual and Seasonal Rainfall ..........................................................................................150 Figure 8.5: Mean Annual and Seasonal Maximum Temperatures............................................................150 Figure 8.6: Mean Annual and Seasonal Minimum Temperatures............................................................151 Figure 9.1: Sale of Petroleum Fuels by Major Consumer Categories, 2017...........................................155 Figure 9.2: International Crude Oil and Domestic Fuel Prices, 2017.....................................................157 Figure 9.3: Proportion of Electricity Generation by Source, 2017...........................................................160 Figure 12.1: Trends in International Visitor Arrivals and Tourism Earnings, 2013 – 2017................186 Figure 12.2(a): Monthly International Visitor Arrivals through MIA, 2016 -2017..............................187 Figure 12.2(b): Monthly International Visitor Arrivals through JKIA, 2016 -2017.............................187 Figure 12.2(c): Number of International Visitor Arrivals through MIA and JKIA, and Other Border Points, 2013 -2017..............................................................................................................................................188 Figure 12.2(d): International Visitor Arrivals by Purpose of Visit, 2017................................................189 Figure 12.3: Monthly Bed Occupancy Rates, 2016-2017..........................................................................192 Figure 12.4: Bed-Nights Occupancy at the Coast, 2016-2017..................................................................194 Figure 12.5: Visitors to National Parks and Game Reserves, 2015-2017................................................197 Figure 12.6: Monthly Number of Visitors to Museums, Snake Parks and Historical Sites, 20162017.......................................................................................................................................................................198 Figure 13.1: Reported Traffic Accidents and Casualties, 2016 - 2017.....................................................204 Figure 14.1: International SMS Sent and Received Traffic, 2013-2017..................................................217 Figure 15.1: Pre-primary Gross Enrolment Rate (GER) and Net Enrolment Rate (NER), 20132017.......................................................................................................................................................................231 Figure 15.2: Primary School Gross Enrolment Rate (GER) and Net Enrolment Rate (NER), 20132017.......................................................................................................................................................................234 Figure 15.3 Pupil Completion Rate and Primary to Secondary Transition Rate, 2013 - 2017..........235 Figure 15.4: Secondary School Gross Enrolment Rate (GER) and Net Enrolment Rate (NER), 20132017.......................................................................................................................................................................237 Figure 19.1: Headcount Poverty Measures by Area of Residence, 2015/16..........................................302 Figure 19.2: Mountain of Individual Overall Poverty Incidence across Counties ...............................305 Figure 19.3: Overall Poverty by Sex of Household Head, 2015/16.........................................................307 Figure 19.4: Overall Poverty by Education Level of Household Head, 2015/16..................................307 Figure 20.1: Percentage of Active Population by Age Cohorts.................................................................308 Figure 20.2: Labour Force Participation Rates for Population (15-64) by Sex.....................................311 Figure 20.3: Activity Status of Population Aged 5+ by the Highest Level of Education Attained.....311 Figure 20.4: Working Patterns of the employed Population (15-64) .....................................................312 Figure 20.5: Proportion of Part Time Workers Aged (15 – 64) by Sex...................................................313 Figure 20.6: Time related Under-employment Rate by Age Group and by Residence........................313 Figure 20.7: Unemployment Rate - Labour Underutilisation (LU1)......................................................314 Figure 20.8: Under Utilization - Combined Rate of Time Related Under-Employment and Unemployment (LU2)......................................................................................................................................315 xiv Background Information About KNBS The Kenya National Bureau of Statistics (KNBS) is the principal agency of the Government for collecting, analysing and disseminating statistical data, and the custodian of official statistical information. The Bureau is also responsible for the co-ordination of the National Statistical System (NSS) in the country. The functions of KNBS as defined in the Statistics Act 2006 are: • Planning, authorising, coordinating and supervising all official statistical programmes undertaken within the NSS; • Establishing standards and promoting the use of best practices and methods in the production and dissemination of statistical information across the NSS; • Collecting, compiling, analysing, abstracting and disseminating statistical information on the matters specified in the First Schedule of the Statistics Act, 2006; • Conducting the Population and Housing Census every ten years, and such other censuses and surveys as the Board may determine; and • Maintaining a comprehensive and reliable national socio-economic database. KNBS has an elaborate infrastructure for data collection across the country. This includes, a County Statistical Office in each of the 47 counties as data collection centre, two sampling frames for implementation of censuses and surveys and various databases for socio-economic statistical information. The Bureau collects various statistical information on monthly, quarterly, semi-annually and annual basis. Ad hoc surveys and studies are also carried out to gather information on specific indicators. Some of the statistical products of the Bureau include, Consumer Price Index (CPI), Leading Economic Indicators report, Quarterly Gross Domestic Product (GDP) release, Quarterly Producer Price Index (PPI), Quarterly Balance of Payment release, Annual Economic Survey report, Annual Statistical Abstract and County Statistical Abstract. The Bureau also provides information to local and international organisations including the IMF, UN, COMESA, ILO and EAC; and other data users. The Bureau maintains various platforms through which its products and statistical information are diseminated. The Bureau provides information for monitoring the country’s development agenda as well as internationally agreed indicators such Sustainable Development Goals (SDGs). In undertaking its mandate, the Bureau is guided by the following Vision, Mission and Core Values. Vision To be a centre of excellence in production and management of quality Statistics. Mission Statement To develop, provide and promote quality statistical information for evidence-based decision making. xv Economic Survey 2018 Core Values • • • • • • • • Professionalism: Strictly abide by professional considerations on the methods, standards and procedures for statistical production. Confidentiality: Guarantee confidentiality of data providers as provided in the Statistics Act 2006 Collaboration: Collaborate with stakeholders to enhance the quality of statistical information Teamwork: Embrace teamwork as the hallmark of our success Customer focus: Commitment to meet the needs of our customers and to always focus on customer satisfaction. Accountability and Transparency: Conduct business and lend services to stakeholders in a transparent and accountable manner. Efficiency and effectiveness: Promote high productivity, competence and usefulness of resources at the National and County level. Innovation and Creativity: Committed to innovation, invention, creativity and resourcefulness in service delivery. xvi Data Quality Data Quality The Economic Survey report is an annual publication prepared by the Kenya National Bureau of Statistics that provides socio-economic information covering a five-year period. Statistics presented in Economic Survey reports are produced in line with internationally sound and scientific methods that are anchored on the fundamental principles of producing official statistics. Data Sources The statistics published in the Economic Survey reports are based on a wide variety of sources including own surveys and censuses, studies carried out by other institutions and administrative data collected by Ministries, Departments and Agencies; County Governments; and establishments. The sources of data are always recognized. Accuracy and Reliability All censuses and surveys conducted by the Bureau are based on international standards and methods. Sampling and non-sampling errors that may occur in a census or survey are always disclosed. Data from administrative sources are subject to international best practices on statistics and are verified and validated through sectoral Technical Working Groups. Periodicity The Economic Survey report is an annual publication. However, the data may also be presented on quarterly and monthly basis for the review period. Consistency The Bureau maintains a compendium of statistical definitions. The Bureau has endeavoured to provide the same format of statistical tables as in previous years to enable consistency and trend comparison over time. Accessibility KNBS reports are disemintaed by various platforms. The platform include the KNBS website: www.knbs.or.ke, publications, press releases and social media. More information is also available from both the headquarter and the county offices. Timeliness The report is produced annually, at most 150 days after the end of the review year. Quarterly information is released at most 90 days after the review quarter. xvii Economic Survey 2018 List of Acronyms and Abbreviations ADF ADNOC Af DB AG AGOA AIA AIDS API ATM AYII BASAs BH BoP CAK CBA CBD CBD CBK CBR CFS CIP CMA COFOG COICOP COMESA CPC V2 CPI CRA CRB DANIDA DTSs DWT E&PWSD EAC EACC ECDE EEC EFA EGSS EIA EPC EPEA EPP EPZ EPZA ERC Esops ETF African Development Fund Abu Dhabi National Oil Corporation African Development Bank Attorney General African Growth and Opportunity Act Appropriation In Aid Acquired Immuno-Deficiency Syndrome American Petroleum Institute Automatic teller machine Area Yield Index Insurance Bilateral Air Services Agreements Boreholes Balance of Payments Communications Authority of Kenya Collective Bargaining Agreement Coffee Berry Disease Central Business District Central Bank of Kenya Central Bank Rate Container Freight Station Census of Industrial Production Capital Markets Authority Classification of Functions of Government Classification of Individual Consumption by Purpose Common Market for Eastern and Southern Africa Central Product Classification Version Consumer Price Index Commission on Revenue Allocation Credit Reference Bureau Danish International Development Agency Deposit Taking Savings and Credit Co-operatives Deadweight Tons Elderly and Persons with Severe Disability East African Community Ethics and Anti-Corruption Commission Early Childhood Development Education European Economic Commission Education For All Environmental Goods and Services Environmental Impact Assessment Export Promotion Council Environmental Protection Expenditure Accounts Emergency Power Producers Export Processing Zone Export Processing Zone Authority Energy Regulatory Commission Employee Share Ownership plans Exchange Traded Funds xviii List of Acronyms and Abbreviations EU FAA FBS FDI FGT FIC FIS FOB FY GDC GDP GER GFCF GFS GNI GoK GVA GWh HELB HISP HIV IASA IBRD ICDC ICT ID IDA IDB IDR IEBC IFMIS IFS ILO ILRI IMF IOCs IPP ISIC REV 4 ISPs ISS IT JICA JKIA KAPU KARI KCB KCPE KCSE KenGen KeNHA KenInvest European Union Federal American Administration Food Balance Sheet Foreign Direct Investment Foster, Greer and Thorbecke Full Immunization Coverage Foreign Investment Survey Free on Board Financial Year Geothermal Development Company Gross Domestic Product Gross Enrolment Rate Gross Fixed Capital Formation Government Finance Statistics Gross National Income Government of Kenya Gross Value Added GigaWatt Hours Higher Education Loans Board Health Insurance Subsidy Program Human Immunodeficiency Virus Inter Air Security Association International Bank for Reconstruction & Development Industrial and Commercial Development Corporation Information, Communication and Technology Identity Card International Development Association Industrial Development Bank Import Dependcancy Ratio Independent Elections and Boundaries Commission Integrated Financial Management Information System International Financial Services International Labour Organisation International Livestock Research Institute International Monetary Fund International Oil Companies Independent Power Producers International Standard of Industrial Classification Revision 4 Internet Service Providers Intergrated Survey of Services Information Technology Japan International Co-operation Agency Jomo Kenyatta International Airport Kenya Airports Police Unit Kenya Agricultural Research Institute Kenya Commercial Bank Kenya Certificate of Primary Education Kenya Certificate of Secondary Education Kenya Electricity Generating Company Kenya National Highways Authority Kenya Investment Authority xix Economic Survey 2018 KeRRA KESSP KETRACO KFS KG KIE KIHBS KLIP KMTC KNBS KOSF KPC KPHC KPLC KPS KRA KRB KSh KURA KV KW KWh KWS LAPSSET LATF LFS LPG LTM M1 M2 M3 MAM MCA MDGs MIA MM MNOs MNPs MPC MTEF MTP MTP III MVNO MW n.e.c NAMATA NAS NBFI NCC NCDF NCPB Kenya Rural Roads Authority Kenya Education Sector Support Programme Kenya Electricity Transmission Company Kenya Forest Service Kilogram Kenya Industrial Estates Kenya Integrated Household Budget Survey Kenya Livestock Insurance Project Kenya Medical Training College Kenya National Bureau of Statistics Kipevu Oil Storage Facility Kenya Pipeline Corporation Kenya Population and Housing Census Kenya Power and Lighting Company Kenya Police Service Kenya Revenue Authority Kenya Roads Board Kenya Shillings Kenya Urban Roads Authority Kilo Volt Kilo watt Kilo Watt Hour Kenya Wildlife Service Lamu Port Southern Sudan-Ethiopia Transport Corridor Local Authority Transfer Fund Labour Force Survey Liquefied Petroleum Gas Long Term Mean Narrow Money Supply Broad Money Supply (Money supplied by CBK, Commercial banks & Broad Money Supply (M2 plus Foreign Currency Holdings by Residents) March April May long rains Members of County Assembly Millennium Development Goals Moi International Airport Milimitres Mobile Network Operators Mobile Numbers Posted Monetary Policy Committee Medium Term Expenditure Framework Medium Term Plan Third Medium Term Plan Mobile Virtual Network Operator Mega Watt Not elsewhere classified Nairobi Metropolitan Area Transport Authority National Accounts Statistics Non-Bank Financial Institutions Nairobi City Council National Constituency Development Fund National Cereals and Produce Board xx List of Acronyms and Abbreviations NCRP NEMA NFA NFE NHC NHIF NIB NICD NOCK NOFBI NPC NSE NSSF NTSA NWCPC NYS ODPP OECD OMO OND OPEC OVC PAYE PCK PCR PPI PPP PPPs PSG PSTR PSUT PSVs PTP PTR RBA REP RVR SACCO SADC SAGA SDGs SEEA SEZ SGR SITC SME SMS SNA SOEs SSA SSR Nairobi Commuter Rail Project National Environment Management Authority Net Foreign Assets Non Formal Education National Housing Corporation National Hospital Insurance Fund National Irrigation Board Nairobi Inland Container Deport National Oil Corporation of Kenya National Optic Fibre Backborne Infrastructure National Police Service Nairobi Securities Exchange National Social Security Fund National Transport and Safety Authority National Water Corporation and Pipeline Corporation National Youth Service Office of the Director of Public Prosecution Organization of Economic Cooperation and Development Open Market Operations October-November-December short rains Organization of Petroleum Exporting Countries Orphans and Vulnerable Children Pay As You Earn Postal Corporation of Kenya Pupil Completion Rate Producer Price Index Public Private Participation Public Private Partnerships Product Sharing Contracts Primary to Secondary Transistion Rate Physical Supply and Use Tables Public Service Vehicles Profiency Tests Pass Pupil Teacher Ratio Retirement Benefits Authority Rural Electrification Programme Rift Valley Railways Savings and Credit Cooperative Societies Southern African Development Community Semi Autonomous Government Agency Sustainable Development Goals System of Environmental Economic Accounting Special Economic Zones Standard Gauge Railway Standard International Trade Classification Small and Medium Enterprises Short Messaging Service System of National Accounts State Owned Enterprises Sub-Saharan Africa Self Sufficiency Ratio xxi Economic Survey 2018 SUT TEAMS TEUs TIVET TJ TLB TOT TSA TSC UAE UK UNCTAD UNFCC UNSC US /USA USD VAT VCT VoIP WEF WHO WPPs WRA WTO Supply and Use Tables The East Africa Marine System Twenty-Foot Equivalent Units Technical Industrial and Vocational Educational Training Tera Joules Transport Licensing Board Total Rainfall Tourism Satellite Account Teachers Service Commission United Arab Emirates United Kingdom United Nations Conference on Trade and Development United Nations Framework on Climate Change United Nations Statistical Commission United States of America United States Dollar Value Added Tax Voluntary Counseling and Testing Voice over Internet Protocol Women Enterprise Fund World Health Organization Water Purification Points Water Resource Authority World Trade Organization xxii Summary and Outlook Summary and Outlook International Scene The global economy expanded by 3.6 per cent in 2017 compared to a growth of 3.1 per cent in 2016. The United States of America registered a growth of 2.2 per cent in 2017 compared to a growth of 1.5 per cent in 2016, largely due to increase in household income that supported private consumption and investments. The growth in United Kingdom decelerated to 1.5 percent in 2017 due to a weaker aggregate demand and uncertainty surrounding the Brexit negotiations. In China, real Growth Domestic Product (GDP) was boosted by fiscal support and recovery in exports to grow by 6.8 per cent in 2017 compared to 6.7 per cent in 2016. Real GDP in Sub Saharan Africa expanded by 2.6 per cent in 2017, mainly due to higher commodity prices and favourable external environment. Global inflation rose to 3.1 per cent in 2017 from 2.8 per cent in 2016, partly attributable to increase in oil prices. World trade grew by 4.8 per cent in 2017 compared to 2.6 per cent in 2016 as result of recovery in global manufacturing occasioned by increased investments. Global unemployment rate stood at 5.6 per cent in 2017. Domestic Economy Kenya’s economy is estimated to have expanded by 4.9 per cent in 2017 compared to a revised growth of 5.9 per cent in 2016. The slowdown in the performance of the economy was partly attributable to uncertainty associated with a prolonged electioneering period coupled with adverse effects of weather conditions. Generally, key macroeconomic indicators largely remained stable and therefore supportive of growth in 2017. Interest rates declined due to the impact of their capping that became effective in September 2016. In the money market, the Kenyan Shilling strengthened against most of the major trading currencies but weakened against the Euro and the US Dollar in 2017. The current account deficit widened in the year under review on account of significant growth of imports against a slower growth of exports. There was a moderate build up in inflationary pressures mainly due to significant increase in oil and food prices during the year under review. Consequently, inflation rate rose from 6.3 per cent in 2016 to 8.0 per cent in 2017. Performance across the various sectors of the economy varied widely, with Accommodation and Food services; Information and Communication Technology; Education; Wholesale and Retail trade; and Public Administration registering accelerated growths in 2017 compared to 2016. On the other hand, growths in Manufacturing; Agriculture, Forestry and Fishing; and Financial and Insurance decelerated significantly over the same period and therefore dampened the overall growth in 2017. Employment, Earnings and Consumer Prices A total of 897.8 thousand new jobs were created in 2017 with 787.8 thousand new jobs created in the informal sector. Employment in the informal sector accounted for 83.4 per cent of total employment in the period under review. The number of persons engaged, excluding those in rural small scale agriculture and pastoralist activities, rose by 5.6 per cent from 16.0 million persons in 2016 to 16.9 million persons in 2017. Wage employment in the modern sector increased from 2,553.5 thousand persons in 2016 to 2,656.6 thousand persons in 2017. The total number of self-employed and unpaid family workers within the modern sector rose from 132.5 thousand persons in 2016 to 139.4 thousand persons in 2017. Annual nominal 1 Economic Survey 2018 average earnings per person in the modern sector increased from KSh 645,035.2 in 2016 to KSh 684,097.0 in 2017. However, annual real average earnings per person decreased from KSh 379,968.9 to KSh 369,004.3 over the same period. Inflation as measured by Consumer Price Index increased from 6.3 per cent in 2016 to 8.0 per cent in 2017. Money, Banking and Finance During 2017, the Central Bank continued to pursue accommodative monetary policy aimed at increasing credit uptake by the private sector to stimulate economic growth. The Central Bank Rate (CBR) was retained at 10.0 per cent to continue anchoring inflation expectations in 2017. The maximum lending rate is capped at no more than 4.0 per cent above the CBR. Average interest rates on deposits increased to 8.22 per cent in December 2017 from 7.33 per cent in December 2016. Commercial banks’ average lending interest rates on loans and advances remained stable at 13.64 per cent in December 2017. The 91-day Treasury bill rate fell from 8.44 per cent in December 2016 to 8.01 per cent in December 2017. Extended broad money supply (M3) grew by 8.9 per cent in December 2017 to KSh 3,010.9 billion from KSh 2,764.5 billion in 2016. Overall liquidity, which is the broadest definition of money supply, grew by 10.1 per cent to KSh 4,085.1 billion during the review period. Total domestic credit grew by 7.9 per cent in 2017 with credit to the private sector expanding by 2.4 per cent. The Nairobi Securities Exchange 20-Share index rose to 3,712 points in December 2017 from 3,186 points in December 2016, with market capitalization rising to KSh 2,522 billion in December 2017. In the insurance sector, gross premium income for general business increased by 2.5 per cent to KSh 124.7 billion in 2017. Total Assets in life business grew by 15.8 per cent to 353.6 billion in 2017. Retirement benefit assets grew to KSh 963.1 billion in June 2017 from KSh 831.8 billion in June 2016. Public Finance National Government outlay for 2017/18 is expected to increase by 21.7 per cent to KSh 2,777.8 billion from KSh 2,283.0 billion in 2016/17. Recurrent expenditure is estimated at KSh 2,107.2 billion in 2017/18, while development expenditure is budgeted at KSh 670.6 billion. Total revenue collections by the National Government, inclusive of grants is expected to be KSh 1,710.2 billion, of which KSh 1,466.2 billion is expected to be generated from tax revenue. Total stock of public debt as at end of June 2017 stood at KSh 3,971.4 billion, of which external debt position was KSh 2,294.2 billion, accounting for 57.8 per cent. Public debt servicing in 2017/18 is expected to amount to KSh 623.1 billion. County governments budgeted to spend KSh 395.9 billion in 2017/18 against total expected receipts amounting to KSh 401.6 billion. National government current transfers to county governments, inclusive of conditional grants, is estimated to increase by 14.4 per cent to KSh 345.7 billion during the review period. International Trade and Balance of Payments Total value of exports increased by 2.8 per cent to KSh 594.1 billion in 2017. The major foreign exchange earners were: tea; horticulture; articles of apparel and clothing accessories; coffee and titanium ores and concentrates, collectively accounting for 64.8 per cent of total domestic export earnings, during the review period. Africa remained the leading destination of Kenya’s 2 Summary and Outlook exports; accounting for 37.7 per cent of total exports in 2017, with East African Community (EAC) accounting for more than half of total exports to Africa. Exports to Europe accounted for 24.7 per cent of total exports in 2017, with the bulk of exports destined to European Union (EU) countries. The import bill grew by 20.5 per cent to KSh 1,725.6 billion in 2017. The main drivers of the import bill were: industrial machinery; petroleum products; road motor vehicles; iron and steel; animal and vegetable fats and oils; and sugar. Asia accounted for 64.2 per cent of total imports in 2017, continuing its dominance as the leading source of Kenya’s imports. The ratio of exports to imports deteriorated from 40.4 per cent in 2016 to 34.4 per cent in 2017. Trade weighted exchange rate index deteriorated from 114.8 in 2016 to 116.5 in 2017, a reflection of the depreciation of the Kenyan Shilling against the currencies of the major trading partners. The current account widened by 38.3 per cent to KSh 518.9 billion in 2017, reflecting a 6.7 per cent of GDP. Net inflows of international trade in services increased by 11.4 per cent to a surplus of KSh 160.9 billion in 2017, supported by increased foreign travel receipts. Net financial inflows increased by 13.4 per cent to a surplus of KSh 476.1 billion in 2017, on account of increase in short term capital inflows. These developments resulted in an overall balance of payments deficit of KSh 16.9 billion in 2017 from a surplus of KSh 13.1 billion recorded in 2016. Agriculture Sector Review The agriculture sector recorded mixed performance in 2017 which led to a decelerated growth of 1.6 per cent compared to 5.1 per cent growth in 2016. Drought coupled with pests such as the fall army worms and diseases led to the overall decline in agricultural production in 2017. Despite reduced production of major crops during the period under review, better prices were realized for the marketed agricultural output. Consequently, the value of marketed production increased by 8.2 per cent from KSh 413.2 billion in 2016 to KSh 446.9 billion in 2017. Maize production declined from 37.8 million bags in 2016 to 35.4 million bags in 2017. Similarly, sugarcane production declined from 7.2 million tonnes in 2016 to 4.8 million tonnes in 2017. The recorded declines in production of maize and sugarcane resulted in huge imports of maize and sugar to bridge the deficit. Wheat production declined by 23.1 per cent from 214.7 thousand tonnes in 2016 to 165.2 thousand tonnes in 2017. Tea production declined by 7.0 per cent to 439.8 thousand tonnes in 2017 while marketed coffee dropped by 15.1 per cent to 33.7 thousand tonnes in the year under review. The volume of fresh horticultural exports increased from 261.2 thousand tonnes in 2016 to 304.1 thousand tonnes in 2017. The quantity of marketed milk declined by 17.4 per cent from 648.2 million litres in 2016 to 535.7 million litres in 2017. Environment and Natural Resources In 2017, the Environment and Natural Resources sector registered mixed performance in indicators. The total expenditure by national government on water and related services is expected to decline by 19.1 per cent from KSh 43.9 billion in the year 2016/17 to KSh 35.5 billion in 2017/18. The value of fish landed, which has been on the decline for the last three consecutive years, dropped further by 6.1 per cent to KSh 23.0 billion in 2017. Total area covered by forests increased marginally from 4,190.0 thousand hectares in 2016 to 4,229.4 thousand hectares in 2017. Sale of timber from Government forests declined from 1,037.3 thousand true cubic metres in 2016 to 881.6 thousand true cubic metres in 2017. The total value of mineral output increased by 2.0 per cent to KSh 23.8 billion in 2017. Most parts of the country experienced reduced rainfall and rising temperatures during the review period. 3 Economic Survey 2018 Energy Sector The energy sector witnessed increased international crude oil prices in 2017 following supply cuts by top producers under Organization of Petroleum Exporting Countries (OPEC). The average Murban crude oil prices rose to an average of US Dollars 54.91 per barrel in 2017 up from an average of US Dollars 44.18 per barrel in 2016. Total volume of petroleum products imported into the country increased from 5,990.0 thousand tonnes in 2016 to 6,347.7 thousand tonnes in 2017. However, domestic exports of petroleum products declined by 2.3 per cent to 32.4 thousand tonnes over the same period. During the review period, the total import bill of petroleum products increased by 34.2 per cent to KSh 265.3 billion while the total value of petroleum products exported, including re-exports, declined by 19.1 per cent to KSh 36.1 billion in 2017. Total installed and effective electricity capacity was 2,339.9 MW and 2,264.4 MW, respectively, in 2017. Total electricity generation expanded by 3.0 per cent to 10,359.9 GWh in 2017. However, the hydro generated power registered a significant drop of 29.9 per cent to 2,776.8 GWh while thermal and geothermal generated power expanded by 72.3 and 6.1 per cent, respectively, in 2017. The number of customers connected under the rural electrification program expanded by 30.6 per cent from 972,018 in 2016/17 to 1,269,510 in 2015/16. Manufacturing Sector The manufacturing sector real value added rose by 0.2 per cent in 2017 compared to a growth of 2.7 per cent in 2016. Output volume of the sector however, declined by 1.1 per cent mainly on account of reduced production of food products, beverages and tobacco, leather and related products, rubber and plastics and non-metallic minerals sub sectors. The sector’s formal employment rose to 303.3 thousand persons in 2017 and accounted for 11.4 per cent of the total formal employment. The number of local employees engaged by EPZ enterprises increased to 54,622 persons in 2017 from 52,947 persons in 2016. Loans advanced to the sector rose to KSh 311.8 billion in 2017 from KSh 275.8 billion in 2016. The Producer Price Index (PPI), which measures inflation of products as they leave the factories, increased by 4.6 per cent in 2017 mainly due to increase in prices of manufactured food products, electricity and manufactured basic metals. Building and Construction The Building and construction sector grew by 8.6 per cent in 2017 compared to 9.8 per cent registered in 2016. The total expenditure by National Government on roads is expected to increase from KSh 173.7 billion in 2016/17 to KSh 198.4 billion in 2017/18. Development expenditure on roads is expected to increase by 19.2 per cent from KSh 113.2 billion in 2016/17 to KSh 134.9 billion in 2017/18. Funds for repair and maintenance of roads are expected to increase from KSh 60.5 billion in 2016/17 to KSh 63.5 billion in 2017/18. Loans and advances from commercial banks to building and construction sector increased to KSh 109.9 billion in 2017 from KSh 104.8 billion in 2016, a 4.9 per cent increase. Following the completion of Phase I of the Standard Gauge Railway project in May 2017, the construction work for Phase 2 which runs from Nairobi to Naivasha started in September 2017. The Tourism Sector The Tourism sector recorded improvements despite a prolonged electioneering period and negative travel advisories issued by some countries in 2017. Tourism earnings increased by 20.3 per cent from KSh 99.7 billion in 2016 to KSh 119.9 billion in 2017. The number of international visitor arrivals increased by 8.1 per cent to 1,448.8 thousand in 2017. The 4 Summary and Outlook number of hotel bed-nights occupancy increased by 11.3 per cent from 6,448.5 thousand in 2016 to 7,174.2 thousand in 2017. The number of international conferences contracted by 15.9 per cent from 227 in 2016 to 191 in 2017 while local conferences increased by 2.4 per cent from 3,755 to 3,844 over the same period. Visitors to national parks and game reserves rose by 2.6 per cent to 2,345.2 thousand in 2017. However, visitors to museums, snake parks and historical sites decreased by 15.3 per cent to 782.0 thousand in 2017 from 923.1 thousand in 2016. Transport and Storage The value of transport and storage sector output expanded by 8.8 per cent from KSh 1,025.8 billion in 2016 to KSh 1,115.7 billion in 2017. During the same period, the value of output from road transport increased by 5.7 per cent to KSh 702.1 billion, accounting for 62.9 per cent of the total output in the sector. Output from air transport sub-sector increased by 14.9 per cent to KSh 183.1 billion while that of services incidental to transport increased by 28.3 per cent to KSh 107.8 billion in the review period. On the other hand, output from the railway transport sub-sector declined by 8.8 per cent from KSh 5.7 billion in 2016 to KSh 5.2 billion in 2017. Total cargo throughput handled at the Mombasa Port increased by 10.6 per cent to 30.3 million tonnes in 2017. The total number of vessels that docked at the Port increased by 10.0 per cent from 1,607 in 2016 to 1,767 in 2017. At the same time, total import traffic handled grew by 10.8 per cent to 25.6 million tonnes, while export traffic handled expanded by 2.7 per cent to 3.8 million tonnes in 2017. The volume of white petroleum products transported through pipeline rose by 10.8 per cent from 5,557.9 thousand cubic metres in 2016 to 6,155.7 thousand cubic metres in 2017. The number of passengers travelling by air increased by 3.5 per cent to 10.1 million in 2017. During the review period, the number of domestic and international passengers were 3,991.2 thousand and 6,121.3 thousand respectively. The number of reported road traffic accidents declined by 15.9 per cent to 4,452 in 2017. Similarly, the number of reported casualties from the accidents decreased by 14.8 per cent to 11,215 in 2017. Information and Communication Technology The value of Information and Communication Technology (ICT) output increased by 10.9 per cent from KSh 311.1 billion in 2016 to KSh 345.1 billion in 2017. The number of domestic Short Messaging Services (SMSs) increased by 41.8 per cent to 65.7 billion in 2017. Total domestic telephone calls traffic increased from 42.2 billion minutes in 2016 to 44.1 billion minutes in 2017. The international telephone calls traffic declined from 1,196.5 million minutes in 2016 to 1,056.7 million minutes in 2017. Mobile subscriptions penetration rate per 100 inhabitants increased from 85.9 in 2016 to 91.9 in 2017. Prepaid subscriptions per 100 inhabitants increased to 88.9 in 2017 from 82.8 in 2016. Mobile commerce transactions grew by 85.5 per cent from KSh 1.8 trillion in 2016 to KSh 3.2 trillion in 2017. Total mobile money transfers increased by 8.4 per cent from KSh 3,356 billion in 2016 to KSh 3,638 billion in 2017. Education and Training The National Government total allocation to the Ministry of Education, which includes that to the Teachers Service Commission (TSC) is expected to grow by 31.6 per cent from KSh 315.6 billion in 2016/17 to KSh 415.3 billion in 2017/18. During the review period, total recurrent expenditure is expected to increase by 30.7 per cent to KSh 385.2 billion in 2017/18, while 5 Economic Survey 2018 development expenditure is expected to grow by 43.9 per cent to KSh 30.0 billion in 2017/18. The total number of educational institutions increased by 5.1 per cent to 90,587 in 2017 with the number of registered Technical Vocational and Education Training (TVET) institutions increasing substantially by 50.9 per cent to 1,962 in the same period. Total enrolment in pre-primary schools rose by 2.9 per cent to 3,293.8 thousand, while that of primary schools increased from 10.3 million in 2016 to 10.4 million in 2017. Enrolment in secondary schools grew by 4.1 per cent to 2,830.8 thousand in 2017. The number of teacher trainees’ enrolment went up marginally from 41,707 in 2016 to 42,131 in 2017, while total enrolment in TVET institutions increased by 35.8 per cent to 275,139 in 2017. University student enrolment is expected to decline by 7.7 per cent to 520,893 in 2017/18. The number of KCPE candidates increased by 4.3 per cent to 993,718 in 2017, while the number of KCSE candidates grew by 6.9 per cent to 610,501 in 2017. The number of candidates who scored a minimum university entry score of C+ (plus) and above decreased by 21.2 per cent to 70,073 in 2017 from 88,929 in 2016. The total number of students in public and private universities and TVET institutions loan applicants increased by 23.5 per cent to 252,928 in 2016/17. During the same period, the total number of loan beneficiaries increased by 24.2 per cent to 244,626. The amount of loans awarded increased by 25.0 per cent from KSh 7.6 billion in 2015/16 to KSh 9.5 billion in 2016/17. Health and Vital Statistics Total expenditure on the health services by National Government is expected to increase by 15.9 per cent to KSh 65.6 billion in 2017/18. Total recurrent expenditure is expected to remain at KSh 29.8 billion while development expenditure is expected to grow by 33.6 per cent to KSh 35.8 billion. Pneumonia, Malaria and Cancer continued to be the leading causes of registered death. Diseases of the respiratory system followed by Malaria continued to be the leading cause of morbidity. The national Full Immunization Coverage for children below one year decreased to 63.0 per cent in 2017 from 69.0 per cent in 2016. During the review period, the number of registered medical personnel increased by 9.0 per cent to 160,749. The National Hospital Insurance Fund (NHIF) membership grew by 11.1 per cent to 6.8 million in 2016/17. Contributions to NHIF increased from KSh 31,995.7 million to 34,978.2 million during the review period. Governance, Peace and Security The total number crimes reported to the Police increased by 1.3 per cent to 77,992 in 2017. Stealing, breakings and offences relating to dangerous drugs were more prevalent in 2017 and accounted for 14.9, 7.9 and 7.1 per cent respectively of all crimes reported to the Police. The total number of persons reported to have committed criminal offenses decreased by 2.7 per cent to 73,013 in 2017 with 18.6 per cent being reported to have committed assault while 15.1 and 8.1 per cent were reported to have committed stealing and creating disturbance, respectively. Corruption reports investigated by Ethics and Anti-Corruption Commission and forwarded to the Office of the Director of Public Prosecution (ODPP) decreased 14.4 per cent to 143 in 2017, of which the ODPP approved 89 reports for prosecution. Cases filed in Law Courts declined by 23.6 per cent to 344,180 in 2017, while those disposed of increased by 63.0 per cent to 313,075 in the same period. Daily average prison population grew marginally by 0.2 per cent to 51,021 prisoners in 2017. The number of persons registered as voters increased by 23.3 per cent from 15.9 million in 2016 to 19.6 million in 2017. 6 Summary and Outlook Social protection fund allocation to the elderly is expected to increase by 8.6 per cent to KSh 7.9 billion in 2017/18 while the allocation for orphans and vulnerable children (OVCs) is expected to increase by 5.4 per cent to KSh 8.5 billion in 2017/18. Direct cash disbursements to the elderly are expected to increase by 9.5 per cent to KSh 7.3 billion while that of OVCs is expected to increase by 11.5 per cent to KSh 7.9 billion over the same period. Outlook The global economic recovery experienced in 2017 is expected to continue more strongly in 2018. The recovery is likely to be broad based with growth in most developed and emerging market economies projected to accelerate in 2018. Similarly, growth of Sub-Saharan Africa is expected to improve significantly over the same period. The expectations are against expected favourable global financial conditions, strong world trade and improved business confidence. However, rising international oil prices could hamper economic growth in the non-oil producing countries in particular the developing economies. Moreover, there still exist some risks in the global financial systems that could negatively impact on developed and emerging market economies if they materialize. In Kenya, the expected political stability and favourable macroeconomic environment are likely to be conducive for acceleration in growth in 2018. The on-going investments in infrastructure, improved business confidence, and strong private consumption are likely to support growth in 2018. Weather forecast points to a possibility of sufficient and well spread long rains in 2018 which is likely to be a major boost for activities in agriculture and electricity and water supply sectors. This will in turn be favourable for the manufacturing sector. However, rising oil prices and slow credit uptake by the private sector are likely to dampen growth in 2018. Inflation is expected to ease in 2018 supported by lower food prices due to improved agricultural output. The expected strong world trade is likely to increase Kenya’s export and therefore supportive of growth. Other macroeconomic indicators are projected to remain stable and supportive of growth in 2018. Overall, factors favourable to growth are likely to more than offset impacts of those against and result to a better economic growth in 2018 compared to that of 2017. 7 Table Zero Table 0: Key Economic and Social Indicators, 2013-2017 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 DESCRIPTION Unit 2013 2014 2015 2016 2017* Population ………………………………………………………………………… (Million) 41.8 43.0 44.2 45.4 46.6 (Per cent ) Growth of GDP at Constant Prices ………………………………………………………………………… 5.9 5.4 5.7 5.9 4.9 GDP at Market Prices : ………………………………………………………………………… (KSh Bn) 4,745.1 5,402.6 6,284.2 7,194.1 7,749.4 (KSh Mn) Total value of petroleum products ………………………………………………………………………… 291,622.6 335,671.3 226,125.7 197,590.7 265,253.6 Trade balance ………………………………………………………………………… (KSh Mn) -911,029.2 -1,081,085.3 -996,511.7 -853,678.0 -1,131,494.1 Money Supply (M3) ………………………………………………………………………… (KSh Bn) 1,996.2 2,330.0 2,658.2 2,764.5 3,010.9 Total domestic credit ………………………………………………………………………… (KSh Bn) 1,978.5 2,312.2 2,793.9 2,973.2 3,198.3 Balance of Payments (current account balance) ………… (KSh Mn) -417,019.6 -560,761.1 -421,082.1 -375,295.9 -518,943.6 Coffee-marketed production ………………………………………………………………………… ('000 tonnes) 38.4 42.5 32.2 39.7 33.7 Tea-marketed production ………………………………………………………………………… ('000 tonnes) 432.4 445.1 399.2 473.0 439.9 Fresh Horticultural Produce exports ………………………………………………………………………… ('000 tonnes) 213.8 220.2 238.7 261.1 304.1 Maize-marketed production ………………………………………………………………………… ('000 tonnes) 316.4 289.4 295.3 265.8 239.2 Wheat-marketed production ………………………………………………………………………… ('000 tonnes) 184.9 218.0 227.3 215.9 156.9 Sugar-cane production ………………………………………………………………………… ('000 tonnes) 6,673.7 6,409.9 7,164.8 7,151.7 4,751.6 Milk sold centrally ………………………………………………………………………… (Mn litres) 523.0 540.0 615.9 648.2 535.7 Manufacturing output ………………………………………………………………………… (KSh Bn) 1,737.7 1,820.4 1,977.2 2,120.7 2,204.8 Construction output ………………………………………………………………………… (KSh Bn) 582.9 683.4 804.2 823.9 1,031.5 Cement Consumption ………………………………………………………………………… ('000 tonnes) 6,310.1 5,788.9 4,266.5 5,196.7 5,708.8 Petroleum Consumption ………………………………………………………………………… ('000 tonnes) 3,707.9 3,937.9 4,738.5 5,044.3 5,170.6 Electricity consumption ………………………………………………………………………… (GWh) 6,928.1 7,768.6 7,826.4 8,053.2 8,410.1 Tourism earnings ………………………………………………………………………… (KSh Mn) 93,970.0 87,080.0 84,600.0 99,690.0 119,900.0 New registration of motor vehicles and (Number) cycles…………………………… 222,178.0 318,057.0 247,181.0 213,715.0 282,672.0 Rail freight ………………………………………………………………………… (`000 tonnes) 1,444.0 1,509.0 1,542.0 1,380.0 1,147.0 Air passengers handled ………………………………………………………………………… ('000) No. 8,231.6 8,882.0 8,993.2 9,791.9 10,112.5 Mobile Subscriptions ……….…………………………………………….. ('000) No. 31,309.0 33,632.6 37,716.0 38,982.0 42,815.1 Total mobile money transfer KSh Bn 1,902.0 2,372.0 2,816.0 3,356.0 3,638.0 Wage employment ………………………………………………………………………… ('000) No. 2,283.1 2,370.2 2,478.0 2,553.5 2,656.6 ('000) No. Education-primary enrolment ………………………………………………………………………… 9,857.6 9,951.0 10,090.8 10,279.7 10,403.7 Education-secondary enrolment ………………………………………………………………………… ('000) No. 2,104.3 2,331.7 2,559.0 2,720.6 2,830.8 Education-University enrolment ………………………………………………………………………… ('000) No. 361.4 443.8 510.7 564.5 520.9 Education-other post secondary enrolment ('000) No. (TIVET+TTC) ………… 148.0 147.8 153.3 202.6 275.1 (Number) Registered doctors and dentists ………………………………………………………………………… 9,727.0 10,239.0 10,699.0 11,525.0 12,127.0 GDP Per capita (Current): ………………………………………………………………………… (KSh) 113,539.1 125,756.5 142,315.9 158,575.5 166,314.4 GDP Per capita (Constant): ………………………………………………………………………… (KSh) 87,260.9 89,430.3 91,988.6 94,788.5 96,799.8 Recurrent Revenue and Grants ………………………………………………………………………… (KSh Bn) 1,001.4 1,141.2 1,265.4 1,429.6 1,710.2 Total National Government Expenditure ………………………………………………………………………… (KSh Bn) 1,533.0 1,953.5 2,047.4 2,283.0 2,777.8 Net lending/borrowing (% of GDP) at Current (Per cent ) Market Prices ………… -6.5 -9.9 -8.0 -8.5 -8.4 External Debt Service Charge as % of GDP …………… (Per cent ) 1.0 1.8 1.8 1.1 1.4 External Debt Service as % of Exports of Goods & (Per cent ) Services …… 4.8 9.9 10.8 7.8 9.9 INDEX NUMBERS Export volumes: (2009=100) ……………………………………………………………….. 104.0 109.9 105.0 111.6 Import volumes: (2009=100) ……………………………………………………………….. 106.7 113.9 102.5 100.6 Terms of trade ……………………………………………………………….. 81.1 73.1 76.0 78.5 NSE 20 Share: (1966=100) ……………………………………………………………….. 4,927.0 5,113.0 4,040.0 3,186.0 Consumer Price Index: (Feb 2009=100)……………………………………………………………….. 140.1 149.7 159.6 169.7 Real wages: (June 2009=100)……………………….………………………….. 90.9 91.2 93.8 93.9 Agriculture terms of trade: (2001 =100) ……………………………………………………………….. 46.6 49.3 50.2 49.3 * Provisional 8 109.6 109.3 75.0 3,712.0 183.2 91.2 48.7 2013-2017 Annual % rate of change 1.3 0.6 -1.9 -6.8 6.9 0.1 1.1 IONAL SCENE Chapter 1: International Scene Chapter 01 International Scene Overview T he global economy recorded a broad-based recovery in 2017 to register the highest growth in post 2008 global financial crisis period. World real GDP is estimated to have expanded by 3.6 per cent in 2017 compared to 3.1 per cent in 2016. The improved performance was mainly supported by a rebound in private and public investments; growth in international trade partly as a result of favourable financing costs; rising profits; improved business and consumer confidence, and waning effects of the fall in oil and commodity prices during 2014 - 2016. This was particularly due to large capital spending and a robust external demand emanating from increased household incomes and business investments in the United States of America and the euro area. 1.2. Most advanced economies recorded accelerated growths due to supportive macroeconomic environment, improved labour markets and accommodative financial conditions. Similarly, improved growths were notable in most of the emerging market economies particularly in China where there was strong infrastructure investment. Economies in Sub-Saharan Africa grew by 2.6 per cent in 2017, a significant increase from 1.4 per cent growth registered in 2016. The growth was largely attributable to favourable commodity prices, improved global financing conditions, and reduced inflationary pressures. 1.3. The world trade improved significantly in 2017 compared to 2016 mainly attributable to recovery in global manufacturing that emanated from increased capital spending. The international trade is estimated to have increased by 4.8 per cent in 2017 compared to 2.6 per cent growth in 2016. Key drivers of the improved performance in global trade were a growing external demand in Europe, increased trade in electronics in Asia, and a shift in the composition of global demand towards investment. 1.4. During the year under review, global inflation rose to 3.1 per cent from 2.8 per cent in 2016 largely occasioned by rise in oil prices. The increase in oil prices was mainly on account of reduced supply by leading oil producers following a decision of the Organization of Petroleum Exporting Countries (OPEC) to limit oil production against a strong demand growth in 2017. Restrained production due to continued geopolitical tensions in the Middle East as well as a modest increase in non-OPEC oil production also contributed to the rise in oil prices. After a significant rise in 2016, global unemployment stabilized at an estimated rate of 5.6 per cent in 2017, corresponding to 192.7 million unemployed persons. This represented an increase in the number of unemployed people by 2.6 million compared to 2016. Regional Organization for Economic Co-operation and Development Economic 1.5. Table 1.1 presents the macroeconomic performance of economies in the Organization for Analysis Economic Co-operation and Development (OECD). Real GDP for OECD member countries improved from 1.8 per cent in 2016 to 2.4 per cent in 2017. This growth was largely a reflection of increased economic activity in the euro area and overall growth in international trade that supplied significant external demand for the member countries, prompting increased private consumption and investment. 9 Economic Survey 2018 1.6. Overall inflation rose to 1.9 per cent in 2017 from 1.5 per cent in 2016 against the target of 2.0 per cent set for OECD member countries. The significant increase in consumer prices was mostly associated with improved labour markets and increased household incomes that prevailed in majority of the member economies. Unemployment rate in the OECD economic bloc dropped from 6.3 per cent in 2016 to 5.8 per cent in 2017. In most member countries, lower unemployment rates were supported by increased share of part-time jobs, rising participation of the female labour force and growing employment in low-paying service sector. The current account balance as a percentage of GDP increased marginally from 0.2 per cent in 2016 to 0.3 per cent in 2017. Euro Area 1.7. The Euro Area recorded a broad-based recovery from a 3-year suppressed growth mainly occasioned by the 2014 -16 fall in global oil prices. In 2017, the area registered a real GDP growth of 2.4 per cent compared to 1.8 per cent in 2016. The accelerated growth reflected revitalized private consumption and investment, and improved external demand as a result of the ongoing recovery in global output and trade. 1.8. During the review period, labour market registered marked improvement as reflected by a considerable growth in job creation that exceeded the levels recorded before the 2008 global financial crisis. Unemployment rate was estimated at 9.1 per cent in 2017 compared to 10.0 per cent in 2016, while Inflation rate rose to 1.1 per cent from 0.8 per cent over the same period. United States of America 1.9. Economic performance of the United States accelerated to 2.2 per cent in 2017 from 1.5 per cent in 2016. This was largely due to improved household incomes that boosted private consumption and business investment as well as a weakening of the dollar. The increased production in the energy sector, supported by stable oil prices, also boosted the economic growth. 1.10. Labour force participation in the United States increased notably during the period under review. Consequently, unemployment rate dropped from 4.9 per cent in 2016 to 4.4 per cent in 2017. During the review period, inflation rate rose to 1.8 per cent from 1.3 per cent in 2016. The process of managing inflation towards the 2.0 per cent target rate was supported by a further strengthening of the labour market and a growth in household incomes despite the removal of accommodative monetary policy by the Federal Reserve. United Kingdom 1.11. The real GDP decelerated in the year under review to post a growth rate of 1.5 per cent compared to 1.8 per cent in 2016. The slowed growth was attributed to weaker aggregate demand and uncertainty surrounding the Brexit negotiations. The current account deficit as a percentage of GDP improved from 5.9 per cent in 2016 to 4.7 per cent in 2017. The improvement was as a result of an increase in exports of goods and weakening domestic demand for imports mainly due to depreciation of the Pound Sterling. Inflation rate rose marginally from 2.0 per cent in 2016 to 2.1 per cent in 2017. The unemployment rate dropped to 4.4 per cent in 2017 from 4.9 per cent in 2016. The decline partly attributed to expansion in self-employment as the demand for a flexible labour market and participation of the older workers grew. Japan 1.12. In 2017, Japan’s real GDP expanded by 1.5 per cent compared to 1.0 per cent in 2016. The expansion was largely supported by increased domestic investment buoyed by a long regime 10 Chapter 1: International Scene of low interest rates and a rebound in international trade that started in mid-2016. Growing labour shortages continued to tighten labour market conditions with unemployment rate declining to 2.8 per cent in 2017 from 3.1 per cent in 2016. Consequently, the economy made notable gains in employment that boosted growth in private consumption to the highest level since the 2014 consumption tax hike. 1.13. Monetary policy remained unchanged as the Bank of Japan continued to calibrate bond purchases as part of its efforts to push inflation towards the 2.0 per cent set target. However, the country experienced a deflation of 0.3 per cent in 2017 compared to an inflation of 0.3 per cent in 2016. Germany 1.14. Real GDP in Germany expanded by 2.5 per cent in 2017 compared to 1.9 per cent in 2016. This growth was mainly driven by increased external demand emanating from vibrant activities in the euro area that helped to boost exports and private investment. The improved level of economic activity was also supported by a notable growth in the construction sector that resulted from an increased housing demand. The increase in demand for housing was occasioned by higher disposable incomes and low interest rates that prevailed in 2017 and provision of housing for immigrants. Unemployment rate dropped to 3.7 per cent in 2017 from 4.2 per cent in 2016, partly due to increased investment across sectors. 11 Economic Survey 2018 Table 1.1: Key Economic Indicators and Projections for Selected OECD Countries, 2015 - 2019 2015 World Real GDP Growth** …………. 2 World Trade Growth ………………….. 2016 + 2017* 2018¹ 2019¹ 3.3 3.1 3.6 3.7 3.6 2.7 2.6 4.8 4.1 4.0 Real GDP Growth Percentage Change United States of America....................................... 2.9 1.5 2.2 2.5 2.1 United Kingdom....................................................... 2.3 1.8 1.5 1.2 1.1 Japan............................................................................... 1.1 1.0 1.5 1.2 1.0 Germany....................................................................... 1.5 1.9 2.5 2.3 1.9 Euro Area...................................................................... 1.5 1.8 2.4 2.1 1.9 Total OECD.......................................... 2.4 1.8 2.4 2.4 2.1 Inflation (GDP Deflator) Percentage Change United States of America....................................... 1.1 1.3 1.8 2.1 2.2 United Kingdom....................................................... 0.5 2.0 2.1 1.9 2.0 Japan............................................................................... 2.1 0.3 -0.3 0.2 1.0 Germany....................................................................... 2.0 1.3 1.5 1.6 1.8 Euro Area...................................................................... 1.4 0.8 1.1 1.5 1.7 Total OECD.......................................... 1.5 1.5 1.9 2.1 2.3 United States of America....................................... -2.4 -2.4 -2.4 -2.6 -2.8 United Kingdom....................................................... -5.2 -5.9 -4.7 -4.4 -3.5 Japan............................................................................... 3.1 3.7 3.9 3.9 4.1 Germany....................................................................... 8.6 8.3 7.9 8.0 7.9 Euro Area...................................................................... 3.7 3.6 3.4 3.4 3.4 Total OECD.......................................... 0.2 0.2 0.3 0.2 0.2 Current Account Balance as % of GDP Unemployment Rate Percentage Change United States of America....................................... 5.3 4.9 4.4 3.9 3.7 United Kingdom....................................................... 5.4 4.9 4.4 4.4 4.6 Japan............................................................................... 3.4 3.1 2.8 2.8 2.8 Germany....................................................................... 4.6 4.2 3.7 3.5 3.4 Euro Area...................................................................... 10.9 10.0 9.1 8.5 8.0 Total OECD.......................................... 6.8 6.3 5.8 5.5 5.3 Source: OECD Economic Outlook No.102 * Provisional ** World Economic outlook January 2018 + Revised 1 Projections ² Refer to arithmetic average of world merchandise import and export volumes. Assumptions Underlying Projections The cut-off date for information used in the projection is 28th November 2017. The projections assume unchanged exchange rates from those prevailing on 25th October 2017. 12 Chapter 1: International Scene Brazil, Russia, India, Indonesia, China and South Africa 1.15. Emerging economies comprising of Brazil, Russia, India, Indonesia, China and South Africa (BRIICS) posted an average real GDP growth of 3.7 per cent in 2017 compared to a growth of 2.5 per cent in 2016 as shown in Table 1.2. The improved growth was buoyed by recovery in the economic performances of Brazil and Russia that had contracted in 2016. The Brazilian economy was estimated to have expanded by 0.7 per cent in 2017 compared to a contraction of 3.6 per cent in 2016. The rebound was supported by a recovery in domestic demand attributed to easing of monetary conditions. Russia’s real GDP grew by 1.8 per cent in 2017 compared to a contraction of 0.2 per cent in 2016. The growth was bolstered by improved oil prices, fiscal stimulus and banking sector support. 1.16. In China, real GDP grew by 6.8 per cent in 2017 compared to a growth of 6.7 per cent in 2016. The growth was attributed to fiscal support and recovery of exports. Inflation rate in China eased to 1.8 per cent in 2017 from 2.0 per cent in 2016 on account of weak food prices. The Indian economy recorded a decelerated real GDP growth of 6.7 per cent during the year under review compared to a growth of 7.1 per cent in 2016. The deceleration in growth was partly attributed to roll out of goods and services tax aimed at shifting firms from informal to formal sector, and disruption from currency exchange initiative. Inflation rate eased to 3.8 per cent in 2017 on account of lower food prices. In South Africa, good rainfall received during the review period led to improved performance of the agriculture sector resulting in improvement in real GDP growth of 0.9 per cent in 2017 from 0.3 per cent in 2016. Association of South Eastern Asia Nations 1.17. The real GDP of the five member Association of South Eastern Asia Nations (ASEAN-5) grew by 5.2 per cent in 2017 from 4.9 per cent in 2016. The growth was underpinned by strong global demand that supported exports from the region. The current account surplus as a percentage of GDP narrowed to 1.6 per cent in the year under review compared to 2.1 per cent in 2016. The economic growth of Philippines slowed to 6.6 per cent in 2017 from 6.9per cent in 2016. Indonesia’s economy expanded by 5.2 per cent in 2017 compared to a growth of 5.0 per cent in 2016 supported by a strong external demand and expansionary fiscal policy. The real GDP of Malaysia grew by 5.4 per cent in 2017 compared to a growth of 4.2 per cent in 2016 attributable to increased domestic and external demand. Strong private consumption of goods and services in Thailand resulted in a real GDP growth of 3.7 per cent in 2017 compared to 3.2 per cent in 2016. Sub-Saharan Africa 1.18. Real GDP growth in Sub-Saharan Africa grew by 2.6 per cent in 2017 compared to 1.4 per cent in 2016. The growth was driven by increased oil and agricultural production in Nigeria and diminishing effect of drought in Eastern and Southern Africa, coupled with favourable external environment. Inflationary pressures dropped to 11.0 per cent in 2017 from 11.3 per cent in 2016 on account of low food prices. The current account deficit as a percentage of GDP for the region narrowed to 3.4 per cent during the review period from 4.2 per cent in 2016. The improvement in the current account balances in Sub-Saharan Africa was partly attributed to increased oil production in Angola and Nigeria. 13 Economic Survey 2018 Table 1.2: Real GDP Growth, Inflation and Current Account Balances for Selected Regions and Countries, 2015-2018 Real GDP Growth Rates BRIICS 2015 2.4 2016 + 2.5 2017* 3.7 Inflation 2018¹ 3.9 2015 7.0 2016 + 5.4 2017* 3.8 2018¹ 4.1 Current Account Balance (Per cent of GDP) 2015 2016 + 2017* 2018¹ -0.5 -0.6 -0.5 -0.7 Brazil………………….. -3.8 -3.6 0.7 1.5 9.0 8.7 3.7 4.0 -3.3 -1.3 -1.4 Russia………………….. -2.8 -0.2 1.8 1.7 15.5 7.0 4.2 3.9 5.0 2.0 2.8 3.2 India…………………… 8.0 7.1 6.7 7.4 4.9 4.5 3.8 4.9 -1.1 -0.7 -1.4 -1.5 Indonesia……………… 4.9 5.0 5.2 5.3 6.4 3.5 4.0 3.9 -2.0 -1.8 -1.7 -1.8 6.9 China………………….. 6.7 6.8 6.6 1.4 2.0 1.8 2.4 2.7 1.7 1.4 1.2 South Africa………….. 1.3 0.3 0.9 0.9 4.6 6.3 5.4 5.3 -4.4 -3.3 -2.9 -3.3 -1.8 Sub-Saharan Africa 3.4 1.4 2.6 3.4 7.0 11.3 11.0 9.5 -6.1 -4.2 -3.4 -3.6 EAC-5 6.1 5.4 5.4 5.9 5.7 5.7 6.7 5.5 –8.0 –5.8 –6.2 –7.2 Kenya…………………… 5.7 5.9 4.9 5.5 6.6 6.3 8.0 5.2 -6.8 -5.2 -7.0 -7.0 Tanzania……………….. 7.0 7.0 6.5 6.8 5.6 5.2 5.4 5.0 -8.5 -5.6 -5.6 -6.5 Uganda………………….. 5.7 2.3 4.4 5.2 5.4 5.5 5.8 5.6 -7.1 -4.3 -5.6 -7.2 Rwanda………………….. 8.9 5.9 6.2 6.8 2.5 5.7 7.1 6.0 -13.4 -14.4 -10.2 -11.2 Burundi………………….. -4.0 -1.0 0.0 0.1 5.6 5.5 18.0 20.2 -17.7 -13.1 -12.4 -11.8 SADC 2.7 1.5 2.2 2.5 5.5 10.4 10.3 9.0 -6.4 -4.4 -4.1 -4.5 WAEMU 6.2 6.3 6.4 6.4 2.7 1.3 1.0 1.3 -5.7 -5.3 -6.2 -5.7 CEMAC 1.9 -0.6 0.3 2.1 2.7 1.3 1.0 1.3 -12.2 -13.9 -6.5 -4.0 ASEAN-5 4.9 4.9 5.2 5.2 3.3 2.4 3.3 3.1 1.5 2.1 1.6 1.1 Indonesia……………….. 4.9 5.0 5.2 5.3 6.4 3.5 4.0 3.9 -2.0 -1.8 -1.7 -1.8 Malaysia………………… 5.0 4.2 5.4 4.8 2.1 2.1 3.8 2.9 3.0 2.4 2.4 2.2 Philippines……………… 6.1 6.9 6.6 6.7 1.4 1.8 3.1 3.0 2.5 0.2 -0.1 -0.3 2.9 Thailand………………… 3.2 3.7 3.5 -0.9 0.2 0.6 1.0 8.1 11.5 10.1 8.1 Vietnam…………………. 6.7 6.2 6.3 6.3 0.6 2.7 4.4 4.0 -0.1 4.1 1.3 1.4 2.2 5.4 3.8 4.7 5.4 5.4 5.4 -14.4 –12.1 –8.5 –5.6 Algeria…………………… 3.7 3.3 1.5 0.8 4.8 6.4 5.5 4.4 -16.5 -16.5 -13.0 -10.8 Libya……………………. -10.3 -3.0 55.1 31.2 9.8 27.1 32.8 32.1 -52.6 -22.4 1.8 9.8 Mauritania……………… 0.9 1.7 3.8 3.0 0.5 1.5 2.1 3.7 -19.7 -14.9 -14.2 -9.6 Morocco………………… 4.6 1.2 4.8 3.0 1.5 1.6 0.9 1.6 -2.1 -4.4 -4.0 -2.9 Tunisia………………….. 1.1 1.0 2.3 3.0 4.9 3.7 4.5 4.4 -8.9 -9.0 -8.7 -8.4 3.9 Mashreq2 Egypt……………………. 4.4 3.9 3.8 4.2 9.1 8.7 20.7 18.7 -6.3 –7.8 –8.2 –6.4 4.3 4.1 4.5 11.0 10.2 23.5 21.3 -3.6 -6.0 -5.9 -3.8 Jordan…………………… 2.4 2.0 2.3 2.5 -0.9 -0.8 3.3 1.5 -9.1 -9.3 -8.4 -8.3 Lebanon………………… 0.8 1.0 1.5 2.0 -3.7 -0.8 3.1 2.5 -18.7 -18.6 -18.0 -16.8 Maghreb 2.8 Source: World Economic Outlook, October 2017 and Regional Economic Outlook - Various Issues except Kenya * Provisional + Revised 1 Projections 2 Excludes Syria due to unavailability of data Southern African Development Community(SADC) includes; Angola, Botswana , Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe. West African Economic and Monetary Union (WAEMU)includes; Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal, and Togo. Economic and Monetary Union of Central Africa (CEMAC) and includes; Cameroon, Chad, Central African Republic, Equatorial Guinea,Gabon,and Republic of Congo 14 Chapter 1: International Scene East African Community 1.19. During the year under review, real GDP in the five member East Africa Community (EAC-5) remained unchanged at 5.4 per cent. The real GDP of Rwanda and Tanzania are estimated to have recorded the fastest growth of 6.2 and 6.5 per cent, respectively, in 2017. The community’s current account deficit as a percentage of GDP widened to 6.2 per cent in 2017 from 5.8 in 2016, while inflation rate surged to 6.7 per cent in 2017 from 5.7 per cent in 2016, on account of rising food and oil prices. Southern African Development Community 1.20. Economies in the Southern African Development Community (SADC) grew at 2.2 per cent in 2017 compared to 1.5 per cent in 2016. The growth was anchored on favourable weather conditions that supported agricultural production. The bloc’s inflation rate stood at 10.3 per cent in 2017 from 10.4 per cent in 2016, while the current account deficit as a percentage of GDP improved to 4.1 per cent from 4.4 per cent over the same period. Maghreb 1.21. The real GDP of Maghreb countries grew by 5.4 per cent in 2017 compared to 2.2 per cent in 2016. The growth was mainly attributed to a rebound in Libya’s economy which grew by 55.1 per cent in 2017 compared to a contraction of 3.0 per cent in 2016. The growth in Libya was mainly driven by increased oil production. In Morocco, strong recovery in agriculture production resulted in real GDP growth of 4.8 per cent in 2017. Tunisia’s economy expanded by 2.3 per cent in 2017 compared to a growth of 1.0 per cent in 2016 buoyed by recovery in the agriculture and manufacturing sectors. The Maghreb’s bloc current account deficit narrowed to 8.5 per cent in 2017 from 12.1 per cent in 2016 mainly due to improvement in net exports. Receipt from oil exports improved Libya’s current account balance from a deficit of 22.4 per cent in 2016 to a surplus of 1.8 per cent in 2017. Mashreq 1.22. The Mashreq recorded a decelerated growth of 3.8 per cent in 2017 compared to a growth of 3.9 per cent in 2016. This was mainly due to a deceleration of Egypt’s growth to 4.1 per cent in 2017 compared to a growth of 4.3 per cent in 2016. In Jordan, strong mining sector and increase in export of goods and services supported expansion in economic activities resulting to a growth of 2.3 per cent in 2017 from 2.0 per cent in 2016. Higher food prices coupled with the effects of currency float in Egypt, led to a surge in inflation rate to 23.5 per cent in 2017 from 10.2 per cent in 2016. The Mashreq’s bloc current account deficit widened as a percentage of GDP to 8.2 per cent in 2017 from 7.8 per cent in 2016. In Egypt, floating of exchange rate, lifting of foreign currency exchange and implementation of measures to attract foreign direct investors resulted in marginal improvement of current account deficit as a percentage of GDP to 5.9 per cent in 2017. WAEMU 1.23. In the metals-exporting economies in the West African Economic and Monetary Union (WAEMU), economic growth was broadly stable supported by uptake in mining output and rising metal prices. Growth was however, slowed in some member countries due to lower cocoa prices. Real GDP is estimated to have grown by 6.4 per cent during the period under review compared to 6.3 per cent in 2016. Strong growth in imports resulted in widening of current account deficit as percentage of GDP from 5.3 per cent in 2016 to 6.2 per cent in 2017. During the period under review, inflation was estimated at 1.0 per cent compared to 1.3 per cent recorded in 2016. 15 Economic Survey 2018 CEMAC 1.24. Among the economies in Central African Economic and Monetary Community (CEMAC), real GDP grew by 0.3 per cent in 2017 compared to a decline of 0.6 per cent in 2016. The improvement in growth was mainly due to improvement in global oil prices. Current account deficit as percentage of GDP narrowed to 6.5 per cent in 2017 compared to 13.9 per cent in 2016. This is attributable to sluggish growth in imports that improved terms of trade. In 2017, inflation eased to 1.0 per cent from 1.3 per cent in 2016 following increased oil prices that lowered exchange rate pressures. Outlook 1.25. On the global perspective, real GDP growth is projected to grow by 3.7 per cent in 2018. This will be supported by resilient growth in advanced economies as well as the effect of tax reforms in the United States of America. The reduction of corporate taxes and allowance of full investment expenditure coupled with fiscal stimulus in United States of America are projected to increase economic growth by 2.5 per cent in 2018. 1.26. In the OECD, real GDP is projected to grow by 2.4 per cent in 2018 while growth in the Euro Area is projected to slow down to 2.1 per cent over the same period. Real GDP growth in the emerging economies of Brazil, Russia, India, and China is projected to grow by 3.9 per cent in 2018. Growth in India is expected to grow to 7.4 per cent in 2018 supported by strong private consumption. Deceleration in credit growth is projected to slow down economic growth in China to 6.6 per cent in 2018. 1.27. Real GDP growth in Sub-Saharan Africa is projected to rise to 3.4 per cent in 2018 on account of strong domestic demand. Recovery of oil production coupled with improvement in the supply of electricity is expected to propel Nigeria’s economy to grow by 2.5 per cent in 2018. In EAC countries, real GDP is projected at 5.4 per cent in 2018. 1.28. Real GDP growth in ASEAN~5 countries is projected to expand by 5.2 per cent in 2018. In Maghreb, real GDP growth is expected to slow down to 3.8 per cent in 2018. Real GDP in the Mashreq is projected to grow by 4.2 per cent in 2018 as external demand grows and business and consumer confidence are expected to be boosted by reforms. 16 IC ECONOMY Chapter 2: Economic Performance Economic Performance Overview P Chapter 02 rovisional estimates of Gross Domestic Product (GDP) showed that Kenya’s economy expanded by 4.9 per cent in 2017 compared to a revised growth of 5.9 per cent in 2016. The slowdown in the performance of the economy was partly attributable to uncertainty associated with a prolonged electioneering period coupled with effects of adverse weather conditions. A widespread drought experienced during the fourth quarter of 2016 and somewhat suppressed long rains in 2017, negatively impacted on crop production and rearing of animals as well as generation of hydro-electric power. A slowdown in credit uptake to the private sector also contributed to the deceleration in growth during the period under review. 2.2. Performance across the various sectors of the economy varied widely, with Accommodation and Food services; Information and Communication Technology; Education; Wholesale and Retail trade; and Public Administration registering accelerated growths in 2017 compared to 2016. On the other hand, growths in Manufacturing; Agriculture, Forestry and Fishing; and Financial and Insurance decelerated significantly over the same period and therefore dampened the overall growth in 2017. 2.3. Generally, key macroeconomic indicators largely remained stable and therefore supportive of growth in 2017. Weighted interest rates on commercial banks loans and advances declined to 13.64 per cent in December 2017 from 13.69 per cent in December 2016. The Central Bank Rate (CBR) was maintained at 10.00 per cent throughout the year. In the money market, the Kenyan Shilling strengthened against most of the major trading currencies but weakened against the Euro and the US Dollar in 2017. There was a moderate buildup in inflationary pressures mainly due to significant increase in oil and food prices during the year under review. Consequently, inflation rose from 6.3 per cent in 2016 to 8.0 per cent in 2017 thereby overshooting the Central Bank’s upper limit of 7.5 per cent. 2.4. The current account deficit widened from KSh 375.3 billion in 2016 to a deficit of KSh 518.9 billion in 2017 on account of significant growth of imports against a slow growth of exports. The Nairobi Securities Exchange (NSE) 20-Share index rose to 3,712 points in December 2017 from 3,186 points in December 2016. 2.5. Domestic prices of petroleum products rose significantly in 2017 in response to a 24.6 per cent rise in the international oil prices. In particular, wholesale prices of motor gasoline premium and light diesel increased by 9.7 per cent and 8.7 per cent, respectively, in 2017. The increase in oil prices was mainly on account of reduced global supply against a strong demand growth during the year under review. 17 Economic Survey 2018 Sectoral Agriculture, Forestry and Fishing Analysis 2.6. Agriculture, Forestry and Fishing sector posted a decelerated growth of 1.6 per cent in 2017 compared to a revised growth of 4.7 per cent in 2016. The period under review was characterised by depressed long rains and early cessation of short rains. Consequently, the unfavourable weather conditions considerably suppressed production of key crops and adversely affected production in the livestock sub-sector. 2.7. Scarcity of key food crops and in particular maize and some vegetables was experienced in 2017 as evidenced by significant increases in their respective prices. The poor performance of the sector was exacerbated by marked decline in production of tea and coffee by 7.0 per cent and 11.5 per cent, respectively. Similarly, activity of sugarcane farming and growing of sisal were notably lower than the 2016 levels, further curtailing potential growth in the sector. In the dairy sub-sector, the quantity of milk delivered to processors declined from 648.2 million litres in 2016 to 535.7 million litres in 2017. 2.8. However, despite the general underperformance of the sector, production of food crops such as potatoes, beans and some cereals posted relatively improved performance and somehow mitigated the impact of the decline in the production of the other crops, thereby anchoring the growth in 2017. Similarly, growth in the sector was supported by notable increases in production of cut flowers, fruits and vegetables whose exports grew by 19.7, 16.8 and 10.7, per cent, respectively, in 2017. This translated to a significant increase in the value of export of horticultural produce from KSh 101.5 billion in 2016 to KSh 115.3 billion in 2017. Manufacturing 2.9. The manufacturing sector posted a marginal growth of 0.2 per cent in 2017 compared to a revised growth of 2.7 per cent in 2016. The slowed growth was partly attributable to uncertainties related to the 2017 general elections, high cost of inputs and stiff competition from cheap imports. Generally, most activities in the sector recorded significant decline leading to the slowdown experienced in 2017. The volume of food products manufactured declined by 10.8 per cent in 2017 compared to 1.9 per cent growth in 2016. 2.10. The sector’s performance in 2017 was negatively affected by reduced activity in agroprocessing that emanated from constrained domestic supply of agricultural raw materials. This was particularly so in the processing of tea and coffee that recorded significant decline during the period under review. Nevertheless, there was improved performance in some activities that somewhat supported growth during the period under review. In the food subsector, notable growths were realised in the manufacture of grain mill products (8.3%), bakery products (8.1%) and animal feeds (8.6%). Similarly, some activities in the manufacture of nonfood products recorded marginal gains during the review period though their proportionate contribution to the sector was significantly low. The quantities of apparels, basic metals, and paper and paper products manufactured in 2017 grew by 5.6, 4.0 and 4.2 per cent, respectively. Transportation and Storage 2.11. Transportation and storage sector remained vibrant during the review period despite its growth slowing to 7.3 per cent in 2017 compared to a 7.8 per cent growth in 2016. The slower growth was mainly on account of underperformance in land transportation, particularly that of freight. Performance of land freight dropped from 5.9 per cent in 2016 to 1.9 per cent in 2017 mainly due to depressed volumes of transportation of freight through road and railway. During the period under review, the number of newly registered lorries/trucks, pick-ups and heavy vans commonly used to transport goods declined by 22.5 per cent. The suppressed 18 Chapter 2: Economic Performance performance of land freight was reflected by a 9.4 per cent decline in consumption of light diesel in 2017. In addition, a significant rise in prices of petroleum products during the review period also dampened the sector’s growth. The average price of gas oil increased from KSh 77.83 in 2016 to KSh 89.03 in 2017 while that of motor gasoline rose by 11.1 per cent. 2.12. On the other hand, performance in other sub-sectors was comparatively better in 2017. Total port throughput grew by 10.6 per cent in 2017 while the number of ships that docked at the port of Mombasa increased from 1,607 in 2016 to 1,767 in 2017. Similarly, the volume of petroleum products transported through pipeline increased by 10.8 per cent in 2017 compared to a 9.7 per cent growth recorded in 2016. Information and Communication 2.13 The Information and Communication sector expanded by 11.0 per cent in 2017 compared to 9.7 per cent in 2016. The exemplary performance was mainly supported by expansion in the digital economy through mobile telephony, e-commerce, online training, tax administration, among others. Growth in the sector was principally driven by improved performance in the telecommunications sub-sector, which rose by 12.7 per cent in 2017. The enhanced performance in the telecommunications activity was mainly on account of a notable increase in the volume of call traffic from 42.2 billion minutes in 2016 to 44.1 billion minutes in 2017. Similarly, the number of Short Message Service (SMS) rose significantly to stand at 65.7 billion during the review period. Mobile money transfers rose significantly to KSh 3.6 trillion in 2017 while the number of mobile commerce transactions increased almost twofold. The sector’s growth was also supported by increased use of the Internet as evidenced by a 6.5 per cent increase in utilization of available bandwidth. Financial and Insurance Activities 2.14. In 2017, the sector’s growth decelerated to 3.1 per cent, mainly on account of significantly constrained growth in financial activities, despite better performance in insurance activities. Performance of activities of the financial sub-sector decelerated significantly from a growth of 6.9 per cent in 2016 to 2.6 per cent in 2017. The overall effect of the decline in financial activities was partially compensated by 6.5 per cent growth of the insurance sub-sector in 2017 compared to 5.2 per cent realized in 2016. The insurance sub-sector’s performance was buoyed by a significant growth in gross premium income during the period under review. A drop in the growth of credit to the private sector from 4.1 per cent in 2016 to 2.4 per cent in 2017 reflected the subdual of performance in the financial sub-sector. However, total domestic credit rose by 7.9 per cent compared to 6.4 per cent in 2016, primarily due to a 12.1 per cent growth in credit to the national government. During the review period, extended broad money supply (M3) as at December 2017 grew by 8.9 per cent compared to 3.6 per cent in the same period of 2016. 19 Economic Survey 2018 Electricity Supply 2.15. Growth of gross value added of electricity supply decelerated to 6.9 per cent from a revised growth of 9.5 per cent in 2016. The slowdown in performance of the sector in the period under review was mainly attributable to depressed generation of hydro-electricity due to failure of short rains in 2016 and reduced long rains in 2017. There was a considerable increase in generation of electricity from thermal sources that are highly input intensive, and therefore increased the sector’s production costs. Hydro generation declined by 29.9 per cent from 3,959.9 GWh in 2016 to 2,776.8 GWh in 2017. On the other hand, thermal generation increased significantly (72.3%) from 1,470.9 GWh in 2016 to 2,534.1 GWh in 2017. Renewable energy sources have continued to gain prominence as important sources of electricity supply. During the period under review, growth of the sector was supported by notable improvements in the generation of electricity using wind (8.7%) and geothermal sources (6.1%). Construction 2.16 Activity in the construction sector remained robust during the review period though the growth decelerated for the second year in a row to stand at 8.6 per cent in 2017. Cement consumption decreased by 8.2 per cent from 6.3 million tonnes in 2016 to 5.8 million tonnes in 2017, an indication of a slowdown in growth of construction activity compared to the previous year. The sector continued to benefit from public investment in infrastructure such as roads and railways, as well as heightened activity in the construction of public and private buildings. The sector’s growth was also driven by intensified civil works that led to a significant increase in the length of bitumen road, from 14.5 thousand kilometers in 2016 to 20.6 thousand kilometers in 2017. Similarly, the length of road under earth/gravel almost doubled in the year under review, a further reflection of gains realized in the sector. Accommodation and Food Services 2.17. The sector remained on a recovery path to grow by 14.7 per cent in 2017 compared to a revised growth of 13.3 per cent in 2016. This growth was despite a backdrop of uncertainty surrounding the general elections and negative travel advisories issued by some countries. The improved performance was mainly attributable to enhanced security and concerted efforts instituted by the government to market the country as a favourite tourist destination. Key indicators for the sector pointed to a robust performance during the period under review. Earnings from tourism activities increased markedly (20.3%) from KSh 99.7 billion in 2016 to KSh 119.9 billion in 2017. The number of international visitor arrivals grew by 8.1 per cent to 1,448.8 thousand in 2017 from 1,339.7 thousand in 2016. This resulted to an increase in hotel bed-nights occupancy from 6,448.5 thousand in 2016 to 7,174.2 thousand in 2017. 2.18. Tables 2.1 and Table 2.2 present details on the Gross Domestic Product (GDP) at current prices and, sectoral contribution to GDP from 2013-2017. The nominal GDP is estimated to have expanded from KSh 7,194.1 billion in 2016 to KSh 7,749.4 billion in 2017. There were no significant changes in the structure of the economy in terms of sectoral contribution to GDP except for Agriculture, Forestry and Fishing, and manufacturing that shed a combined share of 1.3 per cent. Other notable changes in contribution to GDP included those of Construction and Wholesale and Retail, which increased by 0.8 and 0.3 percentage points, respectively, in 2017. 20 Chapter 2: Economic Performance Table 2.1: Gross Domestic Product by Activity, 2013 - 2017 C u rre n t Price s, KS h Mil l ion In du stry 2013 2014 2015 + 2016 + 2017* A griculture, f orestry and f ishing……………………………………………... 1,254,760 1,483,078 1,897,347 2,311,862 2,442,371 Growing of crops……………………………………………... 875,165 1,066,344 1,446,376 1,830,608 1,927,867 A nimal production……………………………………………... 249,117 275,082 293,603 321,628 339,489 Support activ ities to agriculture……………………………………………... 28,932 30,770 37,371 33,510 38,857 Forestry & logging……………………………………………... 67,230 72,148 79,697 91,084 99,511 Fishing & aquaculture……………………………………………... 34,315 38,732 40,300 35,033 36,647 40,742 44,936 54,584 59,130 58,459 506,612 537,999 588,896 653,839 648,397 Manuf acture of f ood, bev erages and tobacco……………………………………………... 201,269 207,730 230,909 260,818 270,142 Other manuf acturing and repair and installation……………………………………………... 305,343 330,269 357,987 Mining and quarry ing……………………………………………... Manuf acturing……………………………………………... 393,021 378,255 55,190 89,358 131,565 140,708 W ater supply ; sewerage, waste management……………………………………………... 40,442 42,102 46,814 50,418 55,989 Electricity supply ……………………………………………... 53,901 Construction……………………………………………... 213,565 262,090 307,563 360,806 452,439 W holesale and retail trade; repairs……………………………………………... 380,646 431,985 473,395 524,303 588,540 Transportation and storage……………………………………………...378,525 462,457 510,488 561,757 599,438 351,796 379,320 404,231 415,848 A ir transport including support serv ices……………………………………………... 17,522 16,960 18,896 27,416 31,954 A ll other transport including postal and courier activ ities……………………………………………... 73,950 93,700 112,272 130,110 151,636 Land transport……………………………………………... 287,053 A ccommodation and f ood serv ice activ ities……………………………………………... 58,037 49,151 49,356 51,565 60,824 Inf ormation and communication……………………………………………... 68,478 65,592 91,200 103,807 109,388 27,647 52,410 61,579 66,233 P ublishing, broadcasting, other IT and inf ormation activ ities……………………………………………... 36,541 37,945 38,790 42,228 43,155 Telecommunications……………………………………………... 31,937 Financial and insurance activ ities……………………………………………... 313,120 Financial activ ities……………………………………………... 241,478 Insurance activ ities……………………………………………... 366,764 423,956 505,331 577,824 261,282 326,609 395,054 466,341 71,643 105,483 97,347 110,277 111,482 375,588 417,829 474,318 532,121 575,347 P rof essional, scientif ic and technical activ ities……………………………………………... 48,349 51,992 55,812 61,009 65,178 Real estate……………………………………………... A dministrativ e and support serv ice activ ities……………………………………………... 57,312 61,067 63,849 67,750 72,067 P ublic administration and def ence……………………………………………... 208,647 243,526 267,645 299,005 330,899 Education……………………………………………... 279,543 308,128 308,135 319,445 P re-primary and P rimary education……………………………………………... 115,460 126,156 251,958 137,521 137,002 159,293 General secondary education……………………………………………... 87,370 96,581 107,462 96,604 82,550 Higher and other education……………………………………………...49,127 56,807 63,145 74,529 77,602 Human health and social work activ ities……………………………………………... 75,157 91,969 108,023 119,561 126,311 A rts, entertainment and recreation……………………………………………... 6,636 7,490 8,045 8,864 8,969 34,506 39,486 43,128 48,270 A ctiv ities of households as employ ers;……………………………………………... 25,462 28,090 30,625 32,370 34,075 Financial Intermediation Serv ices Indirectly Measured (FISIM)……………………………………………... -124,136 -134,588 -163,306 -200,667 -228,918 Other serv ice activ ities……………………………………………... A l l e con om ic a ctivitie s 30,109 4,263,911 4,882,769 5,725,580 6,585,658 7,086,020 Tax es on products……………………………………………... G DP a t m a rk e t price s 481,179 * P rov isional + 519,878 558,605 608,489 663,406 4,745,090 5,402,647 6,284,185 7,194,147 7,749,426 Rev ised 21 Economic Survey 2018 Table 2.2: Gross Domestic Product by Activity Pe rce n ta ge C on tribu tion to G DP In du stry 2013 2014 2015 + 2016 + 2017* A griculture, f orestry and f ishing……………………………………………... 26.4 27.5 30.2 32.1 31.5 Growing of crops……………………………………………... 18.4 19.7 23.0 25.4 24.9 A nimal production……………………………………………... 5.3 5.1 4.7 4.5 4.4 Support activ ities to agriculture……………………………………………... 0.6 0.6 0.6 0.5 0.5 Forestry & logging……………………………………………... 1.4 1.3 1.3 1.3 1.3 Fishing & aquaculture……………………………………………... 0.7 0.7 0.6 0.5 0.5 Mining and quarry ing……………………………………………... 0.9 0.8 0.9 0.8 0.8 Manuf acturing……………………………………………... 10.7 10.0 9.4 9.1 8.4 Manuf acture of f ood, bev erages and tobacco……………………………………………... 4.2 3.8 3.7 3.6 3.5 Other manuf acturing and repair and installation……………………………………………... 6.4 6.1 5.7 5.5 4.9 Electricity supply ……………………………………………... 1.1 1.0 1.4 1.8 1.8 W ater supply ; sewerage, waste management……………………………………………... 0.9 0.8 0.7 0.7 0.7 Construction……………………………………………... 4.5 4.9 4.9 5.0 5.8 W holesale and retail trade; repairs……………………………………………... 8.0 8.0 7.5 7.3 7.6 Transportation and storage……………………………………………... 8.0 8.6 8.1 7.8 7.7 Land transport……………………………………………... 6.0 6.5 6.0 5.6 5.4 A ir transport including support serv ices……………………………………………... 0.4 0.3 0.3 0.4 0.4 A ll other transport including postal and courier activ ities……………………………………………... 1.6 1.7 1.8 1.8 2.0 A ccommodation and f ood serv ice activ ities……………………………………………... 1.2 0.9 0.8 0.7 0.8 Inf ormation and communication……………………………………………... 1.4 1.2 1.5 1.4 1.4 Telecommunications……………………………………………... 0.7 0.5 0.8 0.9 0.9 P ublishing, broadcasting, other IT and inf ormation activ ities……………………………………………... 0.8 0.7 0.6 0.6 0.6 Financial and insurance activ ities……………………………………………... 6.6 6.8 6.7 7.0 7.5 Financial activ ities……………………………………………... 5.1 4.8 5.2 5.5 6.0 Insurance activ ities……………………………………………... 1.5 2.0 1.5 1.5 1.4 Real estate……………………………………………... 7.9 7.7 7.5 7.4 7.4 P rof essional, scientif ic and technical activ ities……………………………………………... 1.0 1.0 0.9 0.8 0.8 A dministrativ e and support serv ice activ ities……………………………………………... 1.2 1.1 1.0 0.9 0.9 P ublic administration and def ence……………………………………………... 4.4 4.5 4.3 4.2 4.3 Education……………………………………………... 5.3 5.2 4.9 4.3 4.1 P rimary education……………………………………………... 2.4 2.3 2.2 1.9 2.1 General secondary education……………………………………………...1.8 1.8 1.7 1.3 1.1 Higher and other education……………………………………………... 1.0 1.1 1.0 1.0 1.0 Human health and social work activ ities……………………………………………... 1.6 1.7 1.7 1.7 1.6 A rts, entertainment and recreation……………………………………………... 0.1 0.1 0.1 0.1 0.1 Other serv ice activ ities……………………………………………... 0.6 0.6 0.6 0.6 0.6 A ctiv ities of households as employ ers;……………………………………………... 0.5 0.5 0.5 0.4 0.4 Financial Intermediation Serv ices Indirectly Measured (FISIM)……………………………………………... -2.6 -2.5 -2.6 -2.8 -3.0 A l l e con om ic a ctivitie s 89.9 90.4 91.1 91.5 91.4 Tax es on products……………………………………………... 10.1 9.6 8.9 8.5 8.6 G DP a t m a rk e t price s 100.0 100.0 100.0 100.0 100.0 * P rov isional + Rev ised 2.19. Details of GDP valued at 2009 prices and the corresponding growth rates from 2013 to 2017 are presented in Table 2.3 and Table 2.4, respectively. Gross domestic product in real terms increased from KSh 4,300.3 billion in 2016 to KSh 4,510.4 billion in 2017. Real GDP grew from a revised growth of 5.9 per cent registered in 2016 to stand at 4.9 per cent in 2017. Key drivers of the economy posted significantly constrained growths, and therefore largely accounted for the slowdown in 2017. During the review period, primary and secondary industries that include Agriculture, Mining, Manufacturing, Electricity and Water supply and, Construction activities grew at an average growth of 4.3 (significantly slower), compared to the service sectors that posted improved performance (approximately 7.0 per cent). This in essence implied that the growth realized in 2017 was mainly supported by performance of the service sectors. 22 Chapter 2: Economic Performance Table 2.3: Gross Domestic Product by Activity C on sta n t 2009 Price s, KS h Mil l ion 2015 + 2016 + 2017* In du stry 2013 2014 A griculture, f orestry and f ishing……………………………………………... 818,989 854,753 900,421 942,761 957,926 Growing of crops……………………………………………... 562,510 595,801 638,720 682,156 695,416 A nimal production……………………………………………... 167,372 169,798 173,546 177,418 178,428 Support activ ities to agriculture……………………………………………... 25,983 24,189 24,641 19,984 19,419 Forestry & logging……………………………………………... 41,567 42,946 43,377 46,515 48,299 Fishing & aquaculture……………………………………………... 21,557 22,019 20,137 16,688 16,364 Mining and quarry ing……………………………………………... 32,405 37,235 41,809 45,770 48,573 Manuf acturing……………………………………………... 403,128 413,281 428,153 439,665 440,478 Manuf acture of f ood, bev erages and tobacco……………………………………………... 151,260 153,450 162,637 167,243 167,635 Other manuf acturing and repair and installation……………………………………………... 251,868 259,831 265,516 272,422 272,844 Electricity supply ……………………………………………... 57,301 61,461 68,499 75,039 80,234 W ater supply ; sewerage, waste management……………………………………………... 29,659 30,826 31,654 33,460 34,330 Construction……………………………………………... 164,220 185,696 211,314 232,111 252,017 W holesale and retail trade; repairs……………………………………………... 275,291 294,357 311,746 322,468 340,812 Transportation and storage……………………………………………... 241,112 254,358 274,755 296,145 317,791 Land transport……………………………………………... 164,166 172,910 183,734 194,514 199,697 A ir transport including support serv ices……………………………………………... 21,570 21,508 21,275 22,118 23,279 A ll other transport including postal and courier activ ities……………………………………………... 55,376 59,941 69,746 79,513 94,816 A ccommodation and f ood serv ice activ ities……………………………………………... 52,441 43,657 43,086 48,803 55,986 Inf ormation and communication……………………………………………... 121,890 139,623 149,969 164,530 182,595 Telecommunications……………………………………………... 91,216 109,528 118,965 132,280 149,130 P ublishing, broadcasting, other IT and inf ormation activ ities……………………………………………... 30,674 30,095 31,004 32,250 33,465 Financial and insurance activ ities……………………………………………... 212,185 229,819 251,442 268,198 276,506 Financial activ ities……………………………………………... 180,674 196,614 216,554 231,504 237,427 Insurance activ ities……………………………………………... 31,511 33,206 34,888 36,694 39,079 Real estate……………………………………………... 294,747 311,148 333,537 362,724 384,955 P rof essional, scientif ic and technical activ ities……………………………………………... 39,111 40,712 42,188 44,820 46,740 A dministrativ e and support serv ice activ ities……………………………………………... 48,201 49,361 50,113 52,060 54,046 P ublic administration and def ence……………………………………………... 141,678 149,556 157,834 165,400 174,112 Education……………………………………………... 249,001 268,359 281,542 296,667 314,637 P re-primary and P rimary education……………………………………………... 111,490 112,041 113,891 117,341 121,362 General secondary education……………………………………………... 93,881 107,902 117,011 122,239 134,649 Higher and other education……………………………………………...43,630 48,417 50,640 57,087 58,626 Human health and social work activ ities……………………………………………... 63,579 68,728 72,745 76,203 80,745 A rts, entertainment and recreation……………………………………………... 5,039 5,190 5,269 5,479 5,822 Other serv ice activ ities……………………………………………... 24,403 25,989 27,551 29,212 31,254 A ctiv ities of households as employ ers;……………………………………………... 18,449 18,726 19,007 19,273 19,581 Financial Intermediation Serv ices Indirectly Measured……………………………………………... -86,932 -96,763 -109,826 -112,162 -105,734 A l l e con om ic a ctivitie s 3,205,897 3,386,075 3,592,808 3,808,627 3,993,407 Tax es on products……………………………………………... 440,924 456,111 469,093 491,676 516,984 G DP a t m a rk e t price s 3,646,821 3,842,186 4,061,901 4,300,302 4,510,391 * P rov isional + Rev ised 23 Economic Survey 2018 Table 2.4: Gross Domestic Product by Activity P ercentage Changes (growth) 2015 + 2016 + 2017* In du stry 2013 2014 A griculture, f orestry and f ishing……………………………………………...5 .4 4.4 5.3 4.7 1.6 Growing of crops……………………………………………... 6.6 5.9 7.2 6.8 1.9 A nimal production……………………………………………... 1.9 1.4 2.2 2.2 0.6 Support activ ities to agriculture……………………………………………... 3.8 -6.9 1.9 -18.9 -2.8 Forestry & logging……………………………………………... 5.0 3.3 1.0 7.2 3.8 Fishing & aquaculture……………………………………………... 5.9 2.1 -8.6 -17.1 -1.9 Mining and quarry ing……………………………………………... -4.2 14.9 12.3 9.5 6.1 Manuf acturing……………………………………………... 5.6 2.5 3.6 2.7 0.2 Manuf acture of f ood, bev erages and tobacco……………………………………………... 10.5 1.4 6.0 2.8 0.2 Other manuf acturing and repair and installation……………………………………………... 2.8 3.2 2.2 2.6 0.2 Electricity supply ……………………………………………... 9.8 7.3 11.5 9.5 6.9 W ater supply ; sewerage, waste management……………………………………………... 0.9 3.9 2.7 5.7 2.6 Construction……………………………………………... 6.1 13.1 13.8 9.8 8.6 W holesale and retail trade; repairs……………………………………………... 8.4 6.9 5.9 3.4 5.7 Transportation and storage……………………………………………... 1.3 5.5 8.0 7.8 7.3 Land transport……………………………………………... 4.5 5.3 6.3 5.9 2.7 A ir transport including support serv ices……………………………………………... 5.4 -0.3 -1.1 4.0 5.2 A ll other transport including postal and courier activ ities……………………………………………... -8.2 8.2 16.4 14.0 19.2 A ccommodation and f ood serv ices……………………………………………... -4.6 -16.7 -1.3 13.3 14.7 Inf ormation and communication……………………………………………... 12.5 14.5 7.4 9.7 11.0 Telecommunications……………………………………………... 17.1 20.1 8.6 11.2 12.7 P ublishing, broadcasting, other IT and inf ormation activ ities……………………………………………... 0.8 -1.9 3.0 4.0 3.8 Financial and insurance activ ities……………………………………………... 8.2 8.3 9.4 6.7 3.1 Financial activ ities……………………………………………... 8.1 8.8 10.1 6.9 2.6 Insurance activ ities……………………………………………... 8.4 5.4 5.1 5.2 6.5 Real estate……………………………………………... 4.1 5.6 7.2 8.8 6.1 P rof essional, scientif ic and technical activ ities……………………………………………... 6.7 4.1 3.6 6.2 4.3 A dministrativ e and support serv ice activ ities……………………………………………... 1.2 2.4 1.5 3.9 3.8 P ublic administration and def ence……………………………………………... 2.8 5.6 5.5 4.8 5.3 Education……………………………………………... 6.3 7.8 4.9 5.4 6.1 P rimary education……………………………………………... 1.6 0.5 1.7 3.0 3.4 General secondary education……………………………………………...12.2 14.9 8.4 4.5 10.2 Higher and other education……………………………………………... 7.2 11.0 4.6 12.7 2.7 Human health and social work activ ities……………………………………………... 7.7 8.1 5.8 4.8 6.0 A rts, entertainment and recreation……………………………………………... 3.0 3.0 1.5 4.0 6.3 Other serv ice activ ities……………………………………………... 7.3 6.5 6.0 6.0 7.0 A ctiv ities of households as employ ers;……………………………………………... 1.5 1.5 1.5 1.4 1.6 Financial Intermediation Serv ices Indirectly Measured……………………………………………... 5.2 11.3 13.5 2.1 -5.7 A l l in du strie s a t ba sic price s 5.4 5.6 6.1 6.0 4.9 Tax es on products……………………………………………... 9.5 3.4 2.8 4.8 5.1 G DP a t m a rk e t price s 5.9 5.4 5.7 5.9 4.9 * P rov isional +Rev ised 24 Chapter 2: Economic Performance 2.20. Table 2.5 shows the sectoral contribution to the overall growth for the period 2013-2017. The highest contributors to the growth recorded in 2017 were taxes on products (12.0%); Real Estate (10.6%); Transportation and Storage (10.3%); Construction (9.5%); Education (8.6%) and Information and Communication Technology (8.6%). This was a significant shift in structure of the sources of growth in 2017, compared to past years, where primary and secondary industries dominated in terms of contribution to overall growth. In 2017, all primary and secondary industries’ contribution to growth decelerated notably, leaving a considerable component of the growth to be explained by service-oriented sectors. Table 2.5: Sources of Growth, 2013-2017 Percen ta ge C h a n ges (growth ) 2015 + 2016 + 2017* In du stry 2013 2014 A griculture, f orestry and f ishing……………………………………………... 20.9 18.3 20.8 17.8 7.2 Growing of crops……………………………………………... 17.3 17.0 19.5 18.2 6.3 A nimal production……………………………………………... 1.6 1.2 1.7 1.6 0.5 Support activ ities to agriculture……………………………………………... 0.5 -0.9 0.2 -2.0 -0.3 Forestry & logging……………………………………………... 1.0 0.7 0.2 1.3 0.8 Fishing & aquaculture……………………………………………... 0.6 0.2 -0.9 -1.4 -0.2 Mining and quarry ing……………………………………………... -0.7 2.5 2.1 1.7 1.3 Manuf acturing……………………………………………... 10.6 5.2 6.8 4.8 0.4 Manuf acture of f ood, bev erages and tobacco……………………………………………... 7.1 1.1 4.2 1.9 0.2 Other manuf acturing and repair and installation……………………………………………... 3.4 4.1 2.6 2.9 0.2 Electricity supply ……………………………………………... 2.5 2.1 3.2 2.7 2.5 W ater supply ; sewerage, waste management……………………………………………... 0.1 0.6 0.4 0.8 0.4 Construction……………………………………………... 4.7 11.0 11.7 8.7 9.5 W holesale and retail trade; repairs……………………………………………... 10.5 9.8 7.9 4.5 8.7 Transportation and storage……………………………………………... 1.6 6.8 9.3 9.0 10.3 Land transport……………………………………………... 3.5 4.5 4.9 4.5 2.5 A ir transport including support serv ices……………………………………………... 0.5 0.0 -0.1 0.4 0.6 A ll other transport including postal and courier activ ities……………………………………………... -2.5 2.3 4.5 4.1 7.3 A ccommodation and f ood serv ices…………………………… -1.2 -4.5 -0.3 2.4 3.4 Inf ormation and communication……………………………………………... 6.7 9.1 4.7 6.1 8.6 Telecommunications……………………………………………... 6.6 9.4 4.3 5.6 8.0 Publishing, broadcasting, other IT and inf ormation activ ities……………………………………………... 0.1 -0.3 0.4 0.5 0.6 Financial and insurance activ ities……………………………………………... 7.9 9.0 9.8 7.0 4.0 Financial activ ities……………………………………………... 6.7 8.2 9.1 6.3 2.8 Insurance activ ities……………………………………………... 1.2 0.9 0.8 0.8 1.1 Real estate……………………………………………... 5.8 8.4 10.2 12.2 10.6 Prof essional, scientif ic and technical activ ities……………………………………………... 1.2 0.8 0.7 1.1 0.9 A dministrativ e and support serv ice activ ities……………………………………………... 0.3 0.6 0.3 0.8 0.9 Public administration and def ence……………………………………………... 1.9 4.0 3.8 3.2 4.1 Education……………………………………………………. 7.3 9.9 6.0 6.3 8.6 Primary education……………………………………………... 0.9 0.3 0.8 1.4 1.9 General secondary education……………………………………………...5 .0 7.2 4.1 2.2 5.9 Higher and other education……………………………………………... 1.4 2.4 1.0 2.7 0.7 Human health and social work activ ities……………………………………………... 2.3 2.6 1.8 1.5 2.2 A rts, entertainment and recreation……………………………………………... 0.1 0.1 0.0 0.1 0.2 Other serv ice activ ities……………………………………………... 0.8 0.8 0.7 0.7 1.0 A ctiv ities of households as employ ers;……………………………………………... 0.1 0.1 0.1 0.1 0.1 Financial Intermediation Serv ices Indirectly Measured……………………………………………... -2.1 -5.0 -5.9 -1.0 3.1 A ll in du stries a t ba sic prices 81.2 92.2 94.1 90.5 88.0 Tax es on products……………………………………………... 18.8 7.8 5.9 9.5 12.0 G DP a t m a rk et prices 100.0 100.0 100.0 100.0 100.0 * Prov isional + Rev ised 25 Economic Survey 2018 2.21. Table 2.6 provides the annual production accounts for all industries for the period 20132017. Total output grew by 6.2 per cent from KSh 11,202.5 billion in 2016 to KSh 12,248.3 billion in 2017. Intermediate consumption, which entails the value of goods and services used up in the process of production accelerated to grow by 11.8 per cent in 2017 compared to an increase of 6.4 per cent in 2016. The value of compensation of employees grew faster (12.9%) in 2017 compared to 8.9 per cent increase in 2016. In contrast, the gross operating surplus/ mixed income that is interpreted as the remuneration of capital for incorporated enterprises; and return for labour for unincorporated enterprises expanded by 5.1 per cent in 2017. 26 Chapter 2: Economic Performance Table 2.6: Annual Production Accounts by Industry, 2013-2017 Industry 2013 2015 + 2014 Agriculture, forestry and fishing Output at basic prices……………………………………………... 1,502,250 1,762,894 279,817 Intermediate consumption……………………………………………... 247,490 Value added, gross……………………………………………... 1,254,760 1,483,077 153,843 Compensation of employees……………………………………………... 131,228 Operating surplus/mixed income, gross……………………………………………... 1,123,532 1,329,235 Mining and quarrying Output at basic prices……………………………………………... 69,514 78,638 33,702 Intermediate consumption……………………………………………... 28,772 44,936 Value added, gross……………………………………………... 40,742 13,940 Compensation of employees……………………………………………... 8,843 30,996 Operating surplus/mixed income, gross……………………………………………... 31,899 Manufacturing Output at basic prices……………………………………………... 1,737,699 1,820,369 1,231,087 1,282,369 Intermediate consumption……………………………………………... 537,999 Value added, gross……………………………………………... 506,612 147,453 Compensation of employees……………………………………………... 127,186 390,546 Operating surplus/mixed income, gross……………………………………………... 379,426 Electricity, gas and water supply Output at basic prices……………………………………………...171,628 175,523 78,231 Intermediate consumption……………………………………………... 77,285 Value added, gross……………………………………………... 94,343 97,292 25,308 Compensation of employees……………………………………………... 27,127 Operating surplus/mixed income, gross……………………………………………... 67,215 71,985 Construction 683,376 Output at basic prices……………………………………………...582,896 421,285 Intermediate consumption……………………………………………... 369,331 262,090 Value added, gross……………………………………………... 213,565 126,564 Compensation of employees……………………………………………... 98,694 Operating surplus/mixed income, gross……………………………………………... 114,872 135,526 Wholesale and retail trade 773,371 Output at basic prices……………………………………………...685,949 341,386 Intermediate consumption……………………………………………... 305,303 431,985 Value added, gross……………………………………………... 380,646 174,523 Compensation of employees……………………………………………... 143,960 257,462 Operating surplus/mixed income, gross……………………………………………... 236,686 Transportation and storage Output at basic prices……………………………………………...775,826 893,141 430,684 Intermediate consumption……………………………………………... 397,301 462,457 Value added, gross……………………………………………... 378,525 Compensation of employees……………………………………………... 111,555 128,867 Operating surplus/mixed income, gross……………………………………………... 266,970 333,590 Accomodation and Food Services Output at basic prices……………………………………………...132,153 113,503 64,351 Intermediate consumption……………………………………………... 74,115 Value added, gross……………………………………………... 58,037 49,151 30,466 Compensation of employees……………………………………………... 29,678 18,685 Operating surplus/mixed income, gross……………………………………………... 28,359 Information and communication Output at basic prices……………………………………………...228,405 259,000 Intermediate consumption……………………………………………... 159,928 193,408 Value added, gross……………………………………………... 68,478 65,592 Compensation of employees……………………………………………... 50,238 55,138 10,454 Operating surplus/mixed income, gross……………………………………………... 18,240 Financial and insurance activities Output at basic prices……………………………………………...413,707 492,198 125,434 Intermediate consumption……………………………………………... 100,587 Value added, gross……………………………………………... 313,120 366,764 Compensation of employees……………………………………………... 93,668 102,495 Operating surplus/mixed income, gross……………………………………………... 219,452 264,269 KSh Million 2016 + 2017* 2,212,671 315,324 1,897,347 209,471 1,687,876 2,665,810 353,948 2,311,862 260,998 2,050,864 2,844,984 402,613 2,442,371 288,042 2,154,329 91,477 36,892 54,584 17,854 36,731 99,953 40,823 59,130 20,050 39,079 104,350 45,891 58,459 22,416 36,044 1,977,169 1,388,274 588,896 163,392 425,503 2,120,718 1,466,879 653,839 174,767 479,072 2,204,805 1,556,408 648,397 188,893 459,504 208,879 72,707 136,172 24,269 111,903 251,267 69,284 181,983 30,413 151,570 264,439 67,742 196,697 34,055 162,643 804,219 496,657 307,563 185,235 122,328 823,871 463,065 360,806 188,642 172,164 1,031,493 579,055 452,439 282,035 170,404 839,519 366,124 473,395 178,893 294,502 923,880 399,578 524,303 200,609 323,694 1,030,389 441,848 588,540 228,595 359,945 956,867 446,380 510,488 145,492 364,996 1,025,831 464,075 561,757 152,348 409,409 1,115,665 516,227 599,438 169,929 429,509 116,720 67,364 49,356 33,887 15,469 134,507 82,942 51,565 35,257 16,308 157,992 97,168 60,824 38,101 22,723 280,434 189,234 91,200 62,602 28,598 311,221 207,414 103,807 71,234 32,573 345,068 235,679 109,388 73,168 36,220 555,690 131,734 423,956 83,194 340,762 645,062 139,732 505,331 89,197 416,134 741,097 163,273 577,824 88,066 489,758 * Provisional + Current Prices Revised 27 Economic Survey 2018 Table 2.6: Annual Production Accounts by Industry, 2013-2017 (Cont’d) In du stry 2013 2014 Re a l e sta te Output at basic prices……………………………………………... 420,365 467,885 Intermediate consumption……………………………………………... 44,777 50,056 Value added, gross……………………………………………... 375,588 417,829 Compensation of employ ees……………………………………………... 32,644 36,436 Operating surplus/mix ed income, gross……………………………………………... 342,944 381,393 Profe ssion a l , scie n tific a n d te ch n ica l a ctivitie s Output at basic prices……………………………………………... 71,247 72,950 Intermediate consumption……………………………………………... 22,898 20,958 Value added, gross……………………………………………... 48,349 51,992 Compensation of employ ees……………………………………………... 28,230 30,387 Operating surplus/mix ed income, gross……………………………………………... 20,119 21,605 A dm in istra tive a n d su pport se rvice a ctivitie s Output at basic prices……………………………………………... 68,239 72,794 Intermediate consumption……………………………………………... 10,927 11,726 Value added, gross……………………………………………... 57,312 61,067 Compensation of employ ees……………………………………………... 25,050 25,976 Operating surplus/mix ed income, gross……………………………………………... 32,262 35,092 Pu bl ic a dm in istra tion a n d de fe n ce Output at basic prices……………………………………………... 363,287 417,742 Intermediate consumption……………………………………………... 154,639 174,216 Value added, gross……………………………………………... 208,647 243,526 Compensation of employ ees……………………………………………... 164,585 191,806 Operating surplus/mix ed income, gross……………………………………………... 44,062 51,720 Edu ca tion Output at basic prices……………………………………………... 430,102 483,396 Intermediate consumption……………………………………………... 178,144 203,852 Value added, gross……………………………………………... 251,958 279,543 Compensation of employ ees……………………………………………... 234,474 266,008 Operating surplus/mix ed income, gross……………………………………………... 17,484 13,536 He a l th a n d socia l work Output at basic prices……………………………………………... 154,479 164,850 Intermediate consumption……………………………………………... 79,322 72,881 Value added, gross……………………………………………... 75,157 91,969 Compensation of employ ees……………………………………………... 84,875 104,938 Operating surplus/mix ed income, gross……………………………………………... -9,718 -12,969 O th e r se rvice a ctivitie s Output at basic prices……………………………………………... 95,188 106,339 Intermediate consumption……………………………………………... 32,982 36,252 Value added, gross……………………………………………... 62,206 70,086 Compensation of employ ees……………………………………………... 51,439 57,499 Operating surplus/mix ed income, gross……………………………………………... 10,767 12,587 Le s s : Fin a n c ia l s e rvic e s in d ire c tly m e a s u re d … Intermediate consumption……………………………………………... 124,136 134,588 Value added, gross……………………………………………... -124,136 -134,588 A l l in du strie s a t ba sic price s Output at basic prices……………………………………………... 7,902,933 8,837,967 Intermediate consumption……………………………………………... 3,639,022 3,955,197 Gross v alue added at basic prices……………………………………………... 4,263,911 4,882,769 Other tax es on production……………………………………………... 137,804 151,789 Le s s : S u b s id ie s …………………………….. Compensation of employ ees……………………………………………... 1,443,473 1,671,646 Gross operating surplus/mix ed income……………………………………………... 2,682,633 3,059,334 Tota l e con om y Output at basic prices……………………………………………... 7,902,933 8,837,967 Tax es on products less subsidies on products……………………………………………... 481,179 519,878 Intermediate consumption……………………………………………... 3,639,022 3,955,197 G DP a t m a rk e t price s 4,745,090 5,402,647 * P rov isional + Rev ised 28 2015 + Current P rices 2016 + KSh Million 2017* 531,735 57,418 474,318 40,820 433,498 601,937 69,816 532,121 44,831 487,290 655,078 79,731 575,347 48,658 526,689 74,812 18,999 55,812 32,551 23,261 81,361 20,351 61,009 34,699 26,311 88,793 23,615 65,178 37,464 27,715 75,866 12,016 63,849 32,114 31,735 80,656 12,906 67,750 33,287 34,463 86,112 14,046 72,067 34,777 37,290 499,174 231,529 267,645 203,751 63,893 540,280 241,275 299,005 232,562 66,443 614,845 283,947 330,899 261,155 69,744 537,608 229,480 308,128 294,325 13,803 557,815 249,680 308,135 285,915 22,220 587,635 268,191 319,445 301,157 18,287 185,698 77,675 108,023 107,039 984 210,337 90,776 119,561 121,068 -1,507 232,983 106,672 126,311 137,049 -10,738 117,002 38,847 78,155 62,864 15,291 127,960 43,598 84,361 69,653 14,708 142,596 51,281 91,314 76,717 14,597 163,306 -163,306 200,667 -200,667 228,918 -228,918 10,065,540 4,339,960 5,725,580 168,336 11,202,466 4,616,808 6,585,658 186,119 12,248,323 5,162,303 7,086,020 201,542 1,877,753 3,679,491 2,045,528 4,354,011 2,310,277 4,574,201 10,065,540 558,605 4,339,960 6,284,185 11,202,466 608,489 4,616,808 7,194,147 12,248,323 663,406 5,162,303 7,749,426 Chapter 2: Economic Performance 2.22. The components of expenditure on GDP at current prices and their respective shares to GDP at market prices are shown Table 2.7 and Table 2.8, respectively. Gross domestic expenditure increased from KSh 7,889.7 billion in 2016 to KSh 8,823.0 billion in 2017. The share of private consumption remained dominant over other components but the magnitude was largely unchanged over the five-year period. Similarly, the share of government final consumption remained relatively stable at about 14.0 per cent during the same period. The contribution of Gross Fixed Capital Formation (GFCF) rallied from a dip of 4.3 percentage points in 2016 to stand at 18.9 per cent. The share of imports of goods and services to total gross domestic product grew faster than that of export of goods and services during the review period. Table 2.7: Expenditure on the Gross Domestic Product, 2013-2017 C u rre n t Price s - KS h Mil l ion 2015 + 2016 + 2017* Ex pe n ditu re ca te gory 2013 2014 Gov ernment f inal consumption ex penditure……………………………………………... 679,876 764,783 885,293 956,349 1,105,243 P riv ate f inal consumption ex penditure……………………………………………... 3,787,901 4,272,830 4,907,347 5,637,043 6,162,336 Final consumption ex penditure by NP ISH……………………………………………... 43,552 43,709 47,726 52,191 61,877 Gross f ix ed capital f ormation……………………………………………... 976,086 1,236,107 1,358,366 1,237,818 1,461,256 Changes in inv entories……………………………………………... -22,059 -24,203 -9,406 6,288 32,286 G ross dom e stic e x pe n ditu re 5,465,356 6,293,226 7,189,326 7,889,689 8,822,999 Ex ports of goods and serv ices……………………………………………... 945,478 988,521 1,042,700 1,005,110 1,079,589 Imports of goods and serv ices……………………………………………... 1,575,731 1,782,945 1,735,621 1,638,838 1,973,678 Discrepancy 1 ……………………………………………... -89,959 -96,392 -212,220 -61,815 -179,484 G ross dom e stic produ ct a t m a rk e t price s 4,745,143 5,402,410 6,284,185 7,194,147 7,749,426 1 Dif f erence between GDP production approach and GDP ex penditure approach 2 Non P rof it Institutions Serv ing Households * P rov isional + Rev ised Table 2.8: Expenditure on the Gross Domestic Product, 2013-2017 Pe rce n ta ge con tribu tion to G DP 2015 + 2016 + 2017* Ex pe n ditu re ca te gory 2013 2014 Gov ernment f inal consumption ex penditure……………………………………………... 14.3 14.2 14.1 13.3 14.3 P riv ate f inal consumption ex penditure……………………………………………... 79.8 79.1 78.1 78.4 79.5 Final consumption ex penditure by NP ISH……………………………………………... 0.9 0.8 0.8 0.7 0.8 Gross f ix ed capital f ormation……………………………………………... 20.6 22.9 21.6 17.2 18.9 Changes in inv entories……………………………………………... -0.5 -0.4 -0.1 0.1 0.4 G ross dom e stic e x pe n ditu re 115.2 116.5 114.4 109.7 113.9 Ex ports of goods and serv ices……………………………………………... 19.9 18.3 16.6 14.0 13.9 Imports of goods and serv ices……………………………………………... 33.2 33.0 27.6 22.8 25.5 Discrepancy …………………………… -1.9 -1.8 -3.4 -0.9 -2.3 G ross dom e stic produ ct a t m a rk e t price s 100.0 100.0 100.0 100.0 100.0 * P rov isional + Rev ised 2.23. Components of expenditure on GDP valued at constant prices are presented in Table 2.9. The growth of gross domestic expenditure increased more than three-fold from 2.5 per cent in 2016 to 7.8 per cent in 2017. Private consumption expenditure recorded the highest growth since 2013 (7.0%) in 2017, while government consumption grew slower by 0.1 percentage points. The value of export of goods and services contracted further by 6.2 per cent while that of imports rallied from a contraction of 6.3 per cent to grow by 8.4 per cent mainly due to recovery of the international oil prices. 29 Economic Survey 2018 Table 2.9: Expenditure on the Gross Domestic Product, 2013-2017 C on sta n t 2009 Price s - KS h Mil l ion 2015 + 2016 + 2017* Ex pe n ditu re ca te gory 2013 2014 Gov ernment f inal consumption ex penditure……………………………………………... 532,890 541,923 604,354 655,598 710,508 P riv ate f inal consumption ex penditure……………………………………………... 2,824,756 2,946,395 3,099,387 3,244,554 3,470,673 Final consumption ex penditure by NP ISH……………………………………………... 33,150 33,502 34,328 35,143 36,479 Gross f ix ed capital f ormation……………………………………………... 725,143 828,131 882,677 800,038 850,356 Changes in inv entories……………………………………………... -8,545 -33,774 -48,544 -47,767 -13,524 G ross dom e stic e x pe n ditu re 4,107,394 4,316,176 4,572,203 4,687,565 5,054,491 Ex ports of goods and serv ices……………………………………………... 711,768 753,318 800,053 779,133 731,107 Imports of goods and serv ices……………………………………………... 1,132,058 1,249,558 1,264,204 1,184,866 1,284,063 Discrepancy 1 ……………………………………………... -40,245 22,095 -46,150 18,470 8,856 G ross dom e stic produ ct a t m a rk e t price s 3,646,858 3,842,032 4,061,901 4,300,302 4,510,391 1 Dif f erence between GDP production approach and GDP ex penditure approach * P rov isional + Rev ised Table 2.10: Expenditure on the Gross Domestic Product, 2013-2017 Ex pe n ditu re ca te gory 2013 2014 Gov ernment f inal consumption ex penditure……………………………………………... 6.1 1.7 P riv ate f inal consumption ex penditure……………………………………………... 8.4 4.3 Final consumption ex penditure by NP ISH……………………………………………... 3.5 1.1 Gross f ix ed capital f ormation……………………………………………... 2.1 14.2 G ross dom e stic e x pe n ditu re 6.4 5.1 Ex ports of goods and serv ices……………………………………………... -2.2 5.8 Imports of goods and serv ices……………………………………………... -0.4 10.4 G ross dom e stic produ ct a t m a rk e t price s 5.9 5.4 * P rov isional + Rev ised Pe rce n ta ge C h a n ge s (growth ) 2015 + 2016 + 2017* 11.5 8.5 8.4 5.2 4.7 7.0 2.5 2.4 3.8 6.6 -9.4 6.3 5.9 2.5 7.8 6.2 -2.6 -6.2 1.2 -6.3 8.4 5.7 5.9 4.9 2.24. Table 2.11a provides details of the value of additions to fixed assets by type at current prices from 2013 to 2017. Table 2.11b shows the shares of the various types of fixed assets during the period under review. The value of additions to fixed assets increased from KSh 1,237.8 billion in 2016 to KSh 1,461.3 billion in 2017. The value of dwellings, buildings, and other machinery and equipment accounted for 23.3, 22.2 and 17.8 per cent of total Gross Fixed Capital Formation (GFCF), respectively in 2017. Table 2.11a: Gross Fixed Capital Formation, 2013-2017 C u rre n t Price s - KS h Mil l ion 2015 + 2016 + 2017* Ty pe of A sse t 2013 2014 Dwellings……………………………………………... 197,336 231,539 257,322 270,289 340,606 Buildings other than dwellings……………………………………………... 195,630 224,904 245,175 261,591 324,520 Other structures……………………………………………... 109,016 133,706 180,304 166,166 173,207 Transport equipment……………………………………………... 182,236 298,121 302,856 175,507 215,455 ICT equipment……………………………………………... 63,247 57,896 73,407 79,052 93,806 Other machinery and equipment……………………………………………... 190,000 249,141 251,648 232,368 259,475 A nimal resources y ielding repeat products……………………………………………... 9,407 9,674 10,438 11,373 9,261 Tree, crop and plant resources y ielding repeat products……………………………………………... 6,832 6,322 6,616 6,973 7,362 Intellectual property products……………………………………………... 22,382 24,804 30,601 34,500 37,564 Tota l 976,086 1,236,107 1,358,366 1,237,818 1,461,256 * P rov isional + Rev ised 30 Chapter 2: Economic Performance Table 2.11b: Gross Fixed Capital Formation, 2013-2017 Pe rce n ta ge C on tri bu ti on 2015 + 2016 + 2017* Ty pe of A sse t 2013 2014 Dwellings……………………………………………... 20.2 18.7 18.9 21.8 23.3 Buildings other than dwellings……………………………………………... 20.0 18.2 18.0 21.1 22.2 Other structures……………………………………………... 11.2 10.8 13.3 13.4 11.9 T ransport equipment……………………………………………... 18.7 24.1 22.3 14.2 14.7 ICT equipment……………………………………………... 6.5 4.7 5.4 6.4 6.4 Other machinery and equipment……………………………………………... 19.5 20.2 18.5 18.8 17.8 A nimal resources y ielding repeat products……………………………………………... 1.0 0.8 0.8 0.9 0.6 T ree crop and plant resources y ielding repeat products……………………………………………... 0.7 0.5 0.5 0.6 0.5 Intellectual property products……………………………………………... 2.3 2.0 2.3 2.8 2.6 Tota l 100.0 100.0 100.0 100.0 100.0 * P rov isional + Rev ised 2.25. Tables 2.12a and 2.12b present the values of real GFCF by type of asset and the corresponding growth rates for the period 2013 - 2017. The total value of real GFCF increased by 6.3 per cent in 2017 compared to a contraction of 9.4 per cent in 2016. The rebound was mainly as a result of a substantial growth in additions to transport equipment during the review period. The value of additions to dwellings and other buildings other than dwellings, grew by 15.8 and 13.6 per cent, respectively, in 2017. Table 2.12a: Gross Fixed Capital Formation, 2013-2017 C on sta n t 2009 Price s - KS h Mil l ion Ty pe of A sse t Dwellings……………………………………………... 2013 2014 2015 + 2016 + 2017* 156,739 172,082 188,006 189,862 219,767 Buildings other than dwellings……………………………………………... 156,352 170,332 182,275 187,856 213,368 Other structures……………………………………………... 87,128 101,263 134,046 119,328 113,881 Transport equipment……………………………………………... 140,838 225,839 218,525 123,997 147,783 36,357 34,521 47,412 48,425 90,862 89,126 91,804 66,296 A nimal resources y ielding repeat products……………………………………………... 6,173 5,944 6,104 6,509 5,171 Tree crop and plant resources y ielding repeat products……………………………………………... 5,607 4,971 5,047 5,162 5,283 ICT equipment……………………………………………... 47,791 Other machinery and equipment……………………………………………... 106,167 Intellectual property products……………………………………………... 18,348 20,480 25,027 28,107 30,382 828,131 882,677 800,038 850,356 2013 2014 2015 + 2016 + 2017* 10.2 9.8 9.3 1.0 15.8 Buildings other than dwellings……………………………………………... 12.0 8.9 7.0 3.1 13.6 Tota l 725,143 * P rov isional + Rev ised Table2.12b: Gross Fixed Capital Formation, 2013-2017 Pe rce n ta ge C h a n ge s (growth ) Ty pe of A sse t Dwellings……………………………………………... Other structures……………………………………………... 1.6 16.2 32.4 -11.0 -4.6 Transport equipment……………………………………………... 3.0 60.4 -3.2 -43.3 19.2 -5.8 -23.9 -5.1 37.3 2.1 -14.4 -1.9 3.0 -27.8 A nimal resources y ielding repeat products……………………………………………... 5.0 -3.7 2.7 6.6 -20.6 Tree crop and plant resources y ielding repeat products……………………………………………... 2.6 -11.3 1.5 2.3 2.4 ICT equipment……………………………………………... Other machinery and equipment……………………………………………... -15.0 Intellectual property products……………………………………………... -2.4 11.6 22.2 12.3 8.1 Tota l 14.2 6.6 -9.4 6.3 2.1 * P rov isional + Rev ised 31 Economic Survey 2018 2.26. The relationship between the GDP and Gross National Income (GNI) for the period 2013 to 2017 is shown in Table 2.13 and Table 2.14. The nominal GNI increased from KSh 7,124.7 billion in 2016 to 7,664.6 billion in 2017. Similarly, the Gross National Disposable Income (GNDI) grew by 9.0 per cent from KSh billion 7,452.6 billion in 2016 to KSh 8,124.6 billion in 2017. Gross domestic product per capita rose from KSh 158,576 in 2016 to KSh 166,315 in 2017 while GNI per capita increased by 4.9 per cent to stand at KSh 164,494 in 2017. Primary incomes receivable from the rest of the world declined from KSh 44.0 billion in 2016 to KSh 41.2 billion in 2017. Current transfers receivable from the rest of the world increased significantly to stand at KSh 465.8 billion in 2017. Table 2.13: Gross Domestic Product and Gross National Income, 2013-2017 C u rre n t Price s - KS h Mil l ion 2013 2014 2015 + 2016 + 2017* 2,314,567 C u rre n t Price s, KS h Mil l ion Compensation of employ ees............................ 1,444,135 1,674,092 1,881,911 2,048,654 Consumption of f ix ed capital........................... 561,868 730,422 815,724 861,559 995,876 Net operating surplus....................................... 2,257,907 2,478,256 3,027,945 3,675,444 3,775,577 Tax es on products............................................ 481,179 519,878 558,605 608,489 663,406 G ross dom e stic produ ct a t m a rk e t price s.. 4,745,090 5,402,647 6,284,185 7,194,147 7,749,426 P rimary incomes Receiv able f rom the rest of the world............ 28,712 43,643 48,298 43,991 41,208 P ay able to rest of the world.......................... -80,384 -119,981 -115,459 -113,407 -126,038 G ross n a tion a l in com e a t m a rk e t price s... 4,693,419 5,326,310 6,217,024 7,124,731 7,664,596 465,763 Current transf ers Receiv able f rom the rest of the world............ 268,925 327,853 345,218 333,039 P ay able to rest of the world.......................... -4,020 -17,853 -6,217 -5,192 -5,787 G ross n a tion a l disposa bl e in com e .............. 4,958,324 5,636,310 6,556,024 7,452,578 8,124,571 Gross domestic product at mark et prices.......... 113,539 125,756 142,316 158,576 166,315 Gross national income at mark et prices............ 112,303 123,980 140,795 157,046 164,494 Pe r ca pita , KS h C on sta n t price s GDP at mark et prices, KSh Million.................. 3,646,858 3,842,032 4,061,901 4,300,302 4,510,391 P er capita........................................................ 87,261 89,430 91,989 94,789 96,800 - A nnual percentage change............................. 3.0 2.5 2.9 3.0 2.1 * P rov isional + Rev ised 32 Chapter 2: Economic Performance Table 2.14: National Disposable Income and Saving, 2013-2017 Current Prices - KSh Million 2013 2014 2015 + 2016 + 2017* G ross n a tion a l disposa bl e in com e ..................... 4,958,324 5,636,310 6,556,024 7,452,578 8,124,571 Consumption of f ix ed capital................................... 561,868 730,422 815,724 861,559 995,876 Ne t n a tion a l disposa bl e in com e ......................... 4,396,455 4,905,889 5,740,300 6,591,019 7,128,694 Final consumption ex penditure................................ 4,511,328 5,081,322 5,840,366 6,645,583 7,329,456 6,162,336 Priv ate ................................................................ 3,787,901 4,272,830 4,907,347 5,637,043 Non-Prof it Institutions Serv ing Householuds........ 43,552 43,709 47,726 52,191 61,877 General gov ernment............................................. 679,876 764,783 885,293 956,349 1,105,243 S a vin g, n e t............................................................ -114,873 -175,434 -100,065 -54,564 -200,762 Sav ing, net............................................................... -114,873 -175,434 -100,065 -54,564 -200,762 Capital transf ers f rom abroad, net............................ 13,644 24,204 25,219 20,878 19,046 Tota l ....................................................................... -101,229 -151,230 -74,846 -33,686 -181,716 Fin a n cin g of ca pita l form a tion Gross f ix ed capital f ormation................................... 976,086 1,236,107 1,358,366 1,237,818 1,461,256 Consumption of f ix ed capital................................... -561,868 -730,422 -815,724 -861,559 -995,876 Changes in inv entories............................................. -22,059 -24,203 -9,406 6,288 32,286 Net lending (+) / Net borrowing(-)........................... -493,388 -632,712 -608,083 -416,233 -679,382 Tota l ....................................................................... -101,229 -151,230 -74,846 -33,686 -181,716 * Prov isional 33 Economic Survey 2018 Table 2.15 Gross Domestic Product by Activity Current prices – KSh million Year 2013 2014 2015 2016 2017 2013 2014 2015+ 2016+ 2017* Quar- Agriculture Mining Manufac- Electrici Constru Wholesal ter ty and c-tion e and and turing water retail quarrying supply trade 1,254,760 40,742 506,612 94,343 213,565 380,646 1,483,077 44,936 537,999 97,292 262,090 431,985 1,897,347 54,584 588,896 136,172 307,563 473,395 2,311,862 59,130 653,839 181,983 360,806 524,303 2,442,371 58,459 648,397 196,697 452,439 588,540 1 365,691 11,201 128,498 23,797 52,695 84,341 2 337,137 8,747 120,997 24,606 53,364 94,698 3 280,422 11,541 127,584 22,987 55,686 106,978 4 271,511 9,252 129,533 22,953 51,820 94,628 1 436,992 12,620 137,265 19,600 56,848 101,617 2 385,837 9,945 134,877 23,663 67,642 106,012 3 350,835 10,462 133,898 28,545 67,304 117,757 4 309,413 11,908 131,959 25,484 70,297 106,599 1 534,251 15,604 148,868 26,572 69,183 110,838 2 518,388 12,537 149,262 31,521 75,824 116,716 3 454,375 14,275 149,826 37,739 77,348 130,084 4 390,332 12,167 140,940 40,340 85,208 115,757 1 577,774 14,529 161,606 37,184 78,403 116,736 2 701,637 13,905 172,116 51,447 90,615 124,101 3 613,867 13,993 169,047 47,428 94,549 147,957 4 418,584 16,702 151,070 45,925 97,238 135,509 1 665,443 15,104 165,016 43,492 96,481 132,948 2 744,884 13,737 170,440 56,228 113,232 143,157 3 628,474 14,841 164,344 53,152 114,906 167,613 4 403,570 14,778 148,597 43,826 127,819 144,822 + Revised * Provisional 34 Accomm Transpo Informati Financial odation rt and on and & & Food storage communi insurance services cation 58,037 378,525 68,478 313,120 49,151 462,457 65,592 366,764 49,356 510,488 91,200 423,956 51,565 561,757 103,807 505,331 60,824 599,438 109,388 577,824 17,298 81,872 17,938 67,686 12,896 90,388 15,253 79,135 15,299 96,674 14,877 79,994 12,544 109,592 20,410 86,305 14,694 96,188 16,681 86,427 10,466 114,294 14,934 92,478 11,529 122,293 15,286 85,762 12,463 129,683 18,691 102,097 13,485 115,942 20,172 96,870 10,604 122,489 19,429 102,063 12,404 131,738 21,572 104,330 12,862 140,319 30,027 120,692 12,567 112,130 25,341 113,724 10,568 142,533 22,908 122,895 13,743 150,568 23,566 125,528 14,687 156,526 31,992 143,184 15,431 121,809 27,383 146,766 12,364 153,464 24,368 132,470 16,095 155,027 24,689 151,903 16,935 169,137 32,948 146,684 Chapter 2: Economic Performance Table 2.15: Gross Domestic Product by Activity (Cont’d) Current prices – KSh million FISIM Profession Real Educati Health Other All indust. Taxes on GDP at GDP, Year Quar- Public ter admiservices al, admin estate on at basic products market seasonally nistration and prices prices adjusted support services 2013 208,647 105,661 375,588 251,958 75,157 62,206 -124,136 4,263,911 481,179 4,745,090 2014 243,526 113,059 417,829 279,543 91,969 70,086 -134,588 4,882,769 519,878 5,402,647 2015 267,645 119,662 474,318 308,128 108,023 78,155 -163,306 5,725,580 558,605 6,284,185 2016 299,005 128,759 532,121 308,135 119,561 84,361 -200,667 6,585,658 608,489 7,194,147 2017 330,899 137,245 575,347 319,445 126,311 91,314 -228,918 7,086,020 663,406 7,749,426 1 51,716 24,352 90,941 64,702 17,158 14,810 -28,042 1,086,656 111,189 1,197,844 1,139,995 2 54,629 25,276 92,477 61,941 18,642 15,088 -31,652 1,073,623 119,263 1,192,885 1,175,187 2013 3 51,475 27,084 94,832 62,337 18,736 15,760 -31,209 1,051,057 130,947 1,182,005 1,203,734 4 50,827 28,949 97,339 62,978 20,621 16,549 -33,234 1,052,575 119,781 1,172,356 1,236,981 1 59,526 25,433 100,053 73,210 19,926 16,711 -31,803 1,241,987 120,003 1,361,990 1,301,203 2 64,979 26,922 103,610 69,185 23,211 17,056 -34,101 1,231,010 132,308 1,363,319 1,330,466 2014 3 56,852 29,301 106,168 67,468 23,397 17,547 -31,145 1,213,259 138,105 1,351,363 1,361,689 4 62,169 31,404 107,998 69,681 25,435 18,772 -37,540 1,196,513 129,462 1,325,976 1,419,898 1 61,683 28,113 112,056 82,563 23,440 18,846 -34,843 1,443,642 127,014 1,570,656 1,514,901 2 73,267 28,819 116,345 77,718 27,581 19,136 -40,989 1,460,712 140,750 1,601,461 1,542,708 + 2015 3 63,165 30,578 120,970 75,114 27,553 19,963 -38,017 1,433,017 147,973 1,580,991 1,575,647 4 69,530 32,151 124,947 72,733 29,449 20,211 -49,457 1,388,209 142,868 1,531,077 1,662,375 1 66,894 30,119 123,770 84,690 25,958 20,471 -45,019 1,556,875 136,367 1,693,242 1,653,028 2 81,395 31,436 133,444 78,466 30,817 20,586 -50,732 1,778,138 150,612 1,928,749 1,833,652 2016+ 3 72,148 32,630 135,903 74,695 31,093 21,532 -49,648 1,718,600 164,502 1,883,102 1,856,008 4 78,568 34,574 139,004 70,285 31,693 21,772 -55,268 1,532,046 157,008 1,689,054 1,859,769 1 71,561 31,713 141,524 82,025 28,374 22,579 -56,150 1,751,498 157,273 1,908,772 1,882,397 2 85,747 34,048 142,942 80,606 32,548 22,436 -48,315 1,914,354 160,721 2,075,075 1,948,951 * 2017 3 82,706 34,341 143,829 79,280 32,175 23,185 -61,944 1,824,615 179,536 2,004,152 1,961,260 4 90,885 37,143 147,052 77,534 33,215 23,115 -62,508 1,595,552 165,875 1,761,427 1,962,885 + Revised * Provisional 35 Economic Survey 2018 Table 2.16 Gross Domestic Product by Activity Year Quar- Agriculture ter 2013 2014 2015 2016 2017 2013 2014 2015+ 2016+ 2017* 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 818,989 854,753 900,421 942,761 957,926 247,605 225,683 174,456 171,245 258,061 235,675 186,756 174,261 278,211 246,081 194,154 181,974 290,385 264,760 203,320 184,296 293,880 267,693 211,044 185,309 Mining and quarrying 32,405 37,235 41,809 45,770 48,573 9,243 6,752 8,754 7,656 10,328 8,559 8,875 9,473 11,240 9,728 10,521 10,320 11,988 10,755 11,549 11,479 12,861 11,362 12,214 12,136 Manufac- Electricity Construc- Wholesa & water tion le and turing retail supply trade 164,220 275,291 403,128 86,961 92,287 185,696 294,357 413,281 211,314 311,746 100,153 428,153 232,111 322,468 439,665 108,499 252,017 340,812 440,478 114,564 63,479 39,810 102,483 21,106 69,125 22,112 40,543 98,321 76,603 21,694 42,883 100,552 22,048 40,985 66,084 101,772 69,357 42,844 107,565 21,913 47,230 72,442 23,137 105,381 80,704 101,099 23,347 46,631 71,853 23,891 48,991 99,237 48,368 73,194 110,684 24,065 75,913 52,970 108,579 25,884 25,483 54,538 86,328 105,798 103,091 24,722 55,438 76,311 52,802 75,735 26,604 112,038 77,533 113,533 28,926 56,778 109,553 27,179 59,879 89,564 79,636 104,540 25,789 62,651 57,155 79,399 113,394 28,226 30,667 62,178 81,729 113,376 109,562 28,392 63,222 95,130 104,146 27,279 69,461 84,553 + Revised * Provisional 36 Constant 2009 Prices –KSh Million Accommod Transport Information Financial ation & and storage and & Food communicat insurance Services ion 212,185 241,112 121,890 52,441 139,623 229,819 43,657 254,358 251,442 274,755 149,969 43,086 268,198 48,803 296,145 164,530 276,506 317,791 182,595 55,986 51,666 53,589 29,516 16,318 52,662 10,857 58,508 26,194 26,880 53,531 61,356 13,504 54,326 39,300 11,762 67,659 55,497 33,400 55,414 13,255 56,443 61,810 28,658 8,222 10,060 66,670 31,939 58,071 45,626 59,891 12,120 70,381 60,965 60,080 36,374 11,878 31,030 61,331 8,075 67,350 64,909 10,146 73,542 33,838 12,987 73,782 48,726 64,238 66,309 12,781 65,376 40,227 33,782 66,534 9,168 71,981 36,820 69,280 11,509 77,576 53,701 66,075 15,344 81,212 71,540 45,264 69,838 14,901 10,595 77,733 37,441 68,849 70,216 13,294 81,619 40,743 17,196 86,900 59,147 67,604 Chapter 2: Economic Performance Table 2.16: Gross Domestic Product by Activity (Cont’d) Constant 2009 Prices –KSh Million Professional, Real Education Health Other FISIM All indust. Taxes on GDP at GDP, Year Quar- Public admin and estate at basic products market ter admiservices seasonally prices prices nistration support adjusted services 2013 141,678 87,312 294,747 249,001 63,579 47,891 -86,932 3,205,897 440,924 3,646,821 2014 149,556 90,073 311,148 268,359 68,728 49,905 -96,763 3,386,075 456,111 3,842,186 2015 157,834 92,301 333,537 281,542 72,745 51,827 -109,826 3,592,808 469,093 4,061,901 2016 165,400 96,880 362,724 296,667 76,203 53,964 -112,162 3,808,627 491,676 4,300,302 2017 174,112 100,786 384,955 314,637 80,745 56,657 -105,734 3,993,407 516,984 4,510,391 1 36,175 20,342 72,476 61,552 14,849 11,652 -21,267 830,593 103,755 934,348 899,066 2 35,711 20,966 73,220 61,948 16,249 11,739 -21,350 809,239 108,351 917,590 908,178 2013 3 36,636 22,390 74,057 62,680 15,954 12,065 -21,892 782,102 120,259 902,361 918,941 4 33,156 23,615 74,994 62,821 16,528 12,434 -22,423 783,963 108,560 892,522 926,918 1 37,954 20,488 76,009 67,065 15,529 12,270 -22,980 873,970 108,947 982,917 940,126 2 40,292 21,459 77,290 67,292 17,535 12,284 -23,650 860,057 112,704 972,761 958,687 2014 3 34,222 23,288 78,813 67,179 17,355 12,417 -24,702 822,725 121,362 944,087 968,312 4 37,088 24,839 79,036 66,823 18,310 12,934 -25,431 829,324 113,098 942,421 980,207 1 37,435 21,928 80,827 69,978 16,329 12,735 -25,982 928,309 110,959 1,039,268 996,445 2 43,972 22,325 82,645 70,408 18,610 12,754 -26,696 910,959 115,715 1,026,674 1,008,599 + 2015 3 37,235 23,450 84,294 70,508 18,429 13,167 -27,829 878,509 122,957 1,001,467 1,025,663 4 39,193 24,598 85,772 70,648 19,376 13,171 -29,319 875,031 119,462 994,493 1,040,733 1 39,469 22,735 88,429 74,295 17,003 13,247 -28,529 980,894 114,043 1,094,937 1,055,019 2 46,702 23,682 89,856 74,397 19,573 13,236 -28,284 972,915 118,570 1,091,485 1,069,985 + 2016 3 38,916 24,527 91,398 74,543 19,507 13,729 -27,954 930,895 127,818 1,058,713 1,080,074 4 40,314 25,935 93,040 73,433 20,120 13,752 -27,395 923,923 131,245 1,055,168 1,092,878 1 41,214 23,522 94,758 78,812 17,798 14,119 -28,160 1,028,521 119,925 1,148,446 1,108,675 2 49,167 25,074 96,032 78,687 20,880 13,930 -26,254 1,019,141 125,987 1,145,128 1,121,461 2017* 3 40,896 25,163 96,873 78,594 20,705 14,352 -26,206 975,812 132,933 1,108,744 1,130,515 4 42,835 27,026 97,292 78,544 21,361 14,257 -25,114 969,933 138,140 1,108,073 1,144,779 + Revised * Provisional 37 Economic Survey 2018 Table 2.17: Growth rate of Gross Domestic Product by Activity Constant 2009 Prices – Per cent Year 2013 2014 2015 2016 2017 Quar- Agriculture Mining Manufac- Electricity Construc- Wholesale Accommoda Transport Information Financial & ter and turing and water tion and retail tion & and storage and insurance quarrying supply trade restaurant communicat ion 2013 2014 2015 2016+ 2017* 5.4 4.4 5.3 4.7 1.6 5.3 6.8 5.8 3.6 4.2 4.4 7.1 1.8 7.8 4.4 4.0 4.4 4.4 7.6 4.7 1.3 1.2 1.1 3.8 0.5 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 -4.2 14.9 12.3 9.5 6.1 16.9 -20.1 0.4 -12.6 11.7 26.8 1.4 23.7 8.8 13.7 18.5 8.9 6.6 10.6 9.8 11.2 7.3 5.6 5.8 5.7 5.6 2.5 3.6 2.7 0.2 9.6 7.5 5.3 0.4 5.0 7.2 0.5 -2.5 2.9 3.0 4.6 3.9 1.2 4.6 3.5 1.4 1.2 -0.1 0.0 -0.4 6.6 6.1 8.5 8.3 5.6 5.6 10.4 7.0 3.7 3.8 4.6 7.6 8.4 9.8 11.9 9.1 3.5 10.6 11.8 6.7 4.3 6.1 6.0 4.5 5.8 6.1 13.1 13.8 9.8 8.6 9.4 9.8 9.3 -2.9 7.6 16.5 8.7 19.5 12.9 12.2 17.0 13.2 9.2 7.2 9.8 13.0 8.2 9.5 5.6 10.9 8.4 6.9 5.9 3.4 5.7 15.7 11.3 5.7 2.5 9.3 4.8 5.4 8.7 5.5 4.8 7.0 6.2 3.5 2.1 3.7 4.4 4.8 5.4 6.2 6.2 -4.6 -16.7 -1.3 13.3 14.7 -19.6 1.2 12.4 -1.3 -18.8 -24.3 -25.5 3.0 -10.4 -1.8 0.8 7.2 7.6 13.5 13.4 18.1 16.6 15.6 15.5 12.1 1.3 5.5 8.0 7.8 7.3 -8.7 1.1 2.8 9.7 3.6 5.6 8.7 4.0 8.3 9.0 10.3 4.8 8.8 6.9 5.5 10.1 9.4 8.0 5.2 7.0 12.5 14.5 7.4 9.7 11.0 15.0 11.6 12.6 11.3 13.2 9.4 18.8 16.1 8.9 8.3 5.9 6.8 10.6 8.9 8.8 10.2 12.5 10.8 10.7 10.1 8.2 8.3 9.4 6.7 3.1 10.7 10.0 7.1 5.2 7.3 7.2 8.5 10.2 10.0 8.7 11.8 7.3 8.8 8.5 6.7 2.9 5.3 3.5 1.4 2.3 + Revised * Provisional Table 2.17: Growth rate of Gross Domestic Product by Activity (Cont’d) Year 2013 2014 2015 2016 2017 2013 2014 2015+ 2016+ 2017* Quar- Public ter administration 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2.8 5.6 5.5 4.8 5.3 3.6 3.8 7.1 -3.4 4.9 12.8 -6.6 11.9 -1.4 9.1 8.8 5.7 5.4 6.2 4.5 2.9 4.4 5.3 5.1 6.3 Constant 2009 prices – Per cent Professional, Real Education Health Other FISIM All Taxes on GDP at GDP, admin and estate services indust. products market seasonally support at basic prices adjusted services prices 3.6 4.1 6.3 7.7 4.6 5.2 5.4 9.5 5.9 3.2 5.6 7.8 8.1 4.2 11.3 5.6 3.4 5.4 2.5 7.2 4.9 5.8 3.9 13.5 6.1 2.8 5.7 5.0 8.8 5.4 4.8 4.1 2.1 6.0 4.8 5.9 4.0 6.1 6.1 6.0 5.0 -5.7 4.9 5.1 4.9 7.9 3.8 6.6 -1.9 3.2 9.9 5.5 11.3 6.1 1.5 6.2 3.9 8.1 9.7 4.9 6.4 6.8 13.6 7.5 1.0 1.4 4.2 5.4 8.5 4.0 2.4 5.9 10.0 6.4 1.2 0.0 4.6 5.3 15.0 6.1 2.6 3.5 3.4 3.5 0.9 0.7 4.9 9.0 4.6 5.3 8.1 5.2 5.0 5.2 1.4 2.4 5.6 8.6 7.9 4.6 10.8 6.3 4.0 6.0 2.0 4.0 6.4 7.2 8.8 2.9 12.8 5.2 0.9 4.6 1.0 5.2 5.4 6.4 10.8 4.0 13.4 5.8 4.2 5.6 1.2 7.0 6.3 4.3 5.2 3.8 13.1 6.2 1.8 5.7 1.7 4.0 6.9 4.6 6.1 3.8 12.9 5.9 2.7 5.5 1.2 0.7 7.0 5.0 6.2 6.0 12.7 6.8 1.3 6.1 1.7 -1.0 8.5 5.7 5.8 1.8 15.3 5.5 5.6 5.5 1.5 3.7 9.4 6.2 4.1 4.0 9.8 5.7 2.8 5.4 1.4 6.1 8.7 5.7 5.2 3.8 5.9 6.8 2.5 6.3 1.4 4.6 8.4 5.7 5.9 4.3 0.4 6.0 4.0 5.7 0.9 5.4 8.5 3.9 3.8 4.4 -6.6 5.6 9.9 6.1 1.2 3.5 7.2 6.1 4.7 6.6 -1.3 4.9 5.2 4.9 1.4 5.9 6.9 5.8 6.7 5.2 -7.2 4.8 6.3 4.9 1.2 2.6 6.0 5.4 6.1 4.5 -6.3 4.8 4.0 4.7 0.8 4.2 4.6 7.0 6.2 3.7 -8.3 5.0 5.3 5.0 1.3 + Revised * Provisional 38 Chapter 3: Employment, Earnings and Consumer Prices Chapter 03 Employment, Earnings and Consumer Prices Overview T his chapter presents analysis of the labour market over a five year period. During this period, the Government adopted strategies to create employment opportunities which include implementation of programmes for the youth, women and the persons with disabilities. These programmes include reservation of thirty per cent of all Government procurement opportunities for women, youth and persons with disabilities, devolution of some services and functions to counties coupled with increased resource allocation to the devolved units. This increased economic activities thereby impacting positively on employment creation. 3.2. Majority of the sectors recorded improved performance in employment in 2017. In total, there were 16.9 million jobs in 2017. The nominal annual average earnings in the modern sector per person increased from KSh 645,035.2 in 2016 to KSh 684,097.0 in 2017. Inflation as measured by Consumer Price Index increased from 6.3 per cent recorded in 2016 to 8.0 per cent in 2017. However, annual real average earnings per person decreased from KSh 379,968.9 to KSh 369,004.3 over the same period. Employment 3.3. As indicated in Table 3.1, the number of persons engaged, excluding those engaged in rural small scale agriculture and pastoralist activities, rose by 5.6 per cent from 16.0 million in 2016 to 16.9 million in 2017. The number of new jobs created in the modern sector were 110.0 thousand in 2017 compared to 84.8 thousand jobs created in 2016. The new jobs included the extra personnel engaged in the public sector to serve in the Independent Electoral and Boundaries Commission (IEBC) and recruitment in the essential services which include health, education and security services. The informal sector which constituted 83.4 per cent of the total employment, created 787.8 thousand new jobs in 2017 as shown in Figure 3.1. The total number of self-employed and unpaid family workers within the modern sector was estimated to have increased from 132.5 thousand in 2016 to 139.4 thousand in 2017. The new jobs from the self-employed category could be attributed to business start ups by women and youth due to the ease in accessing low cost credit from government programmes such as the Uwezo Fund. Table 3.1: Recorded Employment1, 2013 - 2017 2013 Modern Establishments Wage Employees .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..2,283.1 .. .. .. Self-employed and unpaid family workers .. .. .. .. .. .. 83.8 .. .. Sub -Total 2,366.9 2014 2015 2016 '000 2017* 2,370.2 103.0 2,473.2 2,478.0 123.2 2,601.2 2,553.5 132.5 2,686.0 2,656.6 139.4 2,796.0 Informal Sector2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11,150.1 .. .. .. .. 11,846.0 12,562.4 13,309.7 14,097.5 TOTAL .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..13,517.0 .. .. .. .. .. ..14,319.2 15,163.6 15,995.7 16,893.5 * Provisional 1 Refers to employment stock as at 30th June and excludes small scale farming and pastoralist activities. 2 Estimated 39 Economic Survey 2018 Figure 3.1: Number of New Jobs Created in Formal and Informal Sectors, 2013 – 2017 900.0 800.0 700.0 695.9 747.2 716.5 787.8 621.6 Number of new Jobs('000) 600.0 500.0 400.0 300.0 200.0 134.2 100.0 0.0 2013 106.3 2014 Formal Sector 128.0 84.8 2015 2016 110.0 2017 Informal Sector Formal Sector 3.4. Analysis of wage employment in the modern sector by industry and sector from 2013 to Employment 2017 is presented in Table 3.2. Overall wage employment in the modern sector increased by 4.0 per cent in 2017, which was higher than the 3.0 per cent growth registered in 2016. 3.5. Private sector: The wage employment in the private sector increased by 2.7 per cent to 1.9 million persons in 2017. However, the contribution of employment by the sector to formal sector employment declined slightly from 71.2 per cent in 2016 to 70.3 per cent in 2017. The private sector created 49.2 thousand new jobs compared to 57.6 thousand jobs created in 2016. During the period under review, employment in the Education sector grew by 7.7 per cent in 2017, and created 15.2 thousand new jobs. 3.6. Agriculture, forestry and fishing; Manufacturing and; Wholesale and retail trade and repair of motor vehicles and motor cycles industries contributed the highest wage employment with a share of 15.5, 14.8 and 13.4 per cent of the total private sector employment, respectively. Wholesale and retail trade; repair of motor vehicles and motorcycles sector registered 10.8 thousand new jobs. However, wage employment in the Agriculture, forestry and Fishing declined by 1.6 per cent. Similarly, wage employment in the Financial and insurance activities; and Mining and quarrying Service activities declined by 2.3 per cent and 1.4 per cent, respectively in the review period. 3.7. Public sector: Total employment in the public sector increased from 736.3 thousand persons in 2016 to 790.2 thousand persons in 2017, an increase of 7.3 per cent. This was an improvement compared to the 2.5 per cent increase realized in 2016. Public administration and defence; and Education were some of the activities that generated significant wage employment within the Public Sector with 49.1 thousand and 11.9 thousand jobs created in 2017. Human health and social work activities sector also registered 4.9 thousand new job opportunities over the same period. 40 Chapter 3: Employment, Earnings and Consumer Prices Table 3.2: Wage Employment by Industry and Sector, 2013 – 2017 '000 2013 2014 2015 2016 2017* Percentage change PRIVATE SECTOR: Agriculture, forestry and fishing .. ………………………………………………………… 299.9 290.6 294.0 294.5 289.8 -1.6 13.8 14.6 14.4 -1.4 Manufacturing…………………………………………………………………………… 253.4 261.3 269.0 274.3 276.9 0.9 Electricity, gas, steam and air conditioning supply…………………………………………………… 1.1 0.9 0.9 1.0 1.0 0.0 Water supply; sewerage, waste management and remediation activities……………………………… 1.4 1.4 1.4 1.6 1.7 6.3 111.6 125.4 140.2 Construction…………………………………………………………………………………… 155.0 159.4 2.8 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… 210.9 218.9 230.7 238.5 249.3 4.5 64.8 67.8 68.9 1.6 72.1 71.7 74.7 Accommodation and food service activities……………………………………………………… 75.9 78.2 3.0 Information and communication ……………………………………………………………… 90.6 97.3 103.8 108.7 115.2 6.0 56.3 58.1 62.7 Financial and insurance activities…………………………………………………………… 65.0 63.5 -2.3 Real estate activities……………………………………………………………………………… 3.8 3.9 4.0 4.1 4.2 2.4 62.6 64.8 67.6 4.3 5.2 5.4 5.8 7.4 Public administration and defence; compulsory social security…………………………… - - - - Education……………………………………………………………………………… 142.5 166.8 189.1 196.9 212.1 7.7 Human health and social work activities………………………………………………… 80.1 85.2 91.3 95.7 102.2 6.8 Arts, entertainment and recreation……………………………………………………… 4.3 4.3 4.5 4.6 4.8 4.3 29.2 30.5 31.7 33.2 Other service activities……………………………………………………………………………………… 34.7 4.5 115.4 0.9 Mining and quarrying………………………………………………………………… 8.7 12.2 Transportation and storage………………………………………………………………… 58.8 62.1 Professional, scientific and technical activities……………………………………… 59.4 60.7 Administrative and support service activities…………………………………… 4.8 Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use …………… 109.8 4.9 112.1 114.1 Activities of extraterritorial organizations and bodies………………………………………… 1.1 1.1 114.4 - 1.1 1.2 1.3 8.3 1,759.6 1,817.2 1,866.4 2.7 42.9 42.2 42.3 0.2 0.6 0.6 0.6 0.0 26.5 26.5 26.4 -0.4 Electricity, gas, steam and air conditioning supply…………………………………………………… 13.5 14.4 16.0 16.3 17.9 9.8 8.1 9.0 10.1 Water supply; sewerage, waste management and remediation activities……………………………… 11.1 12.8 15.3 Construction…………………………………………………………………………………… 18.1 7.7 7.9 8.0 8.5 6.3 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… 1.3 1.3 1.3 1.3 1.5 15.4 TOTAL PRIVATE SECTOR .. .. .. .. 1,599.8 1,669.4 PUBLIC SECTOR: Agriculture, forestry and fishing .. ………………………………………………………… 42.6 42.7 Mining and quarrying………………………………………………………………… 0.7 0.6 Manufacturing…………………………………………………………………………… 26.0 26.1 Transportation and storage………………………………………………………………… 17.2 17.6 17.8 18.0 19.0 5.6 Accommodation and food service activities……………………………………………………… 1.4 1.4 1.4 1.5 1.6 6.7 Information and communication ……………………………………………………………… 1.8 1.8 1.9 1.9 1.9 0.0 Financial and insurance activities…………………………………………………………… 9.0 9.4 10.6 10.8 11.3 4.6 Real estate activities……………………………………………………………………………… - - - Professional, scientific and technical activities……………………………………… 5.8 5.9 5.9 6.2 Administrative and support service activities…………………………………… - - 5.9 5.1 - - - 222.0 231.3 262.4 13.4 Education…………………………………………………………………………………………………………… 280.8 302.4 318.3 326.7 338.6 3.6 Human health and social work activities………………………………………………… 32.2 31.1 32.7 31.9 36.8 15.4 Arts, entertainment and recreation……………………………………………………… 2.4 2.4 2.5 2.4 2.3 -4.2 Public administration and defence; compulsory social security…………………………… 222.4 227.0 - Other service activities……………………………………………………………………………………… - - - Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use …………… - - - - - Activities of extraterritorial organizations and bodies………………………………………… TOTAL PUBLIC SECTOR .. .. .. .. .. .. .. . TOTAL WAGE EMPLOYMENT - - - - 683.3 700.8 718.4 736.3 790.2 7.3 2,283.1 2,370.2 2,478.0 2,553.5 2,656.6 4.0 * Provisional. 41 - Economic Survey 2018 3.8. Wage employment in the Private Sector recorded a decelerated growth of 2.7 per cent in 2017 compared to a 3.3 per cent growth in 2016 as shown in Figure 3.2. Similarly, the number of new jobs created within self employment recorded a decelerated growth of 5.2 per cent from 7.5 per cent growth the previous year. Figure 3.2: Percentage Changes in Wage Employment in the Formal Sector, 2013 – 2017 25.0 22.9 Percentage change 20.0 19.6 15.0 10.0 9.0 7.1 5.0 3.2 7.5 5.4 4.4 2.6 2.5 3.3 2.5 7.3 5.2 2.7 0.0 2013 2014 2015 Self-Employed And Unpaid Family Workers 2016 Private Sector 2017 Public Sector 3.9. Table 3.3 presents wage employment in the public sector by type of employer from 2013 to 2017. Overall, employment in the public sector increased by 7.3 per cent in 2017 compared to a 2.5 per cent rise in 2016. Employment in parastatal bodies registered the highest rise of 16.5 per cent to 110.1 thousand persons in the review period. This was attributed to the extra personnel engaged by IEBC for the 2017 General Elections. Employment in the County governments continued to rise and reached 132.6 thousand persons in 2017. This increase was attributed to hiring of more personnel following the continued implementation of devolved functions such as Agricultural services, provision of healthcare and pre-primary education services. Teachers Service Commission (TSC), the largest employer in the public sector, registered a decelerated growth of 1.7 per cent in 2017 compared to an increase of 2.4 per cent in 2016. Employment in the Ministries, extra-budgetary institutions, and Corporations controlled by Government increased by 10.0 per cent and 3.4 per cent, respectively, in 2017. This increase was mainly due to recruitment in the essential services which include health, education and security services. 42 Chapter 3: Employment, Earnings and Consumer Prices Table 3.3 Wage Employment in the Public Sector, 2013 – 2017 2013 2014 2015 2016 2017* '000 Annual Percentage Change Ministries and other exra-budgetary institutions1 .. ..179.0 .. .. .. ..180.9 .. .. .. ..177.7 .. .. .. ..179.7 .. .. .. ..197.6 .. .. .. .. ..10.0 .. .. .. .. .. Teachers Service Commission .. .. .. .. .. .. .. .. .. 272.5 .. .. .. .. 281.7 .. .. .. .. 290.7 .. .. .. .. 297.8 .. .. .. .. 302.9 2 Parastatal Bodies .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..92.5 .. .. .. .. 93.5 .. .. .. .. 94.2 .. .. .. ..94.5 1.7 110.1 16.5 Corporations controlled by the Government3 .. .. .. ..44.5 .. .. .. ..45.0 .. .. .. ..45.3 .. .. .. ..45.4 .. .. .. ..47.0 .. 3.5 County governments .. .. .. .. .. .. .. .. .. .. .. .. .. 94.7 .. .. .. .. 99.6 .. .. .. ..110.5 .. .. .. TOTAL .. .. .. . 683.3 700.8 718.4 118.9 132.6 11.5 736.3 790.2 7.3 * Provisional. 1 Includes employees of Judiciary and Parliament. 2 Refers to Government wholly-owned corporations. 3 Refers to institutions where the Government has over 50 per cent shares but does not wholly own them. 3.10. Table 3.4 presents wage employment by industry and sex for 2016 to 2017. The number of females in wage employment increased by 10.4 per cent to 970.8 thousands females and accounted for 36.5 per cent of the total wage employment. Majority of the female were employed in Education; Agriculture, forestry and fishing and, Public administration and defense; compulsory social security sectors contributing 27.1, 12.6 and 9.0 per cent of the total female employment, respectively. The number of males in the wage employment increased from 1,674.5 thousand to 1,685.8 thousand over the same period. The total number of casual employees was 647.4 thousand, with a proportional of 24.4 per cent to the total wage employment. Generally, female participation has shown an increasing trend across most sectors which could partly be attributed to the government’s affirmative action on employment in public institutions. 43 Economic Survey 2018 Table 3.4: Wage Employment by Industry and Sex, 2016 and 2017 `000 Male INDUSTRY 2016 Female Total 2017* 2016 2017* Agriculture, forestry and fishing .. ………………………………………………………… 225.1 210.1 111.6 122.0 336.7 Mining and quarrying………………………………………………………………… 12.7 12.5 2.5 2.5 15.2 15.0 Manufacturing…………………………………………………………………………… 252.1 241.3 48.7 62.0 300.8 303.3 Electricity, gas, steam and air conditioning supply…………………………………………………… 12.8 13.8 4.5 5.1 17.3 18.9 Water supply; sewerage, waste management and remediation activities……………………………… 9.9 10.9 2.8 3.6 12.7 14.5 Construction…………………………………………………………………………………… 114.9 115.3 48.1 52.6 163.0 167.9 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… 185.6 183.0 54.2 67.8 239.8 250.8 Transportation and storage………………………………………………………………… 65.0 65.4 20.8 22.5 85.8 87.9 Accommodation and food service activities……………………………………………………… 54.6 55.1 22.8 24.7 77.4 79.8 Information and communication ……………………………………………………………… 72.9 75.4 37.7 41.7 110.6 117.1 Financial and insurance activities…………………………………………………………… 47.6 46.0 28.2 28.8 75.8 74.8 Real estate activities……………………………………………………………………………… 3.1 3.2 1.0 1.0 4.1 4.2 21.4 70.7 73.8 Professional, scientific and technical activities……………………………………… 51.4 Administrative and support service activities…………………………………… 4.9 52.4 19.3 2016 2017* 332.1 5.2 0.5 0.6 5.4 5.8 Public administration and defence; compulsory social security…………………………… 148.3 175.3 83.0 87.1 231.3 262.4 Education……………………………………………………………………………… 275.1 288.1 248.5 262.7 523.6 550.8 Human health and social work activities………………………………………………… 61.3 58.8 66.3 80.2 127.6 139.0 Arts, entertainment and recreation……………………………………………………… 4.8 4.9 2.2 2.2 7.0 7.1 22.7 10.3 12.0 33.2 34.7 45.5 65.8 69.9 114.4 115.4 0.3 0.4 1.2 1.3 879.1 970.8 2,553.6 2,656.6 Other service activities……………………………………………………….…… 22.9 Activities of households as employers; undifferentiated goods- and services48.6 producing activities of households for own use…………… Activities of extraterritorial organizations and bodies………………………………………… 0.9 0.9 TOTAL .. .. .. Of which: Regular .. .. .. Casual .. .. .. 1,674.5 1,685.8 1,268.3 1,249.0 702.7 760.2 1,971.0 2,009.2 406.2 436.8 176.4 210.6 582.6 647.4 Wage Earnings 3.11. Total wage payments by industry in the modern sector from 2013 to 2017 is presented in the Modern in Table 3.5. The wage payments relate to the basic salary and other allowances which are Sector paid regularly to employees. Overall, nominal wage earnings rose by 10.3 per cent to KSh 1,817.3 billion in 2017 compared to an increase of 9.1 per cent in 2016. The private sector wage earnings went up by 10.9 per cent from KSh 1,143.6 billion in 2016, while wage earnings in public sector rose to 9.1 per cent from 503.5 billion in 2016 to 549.1 billion in 2017. The contribution of the public sector to the total wage earnings decreased marginally from 30.6 per cent in 2016 to 30.2 per cent in 2017. 44 Chapter 3: Employment, Earnings and Consumer Prices Table 3.5: Wage Payments1 by Industry and Sector, 2013 – 2017 KSh Million 2014 2015 2016 2017* Agriculture, forestry and fishing .. ………………………………………………………… 65,576.7 67,038.5 74,769.2 80,709.7 87,915.3 Mining and quarrying………………………………………………………………… 2,587.9 4,196.5 5,412.9 6,081.7 6,806.4 Manufacturing…………………………………………………………………………… 81,131.6 91,390.3 105,013.8 114,079.8 126,924.4 Electricity, gas, steam and air conditioning supply…………………………………………………… 1,256.2 1,151.2 1,255.4 1,401.0 1,655.3 246.0 289.4 343.3 410.3 68,809.2 87,022.4 97,846.9 104,174.3 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… 103,613.3 113,726.5 130,920.7 147,356.5 169,098.0 Transportation and storage………………………………………………………………… 57,024.4 65,458.0 76,319.4 81,540.8 89,873.1 Accommodation and food service activities……………………………………………………… 25,185.1 25,933.9 28,955.8 30,100.1 32,538.5 Information and communication ……………………………………………………………… 65,920.7 72,710.6 83,234.7 95,049.4 107,706.2 82,242.8 Financial and insurance activities…………………………………………………………… 87,451.4 101,893.5 109,094.0 111,658.3 926.7 1,040.8 1,088.1 1,187.6 Professional, scientific and technical activities………………………………………48,444.5 52,317.9 58,897.7 64,547.4 73,087.9 5,712.1 6,056.6 7,057.5 7,585.5 8,540.2 - - - 2013 PRIVATE SECTOR: Water supply; sewerage, waste management and remediation activities……………………………… 196.6 Construction…………………………………………………………………………………… 52,893.3 870.2 Real estate activities……………………………………………………………………………… Administrative and support service activities…………………………………… Public administration and defence; compulsory social security……………………………- - 116,483.5 Education……………………………………………………………………………… 138,368.5 167,352.3 176,528.2 197,516.5 49,486.4 Human health and social work activities………………………………………………… 55,701.6 65,323.5 73,170.6 84,684.5 2,194.7 Arts, entertainment and recreation……………………………………………………… 2,290.4 2,575.8 2,786.4 3,092.6 16,903.3 Other service activities…………………………………………………………….…… Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for own use …………… 19,464.2 19,993.6 23,446.0 25,982.3 30,332.7 20,853.2 23,219.8 24,687.6 26,952.8 2,804.2 Activities of extraterritorial organizations and bodies………………………………………… 2,973.8 3,309.8 3,642.2 4,036.4 799,991.7 897,594.4 1,047,310.4 1,143,621.3 1,268,191.2 Agriculture, forestry and fishing .. ………………………………………………………… 12,996.1 13,877.2 16,926.7 17,572.5 17,828.1 Mining and quarrying…………………………………………………………………197.3 197.9 237.2 250.0 261.4 Manufacturing…………………………………………………………………………… 17,173.5 18,414.8 22,331.9 23,339.5 23,317.8 Electricity, gas, steam and air conditioning supply…………………………………………………… 16,007.3 14,540.6 21,088.0 22,019.9 23,667.4 Water supply; sewerage, waste management and remediation activities……………………………… 4,172.5 5,248.6 6,375.2 7,165.5 8,063.5 Construction…………………………………………………………………………………… 9,190.8 4,182.7 5,257.6 5,669.8 6,171.2 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… 1,780.2 2,039.3 1,436.1 1,589.6 1,827.1 Transportation and storage………………………………………………………………… 19,640.2 21,476.4 26,645.6 28,854.2 30,960.8 Accommodation and food service activities……………………………………………………… 1,177.6 1,413.7 1,844.0 2,133.8 2,463.2 Information and communication ……………………………………………………………… 1,031.0 1,127.9 1,363.7 1,424.0 1,457.1 13,394.3 18,097.5 18,822.0 19,175.2 TOTAL PRIVATE SECTOR .. .. .. .. …………………………… PUBLIC SECTOR: Financial and insurance activities…………………………………………………………… 12,282.3 Real estate activities……………………………………………………………………………… Professional, scientific and technical activities……………………………………… 2,873.3 Administrative and support service activities…………………………………… - - - - - 3,077.3 3,732.9 3,886.0 4,147.3 - - - - 143,861.7 Public administration and defence; compulsory social security…………………………… 160,274.4 116,046.6 127,507.2 146,658.8 106,638.2 Education……………………………………………………………………………… 123,557.2 182,027.0 202,778.1 215,686.7 26,009.9 Human health and social work activities………………………………………………… 27,631.9 36,506.1 38,639.1 45,679.9 1,379.0 Arts, entertainment and recreation……………………………………………………… 1,522.8 1,827.2 1,850.0 1,783.3 - - - - - - - - - - - - - Other service activities………………………………………………………… Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for own use…………… Activities of extraterritorial organizations and bodies………………………………………… - 374,944.2 413,443.7 461,743.3 503,501.1 549,148.8 TOTAL PUBLIC AND PRIVATE .. …………………………………………1,174,935.9 1,311,038.1 1,509,053.7 1,647,122.4 1,817,340.1 TOTAL PUBLIC SECTOR .. .. .. .. .. .. .. ………………….. * Provisional 1 Annualised June wages. 45 Economic Survey 2018 3.12. Annual wage payments in the public sector by type of employer are presented in Table 3.6. Wage earnings in the County governments recorded the highest increase of 15.0 per cent in earnings in the public sector; rising from KSh 96.4 billion in 2016 to KSh 110.9 billion in 2017. Similarly, total wage payments for the Ministries and other extra-budgetary institutions increased by 13.2 per cent from KSh 95.4 billion in 2016 to KSh 108.0 billion in 2017. Wage payments by TSC rose by 4.1 per cent to KSh 180.9 billion and accounted for 32.9 per cent of the total wage payments by the public sector. Table 3.6: Total Wage Payments in the Public Sector, 2013 - 2017 KSh Million 2013 2014 2015 2016 2017* Ministries and other extra-budgetary institutions1 .. ..79,009.4 .. .. .. .. ..84,981.0 .. .. .. .. .. 90,275.2 .. .. .. .. .. ..95,402.6 .. .. .. .. ..107,989.0 .. .. .. .. .. Teachers Service Commission .. .. .. .. .. .. .. .. ..130,427.4 .. .. .. .. .. 145,407.0 .. .. .. .. .. ..160,720.4 .. .. .. .. .. 173,721.1 Parastatal Bodies2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..66,217.9 .. .. .. .. .. 74,013.5 .. .. .. .. .. ..78,704.7 .. 3 84,350.7 180,901.3 91,521.0 Majority Control by the Government .. .. .. .. .. .. 42,115.6 .. .. .. .. .. ..47,073.7 .. .. .. .. ..50,057.4 .. .. .. .. 53,648.3 57,846.6 County governments .. .. .. .. .. .. .. .. .. .. .. .. .. 57,174.0 .. .. .. .. .. 61,968.3 .. .. .. .. .. ..81,985.6 96,378.3 110,890.9 TOTAL PUBLIC SECTOR .. .. .. .. 374,944.3 413,443.7 461,743.3 503,501.1 549,148.8 * Provisional. 1 Includes employees of Judiciary, Parliament, constitutional and Independent offices 2 Refers to Government wholly-owned corporations. 3 Refers to institutions where the Government has over 50 per cent shares but does not wholly own them. 3.13. Annual average wage earnings per employee for the period 2013 to 2017 are presented in Table 3.7. Overall, annual average earnings increased by 6.1 per cent to KSh 684,097.0 in 2017 compared to the 5.9 per cent increase in 2016, translating to KSh 57,008.1 per month. The average earnings in the private sector increased by 8.0 per cent compared to 1.6 per cent in the public sector in the review period. Average earnings for workers in the private sector that recorded the highest increases were Mining and quarrying; Water supply; sewerage, waste management and remediation activities; and Electricity, gas, steam and air conditioning supply at 12.9 and 11.9 per cent , respectively, in 2017. 3.14. Table 3.8 presents percentage changes in wage employment and average earnings for the period 2012/2017 and 2016/2017. During the five year period, total wage employment rose by 23.2 per cent with wage employment in the private sector rising by 25.0 per cent, while that of the public sector went up by 19.3 per cent. In the private sector the highest increase in wage employment was registered in education at 98.4 per cent. This was followed by mining and quarrying; and construction activities with growths of 73.5 and 61.5 per cent, respectively. Average earnings in the economy have risen by 54.3 per cent over the five year period with public sector earnings rising by 43.3 per cent compared to 59.8 per cent for the private sector. In the public sector, employees in the County Government recorded a large increase of 152.4 per cent. 3.15. Table 3.9 presents the real average earnings per employee by sector adjusted for inflation. Overall, real average earnings declined by 2.9 per cent in 2017, compared an increase of 0.1 per cent recorded in 2016. This could be attributed to increase in inflation rates over the period. In the public sector, real average earnings declined by 6.9 per cent and fell by 1.1 per cent in the private sector. 46 Chapter 3: Employment, Earnings and Consumer Prices Table 3.7: Average Annual Wage Earnings per Employee1, 2013 – 2017 KSh 2013 2014 2015 2016 2017* PRIVATE SECTOR: Agriculture, forestry and fishing ................................................................ 218,637.7 230,717.7 254,274.7 274,049.3 303,399.8 Mining and quarrying................................................................................ 297,797.2 343,893.9 392,039.5 417,498.1 471,487.3 Manufacturing........................................................................................... 320,187.1 349,733.7 390,406.1 415,959.4 458,321.7 Electricity, gas, steam and air conditioning supply..................................... 1,125,666.0 1,247,238.0 1,399,604.0 1,463,985.8 1,613,312.0 235,386.0 Water supply; sewerage, waste management and remediation activities..... 142,540.0 176,322.0 201,136.0 210,354.0 Construction............................................................................................. 473,758.8 548,910.1 620,879.3 631,213.1 653,355.8 Wholesale and retail trade; repair of motor vehicles and motorcycles........... 491,409.9 519,429.6 567,591.9 617,753.6 678,269.3 1,304,985.7 Transportation and storage........................................................................ 969,506.0 1,053,344.1 1,177,969.1 1,203,429.8 Accommodation and food service activities................................................ 349,259.4 361,473.9 387,737.5 396,554.6 415,943.8 Information and communication .............................................................. 727,472.8 747,113.9 802,169.8 874,105.5 934,730.5 1,759,562.7 Financial and insurance activities............................................................... 1,461,808.8 1,504,281.5 1,624,448.0 1,677,517.7 Real estate activities.................................................................................... 228,154.6 238,649.9 260,652.5 265,659.8 281,424.2 Professional, scientific and technical activities............................................ 816,100.0 861,867.2 940,331.7 996,639.9 1,081,166.6 Administrative and support service activities............................................... 1,181,397.3 1,236,542.6 1,363,245.9 1,393,880.0 1,484,227.4 Public administration and defence; compulsory social security................... Education................................................................................................... 817,809.1 830,085.0 885,101.5 896,491.7 931,440.0 Human health and social work activities..................................................... 617,576.4 654,012.7 715,536.5 764,256.0 828,851.1 Arts, entertainment and recreation............................................................ 513,856.2 530,300.4 575,076.5 601,034.2 641,752.4 Other service activities................................................................................ Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for own use ……………………………….. 577,929.2 655,765.5 739,900.7 783,612.9 874,366.6 177,267.8 186,011.9 203,473.4 215,885.3 233,630.7 Activities of extraterritorial organizations and bodies.................................. 2,613,378.0 2,683,940.0 2,883,096.0 2,992,746.0 3,170,786.8 TOTAL PRIVATE SECTOR 500,065.8 537,670.4 595,211.6 629,323.6 679,489.2 Agriculture, forestry and fishing ................................................................ 347,891.6 367,655.6 394,286.8 416,034.3 421,089.2 Mining and quarrying................................................................................ 323,896.0 346,104.0 373,538.0 397,378.9 406,454.8 PUBLIC SECTOR: Manufacturing........................................................................................... 752,483.8 797,183.7 843,573.8 881,901.1 881,745.9 Electricity, gas, steam and air conditioning supply..................................... 1,231,708.0 1,261,782.0 1,315,696.0 1,346,867.1 1,321,608.8 Water supply; sewerage, waste management and remediation activities..... 590,152.0 658,438.0 629,840.0 647,288.6 629,031.0 Construction............................................................................................. 577,088.0 617,720.0 668,740.0 712,739.5 729,019.5 Wholesale and retail trade; repair of motor vehicles and motorcycles........... 910,344.7 1,018,154.2 1,082,241.8 1,196,994.4 1,260,092.0 Transportation and storage........................................................................ 1,298,010.1 1,382,681.1 1,500,059.7 1,600,876.0 1,627,290.2 1,587,145.3 Accommodation and food service activities................................................ 991,838.0 1,126,668.0 1,293,140.0 1,462,490.4 Information and communication .............................................................. 645,169.5 693,358.3 728,877.8 763,519.9 764,465.6 Financial and insurance activities............................................................... 1,552,072.0 1,604,205.8 1,709,888.3 1,749,415.9 1,703,860.6 Real estate activities.................................................................................... Professional, scientific and technical activities............................................ Administrative and support service activities............................................... Public administration and defence; compulsory social security................... 560,096.4 461,100.8 590,358.0 481,382.8 628,540.2 522,748.8 659,876.6 551,311.1 666,556.1 558,864.2 Education................................................................................................... 475,306.4 524,732.9 571,890.4 620,606.3 636,954.3 Human health and social work activities..................................................... 915,027.2 1,005,817.6 1,116,394.3 1,212,243.5 1,241,942.9 Arts, entertainment and recreation............................................................ 665,322.0 715,992.0 745,206.0 774,061.8 771,983.7 Other service activities................................................................................ Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for own use ……………………………….. Activities of extraterritorial organizations and bodies.................................. - - - - - - - - - - - - - - - TOTAL PUBLIC SECTOR 548,731.4 589,984.8 642,743.1 683,861.0 694,981.1 TOTAL PRIVATE AND PUBLIC SECTOR 514,630.7 553,137.7 608,991.7 645,035.2 684,097.0 Ministries and other extra-budgetary institutions .. .. .. .. .. .. .. .. .. .. .. ..441,289.9 .. .. .. .. .. .. .. ..469,692.7 .. .. .. .. .. .. .. 508,131.9 .. 530,799.0 546,428.5 Teachers Service Commission .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 478,625.5 .. .. .. .. .. .. 516,195.1 552,843.3 583,393.3 597,282.3 Parastatal Bodies2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..715,826.2 .. .. 791,393.2 835,786.7 893,064.1 831,516.4 1,046,153.8 1,104,838.2 1,180,554.0 1,231,081.7 621,978.5 741,669.5 810,875.9 836,224.3 589,984.8 642,743.1 683,861.0 694,981.1 MEMORANDUM ITEMS IN PUBLIC SECTOR: Majority Control by the Government3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 946,260.7 .. .. .. .. .. County governments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..603,521.2 .. TOTAL PUBLIC SECTOR .. .. .. . .. 548,731.4 * Provisional. 1 Annualised June earnings 2 Refers to Government wholly-owned corporations. 3 Refers to institutions where the Government has over 50 per cent shareholding but does not fully own them. 47 Economic Survey 2018 Table 3.8: Percentage changes in Wage Employment and Average Earnings1, 2017/2012 and 2017/2016 EMPLOYMENT 2017/2012* AVERAGE EARNINGS 2017/2016* 2017/2012* 2017/2016* PRIVATE SECTOR: Agriculture, forestry and fishing ..................................................................................................... -1.9 -1.6 66.6 Mining and quarrying..................................................................................................................... 73.5 -1.4 91.7 10.7 12.9 Manufacturing................................................................................................................................ 12.8 0.9 69.4 10.2 Electricity, gas, steam and air conditioning supply.......................................................................... -9.1 0.0 68.5 10.2 Water supply; sewerage, waste management and remediation activities........................................... 30.8 6.3 86.8 11.9 Construction................................................................................................................................... 61.5 2.8 58.9 3.5 Wholesale and retail trade; repair of motor vehicles and motorcycles................................................ 26.5 4.5 59.7 9.8 Transportation and storage............................................................................................................. 18.6 1.6 58.9 8.4 Accommodation and food service activities...................................................................................... 15.7 3.0 30.8 4.9 Information and communication ................................................................................................... 37.3 6.0 45.8 6.9 Financial and insurance activities.................................................................................................... 23.8 -2.3 39.9 4.9 Real estate activities......................................................................................................................... 13.5 2.4 43.1 5.9 Professional, scientific and technical activities.................................................................................. 18.8 4.3 57.7 8.5 6.5 Administrative and support service activities.................................................................................... 28.9 7.4 51.3 Public administration and defence; compulsory social security........................................................ - - - - Education........................................................................................................................................ 98.4 7.7 33.7 3.9 Human health and social work activities.......................................................................................... 38.5 6.8 52.4 8.5 Arts, entertainment and recreation................................................................................................. 20.0 4.3 46.8 6.8 Other service activities..................................................................................................................... Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use ……………………………….. 23.0 4.5 77.8 11.6 8.6 0.9 52.8 8.2 Activities of extraterritorial organizations and bodies....................................................................... 30.0 8.3 37.9 5.9 TOTAL PRIVATE SECTOR 25.0 2.7 59.8 8.0 PUBLIC SECTOR: Agriculture, forestry and fishing ..................................................................................................... 0.2 0.2 54.6 1.2 Mining and quarrying..................................................................................................................... -14.3 0.0 62.6 2.3 Manufacturing................................................................................................................................ 3.1 -0.4 46.0 0.0 Electricity, gas, steam and air conditioning supply.......................................................................... 35.6 9.8 33.1 -1.9 Water supply; sewerage, waste management and remediation activities........................................... 77.8 15.3 43.6 -2.8 Construction................................................................................................................................... -51.1 6.3 62.4 2.3 Wholesale and retail trade; repair of motor vehicles and motorcycles................................................ 66.7 15.4 7.4 5.3 1.6 Transportation and storage............................................................................................................. 11.1 5.6 60.7 Accommodation and food service activities...................................................................................... 23.1 6.7 118.1 8.5 Information and communication ................................................................................................... 5.6 0.0 48.1 0.1 Financial and insurance activities.................................................................................................... 9.7 4.6 37.2 -2.6 Real estate activities......................................................................................................................... - - - - Professional, scientific and technical activities.................................................................................. 6.9 5.1 48.9 1.0 Administrative and support service activities.................................................................................... - - - - Public administration and defence; compulsory social security........................................................ 26.5 13.4 -1.6 1.4 2.6 Education........................................................................................................................................ 21.8 3.6 87.0 Human health and social work activities.......................................................................................... 19.1 15.4 76.9 2.4 Arts, entertainment and recreation................................................................................................. -4.2 -4.2 43.3 -0.3 Other service activities..................................................................................................................... Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use ……………………………….. - - - - - - - - Activities of extraterritorial organizations and bodies....................................................................... - - - - TOTAL PUBLIC SECTOR 19.3 7.3 43.3 1.6 TOTAL PRIVATE AND PUBLIC SECTOR 23.2 4.0 54.3 6.1 Ministries and other extra-budgetary institutions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. -11.2 .. .. .. .. .. .. .. 10.0 37.1 2.9 Teachers Service Commission .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 13.2 1.7 38.7 2.4 Parastatal Bodies2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 21.4 16.5 17.8 -6.9 7.7 3.4 32.0 4.3 251.9 11.6 152.4 3.1 19.3 7.3 43.3 1.6 MEMORANDUM ITEMS IN PUBLIC SECTOR: Majority Control by the Government3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. County governments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. TOTAL PUBLIC SECTOR .. .. .. . .. * Provisional. 1 Annualised June earnings 2 Refers to Government wholly-owned corporations. 3 Refers to institutions where the Government has over 50 per cent shareholding but does not fully own them. 48 Chapter 3: Employment, Earnings and Consumer Prices Table 3.9: Estimated Real Average Wage Earnings per Employee1, 2013–2017. KSh 2013 2014 2015 PRIVATE SECTOR: 158,466.1 153,904.1 156,628.5 Agriculture, forestry and fishing .. ………………………………………………………… Mining and quarrying………………………………………………………………… 213,337.1 229,400.2 244,322.3 243,304.3 Manufacturing…………………………………………………………………………… 233,295.8 229,376.8 Electricity, gas, steam and air conditioning supply…………………………………………………… 806,408.8 831,991.2 872,244.8 Water supply; sewerage, waste management and remediation activities……………………………… 102,113.3 117,618.6 125,349.6 Construction…………………………………………………………………………………… 339,393.1 366,159.8 386,937.1 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… 352,038.0 346,494.3 353,728.0 694,538.3 702,651.0 734,120.1 Transportation and storage………………………………………………………………… Accommodation and food service activities……………………………………………………… 250,203.7 241,127.3 241,641.2 Information and communication ……………………………………………………………… 521,149.7 498,375.0 499,918.9 1,012,369.4 Financial and insurance activities…………………………………………………………… 1,047,216.0 1,003,456.4 162,440.8 159,195.5 Real estate activities……………………………………………………………………………… 163,446.2 574,923.1 586,022.5 Professional, scientific and technical activities……………………………………… 584,640.7 849,586.1 Administrative and support service activities……………………………………846,333.8 824,856.6 Public administration and defence; compulsory social security…………………………… Education……………………………………………………………………………… 585,865.1 553,722.2 551,602.6 Human health and social work activities………………………………………………… 442,421.7 436,270.2 445,928.3 353,745.8 358,392.4 Arts, entertainment and recreation……………………………………………………… 368,118.2 414,019.1 437,439.5 461,112.2 Other service activities………………………………………………………… Activities of households as employers; undifferentiated goods- and services126,991.8 124,082.4 126,806.3 producing activities of households for own use …………. 1,790,367.6 1,796,769.3 Activities of extraterritorial organizations and bodies………………………………………… 1,872,181.4 370,940.8 358,662.1 TOTAL PRIVATE SECTOR .. .. .. .. 358,239.0 PUBLIC SECTOR: Agriculture, forestry and fishing .. ………………………………………………………… 245,722.8 249,223.9 245,250.9 Mining and quarrying………………………………………………………………… 232,033.8 232,792.0 230,874.5 Manufacturing…………………………………………………………………………… 539,067.1 531,774.9 525,722.2 Electricity, gas, steam and air conditioning supply…………………………………………………… 882,375.5 841,693.0 819,952.6 Water supply; sewerage, waste management and remediation activities……………………………… 422,775.3 439,222.2 392,521.5 412,060.6 416,764.3 Construction…………………………………………………………………………………… 413,416.4 652,156.1 679,177.0 674,462.0 Wholesale and retail trade; repair of motor vehicles and motorcycles……………………… Transportation and storage………………………………………………………………… 929,873.3 922,340.8 934,849.6 805,895.6 751,562.9 Accommodation and food service activities……………………………………………………… 710,536.6 462,188.9 462,516.4 454,242.7 Information and communication ……………………………………………………………… 1,065,616.5 1,111,879.1 1,070,112.6 Financial and insurance activities…………………………………………………………… Real estate activities……………………………………………………………………………… 391,711.5 401,243.9 393,808.3 Professional, scientific and technical activities……………………………………… Administrative and support service activities…………………………………… Public administration and defence; compulsory social security…………………………… 330,325.1 321,114.5 325,781.4 Education……………………………………………………………………………… 340,501.8 350,032.0 356,406.8 Human health and social work activities………………………………………………… 655,510.6 670,947.6 695,746.2 464,418.5 Arts, entertainment and recreation……………………………………………………… 476,625.8 477,614.6 Other service activities………………………………………………………… Activities of households as employers; undifferentiated goods- and servicesproducing activities of households for own use … Activities of extraterritorial organizations and bodies………………………………………… 400,562.8 TOTAL PUBLIC SECTOR .. .. .. .. .. .. .. . 393,102.2 393,559.3 TOTAL PRIVATE AND PUBLIC SECTOR .. .. . 368,673.0 368,979.9 379,528.7 MEMORANDUM ITEMS IN PUBLIC SECTOR: Ministries and other extra-budgetary institutions .. .. .. .. .. .. .. .. .. .. .. ..316,132.9 .. .. .. .. .. .. ..313,316.5 .. .. .. .. .. .. ..316,672.0 .. .. Teachers Service Commission .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 342,879.5 .. .. .. .. .. .. 344,336.7 344,536.5 Parastatal Bodies2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..512,806.2 .. .. Majority Control by the Government3 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 677,885.7 .. .. .. .. .. County governments .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 432,352.7 .. 393,102.2 TOTAL PUBLIC SECTOR .. .. .. . .. Refers to Government wholly-owned corporations. 3 Refers to institutions where the Government has over 50 per cent shareholding but does not fully own them. 161,433.4 245,934.3 245,027.9 862,385.6 123,912.6 371,826.7 363,898.2 708,900.7 233,597.2 514,906.7 988,170.2 156,491.4 587,087.6 821,088.6 528,093.6 450,197.9 354,049.4 461,600.5 163,654.9 254,321.9 247,220.3 870,226.0 126,968.0 352,422.4 365,860.8 703,913.8 224,361.5 504,196.8 949,114.2 151,801.2 583,184.9 800,597.3 502,421.9 447,085.1 346,163.4 471,636.3 127,170.9 1,762,927.7 370,713.7 126,021.2 1,710,333.3 366,518.8 245,072.1 234,082.7 519,498.8 793,394.8 381,296.3 419,851.3 705,109.8 943,023.1 861,504.7 449,764.3 1,030,523.0 388,711.4 324,759.1 365,578.6 714,092.6 455,974.2 - 227,137.0 219,243.1 475,616.7 712,880.3 339,301.5 393,235.6 679,697.9 877,765.9 856,111.6 412,355.4 919,068.2 359,542.6 301,453.2 343,575.3 669,908.3 416,410.6 - - - 402,839.9 379,968.9 374,875.2 369,004.3 312,676.1 343,657.7 294,745.4 322,176.1 520,869.2 526,074.5 448,522.8 697,854.6 414,901.3 393,559.3 688,544.3 462,214.6 400,562.8 695,425.3 477,660.2 402,839.9 664,049.7 451,062.2 374,875.2 Average earnings adjusted for the rise in consumer prices(Base year 2009). Annualised June earnings deflated by June CPI 2 2017* 527,912.2 * Provisional. 1 2016 49 Economic Survey 2018 3.16. Overall, wage employment grew by 4.0 per cent in 2017 compared to 3.1 per cent in 2016. The ‘year on year’ inflation in June 2017 was 9.2 per cent, up from 5.8 per cent the previous year. Real average earnings declined by 2.9 per cent compared to an increase of 0.1 per cent in 2016 mainly due to the increase in inflation. Table 3.10: Changes in Wage Employment, Prices and Real Earnings, 2013 - 2017 Per cent 2013 2014 2015 2016 2017* Wage employment ………………..……………………………..………………..….. 6.0 3.8 4.5 3.1 4.0 Average earnings at current prices ………………………………..……………….... 16.1 7.5 10.1 5.9 6.1 1 Consumer prices (Inflation rates) ……………………………..………………..….. 4.9 7.4 7.0 5.8 9.2 Real average earnings………………..…………………………..………………..…….. 10.7 0.1 2.9 0.1 -2.9 * Provisional 1 June inflation Informal sector 3.17. The informal sector is characterized by small scale activities, easy entry and exit due to employment fewer regulations, skills gained from vocational intuitions, less capital investment, limited job security and also self-employment. This sector however excludes illegal activities such as drug trafficking and others. Over the years, it has expanded into activities of manufacturing and information, communication and technology. 3.18. Table 3.11, gives a breakdown of employment in the informal sector by broad economic activities over the past five years. During the review period, the informal sector employment grew by 6.0 per cent from 13.3 million persons in 2016 to 14.1 million persons in 2017 with rural areas accounting for almost two thirds of the total jobs. Table 3.11: Number of Persons Engaged in the Informal Sector by Activity1, 2013 – 2017 000 Activity 2013 2014 2015 2016 2017* Manufacturing .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2,233.7 .. .. .. .. .. .. ..2,364.9 .. .. .. .. .. .. ..2,545.3 .. .. .. .. .. 2,710.2 2,841.3 Construction .. .. .. .. ... .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. ..292.2 .. .. .. .. .. .. 307.3 .. .. .. .. .. .. ..320.6 .. .. .. .. .. .. ..337.1 .. .. .. .. .. .. 363.0 Wholesale and Retail Trade, Hotels and Restaurants. .. .. .. 6,693.4 .. .. .. .. .. .. ..7,120.4 .. .. .. .. .. .. ..7,510.9 .. .. .. .. .. .. 7,946.7 .. .. .. .. .. .. .. 8,445.5 .. .. .. .. .. .. .. .. .. Transport and Communications2 .. .. .. .. .. . .. .. .. .. .. .. .. ..345.3 .. .. .. .. .. .. ..369.5 .. .. .. .. .. ..392.6 .. .. .. .. .. .. ..417.2 .. .. .. .. .. .. 439.7 .. .. .. .. .. Community, Social and Personal Services .. ... .. .. .. .. .. .. 1,084.2 .. .. .. .. .. .. ..1,152.1 .. .. .. .. .. .. 1,219.5 .. .. .. .. .. .. .. 1,293.4 .. .. .. .. .. .. ..1,370.2 .. .. .. .. .. .. Others .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..501.3 .. .. .. .. .. .. ..531.8 .. .. .. .. .. .. 573.5 .. .. 605.1 637.8 TOTAL .. .. .. .. .. .. .. .. 11,150.1 11,846.0 12,562.4 13,309.7 14,097.5 Urban .. .. .. .. .. .. .. .. .. .. 3,973.7 4,208.1 4,458.0 4,709.9 4,999.8 Rural .. .. .. .. .. .. .. .. .. .. 7,176.4 7,637.9 8,104.4 8,599.8 9,097.7 * Provisional Minimum Wages and Collective Bargaining Agreements 1 Estimated 2 Includes mainly support services to transport activity 3.19. On Labour Day 2017, the Government announced new statutory minimum wage rates that reflected a 18.0 per cent increase in the wages specified in both the regulation of wages Agriculture Order, 2017 and the Regulation of Wages (General) Order, 2017. 3.20. Table 3.12 presents gazzetted monthly basic wages for the agricultural industry. On average, the monthly basic minimum wages for the agriculture industry increased from KSh 7,284 in 2016 to KSh 8,595 in 2017. Unskilled employees, the lowest paid category of workers, had their monthly wages raised from KSh 5,437 in 2016 to KSh 6,416 in 2017. Monthly wages for the highest paid category of workers which include farm foremen and farm clerks was increased from KSh 9,808 in 2016 to KSh 11,574 in 2017. 50 Chapter 3: Employment, Earnings and Consumer Prices Table 3.12: Gazetted Monthly Basic Minimum Wages for Agricultural Industry, 2013 – 2017 KSh Type of Employee 2013 2014 2015 2016 2017 Unskilled employees…………………………………………………………………… 4,854 4,854 5,437 5,437 6,416 Stockman, Herdsman and Watchman…………………………………………………………………… 5,606 5,606 6,279 6,279 7,409 Skilled And Semi-Skilled Employees: 5,542 5,542 6,207 6,207 7,324 House servant or cook…………………………………………………………………… Farm foreman…………………………………………………………………… 8,757 8,757 9,808 9,808 11,574 Farm clerk…………………………………………………………………… 8,757 8,757 9,808 9,808 11,574 Section foreman…………………………………………………………………… 5,669 5,669 6,350 6,350 7,492 Farm artisan…………………………………………………………………… 5,802 5,802 6,498 6,498 7,668 Tractor driver…………………………………………………………………… 6,153 6,153 6,891 6,891 8,131 Combine harvester driver…………………………………………………………………… 6,778 6,778 7,592 7,592 8,958 Lorry driver or car driver…………………………………………………………………… 7,113 7,113 7,967 7,967 9,401 AVERAGE 6,503 6,503 7,284 7,284 8,595 Source: Ministry of Labour and Social Protection 3.21. Table 3.13 presents the gazetted monthly basic minimum wages in urban areas in 2016 and 2017. The average monthly basic minimum wages in Nairobi, Mombasa and Kisumu cities rose from KSh 17,200 in 2016 to KSh 19,831 in 2017. Average monthly basic minimum wages in all former municipalities and Town Councils of Mavoko, Ruiru and Limuru, increased from KSh 15,980 in 2016 to KSh 17,423 in 2017. Similarly, average monthly basic minimum wages in all the other towns rose from KSh 13,593 to KSh 16,039 over the same period. In all urban areas, the highest paid workers were cashiers, heavy commercial vehicles/salesman drivers and artisans grade 1 over the review period. 51 Economic Survey 2018 Table 3.13: Gazetted Monthly Basic Minimum Wages1 in Urban Areas, 2016 – 2017 KSh Nairobi , Mombasa & Kisumu Cities Occupation 2016 2017 All former Municipalities and Town Councils of Mavoko, Ruiru and Limuru 2016 2017 All other towns 2016 2017 General labourer including cleaner, sweeper, gardener, children's ayah, house servant, day watchman, messenger …………………. 10,954.70 12,926.55 10,107.10 11,926.40 5,844.20 6,896.15 Miner, stone cutter, turn boy .waiter, cook, logger, line cutter............ 11,831.20 13,960.80 10,496.90 12,386.35 6,752.50 7,967.95 Night watchman................................................................................. Machine attendant, sawmill sawyer, machine assistant, mass production machinist, shoe cutter, bakery worker, bakery assistant, tailor's assistant …………………………………………… 12,221.10 14,420.90 11,330.10 13,369.50 6,970.40 8,225.05 12,416.00 14,650.90 11,553.90 13,633.60 9,364.70 11,050.35 Machinist (made-to-measure), shoe upper preparer, chaplis maker, vehicle service worker (petrol and service stations), bakery plant hand, laundry operator, junior clerk, wheeled tractor driver (light) .. 14,173.50 16,724.75 13,259.30 15,646.00 10,840.50 12,791.70 Printing machine operator, bakery machine operator, plywood machine operator, sawmill dresser, shop assistant, machine tool operator, dough maker, table hand baker or confectioner, copy typist, driver (cars and light vans) ……………………………… 14,785.70 17,447.15 13,646.40 16,102.75 11,279.50 13,309.80 Pattern designer (draughts-man), garment and dress cutter, single hand oven man, charge-hand baker, general clerk, telephone operator, receptionist, storekeeper ……………………………… 16,872.40 19,909.45 15,425.40 18,201.95 13,152.50 15,519.95 Tailor, driver (medium sized vehicle).................................................. 18,595.20 21,942.30 17,090.50 20,166.80 15,239.10 17,982.10 Dyer, crawler tractor driver, salesman.................................................. 20,528.80 24,224.00 19,154.00 22,601.70 17,286.90 20,398.55 Saw doctor, caretaker (buildings)........................................................ 22,718.00 26,807 25 21,213.30 25,031 70 19,762.00 23,319.15 Cashier, driver (heavy commercial vehicle) salesman - driver............... 24,719.50 29,169.00 23,262.40 27,449.65 21,811.10 25,737.10 Ungraded artisan................................................................................ 14,785.70 17,447.15 13,646.40 16,102 75 11,279.50 13,309.80 Artisan Grade III................................................................................. 18,595.20 21,942.35 17,090.50 20,166.80 15,210.30 17,948.15 Artisan Grade II.................................................................................. 20,084.00 23,699.10 19,154.00 22,601 70 17,286.90 20,398.55 Artisan Grade I.................................................................................... 24,719.50 29,169.00 23,262.40 27,449 65 21,811.10 25,737.10 17,200.03 19,830.96 15,979.51 17,422.86 13,592.75 16,039.43 Average Source:Ministry of Labour and Social Protection 1 Excluding Housing Allowance 3.22. The total number of Collective Bargaining Agreements (CBA) registered in 2017 were 232 compared to 128 in 2016 as shown in Table 3.14. There was a notable increase in the number of agreements registerd in Human health and social work activities, Financial and insurance activities; and Wholesale and retail trade activities which rose by 56, 19 and 34 agreements, respectively. However, there were fewer agreements made in Manufacturing; and Transport and storage in 2017. The average monthly basic wage awarded in 2017 was KSh 66,489. This average basic wage was influenced by the CBA between the Ministry of Health, the 47 County Governments and the Kenya Medical Practioners, Pharmacists and Dentists Union. The number of unionisable employees covered by the agreements registered was 340,290 in 2017. The number of unionisable employees covered by the agreements in the Education sector were 24,628 in 2017 while those in Public administration and defence; compulsory social security 207,584 during the same period. The average monthly allowance offered was KSh 15,130. 52 Chapter 3: Employment, Earnings and Consumer Prices Table 3.14: Collective Bargaining Agreements Registered by the Employment and Labour Relations Court, 2016 – 2017 No. of Agreements Activity 2016 2017* Agriculture, Forestry And Fishing........................................................................ 18 5 Mining And Quarrying........................................................................................ 1 Manufacturing..................................................................................................... 151 145 Electricity, Gas, Steam And Air Conditioning Supply.......................................... 4 Water Supply; Sewerage, Waste Management And Remediation Activities.......... Construction........................................................................................................ No. of Unionisable Employees Covered by the Agreements Average Monthly Basic Wage (KSh) Average Monthly Allowances1 Offered (KSh) 2016 3,211 402 24,618 - 2017* 5,131 44,279 10,262 2016 13,133 36,691 22,539 - 2017* 15,963 27,367 78,982 2016 10,900 12,500 10,708 - 2017* 6,947 10,448 41,683 9 5 12 2 1,080 1,286 912 30 34,906 15,656 37,445 16,212 20,169 8,171 17,078 4,564 Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles............ 2 Transportation And Storage................................................................................. 39 Accommodation And Food Service Activities....................................................... 9 Information And Communication...................................................................... 5 Financial And Insurance Activities....................................................................... 10 Real Estate Activities............................................................................................. Professional, Scientific And Technical Activities................................................... 2 Administrative And Support Service Activities...................................................... 3 Public Administration And Defence; Compulsory Social Security....................... 1 Education............................................................................................................. 24 Human Health And Social Work Activities.......................................................... 5 Arts, Entertainment And Recreation................................................................... 9 Other Service Activities......................................................................................... 5 Activities Of Households As Employers; Undifferentiated Goods - And Services Producing Activities Of Households For Own Use Activities Of Extraterritorial Organizations And Bodies....................................... Total Average 298 36 20 13 3 29 2 5 5 1 29 61 6 7 21 12,583 318 106 20,754 519 1,249 29 297,472 449 596 2,943 7,744 4,993 1,342 256 18,445 180 652 5,448 207,584 24,628 5,179 1,731 1,348 28,041 43,186 21,546 61,799 140,876 35,889 29,703 13,035 27,934 29,745 20,912 73,053 39,223 47,655 33,166 98,420 141,052 28,808 34,278 21,220 24,021 276,436 225,745 17,701 61,379 6,050 16,773 12,237 14,885 21,223 13,600 8,824 3,500 14,959 11,130 10,757 8,192 10,821 24,365 10,336 21,629 23,480 11,200 12,889 11,367 6,450 14,433 24,706 14,464 9,619 1 386 367,636 146 340,290 38,156 38,214 66,489 12,034 11,000 15,130 1 - Includes Housing, Leave and Travel allowances Social 3.23. The National Social Security (NSSF) was established as a mandatory scheme whose Security main objective is to provide basic financial security benefits to Kenyans in both formal and informal sectors upon retirement. Table 3.15 gives the number of registered employers and employees, annual contributions from employees and annual benefits. During the year under review, the number of registered employers went up by 36.8 per cent from 98.1 thousand in 2016 to 134.2 thousand in 2017. Similarly, the number of registered employees increased from 3,864.4 thousand in 2016 to 3,905.1 thousand in 2017. The annual contribution and annual benefit rose marginally to KSh 9.5 billion and KSh 4.9 billion, respectively in 2017. Table 3.15: Registered Employers, Employees, Contributions and Benefits, 2013- 2017 Details 2013 2014 Registered Employers ‘000…………………… 92.1 93.3 Registered Employees ‘000 Male………………………………………… 2,955.0 2,975.4 Female…………………………………… 1,001.3 1,005.1 Total……………………………………… 3,956.3 3,980.5 Annual contribution (KSh million) ……………… 6,571.6 6,587.9 Annual benefits paid (KSh million) ………………. 2,844.6 2,881.3 Source: National Social Security Fund * Provisional 53 2015 96.0 2016 98.1 2017* 134.2 2,698.7 948.8 3,662.1 9,209.9 3,999.2 2,862.4 1,002.0 3,864.4 9,486.2 4,839.0 2,898.2 1,050.4 3,905.1 9,491.4 4,856.3 Economic Survey 2018 Consumer 3.24. The  Consumer Price Index  (CPI) is a measure that examines the weighted average Price Index change in prices of a basket of consumer goods and services. This section provides a five year series of consumer price indices and average retail prices for some selected consumer goods in the basket. 3.25. The annual inflation as measured by the Consumer Price Index (CPI) increased from 6.3 per cent in 2016 to 8.0 per cent in 2017. The increase in inflation was mainly due to higher food prices as a result of drought experienced during the first half of the year. The increase in the prices of petrol, kerosene, diesel and electricity led to a rise in the cost of transport and manufactured goods during the review period. Further, the uncertainties brought about by the long electioneering period caused an increase in some retail prices of food items which included capsicums, onions, tomatoes, carrots and cabbages. However, the Government subsidized the cost of maize flour in the second half of 2017, in order to cushion the public from high food prices. 3.26. Food and non-alcoholic beverages index, which has the largest share in the CPI basket, recorded the highest increase of 13.4 per cent followed by restaurants and hotels at 5.5 per cent in 2017 as presented in Table 3.16. During the same period, transport index increased by 3.9 per cent mainly due to increase in pump prices of petrol, diesel and public transport fares. Housing, water, electricity, gas and other fuels index went up by 3.1 per cent due to increases in costs of house rent, kerosene and electricity. Table 3.16: Consumer Price Indices and Inflation by Divisions, 2013 - 2017 February 2009=100 Percentage Share Annual Average Index Percentage COICOP Divisions 2013 2014 2015 2016 2017 Change Food & Non-Alcoholic Beverages………………………..…………………..………………………..………………….. 36.03 155.44 168.97 188.22 207.19 234.90 13.4 Alcoholic Beverages, Tobacco & Narcotics………………………..………………….. 2.06 141.02 148.03 153.42 173.69 179.18 3.2 Clothing & Footwear………………………..………………….………………………..…………………... 7.43 129.65 135.85 142.19 148.20 153.70 3.7 Housing, Water, Electricity, Gas and other Fuels………………………..………………….. 18.30 133.82 141.31 145.81 148.21 152.84 3.1 Furnishings, Household Equipment and Routine Household Maintenance……………………… 6.16 129.72 136.27 142.34 147.98 152.66 3.2 Health ………………………..…………………..………………………..………………….. 3.13 125.68 133.39 139.82 145.50 150.35 3.3 Transport………………………..…………………..………………………..………………….. 8.67 147.38 161.36 160.61 160.94 167.20 3.9 Communication………………………..…………………..………………………..………………….. 3.82 78.35 77.10 77.83 79.40 79.68 0.4 Recreation & Culture………………………..…………………..………………………..………………….. 2.25 127.90 140.95 145.27 151.45 153.83 1.6 Education………………………..…………………..………………………..………………….. 3.14 118.80 125.21 130.26 135.68 139.70 3.0 Restaurant & Hotels………………………..…………………..………………………..………………….. 4.49 149.90 159.82 168.08 177.34 187.01 5.5 Miscellaneous Goods & Services………………………..…………………..………………………..………………….. 4.52 127.37 133.02 139.41 145.18 150.42 3.6 8.0 Overall Index 100.00 140.11 149.74 159.60 169.68 183.23 3.27. Table 3.17 presents a breakdown of the annual average consumer price indices for classes of food and non-alcoholic beverages. Fruits and vegetables had the highest inflation rate in 2017 of 22.5 per cent and 21.1 per cent, respectively. The index for Sugar, jam, honey, chocolate and confectionery; Bread and Cereals; Milk, Cheese and Eggs increased notably by15.3, 12.3 and 10.2 per cent, respectively, during the same period. 54 Chapter 3: Employment, Earnings and Consumer Prices Table 3.17: Consumer Price Indices for Food and Non-Alcoholic Beverages, 2013 -2017 Percentage Food and non-alcoholic beverages Share 2013 2014 2015 2016 Bread and cereals ………………………………………………... 10.52 136.08 143.53 147.88 152.81 Meat ……………………………………………………………………… 5.68 152.64 164.29 174.24 178.12 Fish and Sea foods ………………………………………………… 1.32 163.26 181.65 198.31 211.43 Milk, Cheese and Eggs ………………………………………………… 4.96 158.78 169.52 181.47 181.02 Oils and fats ………………………………………………… 1.69 163.69 163.27 161.90 163.80 Fruits ………………………………………………… 2.38 176.68 197.84 233.28 287.70 Vegetables ………………………………………………… 5.68 180.46 221.60 297.19 373.90 Sugar, jam, honey, chocolate and confectionery ………………………………………………… 2.33 165.24 153.37 152.29 164.57 Food products n.e.c. ………………………………………………… 0.11 127.48 135.99 144.70 147.55 Coffee, tea and cocoa ………………………………………………… 0.38 121.20 122.03 125.10 130.20 Mineral waters, soft drinks, fruit and vegetable juices ………………………………………………… 1.00 136.26 141.04 143.97 153.92 2017 171.56 184.20 229.90 199.45 173.90 352.55 452.81 189.82 146.76 132.99 157.41 Percentage Change 12.3 3.4 8.7 10.2 6.2 22.5 21.1 15.3 -0.5 2.1 2.3 3.28. Table 3.18 presents annual average retail prices of selected consumer goods. The price of one kilogram of sugar increased by16.6 per cent from an average of KSh118.2 in 2016 to an average of KSh 137.8 in 2017. During the year under review, there was shortage of maize grain which resulted to a price increase from KSh 42.8 per kilogram in 2016 to KSh 57.7 per kilogram in 2017. However, the price of a 13 kilogram cooking gas declined by 3.7 per cent from an average of KSh 2,154.8 in 2016 to KSh 2,075.3 in 2017. Table 3.18: Average Retail Prices of Selected Consumer Goods in the Consumer Price Basket, 2013 2017 Item Unit Beef - With Bones..................... 1 Kg Offals (Matumbo)................... 1 Kg Bread,White............................. 400 Gms Maize Grain- Loose.................. 1 Kg Milk - Packeted........................ 1/2 Litre Sugar........................................ 1 Kg Wheat Flour............................. 2 kg English Potatoes...................... 1 Kg Kales (Sukuma-Wiki).............. 1 Kg Cabbages................................. 1 Kg Petrol -Super............................ 1 Litre Diesel....................................... 1 Litre Kerosene.................................. 1 Litre Electricity................................ 200 KW/h Electricity................................ 50 KW/h Gas........................................... 13 Kg 2013 342.5 203.3 47.5 42.3 48.8 120.2 137.9 52.7 41.8 49.0 113.1 105.1 83.9 3,066.3 575.8 2,688.7 55 2014 369.1 217.8 49.2 45.2 50.8 110.6 136.4 49.3 38.8 41.4 112.8 103.7 82.4 3,373.1 586.5 3,062.4 2015 392.5 236.6 48.9 43.1 52.7 109.2 129.1 63.0 38.4 42.9 94.7 81.0 58.4 3,466.9 531.1 2,506.7 2016 399.6 244.1 49.2 42.8 53.5 118.2 124.3 77.0 40.1 59.1 90.3 77.4 54.6 3,394.3 533.2 2,154.8 KSh 2017 410.3 254.1 49.5 57.7 59.6 137.8 131.3 81.1 52.8 66.5 99.3 86.0 67.0 3,727.7 597.3 2,075.3 Economic Survey 2018 3.29. Table 3.19 presents inflation in the Nairobi Lower, Middle and Upper income groups, as well as the Rest of Urban areas. Nairobi lower income group recorded the highest annual inflation of 8.6 per cent, while Nairobi middle income and the rest of urban areas recorded 6.1 per cent and 8.0 per cent, respectively, in 2017. Table 3.19: Annual Inflation, 2013 - 2017 Per cent Income Group 2013 2014 2015 2016 2017 Nairobi Lower Income Inflation...………………………..………………………..……………………… 5.9 5.8 6.9 6.8 8.6 Nairobi Middle Income Inflation…..………………………..………………………..……………………… 4.5 4.7 4.3 4.1 6.1 Nairobi Upper Income Inflation…..………………………..……………………… 3.4 6.0 2.6 4.6 3.4 Nairobi Inflation………………………..………………………..……………………… 5.5 5.6 6.1 6.1 7.9 Rest of Urban Towns Inflation…..………………………..……………………… 5.9 7.8 6.9 6.4 8.0 6.3 8.0 Overall Inflation 5.7 6.9 6.6 Note: 1: The lower income group comprises households with monthly expenditure below KSh 23, 670 in October 2005 2: The middle income group comprises households with monthly expenditure between KSh 23,671 and KSh 119,999 in October 2005 3 The upper income group comprises households with monthly expenditure above KSh 120,000 in October 2005 3.30. Table 3.20 shows that the annual average CPI for Nairobi lower income group rose from 173.03 in 2016 to 187.94 in 2017. The highest index of 192.75 was recorded in May, while the lowest of 179.88 was recorded in January 2017. Table 3.20: Consumer Price Indices, Nairobi Lower Income Group, 2013 - 2017 February 2009=100 Month 2016 2017 January .. .. .. .. .. .. .. .. .. .. .. .. .. ..138.55 ... .. .. .. .. .. .. .. 148.47 .. .. .. .. .. .. ... .. ..155.65 .. .. .. .. .. .. .. .. 167.60 .. .. .. .. 179.88 February .. .. .. .. .. .. .. .. .. .. .. .. .. 139.72 .. ... .. .. .. .. .. .. ..148.75 .. .. .. .. .. .. ... ..156.51 .. .. .. .. .. .. .. .. ..167.38 .. .. .. .. 183.80 March .. .... .. .. .. .. .. .. .. .. .. .. .. .. 141.17 .. ... .. .. .. .. .. .. ..149.36 .. .. .. .. .. .. .. ...158.81 .. .. .. .. .. .. .. .. ..169.19 .. .. .. .. .. 188.07 April .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..142.91 .. .. ... .. .. .. .. .. 150.57 .. .. .. .. .. .. .. .. ...161.85 .. .. .. .. .. .. .. ..170.86 .. .. .. .. .. .. 191.95 May .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. 142.84 .. . ... .. .. .. .. .. ..151.51 .. .. .. .. .. .. .. ... 162.09 .. .. .. .. .. .. .. .. ..171.89 .. .. .. .. .. 192.75 June .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..142.68 .. .. .. .. .. .. .. .. ..151.39 .. .. .. .. .. .. ... ..162.47 .. .. .. .. .. .. .. .. ..174.08 .. .. .. .. 189.69 July .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..142.94 .. . ... .. .. .. .. .. ..151.71 .. .. .. .. .. .. .. ...162.74 .. .. .. .. .. .. .. .. ..174.51 .. .. .. .. .. 187.45 August .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..142.82 . .. .. .. .. .. .. .. ..153.51 .. .. .. .. .. .. ... ..162.78 .. .. .. .. .. .. .. .. 174.40 .. .. .. .. .. 188.90 September .. .. .. .. .. .. .. .. .. .. . .. ..146.54 .. . ... .. .. .. .. .. 153.64 .. .. .. .. .. .. .. .. ...163.13 .. .. .. .. .. .. .. .. 174.60 .. .. .. .. .. .. 188.23 October .. .. .. .. .. .. .. .. .. .. .. .. .. ..146.18 .. .. .. .. .. .. .. .. 153.18 .. .. .. .. .. .. .. .. ..164.26 ... .. .. .. .. .. .. .. 176.05 .. .. .. .. .. .. .. 188.21 November .. .. .. .. .. .. .. .. .. .. .. ..146.29 . .. .. .. .. .. .. .. ..152.88 .. .. .. .. .. .. .. .. ...166.02 .. .. .. .. .. .. .. ..177.67 .. .. .. .. .. .. 187.64 December .. .. .. .. .. .. .. .. .. .. .. .. 146.93 .. .. .. .. .. .. .. .. ..154.08 .. .. .. .. .. .. .. .. ... 167.48 .. .. .. .. .. .. .. ..178.10 .. .. .. .. .. .. 188.73 Annual average 2013 143.30 2014 151.59 2015 161.98 56 173.03 187.94 Chapter 3: Employment, Earnings and Consumer Prices 3.31. Tables 3.21, 3.22, 3.23, 3.24 and 3.25 present five years’ series of CPI for the Nairobi Middle and Upper Income Groups, Overall Nairobi, Rest of Urban Areas and the aggregated national indices. The highest national index of 187.64 was recorded in May 2017 while the lowest index of 176.93 was recorded in January 2017. Table 3.21: Consumer Price Indices, Nairobi Middle Income Group, 2013 - 2017 February 2009=100 Month 2013 2014 2015 2016 2017 January .. .. .. .. .. .. .. .. .. .. .. .. .. 125.13 .. .. .. .. .. .. .. .. .. ..131.93 .. .. .. .. .. .. .. .. .. ..136.19 .. .. .. .. .. .. .. .. .. 144.24 .. .. .. 150.25 February .. .. .. .. .. .. .. .. .. .. .. .. ..125.79 .. .... .. .. .. .. .. .. ..131.99 .. .. .. .. .. .. .. .. ..136.25 .. .. .. .. .. .. .. .. .. ..143.39 .. .. .. 151.94 March .. .... .. .. .. .. .. .. .. .. .. .. .. ..126.89 .. ... ... .. .. .. .. .. ..132.79 .. .. .. .. .. .. .. .. ..137.09 .. .. .. .. .. .. .. .. .. ..143.78 .. .. .. .. 153.20 April .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 127.57 .. .. .. .... .. .. .. .. ..133.22 .. .. .. .. .. .. .. .. .. ..137.74 .. .. .. .. .. .. .. .. .. 143.97 .. .. .. .. .. 155.28 May .. .. .. .. .. .. .. .. .. .. .. .. ... .. ..127.08 .. . .... .. .. .. .. .. ..133.91 .. .. .. .. .. .. .. .. .. ..138.95 .. .. .. .. .. .. .. .. ..144.59 .. .. .. .. 155.81 June .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 126.80 .. .. ... .. .. .. .. .. .. ..134.48 .. .. .. .. .. .. .. .. ..140.70 .. .. .. .. .. .. .. .. .. ..145.59 .. .. .. 154.29 July .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. 127.56 .. .. . .... .. .. .. .. .. ..135.45 .. .. .. .. .. .. .. .. ..141.17 .. .. .. .. .. .. .. .. .. ..146.18 .. .. .. .. 154.19 August .. .. .. .. .. .. .. .. .. .. .. .. .. ..127.61 .. . ... .. .. .. .. .. .. 135.76 .. .. .. .. .. .. .. .. .. ..141.66 .. .. .. .. .. .. .. .. .. ..146.76 .. .. .. 155.14 September .. .. .. .. .. .. .. .. .. .. . ..131.11 .. .. . ... .. .. .. .. .. ..135.48 .. .. .. .. .. .. .. .. .. 142.04 .. .. .. .. .. .. .. .. .. ..147.19 .. .. .. .. . 155.36 October .. .. .. .. .. .. .. .. .. .. .. .. ..130.91 .. .. .. .... .. .. .. .. ..135.33 .. .. .. .. .. .. .. .. .. ..141.93 .. .. .. .. .. .. .. .. ..147.22 .. .. .. .. .. .. .. .. .. ..156.04 .. .. .. .. .. .. .. .. .. .. . November .. .. .. .. .. .. .. .. .. .. .. 130.66 .. . .. .. ... .. .. .. .. ..134.97 .. .. .. .. .. .. .. .. .. ..141.75 .. .. .. .. .. .. .. .. .. 147.61 .. .. .. .. .. 156.27 December .. .. .. .. .. .. .. .. .. .. .. ..130.88 .. .. .. ... .. .. .. .. ..135.60 .. .. .. .. .. .. .. .. .. ..145.22 .. .. .. .. .. .. .. .. ..148.37 .. .. .. .. .. 157.44 Annual average 128.16 134.24 140.06 145.74 154.60 Table 3.22: Consumer Price Indices, Nairobi Upper Income Group, 2013 - 2017 February 2009=100 Month 2013 2014 2015 2016 2017 January .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 126.64 .. .. .. .. .. .. .. .. ..134.11 .. .. .. .. .. .. .. .. ..136.86 .. .. .. .. .. .. .. .. ..144.30 .. .. .. 150.27 February .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... 126.91 .. .. .. .. .. .. .. ..134.32 .. .. .. .. .. .. .. .. ..136.66 .. .. .. .. .. .. .. .. 144.19 .. .. .. .. 150.99 March .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. ... 127.77 ... .. .. .. .. .. .. ..134.63 .. .. .. .. .. .. .. .. ..137.07 .. .. .. .. .. .. .. .. 144.21 .. .. .. .. .. 151.28 April .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..127.88 .. .... .. .. .. .. .. .. 135.10 .. .. .. .. .. .. .. .. ..137.67 .. .. .. .. .. .. .. .. ..145.61 .. .. .. .. .. 151.30 May .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .127.25 .... .. .. .. .. .. .. ..136.39 .. .. .. .. .. .. .. .. ..138.96 .. .. .. .. .. .. .. .. ..145.93 .. .. .. .. 151.51 June .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..126.93 ... .. .. .. .. .. .. .. ..136.83 .. .. .. .. .. .. .. .. ..139.25 .. .. .. .. .. .. .. .. 146.21 .. .. .. .. 150.94 July .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. ..127.09 . .... .. .. .. .. .. .. ..137.30 .. .. .. .. .. .. .. .. ..141.35 .. .. .. .. .. .. .. .. 146.94 .. .. .. .. .. 151.32 August .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .127.72 ... .. .. .. .. .. .. .. ..139.94 .. .. .. .. .. .. .. .. 143.53 .. .. .. .. .. .. .. .. .. 148.33 .. .. .. .. 152.02 September .. .. .. .. .. .. .. .. .. .. . .. .. ..132.57 . .... .. .. .. .. .. .. 139.46 .. .. .. .. .. .. .. .. .. 143.35 .. .. .. .. .. .. .. .. ..148.71 .. .. .. .. .. 151.87 October .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..132.47 .. .. ... .. .. .. .. .. 138.22 .. .. .. .. .. .. .. .. .. 143.05 .. .. .. .. .. .. .. .. ..148.68 .. .. .. .. .. .. 152.99 November .. .. .. .. .. .. .. .. .. .. .. .. . ..132.40 .. .. .. .. .. .. .. .. ..138.03 .. .. .. .. .. .. .. .. 142.70 .. .. .. .. .. .. .. .. .. 149.23 .. .. .. .. .. . 153.38 December .. .. .. .. .. .. .. .. .. .. .. .. .. ..132.51 .. .. .. .. .. .. .. .. 136.74 .. .. .. .. .. .. .. .. .. 143.34 .. .. .. .. .. .. .. .. ..149.68 .. .. .. .. .. . Annual average 129.01 136.76 140.32 57 146.84 154.61 151.87 Economic Survey 2018 Table 3.23: Consumer Price Indices, Overall Nairobi, 2013 – 2017 February 2009=100 Month 2013 2016 2017 January .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. 134.86 .. .. .. .. .. .. .. .. ..143.94 .. .. . .. .. .. .. .. ..150.24 .. .. .. .. .. .. .. ..161.09 171.62 February .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. ..135.88 .. .. .. .. .. .. .. .. 144.16 .. .. .. . .. .. .. .. ..150.87 .. .. .. .. .. .. .. .. 160.72 .. 174.88 March .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. ..137.22 .. .. .. .. .. .. .. .. 144.81 .. .. .. .. . .. .. .. ..152.75 .. .. .. .. .. .. .. .. 162.12 .. .. 178.27 April .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. ..138.64 .. .. .. .. .. .. .. ..145.80 .. .. .. .. . .. .. .. ..155.12 .. .. .. .. .. .. .. ..163.42 .. .. 181.57 May .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. . ... .. .. 138.45 .. .. .. .. .. .. .. .. ..146.69 .. .. .. . .. .. .. .. 155.63 .. .. .. .. .. .. .. .. ..164.32 .. 182.28 June .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..138.26 .. .. .. .. .. .. .. .. 146.76 .. .. .. . .. .. .. .. ..156.34 .. .. .. .. .. .. .. .. 166.15 .. 179.69 July .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. . ... .. ..138.63 .. .. .. .. .. .. .. .. 147.25 .. .. .. .. . .. .. .. ..156.72 .. .. .. .. .. .. .. .. 166.64 .. .. 178.06 August .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. ..138.58 .. .. .. .. .. .. .. ..148.72 .. .. .. . .. .. .. .. ..156.96 .. .. .. .. .. .. .. .. 166.75 .. 179.36 September .. .. .. .. .. .. .. .. .. .. . .. .. .. . ... .. ..142.29 .. .. .. .. .. .. .. ..148.72 .. .. .. .. . .. .. .. ..157.30 .. .. .. .. .. .. .. ..167.01 .. .. 178.93 October .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..141.98 .. .. .. .. .. .. .. ..148.31 .. .. .. .. .. . .. .. ..158.07 .. .. .. .. .. .. .. ..168.06 .. .. .. 179.12 November .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. 142.00 .. .. .. .. .. .. .. .. ..148.00 .. .. .. .. . .. .. .. ..159.29 .. .. .. .. .. .. .. ..169.35 .. .. 178.78 December .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 142.51 .. .. .. .. .. .. .. .. ..148.97 .. .. .. .. . .. .. .. 161.20 .. .. .. .. .. .. .. .. ..169.85 .. .. 179.89 Annual average 139.11 2014 146.84 2015 155.87 165.46 178.54 Table 3.24: Consumer Price Indices, the Rest of Urban Areas, 2013 - 2017 February 2009=100 Month 2016 2017 January .. .. .. .. .. .. .. .. .. .. .. .. .. ..136.15 .. .. .. .. .. .. .. .. .. ..146.42 .. .. .. .. .. .. .. .. .. ..155.67 .. .. .. .. .. .. .. .. .. ..168.36 .. 180.65 February .. .. .. .. .. .. .. .. .. .. .. .. .. 137.08 .. .... .. .. .. .. .. .. .. ..147.21 .. .. .. .. .. .. .. .. .. ..156.42 .. .. .. .. .. .. .. .. ..168.11 .. .. 183.55 March .. .... .. .. .. .. .. .. .. .. .. .. .. .. 138.48 .. ... ... .. .. .. .. .. .. ..147.87 .. .. .. .. .. .. .. .. .. ..158.04 .. .. .. .. .. .. .. .. ..168.58 .. .. .. 186.28 April .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..139.72 .. .. .... .. .. .. .. .. .. 149.88 .. .. .. .. .. .. .. .. .. .. 161.20 .. .. .. .. .. .. .. .. .. ..169.62 .. .. .. 189.52 May .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. 140.27 .. . .... .. .. .. .. .. .. ..151.81 .. .. .. .. .. .. .. .. .. ..163.03 .. .. .. .. .. .. .. .. .. ..170.55 .. .. 191.38 June .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..140.53 .. ... .. .. .. .. .. .. .. ..152.12 .. .. .. .. .. .. .. .. .. ..163.34 .. .. .. .. .. .. .. .. ..172.29 .. .. 189.38 July .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..140.73 .. . .... .. .. .. .. .. .. ..152.95 .. .. .. .. .. .. .. .. .. ..163.26 .. .. .. .. .. .. .. .. ..173.78 .. .. .. 187.48 August .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..141.49 . ... .. .. .. .. .. .. .. ..154.33 .. .. .. .. .. .. .. .. .. ..163.66 .. .. .. .. .. .. .. .. ..173.92 .. .. 188.48 September .. .. .. .. .. .. .. .. .. .. . .. ..143.19 .. . .. .. .. .. .. .. .. ..154.71 .. .. .. .. .. .. .. .. .. ..164.15 .. .. .. .. .. .. .. .. .. ..174.74 .. .. .. 186.98 October .. .. .. .. .. .. .. .. .. .. .. .. .. ..143.28 .. .. ... .. .. .. .. .. .. 154.45 .. .. .. .. .. .. .. .. .. .. 164.98 .. .. .. .. .. .. .. .. .. ..175.82 .. .. .. . . 184.87 November .. .. .. .. .. .. .. .. .. .. .. ..143.94 . .. .. .. .. .. ... .. .. ..154.55 .. .. .. .. .. .. .. .. .. ..165.55 .. . .. .. .. .. .. .. .. ..177.01 .. .. .. . 184.38 December .. .. .. .. .. .. .. .. .. .. .. .. 144.79 .. .. .. ... .. .. .. .. .. ..154.99 .. .. .. .. .. .. .. .. .. ..167.18 .. .. .. .. .. .. .. .. .. ..178.91 .. .. .. 185.27 Annual average 2013 140.81 2014 2015 151.77 162.21 58 172.64 186.52 Chapter 3: Employment, Earnings and Consumer Prices Table 3.25: Consumer Price Indices, Kenya, 2013 - 2017 February 2009=100 Month 2013 2014 2015 2016 January .. .. .. .. .. .. .. .. .. .. 135.62 .. .. .. .. .. .. .. .. .. 145.40 .. .. .. .. .. .. .. .. .. ..153.43 .. .. .. .. .. .. .. .. ..165.37 .. .. .. .. .. .. .. 2017 176.93 February .. .. .. .. .. .. .. .. .. ..136.59 .. .. .. .. .. .. .. .. ..145.95 .. .. .. .. .. .. .. .. ..154.14 .. .. .. .. .. .. .. .. ..165.06 .. .. .. .. .. .. .. .. 179.98 March .. .... .. .. .. .. .. .. .. .. ..137.96 .. .. .. .. ... . .. .. ..146.61 .. .. .. .. .. .. .. .. ..155.86 .. .. .. .. .. .. .. .. ..165.92 .. .. .. .. .. .. .. .. .. 182.98 April .. .. .. .. .. .. .. .. .. .. .. .. 139.28 .. .. .. .. .. .. .. .. .. ..148.20 .. .. .. .. .. .. .. .. ..158.70 .. .. .. .. .. .. .. .. ..167.07 .. .. .. .. .. .. .. .. ..186.24 May .. .. .. .. .. .. .. .. .. .. .. .. 139.52 ... .. .. .. . .. .. .. .. 149.70 .. .. .. .. .. .. .. .. .. ..159.98 .. .. .. .. .. .. .. .. ..167.99 .. .. .. .. .. .. .. .. 187.64 June .. .. .. .. .. .. .. .. .. .. .. .. 139.59 .. .. .. .. .. . .. .. .. ..149.91 .. .. .. .. .. .. .. .. ..160.46 .. .. .. .. .. .. .. .. ..169.76 .. .. .. .. .. .. .. .. 185.39 July .. .. .. .. .. .. .. ... .. .. .. .. 139.87 .. .. .. .. .. . .. .. .. ..150.60 .. .. .. .. .. .. .. .. ..160.57 .. .. .. .. .. .. .. .. ..170.84 .. .. .. .. .. .. .. .. .. 183.60 August .. .. .. .. .. .. .. .. .. .. ..140.29 .. .. .. .. . . .. .. .. ..152.02 .. .. .. .. .. .. .. .. ..160.90 .. .. .. .. .. .. .. .. ..170.97 .. .. .. .. .. .. .. .. 184.72 September .. .. .. .. .. .. .. .. ..142.82 .. . .. .. .. . .. .. .. ..152.24 .. .. .. .. .. .. .. .. ..161.33 .. .. .. .. .. .. .. .. ..171.56 .. .. .. .. .. .. .. .. ..183.66 October .. .. .. .. .. .. .. .. .. ..142.75 .. .. .. .. .. .. .. . .. ..151.92 .. .. .. .. .. .. .. .. ..162.13 .. .. .. .. .. .. .. .. ..172.62 .. .. .. .. .. .. .. .. ..182.50 .. November .. .. .. .. .. .. .. .. 143.14 .. .. .. .. . .. .. . .. .. 151.85 .. .. .. .. .. .. .. .. .. ..162.97 .. .. .. .. .. .. .. .. ..173.85 .. .. .. .. .. .. .. .. ..182.08 December .. .. .. .. .. .. .. .. ..143.85 .. .. .. .. .. .. . .. .. 152.51 .. .. .. .. .. .. .. .. .. ..164.72 .. .. .. .. .. .. .. .. ..175.18 .. .. .. .. .. .. .. .. ..183.05 Annual average 140.11 149.74 159.60 59 169.68 183.23 Overview Selected Monetary Indicators Economic Survey 2018 Chapter 04 Money, Banking and Finance K enya’s financial sector recorded a slowed growth of 3.1 per cent in 2017 compared to a growth of 6.7 per cent in 2016. The slowdown may be attributed low uptake of credit. In 2017, the monetary policy stance focused on maintaining inflation within the Government’s target range of 2.5 per cent on either side of the 5.0 per cent medium-term target. In the first half of 2017, there was an inflation surge, which averaged 9.8 per cent mainly due to food shortages witnessed during the period. 4.2. During the review period, the Monetary Policy Committee (MPC) retained the Central Bank Rate (CBR) at 10.0 per cent to continue anchoring inflation expectations, capping lending rates at 4.0 basis points above the CBR. The 91-day Treasury Bill rate fell from 8.44 per cent in December 2016 to 8.42 per cent in June 2017 and further to 8.01 per cent in December 2017. The year-on-year inflation in December 2017 stood at 4.50 per cent, compared to 6.35 per cent in December 2016. 4.3. The annual growth rates of money supply and private sector credit were consistent with the developments in the financial sector, in particular, the enforcement of the Banking (Amendment) Act 2016. Money supply (M1) expanded by 6.7 per cent in December 2017. The extended broad money supply (M3) grew by 8.9 per cent to KSh 3,010.9 billion in December 2017. Credit to the private sector expanded by 2.4 per cent in 2017, compared to 4.1 per cent in 2016. Total domestic credit grew by 7.9 per cent to 3,252.2 billion in 2017. 4.4. Interest rates on average deposits increased to 8.22 per cent in December 2017 from 7.33 per cent in December 2016. On the other hand, commercial banks’ average lending interest rates charged on loans and advances remained stable at 13.64 per cent in December 2017, owing to the prevailing monetary policy stance and interest rate capping requirements. The increase on average interest rates on deposits narrowed the loan-deposit interest spread to 5.41 per cent in December 2017. 4.5. In the equities market, the Nairobi Securities Exchange (NSE) 20-Share index rose to 3,712 points in December 2017 from 3,186 points in December 2016. However, noticeable volatility was recorded in the weeks before the election months of August and October 2017. In the pensions sub-sector, the retirement benefit assets grew to KSh 963.1 billion in June 2017 from KSh 831.8 billion in June 2016. 4.6. Table 4.1 shows selected monetary indicators from 2013 to 2017. The Net Foreign Assets (NFA) held by the banking system increased by 4.6 per cent to KSh 517.9 billion in December 2017 from KSh 495.2 billion in December 2016. Total domestic credit by the banking system grew by 7.9 per cent in December 2017 to KSh 3,252.2 billion. Domestic credit to private sector and other public bodies grew to KSh 2,496.5 billion in December 2017 from KSh 2,421.5 billion in December 2016. Credit to the National Government increased by 27.4 per cent to KSh 755.7 billion in December 2017. Extended broad money supply (M3) grew by 8.9 per cent to KSh 3,010.9 billion in 2017. The commercial banks liquidity ratio rose to 47.1 per cent in December 2017 from 45.8 per cent in December 2016. The advances to deposits ratio dropped from 88.6 per cent to 83.2 per cent over the same period, due to subdued economic activity that led to reduced borrowing and the rise in liquidity. 60 Chapter 4: Money, Banking and Finance Table 4.1: Monetary Indicators, 2013-2017 As at end of: Net Foreign Assets (KSh Million) Domestic Credit (KSh million) Private and other public bodies 2013 2014 2015 2016 2017* Dec .......... Dec .......... Dec .......... Dec .......... Mar .......... Jun ........... Sep ........... Dec .......... 387,292 479,654 491,461 495,165 602,976 644,126 611,627 517,876 Extended Broad Money Supply(M3) (KSh Million) 1,581,358 1,932,862 2,269,898 2,421,506 2,415,662 2,407,163 2,450,910 2,496,453 National Government 397,164 379,316 524,026 592,770 583,476 646,240 674,324 755,698 Commercial Bank Liquidity Ratio1 (per cent) Advances/ Deposits Ratio (per cent) Total 1,978,522 2,312,178 2,793,924 3,014,276 2,999,137 3,053,402 3,125,234 3,252,151 1,996,242 2,329,979 2,658,166 2,764,507 2,846,634 2,936,110 2,986,352 3,010,943 47.0 45.1 43.7 45.8 46.2 48.1 49.1 47.1 82.3 83.0 87.0 88.6 87.3 83.2 83.2 83.2 Source: Central Bank of Kenya *Provisional 1 Commercial Banks' liquid assets as per cent of deposit liabilities 4.7. Table 4.2 presents various money supply aggregates for the period 2013 to 2017. Money supply (M1) grew by 6.7 per cent in December 2017 compared to a growth of 28.0 per cent in December 2016. Quasi money deposits held by commercial banks and other deposit taking institutions increased by 8.6 per cent during the same period. Broad money supply (M2) and extended broad money supply (M3) grew by 7.5 per cent and 8.9 per cent, respectively. The overall liquidity grew by 10.1 per cent to KSh 4,085.1 billion during the period under review. 61 Economic Survey 2018 Table 4.2: Money and Quasi Money Supply, 2013-2017 KSh Million Money (M1) Quasi-Money 2013 Dec ………………………… 827,069 844,526 936,440 1,045,421 2014 Dec ………………………… 1,023,672 1,211,125 2015 Dec ………………………… 1,310,016 1,050,186 2016 Dec ………………………… 1,272,950 1,063,206 2017* Jan…………… Feb ………………………… 1,287,123 1,063,239 Mar ………………………… 1,317,184 1,094,919 1,363,661 1,087,260 Apr ………………………… May ………………………… 1,359,121 1,102,098 Jun ………………………… 1,391,293 1,089,229 Jul ………………………… 1,382,374 1,113,649 Aug ………………………… 1,364,341 1,138,812 Sep ………………………… 1,382,674 1,132,413 Oct ………………………… 1,395,418 1,119,720 Nov ………………………… 1,387,745 1,133,240 Dec ………………………… 1,397,256 1,140,939  M2  M3 L 1,671,595 1,981,860 2,234,797 2,360,202 2,336,156 2,350,363 2,412,103 2,450,921 2,461,219 2,480,521 2,496,023 2,503,153 2,515,087 2,515,138 2,520,985 2,538,195 1,996,242 2,329,979 2,658,166 2,764,507 2,759,198 2,781,233 2,846,634 2,895,366 2,902,854 2,936,110 2,957,939 2,966,992 2,986,352 2,980,395 2,995,206 3,010,943 2,523,227 2,949,057 3,390,818 3,708,694 3,702,755 3,734,966 3,816,679 3,858,902 3,873,754 3,934,976 3,958,719 3,979,927 4,012,345 4,030,946 4,070,168 4,085,100 Source: Central Bank of Kenya. * Provisional Notes: (a) M1 comprises of currency outside banks plus all demand deposits except; those of National Government, Commercial Banks, Non Residents deposits (b) Quasi Money: Refers to near money. It comprises of call plus 7 days deposits, savings and time deposits. (c) M2, Broad Money, comprise of M1 and Quasi money. (d) M3, Extended Broad Money, comprises M2 and foreign currency holdings by residents. (e) L, Overall Liquidity, comprises M3 and Treasury Bill holdings by the non-bank public. Consolidated 4.8. Table 4.3 presents assets and liabilities of the banking system for the period 2013 to 2017. Accounts of the Assets and liabilities of the banking system increased by 7.4 per cent to KSh 3,770.0 billion in Banking System December 2017 from KSh 3,509.4 billion in December 2016. Demand deposits increased by 6.5 per cent from KSh 1,100.1 billion in December 2016 to KSh 1,171.8 billion in December 2017, while foreign currency deposits increased by 17.0 per cent to KSh 472.7 billion. 62 Chapter 4: Money, Banking and Finance Table 4.3: Consolidated Accounts of the Banking System 2013-2017 KSh Million 2013 LIABILITIESDecember 1. Money (M1): 1.1 Demand Deposits ..................... 663,709 1.2 Currency outside banks .......... 163,359 Sub-Total .............................................. 827,069 2. Quasi-Money(MS): 2.1 Call + 7 days Notice Deposits ... 81,889 2.2 Savings Deposits ....................... 230,358 2.3 Time Deposits ......................... 532,279 Sub-Total (quasi-money banks) ...... 844,526 Broad Money Supply(M2)…………….. 1,671,594 3. Foreign Currency Deposits ................. 324,647 Extended Broad Money Supply(M3) 1,996,241 5. Treasury Bill Holdings ........................ 526,985 Overall Liquidity(L)…………………… 2,523,227 6. Other Items Net(OIN) ...................... 369,572 Total Liabilities (M3+OIN) .............. 2,365,813 ASSETS7. Net Foreign Assets .............................. 387,292 8. Domestic Credit: 8.1 National Govt. .......................... 397,164 8.2 Other Public Bodies .................. 39,620 8.3 Private Sector (net) ................... 1,541,738 Total Domestic Credit 1,978,522 TOTAL ASSETS 2,365,813 2014 2015 2016 December December December March June 2017* September December 762,935 832,421 1,100,124 1,116,184 1,184,179 1,173,399 1,171,755 173,505 191,251 209,891 201,000 207,114 209,275 225,500 936,440 1,023,672 1,310,016 1,317,184 1,391,293 1,382,674 1,397,256 101,141 286,860 657,419 1,045,421 1,981,860 348,119 2,329,979 619,078 2,949,057 461,854 2,791,833 117,048 333,265 760,812 1,211,125 2,234,797 423,369 2,658,166 732,652 3,390,818 627,219 3,285,385 162,345 105,594 782,246 1,050,186 2,360,201 404,305 2,764,506 944,187 3,708,694 703,830 3,468,336 169,260 110,092 815,566 1,094,918 2,412,102 434,531 2,846,634 970,045 3,816,679 708,934 3,555,568 168,381 109,520 811,328 1,089,229 2,480,522 455,588 2,936,110 998,867 3,934,977 710,253 3,646,363 175,056 113,862 843,495 1,132,413 2,515,087 471,265 2,986,352 1,025,993 4,012,345 694,932 3,681,284 176,374 114,719 849,845 1,140,938 2,538,194 472,749 3,010,943 1,074,156 4,085,099 705,218 3,716,161 479,654 491,461 495,164 602,976 644,126 611,627 517,876 379,316 524,026 592,770 583,476 646,240 674,324 755,698 48,402 65,093 104,719 105,940 106,858 113,710 112,399 1,884,460 2,204,805 2,275,683 2,263,176 2,249,139 2,281,624 2,330,188 2,312,178 2,793,924 2,973,172 2,952,592 3,002,237 3,069,658 3,198,285 2,791,833 3,285,385 3,468,336 3,555,568 3,646,363 3,681,284 3,716,161 Source: Central Bank of Kenya. * Provisional Notes: (a) Other Items Net Includes Special Drawing Rights (SDR) allocated by IMF. (b) Net Foreign Assets includes Government reserve position in the IMF and deposits with Crown Agents. (c) Treasury Bill holdings by the non-bank public is not included in total liabilities of the banking sytem. 63 Economic Survey 2018 Sources of Change in Money Supply 4.9. Changes in money supply and their sources for the period 2013 to 2017 are presented in Table 4.4. Changes in M3 are as a result of changes in net domestic assets of the banking system which comprise; net foreign assets, domestic credit and other items net. Change in extended broad money (M3) was KSh 246.4 billion in December 2017 compared to KSh 106.3 billion recorded in December 2016. During the same period, change in foreign currency deposits was KSh 68.4 billion in 2017 compared to a negative change of KSh 19.1 billion in 2016. The growth in M3 was mainly attributable to increase in credit advanced to the National Government and private sector. Table 4.4: Changes in Money Supply and the Sources, 2013-2017 KSh Million 2017* 2013 2014 2015 2016 MONEY SUPPLY CHANGES .... .... .. .. ..109,371 .. .. .. .... .... 87,232 .. .. .. .. .... 286,344 .... .. .. 1 Currency plus demand deposits (M1) .. .. ..116,185 .. .... .... .. 200,895 .... .... .. .... .... 165,704 .. .... .... ..-160,939 .... .... 2 Quasi-money .. .. .. .. .. .. .. .. .... .... .. .. .. 86,010 -19,064 .... .... .. .. ..23,472 .. .. .... .... ..75,250 .. .. .. .... .... .. 3 Foreign Currency Deposits .. .. .. . .. .. .. ....66,360 .. .. .. .. .. ....333,738 .... .. ... .. ..328,187 .. .. .. .... ....106,341 .. .. .. .. .... 4 Extended Broad Money supply (M3) .. .. ..268,556 SOURCES OF CHANGES .... .. .. .. .. ..92,363 .... .... .. .. ..11,806 .. .... .... .. ..3,703 5 Net foreign assets .. .. .. .. .. .. .. .. .... .... 61,299 6 All Domestic Credit .. .. . .. (a) to National Government (net) .. . .. .. 28,341 .. ..... .. .. ..-17,848 .. .. .... .... ..144,710 .. .. .. .... .... ..68,744 . .... .. (b) to other public sector .. .. .. .. .. .. .. .. .... -10,195 ...... .. .. .. ..8,782 .. .... .... .. 16,691 .. .. .. .... .... 39,626 .. .. (c) to private sector .. .. .. .. .. .. .. .. .. .. .... 257,865 ..... .. .. .. 342,722 .. .. .... .... .. 320,345 .. .. .. .... .... ..70,878 . .. -68,755 .... .. .. .. ..-92,282 .. .. .... ....-165,366 .. .. .. .. .... ....-76,610 .. .. 7 Other Items (Net) .. .. .. .. .. .. .. .. .. .. .. .... .. .... .... .. .. 333,738 .. .. .. .. .... .... 328,187 .. .. .. .. ....106,341 .... .. .. 8 Total sources of change (5+6+7) .. .. . .. .. 268,556 87,240 90,752 68,444 246,437 .... .. . .. 22,712 162,927 7,680 54,505 -1,388 246,437 Note: Changes in Money Supply and the sources compares year-end values * Provisional Selected Financial Aggregates in Real Values 4.10. Selected financial aggregates in real values from 2013 to 2017 are shown in Table Commercial bank credit to private sector contracted by 1.4 per cent while overall liquidity grew by 5.4 per cent in 2017. Commercial banks deposit liabilities increased by 6.0 per cent from KSh1,582.2 billion in 2016 to KSh 1,676.4 billion in 2017. Extended broad money supply (M3) increased by 4.2 per cent to KSh 1,644.9 billion, while total liabilities of the banking system increased by 2.5 per cent to KSh 2,030.1 billion. The share of commercial banks deposit liabilities to the total liabilities increased from 79.9 per cent in 2016 to 82.6 per cent in 2017. 64 Chapter 4: Money, Banking and Finance Table 4.5: Trends in the Real Values of Selected Financial Aggregates1, 2013-2017 KSh Million 2013 2014 2015 2016 2017* 1 Extended Broad Money Supply (M3).... .. .. ..1,387,724 .. .. .. .. .... ..1,527,755 .. .. .. .. .. .. 1,613,748 .. .. .... .. .. .. 1,578,095 .. .. .. .. . .. ..1,644,875 2 Overall Liquidity (L).... .. .... .. .. .. .. .. .. .... 1,754,068 .. .. .. .. .. .. 1,933,681 .... .. .. .. .. .. 2,058,534 .. .. ... .. .. .. 2,117,076 .. 2,231,685 3 Commercial bank credit to private sector .. .. ..1,099,310 .. .. .. .. .. ..1,267,367 .. .. .... .. .. ..1,378,034 .. .. .. .. . ....1,382,296 .. .. .. .. .. .. 1,363,809 .. 4 Total commercial bank credit .. .. ... .. .. .. .. 1,375,406 .. .. .... .. .. .. 1,516,083 .. .... .. .. .. ..1,696,166 .. .. .. . .. .. ..1,720,674 .. .. .. ... 1,776,646 5 Commercial Banks' Deposit Liabilities .. .. .. ..1,369,640 .. .. .. .. .. .. 1,525,925 .. .. .... .. .. ..1,615,554 .. .. .. .. ... ..1,582,207 .. .. .. .. .. .. 1,676,440 6 Total liabilities of banking system .... .. .. .. .. 1,644,639 .. .. .. .. .. .. .... 1,830,590 .. .. .. .. .. 1,994,507 .. .. . .... .. .. ..1,979,870 .. .. .. .. . 2,030,134 Memorandum item: 7 Line 5 as per cent of line 6 .. .. .. .. .. .. .. .. .... .. .. ..83.3 .. .. .. .. .. .. 83.4 .... .. .. .. .. .. 81.0 .. .. . .. .. * 79.9 82.6 Provisional 1 Selected financial aggregates values are deflated using December Consumer Price Indices Nominal and 4.11. Nominal interest rates for the period 2013 to 2017 are presented in Table 4.6. Average Real Interest deposit rates rose from 7.33 per cent in December 2016 to 8.22 per cent in December 2017. Rates The commercial banks’ average interest rates charged on loans and advances declined from 13.69 per cent in December 2016 to 13.64 per cent in December 2017. The CBR remained at the same rate of 10.00 per cent during the year under review. The 91-day Treasury Bills rate dropped to 8.01 per cent in December 2017 from 8.44 per cent in December 2016. Table 4.6: Nominal Principal Interest Rates, 2013-2017 2013 2014 2015 2016 December December December December Per cent 2017 June December CENTRAL BANK OF KENYA 91- day Treasury Bills Rate .. .. .. .. .. .. .. .. .. .. .. .. .. ..9.52 .. .. . .. .. .. .. ..8.58 .. .. .. .. .. .. .. ..9.81 .. 8.44 8.42 Central Bank Rate.. …... .. .. .. .. .. .. .. .. .. .. .. .. . .. ..8.50 .. .. .. .. .. .. .. ..8.50 .. .. .. .. . .. ..11.50 .. .. .. .. .. .. .. ..10.00 .. .. .. .. .. ..10.00 .. Repo rate.. .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. ... .. .. .. ..9.38 .. .. .. .. .. .. .. ..8.29 .. .. . .. .. .. .. ..9.23 .. .. .. .. .. .. .. .. .. .. .. .. ..4.13 Inter-bank rate.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. ..8.98 .. .. .. .. .. .. .. ..6.91 .. .. .. . .. .. .. ..7.27 .. .. .. .. .. .. .. ..5.92 .. .. .. .. .. 3.99 8.01 10.00 7.75 7.27 COMMERCIAL BANKS1 Average deposits.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. ..6.65 .. .. .. .. .. .. .. ..6.81 .. .. ... .. .. .. .. 8.02 .. .. .. . 7.33 7.15 8.22 Savings deposits.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. ..1.58 .. .. .. .. .. .. .. 1.85 .. .. .. .. .. . .. .. ..1.56 .. .. .. .. .. .. .. 6.37 .. .. .. .. .. ..5.63 .. .. .. .. 6.91 Loan and Advances (maximum).. .. .. .. .. .. .. .. .. ..16.99 .. .. .. .. .. .. .. 15.99 .. .. .. .. .. .. .. ..18.30 .. .. . .. .. .. .. .. 13.69 .. .. .. .. .. ..13.66 .. .. .. . .. 13.64 Overdraft.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... ..16.51 .. .. .. .. .. .. .. 15.86 .. .. .. .. .. .. . .. ..18.48 .. .. .. .. .. .. .. 13.49 .. .. .. .. .. ..13.38 .. 13.54 Loans-Deposits Spread.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 10.34 .. .. .. .. .. .. .. .. ..9.18 .. .. .. . .. .. ..10.28 .. .. .. .. .. .. .. .. ..6.36 .. .. . .. .. ..6.52 5.41 Source: Central Bank of Kenya. 1 Weighted average commercial bank interest rates 4.12. Selected real principal interest rates for the period 2013 to 2017 are presented in Table 4.7. Average real interest rates for the 91-day Treasury Bills rose from 2.09 per cent in 2016 to 3.51 per cent in 2017. In the same period, real interest rates for commercial bank average savings deposit rate rose from 0.98 per cent to 3.72 per cent, while the inter-bank rates rose from negative 0.43 per cent to 2.77 per cent. The real interest rate for loans and advances from commercial banks increased from 7.34 per cent in 2016 to 9.14 per cent in 2017. 65 Economic Survey 2018 Table 4.7: Selected Real Principal Interest Rates, 2013-2017 Per cent Average Interest Rate for 91-day Treasury Bills Commercial bank deposits (average) Commercial bank loans and advances (maximum) Inter-Bank Rate Year 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Nominal Interest Inflation Rate 9.52 7.15 8.58 6.02 9.81 8.01 8.44 6.35 8.01 4.50 1.58 7.15 1.85 6.02 1.56 8.01 7.33 6.35 8.22 4.50 16.99 7.15 15.99 6.02 18.30 8.01 13.69 6.35 13.64 4.50 8.98 7.15 6.02 6.91 7.27 8.01 5.92 6.35 7.27 4.50 Real Interest1 2.37 2.56 1.80 2.09 3.51 -5.57 -4.17 -6.45 0.98 3.72 9.84 9.97 10.29 7.34 9.14 1.83 0.89 -0.74 -0.43 2.77 Note: Interest rates are as at December 1 Real Interest Rate equals Nominal Rate minus Inflation Rate 4.13. The statement of financial position of the Central Bank of Kenya (CBK) from 2013 to 2017 is shown in Table 4.8. The total assets and liabilities of the Central Bank rose from KSh 866.5 billion in December 2016 to KSh 906.0 billion in December 2017. Other assets, including Treasury Bills and Bonds increased from KSh 37.9 billion in December 2016 to KSh 80.5 billion in December 2017. On the liabilities side, total deposits declined by 8.8 per cent from KSh 515.7 billion in December 2016 to KSh 473.6 billion in December 2017. Currency in circulation increased by 6.3 per cent from KSh 262.7 billion in December 2016 to KSh 279.2 billion in December 2017. 66 Chapter 4: Money, Banking and Finance Table 4.8: Central Bank of Kenya Assets and Liabilities, 2013-2017 KS h Million 2013 2014 2015 2016 Dec Dec Dec Dec 2017* March June September December AS S ETS 1. Foreig n Exchang e:1.1 Balances with External Banks ............. 462,378 608,203 585,544 580,215 656,693 685,954 602,741 485,322 1.2 Treas ury Bills ........................................ 77,496 81,195 133,828 131,717 135,334 140,164 178,765 229,344 1.3 Other Inv es tments ............................... 29,413 32,641 44,204 36,166 45,080 46,094 49,010 40,180 1.4 Special Drawing Rig hts ....................... 2,682 1,241 1,551 3,813 1,199 1,877 253 1,487 TOTAL ................................................ 571,969 723,279 765,127 751,911 837,107 872,212 2. A dv ances & Dis c. to Banks .................... 3. Direct A dv ances & Ov erdraft to the Gov ernment ……… 13,788 3,676 16,858 46,713 30,700 34,187 30,929 45,233 29,956 28,325 71,277 37,914 4. Other A s s ets including T Bills & Bonds ………… 40,703 TOTAL AS S ETS 830,516 754,846 23,600 64,512 28,292 30,298 43 24,739 42,335 80,537 81,239 80,560 80,507 ........................................ 650,670 786,209 885,202 866,494 978,642 977,094 1,000,326 905,980 LIABILITIES : 1. Capital ........................................................... 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 2.1 Notes ..................................................... 203,988 215,272 233,703 254,784 237,389 245,487 242,510 270,593 2.2 Coins ....................................................... 6,008 6,658 7,228 7,951 8,124 8,300 8,185 8,566 2. Currency - TOTAL CURRENCY ................................. 209,990 221,930 240,931 262,734 245,513 253,787 250,695 279,159 3. Depos its 3.1 To the Gov ernment .............................. 115,542 179,963 177,905 181,804 183,582 214,346 227,931 144,903 3.2 Local Banks 1 ........................................ 110,773 158,111 151,499 148,411 204,334 145,815 173,826 159,619 3.3 External Banks ...................................... 139,694 133,819 143,741 130,329 139,284 133,868 135,867 127,717 3.4 Other ..................................................... 30,948 26,729 29,634 55,129 53,498 81,243 59,704 41,389 TOTAL Deposits .................................. 396,957 498,622 502,778 515,673 580,697 575,272 4. Other Liabilities .......................................... 38,723 60,658 136,493 83,087 147,432 143,034 597,328 473,628 147,303 148,194 TOTAL LIABILITIES .................................. 650,670 786,209 885,202 866,494 978,642 977,094 1,000,326 905,980 S ou rce : C e n tra l B a n k of Ke n ya * Provision a l 1 Deposits f rom commercial bank s ex cluding non-bank f inancial institutions (NBFIs) T Bills are Treasury Bills 4.14. Table 4.9a presents credit advanced by commercial banks to various sectors from 2013 to 2017. Commercial banks’ credit grew by 6.0 per cent from KSh 3,127.9 billion in December 2016 to KSh 3,316.6 billion in December 2017. Credit advanced to manufacturing sector increased by 13.0 per cent to KSh 310.6 billion in 2017. In the public sector, commercial banks credit to the National Government rose by 16.5 per cent to KSh 826.9 billion in December 2017. Credit advanced to the county governments declined by 52.8 per cent to KSh 1.8 billion while credit to enterprises, parastatal bodies and other public entities grew by 7.4 per cent to KSh 108.4 billion in December 2017. 67 Economic Survey 2018 Table 4.9a: Commercial Banks’ Bills, Loans and Advances1, 2013-2017 2013 Dec 2014 Dec 2015 Dec 2016 Dec KSh Million 2017* Dec PUBLIC SECTOR: National Government (net)2 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..464,475 .. .. .. .. .. .. 518,729 .. 709,866 826,900 .. .. .. .. .. 278 County Government (net) .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. ..-228 1,149 3,807 Enterprises, Parastatal bodies and other Public entities .. .. .. .. .. .. .. .. .. 39,847 .. .. .. .. .. .. ..48,125 .. .. 45,173 100,912 TOTAL PUBLIC SECTOR 504,095 567,131 630,049 814,585 PRIVATE ENTERPRISES: Agriculture .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. ..58,656 .. .. .. .. .. .. 75,001 .. . .. .. 85,925 90,081 Mining and Quarrying .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. ..27,804 .. .. .. .. .. ..23,421 .. . .. .. .. .. 20,776 16,802 Manufacturing .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..181,687 .. .. .. .. .. .. 237,422 .. .. .. .. .. 290,069 275,018 Building and Construction .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. 70,770 .. .. .. .. .. .. ..80,406 . .. .. .. .. ..106,307 104,826 Transport, Storage and Communication .... .. .. .. .. .. .. .. .. .. .. .. .. .. ..89,488 .. .. .. .. .. ..130,304 .. .. .. .. .. ..171,643 .. .. 201,270 Wholesale and retail trade, hotels and restaurants .. .. .. .. .. .. .. .. .. .. .. ..253,198 .. .. .. .. .. .. 306,927 .. .. .. 378,043 380,683 Real Estate .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..198,337 .. .. .. .. .. .. 262,691 .. .. 282,586 337,352 Financial Institutions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..29,924 .. .. .. .. .. ..50,384 .. .. .. .. 61,042 85,212 Other Business .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 231,631 .. .. .. .. .. .. 306,165 .. .. .. .. 402,179 356,304 TOTAL PRIVATE ENTERPRISES 1,141,496 1,472,721 1,798,569 1,847,548 Community and Personal Services (including Non-Profit Making Institutions) ... …………………… .. .. 226,200 316,187 360,292 389,591 Other Activities (nec) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..183,594 .. .. .. .. .. 108,696 84,890 79,886 TOTAL BILLS, LOANS AND ADVANCES 2,055,385 2,464,736 2,873,800 3,127,888 583,727 1,797 108,424 937,122 83,008 15,877 310,633 109,883 186,744 414,908 366,486 81,586 345,757 1,914,883 383,598 83,304 3,316,619 Source: Central Bank of Kenya * Provisional 1 Commercial Banks' bills,loans and advances excludes portfolio investment by private enterprises and bank deposits placed with non-bank financial institutions. 2 Credit to National Government includes investments in Government Securities 4.15. The sectoral shares of commercial banks credit for the period 2013 to 2017 are shown in Table 4.9b. The share of loans and advances to the public sector rose from 26.0 per cent in December 2016 to 28.3 per cent in December 2017. The share of credit to public enterprises, parastatal bodies and other public entities increased to 3.3 per cent in 2017 from 3.2 per cent in 2016. In 2017, transport, storage and communication, agriculture and other business sectors recorded marginal declines in credit. During the same period, manufacturing sector recorded a marginal increase in credit. 68 Chapter 4: Money, Banking and Finance Table 4.9b: Commercial Banks’ Bills, Loans and Advances Sector Shares1 2013–2017 2013 Dec 2014 Dec 2015 Dec 2016 Dec Per cent 2017* Dec 22.6 21.0 20.3 22.7 24.9 County Government .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 0.0 0.0 Enterprises, Parastatal bodies and other Public entities .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..1.9.. .. .. .. 2.0 TOTAL PUBLIC SECTOR 24.5 23.0 PRIVATE ENTERPRISES Agriculture .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2.9 3.0 Mining and Quarrying .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1.4 1.0 Manufacturing .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8.8 9.6 Building and Construction .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3.4 3.3 Transport, Storage and Communication .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4.4 5.3 Wholesale and retail trade, hotels and restaurants .. .. .. .. .. .. .. .. 12.3 12.5 Real Estate .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 9.6 10.7 Financial Institutions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1.5 2.0 Other Business .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11.3 12.4 TOTAL PRIVATE ENTERPRISES 55.5 59.8 Community and Personal Services (including Non-Profit Making Institutions) ... …………………… 11.0 12.8 Other Activities (nec) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..8.9 4.4 TOTAL BILLS, LOANS AND ADVANCES 100.0 100.0 0.0 1.6 21.9 0.1 3.2 26.0 0.1 3.3 28.3 3.0 0.7 10.1 3.7 6.0 13.2 9.8 2.1 14.0 62.6 12.5 3.0 100.0 2.9 0.5 8.8 3.4 6.4 12.2 10.8 2.7 11.4 59.1 12.5 2.6 100.0 2.5 0.5 9.4 3.3 5.6 12.5 11.0 2.5 10.4 57.7 11.6 2.5 100.0 PUBLIC SECTOR National Government 1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Source: Central Bank of Kenya * Provisional Note: Commercial banks, bills, loans and advances excludes portfolio deposits placed with non-bank financial institutions investment by private enterprises and bank 1 Credit to National Government includes investments in Government Securities 4.16. Deposit liabilities and liquid assets of commercial banks for the period 2013 to 2017 are presented in Table 4.10. Deposit liabilities held by commercial banks grew by 10.7 per cent to KSh 3,068.7 billion in December 2017 from KSh 2,771.7 billion in December 2016. Liquid assets increased by 13.8 per cent to KSh 1,444.2 billion in 2017. The overall liquidity ratio rose from 45.8 per cent in December 2016 to 47.1 per cent in December 2017. 69 Economic Survey 2018 Table 4.10: Commercial Banks’ Deposit Liabilities and Liquid Assets, 2013-2017 2013 2014 2015 2016 2017* December .............................. December .............................. December .............................. December .............................. January .................................. February................................. March..................................... April....................................... May........................................ June........................................ July......................................... August.................................... September.............................. October.................................. November.............................. December............................... Deposit Liabilities1 (KSh Million) 1,970,227 2,327,188 2,661,140 2,771,711 2,774,513 2,802,035 2,857,127 2,929,283 2,949,869 2,971,434 3,003,284 3,011,002 3,016,446 3,029,319 3,022,727 3,068,724 Liquid Assets1,2 (KSh Million) 925,443 1,050,496 1,162,557 1,269,312 1,269,254 1,275,379 1,321,215 1,373,858 1,401,673 1,429,483 1,457,788 1,464,545 1,481,195 1,463,610 1,435,421 1,444,155 Overall Liquidity Ratio (Per cent) 47.0 45.1 43.7 45.8 45.7 45.5 46.2 46.9 47.5 48.1 48.5 48.6 49.1 48.3 47.5 47.1 Source: Central Bank of Kenya. * Provisional 1 Deposits and Liquid Assets are calculated as an average of three days balances. 2 Includes notes and coins, balances at Central Bank, net inter-bank balances in Kenya and Overseas (included only if positive) and Treasury Bills. Deposit Taking Savings and Credit Cooperatives 4.17. Table 4.11 presents performance of Deposit Taking Savings and Credit cooperatives (DTSs). The assets of DTSs grew by 12.6 per cent to KSh 442.9 billion in 2017 from KSh 393.5 billion in 2016. Total deposits recorded a growth of 12.6 per cent to KSh 307.0 billion while loans and advances grew by 10.8 per cent to KSh 320.1 billion during the review period. Capital reserves increased by 46.5 per cent from KSh 61.3 billion in 2016 to KSh 89.8 billion in 2017. Table 4.11: Performance of Deposit Taking Savings and Credit Cooperatives 2014-2017 Indicator Assets .......................................... Deposits ...................................... Loans and Advances ................... Capital Reserves .......................... 2014 301,537 205,974 228,524 43,086 2015 342,848 237,440 251,080 50,835 2016 393,499 272,579 288,921 61,261 KSh Million 2017* 442,919 306,988 320,091 89,813 Source: Sacco Society Regulatory Authority * Provisional Capital 4.18. Table 4.12 shows the performance of the secondary market for the period 2013 to 2017. Markets The Nairobi Securities Exchange (NSE) 20-Share index rose to 3,712 points in December 2017 compared to 3,186 points recorded in December 2016. The total number of shares traded also increased from 5.8 billion in 2016 to 7.1 billion during the period under review. Total value of shares traded increased from KSh 147 billion in 2016 to KSh 172 billion during the period under review. Total bond turnover declined from KSh 433 billion in 2016 to KSh 429 billion in 2017. Market capitalization increased by 30.5 per cent from KSh 1,932 billion as at end of 2016 to KSh 2,522 billion as at end of 2017. The total number of licensed/approved institutions in the capital market reduced by 1 to 132 in 2017. 70 Chapter 4: Money, Banking and Finance Table 4.12: Secondary Market Statistics, 2013-2017 2013 2014 2015 2016 2017* Equities Mark et Total No. of Shares Traded (million) .............................. 7,576 8,233 6,812 5,809 7,065 Total No. of Deals .............................................................. 426,327 548,991 406,632 300,183 284,982 Total Value of Shares Traded (KSh billion) ................... 156 216 209 147 172 NSE 20 Share Index (Bas e Jan 1966=100) ....................... 4,927 5,113 4,040 3,186 3,712 Market Capitalization (KSh billion) ................................. 1,921 2,316 2,054 1,932 2,522 305 433 429 Fixed Income S ecurities Mark et Total bond Turnov er (KSh billion) ................................. 452 506 Securities Exchang e .......................................................... 1 1 1 1 1 Central Depos itories ......................................................... 1 1 1 1 1 Inv es tment Banks .............................................................. 10 13 14 14 14 Stockbrokers ...................................................................... 11 10 9 10 10 Inv es tment adv is ers .......................................................... 16 17 17 13 14 Fund Manag ers ................................................................. 20 24 25 28 26 Collectiv e Inv es tment Schemes ...................................... 16 19 20 23 23 A uthorized depos itories /Cus todians ............................. 15 14 14 14 14 Credit Rating A g encies ................................................... 2 3 3 3 3 Venture Capital Companies .............................................. 1 1 1 1 2 6 8 8 3 3 3 11 11 14 3 1 Capital Mark ets, Licensed/approved Institutions Real Es tate Inv es tment Trus t Manag ers ....................... Real Es tate Inv es tment Trus t Trus tees .......................... Employ ee Share Owners hip Plans (ESOPS) .................. 10 10 A uthorized Real Es tate Inv es tment Trus ts ................... Total 103 115 125 133 0 132 Source: Capital Markets A uthority * Prov is ional Insurance 4.19. Table 4.13 presents performance indicators for life insurance business from 2013 to 2017. The bulk of the life insurance business was life business, which stood at 97.3 per cent of the asset base. Total assets in life business grew by 15.8 per cent to KSh 353.6 billion in 2017. On the other hand, total liabilities increased by 18.3 per cent to stand at KSh 307.6 billion in 2017. Other indicators that recorded significant growth include; benefits payment, investments, net premium income and gross premium income that grew by 24.1, 17.3, 14.2 and 13.6 per cent, respectively. Commissions declined by 4.3 per cent in life business and grew by 10.8 per cent in life re-insurance to stand at KSh 5.4 billion and KSh 0.7 billion, respectively. 4.20. In 2017, assets in life re-insurance grew by 10.5 per cent to KSh 9.9 billion while liabilities rose to KSh 4.8 billion. Life re-insurance gross premium income increased by 15.8 per cent to KSh 2.8 billion in 2017. Investments in life re-insurance grew by 5.9 per cent compared to a rate of 17.3 per cent in life business segment in 2017. 71 Economic Survey 2018 Table 4.13: Performance of Life Insurance Business, 2013-2017 KS h Million Indicator 2013 2014 2015 2016 2017* Life Business Gros s Premium Income.................... 44,346 56,483 61,243 73,062 82,971 Net Premium Income........................ 41,707 52,613 56,514 67,579 77,165 Benefits Pay ment ............................ 23,506 27,165 28,264 36,985 45,912 Commis s ions ..................................... 3,659 4,380 5,078 5,598 5,357 Manag ement Expens es ................... 7,333 9,451 11,176 12,011 12,020 Shareholders ' Funds ........................ 28,467 36,566 36,259 45,258 45,962 A s s ets ................................................ 195,854 240,086 268,976 305,389 353,608 Liabilities ........................................... 167,386 203,520 232,717 260,131 307,646 Inv es tments ...................................... 175,311 218,774 242,750 271,906 318,922 Re-insurance Life Gros s Premium Income.................... 1,425 1,622 2,087 2,393 2,771 Net Premium Income........................ 1,270 1,424 1,813 2,069 2,445 Benefits Pay ment............................. 530 537 767 1,038 1,208 Commis s ions ..................................... 347 443 533 606 672 Manag ement Expens es ................... 154 198 249 291 313 5,164 Shareholders ' Funds ........................ 3,482 4,366 4,124 4,643 A s s ets ................................................ 6,210 6,812 8,044 8,983 9,923 Liabilities ........................................... 2,728 2,446 3,920 4,340 4,759 Inv es tments ...................................... 6,025 6,494 7,713 8,529 9,029 Source: Insurance Regulatory A uthority * Prov isional 4.21. Table 4.14 presents performance for general insurance business from 2013 to 2017. Assets of general insurance business increased by 3.6 per cent to KSh 179.0 billion while liabilities increased by 2.7 per cent to KSh 108.6 billion in 2017. Gross premium income increased by 2.5 per cent to KSh 124.7 billion in 2017. 4.22. Under the re-insurance general business segment, assets grew by 11.1 per cent to KSh 42.3 billion while liabilities increased by 6.5 per cent to KSh 15.7 billion in 2017. Gross premium income grew by 14.6 per cent to stand at KSh 17.5 billion in 2017. 72 Chapter 4: Money, Banking and Finance Table 4.14: Performance for General Insurance Business, 2013– 2017 Indicator General Business Gros s Premium Income........................... Net Premium Income............................... Net Earned Premium Income ................. Claims Incurred ....................................... Commis s ions ............................................ Manag ement Expens es .......................... Shareholders ' Funds ............................... A s s ets ....................................................... Liabilities .................................................. Inv es tments ............................................. Re-insurance General business Gros s Premium Income........................... Net Premium Income............................... Net Earned Premium Income ................. Claims Incurred ....................................... Commis s ions ............................................ Manag ement Expens es .......................... Shareholders ' Funds ............................... A s s ets ....................................................... Liabilities .................................................. Inv es tments ............................................. 2013 2014 2015 2016 KS h Million 2017* 86,656 63,241 58,508 33,442 3,785 17,034 50,290 128,968 78,678 81,929 101,297 74,023 70,208 41,895 4,877 20,967 61,582 146,174 84,593 100,827 112,134 82,986 79,578 49,131 5,986 24,531 65,984 163,977 97,992 111,067 121,674 89,213 86,148 53,701 6,718 26,120 67,018 172,809 105,792 113,637 124,709 87,552 90,044 54,861 6,819 27,808 70,397 179,023 108,626 117,483 11,021 10,629 9,947 5,051 2,920 870 15,966 26,945 10,979 21,206 14,752 14,160 13,117 7,521 3,833 1,192 20,030 33,238 13,208 26,276 16,357 15,728 15,000 8,616 4,186 1,615 21,800 36,220 14,420 28,306 15,267 14,498 14,846 7,993 4,167 1,522 23,369 38,069 14,701 29,243 17,494 16,778 15,931 9,218 4,560 1,900 26,640 42,290 15,650 32,763 Source: Insurance Regulatory A uthority * Prov isional Capital Markets Developments in the financial 4.23. In 2017, the Capital Markets Authority (CMA) published a Policy Guidance Note to sector facilitate the issuance, listing and trading of Global Depository Receipts and Notes. This is expected to raise the country’s profile as an attractive investment destination by providing opportunities for international investors. Pensions 4.24. In 2017, there were 21 fund managers, 30 administrators and 11 custodians registered by the Retirement Benefits Authority (RBA) to offer services to registered pension schemes. The retirement benefit assets grew by 5.2 per cent to KSh 963.0 billion in June 2017 from KSh 831.8 billion in June 2016. Insurance 4.25. Policy initiatives advanced in 2017 include the Area Yield Index Insurance (AYII) and the Kenya Livestock Insurance Projects (KLIP). These products are meant to cushion farmers from unpredictable losses due to weather changes and disease outbreak. Savings and Credit Cooperative Societies (SACCOs) 4.26. The Finance Act, 2017 amended the Cooperatives Societies Act and Sacco Societies Act, which recognized and introduced Islamic finance business practices and services in the societies. These changes take effect from 1st January 2018. 73 Economic Survey 2018 Chapter 05 Public Finance Overview National overnment T he 2017/18 budget was guided by the Government’s focus on establishing a sustainable fiscal position through a prudent course of fiscal consolidation and debt stabilization. The fiscal policy was aimed at enhancing revenue mobilization, re-orientation of public expenditure composition towards productive capital spending and priority commitments, and the gradual reduction of non-priority expenditures. The budgetary resource allocation prioritized spending on programmes aligned to the Government’s economic transformation agenda. 5.2. Overall Fiscal Results: In 2017/18, National Government expenditure is expected to reach KSh 2,777.8 billion, an increase of 21.7 per cent, from an actual expenditure of KSh 2,283.0 billion in 2016/17. Recurrent and development expenditure are estimated at KSh 2,107.2 billion and KSh 670.6 billion respectively, during the review period. Total revenue is expected to grow by 19.6 per cent to KSh 1,710.2 billion in 2017/18. Ordinary revenue is expected to grow by 17.6 per cent to KSh 1,651.0 billion, of which tax revenue is estimated at KSh 1,466.2 billion. The total stock of public debt stood at KSh 3,971.4 billion as at end of June 2017, of which external debt position accounted for 57.8 per cent. In 2017/18, a total of KSh 623.1 billion is estimated to be spent on public debt servicing. 5.3. County governments budgeted KSh 395.9 billion, against an estimated total revenue of KSh 401.6 billion, during the review period. Current transfers from National Government to county governments, inclusive of conditional grants, is estimated to increase by 14.4 per cent to KSh 345.7 billion. 5.4. Details of the statement of operations for the National Government for the period 2013/14 to 2017/18 are given in Table 5.1. In 2017/18, total revenue is expected to grow by 19.6 per cent to KSh 1,710.2 billion. Over the same period, the expense is estimated to grow by 19.7 per cent to KSh 2,174.1 billion. Spending on acquisition of non-financial assets, less disposals, is expected to decline by 15.1 per cent to KSh 190.0 billion in the review period. Gross operating balance, is estimated to widen by 20.0 per cent to a deficit of KSh 463.9 billion in 2017/18. Similarly, net borrowing balance is estimated to expand by 7.1 per cent to a deficit of KSh 654.0 billion, over the same period. Similarly, net borrowing balance is estimated to expand by 7.1 per cent to a deficit of KSh 654.0 billion. 74 Chapter 5: Public Finance Table 5.1: Statement of National Government Operations, 2013/14 - 2017/18 KSh Million 2013/14 1,001,374.83 .. 1. Revenue1 .. .. .. .. .. .. …………………………….. 2. Expense .... .. .. .. .. .. .. .. .. …………………….. 1,173,854.87 2.1 Current Expenditure .. .. .. …………………....1,004,233.89 .. .. 2.2 Capital Transfers .. .. .. .. .. ……………………….... 169,620.98 .. 3. Gross Operating Balance (1-2) …....….... .. .... - ..172,480.04 ….... .. - 2014/15 2015/16 2016/17* 2017/18 + 1,141,155.05 1,265,441.90 1,429,595.63 1,710,234.99 1,363,664.25 1,178,256.45 185,407.80 222,509.20 - 1,591,959.31 1,372,253.58 219,705.73 326,517.42 - 1,816,187.99 1,462,394.12 353,793.87 386,592.36 - 2,174,149.32 1,828,255.53 345,893.79 463,914.33 312,101.47 135,008.60 4. Acquisition of Non-Financial Assets(net)2…………… 5. Net lending/Borrowing (3-4)…………………….. - 307,488.64 - 534,610.67 FINANCING (6-7)………………………………….. - 354,083.37 - 552,127.81 6. Net Acquisition of financial assets ………….…………… 21,189.02 55,045.81 6.1. Domestic……………………………………….. 21,189.02 55,045.81 6.2. External………………………………………………………..… 7. Net Incurrence of liabilities ……………………………………..…………… 332,894.35 607,173.62 165,338.55 127,892.59 7.1. Domestic………………………………………..……………….. 7.2. Foreign………………………………………….……………….. 167,555.79 479,281.03 MEMORANDUM ITEMS: 8. Public debt redemption…………………………….213,953.00 232,950.71 8.1. External .. .. .. .. ………………………………….. 85,253.00 82,949.81 8.2. Internal .. .. .. .. ………………………………….. 128,700.00 150,000.90 174,078.54 223,827.45 500,595.96 482,422.88 180,977.17 180,977.17 663,400.05 358,414.55 304,985.50 610,419.81 618,002.94 43,894.49 43,894.49 661,897.43 276,152.79 385,744.64 222,896.68 35,633.36 187,263.32 216,943.22 44,839.00 172,104.23 190,049.70 653,964.03 527,041.71 26,351.00 26,351.00 553,392.71 222,311.76 331,080.94 342,332.24 150,334.29 191,997.95 * Provisional + Revised Budget estimates 1 includes grants 2 Acquisition of non financial assets(net) equals acquisition of non financial assets minus gross disposal of non financial assets 5.5. Table 5.2 presents the key fiscal ratios from 2013/14 to 2017/18. Gross operating balance as a percentage of revenue is estimated to worsen to negative 27.13 in 2017/18 from negative 27.04 in 2016/17, while it is expected to worsen significantly as a percentage of net acquisition of non-financial assets in the review period. In 2017/18, net borrowing position is estimated to register marginal improvement, as a percentage of both revenue and total expenditure. The ratio of net short-term borrowing to acquisition of non-financial assets is estimated to improve in the review period. The net borrowing to GDP ratio is estimated to worsen to negative 8.4 in the review period. Table 5.2: Analysis of Key Fiscal Ratios, 2013/14 - 2017/18 2013/14 2014/15 2015/16 2016/17* 2017/18 + Gross operating balance as a % of Revenue ………. -17.22 -19.50 -26.04 -27.04 -27.13 Gross operating balance as a % of Acquisition of -127.75 -71.29 -188.94 -172.72 -244.10 Non financial assets (net) ………………. Ratio of Acquisition of Non financial assets (net) 13.44 26.49 12.69 15.31 10.40 to Current Expenditure …………….. Net lending/Borrowing as % of Revenue ………… -30.71 -46.85 -39.82 -42.70 -38.24 Net lending/Borrowing as % of Total Expenditure -20.10 -27.74 -24.80 -26.83 -23.93 External Grants and Loans as % of Acquisition of 117.89 104.03 192.20 183.91 205.38 Non financial assets (net) …………….. Net Short-Term Borrowing as % of Acquisition of -0.64 4.10 143.50 47.79 32.97 nonfinancial assets (net) ……………… Revenue as % of GDP at Current Market Prices …. 19.85 19.60 18.78 19.13 22.07 Total Government Expenditure as % of GDP at 30.39 33.56 30.38 30.55 35.85 Current Market Prices …………………… Net lending/Borrowing as % of GDP at Current -6.10 -9.18 -7.43 -8.17 -8.44 Market Prices …………………. *Provisional + Revised Budget estimates 75 Economic Survey 2018 5.6. The comparison of National Government budgetary estimates and the actual out-turns from 2014/15 to 2016/17, and revised budget estimates for 2017/18, are presented in Table 5.3. In 2016/17, actual revenue collected was 92.7 per cent of the targeted amount of KSh 1,515.0 billion. The absorption of recurrent expenditure was 95.5 per cent of the budgeted amount in 2016/17, while that of development expenditure was 82.2 per cent. Over the same period, 86.2 per cent of the budgeted external financing was realized. Table 5.3: Comparison of National Government Budget Estimates with Actual Out-turns, 2014/15 2017/18 Budget Total Ordinary Revenue .. .. .. .. .. ………….... 1,170,529.35 .. 2014/15 Actual Difference 1,113,037.56 -57,491.79 Budget 1,299,912.13 KSh Million 2015/16 Actual Difference 1,235,845.21 -64,066.92 Recurrent Expenditure1 .. .. .. .. .. …………. 1,411,158.86 Recurrent Balance .. .. .. .. .. .. .. ……………-7,678.80 Development Expenditure ……………….. 684,360.29 1,381,044.87 -268,007.31 572,464.57 -30,113.99 -260,328.51 -111,895.72 1,583,822.92 -61,014.11 682,983.39 1,564,285.53 -328,440.32 483,066.22 -19,537.39 -267,426.21 -199,917.17 External Financing (Net)2 .. .. ………….. ..368,316.00 Balance for Domestic Financing (Net)……..-323,723.09 507,398.52 -333,073.36 139,082.52 -9,350.27 484,983.00 -259,014.50 334,582.19 -476,924.35 -150,400.81 -217,909.85 Budget Total Ordinary Revenue .. .. .. .. .. ………….... 1,514,988.77 .. Actual Difference 1,403,691.64 -111,297.12 2017/18 + Printed Revised Difference Budget Budget 1,704,503.02 1,650,989.40 -53,513.63 Recurrent Expenditure1 .. .. .. .. .. …………. 1,734,402.94 Recurrent Balance .. .. .. .. .. .. .. …………… -219,414.18 Development Expenditure ……………….. 761,705.00 1,657,215.49 -253,523.85 625,780.13 -77,187.45 -34,109.68 -135,924.87 1,697,960.80 6,542.22 640,295.24 2,107,177.12 -456,187.72 670,621.48 409,216.31 -462,729.94 30,326.24 External Financing2 (Net) .. .. ………….. ..477,762.82 Balance for Domestic Financing (Net)……..-503,356.35 411,648.62 -467,655.36 -66,114.19 35,701.00 314,774.47 -318,978.56 390,326.54 -736,482.66 75,552.07 -417,504.11 2016/17* Source: The National Treasury * Provisional + Revised budget estimates 1 Recurrent expenditure consists of current expenditure , acquisition of non financial assets (net), Consolidated Fund Services and current transfers to county governments 2 Includes external grants 5.7. Table 5.4 details the National Government’s gross receipts on the recurrent account from 2013/14 to 2017/18. Total ordinary revenue is estimated to grow by 17.6 per cent to KSh 1,651.0 billion in 2017/18. Total tax revenue is estimated to increase by 14.8 per cent to KSh 1,466.2 billion, over the same period. In 2017/18, Income tax and Value Added Tax (VAT) are estimated to grow by 15.4 per cent and 14.6 per cent, to KSh 724.0 billion and KSh 388.7 billion, respectively. Tax collection on Income Tax and VAT categories are expected to account for 49.4 per cent and 26.5 per cent of the total tax revenue, respectively, in the review period. The non-tax revenue is expected to account for 11.2 per cent of the total ordinary revenue in 2017/18. The government implemented the Finance Act, 2017 as from 1st January 2018, to provide for clear regulations on administration of Income Tax. The Act is expected to enhance tax revenue yields and compliance. 76 Chapter 5: Public Finance Table 5.4: National Government Gross Receipts on the Recurrent Account, 2013/14 - 2017/18 KSh Million 2013/14 2014/15 2015/16 2016/17* 2017/18 + Taxes on income, profits and capital gains………….. 449,590.07 509,159.84 569,811.18 627,469.00 723,953.07 Income tax from individuals (P.A.Y.E) .. .. …………... .. .. ……. 249,872.80 279,795.65 286,166.16 336,596.00 387,950.88 Income tax from corporations (other income tax) .. .. .. ………199,717.27 228,785.25 279,834.49 288,454.00 331,183.29 Capital gains taxes……………………………………….. .. 578.95 3,810.54 2,419.00 4,818.90 Taxes on property .. .. .. .. .. .. .. .. .. .. .. ………………………. 88.26 112.97 Tax on property 88.26 112.97 Value Added Tax (VAT) ………………………………………… 232,630.32 259,685.20 289,213.47 339,033.92 388,697.59 VAT on domestic goods and services .. .. .. .. .. ………….... .. ..107,737.35 127,904.57 160,389.01 194,233.86 219,959.67 VAT on imported goods and services .. . .. .. .. .. .. ………………. 124,892.97 131,780.63 128,824.45 144,800.06 168,737.91 Taxes on other goods and services…………………………… 125,363.91 140,243.32 162,593.81 188,971.60 210,076.23 Excise taxes .. .. .. .. .. .. .. .. ……………………………………….. 102,029.10 115,871.72 139,540.34 165,473.91 183,661.37 Taxes on use of goods and on permission to use the goods 4,910.49 4,650.51 5,780.10 4,594.68 5,245.86 or to perform services and activities .. .. Taxes on goods and services collected as AIA ……………….. 18,424.32 19,721.08 17,273.37 18,903.00 21,169.00 Taxes on international trade transactions………………… 94,232.51 101,040.90 104,433.27 112,890.05 128,589.38 Custom duties .. .. .. .. .. .. .. .. ………………………………… 67,554.64 74,047.72 79,187.93 89,943.34 102,390.55 Other taxes on international trade and transactions .. ………... 26,677.87 26,993.18 25,245.33 22,946.71 26,198.83 Other taxes not elsewhere classified . .. .. .. .. …………….. 9,986.89 11,467.76 10,423.54 8,595.58 14,813.79 TOTAL TAX REVENUE……………………………………. 911,803.70 1,021,597.03 1,136,563.52 1,276,960.14 1,466,243.01 Social security contributions .. .. …………………………... .. .. 203.85 871.04 461.91 485.00 167.81 Property income .. .. .. .. .. ……………………………………… 10,767.53 15,290.28 21,324.81 31,112.40 25,142.83 Sale of goods and services .. .. .. .. ………………………………2,678.84 6,158.28 6,022.75 10,763.79 12,289.28 Fines penalties and forfeitures .. …………………………..... .. 1,442.62 2,490.95 2,278.34 1,518.21 2,733.38 Repayments from domestic lending and on-lending…………. ..1,618.36 2,897.37 2,389.30 2,628.80 3,808.81 Ministerial Appropriation in Aid………. .... ………………….35,707.06 56,705.93 62,398.11 75,881.13 135,646.70 Other receipts not elsewhere classified .. .. .. .. ………………….10,195.77 7,026.70 4,406.48 4,342.17 4,957.56 TOTAL NON-TAX REVENUE……………………………………… 62,614.02 91,440.53 99,281.70 126,731.50 184,746.38 TOTAL ORDINARY REVENUE…………………………………… 974,417.72 1,113,037.56 1,235,845.21 1,403,691.64 1,650,989.40 Source: The National Treasury * Provisional + Revised budget estimates P.A.Y.E - Pay As You Earn AIA- Appropriation in Aid 5.8. The details of import duty levied on selected categories of commodities from 2013 to 2017 are shown in Table 5.5. In 2017, the import duty collected on selected categories of commodities grew by 5.9 per cent to KSh 84.2 billion. In the same period, the import duty collected from food drinks and tobacco registered a growth of 30.4 per cent to KSh 24.2 billion, while transport equipment category registered a growth of 2.1 per cent. Import duty collected from machinery and metals categories declined by 6.3 per cent and 25.7 per cent, respectively, during the review period. 77 Economic Survey 2018 Table 5.5: Import Duty Collections on Selected Categories of Commodities, 2013 - 2017 KSh Million 2013 2014 2015 2016 2017* 24,184.56 End-Use Category Food, drinks and tobacco ................................ 11,207.96 13,823.42 16,163.83 18,540.89 Bas ic materials .................................................. 2,887.86 3,312.82 3,710.74 5,203.49 5,241.91 Fuels .................................................................... 1,017.90 1,338.13 1,413.23 1,195.70 1,380.31 Chemicals ............................................................ 2,779.13 3,508.57 3,970.02 3,862.54 4,049.70 Textiles ................................................................ 1,607.42 1,814.36 1,638.48 2,288.59 2,652.28 Semi-manufactures 1 ………………………………………….. 4,412.02 4,615.17 4,772.37 4,994.29 5,126.57 Metals ................................................................ 3,679.55 5,116.45 5,315.61 8,594.05 6,385.71 Trans port Equipment ....................................... 15,148.74 17,576.28 19,310.19 16,252.85 16,597.56 Machinery ......................................................... 6,428.76 7,123.38 6,934.12 9,319.10 8,736.48 Mis cellaneous commodities ........................... TOTAL 6,062.88 7,179.58 7,924.10 9,246.60 9,833.76 55,232.22 65,408.16 71,152.69 79,498.09 84,188.84 Source: Keny a Rev enue A uthority * Prov isional 1 Ex cludes non-metallic mineral manuf actures 5.9. The excise revenue collected from domestically manufactured commodities and services from 2013 to 2017 is presented in Table 5.6. The excise revenue collected from domestically manufactured commodities and services amounted to KSh 82.8 billion in 2017, a growth of 3.1 per cent. Excise revenue from beer and cigarettes grew by 1.6 per cent and 4.9 per cent, respectively in 2017. Similarly, excise revenue from airtime and financial transactions registered growths of 3.8 per cent and 21.1 per cent, respectively. In the same period, excise revenue from the wines and spirits category declined by 17.9 per cent to KSh 8.8 billion. Table 5.6: Excise Revenue Levied on Commodities and Services1 , 2013 - 2017 Beer ....................................................... Wines and Spirits ................................... Mineral Water, Soft Drinks and Juices ... Cigarettes .............................................. Airtime .................................................. Financial Transactions .......................... 2013 16,886.17 3,036.86 2,252.14 10,199.78 - 2014 18,996.80 4,638.32 2,474.05 10,281.88 - 2015 19,525.74 6,148.36 2,514.64 12,230.19 14,138.80 7,222.07 2016 24,443.46 10,681.38 3,318.56 12,440.94 15,540.89 11,312.92 Other commodities2 .. … … …. … … …. … … 787.01 2,719.59 902.15 2,642.24 … .. … … …. … … …. … …… TOTAL ................................................. 33,161.96 36,881.95 62,681.94 80,380.39 KSh Million 2017* 24,842.54 8,772.87 3,464.11 13,052.09 16,129.29 13,701.09 2,881.04 82,843.03 Source: Kenya Revenue Authority * Provisional 1 Domestically manufactured commodities and services 2 Includes revenue from jewelry, cosmetics and locally assembled vehicles 5.10. Table 5.7 shows the financing of investment in non-financial assets by the National Government from 2013/14 to 2017/18. In 2017/18, external loan disbursements are expected to reach KSh 331.1 billion, a decline of 14.2 per cent. External grants disbursements are estimated to more than double to KSh 59.2 billion in the review period. The long-term and short-term domestic borrowing declined by 23.0 per cent to KSh 276.2 billion in 2016/17. Long-term and short-term domestic borrowing is expected to reach KSh 159.7 billion and KSh 62.7 billion, respectively in 2017/18. 78 Chapter 5: Public Finance Table 5.7: National Government Financing of Non-Financial Assets, 2013/14 - 2017/18 KSh Million 2013/14 2014/15 2015/16 EXPENDITURE: A cquis ition of Non financial A s s ets (Net)…………………….. 135,008.60 312,101.47 174,078.54 TOTAL 135,008.60 312,101.47 174,078.54 FINANCING: 359,851.45 635,291.11 692,996.73 External Grants .. .. .. .. .. ………………….. 26,957.11 28,117.49 29,596.68 LONG TERM BORROW ING: 333,764.46 594,392.31 413,598.42 External Borrowing ..………………….. .. .. …………………….. 167,555.79 479,281.03 304,985.50 Long -Term Domes tic Borrowing (Net)….…………………... 166,208.66 115,111.28 108,612.91 S HORT TERM BORROW ING: -870.11 12,781.31 249,801.64 Treas ury Bills (Net) .…………………...………………….. 32,811.90 .. .. .. ………………. 12,947.02 242,092.15 Other Short-Term Borrowing (Net) …………………………... -33,682.01 -165.71 7,709.49 1 CHA NGE IN CA SH BA LA NCES : Increas e=(-)…………………………….. -224,842.85 -323,189.64 TOTAL 135,008.60 312,101.47 -518,918.19 174,078.54 + 2016/17* 2017/18 223,827.45 223,827.45 687,801.41 25,903.99 554,928.58 385,744.64 169,183.95 106,968.84 151,172.51 -44,203.67 190,049.70 190,049.70 612,638.30 59,245.59 490,734.25 331,080.94 159,653.30 62,658.46 16,450.61 46,207.85 -463,973.97 223,827.45 -422,588.60 190,049.70 S ou rce : The National Treasury and Central Bank of Keny a * P rov isional. + 1 Rev ised Budget Estimates Balancing item 5.11. Table 5.8 presents National Government expenditure classified by functions from 2014/15 to 2017/18. Total expenditure is expected to grow by 21.7 per cent to KSh 2,777.8 billion in 2017/18. Recurrent and development outlays are estimated to grow by 27.2 per cent and 7.2 per cent, to KSh 2,107.2 billion and KSh 670.6 billion, respectively. Expenditure on economic affairs is expected to decline by 1.2 per cent to KSh 481.0 billion. This is mainly attributable to reduced budget allocation to transport and general economic affairs functions, by 6.3 per cent and 15.2 per cent, respectively. Budgetary outlays on public order and safety, and fuel and energy are estimated to increase by 13.3 per cent and 20.7 per cent, to KSh 154.4 billion and KSh 100.3 billion, respectively. The design of the budget reflects the government’s fiscal policy stance towards fiscal consolidation and reorientation of public expenditure composition, which aims at prioritizing capital spending and gradual reduction of non-priority expenditures. 5.12. Outlay on public debt transactions in 2017/18 is estimated at KSh 623.1 billion and accounts for 22.4 per cent of the total budgeted expenditure. Current transfers to county governments, inclusive of conditional grants, is estimated at KSh 345.7 billion, translating to 12.4 per cent of the total expenditure during the review period. Spending on education and general public services for the same period are estimated to grow by 27.6 per cent and 46.8 per cent, respectively. The expenditure on social protection is estimated to grow by 27.5 per cent to KSh 106.9 billion geared towards improving the welfare of the vulnerable groups. 79 80 Revised estimates 572,464.57 1,953,509.44 Total in this Table vary with that in Table 5.9 by disposal of non financial assets and disposal of financial assets 1 + Source: The National Treasury * Provisional TOTAL OUTLAYS1 .. .. .. .. .. …………………1,381,044.87 1,564,285.53 483,066.22 2,047,351.75 2014/15 2015/16 Recurrent Development Total Recurrent Development Total General public services ………………………..………………………………… 94,317.30 37,822.98 .. ……………………………. 132,140.28 143,067.52 73,842.45 216,909.96 Public debt transactions .. .. .. ………………………………………………… 400,323.71 - .. …………………………….……. 400,323.71 438,225.22 438,225.22 Transfers of general character betw. levels of govt. 229,263.65 229,263.65 264,038.64 264,038.64 Defense .. .. ……………………………………..………………………………… 97,922.50 .. ……………………………. 97,922.50 140,588.80 140,588.80 Public order and safety .. .. .. …………………….. ………………………………… 130,774.44 11,020.28 .. ……………………………. 141,794.72 110,563.98 15,709.62 126,273.60 59,226.58 385,137.49 .. ……………………………. 444,364.07 63,523.49 305,979.93 369,503.41 Economic affairs ……………………………….………………………………… General economic, commercial & labour affairs….. 5,960.57 25,625.29 31,585.87 12,068.92 50,016.94 62,085.86 16,490.69 33,951.54 50,442.23 9,956.39 21,587.48 31,543.87 Agriculture, forestry, fishing, and hunting .. .. …….………………………………… .. ……………………………. Fuel and energy .. .. .. …………………………….………………………………… 2,016.40 62,673.56 .. ……………………………. 64,689.96 1,707.49 71,506.88 73,214.37 Mining, manufacturing and construction .. .. .. ………………………………… 747.72 1,097.12 .. …………………………….…… 1,844.84 688.50 531.89 1,220.39 Transport .. .. .. ………………………………….………………………………… 26,326.48 253,691.54 ..280,018.03 …………………………….. 35,423.80 146,140.05 181,563.85 Communication .. .. .. ……………………………..……………………… 2,436.71 5,389.04 .. ……………………………. 7,825.75 2,126.28 12,317.40 14,443.68 Other industries………………………………… .. ……………………………. 5,248.00 2,709.39 7,957.40 1,552.11 3,879.29 5,431.40 Environmental protection .. .. .. .. …………………. 10,228.61 7,005.85 17,234.46 13,622.27 4,482.70 18,104.97 Housing and community amenities .. ………….. .. .. 3,786.11 71,463.92 75,250.03 5,887.59 37,296.89 43,184.48 Health ………………………………………………………………………………… 28,307.73 21,473.95 49,781.69 19,504.30 15,150.34 34,654.64 Outpatient services .. .. .. ………………………..……………………….. 1,531.53 5,251.48 6,783.01 1,464.21 4,978.63 6,442.84 Hospital services .. .. .. …………………………..……………………….. 13,766.20 802.00 14,568.20 11,897.10 5,476.58 17,373.68 Public health services .. .. .. ……………………………………………….. 3,651.59 6,967.62 10,619.21 1,723.59 4,428.18 6,151.78 Health expenditure not elsewhere classified .... .. ..……………………….. 9,358.42 8,452.85 17,811.27 4,419.39 266.95 4,686.34 Recreation, culture and religion .. .. .. ……………… 2,580.50 1,379.01 3,959.50 4,361.86 2,221.45 6,583.31 Education……………………………………..……………………….. 281,802.51 22,446.22 304,248.74 298,768.91 14,608.41 313,377.32 Administration …………………………………………………………..……………………….. 16,063.46 6,732.61 22,796.07 11,236.48 2,735.11 13,971.58 Pre-primary and primary education .. .. .. .. …………..………………………..………………………………… 113,348.52 691.53 114,040.05 117,839.24 .. ……………………………. 754.03 118,593.27 Secondary education .. .. .. ………………………..……………………….. 84,947.43 2,242.17 87,189.60 96,680.34 1,523.93 98,204.28 Tertiary education .. .. .. ………………………….………………………..……………………….. 65,783.00 12,599.52 78,382.52 70,526.79 5,271.38 75,798.18 1,660.10 180.40 1,840.50 2,486.05 4,323.96 6,810.02 Education expenditure not elsewhere classified… .. …………………………….………………………………… .. ……………………………. Social protection .. .. .. ……………………………. .. ……………………………. 42,511.22 14,714.86 57,226.09 62,132.96 13,774.43 75,907.39 1,657,215.49 Recurrent 145,684.37 450,654.10 302,198.52 129,207.21 118,800.70 86,556.53 14,252.94 19,624.08 2,179.19 622.59 44,345.30 4,099.25 1,433.17 8,238.41 7,026.65 29,806.89 1,308.66 13,159.55 6,365.65 8,973.02 6,423.00 302,428.82 13,676.43 134,792.90 88,032.82 65,042.47 884.20 70,190.30 Table 5.8: National Government Expenditure Classification by Functions of Government, 2014/15-2017/18 625,780.13 2016/17* Development 83,510.92 17,431.71 400,242.51 8,386.24 20,718.25 80,950.85 930.00 260,420.78 25,613.25 3,223.14 3,065.47 55,524.63 26,799.07 10,319.44 5,725.14 5,103.20 5,651.28 2,503.84 23,048.12 307.69 2,276.91 5,031.64 15,403.77 28.11 13,653.85 2,282,995.62 Total 229,195.29 450,654.10 302,198.52 129,207.21 136,232.41 486,799.04 22,639.18 40,342.33 83,130.04 1,552.58 304,766.08 29,712.50 4,656.32 11,303.88 62,551.28 56,605.96 11,628.10 18,884.69 11,468.85 14,624.31 8,926.84 325,476.95 13,984.12 137,069.81 93,064.46 80,446.24 912.31 83,844.15 2,107,177.12 670,621.48 2017/18 + Recurrent Development 223,997.72 112,416.60 623,052.04 345,681.02 135,060.38 134,414.72 19,973.46 104,887.72 376,159.02 11,013.99 8,173.78 23,968.36 28,548.56 2,316.09 98,014.97 1,117.02 1,560.57 60,446.24 225,271.16 3,071.45 13,609.73 2,954.56 980.25 14,870.77 5,194.87 11,394.90 72,719.11 29,785.02 35,768.74 811.63 8,412.43 15,139.27 1,538.02 7,211.27 23,603.39 6,622.85 2,214.91 6,573.57 3,591.25 385,265.12 30,129.95 18,157.34 251.39 160,474.33 4,912.69 100,320.90 2,815.82 103,171.81 21,982.15 3,140.75 167.90 92,194.13 14,668.48 2,777,798.60 Total 336,414.32 623,052.04 345,681.02 135,060.38 154,388.18 481,046.74 19,187.77 52,516.93 100,331.06 2,677.59 285,717.40 16,681.18 3,934.81 20,065.64 84,114.02 65,553.76 9,224.06 16,677.29 30,814.65 8,837.75 10,164.82 415,395.07 18,408.73 165,387.01 103,136.72 125,153.96 3,308.65 106,862.61 KSh Million Economic Survey 2018 Chapter 5: Public Finance 5.13. Table 5.9 details National Government expenditure by economic classification from 2013/14 to 2017/18. Total expense is estimated to reach KSh 2,174.1 billion, an increase of 19.7 per cent, in 2017/18. Collectively, compensation of employees and use of goods and services, are expected to grow by 23.5 per cent to KSh 773.8 billion in the review period. Current grants is estimated to increase by 24.9 per cent to KSh 625.2 billion. Interest payable on debt is expected to increase by 20.1 per cent to KSh 280.7 billion, which accounts for 10.3 per cent of the budget. 5.14. In the review period, KSh 190.0 billion, representing 7.0 per cent of the total budget, was earmarked to finance acquisition of non-financial assets, less disposals. Expenditure on acquisition of building and structures is expected to increase by 1.5 per cent to KSh 186.6 billion, accounting for 6.8 per cent of the total expenditure. To implement priority capital expenditure programmes, State Owned Enterprises (SOEs) are expected to receive KSh 345.9 billion as capital grants in the review period. Table 5.9: Economic Analysis of National Government Expenditure, 2013/14-2017/18 KSh Million 2013/14 2014/15 2015/16 2016/17* 2017/18 + Expense Consumption expenditure on goods and services: Compensation of employees ....................................... 338,086.80 362,713.27 410,807.04 419,797.77 507,742.55 Use of Goods and Services ............................................ 131,929.13 174,331.96 198,947.90 206,909.14 266,052.85 Total Consumption Expenditure.................. 470,015.93 537,045.23 609,754.94 626,706.91 773,795.41 Subsidies ...................................................................... 22,475.46 30,583.64 30,324.21 29,970.48 56,270.67 119,065.03 137,635.27 172,857.04 171,323.40 210,147.72 Interest: Domestic ..................................................................... External ....................................................................... 12,761.23 29,737.73 42,471.50 62,387.48 70,572.08 Total Interest................................................... 131,826.26 167,372.99 215,328.54 233,710.88 280,719.80 Current Grants: International organisations ...................................... 2,919.91 2,807.70 2,744.44 2,619.73 4,774.25 General Government units ...................................... 123,653.05 163,618.06 174,424.02 192,267.13 261,358.85 345,681.02 County Governments ............................................. 210,000.05 229,263.65 264,038.64 302,198.52 Other Grants ............................................................ 9,375.04 10,108.08 10,398.21 3,517.27 13,354.25 Total Current Grants...................................... 345,948.04 405,797.48 451,605.31 500,602.65 625,168.37 Social benefits ............................................................ 29,221.49 33,704.74 58,120.99 66,755.73 81,475.06 Other expense ............................................................. 4,746.71 3,752.36 7,119.59 4,647.47 10,826.22 Total Current Expenditure Capital Grants (Transfers)......................................... 1,004,233.89 1,178,256.45 1,372,253.58 1,462,394.12 1,828,255.53 169,620.98 185,407.80 219,705.73 353,793.87 345,893.79 1 Total Expense ............................................................. 1,173,854.87 1,363,664.25 1,591,959.31 1,816,187.99 2,174,149.32 2 Acquisition of Non Financial Assets(net) ............... 135,008.60 312,101.47 174,078.54 223,827.45 190,049.70 Building and structures ................................................ 107,939.30 295,659.70 151,974.19 183,762.76 186,565.66 33,750.31 Machinery and equipment .......................................... 25,017.81 32,780.25 31,533.32 36,518.50 Inventories .................................................................. 3,917.78 5,714.44 1,735.19 6,294.56 8,804.98 Non- produced assets & Land ..................................... 1,113.88 1,638.40 8,005.05 5,480.32 5,845.09 Less Disposal of Non financial assets ............................ -2,980.17 -23,691.30 -19,169.21 -8,228.69 -44,916.34 3 Equity Participation and on-lending ....................... 7,196.46 18,301.32 39,248.00 17,808.26 26,351.00 4 Public Debt Redemption ........................................... 213,953.00 232,950.71 222,896.68 216,943.22 342,332.24 Total Outlays (1+2+3+4) .......................................... 1,530,012.93 1,927,017.76 2,028,182.54 2,274,766.93 2,732,882.26 Source: The National Treasury * Provisional. + Revised Budget Estimates 81 Economic Survey 2018 5.15. Details of the National Government outstanding debt by source from 2013 to 2017 are presented in Table 5.10. The total stock of public debt rose by 24.0 per cent to KSh 3,971.4 billion as at end of June 2017. External debt accounted for 57.8 per cent of the total National Government debt position. External debt grew by 27.7 per cent to stand at KSh 2,294.2 billion, while internal debt rose by 19.2 per cent to KSh 1,677.2 billion, as at end of June 2017. In bilateral debt category, stock of debt from People’s Republic of China grew by 52.8 per cent to KSh 478.6 billion, accounting for 12.1 per cent of the total National Government debt position. 5.16. In the multilateral debt category, stock of debt due from International Development Association/International Fund for Agricultural Development (IDA/IFAD) debt rose by 4.4 per cent to KSh 526.6 billion as at June, 2017. Stock of debt from African Development Bank (Af DB) grew by 10.2 per cent to KSh 197.5 billion. The outstanding debt due to commercial banks more than doubled to stand at KSh 426.7 billion as at end of June 2017. The stock of Treasury bonds and Treasury bills accounted for 33.5 per cent and 18.7 per cent respectively of the overall debt position. The Treasury bonds and bills rose by 15.6 per cent and 26.7 per cent to KSh 1,332.0 billion and KSh 744.2 billion, respectively. Table 5.10: National Government Outstanding Debt by Source, 2013 - 2017 KSh Million Outstanding as at 30th June EXTERNAL DEBT: Lending Countries: Germany................................................................. Japan....................................................................... France..................................................................... USA........................................................................ Netherlands............................................................ Denmark................................................................. Finland................................................................... China...................................................................... Belgium................................................................... Other...................................................................... Total(billateral).................................................. International Organisations: IDA/IFAD.............................................................. EEC/EIB................................................................ IMF......................................................................... ADF/AfDB............................................................. Other multilateral................................................... Total(multilateral).............................................. Commercial Banks.................................................. International Sovereign Bond................................. Suppliers' Credit...................................................... TOTAL EXTERNAL............................................ INTERNAL DEBT: Treasury Bills1 .. .. .. .. ………………… Treasury Bonds .. .. .. ………………… Non Interest bearing debts2 .. .. ………….... Others(includes stocks) .. .. .. ………... Less government deposits3 & on-lending .. .. .. … 2013 2014 2015 2016 2017* 25,042.37 86,788.50 47,397.05 4,816.04 2,599.67 1,987.79 96.64 63,123.40 7,607.22 22,048.18 261,506.86 26,571.29 84,514.51 61,579.73 4,542.27 2,701.91 1,991.76 93.59 80,858.59 8,096.36 22,907.13 293,857.14 22,558.54 79,016.83 59,032.26 4,461.92 1,960.29 1,437.14 71.43 252,039.33 6,141.68 18,337.23 445,056.63 30,935.11 94,413.95 59,371.47 4,035.13 2,349.99 1,540.67 269.38 313,127.34 7,468.84 34,838.82 548,350.69 31,669.11 91,455.62 63,262.08 3,497.23 1,752.72 1,355.76 1,711.78 478,606.83 9,938.02 39,319.32 722,568.48 328,753.29 15,769.40 73,779.44 80,728.61 8,889.77 507,920.51 58,927.52 0.00 15,207.35 843,562.24 378,282.41 20,657.26 83,282.16 102,118.16 9,056.67 593,396.67 59,545.24 175,253.80 16,451.86 1,138,504.71 418,596.27 20,624.97 86,149.90 150,229.35 9,030.22 684,630.72 5,678.32 271,258.35 16,628.21 1,423,252.24 504,490.39 21,073.19 84,847.00 179,226.58 9,204.40 798,841.56 154,346.23 278,031.05 16,628.00 1,796,197.52 526,579.50 20,399.45 77,637.37 197,490.09 22,282.33 844,388.74 426,685.45 285,207.18 15,303.14 2,294,152.98 267,693.15 744,174.06 299,406.15 914,762.09 318,928.15 1,035,706.68 587,478.70 1,152,041.17 744,154.90 1,331,975.09 28,888.76 9,860.00 28,273.00 41,886.01 26,615.00 39,194.54 25,559.00 50,391.63 24,448.76 11,131.70 -161,435.17 -205,520.00 -242,264.49 -408,389.00 -434,475.22 TOTAL INTERNAL (net) .. .. .. ….. 889,180.80 TOTAL DEBT …………………………………………… 1,732,743.04 1,078,807.25 2,217,311.96 1,178,179.89 2,601,432.13 1,407,081.50 3,203,279.02 1,677,235.21 3,971,388.20 Source: The National Treasury and Central Bank of Kenya * Provisional 1 Excludes Repo Bills 2 Pre-1997 Government Overdraft debt(Repo T-bills) 3 Government deposits in Central Bank and Commercial Banks 82 Chapter 5: Public Finance 5.17. National Government debt servicing, and receipts from interest and loan repayments from 2013 to 2017 are shown in Table 5.11. The net servicing charges, on internal and external debt, grew by 2.8 per cent to KSh 448.0 billion in 2017. In the same period, the receipts on interest and loan repayments rose by 10.0 per cent to KSh 2.6 billion. As at June 2017, net charges on external debt servicing grew by 37.3 per cent to KSh 107.2 billion, while the net domestic debt servicing charges declined by 4.7 per cent to KSh 340.8 billion. Table 5.11: National Government Debt Servicing, 2013 - 2017 KSh Million Interest and Loan Repayment Receipts Debt Servicing 2012/13........ External 45,142.66 Internal 210,553.11 Total 255,695.76 Internal 2,183.55 Net Servicing Charges External 45,142.66 Internal 208,369.56 Total 253,512.21 2013/14........ 98,014.23 247,765.03 345,779.26 1,618.36 98,014.23 246,146.67 344,160.90 2014/15........ 112,687.54 287,636.17 400,323.71 2,897.37 112,687.54 284,738.80 397,426.34 2015/16........ 78,104.86 360,120.36 438,225.22 2,389.30 78,104.86 357,731.06 435,835.92 2016/17*...... 107,226.48 343,427.63 450,654.10 2,628.80 107,226.48 340,798.83 448,025.30 Source: The National Treasury * Provisional 5.18. Table 5.12 shows the ratio of National Government external public debt servicing charges to earnings from export of goods and services from 2013 to 2017. The ratio of external debt servicing charges to foreign exchange earnings from exports of goods and services is an indicator of the economy’s ability to service external debt. In 2017/18, the percentage of debt servicing charges to export earnings was 9.9 per cent compared to 7.8 per cent recorded in 2016/17. Table 5.12: National Government Debt Service Charges and Earnings from Export of Goods and Services+, 2013-2017 Debt S ervice Charges on 1 ' External Debt 2012/13...................... 2013/14...................... 2014/15...................... 2015/16...................... 2016/17* .................... KS h Million 45,142.66 98,014.23 112,687.54 78,104.86 107,226.48 Exports of Goods External debt service Charges as a Percentage of and S ervices Exports of Goods and (Calender Year) S ervices KS h Million % 945,477.64 4.8 988,521.37 9.9 1,042,699.82 10.8 1,005,109.95 7.8 1,079,589.25 9.9 * P rov isional. + 1 Rev ised Including debt redemption, howev er, interest pay ments on drawing on IMF are ex cluded. 83 Economic Survey 2018 County 5.19. Table 5.13 presents the annual county governments revenue by source for 2016/17 Governments and 2017/18. County governments revenue is estimated at KSh 401.6 billion in 2017/18, a growth of 20.0 per cent from actual receipts of KSh 334.7 billion in 2016/17. The allocations to county governments are contained in County Allocation of Revenue Act of 2017 and its subsequent amendment in 2017. County governments equitable share grant allocation grew by 7.7 per cent to KSh 302.0 billion, while conditional grants allocation are expected to more than double to KSh 43.7 billion in 2017/18. Total grants from National Government to county governments is estimated to grow by 14.4 per cent to KSh 345.7 billion during the same period. County governments targeted to collect KSh 55.9 billion as own source revenue in 2017/18, compared to KSh 32.5 billion collected in 2016/17. 84 Chapter 5: Public Finance Table 5.13: County Government revenue, 2016/17 – 2017/18+. KSh Million Equitable Share Grant County 2016/17 2017/18 + Conditional Grant 1 2016/17 2017/18 + Annual Local Revenue 2016/17 2017/18 + Total Revenue 2016/17 2017/18 + Baringo..................................... 4,791.44 4,983.00 338.14 633.20 288.52 450.00 5,418.10 6,066.20 Bomet........................................ 5,078.80 5,254.80 258.04 507.54 236.70 228.48 5,573.54 5,990.82 10,320.61 Bungoma.................................. 8,282.21 8,758.00 453.23 830.71 661.59 731.90 9,397.03 Busia........................................... 5,870.10 5,828.60 301.82 563.41 256.83 612.16 6,428.74 7,004.16 Elgeyo /Marakwet............... 3,528.85 3,624.00 276.48 424.19 97.32 160.29 3,902.65 4,208.48 Embu.......................................... 4,141.19 4,107.20 518.72 749.03 416.27 839.78 5,076.17 5,696.01 Garissa...................................... 6,227.73 6,659.10 636.79 969.82 81.96 250.00 6,946.48 7,878.92 Homa Bay................................. 6,080.19 6,523.20 352.91 658.74 144.14 209.46 6,577.24 7,391.40 Isiolo.......................................... 3,298.07 3,775.00 198.35 505.24 94.99 182.86 3,591.41 4,463.11 Kajiado...................................... 4,761.28 5,768.20 389.50 510.52 557.09 990.79 5,707.87 7,269.51 Kakamega................................. 9,612.09 9,935.80 917.92 1,227.61 443.18 952.57 10,973.20 12,115.98 Kericho..................................... 4,861.02 5,224.60 288.04 464.75 489.98 735.97 5,639.04 6,425.32 Kiambu...................................... 8,053.26 9,664.00 879.44 1,093.09 2,032.98 3,127.40 10,965.68 13,884.49 11,780.72 Kilifi........................................... 8,029.17 9,950.90 549.60 900.16 620.09 929.66 9,198.86 Kirinyaga................................. 3,817.78 4,409.20 217.80 431.32 320.64 500.00 4,356.23 5,340.52 Kisii............................................ 7,654.11 7,429.20 817.59 1,143.79 271.64 850.00 8,743.35 9,422.99 Kisumu...................................... 6,130.16 6,553.40 719.54 961.75 1,004.04 1,395.26 7,853.74 8,910.40 Kitui........................................... 7,841.48 8,652.30 443.76 840.30 315.35 702.04 8,600.59 10,194.64 Kwale......................................... 5,530.69 7,248.00 404.48 694.69 221.01 833.37 6,156.19 8,776.06 Laikipia..................................... 3,722.11 4,499.80 290.03 498.22 462.72 700.00 4,474.86 5,698.02 Lamu.......................................... 2,214.01 2,476.40 265.97 432.51 76.96 90.00 2,556.93 2,998.91 Machakos.................................. 7,303.46 7,399.00 716.87 1,033.39 1,259.30 1,557.79 9,279.63 9,990.18 Makueni................................... 6,441.35 6,825.20 309.93 728.06 216.25 450.00 6,967.53 8,003.26 Mandera................................... 9,663.32 9,739.50 364.87 815.81 55.84 231.00 10,084.02 10,786.31 Marsabit.................................... 5,599.50 6,583.60 256.05 668.84 128.73 130.00 5,984.28 7,382.44 Meru.......................................... 7,006.68 7,701.00 2,416.57 4,928.99 552.67 801.78 9,975.92 13,431.76 Migori....................................... 6,298.04 6,462.80 535.19 746.90 290.82 450.00 7,124.04 7,659.70 Mombasa.................................. 5,608.59 8,154.00 720.25 867.05 3,166.24 3,500.00 9,495.08 12,521.05 Murang'a.................................. 5,779.19 6,191.00 296.52 603.20 506.69 1,100.99 6,582.40 7,895.19 Nairobi City ........................... 14,023.51 15,402.00 964.89 3,050.07 10,929.83 20,178.00 25,918.23 38,630.07 12,898.64 Nakuru...................................... 8,757.62 9,271.40 853.50 1,127.24 1,548.29 2,500.00 11,159.42 Nandi......................................... 5,130.82 5,103.80 269.99 555.83 244.74 419.78 5,645.55 6,079.41 Narok......................................... 5,705.71 6,523.20 363.82 655.98 1,533.93 4,014.37 7,603.46 11,193.54 Nyamira.................................... 4,482.80 4,620.60 270.34 519.20 93.92 272.46 4,847.06 5,412.25 Nyandarua............................... 4,647.38 4,771.60 236.22 626.08 296.77 371.00 5,180.37 5,768.68 Nyeri......................................... 4,800.76 4,952.80 652.98 841.85 643.14 1,000.00 6,096.88 6,794.65 Samburu.................................... 3,832.96 3,805.20 212.26 596.60 187.66 301.23 4,232.87 4,703.03 Siaya........................................... 5,389.99 5,526.60 323.94 527.57 172.84 270.00 5,886.77 6,324.17 Taita/Taveta........................... 3,571.07 3,895.80 238.34 488.70 172.02 338.47 3,981.43 4,722.96 Tana River.............................. 4,299.40 5,345.40 321.55 672.81 27.42 60.00 4,648.38 6,078.21 Tharaka -Nithi........................ 3,385.47 3,684.40 236.85 497.56 78.57 179.92 3,700.90 4,361.88 Trans Nzoia............................ 5,502.55 5,647.40 282.46 603.57 217.89 600.00 6,002.90 6,850.97 Turkana.................................... 11,307.01 10,071.70 400.86 936.43 186.32 200.00 11,894.19 11,208.13 Uasin Gishu............................ 5,601.03 5,707.80 253.41 587.97 663.83 1,000.00 6,518.27 7,295.77 Vihiga........................................ 4,177.30 4,409.20 246.49 520.87 96.03 220.00 4,519.82 5,150.07 Wajir.......................................... 7,804.22 8,138.90 343.45 801.28 75.91 200.00 8,223.58 9,140.18 West Pokot.............................. 4,654.53 4,741.40 292.77 638.61 83.22 105.32 5,030.52 5,485.33 280,300.00 302,000.00 21,898.52 43,681.02 32,522.87 55,924.08 334,721.39 401,605.10 Total2 Source: County Allocation of Revenue Act 2017 and Office of the Controller of Budget + Approved Estimates 1 Includes Conditional Additional Allocations to County Governments from National Government Revenue & Conditional Additional Allocations to County Governments from Loans and Grants 2 The FY 2017/18 Total Includes Ksh 4.0 Billion allocated to County Governments as Conditional Grant Under The KDSP(Level 2) Grant.There is no Information on how it has been distributed to the respective County Governments as at the date of Print. 85 Economic Survey 2018 5.20. County governments expenditure by economic classification are shown in Table 5.1 from 2013/14 to 2017/18. In 2017/18 county governments budgeted expenditure amount to KSh 395.9 billion, a growth of 13.0 per cent from an actual expenditure of KSh 350.4 billio in 2016/17. Compensation of employees is estimated to increase by 26.5 per cent to KS 149.0 billion, accounting for 37.6 per cent of the total expenditure in 2017/18. Over the sam period, outlay on use of goods and services is expected to grow by 25.6 per cent to KSh 89. billion. Spending on acquisition of non-financial assets, is estimated at KSh 104.3 billion, o which, the building and structures category is estimated to rise by 13.3 per cent to KSh 79. billion. Table 5.14: Economic classification of County Governments Expenditure, 2013/14 - 2017/18 KSh Million 2013/14 64,262.36 51,487.67 11,407.41 1,367.28 35,353.92 895.72 Compensation of Employees......................................... Salaries ........................................................................ A llowances ................................................................ Social contbributions ............................................... Use of goods and services.............................................. Utilities , Supplies and Serv ices ............................... Printing , A dv ertis ing and Information Supplies 1,895.56 and Serv ices Rentals ........................................................................ 897.73 Communication, Supplies and Serv ices ................ 503.53 Trans portation cos ts ................................................ 6,520.28 Training Expens es .................................................... 2,413.92 Hos pitality Supplies and Serv ices .......................... 2,158.33 Ins urance.................................................................... 1,564.41 Specialis ed Materials ................................................ 4,744.72 Office and General Supplies and Serv ices and materials1,507.25 Fuel Oil and Lubricants ........................................... 1,930.10 Other Operating Expens es ....................................... 6,047.14 Routine Maintenance............................................... 4,275.24 Subs idies .......................................................................... 330.78 Interes t.............................................................................. 4,723.25 Grants ................................................................................ 6,708.38 Other expens e.................................................................. 1,971.43 Social benefits ............................................................... Acquisition of Non-financial Assets........................... 42,423.74 Building and Structures ........................................... 26,428.02 Plant and Machinery ................................................ 9,748.19 Inv entories ................................................................ Non- produced as s ets & Land............................... 6,247.53 Acquisition of Financial Assets................................... 1,912.56 Memo Item Debt repay ment and pending bills ............................ 3,711.04 Total.................................................................................. 161,397.47 + 2014/15 96,212.69 71,168.66 23,277.19 1,766.85 55,465.22 2,457.71 2015/16 114,943.30 83,398.01 28,342.60 3,202.70 67,370.85 2,984.93 2016/17* 117,767.64 87,233.99 28,673.89 1,859.76 70,879.15 2,073.12 2017/18 148,972.46 106,275.51 38,255.59 4,441.36 89,028.14 2,783.94 3,109.46 2,985.69 2,813.14 3,893.33 1,120.94 686.40 8,955.77 2,968.22 3,349.47 2,476.30 9,979.71 1,959.27 2,403.35 12,286.95 3,711.65 569.82 5,188.24 5,715.38 7,012.16 6,228.52 91,217.78 69,270.39 20,457.73 318.46 1,171.20 3,700.17 1,617.53 787.93 11,745.81 3,505.32 4,172.83 4,490.18 11,649.31 1,995.40 2,833.50 14,473.83 4,128.60 701.93 7,121.41 8,215.42 8,259.41 7,812.17 97,579.77 78,728.22 13,718.62 1,498.95 3,633.99 5,001.42 1,657.73 721.81 13,309.25 3,854.77 5,097.58 5,359.23 11,450.18 1,774.43 2,740.61 14,750.40 5,276.91 387.09 6,819.50 12,454.56 40,356.44 10,282.42 84,887.80 70,374.24 10,420.25 1,336.22 2,757.08 6,612.00 2,034.35 1,284.26 13,260.75 5,345.72 5,184.62 7,502.69 15,403.53 2,727.72 3,653.74 17,090.00 8,863.50 883.22 4,294.02 20,408.58 607.54 9,765.75 104,286.47 79,732.33 16,826.99 2,193.87 5,533.28 17,668.37 .. 271,309.98 .. 317,005.69 .. 350,446.59 .. 395,914.54 Source: The National Treasury * Prov isional. + Printed estimates 5.21. Table 5.15 details the classification of county governments expenditure by function from 2013/14 to 2017/18. Expenditure on general public services is estimated to decreas by 3.0 per cent to KSh 141.4 billion in 2017/18 accounting for 35.7 per cent of the tota expenditure. Spending on economic affairs function is expected to grow by 13.5 per cent t KSh 76.4 billion. Spending on health is estimated to grow by 35.2 per cent to KSh 95.7 billio to account for 24.2 per cent of the total budget in the review period. Expenditure on educatio is estimated to grow by 27.6 per cent to KSh 31.4 billion. 86 14 ts on Sh me .0 of .7 n 6 1 9 6 4 4 3 5 6 5 2 2 9 3 2 4 0 0 2 2 8 4 5 7 3 9 7 8 7 Chapter 5: Public Finance Table 5.15: Expenditure of County Governments Classified by Functions, 2013/14 - 2017/18 2013/14 2014/15 2015/16 2016/17* KSh Million 2017/18 + General Public Services............................... 135,187.04 136,218.19 119,555.49 145,768.03 141,350.62 Economic Affairs........................................ 11,086.63 40,167.19 67,052.61 67,319.94 76,421.22 General economic affairs...................... 1,312.91 6,286.50 18,547.94 13,331.83 16,443.34 Agriculture........................................... 2,876.45 14,199.56 11,169.44 12,963.41 18,297.70 Transport............................................. 5,930.08 18,854.74 21,404.53 38,407.28 35,636.82 Other economic Affairs........................ 967.19 826.39 15,930.70 2,617.42 6,043.36 Environmental Protection......................... 873.72 5,277.16 13,724.13 10,164.82 13,758.65 Housing and Community Ammenities..... 3,532.56 6,997.36 16,749.80 24,814.79 29,449.41 Health........................................................ 8,492.22 54,671.70 70,732.25 70,774.35 95,666.84 Recreation, Culture and Religion............... 924.64 7,849.29 6,527.41 6,454.43 7,441.71 Education................................................... 1,228.71 19,952.39 21,685.06 24,609.43 31,402.50 Social Protection........................................ 71.95 176.70 978.95 540.80 423.58 161,397.47 271,309.98 317,005.69 350,446.59 395,914.54 Total Source: The National Treasury * Provisional. + Printed estimates General 5.22. Table 5.16 details the consolidated General Government statement of operations from Government 2013/14 to 2016/17. General Government total revenue amounted to KSh 1,852.3 billion in 2016/17, of which tax revenue accounted for 69.5 per cent. Sale of goods and services, property income, and ministerial appropriation-in-aid accounted for 10.2, 3.7 and 4.1 per cent of the total revenue, respectively. Expense grew by 29.6 per cent to KSh 2,092.8 billion in 2016/17. Compensation of employees and use of goods and services accounted for 31.7 per cent and 28.9 per cent of the total expense, respectively. Interest, grants and social benefit expenses accounted for 11.7, 17.2, and 5.1 per cent, respectively of the General Government total expense. Spending on net acquisition of non-financial assets grew by 55.6 per cent to KSh 630.6 billion in 2016/17. General Government net borrowing position rose to KSh 871.1 billion, attributable to the significant increase in the spending on acquisition of non-financial assets. 4 ns, se al to on on 87 Economic Survey 2018 Table 5.16: General Government Consolidated Statement of Operations, 2013/14 – 2016/17 2013/14 Revenue........................................................ 1,225,962.31 Tax revenue................................................. 911,803.70 Social contributions..................................... 18,641.02 Grants: International organisation....................... 26,957.11 Other revenue.............................................. 268,560.49 Sale of Goods & Services............................ 115,138.26 Property income....................................... 26,732.09 Ministerial AIA......................................... 35,707.06 Fines, Penalties &Forfeits......................... 42,937.85 Other transfers NEC................................ 48,045.23 Expense 1,138,323.36 Compensation of employees....................... 502,780.39 Use of goods and services.............................. 315,788.63 CFC/Depreciation..................................... 10,586.23 Interest........................................................ 136,549.51 Subsidies...................................................... 22,806.24 Grants: International Organisation...................... 2,919.91 Other General Government..................... 110,059.16 Social benefits.............................................. 29,621.71 Other expense.............................................. 7,211.58 Net Operating Balance 87,638.95 Acquisition of Non-Financial Assets....... 332,831.65 Building and Structures............................... 277,905.47 Machinery and equipment .......................... 25,241.26 Inventories.................................................. 4,927.51 Non-produced Assets and Land................... 27,737.59 Disposal of non-financial assets.................... -2,980.17 Net lending/Borrowing............................. -245,192.70 Net Financial Worth................................... -231,391.88 Transactions in Financial assets .............. 103,254.34 Currency and deposits................................. 18,991.13 Debt securities............................................. -4,435.56 Loans........................................................... 50,462.99 Equity and investment fund shares .............. 69,576.36 Accounts receivable ..................................... -31,340.58 Transactions in Liabilities ........................ 334,646.21 Debt securities............................................. 200,690.15 Domestic............................................... 165,338.55 Foreign.................................................. 35,351.60 Loans........................................................... 143,800.77 Equity and investment fund shares .............. 0.00 Accounts payable ........................................ -9,844.71 *Provisional 88 2014/15 1,396,517.75 1,021,597.03 24,327.98 2015/16 1,512,511.60 1,146,919.50 41,551.71 KSh Million 2016/17* 1,852,314.93 1,286,570.08 40,229.48 28,117.49 322,475.25 130,735.55 36,115.03 56,705.93 47,223.77 51,694.96 1,374,151.43 565,049.02 385,918.19 12,553.52 173,186.76 31,153.46 29,596.68 294,443.71 119,079.23 45,873.89 62,398.11 12,443.68 54,648.79 1,615,033.25 622,268.55 415,166.74 13,914.36 225,287.27 42,568.02 25,903.99 499,611.39 188,998.66 69,129.44 75,881.13 120,959.95 44,642.20 2,092,767.13 662,755.98 603,833.68 17,316.18 244,399.66 30,357.58 2,807.70 145,439.43 46,681.82 11,361.54 22,366.32 545,267.39 477,866.97 62,972.48 9,806.33 18,312.92 -23,691.30 -522,901.08 -515,293.04 84,156.71 37,385.83 9,271.23 30,636.93 859.40 6,003.32 599,449.75 310,666.87 127,892.59 182,706.78 304,943.23 0.00 -16,160.35 2,744.44 188,534.89 87,974.91 16,574.08 -102,521.65 405,355.54 353,524.46 46,433.17 6,185.47 18,381.65 -19,169.21 -507,877.19 -436,194.06 264,618.14 189,861.24 21,484.01 41,784.49 -5.88 11,494.28 700,812.20 350,705.06 350,705.06 0.00 322,550.71 0.00 27,556.43 2,619.73 358,176.38 105,772.67 67,535.26 -240,452.20 630,618.77 395,147.32 71,308.81 4,966.99 167,424.35 -8,228.69 -871,070.97 -685,213.76 217,011.06 97,284.15 9,351.67 25,289.28 24,650.21 60,435.74 902,224.82 320,356.46 320,356.46 0.00 500,233.55 33,321.86 48,312.95 Chapter 6: International Trade and Balance of Payments International Trade and Balance of Payments Overview Chapter 06 D uring the review period, the Government launched a National Trade Policy, aimed at spurring economic growth. The policy targets to enhance export growth through value addition in export oriented manufactures and in the services sector, as well as pursuing diversification to fully exploit the export opportunities in the emerging markets. Consequently, a Trade Remedies Bill was developed and approved by Parliament, and assented into law, by the President. The implementation of the law will address unfair trade practices from imports which adversely affects the Country’s domestic industries, and widens the trade deficit. 6.2. In 2017, merchandise trade deficit continued to widen from KSh 853.7 billion in 2016 to KSh 1,131.5 billion. This was mainly driven by high import bill which grew by 20.5 per cent from KSh 1,431.8 billion to KSh 1,725.6 billion, over the same period. The main drivers of the import bill were industrial machinery; petroleum products; road motor vehicles; iron and steel; animal and vegetable fats and oils; and sugar. Total exports increased by 2.8 per cent from KSh 578.1 billion in 2016 to KSh 594.1 billion in 2017. The major foreign exchange earners in the review period were tea; horticulture; articles of apparel and clothing accessories; coffee; and titanium ores and concentrates, collectively accounting for 64.8 per cent of total domestic export earnings, during the review period. The volume of trade expanded by 15.4 per cent to KSh 2,319.8 billion in 2017 compared to a 6.9 per cent decline in 2016. The ratio of export to import deteriorated from 40.4 per cent in 2016 to 34.4 per cent in 2017. 6.3. The current account balance widened by 38.3 per cent to a deficit of KSh 518.9 billion in 2017 from a deficit of KSh 375.3 billion in 2016. Net international services increased by 11.4 per cent from a surplus of KSh 144.4 billion in 2016 to a surplus of KSh 160.9 billion in 2017. Receipts from international services increased by 14.0 per cent while payments for international services rendered grew by 15.3 per cent in 2017. Receipts from international travel partly contributed to the increase in services inflows. Net financial inflows increased by 13.4 per cent from a surplus of KSh 420.0 billion in 2016 to a surplus of KSh 476.1 billion in 2017. Other investment net inflows increased by 18.0 per cent to a surplus of KSh 513.4 billion in 2017 compared to an increase of 20.2 per cent in 2016. During the review period, the overall Balance of Payments worsened to a deficit of KSh 16.9 billion from a surplus of KSh 13.1 billion in 2016. Balance 6.4. The balance of trade deficit widened from KSh 853.7 billion in 2016 to KSh 1,131.5 billion in 2017, as shown in Table 6.1. This was occasioned by a 20.5 per cent increase in imports of Trade from KSh 1,431.8 billion in 2016 to KSh 1,725.6 billion in 2017. 6.5. Total exports increased by 2.8 per cent from KSh 578.1 billion in 2016 to KSh 594.1 billion in 2017 on account of increase in domestic exports. Domestic exports increased from KSh 506.5 billion in 2016 to KSh 530.6 billion in 2017, representing an increase of 4.8 per cent. Re-exports registered a decline of 11.2 per cent to KSh 63.5 billion in 2017. The ratio of export to import deteriorated from 40.4 per cent in 2016 to 34.4 per cent in 2017, as a result of faster growth in imports relative to exports. 89 Economic Survey 2018 Table 6.1: Balance of Trade, 2013-2017 DESCRIPTION 2013 2014 2015 KSh Million 2017* 2016 EXPORTS1 (f.o.b) : Domestic Exports .. .. .. . .. . .. . .. . .. . .. . 455,689 .. . .. . .. . .. . .. . 460,572 499,708 Re-exports .. .. .. .. .. .. .. .. . .. . .. . .. . .. . 46,598 .. . .. . .. . .. . .. . ..76,664 . .. . .. . .. . .. . .. . 81,337 .. Total .. .. .. .. .. .. .. .. .. .. . .. . .. . .. . .. 502,287 . .. . .. . .. . .. . .. .537,236 .. . .. . .. . .. . .. . .. 581,045 . .. 506,548 71,519 578,067 IMPORTS1 (c.i.f) : Commercial .. .. .. .. .. .. .. .. . .. . .. . .. 1,403,225 . .. . .. . .. . .. . .. . 1,599,619 .. . .. . .. . .. . .. . .. . 1,540,731 .. . .. Government .. .. .. .. .. .. .. .. . .. . .. . .. . .. 10,091 . .. . .. . .. . .. . .. . 18,702 .. . .. . .. . .. . .. . .. 36,826 . .. Total .. .. .. .. .. .. .. .. .. .. . .. . .. . .. . 1,413,316 .. . .. . .. . .. . .. . ..1,618,321 . .. . .. . .. . .. . .. . 1,577,557 .. . .. BALANCE OF TRADE .. .. .. .. .. .. . .. . .. (911,029) . .. . .. . .. . .. . ..(1,081,085) . .. . .. . .. . .. . .. . .. (996,512) . .. . .. . .. TOTAL TRADE .. .. .. .. .. .. .. .. .. . .. . 1,915,602 .. . .. . .. . .. . .. . ..2,155,557 . .. . .. . .. . .. . .. . ..2,158,602 . .. . .. . .. 1,389,741 42,014 1,431,755 (853,688) 2,009,821 . .. . .. . .. . .. . .. . 33.2 .. . .. . .. . .. . .. . .. 36.8 . .. . .. . .. . .. . .. COVER RATIO2 (in percentage) .. .. .. .. .. .. 35.5 40.4 530,617 63,511 594,128 1,671,724 53,899 1,725,623 (1,131,494) 2,319,751 34.4 Source: Kenya National Bureau of Statistics/Kenya Revenue Authority *Provisional 1 Excludes data on Informal Cross Border Trade and Electricity 2 COVER RATIO =(Total Exports/Total Imports)*100 f.o.b: free on board c.i.f: cost, insurance and freight Price 6.6. Table 6.2(a) presents export and import unit price indices by commodity groups of changes Standard International Trade Classification (SITC) for the period 2013 to 2017. The unit price indices for all exports and non-oil exports increased by 5.6 per cent each, in 2017. This was mainly on account of an increase in the unit prices of commodities broadly classified under sections of manufactured goods; food and live animals; and inedible crude materials. On the other hand, the export unit price indices for chemicals; and animal and vegetable oil and fats reduced by 40.0 per cent and 19.2 per cent, respectively. The contraction in the unit price index for chemicals was occasioned by decline in export prices of medicaments. 6.7. During the review period, the unit price indices for all imports and non-oil imports rose by 10.5 per cent and 6.7 per cent, respectively. The increase was mainly attributed to the growth in unit price indices of mineral fuels (31.6%), inedible crude materials (20.4%), and machinery and transport equipment (13.4%). However, import unit price index for beverages and tobacco declined by 16.7 per cent. The decline was partly as a result of the decline in import prices of alcoholic beverages. 90 Chapter 6: International Trade and Balance of Payments Table 6.2(a): Export and Import Price Indices, 2013-2017 2013 2014 2015 2016 2009=100 2017* EXPORTS: Food and live animals .. .. .. .. .. .. .. .. .. .. .. .. .. 133 .. .. .. .. .. ..121 .. .. .. .. ..155 146 Beverages and tobacco .. .. .. .. .. .. .. .. .. .. .. .. .. 133 .. .. .. .. .. 142 .. .. .. .. .. ..126 .. .. .. 161 Crude materials, (inedible) .. .. .. .. .. .. .. .. .. .. .. 126 .. .. .. .. .. 125 .. .. .. .. .. 124 .. .. .. .. .. ..103 Mineral fuels .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 150 .. .. .. .. .. 219 .. .. .. .. .. 193 .. 115 Animal and vegetable oils and fats . .. .. .. .. .. .. .. .. ..125 .. .. .. .. ..128 .. .. .. .. .. 136 .. .. .. .. .. 156 . .. .. Chemicals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 114 .. .. .. .. .. 134 .. .. .. .. .. 155 185 Manufactured goods .. .. .. .. .. .. .. .. .. .. .. .. .. 113 .. .. .. .. .. 112 .. .. .. .. .. ..117 .. .. .. 108 Machinery and transport equipment .. .. .. .. .. .. .. .. 286 .. .. .. .. .. 246 .. .. .. .. .. ..225 .. .. .. .. ..244 .. .. .. Miscellaneous manufactured articles .. .. .. .. .. .. .. .. ..188 .. .. .. .. ..165 .. .. .. .. ..183 .. .. .. .. .. 184 .. .. .. All Exports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..136 .. .. .. .. ..132 .. .. .. .. ..149 142 Non-oil Exports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..136 .. .. .. .. .. 131 .. .. .. .. .. 148 .. 143 IMPORTS: Food and live animals .. .. .. .. .. .. .. .. .. .. .. .. .. ..174 .. .. .. .. .. 170 .. .. .. .. .. 176 .. .. .. 169 Beverages and tobacco .. .. .. .. .. .. .. .. .. .. .. .. .. ..172 .. .. .. .. ..136 .. .. .. .. .. 133 .. .. .. 150 Crude materials, (inedible) .. .. .. .. .. .. .. .. .. .. .. .. 126 .. .. .. .. .. 139 .. .. .. .. .. 152 .. .. .. .. .. 157 Mineral fuels .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..200 .. .. .. .. .. 187 .. .. .. .. .. 134 95 Animals and vegetable oils and fats .. .. . .. .. .. .. .. .. ..140 .. .. .. .. ..145 .. .. .. .. .. 124 .. .. .. .. .. 135 .. .. . Chemicals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..158 .. .. .. .. .. 147 .. .. .. .. 145 143 Manufactured goods .. .. .. .. .. .. .. .. .. .. .. .. .. ..140 .. .. .. .. ..126 .. .. .. .. .. 150 .. .. .. 145 Machinery and transport equipment .. .. . .. .. .. .. .. ..181 .. .. .. .. ..227 .. .. .. .. .. 275 .. .. .. .. .. 292 .. .. .. . Miscellaneous manufactured articles .. .. .. .. .. .. .. .. ..164 .. .. .. .. .. 189 .. .. .. .. .. 169 .. .. .. .. .. 150 .. .. .. All imports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..168 .. .. .. .. .. 180 .. .. .. .. .. 196 .. .. .. 181 Non-oil Imports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..160 .. .. .. .. ..178 .. .. .. .. .. 214 .. .. .. .. 209 170 168 114 108 126 111 132 213 191 150 151 191 125 189 125 149 161 147 331 167 200 223 * Provisional Terms of 6.8. The ratio of export price index to import price index for the period 2013 to 2017 is Trade presented in Table 6.2(b). Terms of trade for all items worsened by 3.5 percentage points to 75.0 per cent in 2017. The terms of trade for non-oil items deteriorated marginally from 68.4 per cent in 2016 to 67.7 per cent in 2017, continuing the four year downward trend. Table 6.2(b): Terms of Trade, 2013-2017 DESCRIPTION 2013 2014 2015 2016 All Items .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 81.0 .. .. .. .. .. .. 73.3 .. .. .. .. .. ..76.0 .. . 78.5 Non-oil Items .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 85.0 .. .. .. .. .. ..73.6 .. .. .. .. .. 69.2 .. .. .. .. .. ..68.4 .. .. .. .. 2009=100 2017* 75.0 67.7 * Provisional Volume 6.9. Quantum indices for exports and imports are shown in Table 6.2(c). Overall, the export changes quantum indices for non-oil items and all items declined by 2.7 per cent and 1.8 per cent to 110, respectively, in 2017. This was mainly driven by a decline in the export quantum indices of most of the categories except chemicals and mineral fuels. Notably, the decline was recorded in machinery and transport equipment; manufactured goods; and animal and vegetable oil and fats which reduced by 37.7, 25.0 and 12.1 per cent, respectively, in the review period. 6.10. The overall import quantum indices for non-oil items and all imports increased by 10.6 per cent and 7.9 per cent, to 104 and 109, respectively, during the review period. This was mainly occasioned by substantial increases in import quantum indices for the broad categories of food and live animals (96.1%), animal and vegetable oils and fats (16.8%), and beverages and tobacco (10.1%). However, import quantum indices declined for inedible crude materials (22.1%), chemicals (7.1%), and machinery and transport equipment (3.1%) in 2017. 91 Economic Survey 2018 Table 6.2(c): Quantum Indices1, 2013-2017 2009=100 2016 2017* 2013 2014 2015 EXPORTS: Food and live animals .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..110 .. .. .. .. ..116 .. .. .. .. 109 .. 120 114 Beverages and tobacco .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..105 .. .. .. .. ..111 .. .. .. .. 124 .. .. .. .. 85 75 Crude materials, (inedible) .. .. .. .. .. .. .. .. .. .. .. .. ..103 .. .. .. .. ..135 .. .. .. .. 138 .. .. .. .. .. 183 .. 179 Mineral fuels .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 41 .. .. .. .. ..42.. .. .. .. ..49 64 70 Animal and vegetable oils and fats .. .. .. .. .. .. .. .. .. .. ..112 .. .. .. .. .. 80 .. .. .. .. ..58.. .. .. .. ..66.. .. 58 74 120 Chemicals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..115 .. .. .. .. .. 97 .. .. .. .. 89 Manufactured goods .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..132 .. .. .. .. ..120 .. .. .. .. 107 .. .. .. .. 100 75 Machinery and transport equipment .. .. .. .. .. .. .. .. .. ..48 .. .. .. .. ..45.. .. .. .. 55 .. .. .. .. .. 61 .. .. .. .. 38 Miscellaneous manufactured articles .. .. .. .. .. .. .. .. .. .. 84 .. .. .. .. ..108 .. .. .. .. 100 .. .. .. .. .. ..98.. .. .. 96 All Exports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..104 .. .. .. .. 110 .. .. .. .. .. 105 112 110 Non-oil Exports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 105 .. .. .. .. .. 112 .. .. .. .. ..107 113 110 IMPORTS: Food and live animals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..64.. .. .. .. 73 .. .. .. .. .. 78 .. .. 76 149 Beverages and tobacco .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..141 .. .. .. .. 158 .. .. .. .. .. 143 .. .. .. 149 164 Crude materials, (inedible) .. .. .. .. .. .. .. .. .. .. .. .. .. 117 .. .. .. .. .. 118 .. .. .. .. ..122 .. .. .. .. ..113 88 Mineral fuels .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..99.. .. .. ..112 .. .. .. .. 108 132 133 Animals and vegetable oils and fats .. .. . .. .. .. .. .. .. .. ..125 .. .. .. .. 125 .. .. .. .. ..138 .. .. .. .. ..143 .. .. .. . 167 Chemicals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..122 .. .. .. .. 139 .. .. .. 157 155 144 Manufactured goods .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..149 .. .. .. .. ..171 .. .. .. .. 162 .. .. .. .. 162 164 Machinery and transport equipment .. .. .. .. .. .. .. .. .. ..92.. .. .. ..100 .. .. .. .. ..82 .. .. .. .. ..64.. .. .. .. 62 Miscellaneous manufactured articles .. .. .. .. .. .. .. .. .. ..134 .. .. .. .. ..126 .. .. .. .. 164 .. .. .. .. ..174 .. .. .. .. 185 All imports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 107 .. .. .. .. .. 114 .. .. .. .. 102 101 109 Non-oil Imports .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..109 .. .. .. .. 114 .. .. .. .. .. 101 .. 94 104 Quantities of Principal Domestic Exports * Provisional 1 Measures changes in volume of trade 6.11. The quantity of principal exports for the period 2013 to 2017 is presented in Table 6.3(a). The quantity of exported titanium ores and concentrates declined by 13.2 per cent to 533.8 thousand tonnes in 2017. The quantity of exported cement decreased further from 420.2 thousand tonnes in 2016 to 387.6 thousand tonnes in the review period. Similarly, the quantity of exported fluorspar declined drastically from 48.7 thousand tonnes to 8.9 thousand tonnes over the same period, mainly due to the suspension of mining operations over low demand. The quantity of soda ash exported rose from 258.7 thousand tonnes in 2016 to 342.6 thousand tonnes in 2017 while quantity of salt exported rose from 306.3 thousand tonnes in 2016 to 320.4 thousand tonnes in 2017. Quantity of exported tea and horticulture declined by 2.7 per cent and 8.8 per cent to 467.0 thousand tonnes and 457.2 thousand tonnes, respectively, in 2017. The quantity of articles of plastic decreased by 9.4 per cent to 43.3 thousand tonnes due to the ban on the use of plastics paper ban. Other commodities that exhibited notable decline in quantities exported in 2017 included: tobacco and tobacco manufactures (15.5%); iron and steel (21.8 %); and paper and paperboard (47.5 %). The quantity of exported edible products and preparations (28.7%), glassware (24.8%) and leather (12.1%) increased during the review period. 92 Chapter 6: International Trade and Balance of Payments Table 6.3(a): Quantities of Principal Domestic Exports, 2013-2017 Unit of Commodity Quantity 2013 Fish and fish preparations .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .. 11,712 Maize(unmilled,excluding sweet corn) .. .. . .. .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. ....1,236 .. .... .. .. Meals and flours of wheat .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .... .. .. 3,076 Horticulture .. .. . .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ..Tonne 394,387 Sugar confectionery .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. ..30,159 Coffee, unroasted .. .. . .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .. 48,890 Tea .. .. .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... ..Tonne .... .. .. 446,033 Margarine and shortening .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. ..15,924 Edible products and preparations, n.e.s. .. … .. … .. … .. … .. … Tonne 13,561 Beer made from malt .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... ..000 .... Lt. .. .... .. .. 48,166 Tobacco and tobacco manufactures.. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .... .. ....23,466 .. .. Hides and Skins .. .. .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. Tonne .... .. .... .. .... .. ..2,832 Sisal .. .. .. .. .. .. .. .. .. . .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... ..Tonne .... .. .. 10,010 Stone, sand and gravel . .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .. 29,632 Fluorspar .. .. .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. Tonne .... .. .... .. .. 78,002 Salt .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne 289,487 Soda Ash .. .. .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .. 478,822 2014 15,213 1,678 2,308 434,950 28,986 47,438 456,492 17,097 14,751 65,572 21,016 2,560 10,093 45,460 94,021 269,111 396,095 2015 10,801 2,007 3,250 443,076 29,988 43,600 420,527 18,397 18,399 64,565 15,961 2,272 9,015 38,678 70,096 303,452 272,520 2016 5,995 3,191 1,479 501,573 28,836 45,303 479,969 17,787 19,789 31,332 25,367 2,777 9,595 104,493 48,662 306,324 258,703 2017* 5,321 5,420 1,648 457,201 31,064 43,469 467,033 18,102 25,463 28,594 21,439 1,105 7,441 92,408 8,926 320,442 342,639 Titanium ores and concentrates1.. .. .. .. .. .. .. .. .. .. Tonne Metal scrap .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .... .. .. 4,478 Animal and Vegetable oils .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. ..70,339 Alcohols and derivatives thereof 000 Lt. 18,558 Pigments, paints, varnishes and related materials .. … .. … Tonne 11,949 Medicinal and pharmaceutical products .. .. . .. .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .... .. ....12,419 .. .... .. .. Essential oils .. .. .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .. 94,157 Plates, sheets, film, foil and strip, of plastics .. … .. … .. … .. … Tonne 7,927 Insecticides and fungicides .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. .. 1,416 Leather .. .. .. .. ... .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. ..Tonne 26,542 Wood manufactures n.e.s .. .. .. .. .. .. . .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. Tonne .... .. .... .. .... .. .. 468 Paper and paperboard .. .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .. 41,760 Textile yarn .. .. .. .. .. .. .. .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. .. 2,046 Made-up articles, wholly or chiefly of textile materials, n.e.s. .. … .. … .. … Tonne 11,464 Glassware .. … .. … .. … … .. … .. … … .. … .. … Tonne 22,693 Cement .. .. .. .. .. .. .. .. .... .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. Tonne .... .. .... .. .... ..826,941 .. Iron and steel .. .. .. .. .. .. .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... .. .... ..Tonne .... .. .... .. .. 155,442 Metal containers .. .. .. .. .. .. .... .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .... .. .... ..2,831 .. Wire products: nails screws, nuts, etc. .. .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. ....Tonne .. .... .. .... .. .... 9,232 .. .... .. .. Household equipment of base metal, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne 10,401 Manufactures of base metal, n.e.s. .. … .. … .. … .. … Tonne 7,572 Automatic data proccessing machines and units thereof;…………………………. No's 45,737 Footwear .. .. .. .. .. .. .... .. .. .. .. .. .... .. .... .. .... .. ' 000' Pairs 52,021 Printed matter … … .. … … … .. … … … .. … … … .. … Tonne 6,553 Articles of plastic .. .. .. .. .. .. .... .. .. .. .. .. .... .. .... .. .... .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. ....48,370 .. 360,525 5,091 49,827 15,033 12,886 13,285 87,779 8,479 1,597 26,213 401 34,043 1,601 16,619 13,411 720,465 137,561 3,162 8,265 9,841 8,217 106,895 40,092 9,006 58,488 493,201 5,814 37,357 19,246 14,733 13,095 78,356 7,247 2,209 23,329 529 33,208 1,648 16,679 13,106 681,665 124,190 2,542 6,585 7,614 11,889 76,375 32,634 6,854 52,629 614,609 10,657 57,275 17,456 13,204 13,379 81,769 5,309 2,314 21,657 309 62,374 1,553 11,018 11,373 420,157 139,019 3,569 4,581 9,690 10,741 25,031 37,176 6,724 47,382 533,762 12,647 36,059 5,407 14,338 13,877 88,158 5,194 2,455 24,271 263 32,770 1,921 7,764 14,193 387,593 108,717 2,456 7,212 6,225 11,480 33,050 34,480 4,909 43,307 Source: Kenya National Bureau of Statistics/Kenya Revenue Authority * Provisional. 1 The first batch of Titanium ores was exported in 2014 Quantities 6.12. The quantity of principal imports for the period 2013 to 2017 is presented in Table of Principal 6.3(b). There was a marked increase in the quantities of imported wheat, maize and sugar in Imports 2017, as a result of the drought experienced in the country. The quantity of unmilled wheat imported rose from 1,362.3 thousand tonnes in 2016 to 1,855.0 thousand tonnes in 2017. During the review period, the quantity of maize imported increased almost nine times due to reduced production of maize, in the country. Imports of rice rose from 508.0 thousand tonnes in 2016 to 625.1 thousand tonnes in 2017. Quantity of sugar imports, which include molasses and honey tripled from 377.3 thousand tonnes in 2016 to 1,119.6 thousand tonnes in 2017, mainly due to reduced production of sugarcane. Quantities of imported chemical fertilizers rose by 27.0 per cent to 853.1 thousand tonnes in 2017. Similarly, quantities of imported animal and vegetable fats and oils rose from 750.5 thousand tonnes in 2016 to 850.5 thousand tonnes in 2017. The number of imported road motor vehicles increased by 11.0 per cent to 94,464, in the review period. The quantity of cement clinker imported reduced by 24.9 per cent to 1,504.6 thousand tonnes in 2017 while that of imported iron and steel declined by 4.8 per cent to 1,374.7 thousand tonnes, in the same period. 93 Economic Survey 2018 Table 6.3(b): Quantities of Principal Imports, 2013-2017 Unit of Commodity Quantity 2013 2014 2015 Wheat, unmilled …………………………………………………………………………………... Tonne 1,033,054 1,225,690 1,421,785 Rice…………………………………………………………………………………… Tonne 409,576 459,165 442,736 Maize(unmilled,excluding sweet corn) .. .. . .. .. .... .. .... .. .... .. .... Tonne .. .... .. .... .. ....93,473 .. .... .. .... .. .... 458,940 .. .. 490,024 Wheat flour …………………………………………………………………………………… Tonne 30,853 33,178 16,306 Sugars, Mollases and Honey …………………………………………………………………………………… Tonne 276,542 228,834 286,732 Edible products and preparations, n.e.s. ………… Tonne 48,347 54,264 93,869 Textile fibres and their waste …………………………………………………………………………………… Tonne 18,183 20,051 21,459 Second - hand clothing …………………………………………………………………………………… Tonne 101,066 106,974 110,659 Petroleum products …………………………………………………………………………………… Mn. Lt. 3,760 4,645 5,120 Residual petroleum products, n.e.s. and related materials … Tonne 71,863 72,684 116,450 Liquefied propane and butane ……………………. Tonne 55,874 111,933 129,395 Tonne 636,120 622,343 683,490 Animal/vegetable fats and oils …………………………………………………………………………………… Organic and inorganic chemicals …………………………………………………………………………………… Tonne 256,736 389,311 268,454 Pigments, paints, varnishes and related materials …………… Tonne 27,718 28,932 34,410 Medicinal and pharmaceutical products …………………………………………………………………………………… Tonne 17,187 20,713 24,954 Essential oils and perfumes …………………………………………………………………………………… Tonne 46,097 55,425 55,321 Chemical fertilizers …………………………………………………………………………………… Tonne 688,436 496,057 568,600 Plastics in primary and non-primary forms …………………………………………………………………………………… Tonne 377,340 400,188 455,432 Insecticides and fungicides…………………………………………………………. Tonne 14,761 15,232 15,342 Miscellaneous chemical products, n.e.s. ………………………………….. Tonne 37,245 38,880 52,804 Rubber tyres and inner tubes, for wheels of all kinds………………. "000''No 5,718 6,104 6,429 Paper and Paperboard …………………………………………………………………………………… Tonne 305,869 351,174 331,136 Textile yarn.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne 20,173 22,814 21,734 Cement Clinkers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne 1,427,115 1,307,225 1,973,231 1,196,273 1,530,606 Iron and steel …………………………………………………………………………………… Tonne 1,217,865 Non-ferrous metals …………………………………………………………………………………… Tonne 52,588 53,315 51,010 Structures and parts of structures of iron, steel or aluminium ………….Tonne 52,612 66,405 95,065 Hand and machine tools …………………………………………………………………………………… Tonne 10,682 11,382 11,337 Manufactures of base metal, n.e.s. ……………….. Tonne 33,046 32,747 66,069 2016 1,362,309 507,999 148,558 15,925 377,334 93,952 21,452 131,941 5,478 71,781 167,057 750,512 279,396 38,004 25,873 56,046 671,781 469,426 16,781 49,767 7,757 348,685 23,572 2,002,865 1,443,869 51,397 103,981 11,649 60,270 2017* 1,854,954 625,143 1,327,972 13,951 1,119,609 104,973 20,125 135,868 5,542 87,124 198,482 850,497 279,540 43,331 24,791 64,353 853,113 453,784 17,986 50,076 8,124 365,371 19,696 1,504,627 1,374,713 46,036 69,821 9,472 45,873 1,025 1,245 Parts, n.e.s. and accessories of the motor vehicles 1 Motorcycles and cycles fitted with an auxilliary motor ………………… "000''No 165 148 182 Bicycles, assembled or partly assembled…………………………………………………………………………………… "000''No 166 140 162 Road Motor Vehicles…………………………………………………………………………………… Nos. 92,270 103,517 109,781 146 108 85,067 200 151 94,464 Aircraft and associated equipment1 .. … .. … .. … .. … .. … .. … Prefabricated buldings ………………………………. Industrial Machinery 1 .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. Agricultural Machinery and Tractors 1 . . .. .. .. . .. .. .. . .. .. .. . .. .. Automatic data processing machines and units thereof; ……………………………………………………………………. "000''No 1,618 405 538 Telecommunications equipment, n.e.s., and parts, n.e.s.1 Tonne 22,136 27,280 30,010 18,205 19,263 Tonne Tonne 9,402 37,770 10,218 49,786 13,318 46,138 11,373 50,649 8,876 42,346 Furniture and parts thereof1 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Quality control instruments and apparatus, n.e.s.1 .. .. . .. .. .. .. . .. Printed matter ……………………………………….. Articles, n.e.s., of plastics ………………………….. Source: Kenya National Bureau of Statistics/Kenya Revenue Authority * Provisional. 1 Values of Principal Domestic Exports Items have different units of measurements 6.13. Table 6.4(a) presents the values of principal domestic exports from 2013 to 2017. Earnings from domestic exports of commodities rose by 4.8 per cent from KSh 506.5 billion in 2016 to KSh 530.6 billion in 2017. Tea remained the leading export earner with earnings increasing by 18.3 per cent to KSh 147.3 billion during the same period. In 2017, horticultural export earnings maintained an upward trend at KSh 113.3 billion, accounting for 21.4 per cent of the total value of domestic exports. The value of domestic exports of articles of apparel and clothing accessories; coffee; and titanium ores and concentrates, also registered remarkable increase. Earnings from domestic exports of soda ash rose for the first time in five years to KSh 7.1 billion in 2017. 6.14. Earnings from domestic exports of tobacco and tobacco manufactures declined by 5.8 per cent to KSh 13.7 billion in 2017. Other commodities that recorded reduced earnings in 2017 included iron and steel (11.1%); medicinal and pharmaceutical products (17.0%); articles of plastic (11.2%); animal and vegetable oils (27.9%); salt (6.8%) and cement (19.6%). 94 Chapter 6: International Trade and Balance of Payments Table 6.4(a): Values of Principal Domestic Exports, 2013-2017 KSh Million Commodity 2013 2014 2015 2016 2017* Fish and fish preparations .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..3,362 .. .. .. .. .. .. .. ..4,266 .. .. .. .. .. .. .. ..3,287 .. .. .. .. .. .. .. 1,899 .. .. .. .. .. .. .. 2,125 Maize(unmilled,excluding sweet corn) .. .. . .. .. .... .. .... .. .... .. .... .. .... .. .... 192 .. .... .. .... .. .... 324.. .... .. .. 312 511 766 Meals and flours of wheat .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..145 .. .. .. .. .. .. .. ..87 .. .. .. .. .. .. .. 138 .. .. .. .. .. .. .. .. ..65.. .. .. .. .. .. .. 72 Horticulture .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..89,339 .. .. .. .. .. .. .. ..97,105 .. .. .. .. .. .. ..100,963 .. .. .. .. .. .. .. ..110,338 .. .. .. .. .. .. 113,349 Sugar confectionery. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..5,401 .. .. .. .. .. .. .. ..5,345 .. .. .. .. .. .. .. 5,475 .. .. .. .. .. .. .. .. 4,895 .. .. .. .. 5,073 Coffee, unroasted .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..16,328 .. .. .. .. .. .. .. 19,913 .. .. .. .. .. .. .. .. 20,580 .. .. .. .. .. .. .. ..21,371 .. .. .. .. .. 23,453 Tea .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 104,648 .. .. .. .. .. .. .. .. 93,996 .. .. .. .. .. .. .. ..123,025 .. .. .. .. .. .. .. 124,497 .. 147,251 Margarine and shortening .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..2,245 .. .. .. .. .. .. .. ..2,349 .. .. .. .. .. .. .. ..2,307 .. .. .. .. .. .. .. 2,126 .. .. .. .. .. .. .. .. .. ..2,368 Edible products and preparations, n.e.s. .. … .. … .. … 2,573 2,637 4,048 4,329 5,985 Beer made from malt .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..3,636 .. .. .. .. .. .. .. 3,416 .. .. .. .. .. .. .. .. 3,630 .. .. .. .. .. .. .. ..2,316 .. .. .. .. .. .. .. .. . 2,521 Tobacco and tobacco manufactures .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 13,709 .. .. .. .. .. .. .. ..16,827 .. .. .. .. .. .. .. ..15,757 .. .. .. .. .. .. .. 14,574 .. .. .. .. .. .. .. .. .. ..13,736 .. .. .. Hides and skins (undressed) . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..134 .. .. .. .. .. .. .. 126 .. .. .. .. .. .. .. .. 124 .. .. .. .. .. .. .. ..171 .. .. .. .. .. .. .. 51 Sisal .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1,020 .. .. .. .. .. .. .. .. 1,325 .. .. .. .. .. .. .. ..1,517 .. .. .. .. .. .. .. ..1,762 .. .. 1,220 Stone, sand and gravel . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..389 .. .. .. .. .. .. .. 643 .. .. .. .. .. .. .. .. 444 .. .. .. .. .. .. .. ..726 .. .. .. .. 579 Fluorspar .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1,714 .. .. .. .. .. .. .. .. 1,883 .. .. .. .. .. .. .. ..1,428 .. .. .. .. .. .. .. .. ..843 .. .. 159 Salt .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2,978 3,881 4,694 4,337 4,040 Soda ash .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8,997 .. .. .. .. .. .. .. ..7,832 .. .. .. .. .. .. .. ..6,247 .. .. .. .. .. .. .. ..5,432 .. 7,091 Titanium ores and concentrates 1.. .. 7,282 9,420 11,043 13,793 Metal scrap .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2,498 .. .. .. .. .. .. .. ..3,403 .. .. .. .. .. .. .. ..2,598 .. .. .. .. .. .. .. ..2,490 .. .. 3,328 Animal and Vegatable oils .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..8,156 .. .. .. .. .. .. .. ..6,036 .. .. .. .. .. .. .. ..4,650 .. .. .. .. .. .. .. 6,040 .. .. .. .. .. .. .. .. .. ..4,356 Alcohols , phenols, phenol-alcohols, and their halogens .. .. .. .. .. .. .. 1,758 1,447 2,059 1,605 405 Pigments, paints, varnishes and related materials .. … .. … .. .. .. .. .. .. .. 1,628 1,894 2,271 1,818 2,172 Medicinal and pharmaceutical products .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..7,068 .. .. .. .. .. .. .. ..8,296 .. .. .. .. .. .. ..11,199 .. .. .. .. .. .. .. ..13,190 .. .. .. .. .. .. .. .. .. 10,952 .. .. .. .. Essential oils .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..11,172 .. .. .. .. .. .. .. 10,854 .. .. .. .. .. .. .. .. ..9,822 .. .. .. .. .. .. .. ..9,139 .. .. .. .. .. .. 10,113 Plates, sheets, film, foil and strip, of plastics .. … .. … .. .. .. .. .. 2,415 2,641 2,419 1,995 1,637 Insecticides and fungicides .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..771 .. .. .. .. .. .. .. 805 .. .. .. .. .. .. .. 1,546 .. .. .. .. .. .. .. .. 2,034 .. .. .. .. .. .. .. .. .. .1,716 Leather .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..8,491 .. .. .. .. .. .. .. 7,597 .. .. .. .. .. .. .. .. 6,222 .. .. .. .. .. .. .. ..4,605 .. .. .. 5,088 Wood manufactures n.e.s .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..159 .. .. .. .. .. .. .. 146 .. .. .. .. .. .. .. .. 124 .. .. .. .. .. .. .. ..107 .. .. .. .. .. .. .. .. .. 135 Paper and paperboard .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5,342 .. .. .. .. .. .. .. ..4,406 .. .. .. .. .. .. .. ..4,773 .. .. .. .. .. .. .. 4,994 .. .. .. .. .. .. .. .. .. 4,855 Textile yarn .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 885 721 721 637 859 Made-up articles, wholly or chiefly of textile materials, n.e.s. .. … .. … .. … 2,881 3,772 3,400 3,018 2,081 Glassware .. … .. … .. … … .. … .. … … .. … .. … .. .. .. .. .. .. .. .. 1,855 840 910 607 924 Cement .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..8,292 .. .. .. .. .. .. .. 7,541 .. .. .. .. .. .. .. .. 7,721 .. .. .. .. .. .. .. ..4,360 .. .. .. 3,505 11,717 Iron and steel .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 15,560 .. .. .. .. .. .. .. ..13,443 .. .. .. .. .. .. .. ..12,290 .. .. .. .. .. .. .. ..13,183 .. .. .. .. .. .. Metal containers. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 500 .. .. .. .. .. .. .. ..556 .. .. .. .. .. .. .. ..575 .. .. .. .. .. .. .. ..575 .. 512 Wire products: nails screws, nuts, etc.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..1,036 .. .. .. .. .. .. .. ..1,295 .. .. .. .. .. .. .. .. ..992 .. .. .. .. .. .. .. 646 .. .. .. .. .. .. .. .. ..1,077 .. . Household equipment of base metal, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 3,392 3,508 2,659 2,709 1,907 Manufactures of base metal, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1,948 1,938 2,633 2,553 2,562 Automatic data processing machines and units thereof; .. .. .. .. 980 331 236 337 167 Electrical machinery and apparatus, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2,706 2,025 2,022 6,285 1,518 Trailers and semi-trailers; other vehicles .. .. .. .. .. .. .. .. .. .. .. .. .. .. 2,597 2,041 1,624 1,494 948 Furniture and parts thereof; bedding, mattresses .. .. .. .. .. .. .. .. .. .. .. .. .. .. 1,922 1,697 1,421 1,215 1,068 Footwear .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..3,992 .. .. .. .. .. .. .. ..3,569 .. .. .. .. .. .. .. 3,694 .. .. .. .. .. .. .. .. 3,473 .. .. .. .. .. .. 3,229 Printed matter … … .. … … … .. … … … .. … … … .. … 3,442 4,271 6,363 5,205 5,683 Articles of plastics .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 10,263 .. .. .. .. .. .. .. .. 10,995 .. .. .. .. .. .. .. ..11,174 .. .. .. .. .. .. .. .. 9,907 .. .. .. .. .. .. .. . 8,801 Articles of apparel and clothing accessories. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..24,379 .. .. .. .. .. .. .. ..28,948 .. .. .. .. .. .. .. ..28,226 .. .. .. .. .. .. .. 30,741 .. .. .. .. .. .. .. .. .. ..32,448 .. .. .. All other Commodities . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 62,789 .. .. .. .. .. .. .. .. 56,319 .. .. .. .. .. .. .. ..61,964 .. .. .. .. .. .. .. ..60,351 .. .. .. .. .. .. 63,222 GRAND TOTAL 455,689 460,572 499,708 506,548 530,617 Source: Kenya National Bureau of Statistics/ Kenya Revenue Authority * Provisional 1 The first Batch of Titanium ores was exported in 2014 Values of 6.15. Import bill rose by 20.5 per cent from KSh 1,431.8 billion in 2016 to KSh 1,725.6 billion Principal in 2017, as shown in Table 6.4(b). The increase in imports of petroleum products partly Imports contributed to the increase in the total value of imports, with their import value rising by 27.8 per cent to KSh 234.9 billion in 2017. Expenditure on sugar more than doubled during the review period from KSh 22.0 billion in 2016 to KSh 61.5 billion in 2017. In the review period, the value of maize imported increased more than tenfold to KSh 40.3 billion from KSh 3.6 billion in 2016. Substantial increase in import value was also recorded in wheat (46.8%), rice (88.6%), iron and steel (10.7%), animal and vegetable fats and oils (28.7%), chemical fertilizers (26.4%), and organic and inorganic chemicals (14.9%) in 2017. Expenditure on automatic data processing machines and motorcycles also rose by 33.1 per cent and 38.6 per 95 Economic Survey 2018 cent to KSh 25.2 billion and KSh 11.4 billion, respectively, over the same period. 6.16. The value of imports of industrial machinery decreased by 6.0 per cent from KSh 253.5 billion in 2016 to KSh 238.4 billion in 2017. Likewise, the value of imports of agricultural machinery and tractors declined by 4.9 per cent to KSh 8.5 billion during the same period. Import expenditure on medicinal and pharmaceutical products further declined from KSh 60.5 billion in 2016 to KSh 55.6 billion in 2017. There was a marginal decline in total expenditure on imports of motor vehicles from KSh 85.8 billion in 2016 to KSh 85.2 billion in 2017. Similarly, import bill on rubber tyres declined from KSh 14.3 billion to KSh 14.0 billion over the same period. The value of imported cement clinkers declined for the second consecutive year to KSh 6.5 billion in 2017. 96 Chapter 6: International Trade and Balance of Payments Table 6.4(b): Values of Principal Imports, 2013-2017 KSh Million Commodity 2013 2014 2015 2016 2017* Wheat, unmilled .. .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. ..30,189 . .. .. .. . .. .. .. . 33,831 .. .. .. . .. .. .. . .. 35,663 .. .. . .. .. .. 28,883 42,400 Rice .. .. .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . ..14,111 .. .. . .. .. .. . .. ..15,305 .. . .. .. .. . .. .. ..13,370 . .. .. .. 14,200 26,782 Maize(unmilled,excluding sweet corn) .. .. . .. .. .... .. .... .. .... .. .... .. .... .. 2,291 .... .. .... .. .... 9,308 .. .... .. .... .. 8,378 .. 3,637 40,265 Wheat flour . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. ..1,964 . .. .. .. . .. .. .. . ..1,712 .. .. . .. .. .. . .. .. ..902 767 618 Sugars, Mollases and Honey .. .. ... .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. 16,770 . .. .. .. . .. .. .. . ..12,009 .. .. . .. .. .. . .. ..15,503 .. . .. .. .. . .. .. ..21,953 . .. .. .. . .. .. .. 61,530 .. Edible products and preparations, n.e.s. ………… .. .. .. .. .. .. .. .. .. .. .. 7,402 7,463 10,646 12,461 11,942 Textile fibres and their waste. .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. .5,099 .. .. .. . .. .. .. . .. 5,792 .. .. . .. .. .. . .. .. 6,623 .. . .. .. .. . .. .. .. 6,365 . .. .. .. 5,387 Second - hand clothing . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. 8,345 . .. .. .. . .. .. .. . ..8,815 .. .. . .. .. .. . ..10,151 .. .. . .. .. .. . .. ..12,859 .. 13,061 Petroleum Products .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . ..252,673 .. .. . .. .. .. . .. .. 292,643 .. . .. .. .. . .. .. ..214,695 . .. .. .. . .. .. .. . 183,842 .. .. .. 234,896 Residual petroleum products, n.e.s. and related materials … 5,379 5,362 6,635 3,979 4,781 Liquefied propane and butane .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5,515 10,834 7,879 7,895 11,749 Animal/vegetable fats and oils .. .. ... .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. ..48,371 . .. .. .. . .. .. .. . ..50,044 .. .. . .. .. .. . .. 47,038 .. .. . .. .. .. . .. .. 53,285 .. . .. .. .. . .. .. .. 68,553 Organic & inorganic chemicals .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. ..22,303 .. . .. .. .. . .. .. ..21,856 . .. .. .. . .. .. .. .22,560 .. .. .. . .. .. .. . ..22,677 .. .. . .. .. .. . .. ..26,047 .. Pigments, paints, varnishes and related materials .. .. .. .. .. .. .. .. .. .. .. . 5,608 6,369 6,872 7,080 7,671 Medicinal & Pharmaceauticals Products .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . ..40,114 .. .. . .. .. .. . .. .. 52,088 .. . .. .. .. . .. .. .. 61,513 . .. .. .. . .. .. .. . ..60,455 .. .. . .. .. .. . .. 55,623 .. .. . .. .. .. Essential oils and perfumes .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . ..16,935 .. .. . .. .. .. . .. .. 18,445 .. . .. .. .. . .. .. ..20,901 . .. .. .. . .. .. .. . 19,413 .. .. .. . .. .. .. 21,927 Chemical Fertilizers .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. 27,957 .. .. . .. .. .. . .. .. ..19,331 . .. .. .. . .. .. .. .23,468 .. .. .. . .. .. .. . ..23,064 .. .. 29,159 Plastics in primary & non-primary forms .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. 55,182 . .. .. .. . .. .. .. . ..60,217 .. .. . .. .. .. . .. ..62,724 .. . .. .. .. . .. .. ..59,319 . .. .. .. . .. .. .. .61,308 .. .. .. . .. .. .. Insecticides and fungicides.. .. ... .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. 10,879 10,797 11,335 11,381 11,892 Miscellaneous chemical products, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 10,781 12,958 14,417 14,062 15,873 Rubber tyres and inner tubes, for wheels of all kinds .. .. .. .. .. .. .. .. .. 13,189 12,406 13,343 14,270 14,028 Paper and Paperboard .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. .26,864 .. .. .. . .. .. .. . .. 29,948 .. .. . .. .. .. . .. .. 29,316 .. . .. .. .. . .. .. .. 30,065 . .. .. .. 33,010 Textile yarn.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4,106 4,421 4,332 4,137 3,882 Cement Clinkers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 7,187 6,563 9,548 8,365 6,545 Iron and Steel .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. 80,749 .. .. . .. .. .. . .. .. ..75,526 . .. .. .. . .. .. .. .88,153 .. .. .. . .. .. .. 75,469 83,580 Non-ferrous metals .. .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. .14,626 .. .. .. . .. .. .. . .. 14,704 .. .. . .. .. .. . .. ..14,672 .. . .. .. .. . .. .. ..14,353 . .. .. .. 16,902 Structures and parts of structures, n.e.s., of iron, steel or aluminium …………. 10,011 11,211 14,338 17,141 13,437 Hand and machine tools .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. ..3,265 .. . .. .. .. . .. .. .. 4,082 . .. .. .. . .. .. .. . ..3,267 .. .. . .. .. .. . .. ..2,848 .. . .. .. .. 2,626 Manufactures of base metal, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8,938 8,459 10,967 11,916 9,258 Industrial Machinery .. .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. ..231,440 .. . .. .. .. . .. .. ..256,672 . .. .. .. . .. .. .. .211,724 .. .. .. . .. .. .. . ..253,541 .. .. . .. .. .. 238,366 Agricultural Machinery and Tractors .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. ..7,802 .. . .. .. .. . .. .. ..7,925 . .. .. .. . .. .. .. . 8,664 .. .. .. . .. .. .. . .. 8,918 .. .. . .. .. .. . .. ..8,478 .. . .. .. .. Automatic data processing machines and units thereof .. .. .. .. .. .. .. .. .. .. .. .. .. .. 15,019 .. .. 9,720 11,212 18,959 25,233 Telecommunications equipment, n.e.s., and parts, n.e.s. .. .. .. .. .. .. .. .. .. .. .. .. .. ..24,160 .. .. .. 23,622 29,444 28,694 32,015 9,674 9,078 9,017 Parts, n.e.s. and accessories of the motor vehicles .. .. .. .. .. .. .. .. .. .. .. 7,440 8,105 Motorcycles and cycles fitted with an auxilliary motor .. .. .. .. .. .. .. .. 8,306 8,002 10,177 8,247 11,432 Bicycles, assembled or partly assembled .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. ..429 .. . .. .. .. . .. .. ..392 . .. .. .. . .. .. .. . 498 .. .. .. . .. .. .. . .. 357 .. .. . .. .. .. . .. ..434 .. . .. .. .. Road Motor Vehicles .. .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. 83,330 . .. .. .. . .. .. .. . 101,792 .. .. .. . .. .. .. . .. 117,637 .. .. . .. .. .. . .. .. ..85,840 . .. .. .. 85,220 Aircraft and associated equipment … … … … … … … … … … … .. .. .. .. ..21,308 .. .. .. .. .. .. .. 129,589 83,094 7,753 11,312 Prefabricated buldings .. .. . .. .. .. .. . ... .. . .. .. .. .. . . .. .. .. .. .. .. .. .. .. 4,980 6,702 7,000 4,641 4,112 Furniture and parts thereof … … … … … … … … … … … … … .. .. .. 5,842 6,325 7,161 7,132 7,965 Quality control instruments and apparatus, n.e.s. .. .. . .. .. .. .. .. .. .. .. .. 12,231 12,110 9,651 9,590 12,692 Printed matter .. .. . .. .. .. .. . .. .. .. . .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. 4,022 4,822 5,060 5,707 8,877 Articles, n.e.s., of plastics .. .. . .. .. .. .. . .. .. .. . .. .. .. .. . .. .. .. .. .. .. 5,623 6,846 8,556 7,802 8,248 All other Commodities .. .. ... .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. 224,583 .. . .. .. .. . .. .. .. .213,194 .. .. .. . .. .. .. . ..268,794 .. .. . .. .. .. . .. ..229,352 .. . .. .. .. 327,491 GRAND TOTAL 1,413,316 1,618,321 1,577,557 1,431,755 1,725,623 Source: Kenya National Bureau of Statistics/ Kenya Revenue Authority * Provisional Prices of Principal 6.17. Tables 6.5(a) and 6.5(b) present the average unit prices of selected domestic exports Domestic Exports and imports, respectively. The price of one kilogramme of tea rose by 21.6 per cent in 2017 to and Imports KSh 315 up from KSh 259 the previous year. Similarly, the price for one kilogramme of coffee rose by 14.4 per cent to KSh 540 in 2017. Unit price of exported fish and fish preparations also recorded an increase with one kilogramme selling at KSh 399 in 2017 from KSh 317 in 2016. Similarly, unit price of exported titanium ores and concentrates increased by 43.8 per cent to sell at KSh 25,840 per tonne in 2017. The trend was similar in domestic exports of iron and steel with one tonne selling for KSh 107,772 in 2017 from KSh 94,828 the previous year. 6.18. The average price of one tonne of soda ash continued to exhibit a downward trend from KSh 20,998 in 2016 to KSh 20,694 in 2017. Similarly, unit price of exported cement declined from KSh 10,377 per tonne in 2016 to KSh 9,043 per tonne in 2017. 97 Economic Survey 2018 Table 6.5(a): Average Prices of Principal Domestic Exports, 2013-2017 Commodity Unit 2013 2014 2015 DOMESTIC EXPORTS Fish and fish preparations .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..287 .. .. .. .. .. .. .. .. 280 .. 304 Maize(unmilled,excluding sweet corn) .. .. . .. .. .... .. .... .. .... Tonne .. .... .. .... 155,458 .. .... .. .... .. .... 192,874 .. .... .. .... .. .. 155,622 Meals and flours of wheat .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. ..47,047 .. .. .. .. .. .. .. .. 37,827 .. .. .. .. .. .. 42,403 Horticulture .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..227 .. .. .. .. .. .. 223 228 Sugar confectionery .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg.. .. .. .. .. .. .. ..179 .. .. .. .. .. .. 184 183 Coffee, unroasted .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Kg .. .. .. .. .. .. .. .. ..334 .. .. .. .. .. .. .. 420 472 Tea .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..235 .. .. .. .. 206 293 Margarine and shortening .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Kg .. .. .. .. .. .. .. .. 141 .. .. .. .. .. .. .. .. ..137 .. .. .. .. .. 125 Edible products and preparations, n.e.s. .. … .. … .. … .. … .. …Kg 190 179 220 Beer made from malt .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Lt. .. .. .. .. .. .. .. .. ..75.. .. .. .. .. .. .. ..52 .. .. .. 56 Tobacco and tobacco manufactures .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..584 .. .. .. .. .. .. .. .. ..801 .. .. .. .. .. .. .. 987 Hides and Skins(undressed) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. .. ..47.. .. .. .. .. .. .. ..49 .. .. .. .. .. .. 54 Sisal .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. ..101,904 .. .. .. .. .. .. .. 131,316 168,286 Stone, sand and gravel .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. ..13,139 .. .. .. .. .. .. .. .. 14,139 .. 11,487 Fluorspar .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. 21,978 .. .. .. .. .. .. .. .. 20,029 20,368 Salt .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne 10,288 14,420 15,470 Soda Ash .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. ..18,790 .. .. .. .. .. .. .. 19,774 22,925 1. Titanium ores and concentrates . .. .. .. .. .. .. .. .. .. .. .. .. Tonne 20,198 19,100 Metal scrap .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. ..557,769 .. .. .. .. .. .. .. ..668,406 .. .. .. .. .. .. .. 446,816 Animal and Vegetable oils .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. Kg .. .. .. .. .. .. .. .. ..116 .. .. .. .. .. .. .. ..121 .. .. .. .. .. 124 Alcohols , phenols, phenol-alcohols, and the like………… Lt. 95 96 107 Pigments, paints, varnishes and related materials .. … .. … Kg 136 147 154 Medicinal and pharmaceutical products .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..569 .. .. .. .. .. .. .. .. 624 .. .. .. .. .. .. .. .. ..855 .. Essential oils .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..119 .. .. .. .. .. .. .. .. 124 .. .. 125 Plates, sheets, film, foil and strip, of plastics .. … .. … .. … .. … Kg 305 312 334 Insecticides and fungicides .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. .. 544 .. .. .. .. .. .. .. .. ..504 .. .. .. .. .. 700 Leather .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg.. .. .. .. .. .. .. ..320 .. .. .. .. .. 290 267 Wood manufactures n.e.s .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. ..339,262 .. .. .. .. .. .. .. .. 364,399 .. .. .. .. .. .. .. .. ..234,694 .. .. Paper and paperboard .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. 127,932 .. .. .. .. .. .. .. .. ..129,436 .. .. .. .. .. 143,718 Textile yarn .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Kg .. .. .. .. .. .. .. .. ..432 .. .. .. .. .. .. .. ..450 437 Made-up articles, wholly or chiefly of textile materials, n.e.s. .. … ..Kg … .. … 251 227 204 Glassware .. … .. … .. … … .. … .. … … .. … .. … Kg 82 63 69 Cement .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. 10,027 .. .. .. .. .. .. 10,466 11,327 Iron and steel .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. ..100,105 .. .. .. .. .. .. .. .. ..97,725 .. 98,965 Metal containers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. ..176,684 .. .. .. .. .. .. .. 175,708 226,354 Wire products: nails screws, nuts, etc... .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. 112,271 .. .. .. .. .. .. .. .. ..156,752 .. .. .. .. .. .. .. ..150,659 Household equipment of base metal, n.e.s. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. ..326,149 .. 356,500 349,294 Manufactures of base metal, n.e.s. .. … .. … .. … .. … Tonne 257,235 235,891 221,489 Automatic data processing machines and units thereof;………………… No's 21,434 3,096 24,256 Footwear .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Pair .. .. .. .. .. .. .. .. .. 77 .. .. .. .. .. .. .. .. 89 113 Printed matter … … .. … … … .. … … … .. … … … .. … Tonne 525 474 928 2016 317 160,052 43,610 220 170 472 259 120 219 74 575 61 183,643 6,944 17,313 14,157 20,998 17,968 233,652 105 92 138 986 112 376 879 213 345,992 80,073 410 274 53 10,377 94,828 161,239 141,121 279,561 237,724 13,460 93 774 KSh/Unit 2017* 399 141,418 43,716 248 163 540 315 131 235 88 641 46 163,996 6,265 17,795 12,606 20,694 25,840 263,139 121 75 151 789 115 315 699 210 513,422 148,155 447 268 65 9,043 107,772 208,254 149,362 306,417 223,197 5,066 94 1,158 Source: Kenya National Bureau of Statistics/Kenya Revenue Authority 1 first batch of Titanium ores was exported in 2014 * Provisional. 6.19. On average, the price of one tonne of imported maize rose by 23.9 per cent from KSh 24,480 in 2016 to KSh 30,321 in 2017. A similar trend was observed in the wheat imports, with a tonne exchanging for KSh 22,858 in 2017 from KSh 21,201 in 2016. One tonne of rice nearly doubled from KSh 27,953 in 2016 to KSh 42,841 in 2017. On the contrary, the unit price of one tonne of sugar declined by 5.5 per cent during the review period to KSh 54,957. 6.20. The unit price of one litre of petroleum products imports increased by 26.5 per cent from KSh 34 in 2016 to KSh 42 in 2017. The average price of one tonne of imported chemical fertilizers declined, albeit marginally, for the second consecutive year to exchange for KSh 34,180. A marginal increase in the unit price of a tonne of imported clinker was registered in 2017 with the commodity exchanging for KSh 4,350. A tonne of imported iron and steel recorded a 16.3 per cent increase to KSh 60,798 in 2017 from KSh 52,269 in 2016. 98 Chapter 6: International Trade and Balance of Payments Table 6.5(b): Average Prices of Principal Imports, 2013- 2017 Commodity Unit 2013 2014 2015 2016 Wheat, unmilled .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. .. ..29,223 .. .. .. .. 27,601 25,083 21,201 Rice .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. .. 34,453 33,331 30,198 27,953 Maize, unmilled .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. .. ..24,506 .. .. .. .. .. .. ..20,283 17,098 24,480 Wheat flour .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. .. 63,660 .. .. .. .. .. 51,590 55,294 48,143 Sugars, Mollases and Honey .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. .. ..60,642 .. .. .. .. .. .. ..52,478 .. .. .. .. .. .. .. 54,070 58,179 Edible products and preparations, n.e.s. ………… Tonne 153,102 137,528 113,411 132,632 Textile fibres and their waste .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. 280,434 .. .. .. .. .. .. .. 288,866 .. .. .. .. .. .. .. .. 308,641 296,716 Second - hand clothing .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. .. ..82,574 .. .. .. .. .. .. ..82,402 .. .. .. .. 91,735 97,463 Petroleum products .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Lt. .. .. .. .. .. .. .. .. .. ..67 .. .. .. .. .. .. ..63 42 34 Residual petroleum products, n.e.s. and related materials … Kg 75 74 57 55 Liquefied propane and butane ……………………. Kg 99 97 61 47 Animal and vegetable oils .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. .. .. ..76 .. .. .. .. .. .. ..80 .. .. .. 69 71 Organic & inorganic chemicals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. .. .. ..87.. .. .. .. .. .. ..56.. .. .. .. .. .. 84 81 Pigments, paints, varnishes and related materials …………… Kg 202 220 200 186 Medicinal & Pharmaceauticals Products .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. ..2,334 .. .. .. .. .. .. ..2,515 .. .. .. .. .. .. .. ..2,465 .. .. .. .. 2,337 Essential oils & pefumes .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. .. ..367 .. .. .. .. .. .. .. 333 .. .. .. 378 346 Chemical fertilizers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. ..40,609 .. .. .. .. .. .. ..38,969 .. .. 41,273 34,333 Plastics in primary & non-primary forms .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. ..146,241 .. .. .. .. .. .. ..150,473 .. .. .. .. .. .. .. ..137,724 .. .. .. .. .. .. .. 126,365 Insecticides and fungicides……………………………………………………………………………. Tonne 737,003 708,822 738,833 678,209 Miscellaneous chemical products, n.e.s. ………………………………. Tonne 289,454 333,286 273,018 282,553 Rubber tyres and inner tubes, for wheels of all kinds…………. No. 2,307 2,033 2,075 1,840 Paper and Paperboard .. .. .. . .. .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. . .. .. .. .Tonne .. .. .. . .. .. .. . ..87,829 .. .. . .. .. .. . ..85,281 .. .. . .. .. .. . .. ..88,532 .. . .. .. .. . .. .. ..86,224 . .. .. .. Cement Clinkers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne 5,036 5,021 4,839 4,177 Iron and steel .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Tonne .. .. .. .. .. .. .. .. 66,304 .. .. .. .. .. .. 63,135 57,594 52,269 Non-ferrous metals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Tonne .. .. .. .. .. .. .. ..278,116 .. .. .. .. .. .. ..275,797 .. .. .. 287,634 279,256 Structures and parts of structures of iron, steel or aluminium ……… Tonne 190,280 168,826 150,822 164,846 Hand & machine tools .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..Kg .. .. .. .. .. .. .. .. ..306 .. .. .. .. .. .. ..359 .. 288 245 Manufactures of base metal, n.e.s. ……………….. Tonne 270,469 258,327 165,995 197,718 Automatic data processing machines and units thereof; ……………….. No. 9,285 24,024 20,831 18,491 Motorcycles and cycles fitted with an auxilliary motor ………………… No. 50,253 53,953 55,888 56,510 Bicycles, assembled or partly assembled .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..No. .. .. .. .. .. .. .. .. 2,583 .. .. .. .. .. .. .. ..2,801 .. .. .. .. .. .. .. ..3,083 .. .. .. .. 3,302 Road Motor Vehicles .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. No. .. .. .. .. .. .. ..903,108 .. .. .. .. .. .. .. 983,339 .. .. .. 1,071,563 1,009,082 Prefabricated buldings ………………………………. Tonne 224,952 245,686 233,249 254,944 Printed matter ……………………………………….. Tonne 427,753 471,934 379,909 501,803 Articles, n.e.s., of plastics ………………………….. Tonne 148,883 137,511 185,452 154,050 Source: Kenya National Bureau of Statistics/Kenya Revenue Authority * Provisional. 99 KSh/Unit 2017* 22,858 42,841 30,321 44,313 54,957 113,760 267,671 96,132 42 55 59 81 93 177 2,244 341 34,180 135,104 661,190 316,984 1,727 90,346 4,350 60,798 367,154 192,442 277 201,823 20,263 57,241 2,870 902,141 213,480 1,000,032 194,780 Economic Survey 2018 Composition of 6.21. Table 6.6 shows the composition of domestic exports by Broad Economic Category for Exports 2013 to 2017. Domestic exports of food and beverages increased by 11.3 per cent to KSh 254.7 billion and accounted for 48.0 per cent of all the domestic exports in 2017. Domestic exports of primary food and beverages for household consumption constituted the bulk of exports within this category at 72.7 per cent. The category of consumer goods not elsewhere specified continued to be the second leading source of export earnings amounting to KSh 133.7 billion, with a share of 25.2 per cent of the total domestic exports. There was a marginal increase in the value of domestic exports of non-food industrial supplies during the review period. Table 6.6: Domestic Exports by Broad Economic Category, 2013-2017 DESCRIPTION FOOD AND BEVERAGES Primary For Industry For Household Consumption Processed For Industry For Household Consumption INDUSTRIAL SUPPLIES (Non-Food) Primary Processed FUEL AND LUBRICANTS Primary Processed Motor Spirit Other MACHINERY & OTHER CAPITAL EQUIPMENT Machinery & Other Capital Equipment Parts and Accessories TRANSPORT EQUIPMENT Passenger Motor Vehicles Other For Industry Non-Industrial Parts and Accessories CONSUMER GOODS NOT ELSEWHERE Durable Semi-Durable Non-Durable GOODS NOT ELSEWHERE SPECIFIED TOTAL SHARES: Food and Beverages Industrial Supplies (Non-Food) Fuel and Lubricants Machinery and other Capital Equipment Transport Equipment Consumer Goods not elsewhere specified Goods not elsewhere specified TOTAL 2013 195,094 153,613 18,982 134,631 41,482 5,256 36,226 126,192 24,669 101,523 1,610 8 1,602 190 1,412 9,736 7,867 1,868 8,130 122 4,522 4,402 120 3,487 113,537 3,819 31,404 78,314 1,390 455,689 2014 188,094 147,099 22,101 124,998 40,995 4,312 36,683 124,452 39,428 85,024 3,281 5 3,275 60 3,215 7,503 6,116 1,387 7,235 92 3,505 3,250 255 3,638 128,463 4,503 35,417 88,544 1,544 460,572 2015 223,281 182,774 22,630 160,145 40,507 2,478 38,029 129,288 40,896 88,392 6,288 9 6,279 38 6,240 9,522 7,565 1,957 7,118 454 3,744 3,571 173 2,921 124,180 1,449 35,088 87,643 31 499,708 2016 228,789 187,837 23,471 164,366 40,952 3,516 37,436 124,176 44,739 79,437 4,546 13 4,533 125 4,407 13,257 11,845 1,412 5,826 516 3,551 3,474 77 1,759 129,879 1,258 35,462 93,159 77 506,548 KSh Million 2017* 254,686 211,355 26,255 185,100 43,331 3,209 40,122 125,402 48,247 77,155 5,253 48 5,205 45 5,160 7,086 5,860 1,225 4,431 259 2,100 2,012 88 2,073 133,744 1,407 35,388 96,949 16 530,617 42.81 27.69 0.35 2.14 1.78 24.92 0.31 100.00 40.84 27.02 0.71 1.63 1.57 27.89 0.34 100.00 44.68 25.87 1.26 1.91 1.42 24.85 0.01 100.00 45.17 24.51 0.90 2.62 1.15 25.64 0.02 100.00 48.00 23.63 0.99 1.34 0.84 25.21 0.00 100.00 * Provisional 100 Chapter 6: International Trade and Balance of Payments Composition of 6.22. The composition of imports by Broad Economic Category for 2013 to 2017 is presented Imports in Table 6.7. Non-food industrial supplies remained the dominant category of imports with a share of 31.9 per cent of the total imports in 2017. Imports of processed non-food industrial supplies which constitute the bulk of imports in this category increased by 6.9 per cent to KSh 521.9 billion in 2017. Imports of machinery and other capital equipment declined marginally from KSh 312.1 billion in 2016 to KSh 310.8 billion in 2017 but emerged the second leading category of imports in 2017, and accounted for 18.0 per cent of the total imports. Expenditure on fuels and lubricants accounted for 16.1 per cent of the total import expenditure in 2017, up from a share of 14.5 per cent in 2016. This was largely driven by imports of processed fuels and lubricants which rose from KSh 204.3 billion in 2016 to KSh 272.9 billion in 2017. Expenditure on imports of food and beverages more than doubled from KSh 114.6 billion in 2016 to KSh 245.3 billion in 2017, in a bid to cushion against the food shortage as a result of the drought experienced in the country. The surge in imports within this category was observed for both imports of primary and processed food and beverages. This resulted in an increase of 6.2 percentage points in the contribution of imports of food and beverages to the total imports in 2017. Imports of other industrial transport equipment were the main drivers of growth in imports of transport equipment which rose from KSh 147.5 billion in 2016 to KSh 197.4 billion in 2017. 101 Economic Survey 2018 Table 6.7: Total Imports by Broad Economic Category, 2013-2017 KSh Million 2013 2014 2015 2016 2017* FOOD AND BEVERAGES .. .. .. .. .. .. .. .. .. .. .. .. 101,590 .. .. .. .. ..111,838 .. .. .. .. .. .. 123,444 .. .. .. .. .. ..114,560 .. .. 245,280 Primary .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 48,048 .. .. .. .. .. .. ..59,437 .. .. .. .. .. .. .. .. 66,528 .. .. .. .. .. .. .. 48,528 114,010 For Industry .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..39,624 .. .. .. .. .. .. 50,767 .. .. .. .. .. .. .. .. 53,985 .. .. .. .. .. .. .. .. 37,677 .. .. .. .. .. 90,909 For Household Consumption .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..8,425 .. .. .. .. .. .. ..8,670 .. .. .. .. .. .. .. ..12,543 .. .. .. .. .. .. .. ..10,850 .. .. .. .. .. .. .. ..23,101 .. .. Processed .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 53,542 .. .. .. .. .. .. 52,401 .. .. .. .. .. .. .. .. ..56,915 .. .. .. .. .. .. .. ..66,033 .. .. 131,270 For Industry .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 8,933 .. .. .. .. .. .. 8,981 .. .. .. .. .. .. .. .. 10,934 .. .. .. .. .. .. .. .. 15,125 .. .. .. .. .. 57,459 For Household Consumption .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..44,609 .. .. .. .. .. .. 43,420 .. .. .. .. .. .. .. .. 45,981 .. .. .. .. .. .. .. .. 50,907 .. .. .. .. .. .. .. .. 73,810 .. .. INDUSTRIAL SUPPLIES (Non-Food) .. .. .. .. .. .. .. .. .. .. 450,479 .. .. .. .. .. .. ..462,172 .. .. .. .. .. .. .. .. 524,556 .. .. .. .. .. .. .. .. 518,672 .. .. .. .. .. .. .. .. ..551,065 .. .. .. .. .. .. .. Primary .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 25,862 .. .. .. .. .. .. 26,051 .. .. .. .. .. .. .. .. ..29,318 .. .. .. .. .. .. .. ..30,389 .. .. 29,144 Processed .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..424,617 .. .. .. .. .. .. 436,121 .. .. .. .. .. .. .. .. 495,238 .. .. .. .. .. .. .. .. 488,283 .. .. .. 521,921 FUEL AND LUBRICANTS .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..326,305 .. .. .. .. .. .. 346,745 .. .. .. .. .. .. .. .. ..237,295 .. .. .. .. .. .. .. ..208,055 .. .. .. .. .. .. .. ..277,653 .. .. .. Primary .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 43,940 .. .. .. .. .. .. ..3,998 .. .. .. .. .. .. .. .. ..3,789 .. .. .. .. .. .. .. ..3,797 .. 4,783 Processed .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..282,365 .. .. .. .. .. .. 342,747 .. .. .. .. .. .. .. .. 233,506 .. .. .. .. .. .. .. .. 204,258 .. .. .. 272,870 Motor Spirit .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 58,685 .. .. .. .. .. .. 70,683 .. .. .. .. .. .. .. .. ..57,035 .. .. .. .. .. .. .. ..53,148 .. .. .. .. 70,873 Other .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..223,680 .. .. .. .. .. .. 272,064 .. .. .. .. .. .. .. .. 176,471 .. .. .. .. .. .. .. .. 151,109 .. .. .. 201,996 MACHINERY AND OTHER CAPITAL EQUIPMENT .. .. .. .. ..250,873 .. .. .. 278,709 287,544 312,076 310,772 Machinery and Other Capital Equipment .. .. .. .. .. .. .. .. .. .. 200,349 .. .. .. .. .. .. ..225,337 .. .. .. .. .. .. .. .. 242,172 .. .. .. .. .. .. .. .. 251,200 .. .. .. .. .. .. .. .. ..260,182 .. .. .. .. Parts and Accessories .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..50,524 .. .. .. .. .. .. 53,372 .. .. .. .. .. .. .. .. ..45,372 .. .. .. .. .. .. .. ..60,876 .. .. .. .. .. .. 50,590 TRANSPORT EQUIPMENT .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..160,841 .. .. .. .. .. .. 278,706 .. .. .. .. .. .. .. .. ..266,874 .. .. .. .. .. .. .. ..147,466 .. .. .. .. .. .. .. ..197,402 .. .. .. .. Passenger Motor Vehicles .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..44,604 .. .. .. .. .. .. 51,430 .. .. .. .. .. .. .. .. 56,138 .. .. .. .. .. .. .. .. 50,047 .. .. .. .. .. .. .. .. 53,894 .. 103,199 Other .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..72,054 .. .. .. .. .. ..191,815 .. .. .. .. .. .. .. .. ..170,092 .. .. .. .. .. .. .. .. 58,736 .. Industrial .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..61,998 .. .. .. .. .. ..181,963 .. .. .. .. .. .. .. .. ..158,164 .. .. .. .. .. .. .. .. 48,951 .. .. .. 90,422 Non-Industrial .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..10,055 .. .. .. .. .. .. .. 9,853 .. .. .. .. .. .. .. .. 11,928 .. .. .. .. .. .. .. .. 9,786 .. .. .. .. .. 12,777 Parts and Accessories .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..44,183 .. .. .. .. .. .. ..35,461 .. .. .. .. .. .. .. .. 40,645 .. .. .. .. .. .. .. .. 38,682 .. .. .. .. .. 40,309 CONSUMER GOODS NOT ELSEWHERE SPECIFIED .. .. .. .. .. .. 96,299 113,537 125,884 126,668 138,256 Durable .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 24,386 .. .. .. .. .. .. ..22,469 .. .. .. .. .. .. .. .. 23,899 .. .. .. .. .. .. .. .. 23,736 .. .. .. 25,779 Semi-Durable .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..20,738 .. .. .. .. .. .. 27,853 .. .. .. .. .. .. .. .. ..32,100 .. .. .. .. .. .. .. ..30,795 .. .. .. .. 39,025 Non-Durable .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 51,175 .. .. .. .. .. .. ..63,215 .. .. .. .. .. .. .. .. 69,884 .. .. .. .. .. .. .. .. 72,137 .. .. .. .. .. 73,452 GOODS NOT ELSEWHERE SPECIFIED .. .. .. .. .. .. .. .. .. 26,927 .. .. .. .. .. .. ..26,616 .. .. .. .. .. .. .. .. 11,960 .. .. .. .. .. .. .. .. ..4,257 .. .. .. .. .. .. .. ..5,194 .. .. .. .. .. .. .. .. TOTAL .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..1,413,316 .. .. .. .. .. .. ..1,618,321 .. .. .. .. .. .. .. .. 1,577,557 .. .. .. .. .. .. .. .. 1,431,755 .. .. .. .. .. 1,725,623 SHARES: Food and Beverages .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 7.19 .. .. .. .. .. .. ..6.91 .. .. .. .. .. .. .. .. ..7.82 .. .. .. .. .. .. ..8.00 .. .. .. .. .. .. 14.21 Industrial Supplies (Non-Food) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..31.87 .. .. .. .. .. .. 28.56 .. .. .. .. .. .. .. .. 33.25 .. .. .. .. .. .. .. .. 36.23 .. .. .. .. .. .. .. .. 31.93 .. .. Fuel and Lubricants .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 23.09 .. .. .. .. .. .. ..21.43 .. .. .. .. .. .. .. ..15.04 .. .. .. .. .. .. .. ..14.53 .. .. .. .. .. .. 16.09 Machinery and other Capital Equipment .. .. .. .. .. .. .. .. .. .. .. .. ..17.75 .. .. .. .. .. .. ..17.22 .. .. .. .. .. .. .. ..18.23 .. .. .. .. .. .. .. ..21.80 .. .. .. .. .. .. .. ..18.01 .. .. .. .. Transport Equipment .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 11.38 .. .. .. .. .. .. ..17.22 .. .. .. .. .. .. .. .. 16.92 .. .. .. .. .. .. .. ..10.30 .. .. .. .. .. .. .. 11.44 Consumer Goods not elsewhere specified .. .. .. .. .. .. .. .. .. .. .. .. .. 6.81 .. .. .. .. .. .. ..7.02 .. .. .. .. .. .. .. ..7.98 .. .. .. .. .. .. .. ..8.85 .. .. .. .. .. .. .. ..8.01 .. .. .. Goods not elsewhere specified .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..1.91 .. .. .. .. .. .. 1.64 .. .. .. .. .. .. .. .. ..0.76 .. .. .. .. .. .. .. 0.30 .. .. .. .. .. .. .. .. 0.30 .. TOTAL .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 100.00 .. .. .. .. .. .. ..100.00 .. .. .. .. .. .. .. .. ..100.00 .. .. .. .. .. .. .. ..100.00 .. .. .. .. .. 100.00 * Provisional 102 Chapter 6: International Trade and Balance of Payments Direction of Trade 6.23. The values of total export earnings rose from KSh 578.1 billion in 2016 to KSh 594.1 billion in 2017 as presented in Table 6.8. Total exports to Africa accounted for 37.7 per cent of total exports in 2017, down from 40.6 per cent the previous year. The region remained the leading destination of Kenya’s exports despite a 4.6 per cent decline in the value of total exports, during the year under review. The decline in total export earnings from the East African Community (EAC) region is partly attributed to a reduction in the value of total exports to Africa, since the region accounts for more than half of total exports to the continent. 6.24. Total export earnings from Asia continued to rise for the third year in a row to KSh 162.5 billion in 2017. The growth in total export earnings from the region was largely in earnings from exports to the Far East which grew by 23.5 per cent to KSh 111.1 billion in 2017. Total exports to Pakistan rose from KSh 40.3 billion in 2016 to KSh 64.1 billion in 2017, mainly on account of a 59.1 per cent increase in domestic exports of tea which accounted for 95.9 per cent of domestic exports to this destination. 6.25. The value of total exports to the European Union (EU) rose by 3.6 per cent to KSh 125.6 billion in 2017 and constituted 21.1 per cent of total exports. The value of total exports to Netherlands, United Kingdom, France and Belgium went up, jointly amounting to KSh 96.2 billion in 2017, up from KSh 92.9 billion in 2016. The value of total exports to Germany, however, continued to decline, amounting to KSh 11.7 billion in 2017. 6.26. Total export earnings from America continued to exhibit an upward trend during the review period. The sustained growth in total exports to the region is largely attributable to growth in total exports to the USA which accounts for more than 80.0 per cent of total exports to the region. The main export commodities to the United States are articles of apparel and clothing accessories which constitute more than 60 per cent of total domestic exports to the country. In 2017, domestic exports of articles of apparels rose by 5.9 per cent to KSh 30.2 billion. Other commodities that recorded increased earnings from this destination included; coffee (59.5%), edible nuts (42.3%) and tea (8.0%). 103 Economic Survey 2018 Table 6.8: Values of Total Exports by Destination, 2013-2017 EUROPE WESTERN EUROPE: European Union Belgium Finland France Germany Italy Netherlands Spain Sweden United Kingdom Poland Other Total Other Western Europe Total Western Europe EASTERN EUROPE: Russia Federation Kazakhstan Other Total Eastern Europe TOTAL, EUROPE AMERICA United States of America Canada Other TOTAL AMERICA AFRICA EAC Uganda Tanzania Rwanda Burundi Total EAC Rest of Africa South Africa .................................... Egypt ........................................... Somalia ...................................................... Ethiopia .................................................... Sudan ....................................................... South Sudan ............................................... Democratic Republic of Congo .................. Zambia ..................................................... Other1 ................................................ TOTAL AFRICA ......................................... ASIA.................................................................... MIDDLE EAST: .............................................. Iran .............................................. Israel ........................................... Jordan .......................................... Saudi Arabia ...................................... United Arab Emirates ........................... Yemen Arab Republic .................................. Other ............................................. Total Middle East............................................. FAR EAST ......................................................... China(Mainland) .............................. India ............................................. Indonesia .......................................... Japan ............................................. Korea Republic (South Korea) ........... Pakistan ........................................ Singapore ....................................... Afghanistan ................................................ Thailand ..................................................... Other ................................................ Total Far East.................................................... TOTAL, ASIA ............................................ AUSTRALIA & OCEANIC.............................. Australia ........................................... Other .............................................. TOTAL Australia & Oceania .................... All Other Countries .......................... Aircraft and Ships Stores ..................... Total All Other Counties nes ....................... GRAND TOTAL EXPORTS ..................... 2013 2014 2015 2016 KSh Million 2017* 6,193 1,106 5,379 8,244 4,541 32,578 2,018 2,503 37,613 1,630 2,840 104,645 6,948 111,594 6,730 1,514 5,689 10,786 6,960 40,614 2,627 2,731 35,868 1,847 4,591 119,958 8,080 128,038 4,540 1,973 6,074 12,508 5,248 42,041 3,239 2,510 40,668 2,263 4,867 125,932 8,527 134,460 5,395 1,412 6,412 11,864 3,733 43,492 2,302 3,066 37,581 1,804 4,205 121,267 9,631 130,899 6,025 1,030 7,773 11,741 3,409 43,892 2,963 2,863 38,553 2,214 5,153 125,615 8,946 134,561 6,831 4,346 528 11,705 123,299 7,124 3,267 536 10,927 138,965 8,065 2,855 565 11,484 145,944 6,996 3,028 611 10,635 141,534 7,997 3,433 995 12,425 146,986 29,936 1,297 2,533 33,765 38,290 1,690 5,684 45,664 40,725 2,289 7,575 50,589 43,354 5,729 3,808 52,891 47,270 3,634 3,861 54,765 65,362 40,496 13,500 5,599 124,957 60,783 42,725 14,441 7,849 125,798 68,574 33,663 17,950 6,595 126,782 62,163 34,797 17,500 7,242 121,702 61,814 28,521 17,124 7,382 114,841 3,277 17,001 16,940 4,885 6,425 16,680 18,437 6,288 5,936 17,509 13,202 6,919 6,241 19,823 21,052 6,668 4,338 20,166 15,210 7,154 5,967 17,065 20,673 5,909 4,149 20,619 17,932 8,053 5,361 16,326 20,035 5,172 2,759 19,005 19,661 6,982 6,907 16,752 18,879 3,869 16,584 18,215 18,921 231,474 241,363 242,187 15,325 234,673 14,210 223,865 2,798 1,126 260 3,190 25,144 5,044 1,941 39,502 2,283 1,337 309 4,879 20,198 4,356 2,445 35,806 1,152 1,449 853 5,551 29,239 4,023 2,941 45,207 1,757 1,064 1,059 6,727 30,974 4,803 4,140 50,525 1,524 747 1,594 7,846 26,370 6,387 6,907 51,375 4,199 9,475 1,252 2,711 1,077 24,130 1,679 15,861 1,620 6,052 68,056 107,558 6,597 8,753 885 3,526 2,532 22,022 1,169 10,373 1,657 6,700 64,212 100,018 8,471 8,954 1,323 4,054 1,734 35,250 1,404 14,502 2,071 7,782 85,545 130,752 10,061 11,919 934 4,071 1,869 40,254 357 10,686 1,727 8,132 90,011 140,536 9,998 5,982 1,191 4,505 2,353 64,058 375 3,147 5,001 14,477 111,086 162,460 2,663 195 2,858 1,456 1,876 3,332 502,286 3,029 436 3,465 1,166 6,595 7,761 537,236 2,313 1,089 3,402 800 7,372 8,172 581,045 2,203 3,920 6,123 1,045 1,265 2,310 578,067 2,285 1,292 3,577 1,213 1,263 2,476 594,128 Source: Kenya National Bureau of Statistics/ Kenya Revenue Authority Total Exports= Domestic Exports plus Re-Exports *Provisional 1See Table 710 for details 104 Chapter 6: International Trade and Balance of Payments 6.27. Total expenditure on imports rose by 20.5 per cent in 2017 to KSh 1,725.6 billion as shown in Table 6.9. The value of imports from the Far East and Middle East Asia rose by 6.8 per cent and 50.7 per cent, respectively, in 2017. This resulted in a 15.8 per cent increase in the value of imports from Asia which amounted to KSh 1,107.6 billion during the review period. Consequently, the value of imports from Asia accounted for 64.2 per cent of total imports in 2017. Imports from China which have been growing steadily over time amounted to KSh 390.6 billion in 2017, representing an increase of 15.8 per cent. The value of imports from the United Arab Emirates (UAE) and Saudi Arabia also registered significant increase of 51.2 per cent and 65.5 per cent to KSh 138.4 billion and KSh 114.6 billion, respectively, in 2017. Other countries within Asia that registered increase in the value of imports included; Indonesia (25.3%), Pakistan (40.3%), Thailand (74.2%), Malaysia (45.0%) and South Korea (23.8%). On the contrary, value of imports from India which have been on a downward trend since 2014, declined to KSh 170.4 billion in 2017. 6.28. In 2017, the value imports from America nearly doubled in 2017, accounting for 7.5 per cent of total value of imports. Increase in import expenditure within the region were recorded for Brazil, Mexico and Argentina which jointly rose from KSh 7.5 billion in 2016 to KSh 58.5 billion in 2017. The increase in import expenditure from Brazil was on account of a substantial increase in sugar imports. Maize imports which accounted for 90.4 per cent of total imports from Mexico contributed to the surge in imports from the country in 2017. 6.29. The value of imports from the European Union (EU) continued to decline for the second consecutive year and amounted to KSh 206.5 billion in 2017. The value imports from the two leading source countries; Germany and the United Kingdom, jointly declined by 5.0 per cent to KSh 73.0 billion in 2017. A notable decline was also recorded in value of imports from Italy (5.7%), Spain (3.0%), Denmark (11.5%) and Ireland (53.1%). However, the situation was different for France, Netherlands and Belgium which recorded an increase in the value of imports during the review period, from a combined expenditure of KSh 51.5 billion in 2016 to KSh 61.7 billion in 2017. 105 Economic Survey 2018 Table 6.9: Values of Imports by Origin, 2013-2017 KSh Million DESCRIPTION 2013 2014 2015 2016 2017* EUROPE WESTERN EUROPE European Union Belgium ……………………………………… 13,059………………………………………….……………………………………….. 13,159 14,966 13,496 15,364 5,415 3,339 2,123 Finland ……………………………………… 3,665………………………………………….……………………………………….. 3,840 France ……………………………………… ……………………………… 20,666 ………………………………………….……………………………………….. 22,447 21,066 21,534 26,835 47,381 43,353 42,989 Germany ……………………………………… 37,488 ………………………………………….……………………………………….. 47,409 Italy ……………………………………… 20,324………………………………………….……………………………………….. 19,946 22,722 23,738 22,388 Netherlands ……………………………………… 20,527 16,510 19,539 24,788 ………………………………………….……………………………………….. 18,792 Spain ……………………………………… 8,365………………………………………….……………………………………….. 12,516 11,376 11,023 10,696 6,364 5,844 6,256 Sweden ……………………………………… 7,091 ………………………………………….……………………………………….. 6,233 United Kingdom ……………………………………… ………………………………………….……………………………………….. 49,020 47,037 42,970 33,487 30,050 Denmark …………………………………………………………… 4,633 4,223 4,097 4,252 3,764 Ireland ……………………………………………………………………… 4,383 5,689 7,525 6,949 3,256 Czech Republic ……………………………………………………. 1,929 3,300 4,443 2,073 1,959 Austria …...…………………………………………………………... 1,843 2,635 2,680 2,707 2,344 8,643 6,020 6,354 Poland …………………………………………………………………. 2,290 4,720 Hungary ……………………………………………………………….. 1,627 1,449 2,565 2,494 1,253 Other ……………………………………… 6,313 ………………………………………….……………………………………….. 13,363 12,494 14,519 8,881 Total 207,628 225,416 232,720 212,567 206,534 Other Western Europe 23,969 20,235 27,112 23,836 29,696 Total Western Europe 231,597 245,651 259,832 236,402 236,230 EASTERN EUROPE Russian Federation ……………………………………… 23,182 ………………………………………….……………………………………….. 24,260 36,179 23,118 28,583 Ukraine …………………………………………………………………. 13,708 3,819 9,517 15,008 6,118 Other ……………………………………… ………………………………………….……………………………………….. 842 789 2,148 2,168 1,059 Total 39,039 40,294 35,759 28,921 46,485 TOTAL, EUROPE 270,635 285,945 295,592 265,324 282,715 AMERICA United States of America ……………………………………… 57,412 ………………………………………….……………………………………….. 47,819 57,377 168,720 126,041 Canada ……………………………………… 6,525 ………………………………………….……………………………………….. 7,807 9,902 7,886 7,754 Brazil ……………………………………………………………………… 15,603 4,370 27,819 6,094 6,968 Mexico ………………………………………………… 1,650 2,308 21,140 1,576 2,377 Argentina ……………………………………………… 1,152 852 9,536 1,960 1,545 Other ……………………………………… ……… .. 2,134 1,239 1,371 2,035 2,772 TOTAL AMERICA 84,477 187,476 146,056 65,190 128,547 AFRICA South Africa ……………………………………… 49,857 61,880 70,724 ………………………………………….……………………………………….. 63,893 61,311 Tanzania ……………………………………… 12,806 17,180 11,666 ………………………………………….……………………………………….. 18,364 16,906 Uganda ……………………………………… 19,276 42,041 16,086 ………………………………………….……………………………………….. 17,549 22,284 Swaziland ……………………………………………………………… 6,398 11,231 5,436 5,594 7,162 Mauritius ……………………………………………………………… 5,174 7,318 2,011 2,794 2,713 Rwanda ……………………………………………………………… 775 1,684 1,006 716 790 Zambia ………………………………………………………………… 4,201 7,739 2,894 4,380 3,895 1 Other 32,851 34,037 41,755 51,472 ……………………………………… 38,016………………………………………….……………………………………….. TOTAL AFRICA 147,839 146,141 149,097 140,241 200,544 ASIA MIDDLE EAST 13,169 Iran ……………………………………… 6,134 2,434………………………………………….……………………………………….. 3,788 3,808 Israel ……………………………………… 5,027 6,293 9,437 ………………………………………….……………………………………….. 5,659 10,410 Jordan ……………………………………… 806 3,198 799 ………………………………………….……………………………………….. 789 945 Saudi Arabia ……………………………………… ………………………………………….……………………………………….. 69,259 114,607 41,423 56,565 55,306 United Arab Emirates ……………………………………… ………………………………………….……………………………………….. 91,482 138,359 117,360 103,255 90,573 8,095 8,845 Bahrain ……………………………………………………………… 34,977 41,367 5,759 Oman ……………………………………………………………………. 5,697 5,107 3,819 10,518 5,942 Other ……………………………………… 8,186 3,823 9,631 ………………………………………….……………………………………….. 6,028 5,775 Total Middle East 219,880 227,969 178,517 194,687 293,400 FAR EAST China ……………………………………… ………………………………………….……………………………………….. 337,450 390,622 182,356 248,648 320,816 India ……………………………………… 205,499 170,410 . 258,230 ………………………………………….……………………………………….. 264,536 252,523 Indonesia ……………………………………… 45,372 56,862 45,041 ………………………………………….……………………………………….. 48,598 45,939 Japan ……………………………………… 82,410 81,663 83,720 ………………………………………….……………………………………….. 86,554 88,239 Korea South ……………………………………… ………………………………………….……………………………………….. 14,211 17,595 24,471 29,105 18,822 Pakistan ……………………………………… 18,175 25,497 15,647 ………………………………………….……………………………………….. 18,020 18,347 Singapore ……………………………………… 6,795 5,829 19,437 ………………………………………….……………………………………….. 14,624 9,612 Taiwan ……………………………………………………………….. 12,296 11,814 12,304 15,541 12,391 Malaysia ………………………………………………………… 12,321 17,868 9,349 11,066 10,556 Thailand …………………………………………………………. 12,059 21,007 12,673 12,527 12,913 Other ……………………………………… ………………………………………….……………………………………….. 15,406 15,016 13,593 12,984 12,976 Total Far East 676,820 762,204 803,133 761,993 814,182 TOTAL, ASIA 896,700 990,173 981,650 956,680 1,107,583 AUSTRALIA & OCEANIA Australia ……………………………………… 4,032 2,878 4,934 12,422 ………………………………………….……………………………………….. 7,069 Other ……………………………………… 787 1,190 1,093 618………………………………………….……………………………………….. 431 6,027 TOTAL AUSTRALIA & OCEANIA 13,040 7,500 4,820 4,068 All Other Countries N.E.S. 342 250 206 624 1,086 Total All Other Counties n.e.s 624 1,086 342 250 206 GRAND TOTAL 1,413,316 1,618,321 Source: Kenya National Bureau of Statistics/ Kenya Revenue Authority *Provisional 1,577,557 1 See table 7.10 for details 106 1,431,753 1,725,622 Chapter 6: International Trade and Balance of Payments 6.30. As presented in Table 6.10, the value of imports from Africa accounted for 11.6 per cent of the total import bill in 2017 at KSh 200.5 billion, representing 43.0 per cent increase. Imports from Common Market for Eastern and Southern Africa (COMESA) accounted for 57.5 per cent of total value of imports from Africa in 2017. Uganda and Egypt were the dominant sources of imports with a combined value of KSh 77.4 billion. Imports from Uganda more than doubled from KSh 19.3 billion in 2016 to KSh 42.0 billion in 2017 on account of increased imports of; milk and milk products (excluding butter and cheese), beans, animal feeds, maize, and other unmilled cereals (excluding wheat and rice). The value of imports of these commodities accounted for 66.2 per cent of the total imports from Uganda in 2017. The increase in imports from Egypt was partly attributable to increase in the value of imports of soap and other cleansing preparations; paintings and drawings; paper and paperboard; and computer monitors and projectors. Imports of sorghum from Sudan caused the significant increase in imports from this origin in 2017. 6.31. Imports from South Africa rose from KSh 49.9 billion in 2016 to KSh 61.9 billion in 2017, largely driven by an increase in the value of imported maize; iron and steel; road motor vehicles; and coal. The value of maize imports from South Africa was KSh 7.7 billion and accounted for 19.1 per cent of the total import expenditure, in 2017. 6.32. Total exports to Africa continued on a downward trend for the second year to KSh 223.9 billion in 2017, with a share of 37.7 per cent of the total export earnings during the year. The trend in total exports to Africa was consistent with the performance of total exports to the COMESA region which declined by 2.2 per cent to KSh 166.4 billion in 2017. The value of total exports to COMESA accounted for 74.3 per cent of the value of total exports to Africa. Destinations that recorded reduced earnings from exports within the region included; Egypt (7.8%), Democratic Republic of Congo (5.8%), Ethiopia (13.3%), Zambia (25.2%), Djibouti (40.9%) and the Comoros (50.4%). The decline in the value of domestic exports of key commodities to Egypt such as tea; tobacco and tobacco manufactures; and paper and paperboard, resulted to the decrease in the value of export earnings from this destination in 2017. Similarly, the value of domestic exports of assorted commodities including; insecticides, rubber tyres, sugar confectionery, prefabricated buildings, stoppers, caps and lids of containers drove the decline in earnings from exports to Ethiopia. 6.33. Total export earnings from the EAC decreased by 5.6 per cent in 2017 to KSh 114.8 billion. This was partly as a result of reduction in the value of total exports to Uganda from KSh 62.2 billion to KSh 61.8 billion, Tanzania from KSh 34.8 billion to KSh 28.5 billion and Rwanda from KSh 17.5 billion to KSh 17.1 billion in 2017. Earnings from domestic exports of cement to Uganda fell by a further 21.7 per cent in 2017. Other commodity exports to Uganda that showed decline in earnings during the year included: alcohols; phenols and their derivatives (81.7%); salt (10.2%); medicinal and pharmaceutical products (26.6%); and products of iron and steel (13.4%). 107 124,957,051 125,797,882 126,782,115 33,663,396 68,573,904 17,949,831 6,594,983 TOTAL EXPORTS 2015 108 2 EAC Partner States are also members of COMESA except Tanzania Does not include South Sudan 1 Source: Kenya National Bureau of Statistics/Kenya Revenue Authority * Provisional COMESA2 478,664 Comoros ………………………………………….. 880,126 1,103,877 Congo, D.R ………………………………………….. 18,436,875 21,052,099 20,673,353 Djibouti ………………………………………….. 1,227,723 1,011,457 1,110,081 Egypt ………………………………………….. 17,509,233 20,166,293 17,001,458 Eritrea ………………………………………….. 306,469 396,846 449,632 Ethiopia ………………………………………….. 4,885,115 6,918,973 7,154,246 Libya ………………………………………….. 112,165 128,998 131,594 Madagascar ………………………………………….. 312,625 429,997 449,833 Malawi ………………………………………….. 3,497,283 3,326,340 3,047,465 Mauritius 956,755 1,060,761 1,083,200 Seychelles ………………………………………….. 379,669 321,581 177,399 Sudan ………………………………………….. 6,424,532 6,241,153 5,966,860 South Sudan ………………………………………….. 16,680,368 19,822,572 17,065,487 Swaziland ………………………………………….. 11,741 17,929 103,827 Zambia ………………………………………….. 6,287,696 6,667,898 5,909,279 Zimbabwe ………………………………………….. 1,809,563 1,663,268 1,217,307 Sub-Total, COMESA 79,210,163 86,903,585 85,953,916 Total, COMESA 163,670,721 169,976,556 179,072,634 OTHER COUNTRIES Algeria ………………………………………….. 545,188 108,318 361,859 Angola ………………………………………….. 178,648 108,415 102,377 Ghana ………………………………………….. 631,527 478,990 490,556 Nigeria ………………………………………….. 2,350,105 2,429,578 3,659,278 Lesotho ………………………………………….. 33,351 47,556 61,418 Mozambique ………………………………………….. 1,407,050 1,809,120 1,292,855 Reunion ………………………………………….. 126,331 127,782 127,091 Somalia ………………………………………….. 16,940,454 13,201,901 15,209,983 South Africa ………………………………………….. 3,276,892 5,936,345 4,338,440 All Other African Countries ………………………………………….. 1,817,737 4,413,643 3,806,935 Sub-Total 27,307,284 28,661,648 29,450,792 TOTAL AFRICA 231,474,498 241,363,115 242,186,823 Percentage of all Exports/Imports 46.1 44.9 41.7 Total, EAC1 2013 2014 EAST AFRICAN COMMUNITY (EAC) Tanzania ………………………………………….. 40,496,493 42,724,911 Uganda ………………………………………….. 65,361,907 60,782,664 Rwanda ………………………………………….. 14,440,844 13,499,695 Burundi ………………………………………….. 5,598,956 7,849,463 ZONES/COUNTRIES Table 6.10: Trade with African Countries, 2013-2017 559,762 18,879,330 779,675 19,005,228 175,703 6,982,230 47,493 328,854 2,972,319 1,111,361 174,562 6,906,507 16,752,051 56,433 3,868,968 1,506,220 80,106,696 166,426,751 30,196 39,138 542,357 2,649,019 325,832 1,215,776 149,490 19,661,489 2,758,621 1,545,464 28,917,383 223,865,198 37.7 122,583 74,733 534,359 2,559,422 28,801 2,358,730 160,438 17,931,907 4,149,033 1,721,975 29,641,979 234,673,144 40.6 114,841,119 121,701,806 1,127,582 20,035,483 1,318,178 20,618,514 117,935 8,052,619 126,330 205,535 2,791,807 976,999 161,718 5,360,749 16,326,135 24,154 5,171,559 914,062 83,329,358 170,234,594 28,521,064 61,814,032 17,124,028 7,381,994 2017* 34,796,571 62,163,383 17,499,630 7,242,223 2016 13,650 132,449 254,505 1,596,189 79,011 1,833,139 6,595 293,755 70,724,146 2,974,601 77,908,040 147,839,173 10.5 857,743 116,955 368,916 698,214 10,165 734,959 2,516 150,268 63,893,353 582,942 67,416,032 146,141,386 9.0 259,805 3,486 25,532,067 19 424,764 8,591 590,369 302,633 2,793,710 470,097 1,327 1,210,699 5,594,274 4,380,297 494,674 42,066,812 60,361,271 36,658,542 28,810,546 63 561,648 2,020 25,602,868 4,578 278,631 6,472 790,495 1,041,386 2,011,224 290,695 1,359,591 21,304 5,436,480 2,893,584 819,548 41,120,587 58,264,726 18,364,083 17,549,421 715,591 29,446 2014 11,666,407 16,085,806 1,005,755 52,577 2013 799,089 24,676 121,385 205,491 2,191 1,412,850 3,561 28,698 61,311,246 1,136,711 65,045,898 149,096,925 9.5 8 127,763 15,328 25,816,669 68 501,056 181,901 2,433,745 249,795 2,713,035 64,171 454,834 8,709 7,161,711 3,894,811 224,209 43,847,812 67,144,871 40,203,215 16,906,157 22,283,692 789,704 223,663 IMPORTS 2015 300,993 59,990 205,283 459,985 1,829 2,363,997 1,561 52,823 49,857,194 4,532,170 57,835,825 140,240,649 9.8 1,247 208,300 3,010 30,042,739 531,602 801,749 377,281 5,173,580 236 479,445 6,200 6,397,800 4,200,643 1,256,194 49,480,027 69,598,727 32,924,797 12,806,098 19,275,753 774,593 68,353 2016 8,679 161,828 202,174 425,429 1,173 3,173,284 94,168 61,879,611 2,096,910.29 68,043,257 200,544,125 11.6 788 504,619 47,184 35,382,586 3,035 2,106,353 1,644,846 402,119 7,317,990 2,186,197 25,204 11,230,575 7,739,372 2,946,018 71,536,888 115,321,312 60,963,980 17,179,556 42,041,347 1,683,596 59,481 2017* KSh '000 Economic Survey 2018 Chapter 6: International Trade and Balance of Payments Balance of 6.34. Table 6.11 presents Balance of Payments statistics that summarises the country’s cross Payments border transactions from 2013 to 2017. During the review period, the overall Balance of Payments worsened to a deficit of KSh 16.9 billion from a surplus of KSh 13.1 billion in 2016. The current account balance widened by 38.3 per cent to a deficit of KSh 518.9 billion in 2017 from a deficit of KSh 375.3 billion in 2016. This was mainly driven by the widening of merchandise trade deficit that grew by 35.6 per cent in the review period. Exports of goods went up by 2.7 per cent to KSh 599.0 billion in 2017 while imports of goods valued on free on board basis increased by 21.5 per cent to KSh 1,653.9 billion in the same period. The significant growth in the value of imports was mainly as a result of increased imports of food and petroleum products. The current account balance was 6.7 per cent of the GDP in 2017. 6.35. Net international services increased by 11.4 per cent from a surplus of KSh 144.4 billion in 2016 to a surplus of KSh 160.9 billion in 2017. Receipts from international services increased by 14.0 per cent while payments for international services rendered grew by 15.3 per cent in 2017. Receipts from international travel partly contributed to the increase in services inflows. Diaspora remittances remained buoyant, increasing by 14.6 per cent, and contributed to increased secondary income net inflows from a surplus of KSh 327.8 billion in 2016 to a surplus of KSh 460.0 billion in 2017. 6.36. Total net financial inflows increased by 13.4 per cent from a surplus KSh 420.0 billion in 2016 to a surplus of KSh 476.1 billion in 2017. Other investment which include loan disbursements net inflows increased by 18.0 per cent to a surplus of KSh 513.4 billion in 2017 compared to an increase of 20.2 per cent in 2016. Similarly, net foreign direct investment inflows increased by 79.2 per cent from a surplus KSh 23.9 billion in 2016 to a surplus of KSh 42.9 billion in the review period. 109 Economic Survey 2018 Table 6.11: Balance of Payments, 2013-2017 KSh Million A. Current Account . Goods: exports f.o.b. Goods: imports f.o.b. Services: credit of which Travel... Services: debit. Balance on goods and services. Primary income: credit. Primary income: debit. Balance on goods, services, and primary income. Secondary income1: credit. of which Diaspora Remittances.... Secondary income1: debit. B. Capital Account .. Capital account: credit. Capital account: debit. C. Financial Account .. Direct investment: assets. Direct investment: liabilities .. Portfolio investment: assets.. Equity and investment fund shares. Debt securities. Portfolio investment: liabilities .. Equity and investment fund shares. Debt securities. Financial derivatives: net. Other investment: assets. Other equity. Other debt instruments. Central bank. Deposit-taking corporations, except the central bank General government. Other sectors. Other financial corporations. Nonfinancial corporations, households .. Other investment: liabilities .. Other equity. Special Drawing Rights. Other debt instruments. Central bank. Deposit-taking corporations, except the central bank.. General government. Other sectors. Other financial corporations. Nonfinancial corporations, households.... D. Net Errors and Omissions. E. Overall Balance. F. Reserves and Related Items. Reserve assets. Credit and loans from the IMF. Exceptional financing. Current Account balance as % of GDP 2013 2014 2015 2016 2017* -417,019.6 -560,761.1 -421,082.1 -375,295.9 -518,943.6 503,491.1 546,781.5 587,330.0 583,378.1 598,967.1 1,385,669.8 1,488,446.8 1,409,606.4 1,361,483.4 1,653,935.8 441,986.5 441,739.9 455,369.8 421,731.9 480,622.1 75,843.8 71,277.6 71,081.1 83,614.2 94,705.3 190,061.0 294,498.4 326,014.9 277,354.2 319,742.2 -630,253.1 -794,423.8 -692,921.5 -633,727.7 -894,088.8 28,712.4 43,643.4 48,298.1 43,991.1 41,208.1 80,383.9 119,981.0 115,459.3 113,406.5 126,038.2 -681,924.6 -870,761.4 -760,082.7 -703,143.0 -978,918.9 268,925.2 327,853.4 345,217.9 333,039.1 465,762.6 112,328.1 126,682.3 154,068.3 177,088.5 202,918.7 4,020.2 17,853.1 6,217.3 5,191.9 5,787.4 13,644.0 24,204.0 25,718.0 20,878.0 19,046.0 13,644.0 24,204.0 25,718.0 20,878.0 19,046.0 -448,096.6 -650,365.7 -383,721.0 -419,998.1 -476,118.7 17,105.0 6,604.6 23,758.5 16,008.5 26,585.8 96,356.4 72,178.6 60,843.6 39,927.7 69,439.2 3,285.4 4,869.6 18,722.0 42,939.3 68,791.9 1,016.3 310.0 996.0 41,283.6 68,077.3 17,726.0 1,655.7 714.6 2,269.1 4,559.6 26,581.6 331,663.4 3,499.1 4,050.4 -11,358.2 25,563.0 83,907.5 1,061.1 2,295.6 -11,583.0 2,438.0 1,754.9 224.8 1,018.6 247,755.9 .. .. .. .. .. 56,268.7 -505.0 49,206.0 -19,542.1 35,489.4 56,268.7 -505.0 49,206.0 -19,542.1 35,489.4 40,048.0 -7,067.2 16,220.7 6,562.2 16,220.7 6,562.2 401,817.7 257,492.8 1,859.1 -1,380.1 399,958.6 258,872.9 -1,433.9 6,910.7 44,300.8 51,500.4 71,353.7 -21,877.9 285,738.1 222,339.8 285,738.1 222,339.8 -12,955.5 14,033.7 -31,765.5 -127,842.3 31,765.5 127,842.3 73,921.9 117,353.1 15,252.4 -10,489.1 26,904.0 -8.8 -10.4 * Provisional Includes current transfers 1 .. Data not available f.o.b is free on board 110 40,885.7 8,320.3 8,320.3 411,064.8 -274.6 411,339.4 -217.0 47,241.8 202,052.1 162,262.4 162,262.4 -13,262.0 24,905.1 -24,905.1 -35,386.7 -10,481.6 -6.7 -24,812.7 5,270.7 5,270.7 415,425.6 -827.4 416,253.0 -3,646.0 -28,732.8 200,165.0 248,466.8 248,466.8 -52,484.1 -13,096.1 13,096.1 3,894.7 -9,201.4 -5.2 30,938.5 4,550.9 4,550.9 548,904.7 -744.6 549,649.3 1,521.2 -7,402.2 297,287.9 258,242.4 258,242.4 6,858.8 16,920.1 -16,920.1 -24,917.9 -7,997.8 -6.7 Chapter 6: International Trade and Balance of Payments International 6.37. Foreign reserves held by the Central Monetary Authorities from 2013 to 2017 are Liquidity presented in Table 6.12. Gross stock of official foreign reserves grew marginally to KSh 738.8 billion as at December 2017 compared to KSh 736.5 billion in the corresponding period of 2016. Net foreign assets of CBK increased from KSh 643.1 billion as at December 2016 to KSh 649.6 billion as at December 2017. Foreign liabilities, comprising external banks’ deposits and use of fund credit, which may directly affect the stock of foreign reserves reduced, by 4.7 per cent in the review period. Table 6.12: Central Monetary Authorities: Foreign Exchange reserves, 2013-2017 KSh Million Official Foreign Assets and Liabilities Central Bank Of Kenya Government Foreign External Use of Net Foreign Reserve Other Exchange Reserves of As at end of S.D.R.'s Banks' Fund Assets of Position Holding (cash + Government Deposits Credit Central Bank in IMF s gold) 2013.. .. .. .. .. .. .. .. ..1,369 .. .. .. .. .. 532,041 .. .. .. .. .. .. ..10,377 .. .. .. .. .. .. 92,333 .. .. .. .. .. .. .. 430,700 .. .. 1,765 127 1,892 2014.. .. .. .. .. .. .. .. ..1,179 .. .. .. .. .. 701,390 .. .. .. .. .. .. ..10,602 .. .. .. .. .. .. 86,159 .. .. .. .. .. .. .. 605,808 .. .. 1,743 118 1,861 2015.. .. .. .. .. .. .. .. ..1,489 .. .. .. .. .. 739,257 .. .. .. .. .. .. ..17,876 .. .. .. .. .. .. 86,288 .. .. .. .. .. .. .. 636,583 .. .. .. 1,936 134 2,070 2016.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. January .. .. .. .. ..2,049 .. .. .. .. ..734,346 .. .. .. .. .. .. ..17,701 .. .. .. .. .. ..86,012 .. .. .. .. .. .. ..632,682 .. .. .. .. .. .. ..1,875 122 1,997 February .. .. .. ..2,024 .. .. .. .. .. 744,106 .. .. .. .. .. .. ..18,953 .. .. .. .. .. .. 85,581 .. .. .. .. .. .. .. 641,596 .. .. .. .. .. .. .. 1,865 .. 118 1,983 March .. .. .. .. .. 1,958 .. .. .. .. .. ..769,025 .. .. .. .. .. .. ..20,959 .. .. .. .. .. ..86,961 .. .. .. .. .. .. ..663,063 .. .. .. .. .. .. ..1,896 121 2,017 April .. .. .. .. .. ..1,429 .. .. .. .. .. 785,325 .. .. .. .. .. .. .. 12,895 .. .. .. .. .. .. 86,828 .. .. .. .. .. .. .. 687,031 .. .. .. .. .. .. ..1,904 123 2,027 May .. .. .. .. .. ..3,853 .. .. .. .. .. ..779,935 .. .. .. .. .. .. 10,654 .. .. .. .. .. .. ..85,492 .. .. .. .. .. .. ..687,643 .. .. .. .. .. .. 1,875 123 1,998 June .. .. .. .. .. ..1,923 .. .. .. .. .. ..814,419 .. .. .. .. .. .. 14,169 .. .. .. .. .. .. ..83,172 .. .. .. .. .. .. ..719,001 .. .. .. .. .. .. 1,878 114 1,992 July .. .. .. .. .. .. 1,914 .. .. .. .. .. ..801,097 .. .. .. .. .. .. ..14,782 .. .. .. .. .. ..83,085 .. .. .. .. .. .. ..705,144 .. .. .. .. .. .. 1,876 111 1,987 August .. .. .. .. ..4,044 .. .. .. .. .. 790,845 .. .. .. .. .. .. .. 15,652 .. .. .. .. .. .. 83,109 .. .. .. .. .. .. .. 696,127 .. .. .. .. .. .. ..1,876 111 1,987 September .... .. 4,028 .. .. .. .. .. ..796,847 .. .. .. .. .. .. ..14,623 .. .. .. .. .. ..82,203 .. .. .. .. .. .. ..704,048 .. .. .. .. .. .. ..1,877 .. 110 1,987 October .... .. .. ..3,438 .. .. .. .. ..784,913 .. .. .. .. .. .. ..12,027 .. .. .. .. .. .. 80,548 .. .. .. .. .. .. .. 695,776 .. .. .. .. .. .. ..1,851 103 1,954 November .... .. 2,886 .. .. .. .. .. ..757,420 .. .. .. .. .. .. ..16,439 .. .. .. .. .. ..79,182 .. .. .. .. .. .. ..664,685 .. .. .. .. .. .. ..1,831 .. 106 1,937 December .... .. ..3,747 .. .. .. .. ..730,784 .. .. .. .. .. .. ..14,210 .. .. .. .. .. ..77,196 .. .. .. .. .. .. .. 643,125 .. .. .. .. .. .. ..1,843 .. 104 1,947 2017.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. January .. .. .. .. ..2,322 .. .. .. .. ..745,918 .. .. .. .. .. .. ..19,608 .. .. .. .. .. ..78,567 .. .. .. .. .. .. ..650,065 .. .. .. .. .. .. ..1,890 93 1,983 February .. .. .. ..1,374 .. .. .. .. .. 740,303 .. .. .. .. .. .. ..17,759 .. .. .. .. .. .. 76,912 .. .. .. .. .. .. .. 647,007 .. .. .. .. .. .. .. 1,872 .. 107 1,979 March .. .. .. .. .. 1,199 .. .. .. .. .. ..819,596 .. .. .. .. .. .. ..23,116 .. .. .. .. .. ..76,826 .. .. .. .. .. .. ..720,852 .. .. .. .. .. .. ..1,870 107 1,978 April .. .. .. .. .. .. ..680 .. .. .. .. 876,944 .. .. .. .. .. .. .. 19,930 .. .. .. .. .. .. 77,264 .. .. .. .. .. .. .. 780,430 .. .. .. .. .. .. ..1,894 111 2,005 May .. .. .. .. .. .. ..118 .. .. .. .. ..870,437 .. .. .. .. .. .. 16,759 .. .. .. .. .. .. ..77,389 .. .. .. .. .. .. ..776,406 .. .. .. .. .. .. 1,910 111 2,021 June .. .. .. .. .. ..1,877 .. .. .. .. .. ..851,017 .. .. .. .. .. .. 18,743 .. .. .. .. .. .. ..74,916 .. .. .. .. .. .. ..759,235 .. .. .. .. .. .. 1,930 112 2,043 July .. .. .. .. .. .. 1,267 .. .. .. .. .. ..822,485 .. .. .. .. .. .. ..23,325 .. .. .. .. .. ..75,232 .. .. .. .. .. .. ..725,196 .. .. .. .. .. .. 1,955 114 2,068 August .. .. .. .. .. ..265 .. .. .. .. 787,525 .. .. .. .. .. .. .. 15,797 .. .. .. .. .. .. 74,397 .. .. .. .. .. .. .. 697,595 .. .. .. .. .. .. ..1,958 103 2,060 September .... .. .. 253 .. .. .. .. ..806,078 .. .. .. .. .. .. ..21,207 .. .. .. .. .. ..74,210 .. .. .. .. .. .. ..710,914 .. .. .. .. .. .. ..1,953 .. 116 2,068 October .... .. .. ..3,932 .. .. .. .. ..755,523 .. .. .. .. .. .. ..20,069 .. .. .. .. .. .. 72,972 .. .. .. .. .. .. .. 666,414 .. .. .. .. .. .. ..1,948 114 2,062 November .... .. 3,352 .. .. .. .. .. ..742,944 .. .. .. .. .. .. ..17,586 .. .. .. .. .. ..72,731 .. .. .. .. .. .. ..655,979 .. .. .. .. .. .. ..1,956 .. 115 2,071 December .... .. ..1,487 .. .. .. .. ..735,262 .. .. .. .. .. .. ..17,301 .. .. .. .. .. ..69,816 .. .. .. .. .. .. .. 649,632 .. .. .. .. .. .. ..1,975 .. 116 2,090 Gross Foreign Reserves 1 of Central Monetary Authorities 535,302 704,430 742,816 738,392 748,114 773,000 788,781 785,786 818,334 804,998 796,876 802,862 790,305 762,243 736,479 750,223 743,657 822,772 879,629 872,576 854,937 825,821 789,850 808,399 761,517 748,367 738,839 Source: Central Bank of Kenya 1 Reserves constitute foreign assets which are readily available for meeting external financial needs Gross Foreign Reserves of Central Monetary Authorities comprise: S.D.Rs; Cash and Gold Foreign Exchange of Central Bank Plus Reserves of Government Foreign 6.38. The Kenya Shilling remained resilient against the currencies of major trading partners in Exchange 2017. The overall Trade Weighted Index reduced by 1.5 per cent to 116.5 in 2017 from 114.8 Rates in 2016, as presented in Table 6.13. This was mainly due to weakening slightly of the Kenya Shilling against currencies of Kenya’s key trading partners during the period under review. The Kenya Shilling depreciated against the US Dollar, Chinese Yuan and Euro by 1.9, 3.9 and 0.1 per cent, respectively, in 2017. Other currencies which gained against the Kenya Shilling during the review period were Indian Rupee, SA Rand, UAE Dirham and Saudi Riyal. However, the Kenya Shilling gained against the Sterling Pound and Japanese Yen by 3.2 per cent and 1.4 111 Economic Survey 2018 per cent, respectively, in 2017. The Kenya Shilling strengthened against the Rwandese Francs, Ugandan Shilling and Tanzanian Shilling by 7.7, 3.7 and 0.4 per cent during the review period. Table 6.13: Average Foreign Exchange Rates of Kenya Shilling for Selected Currencies, 2013-2017 2013 2014 2015 2016 1 Euro1……………………………………………………………… 114.41 116.84 108.96 112.33 1 US Dollar……………………………………………………………………… 86.12 87.92 98.18 101.50 1 Pound Sterling……………………………………………………………… 134.75 144.88 150.17 137.66 1 UAE Dirham…………………………………………………………………………….. 23.45 23.94 26.73 27.64 1 Indian Rupee……………………………………………………………… 1.48 1.44 1.53 1.51 1 Chinese Yuan………………………………………………………………………………… 14.01 14.27 15.62 15.29 1 SA Rand .. .. .. .. .. .. ..……………………………………………………………… 8.95 8.10 7.72 6.93 100 Japanese Yen .. .. ……………………………………………………………… 88.43 83.26 81.12 93.55 1 Saudi Riyal……………………..……………………………………………………………… 22.97 23.44 26.17 27.06 1 Egyptian Pound2……….……………………………………………………………… 12.53 12.41 12.77 2017 116.73 103.41 133.20 28.15 1.59 15.30 7.77 92.22 27.57 10.14 5.80 TSh/KSh .. .. .. .. .. .. .. ...……………………………………………………………… 18.79 18.93 20.73 21.54 21.63 1 Pakistan Rupee2 .. .. ……………………………………………………………… 0.85 0.87 0.96 1 Swedish Kroner .. .. .. ……………………………………………………………… 13.22 12.88 11.65 1 Swiss Franc .. .. .. .. ……………………………………………………………… 92.96 96.18 102.04 0.98 11.87 103.04 0.98 12.12 105.04 USh/KSh3 .. .. .. .. .. .. .. ..……………………………………………………………… 30.06 29.55 32.94 33.68 1 Congolese Franc…………..……………………………………………………………… 0.09 0.10 0.11 0.11 34.92 0.07 3 100 Rwanda Francs2 .. ……………………………………………………………… 7.55 7.79 7.09 7.53 8.11 Overall Trade Weighted Index 2009=100 .. .. .. ..107.12 ……………………………………………………………… 108.10 114.30 114.83 116.52 Source: Central Bank of Kenya 1 Countries in the Euro area included in the computation of Trade Weighted Fisher's Ideal Index are: 2 Via US $ Exchange Rates (DR Congo, Egypt, Pakistan, and Rwanda) 3 Calculated as Uganda/Tanzania shilling to Kenya Shilling Germany, France, Switzerland, Netherlands, Belgium and Italy. Developments 6.39. During the review period, the Government launched a National Trade Policy, aimed in the External at spurring economic growth. The policy targets to enhance export growth through value Sector addition in export oriented manufactures and in the services sector, as well as pursuing diversification to fully exploit the export opportunities in the emerging markets. Consequently, a Trade Remedies Bill was developed and approved by Parliament, and assented into law, by the President. The implementation of the law will address unfair trade practices from imports which adversely affects the Country’s domestic industries, and widens the trade deficit. 6.40. In 2017, Trade Remedies Law was passed by parliament and assented to by the President. The Law aims protecting domestic producers from unfair trade practices such as dumping and subsidization, thereby making them more competitive. In addition, a Trade Remedy Agency is expected to be established within the state Department for Trade to undertake investigations and recommend remedial measures including imposition of extra duties and quotas. 6.41. In 2017, Kenya’s exports to the USA increased, particularly, articles of apparel and clothing accessories, which remain the leading export products to the USA. This was largely on account of the African Growth and Opportunity Act, 2000 (AGOA). The main objectives of AGOA are to stimulate economic growth, encourage economic integration and facilitate Sub-Saharan African (SSA) integration into the global economy. The Act, through legislative amendments has been further extended by 10 years to 2025. 112 Chapter 7: Agriculture Sector Review Chapter 07 Agriculture Sector Review Overview R eal Gross Value Added in the agricultural sector grew at a decelerated rate of 1.6 per cent from KSh 879.6 billion in 2016 to KSh 893.3 billion in 2017. This was occasioned by drought, pests and disease incidence which resulted in reduced crop and livestock production. Maize production declined from 37.8 million bags in 2016 to 35.4 million bags in 2017. Tea and coffee production decreased by 7.0 per cent and 11.5 per cent to 439.8 thousand tonnes and 40.8 thousand tonnes, respectively in 2017. A reduction in cane production resulted in sugarcane deliveries to factories reducing drastically from 7.2 million tonnes in 2016 to 4.8 million tonnes in 2017. The volume of horticultural exports increased by 16.4 per cent from 261.2 thousand tonnes in 2016 to 304.1 thousand tonnes in 2017. The volume of marketed milk decreased by 17.4 per cent from 648.2 million litres in 2016 to 535.7 million litres in 2017. 7.2 The dry weather conditions led to a decline in production of most agricultural commodities during the year. Overall, marketed agricultural production registered a decelerated growth of 8.1 per cent in 2017, from the 10.8 per cent growth reported in 2016. Earnings from horticulture exports rose by 13.6 per cent during the review period to KSh 115.3 billion in 2017. The value of marketed tea increased by 15.7 per cent from KSh 116.5 billion in 2016 to KSh 134.8 billion in 2017. The increase is attributed to the effect of favourable market prices for the crop. Earnings from marketed maize increased by 7.6 per cent from KSh 7.9 billion in 2016 to KSh 8.5 billion in 2017. Earnings from marketed wheat reduced by 33.8 per cent from KSh 8.0 billion in 2016 to KSh 5.3 billion in 2017. The value of marketed coffee decreased marginally from KSh 16.2 billion in 2016 to KSh 16.0 billion in 2017. The value of marketed milk declined by 8.7 per cent from KSh 22.9 billion in 2016 to KSh 20.9 billion in 2017. Agricultural Table 7.1 and Figure 7.1 show agriculture output, intermediate consumption and value added Output and at current and constant prices from 2013 to 2017. Output and intermediate consumption at Input current prices increased by 6.5 per cent and 13.1 per cent, to KSh 2,695.2 billion and KSh 389.0 billion, respectively in 2017. Value added at current prices increased by 5.5 per cent from KSh 2,185.7 billion in 2016 to KSh 2,306.2 billion in 2017. Output and intermediate consumption at constant prices increased by 2.2 per cent and 4.8 per cent to KSh 1,123.2 billion and KSh 230.0 billion, respectively in 2017. Value added at constant prices increased by 1.6 per cent from KSh 879.6 billion in 2015 to KSh 893.3 billion in 2017. 113 Economic Survey 2018 Table 7.1: Agricultural Output and Input1, 2013 - 2017 KSh Million 2013⁺ 2014⁺ 2015⁺ 2016⁺ 2017* Output at basic prices………………………………… 1,389,005 1,639,767 2,083,490 2,529,583 2,695,208 Intermediate consumption……………………….235,791 267,570 306,140 343,837 388,995 Value added at basic prices, gross…………………… 1,153,215 1,372,197 1,777,350 2,185,746 2,306,213 Output…………………………………………… 936,891 983,330 1,045,269 1,098,986 1,123,247 Intermediate consumption………………………… 181,027 193,542 208,362 219,428 229,985 Gross Value Added ……..…………………….. 789,788 836,907 879,558 893,262 PRODUCTION AT CURRENT PRICES PRODUCTION CONSTANT PRICES 755,864 Source: Kenya National Bureau of Statistics * Provisional ⁺Revised 1 Excludes Forestry and Fishing Figure 7.1: Growth Rate in Real Agricultural Gross Value Added, 2013 - 2017 7.0 6.0 5.0 Per cent 6.0 5.6 5.1 4.5 4.0 3.0 2.0 1.6 1.0 0.0 2013 2014 2015 2016 2017* Marketed 7.4 Overall marketed production increased by 8.2 per cent from KSh 413.2 billion in 2016 Production to KSh 446.9 billion in 2017 with marketed crops accounting for 69.7 per cent of the overall marketed agricultural production as shown in Table 7.2. Although there was low volume and uneven distribution of rainfall during the year 2017, aggregate earnings from agricultural production increased. 7.5 The value of horticulture exports increased by 13.6 per cent from KSh 101.5 billion in 2016 to KSh 115.3 billion in 2017. Cut flowers accounted for 71.3 per cent of the value of horticulture exports. Earnings from marketed maize increased from KSh 7.9 billion in 2016 to KSh 8.5 billion in 2017. Similarly, the value of marketed tea increased by 15.7 per cent from KSh 116.5 billion in 2016 to KSh 134.8 billion in 2017. Despite the decreased volumes of marketed maize and tea, the higher prices offered more than offset the effect of lower volumes marketed. A drastic reduction in sugarcane production resulted in a 16.9 per cent decline in the value of marketed sugarcane from KSh 24.2 billion in 2016 to KSh 20.1 billion in 2017. In addition, the value of marketed coffee decreased marginally from KSh 16.2 billion in 2016 to KSh 16.0 billion in 2017. Improved prices offered for sugarcane and coffee could not offset the dampening effect of the reduced marketed volumes for the crops during the review period. The value of marketed wheat declined from KSh 8.0 billion in 2016 to KSh 5.3 billion in 2017. 114 Chapter 7: Agriculture Sector Review Table 7.2: Recorded Marketed Agricultural Production at Current Prices, 2013-2017 KSh Million 2013 2014 2015 2016 2017* CEREALSMaize .. .. …………… 10,121.1 9,604.4 8,506.0 7,891.2 8,478.7 Wheat .. .. ………….. 6,926.1 7,618.0 8,198.2 8,028.1 5,283.1 Others .. .. …………. 7,555.3 7,720.8 7,488.5 7,266.2 5,965.1 Total .. ……………. 24,602.6 24,943.2 24,192.7 23,185.4 19,726.9 55,975.7 59,893.1 62,937.5 70,829.5 82,248.9 Vegetables .. .. ……… 22,923.3 18,780.6 20,939.5 23,366.8 24,064.6 4,482.5 5,410.6 6,561.8 7,317.3 9,009.3 Total .. …………….. 83,381.5 84,084.3 90,438.8 101,513.5 115,322.8 20,294.5 22,397.1 24,221.3 20,133.8 1 HORTICULTURE Cut flowers .. .. …….. Fruits .. .. ……………. TEMPORARY INDUSTRIAL CROPSSugar-cane .. ………… 24,583.4 Pyrethrum .. .. ……….. 52.6 61.1 51.0 37.9 26.5 Others .. .. ………….. 952.7 1,438.9 1,516.8 1,470.4 1,689.7 Total .. …………….. 25,588.7 21,794.5 23,964.9 25,729.6 21,850.0 10,910.2 16,634.4 12,074.7 16,192.3 16,037.1 Tea .. .. ……………… 94,722.0 84,854.6 118,391.2 116,547.3 134,826.0 2,810.8 2,944.8 3,595.0 4,729.6 3,557.8 Total .. ………… 108,443.0 104,433.7 134,060.8 137,469.1 154,420.9 TOTAL CROPS… 242,015.7 235,255.7 272,657.3 287,897.7 311,320.6 59,272.8 66,216.7 84,701.2 93,630.2 PERMANENT CROPSCoffee .. .. ………….. Sisal .. .. …………… LIVESTOCK AND PRODUCTS-……. Cattle and Calves ……… 58,237.0 Goats and Sheep……… 7,531.8 4,249.8 4,854.7 5,767.4 6,782.4 Milk .. .. ……... ………. 16,213.0 18,785.0 21,205.4 23,020.1 20,878.2 Chicken and eggs………… 7,086.4 7,440.7 6,005.9 8,788.4 10,674.8 Others .. .. …………… 5,004.8 2,124.7 2,562.1 3,124.9 3,634.9 Total .. ………. 94,072.9 91,873.0 100,844.7 125,401.9 135,600.5 GRAND TOTAL .. …………………. 336,088.7 327,128.7 373,502.1 413,299.6 446,921.2 * Provisional. 1 Data refers to fresh Horticultural exports only 7.6 Table 7.3 shows the quantum and price indices for marketed agricultural produce for the period 2013 to 2017. The quantum index for cereals declined from 95.8 in 2016 to 73.0 in 2017 in tandem with the observed decline in overall production. The drought experienced during the year coupled with the fall army worm infestation in some areas resulted in lower production of maize leading to decreased volumes of marketed maize. The price index for cereals increased from 213.4 in 2016 to 255.6 in 2017. The increase was mainly attributed to the reduced supply of the commodity in the market. Maize imports increased more than eight fold from 149 thousand tonnes in 2016 to 1,328 thousand tonnes in 2017. Rice imports increased by 23.1 per cent from 508.0 thousand tonnes in 2016 to 625.1 thousand tonnes in 2017. The quantum index for temporary industrial crops declined from 172.4 in 2016 to 116.9 in 2017. This was mainly due to the sharp decline in sugar cane production occasioned by shortage of mature sugarcane and the prolonged dry weather conditions that affected the growth of cane. Improved prices offered for sugarcane resulted in the price index for temporary industrial crops increasing from 169.7 in 2016 to 210.9 in 2017. 115 Economic Survey 2018 7.7 The quantum index for permanent crops declined from 146.6 in 2016 to 136.0 in 2017. This is consistent with decreased marketed volumes of coffee and tea. The decline in marketed coffee is attributed to adverse weather conditions such as cold which affected the flowering of the coffee trees as well as incidences of Coffee Berry Disease and Leaf Rust in the main production areas. The decline in the volume of marketed tea was mainly as a result of hot and dry weather conditions in the first quarter of the year 2017. The price index for permanent crops however, increased from 216.9 in 2016 to 261.9 in 2017 due to improved prices offered for marketed coffee and tea. Table 7.3: Volume and Price Indices of Recorded Sales of Agricultural Production, 2013 - 2017 Base: 2001=100 2013* QUANTUM INDICES Cereals 2014 2015 2016 2017* .. .. .. …………………………………. 98.7 100.4 103.5 95.8 73.0 Temporary Industrial Crops ……………………… 160.9 157.9 165.9 172.4 116.9 Horticulture .. .. .. .. .. ………………………….. 230.7 237.6 251.8 277.1 323.8 Permanent Crops .. .. .. ……………………….. 135.4 140.1 123.9 146.6 136.0 TOTAL CROPS .. .. ……………………………. 145.7 146.4 143.5 160.3 158.7 Livestock and Products .. .. ……………………… 262.5 263.3 293.5 328.2 308.3 203.5 216.8 242.3 230.1 PRICE Cereals .. .. .. …………………………………. 224.1 228.6 TOTAL …. 201.6 209.3 213.4 255.6 INDICES Temporary Industrial Crops .. …………………… 179.5 161.3 159.7 169.7 210.9 Horticulture .. .. .. .. .. ………………………….. 151.3 146.3 148.9 151.7 146.6 Permanent Crops .. .. …………………………. 179.7 174.4 243.2 216.9 261.9 TOTAL CROPS .. .. …………………………. 166.7 163.0 197.9 184.1 245.5 Livestock and Products .. .. ……………………. 279.5 297.5 298.3 321.7 331.2 TOTAL … 246.9 252.2 272.9 212.9 228.7 * Provisional. 7.8 Table 7.4 details the average gross commodity prices paid to farmers for various commodities for the period 2013 to 2017. Tea prices increased by 23.9 per cent from KSh 24,732.35 per 100 kilogram in 2016 to KSh 30,652.18 per 100 kilogram in 2017. Coffee prices paid to farmers improved by 16.5 per cent from KSh 40,815.54 per 100 kilogram in 2016 to KSh 47,547.71 per 100 kilogram in 2017. Favourable prices were also realized for maize, sugarcane, milk, beef and pork. 116 Chapter 7: Agriculture Sector Review Table 7.4: Average Gross Commodity Prices1 to Farmers, 2013 - 2017 KSh per Unit 2013 2014 2015 2016 Coffee ......………………………… 100 Kg Unit 28,409.58 39,185.89 37,480.02 40,815.54 47,547.71 2017* Tea ............…………………….. 100 Kg 21,903.43 19,063.96 29,656.27 24,732.35 30,652.18 Sisal ......………………………… 100 Kg 10,817.84 11,122.13 16,924.71 19,463.35 16,121.73 Sugar-cane ......…………………… Tonne Pyrethrum Kg (Pyrethrin equivalent) 3,685.00 3,133.00 3,125.00 3,386.81 4,237.25 12,626.17 16,871.76 12,570.82 12,906.70 12,625.00 Seed Cotton ........…………………. 100 Kg 4,200.00 4,200.00 4,200.00 4,200.00 4,600.00 Maize ……....…………………….. 100 Kg 3,133.16 3,318.49 2,870.08 2,968.80 3,987.33 Wheat ............……………………. 100 Kg 3,744.85 3,495.34 3,561.62 3,718.40 3,197.99 Beef (third grade) ….………………. 100 Kg 26,000.00 27,500.00 30,510.49 35,904.54 38,090.90 Pig meat ........…………………….. 100 Kg 18,427.38 20,268.93 21,266.71 22,666.04 23,172.37 Milk .............…………………….. 100 Litres 3,100.00 3,470.00 3,443.00 3,543.00 3,897.30 * Provisional. 1 Prices refer to the calendar year and may differ from those based on crop years. For tea and coffee , the prices are for black tea and coffee beans, respectively. 7.9. Table 7.5 shows the aggregate value of sales of agricultural produce from large and small farms for the last five years. Total value of sales increased by 8.2 per cent from KSh 413.2 billion in 2016 to KSh 446.9 billion in 2017. The value of output from small farms increased by 8.2 per cent from KSh 301.7 billion in 2016 to KSh 326.3 billion in 2017. Sales from large farms similarly increased from KSh 111.6 billion in 2016 to KSh 120.7 billion in 2017. The share of sales from small farms to total marketed production remained the same at 73.0 per cent in 2017. Table 7.5: Recorded Sale of Produce from Large and Small Farms, 2013 - 2017 Large Farms Small Farms Total KSh Mn. Annual Percentage change 2012 93,866.7 0.7 250,755.4 2013 90,711.3 (3.4) 245,377.4 2014 87,997.6 (3.0) 239,131.1 2.5 2015 101,219.1 15.0 272,283.0 2016 111,590.9 10.2 2017* 120,668.7 8.1 Year KSh Mn. Annual Percentage change Percentage Annual Share of KSh Mn. Percentage SmallFarms change 3.9 72.8 (2.5) 73.0 327,128.7 (2.7) 73.1 13.9 373,502.1 14.2 72.9 301,708.7 10.8 413,299.6 10.7 73.0 326,252.4 8.1 446,921.2 8.1 73.0 5.1 344,612.4 (2.1) 336,088.7 * Provisional. 7.10. The overall price index increased from 196.6 in 2016 to 225.9 in 2017 as shown in Table 7.6. The price indices for most of the inputs increased in 2017 with the largest increase recorded for fuel and power. However, the price index for bags recorded a 6.6 per cent decline during the year under review. The price index of service inputs rose by 8.6 per cent in 2017. The quantum index has been increasing over the last five years and stood at 368.2 in 2017. The largest increase in the quantum index was recorded for manufactured feeds. On the contrary, the quantum index on bags and other material inputs recorded a 21.0 per cent and 14.2 per cent decline, respectively over the same period. 117 Economic Survey 2018 Table 7.6: Quantum and Price indices for Purchased Inputs, 2013 - 2017 2013 2014 Base: 2001=100 2016 2017* 2015 Quantum Indices Fertilizers .. .. .. ……….. 114.5 180.1 245.0 280.4 304.9 Fuel and Power .. .. .. ……. 84.1 101.1 106.2 123.6 145.2 Bags .. .. .. .. ………….. 72.7 54.2 54.7 55.2 43.6 Manufactured Feeds .. .. …. 364.8 381.6 398.5 415.3 538.5 Seeds .. .. …… 118.7 206.3 210.5 158.9 183.6 Other Material Inputs .. .. 149.3 152.7 151.5 179.0 153.6 Total Material Inputs .. ..181.7 176.7 177.5 179.0 230.3 Service Inputs .. .. .. …….. 217.2 369.5 320.5 373.0 320.1 TOTAL INPUTS .. .. .. .. 167.4 253.4 302.6 304.7 368.2 Fertilizers .. .. .. ……….. 250.5 230.7 231.1 197.8 230.1 Fuel and Power .. .. .. …… 232.0 179.2 126.3 123.3 147.3 Bags .. .. .. .. ………….. 187.2 228.4 241.4 277.6 259.4 Manufactured Feeds .. .. .... 260.4 226.9 244.3 252.7 279.2 Seeds .. .. …… 116.4 131.5 146.1 159.4 177.5 Other Material Inputs .. .. 166.0 173.4 201.3 196.5 225.2 Total Material Inputs .. ..208.1 189.4 185.9 184.7 192.4 Service Inputs .. …………………. 216.4 206.3 234.7 241.8 262.6 TOTAL INPUTS .. .. .. ……… 212.5 191.3 198.9 196.6 225.9 Price Indices- * Provisional 7.11. During the year under review, expenditure on farm inputs increased by 14.0 per cent from KSh 58.0 billion in 2016 to KSh 66.1 billion in 2017 as shown in Table 7.7. Expenditure on fertilizers, fuel and power accounted for more than half of the total expenditure on agricultural inputs during the review period. Purchases of seeds and manufactured feeds increased by 23.9 per cent and 10.3 per cent, respectively in 2017. Table 7.7: Value of Purchased Agricultural Inputs1, 2013-2017 KSh Million 2013 2014 2015 2016 2017* MATERIAL INPUTSFertilizers .. .. .. .. .. .. .. .. .. …. 8,898.2 11,817.9 12,172.4 13,930.7 17,612.1 Crop chemicals.. .. .. .. .. .. .. .. .. .. 4,477.8 4,337.6 4,771.4 5,572.3 7,044.8 Livestock drugs and medicines.. .. 2,988.4 2,688.3 3,606.6 4,179.2 4,610.7 12,204.7 15,115.1 14,414.7 17,170.3 17,630.4 Fuel and power.. .. .. .. .. .. .. …. Bags .. .. .. .. .. .. .. .. .. .. .. ….. 110.6 121.9 128.8 130.2 135.2 Manufactured feeds .. .. .. .. .. ….. 6,192.2 7,073.2 7,983.5 8,628.3 9,519.1 Seeds .. .. .. .. .. .. .. .. .. .. .. .. 3,704.2 4,395.2 4,483.1 3,384.9 4,194.7 924.8 1,030.8 1,197.0 1,414.0 1,560.0 .. .. .. .. .. .. .. .. . . .. …. 39,501.1 46,580.0 48,757.5 54,409.8 62,307.0 Other material inputs .. .. .. .. .. .. Total 2,158.1 SERVICE INPUTS .. .. .. .. .. .. .. .. ………….. 2,709.7 3,082.6 3,588.0 3,793.4 TOTAL INPUTS .. .. .. .. .. .. .. .. ..41,659.1 …………..49,289.7 51,840.1 57,997.8 66,100.4 *Provisional. 1 Excluding labour. 118 Chapter 7: Agriculture Sector Review 7.12. Table 7.8 shows price indices and terms of trade for the period 2013 to 2017. The general index of agricultural output prices increased from 166.4 in 2016 to 180.1 in 2017 due to higher prices for most agricultural commodities. The indices of prices paid also increased from 337.6 in 2016 to 369.5 in 2017. This was largely attributable to an increase in the index of purchased consumer goods in rural areas which rose from 478.6 in 2016 to 513.1 in 2017. The index of prices paid increased relatively faster than the index of agricultural output prices. The overall terms of trade in agriculture decreased from 49.3 in 2016 to 48.7 in 2017, continuing the decline observed from 2015. Table 7.8: Price Indices and Terms of Trade for Agriculture, 2013 – 2017 Base: 2001=100 2013 2014 2015 2016 2017* 140.4 150.9 162.9 General Index of Agricultural Output Prices………………………………….. 166.4 180.1 198.9 196.6 225.9 Index of Purchased Consumer Goods-Rural Areas…………………………. 390.3 420.7 449.7 478.6 513.1 301.4 306.0 324.3 INDICES OF PRICES PAID .. .. …………………………………………… 337.6 369.5 49.3 48.7 PRICE PAID Purchased Inputs .. .. …………………………………….. 212.5 191.3 Agricultural Sector Terms of Trade………………………….. 46.6 49.3 50.2 * Provisional Crops 7.13. Maize production decreased by 6.3 per cent from 37.8 million bags in 2016 to 35.4 million bags in 2017 as shown in Table 7.9. This was mainly attributed to drought experienced in most parts of the country which resulted in lower yields. However, production of beans increased by 16.0 per cent from 8.1 million bags in 2016 to 9.4 million bags in 2017 while production of sorghum increased by 23.1 per cent. Table 7.9: Estimated Production of Selected Agricultural Commodities, 2013 – 2017 Crop 2013 2014 2015 2016 2017* Maize .. .. .. ..Million bags Unit 40.7 39.0 42.5 37.8 35.4 Beans .. .. .. ..Million bags 7.9 6.8 8.5 8.1 9.4 Potatoes .. .. Million .. tonnes 2.1 2.3 2.0 1.3 1.5 Sorghum .. .. .. … Million bags 1.7 1.9 2.1 1.3 1.6 Millet…………….. Million bags 1.4 1.4 1.1 0.6 0.6 Source: Ministry of Agriculture and Irrigation * Provisional 7.14. Maize: Figure 7.2 presents annual maize production and imports from 2013 to 2017. During the period under review, maize imports increased more than eight fold to 1,328 thousand tonnes. This was necessitated by the 6.3 per cent reduction in maize production from 3,402 thousand tonnes in 2016 to 3,186 thousand tonnes in 2017. 119 Economic Survey 2018 Thousand Tonnes Figure 7.2: Maize Production and Imports, 2013-2017 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2013 2014 2015 2016 2017* 93 459 490 149 1,328 3,663 3,510 3,825 3,402 3,186 IMPORTS PRODUCTION 7.15. Retail market prices for selected food crops for the months of March and September from 2013 to 2017 are shown in Table 7.10. Prices of all the selected crops increased during the month of March 2017 compared to prices in the same period in 2016. The price of potatoes and cabbages decreased by 21.2 per cent and 6.1 per cent, respectively in the month of September 2017 compared to the same period in 2016. Table 7.10: Retail Market Prices for Selected Food Crops, 2013 – 2017 KSh per Kg 2013 CROP Mar 2014 Sept Mar Sept 2015 Mar Sept 2016 Mar Sept 2017 Mar Sept Maize……………. 38.01 35.38 38.24 35.47 33.19 33.77 33.92 35.10 48.02 43.86 Beans………………74.11 68.18 77.16 74.67 77.56 77.08 76.74 74.36 93.96 87.46 Finger Millet……… 76.06 75.96 78.90 79.29 83.71 88.86 84.03 84.62 108.59 105.20 Sorghum…………. 53.47 42.1 54.07 54.01 55.51 53.60 54.36 52.58 72.65 64.85 Potatoes………….. 32.07 29.06 31.20 30.33 34.46 34.11 39.56 38.91 55.96 30.67 Cabbages…………. 23.99 28.19 24.67 24.75 38.86 22.17 25.71 31.73 37.54 29.79 Tomatoes…………. 56.24 41.74 58.70 68.11 68.09 55.03 70.23 52.60 73.84 79.82 Bananas………….. 39.01 34.98 42.50 42.46 37.26 37.46 37.36 41.82 49.18 50.68 7.16. Table 7.11 shows recorded sale of selected crops for the last five years. During the period under review, sale of all the selected crops decreased with pyrethrum (extract equivalent) registering the highest decrease of 42.4 per cent. Sales were mainly affected by reduced production as a result of unfavourable weather conditions. The quantity of maize sold continued to decline for the second year, reducing by 10.0 per cent from 265.8 thousand tonnes in 2016 to 239.2 thousand tonnes in 2017. Similarly, the quantity of wheat sold reduced by 27.3 per cent from 215.9 thousand tonnes in 2016 to 156.9 thousand tonnes in 2017. In addition, the volume of rice paddy, coffee and tea delivered to factories reduced by 20.2, 15.1 and 7.0 per cent, respectively over the same period. 120 Chapter 7: Agriculture Sector Review Table 7.11: Recorded Sale of Selected Crops, 2013-2017 Crop Unit 1 Maize Wheat 2 Coffee Tea Cotton 2 Sugar-cane2 2013 2014 2015 2016 2017* 000 Tonnes 316.4 289.4 295.3 265.8 239.2 000 Tonnes 185.0 218.0 227.3 215.9 156.9 000 Tonnes 38.4 42.5 32.2 39.7 33.7 000 Tonnes 432.5 445.1 399.2 473.0 439.9 000 Tonnes 7.2 1.5 15.7 15.8 11.9 Million Tonnes 6.7 6.5 7.2 7.2 4.8 Tonnes 4.2 3.6 3.7 3.3 1.9 Sisal Pyrethrum (extract equivalent) 000 Tonnes 26.0 23.1 21.2 24.3 22.5 Rice Paddy 2 . 000 Tonnes 43.6 46.2 43.7 38.1 30.4 * Provisional. 1 Includes purchases by National Cereals and Produce Board and millers. 2 Deliveries to factories/ginneries. 7.17. Wheat: Table 7.12 presents annual wheat production and imports from 2013 to 2017. Wheat production reduced by 23.1 per cent from 214.7 thousand tonnes in 2016 to 165.2 thousand tonnes in 2017. In order to meet the deficit in production, wheat imports increased by 36.2 per cent in 2017 from 1,362.3 thousand tonnes in 2016. Table 7.12: Production and Imports of Wheat, 2013 - 2017 '000 Tonnes Year Production 1 Imports Total 2013.. ………….. 194.5 1,033.1 1,227.6 2014 .. ………….. 228.9 1,225.7 1,454.6 2015 .. ………….. 238.6 1,421.8 1,660.4 2016 .. ……….. 214.7 1,362.3 1,577.0 2017* .. ………….. 165.2 1,855.0 2,020.2 * Provisional. 1 Includes retention for seed. 7.18. Coffee: Area, production and average yield of coffee by type of grower for crop year 2012/13 to 2016/17 is as shown in Table 7.13. During the period under review, the area under coffee production increased by 700 hectares from 114.0 thousand hectares in 2015/16 to 114.7 thousand hectares in 2016/17. Coffee production decreased by 11.5 per cent from 46.1 thousand tonnes in 2015/16 to 40.8 thousand tonnes in 2016/17. The decline was attributable to cold and rainy weather conditions, the bi-modal production system where the crop takes time to recover in one year; and extended dry weather during picking which adversely affected coffee production. Coffee production by Co-operatives declined by 14.0 per cent from 30.8 thousand tonnes in 2015/16 to 26.5 thousand tonnes in 2016/17. The average yield for cooperatives and estates decreased by 16.3 and 10.3 per cent, respectively in the 2016/17 crop year. 121 Economic Survey 2018 Table 7.13: Production, Area and Average Yield of Coffee by Type of Grower, 2012/13-2016/17 2012/13 2013/14 2014/15 2015/16 2016/17* AREA (Ha) '00085.2 .. Co-operatives .. .. .. .. .. ……….... Estates .. .. .. .. .. ………….... 24.6 .. .. .. 85.3 87.8 88.2 88.8 24.7 25.7 25.8 25.9 110.0 113.5 114.0 114.7 Co-operatives .. .. .. .. .. .. .. ………….... 21.9 .. 32.7 27.2 30.8 26.5 TOTAL .. .. .. .. .. .. .. .. .. …….. .. .. 109.8 PRODUCTION (Tonnes) '000- Estates .. .. .. .. .. .. .. .. .. .. .. .. …………… 17.9 16.8 14.8 15.3 14.3 TOTAL .. .. .. .. .. .. .. .. .. .. .. .. ………. 39.8 49.5 42.0 46.1 40.8 AVERAGE YIELD1 (Kg/Ha.)Co-operatives .. .. .. .. .. .. .. .. ………….. 257.0 383.8 319.2 361.1 302.1 Estates .. .. .. .. .. .. .. .. .. .. .. .. ………….. 727.6 682.9 601.6 619.4 555.6 Source: Agriculture and Food Authority, Coffee Directorate * Provisional. Note:The coffee year is from October to September 1 Yield is obtained by dividing current production by previous acreage 3 years ago 7.19. Tea: The area under tea increased by 6.5 per cent from 218.5 thousand hectares in 2016 to 232.7 thousand hectares in 2017 as shown in Table 7.14. However, production of tea reduced by 7.0 per cent from 473.0 thousand tonnes in 2016 to 439.8 thousand tonnes in 2017. Tea production by small holder growers decreased by 7.3 per cent to 246.1 thousand tonnes in 2017 while output within the tea estates declined by 6.6 per cent to 193.7 thousand tonnes over the same period. The depressed tea production was attributed to the drought that was experienced during the first half of 2017. The average yield for the small holder growers decreased from 2,086.4 kilograms per hectare in 2016 to 1,913.7 kilograms per hectare in 2017 while that within the tea estates decreased from 2,908.8 kilograms per hectare in 2016 to 2,603.5 kilograms per hectare in 2017. 122 Chapter 7: Agriculture Sector Review Table 7.14: Production, Area and Average Yield of Tea by Type of Grower, 2013-2017 2013 2014 2015 2016 2017* AREA ('000 Ha) Smallholders .. .. .. .. .. .. ……………...127.3 128.6 134.2 138.3 141.1 Estates .. .. .. …………………. .. .. .. 71.3 74.4 75.2 80.2 91.6 TOTAL .. .. .. ……………... .. .. .. ..198.6 203.0 209.4 218.5 232.7 Smallholders .. .. .. .. .. ………………...249.8 262.4 237.6 265.6 246.1 Estates .. .. .. .. .. .. .. ………………. 182.6 182.7 161.6 207.4 193.7 TOTAL .. .. .. .. .. .. .. .. ……………432.4 445.1 399.2 473.0 439.8 Smallholders .. .. ………………... .. 2,172.0 .. 2,126.8 1,900.8 2,086.4 1,913.7 Estates .. .. .. .. .. .. …………………. 3,209.8 2,833.7 2,459.7 2,908.8 2,603.5 PRODUCTION ('000 Tonnes) 1 AVERAGE YIELD (Kg/Ha) Source: Agriculture and Food Authority, Tea Directorate * Provisional 1 Obtained by dividing current production by the area four years ago 7.20. Sugarcane: Area, production and average yield of sugarcane for the years 2013 to 2017 is shown in Table 7.15. During the year under review, the area under cane reduced to 191.2 thousand hectares compared to 220.8 thousand hectares in 2016. Reduction in cane area was attributable to conversion of some area under cane to other crops. Further, the quantity of cane delivered to factories reduced by 33.3 per cent from 7.2 million tonnes in 2016 to 4.8 million tonnes in 2017. This was on account of prolonged dry weather conditions which were unfavourable for the growth of cane leading to harvesting of immature cane. As a result, the average sugarcane yield reduced to 55.3 tonnes per hectare in 2017 compared to 62.2 tonnes per hectare in 2016, representing a decrease of 10.9 per cent. Table 7.15: Planted Area, Area Harvested, Production and Average Yield of Sugarcane, 2013-2017 2013 2014 2015 2016 2017* Area under cane (Ha).............................................. 213,920 211,342 223,605 220,826 191,215 Area harvested (Ha)1............................................... 85,857 72,180 77,830 85,761 67,708 Total Production (Tonnes)..................................... 6,673,725 6,409,929 7,164,790 7,151,670 4,751,609 Production by non-contracted farmers (Tonnes).... 1,979,802 1,977,068 1,995,777 1,816,726 1,004,304 61.4 66.4 62.2 55.3 Average yield (Tonnes/Ha)2.................................. 54.7 Source: Agriculture and Food Authority, Sugar Directorate * Provisional 1 Excludes area harvested by non-contracted farmers 2 Yield = (Total production - production by non-contracted farmers)/area harvested 7.21. Domestic sugar production, imports and exports for 2013 to 2017 is shown in Table 7.16 and Figure 7.3. The total domestic sugar production declined by 41.2 per cent from 639.7 thousand tonnes in 2016 to 376.1 thousand tonnes in 2017. A total of 989.6 thousand tonnes of sugar was imported in 2017 to bridge the deficit occasioned by the low production during the year. Most of the sugar imports were meant for final consumption at 83.1 per cent of total sugar imports. 123 Economic Survey 2018 Table 7.16: Production, Imports and Exports of Sugar, 2013-2017 '000 Tonnes Year Production Imports Exports 2013…………….. 600.2 238.0 0.1 2014…………….. 592.7 192.1 0.4 2015…………….. 635.7 247.4 0.1 2016…………….. 639.7 334.1 0.1 2017*……….. 376.1 989.6 0.4 Source: Agriculture and Food Authority, Sugar Directorate *Provisional Figure 7.3: Sugar Production and Imports, 2013-2017 1600 Thousand Tonnes 1400 989.6 1200 1000 800 600 400 200 247.4 334.1 238.0 192.1 600.2 592.7 635.7 639.7 2013 2014 2015 2016 376.1 0 2017 Year Production Imports 7.22. Horticulture: Earnings from exports of fresh horticultural produce have exhibited an upward trend since 2014 as shown in Table 7.17. Export earnings from cut flowers grew by 16.1 per cent to KSh 82.2 billion in 2017 and accounted for 71.3 per cent of total earnings from horticulture in 2017, mainly occasioned by a 19.7 per cent increase in export volumes. Exports values of fruits and vegetables increased by 23.3 per cent and 3.0 per cent, respectively in 2017. 124 Chapter 7: Agriculture Sector Review Table 7.17: Exports of Fresh Horticultural Produce1, 2013-2017 Cut Flowers Volume Year Value Fruits Volume Vegetables Value Volume Total Value Volume Value 000 Tonnes KSh billion 000 Tonnes KSh billion 000 Tonnes KSh billion '000 Tonnes KSh billion 2013………….. 105.6 56.0 31.1 4.8 77.2 22.9 213.9 83.7 2014………….. 114.8 59.9 35.1 5.4 70.3 18.8 220.2 84.1 2015………….. 122.8 62.9 46.2 6.6 69.7 20.9 238.7 90.4 2016………. 133.7 70.8 48.7 7.3 78.8 23.4 261.2 101.5 2017*…………..160.0 82.2 56.9 9.0 87.2 24.1 304.1 115.3 Source: Agriculture and Food Authority, Horticulture Directorate * Provisional. 1 Excludes exports of processed horticultural produce and nuts. 7.23. Monthly quantity and value of horticultural exports for 2017 are depicted in Figure 7.2. The highest quantities of horticultural exports of over 30.0 thousand tonnes were recorded in the month of May 2017. Export earnings from horticulture were highest in January 2017 and lowest in November, 2017. 35,000.0 14.00 30,000.0 12.00 25,000.0 10.00 20,000.0 8.00 15,000.0 6.00 10,000.0 4.00 5,000.0 2.00 - Jan Feb Mar April May Jun Jul Aug Sept Oct Nov Dec KSh Billion Tonnes Figure 7.4: Monthly Performance of Fresh Horticultural Exports, 2017 0.00 Month Quantity Value 7.24. Rice: Table 7.18 shows rice production in various irrigation schemes over the last five years. An additional 7,363 hectares of land was placed under irrigation in 2017, representing a 50.5 per cent increase. This was largely attributable to the expansion of acreage in the out grower areas within the Mwea irrigation scheme. Similarly, the number of plot holders practicing irrigation rose by 25.1 per cent to 16,326 in 2017. Despite the increase in the area cropped and the increase in the number of plot holders, the volume of total paddy declined by 20.0 per cent to 81.2 thousand tonnes in 2017.This resulted to a 22.5 per cent decrease in gross value of output from all scheme areas to KSh 4.4 billion in the review period. 125 Economic Survey 2018 Table 7.18: Production of Rice in Irrigation Schemes, 2012/13 - 2016/17 2012/13 2013/14 2014/15 2015/16 2016/17* MweaArea cropped-Hectares .. …………….. 10,629 10,629 10,629 10,629 17,146 Plot-holders-Number1 .. .. ………….. Gross value of output-KSh million …… 7,178 7,178 7,178 7,178 7,178 3,880 3,872 5,727 4,726 3,558 Payments to plot-holders-KSh million .. 2,793 2,522 4,780 3,938 1,816 Area cropped-Hectares .. ………….. 18,600 19,411 13,998 14,586 21,949 Plot-holders-Number .. .. …………… 15,828 15,828 13,055 13,055 16,326 Gross value of output-KSh million …… 4,347 4,536 6,717 5,673 4,395 Payments to plot-holders-KSh million .. 3,205 3,345 5,508 4,591 2,169 All Scheme Areas- Crops Produced - Tonnes Mwea-Paddy .. .. .. ………………. 64,672 70,416 91,624 78,760 59,291 Ahero-Paddy .. .. .. ……………….. 8,326 7,405 7,942 6,494 7,752 W.Kano-Paddy .. .. .. ……………… 5,165 4,345 2,039 4,634 4,083 Bunyala-Paddy .. .. .. ……………….. 4,278 4,289 4,600 4,522 3,632 9,574 10,268 7,100 6,440 96,029 116,473 101,510 81,198 S.W Kano -Paddy …………………………….8,262 Total Paddy…………………….. 90,703 Source: National Irrigation Board *Provisional 7.25. Dairy Produce: The quantity of milk delivered to dairy processors recorded a significant drop of 17.4 per cent from 648.2 million litres in 2016 to 535.7 million litres in 2017, after posting consistent growths in the previous years as presented in Table 7.19. Similarly, the quantity of processed milk and cream from processing plants decreased by 8.5 per cent and that of butter and ghee declined by 22.0 per cent. Production of cheese however, increased from 311.2 tonnes in 2016 to 338.3 tonnes in 2017. 7.26. Livestock slaughtered: The number of cattle and calves slaughtered in abattoirs rose by 5.3 per cent from 2,460.2 thousand in 2016 to 2,590.0 thousand in 2017. During the same period, the total number of goats and sheep slaughtered increased by 12.0 per cent to stand at 9,206.7 thousand. The number of pigs slaughtered increased for the third consecutive year, to 360.1 thousand in 2017. The increase in the number of livestock slaughtered was attributable to the increased livestock off take occasioned by drought experienced during the period under review to cushion from losses. 126 Chapter 7: Agriculture Sector Review Table 7.19: Livestock Slaughtered and Dairy products, 2013-2017 Unit 2013 Mn. Litres 523.0 Recorded Milk Production……………………. 2014 2015 2016 2017* 540.0 615.9 648.2 535.7 406.7 419.6 437.9 448.6 410.6 Butter and ghee …………….. ..Tonnes 1,231.0 1,444.5 1,646.4 1,444.9 1,127.3 Cheese .. .. .. ……………….Tonnes 267.4 265.7 302.9 311.2 338.3 Cattle and Calves.. .. ……………… '000 Head 2,147.3 2,076.7 2,274.5 2,460.2 2,590.0 Sheep and Goats .. .. …………………. '000 Head 6,084.8 6,138.5 6,560.8 8,220.2 9,206.7 264.3 257.2 282.9 313.6 360.1 Milk Processed Milk and cream………………..Mn. Litres Livestock Slaughtered Pigs .. .. .. ……………….'000 Head Source: Kenya National Bureau of Statistics, Kenya Dairy Board, State Department of Livestock * Provisional Agricultural 7.27. Agricultural training provides the human capital required for agriculture sector Training development. Details on levels of enrolment at various institutions offering agricultural courses are presented in Table 7.20. Enrolment for agricultural courses at degree level registered a growth of 41.7 per cent from 17,095 students in 2016 to 24,221 students in 2017. Student enrollment for diploma courses at Egerton University maintained a downward trend and decreased by 70.5 per cent to 196 students in 2017. Enrolment for diploma courses in Bukura Institute of Agriculture and Naivasha Dairy Training Institute rose by 16.1 per cent and 70.8 per cent, respectively, in 2017. Kabete and Ndomba Animal Health Training Institutes enrolled their first diploma students in 2017. The number of trainees pursuing certificate courses in animal health declined from 326 in 2016 to 247 in 2017. The number of trainees attending short courses conducted at the Naivasha Dairy Institute and the Athi River Meat Training Institute more than doubled in 2017. 127 5,948 - Ndomba .. .. .. .. .. .. ………………………… 52 140 284 Nyahururu .. .. .. .. .. .. ……………………….. Ndomba .. .. .. .. .. .. ………………………… 128 66 188 Athi River M.T. School .. ……………………… - - - 1,820 28 72 44 44 96 28 24 79 94 260 166 184 380 46 235 189 230 436 51 155 138 - - - 674 542 7,758 The Diploma course at Naivasha DTI was approved in 2015 and the first intake was done in 2016. Diploma courses at the Animal Health Training Institutes (AHTIs) was introduced in 2017. 2 1 * Provisional 80 116 205 - - - 360 1,179 671 9,535 Source: Ministry of Agriculture and Irigation; Public Universities and other Institutions Total.. .. .. .. .. .. .. .. ……………………………. 122 Naivasha Dairy Training School …………………. SHORT-TERM VOCATIONAL COURSES- Total.. .. .. .. .. .. .. .. .. .. ……………………… 92 Kabete .. .. .. .. .. .. . ……………………….. Animal Health Training Institutes- Naivasha Dairy Training Institute……………………… 122 CERTIFICATE LEVEL- - DIPLOMA - Animal Health Training Institutes2 Kabete .. .. .. .. .. .. . ……………………….. 819 Naivasha Dairy Training Institute ……… 1 Bukura Institute of Agriculture…………………. DIPLOMA LEVEL - MOA 3,587 27 32 93 37 137 100 65 124 - - - 290 928 4,438 Total Male Female Male Female Egerton.. .. .. .. .. .. .. .. .. .. .. …………………………. 1,149 DIPLOMA LEVEL -Public Universities All Universities .. .. .. .. .. ……………………….. DEGREE LEVEL -Public Universities 2014 2013 Table 7.20: Enrolment in Agricultural Training Institutions, 2013-2017 83 372 289 295 560 78 187 231 - - - 964 1,470 12,196 66 268 202 337 575 51 187 102 - - - 710 324 9,420 22 25 68 44 128 84 89 136 - - - 309 800 5,800 Total Male Female 2015 110 396 286 426 711 73 212 170 - - - 1,019 1,124 15,220 Total 52 91 64 44 160 116 118 261 - - 27 705 459 10,165 - - 12 63 51 28 65 24 13 59 21 326 206 6,930 Male Female 2016 56 223 167 146 326 76 104 123 - - 48 1,031 665 17,095 Total 41 331 290 95 176 46 35 55 41 101 51 791 116 14,835 23 124 101 25 71 28 18 63 9 19 31 406 80 9,386 Male Female 2017* 64 455 391 120 247 74 53 118 50 120 82 1,197 196 24,221 Total Number Economic Survey 2018 Chapter 7: Agriculture Sector Review Societies and Unions in Agricultural activities 7.28 The total number of societies and unions registered grew by 7.4 per cent, from 18,573 in 2016 to 19,951 in 2017 as presented in Table 7.21. A total of 67 multi-produce societies were registered in 2017 while the number of dairy societies increased by 11.4 per cent over the same period. There has been a sustained growth in the number of non agricultural societies since 2014. The number of Savings and Credit societies grew by 4.8 per cent while that of other non-agricultural societies rose by 19.3 per cent in 2017. One agricultural union was registered in 2017. Table 7.21: Number of Societies and Unions, 2013 – 2017 Number TYPE OF SOCIETY 2013 2014 2015 2016 2017* Coffee .. .. .. .. .. .. .. .. ..... .. .. .. .... 597 600 605 613 616 Sugar-cane .. .. .. .. .. .. .. ….... .. .. 191 191 192 199 206 Pyrethrum .. .. .. .. .. .. .. .. .. .. .. .. 148 146 146 146 147 78 60 61 62 62 376 412 427 465 518 Multi-produce .. .. .. …….... .. .. .. .. 2,068 2,118 2,169 2,222 2,289 Farm Purchase.. .. .. ….. .. .. .. .. .. .. 116 116 117 118 118 Fisheries .. .. .. .. .. .. .. …….. .. .. 86 92 94 99 111 Other Agricultural Societies .. .. .. . 1,518 1,605 1,643 1,706 1,843 Sub- Total .. .. .. .. .. .. .. .. .. .. . 5,178 5,340 5,454 5,629 5,910 7,942 8,592 8,914 9,567 10,029 Other Non-Agricultural Societies .. .. .. 2,735 .. 2,938 3,031 3,279 3,913 Sub- Total .. .. .. .. .. .. .. .. .. .. .. 10,677 11,530 11,945 12,846 13,942 99 99 98 99 16,969 17,498 18,573 19,951 Agricultural: Cotton .. .. .. .. ……….... .. .. .. .. .. . Dairy .. .. .. .. .. .. .. ……….. .. .. .. Non-Agricultural: Savings and Credit.. .. .. ……….. .. 109 Unions (Agricultural) .. .. .. .. .. ……………….. .. GRAND TOTAL .. .. .. .. .. .. .. .. ..15,964   Source: Ministry of Industrialization and Enterprise Development, Directorate of Cooperatives * Provisional 7.29. Table 7.22 gives details on sales of agricultural produce from co-operative societies. The total value of sales from co-operative societies went up by KSh 6 million to KSh 10.5 billion in 2017 mainly due to an increase in milk sales. The share of marketed coffee sold through cooperatives increased marginally from 29.4 in 2016 to 29.6 in 2017. 129 Economic Survey 2018 Table 7.22: Sale of Selected Agricultural Produce by Co-operatives and their Contribution to Gross Farm Revenue, 2013– 2017 Year Coffee Sugar cane Pyrethrum Cotton Milk Total Sale (KSh Million) 2013....................... 4,785 239 36 3 5,405 10,468 2014....................... 4,763 212 27 3 5,491 10,496 2015....................... 4,769 213 27 3 5,497 10,509 2016....................... 4,755 204 24 3 5,554 10,541 2017*...................... 4,751 204 24 3 5,589 10,547 Share to marketed production (per cent) 2013....................... 36.5 0.9 65.4 3.2 32.5 33.5 2014....................... 28.6 1.0 44.2 4.7 29.2 18.8 2015....................... 39.5 1.0 52.9 4.5 26.6 19.4 2016....................... 29.4 0.9 64.3 5.5 28.5 17.7 2017*...................... 29.6 1.0 90.6 5.5 26.8 18.3 Source: Ministry of Industry, Trade and Cooperatives, Directorate of Cooperatives * Provisional. Food 7.30 Food Balance Sheet (FBS) is an important food security instrument used to measure Balance a country’s national food supply, demand and per capita levels for the supply of food Sheet commodities. The FBS shows the trend in the overall national food supply during a specific period and reveals the extent to which the food supply is adequate in relation to nutritional requirements of a country. Supply side consists of food production, imports, and changes in stocks less exports while the demand side components include production used as food, feed, seed, processed, other uses and waste. FBS 7.31 Table 7.23 gives a summary of the FBS indicators for the period 2013 to 2017. Per Caput Indicators Daily Supply from calories, proteins and fats increased by 1.3, 3.2 and 2.4 per cent, respectively, in 2017. The Per Caput Daily Supply from calories of 2,123 kilocalories was below the recommended daily allowance of 2,250 kilocalories. The overall Import Dependency Ratio (IDR) increased from 29.4 per cent in 2016 to 42.7 per cent in 2017 attributable to increased imports of vegetable products occasioned by food deficits experienced in the country. 7.32 During the review period, the total Self-Sufficiency Ratio (SSR) decreased by 14.1 percentage points to 60.3 per cent. The SSR from vegetable and animal products decreased by 15.0 percentage points and 0.7 percentage points respectively, in 2017. Per Caput Caloric Daily Supply from vegetable products and cereals increased by 2.1 per cent and 7.4 per cent, to 1,861 thousand kilo calories and 955 thousand kilo calories, respectively, in 2017. However, Per Caput Caloric Daily Supply from animal products decreased by 4.0 per cent from 273 thousand kilo calories in 2016 to 262 thousand kilo calories over the same period. 130 Chapter 7: Agriculture Sector Review Table 7.23: Food Balance Sheet, 2013-2017 Per Caput Daily Supply SSR - Per Cent IDR - Per Cent Indicator 2013 2014 2015 2016 2017* Calories - '000…………… 2,284 2,202 2,288 2,095 2,123 Proteins - Grams………… 67 64 69 63 65 Fats - Grams……………… 46 43 47 42 43 Total……………………… 80 74 75 74 60 Vegetable Products……….. 77.7 71.6 72.2 71.3 56.3 Animal Products……… 99.1 99.9 100 99.6 98.9 Total……………………… 23 29 28 29 43 Vegetable Products……….. 26 32.3 31.6 32.9 46.9 Animal Products…………. 1 1 0.8 1.2 1.9 1,993 1,945 1,975 1,822 1,861 917 925 920 889 955 291 256 313 273 262 Per Caput Caloric Vegetable Products - '000 Kcl. Daily Supply Of which Cereals - '000 Kcl… Animal Products - '000 Kcl…. *Provisional Figure 7.5: Import Dependency and Self-Sufficiency Ratios, 2017 131 Economic Survey 2018 Figure 7.6: Caloric Supply by Main Food Groups, 20 17 Spices Pulses 2.4% 13.0% Starcny roots 8.6% Sugar?t Sweeteners 03% Milk (excl butter) Vegetable oils Alcoholic beverages 0 EU 0.8% Animal fats 0.1% Eggs 0.2% Fisn& sea food 0.3% Miscellaneous 0 09316st 0.5% Stimulants 0.0% Sugar crops 0.5% Meat 42% Treenuts 0.5% Offals 0.2% Cereals (excl. beer) 45.2% Chapter 7: Agriculture Sector Review Table 7.24 (a): Food Balance Sheet, 2017 FOOD BALANCE SHEET 2017 DOMESTIC SUPPLY (1000 MT) Products 46,595 Population('000): DOMESTIC UTILIZATION (1000 MT) PER CAPUT SUPPLY PER Imports Prod. Stock Exports Total changes Feed Seed Processed Waste Oth.Util. Food PER DAY YEAR D.S. 1000 Metric Tons FOOD Calories Kg. units Proteins grams Fats grams Grand total 2123 65 43 Vegetable prod. 1861 47 25 Anim al prod. bg Cereals (excl. beer) bi bk bm bo bq bs bu bw cg 262 ci ce by 18 ck 17 3681 4161 585 57 8371 348 80 1875 604 0 5373 115 955 23 6 Wheat 165 1879 0 20 2024 0 11 82 40 0 1856 39.8 286 8 4 Maize 3186 1374 585 6 5140 309 63 1683 514 0 2639 56.6 493 12 2 54 77 646 0 0 0 1 23 700 55 0 0 0 2 1 50 2 2 0 0 693 1 14.9 0.0 143 0 3 0 0 0 0 0 54 144 0 0 0 87 133 40 0 0 0 0 0 0 0 0 3 4 0 1 141 274 36 0 0 11 28 0 0 0 2 3 0 0 0 18 42 0 0 0 15 30 0 0 0 0 0 0 0 1 52 95 36 0.0 0.0 1.1 2.0 0.8 0 0 9 17 6 0 0 0 1 0 0 0 0 0 0 Starchy roots Cassava Potatoes Sw eet Potatoes Yam s Roots, other 3792 1112 1500 1150 10 19 5 1 4 0 0 0 0 0 0 0 0 0 17 0 17 0 0 0 3781 1113 1487 1150 10 19 0 0 0 0 0 0 104 0 104 0 0 0 2 1 2 0 0 0 301 33 150 115 1 2 0 0 0 0 0 0 3374 1079 1231 1036 10 17 72.4 23.2 26.4 22.2 0.2 0.4 181 68 51 60 1 1 2 1 1 0 0 0 0 0 0 0 0 0 Sugar crops Sugar cane Sugar beet 4752 4752 0 0 0 0 0 0 0 0 0 0 4752 4752 0 0 0 0 0 0 0 4150 4150 0 0 0 0 0 0 0 602 602 0 12.9 12.9 0.0 10 10 0 0 0 0 0 0 0 413 23 390 0 0 1002 0 990 12 0 -705 0 -705 0 0 18 0 15 4 0 691 23 660 8 0 0 0 0 0 0 0 0 0 0 0 34 20 7 7 0 0 0 0 0 0 0 0 0 0 0 678 3 652 1 22 14.6 0.1 14.0 0.0 0.5 141 1 137 0 4 0 0 0 0 0 0 0 0 0 0 1104 846 0 258 7 1 5 1 433 35 0 398 1 0 0 1 1543 882 5 657 0 0 0 0 10 0 0 10 0 0 0 0 168 132 0 36 0 0 0 0 1365 750 5 610 29.3 16.1 0.1 13.1 274 150 1 123 18 10 0 8 1 1 0 1 Rice (Milled Eq.) Barley Rye Oats Millet Sorghum Cereals, other Sugar & Sw eeteners Sugar non-centrifugal Sugar (raw equivalent) Sw eeteners, other Honey Pulses Beans Peas Pulses, other Treenuts 31 0 0 6 25 0 0 0 1 0 21 0.5 3 0 0 Oilcrops Soybeans Groundnuts Sunflow erseed Rape & Mustard seed Cottonseed Coconuts (incl. copra) Sesam e seed Palm Olive Oilcrops, other 187 0 13 0 0 13 124 0 8 0 1 0 0 3 0 4 0 0 0 0 0 0 0 0 7 0 0 0 0 1 2 5 188 0 14 0 0 15 123 0 10 0 0 0 0 0 10 0 2 0 1 0 0 2 0 0 82 0 0 0 0 13 34 0 9 0 1 0 0 1 7 0 0 0 0 0 0 0 0 0 86 1 13 0 0 0 72 0 1.8 0.0 0.3 0.0 0.0 0.0 1.5 0.0 11 0 4 0 0 0 6 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 Vegetable oils Soybean oil Groundnut oil Sunflow er seed oil Rape and m ustard oil Cottonseed oil Palm kernel oil Palm oil Copra oil Sesam e seed oil Olive oil Rice bran oil Maize germ oil Oilcrops oil, other 35 0 0 0 0 2 0 0 6 0 0 Vegetables Tom atoes Onions Vegetables, other 0 36 14 14 1395 283 68 1044 - - 0 0 536 5 0 0 0 0 2 515 12 0 0 1 1 135 27 0 108 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 0 80 5 0 0 0 0 0 73 1 0 0 0 0 232 0 0 231 - - 0 35 491 0 0 0 0 1 2 442 17 0 0 14 15 1298 310 68 920 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 35 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 0 0 0 133 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 187 31 7 150 - - 0 0 258 0 0 0 0 0 0 256 0 0 0 0 3 0 0 0 0 - - 0 0 232 0 0 0 0 1 2 186 17 0 0 14 12 1235 279 27 928 - - 0.0 0.0 5.0 0.0 0.0 0.0 0.0 0.0 0.0 4.0 0.4 0.0 0.0 0.3 0.3 26.5 6.0 0.6 19.9 - - 0 0 120 0 0 0 0 1 1 96 9 0 0 7 6 16 3 1 12 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 - - 0 0 13 0 0 0 0 0 0 11 1 0 0 1 1 0 0 0 0 Economic Survey 2018 FOOD BALANCE SHEET 2017 Products DOMESTIC SUPPLY (1000 MT) 46,595 Population('000): DOMESTIC UTILIZATION (1000 MT) PER CAPUT SUPPLY PER Prod. Imports Stock Exports Total changes Feed Seed Processed Waste Oth.Util. Food YEAR D.S. Calories Kg. units 1000 Metric Tons Fruits Oranges & m andarins Lem ons & lim es Grapefruit Citrus, other Bananas Plantains Apples (excl. cider) Pineapples Dates Grapes (excl. w ine) Fruit, other PER DAY FOOD Proteins Fats grams grams 2907 74 98 4 135 742 600 0 363 1 0 891 116 43 4 0 0 1 0 17 2 5 3 40 0 0 0 0 0 0 0 0 0 0 0 0 253 1 2 0 0 0 0 0 132 0 0 118 2770 117 100 4 135 743 600 17 233 5 3 813 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 6 0 0 0 0 0 303 12 10 0 14 111 60 2 37 0 0 58 0 0 0 0 0 0 0 0 0 0 0 0 2415 105 90 3 121 632 534 15 197 5 3 708 51.8 2.3 1.9 0.1 2.6 13.6 11.5 0.3 4.2 0.1 0.1 15.2 80 2 1 0 2 22 28 0 6 1 0 18 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 Stim ulants Coffee Cocoa Beans Tea 481 41 0 440 12 1 2 9 5 5 0 0 528 58 1 470 -30 -11 2 -21 0 0 0 0 0 0 0 0 433 0 0 433 13 0 0 13 0 0 0 0 2 0 2 0 0.0 0.0 0.0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 Spices Pepper Pim ento Cloves Spices, other 256 0 5 1 250 3 0 0 0 3 0 0 0 0 0 3 0 0 0 2 256 0 5 0 251 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 256 0 5 0 251 5.5 0.0 0.1 0.0 5.4 51 0 1 0 50 2 0 0 0 2 2 0 0 0 2 Alcoholic beverages Wine Beer Beverages, ferm ented Beverages, alcoholic Alcohol, non food - 533 0 210 298 25 7 4 2 0 1 0 0 0 0 0 2 1 1 0 1 538 3 211 299 26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 538 3 211 298 25 11.5 0.1 4.5 6.4 0.5 17 0 5 7 4 0 0 0 0 0 0 0 0 0 0 Meat Bovine m eat Mutton & goat m eat Pig m eat Poultry m eat Other m eat 724 589 0 0 106 29 - - 1 0 0 1 0 0 - 0 0 0 0 0 0 - 10 2 7 2 0 0 - 715 587 -7 -1 106 29 - 0 0 0 0 0 0 - 0 0 0 0 0 0 - 0 0 0 0 0 0 - 0 0 0 0 0 0 - 0 0 0 0 0 0 840 587 90 12 106 44 - - 18.0 12.6 1.9 0.3 2.3 0.9 - 90 66 9 3 8 4 - 7 5 1 0 1 0 8 6 1 0 0 0 Offals 76 0 0 0 76 0 0 0 0 0 76 1.6 5 1 0 Anim al fats Butter, ghee Cream Fats, anim al, raw Fish, body oil Fish, liver oil 17 1 0 16 0 0 4 0 0 4 0 0 0 0 0 0 0 0 1 0 0 0 0 0 20 1 0 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 13 0 0 0 0 0 0 0 0 3 0 0 3 0 0 4 1 0 3 0 0 0.1 0.0 0.0 0.1 0.0 0.0 2 1 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Milk (excl butter) 3855 87 0 5 3937 17 0 338 319 0 4078 87.5 154 8 8 84 0 0 0 84 0 5 0 13 0 67 1.4 5 0 0 0 0 0 0 0 0 0 0 51 28 0 21 2 0 0 0 0 0 0 0 0 0 0 0 18 3 10 3 1 0 1 0 33 25 -10 18 1 0 -1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 189 144 0 21 23 0 1 0 4.1 3.1 0.0 0.4 0.5 0.0 0.0 0.0 7 5 0 1 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Eggs Fish & sea food Freshw ater fish Dem ersal fish Pelagic fish Marine fish, other Crustaceans Molluscs other Cephalopods Aquatic products, other Aquatic m am m als m eat Aquatic anim als, other Aquatic plants Miscellaneous Infant food Miscellaneous, other 0 18 0 18 - 0 7 0 7 - 0 2 1 2 - 0 14 1 14 - 0 13 0 13 - 0 0 0 0 - 0 - 0 0 0 0 7 0 7 134 - 0 0 0 0 - 0 3 0 3 - 0 3 0 3 - 0.0 0 0 0 - 0 1 0 1 - 0 0 0 0 - 0 0 0 0 Chapter 7: Agriculture Sector Review Table 7.24 (b): Food Balance Sheet, 2016 FOOD BALANCE SHEET 2016 DOMESTIC SUPPLY (1000 MT) Products 45,367 Population('000): DOMESTIC UTILIZATION (1000 MT) PER CAPUT SUPPLY PER Imports Prod. Stock Exports Total changes Feed Seed Processed Waste Oth.Util. Food PER DAY YEAR D.S. 1000 Metric Tons FOOD Calories Kg. units Proteins grams Fats grams Grand total 2095 63 42 Vegetable prod. 1822 45 24 Anim al prod. bg Cereals (excl. beer) bi bk bm bo bq bs bu bw cg 273 ci ce by 18 ck 18 3941 2184 545 95 6575 270 80 868 554 0 4822 106 889 22 5 Wheat 222 1389 0 21 1590 0 11 53 32 0 1474 32.5 235 7 3 Maize 3402 150 545 4 4093 246 63 721 491 0 2639 58.2 506 12 2 68 77 518 0 0 0 1 15 585 63 0 0 0 2 1 58 3 2 0 0 577 1 12.7 0.0 123 0 2 0 0 0 0 0 54 117 0 0 1 7 71 47 0 0 0 0 0 0 0 0 49 4 0 1 61 139 43 0 0 5 19 0 0 0 2 3 0 0 0 8 28 0 0 0 7 20 0 0 0 0 0 0 0 1 22 65 43 0.0 0.0 0.5 1.4 0.9 0 0 4 12 8 0 0 0 0 0 0 0 0 0 0 Starchy roots Cassava Potatoes Sw eet Potatoes Yam s Roots, other 3592 1112 1300 1150 10 19 1 0 0 0 0 0 0 0 0 0 0 0 3 0 3 0 0 0 3591 1113 1298 1150 10 19 0 0 0 0 0 0 104 0 104 0 0 0 2 1 1 0 0 0 281 33 130 115 1 2 0 0 0 0 0 0 3204 1079 1063 1035 10 17 70.6 23.8 23.4 22.8 0.2 0.4 179 70 46 61 1 1 2 1 1 0 0 0 0 0 0 0 0 0 Sugar crops Sugar cane Sugar beet 7152 7152 0 1 1 0 0 0 0 0 0 0 7153 7153 0 0 0 0 0 0 0 4150 4150 0 0 0 0 0 0 0 3003 3003 0 66.2 66.2 0.0 51 51 0 0 0 0 0 0 0 Sugar & Sw eeteners Sugar non-centrifugal Sugar (raw equivalent) Sw eeteners, other Honey 676 23 653 0 0 346 0 334 12 0 -313 0 -313 0 0 18 0 15 4 0 691 23 660 8 0 0 0 0 0 0 0 0 0 0 0 34 20 7 7 0 0 0 0 0 0 0 0 0 0 0 678 3 652 1 22 14.9 0.1 14.4 0.0 0.5 145 1 140 0 4 0 0 0 0 0 0 0 0 0 0 Pulses Beans Peas Pulses, other 987 729 0 258 7 1 5 1 433 35 0 398 1 0 0 1 1426 765 5 657 0 0 0 0 10 0 0 10 0 0 0 0 151 115 0 36 0 0 0 0 1258 650 5 603 27.7 14.3 0.1 13.3 260 134 1 125 17 9 0 8 1 1 0 1 Rice (Milled Eq.) Barley Rye Oats Millet Sorghum Cereals, other Treenuts 21 0 0 6 16 0 0 0 0 0 12 0.3 3 0 0 Oilcrops Soybeans Groundnuts Sunflow erseed Rape & Mustard seed Cottonseed Coconuts (incl. copra) Sesam e seed Palm Olive Oilcrops, other 172 0 7 0 0 13 115 0 8 0 1 0 0 3 0 4 0 0 0 0 0 0 0 0 8 0 0 0 0 1 2 5 172 0 8 0 0 15 113 0 10 0 0 0 0 0 10 0 2 0 1 0 0 2 0 0 82 0 0 0 0 13 34 0 8 0 0 0 0 1 7 0 0 0 0 0 0 0 0 0 71 1 7 0 0 0 62 0 1.6 0.0 0.2 0.0 0.0 0.0 1.4 0.0 8 0 2 0 0 0 6 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 Vegetable oils Soybean oil Groundnut oil Sunflow er seed oil Rape and m ustard oil Cottonseed oil Palm kernel oil Palm oil Copra oil Sesam e seed oil Olive oil Rice bran oil Maize germ oil Oilcrops oil, other 35 0 0 0 0 2 0 0 6 0 0 Vegetables Tom atoes Onions Vegetables, other 0 36 14 14 1483 324 68 1090 - - 0 0 536 5 0 0 0 0 2 515 12 0 0 1 1 114 6 0 108 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 0 80 5 0 0 0 0 0 73 1 0 0 0 0 227 0 0 227 - - 0 35 491 0 0 0 0 1 2 442 17 0 0 14 15 1370 330 68 971 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 35 0 0 0 0 0 0 0 0 0 0 0 0 0 - - 0 0 0 0 135 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 187 33 7 148 - - 0 0 258 0 0 0 0 0 0 256 0 0 0 0 3 0 0 0 0 - - 0 0 232 0 0 0 0 1 2 186 17 0 0 14 12 1311 298 27 986 - - 0.0 0.0 5.1 0.0 0.0 0.0 0.0 0.0 0.0 4.1 0.4 0.0 0.0 0.3 0.3 28.9 6.6 0.6 21.7 - - 0 0 123 0 0 0 0 1 1 98 9 0 0 7 6 17 3 1 13 - - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 - - 0 0 14 0 0 0 0 0 0 11 1 0 0 1 1 0 0 0 0 Economic Survey 2018 FOOD BALANCE SHEET 2016 Products DOMESTIC SUPPLY (1000 MT) 45,367 Population('000): DOMESTIC UTILIZATION (1000 MT) PER CAPUT SUPPLY PER Prod. Imports Stock Exports Total changes Feed Seed Processed Waste Oth.Util. Food YEAR D.S. 1000 Metric Tons Fruits Oranges & m andarins Lem ons & lim es Grapefruit Citrus, other Bananas Plantains Apples (excl. cider) Pineapples Dates Grapes (excl. w ine) Fruit, other PER DAY FOOD Calories Kg. units Proteins grams Fats grams 2730 65 13 2 135 691 600 2 388 1 0 834 101 49 1 0 0 1 0 16 1 4 3 27 0 0 0 0 0 0 0 0 0 0 0 0 249 0 0 0 0 0 0 0 132 0 0 116 2583 113 13 2 135 692 600 18 257 5 3 745 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 6 0 0 0 0 0 284 11 1 0 14 104 60 2 39 0 0 54 0 0 0 0 0 0 0 0 0 0 0 0 2248 102 12 2 121 588 534 17 218 5 3 646 49.5 2.2 0.3 0.0 2.7 13.0 11.8 0.4 4.8 0.1 0.1 14.2 80 2 0 0 2 21 29 0 7 1 0 18 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 Stim ulants Coffee Cocoa Beans Tea 519 46 0 473 12 1 2 9 5 5 0 0 542 58 1 484 -6 -5 2 -2 0 0 0 0 0 0 0 0 465 0 0 465 14 0 0 14 0 0 0 0 5 4 2 0 0.1 0.1 0.0 0.0 0 0 0 0 0 0 0 0 0 0 0 0 Spices Pepper Pim ento Cloves Spices, other 256 0 5 1 250 3 0 0 0 3 0 0 0 0 0 3 0 0 0 2 256 0 5 0 251 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 256 0 5 0 251 5.6 0.0 0.1 0.0 5.5 52 0 1 0 51 2 0 0 0 2 2 0 0 0 2 Alcoholic beverages Wine Beer Beverages, ferm ented Beverages, alcoholic Alcohol, non food - 417 0 210 181 26 7 4 2 0 1 0 0 0 0 0 2 1 1 0 1 422 3 211 181 26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 422 3 211 181 26 9.3 0.1 4.7 4.0 0.6 15 0 5 4 5 0 0 0 0 0 0 0 0 0 0 Meat Bovine m eat Mutton & goat m eat Pig m eat Poultry m eat Other m eat 612 529 0 0 64 19 - - 1 0 0 1 0 0 - 0 0 0 0 0 0 - 8 2 5 2 0 0 - 605 528 -5 -1 64 19 - 0 0 0 0 0 0 - 0 0 0 0 0 0 - 0 0 0 0 0 0 - 0 0 0 0 0 0 - 0 0 0 0 0 0 709 528 74 10 64 34 - - 15.6 11.6 1.6 0.2 1.4 0.7 - 79 60 8 3 5 3 - 6 5 1 0 0 0 7 6 1 0 0 0 Offals 76 0 0 0 76 0 0 0 0 0 76 1.7 5 1 0 Anim al fats Butter, ghee Cream Fats, anim al, raw Fish, body oil Fish, liver oil 17 1 0 16 0 0 4 0 0 4 0 0 0 0 0 0 0 0 1 0 0 0 0 0 20 1 0 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 13 0 0 0 0 0 0 0 0 3 0 0 3 0 0 4 1 0 3 0 0 0.1 0.0 0.0 0.1 0.0 0.0 2 1 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Milk (excl butter) 4410 33 0 5 4438 17 0 379 344 0 4512 99.5 175 9 10 84 0 0 0 84 0 5 0 13 0 67 1.5 5 0 0 0 0 0 0 0 0 0 0 47 23 0 21 2 0 0 0 0 0 0 0 0 0 0 0 19 3 10 3 1 0 1 0 28 20 -10 18 1 0 -1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 187 142 0 21 22 0 1 0 4.1 3.1 0.0 0.5 0.5 0.0 0.0 0.0 7 5 0 1 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Eggs Fish & sea food Freshw ater fish Dem ersal fish Pelagic fish Marine fish, other Crustaceans Molluscs other Cephalopods Aquatic products, other Aquatic m am m als m eat Aquatic anim als, other Aquatic plants Miscellaneous Infant food Miscellaneous, other 0 18 0 18 - 0 7 0 7 - 0 2 1 2 - 0 14 1 14 - 0 13 0 13 - 0 0 0 0 - 0 0 0 0 - 0 - 7 0 7 136 0 0 0 0 - 0 3 0 3 - 0 3 0 3 - 0.0 0 0 0 - 0 1 0 1 - 0 0 0 0 - 0 0 0 0 Chapter 8: Environment and Natural Resources Chapter 08 Environment and Natural Resources T Overview he environment and natural resources sector registered mixed performance on selected indicators in 2017. Gross Value Added from the sector grew by 6.3 per cent in 2017. The total expenditure by national government on water and related services is expected to decline from KSh 43.9 billion in 2016/17 to KSh 35.5 billion in 2017/18. The value of fish landed which has been on the decline for the last three consecutive years, dropped by 6.1 per cent to KSh 23.0 billion in 2017. Total area covered by forest increased marginally from 4,185.2 thousand hectares in 2016 to 4,225.4 thousand hectares in 2017. Sales of timber from Government forests declined from 1,037.3 thousand true cubic meters in 2016 to 881.6 thousand true cubic meters in 2017. Total value of mineral output increased by 2.0 per cent to KSh 23.8 billion in 2017. The country experienced reduced rainfall and rising temperatures in most parts, during the review period. Environment and Natural Resources Gross Value Added 8.2. Gross Value Added (GVA) of selected activities under the environment and natural resources sector from 2013 to 2017 is shown in Table 9.1. Overall, environment and natural resources accounted for 3.2 per cent of Gross Domestic Product (GDP) while the GVA grew by 6.3 per cent from KSh 235.7 billion in 2016 to KSh 250.6 billion in 2017. Output from Forestry and Logging grew by 9.2 per cent from KSh 91.1 billion in 2016 to KSh 99.5 billion in 2017 while that from Fishing and Aquaculture, and Water Supply, grew by 4.6 and 11.0 per cent, respectively, in 2017. During the review period, the GVA from the Mining and Quarrying industry dropped marginal from KSh 59.1 billion in 2016 to KSh 58.5 billion. Table 8.1: Trends in Environment and Natural Resources Gross Value Added, 2013 - 2017 Industry 2013 Forestry and Logging…………………… 67,230 Fishing and Aquaculture……………….. 34,315 Mining and Quarrying………………….. 40,742 1 Water Supply ………………………………40,442 Total 182,730 GDP at Current Prices 4,745,090 Natuaral Resource as per cent of GDP 3.9 2014 72,148 38,732 44,936 2015 79,697 40,300 54,584 2016 91,084 35,033 59,130 42,102 197,918 5,402,647 3.7 46,814 221,395 6,284,185 3.5 50,418 235,664 7,194,147 3.3 KSh Million 2017* 99,511 36,647 58,459 55,989 250,606 7,749,426 3.2 * Prov is ional 1 Includes s ewerage and was te management Water 8.3. In pursuit of the policy to provide clean water to households within a reasonable distance, Supplies the Government has continued to initiate and maintain modest Water Purification Points (WPPs). As presented in Table 8.2, the number of WPPs is expected to increase from 248 in 2016/17 to 258 in 2017/18. 8.4. The Ministry of Water and Sanitation together with the private sector are engaged in drilling of boreholes to improve access to water for households. A total of 2,419 boreholes are expected to be sunk country-wide in 2017/18 compared to 1,557 boreholes sunk in 2016/17 as a drought mitigation measure. Whereas the number of boreholes drilled by the public sector declined, those drilled by the private sector almost doubled in 2017/18. 137 Economic Survey 2018 Table 8.2: Water Purification Points and Boreholes Drilled, 2013/14 - 2017/18 2013/14 2014/15 2015/16 …………………. Water Purification 230 Boreholes ……………………………… 376 Public ………………………………………….. 74 Private Sector………………………………….. 302 Points 1 234 607 13 594 242 446 4 442 2016/17 248 1,557 305 1,252 Number 2017/18* 258 2,419 239 2,180 Source: Minis try of W ater and Sanitation * Prov is ional 1 Cumulativ e 8.5. Table 8.3 shows development expenditure by the National Government on water supplies and related services over the financial years 2013/14 to 2017/18. The overall National Government expenditure on water and related services is expected to decline from KSh 43.9 billion in 2016/17 to KSh 35.5 billion in 2017/18. Factors contributing to the decline include Government expenditure rationalization and the gradual channeling of funds to County Governments following devolution of water services. 8.6. The budget items mostly affected were allocations to the National Water Conservation and Pipeline Corporation (NWCPC) and Water Development. Allocation to the NWCPC dropped drastically from KSh 1.9 billion in 2016/17 to KSh 0.2 billion in 2017/18 on the account of transfer of the function of drilling boreholes and small dams to the County Governments. 8.7. Expenditure on Water Development had the highest share of the total budgetary allocation for water supplies and related services over the entire period. Expenditure on this item is expected to drop by 23.6 per cent from KSh 34.8 billion in 2016/17 to KSh 26.6 billion in 2017/18. Expenditure on Rural Water Supplies is expected to increase from KSh 0.6 billion in 2016/17 to KSh 1.6 billion in 2017/18, while that on Miscellaneous and Special Water programs is expected rise from KSh 0.4 billion to KSh 0.6 billion in 2017/18. Expenditure on Irrigation Development is expected to almost double while that of National Irrigation Board (NIB) is expected to increase by KSh 33.3 million in 2017/18. Table 8.3: Development Expenditure on Water Supplies and Related Services by the National Government, 2013/14 - 2017/18 KSh Million Item 2013/14 2014/15 2015/16 2016/17 2017/18* Water Development ……………………………………………………………………. 15,385.0 17,329.0 23,247.7 34,829.1 26,573.0 Training of Water Development Staff …………………………………………………………………. 135.0 170.0 150.0 31.0 31.0 Rural Water Supplies …………………………………………………………………. 300.6 1,326.5 1,436.7 620.2 1,622.0 Miscellaneous and Special Water Programs …………………………………………………………………. 2,153.0 304.8 528.0 373.7 607.0 National Water Conservation and Pipeline Corporation …………………………………………………………………. 3,507.2 2,460.0 1,156.0 1,891.7 244.0 Irrigation Development …………………………………………………………………. 139.0 157.2 2,190.9 245.0 480.0 National Irrigation Board …………………………………………………………………. 11,268.6 10,900.0 12,569.7 5,860.0 5,893.3 32,888.4 32,647.5 41,279.0 43,850.7 35,450.3 TOTAL Source: Minis try of W ater and Sanitation * Prov is ional 138 Chapter 8: Environment and Natural Resources Fisheries 8.8. Despite efforts made by the Government to ensure optimal exploitation of fishery products, the fisheries sub-sector continued to register a decline in performance as presented in Table 8.4. Over the last five years, fish from fresh water sources accounted for over 80 per cent of the total fish landed. Fish landed from marine sources contributed a relatively smaller share mainly due to inadequate facilities and technology necessary for fishing in deep waters. Total quantity of fish landed declined from 147.7 thousand tonnes in 2016 to 135.1 thousand tonnes in 2017. Fish from fresh water sources dropped from 123.5 thousand tonnes in 2016 to 111.8 thousand tonnes in 2017, mainly attributed to decline in catches from Lake Victoria, Lake Turkana and Fish Farming. 8.9. Fish landed from Lake Victoria accounted for 68.5 per cent of the total fish landed during the year. However, the lake’s annual output dropped from 98.7 thousand tonnes in 2016 to 92.7 thousand tonnes in 2017. The encroachment of water hyacinth, coupled with destructive fishing practices and dwindling stocks of Nile perch species in the Lake are some of the reasons for the declining fish catch in Lake Victoria. Fish landed from Lake Turkana declined from 7.9 thousand tonnes in 2016 to 4.0 thousand tonnes in 2017 on account of receding water levels coupled with improper fishing practices and poor fish handling. 8.10. The quantity of fish from Fish Farming reduced from 15.0 thousand metric tonnes in 2016 to 12.4 thousand metric tonnes in 2017. The decline was partly attributed to failure by farmers to re-stock fish ponds in 2017, citing high prices of fish inputs and drying up of ponds due to drought during the year under review. Total output from marine sources recorded a decline of 3.7 per cent from 24.2 thousand tonnes in 2016 to 23.3 thousand tonnes with marine fish accounting for 88.5 per cent. Crustaceans and molluscs contributed only 3.0 and 8.5 per cent of marine sources, respectively, in 2017. 8.11. Total value of fish landed which has been on the decline for three consecutive years, dropped further from KSh 24.5 billion in 2016 to KSh 23.0 billion in 2017. The value of fresh water fish dropped by 6.1 per cent from KSh 19.8 billion in 2016 to KSh 18.6 billion in the year under review. Similarly, the value of fish from marine sources decreased from KSh 3.4 billion in 2016 to KSh 3.3 billion in 2017. Figure 8.1: Value of Fish Landed, 2013 – 2017 139 Economic Survey 2018 Table 8.4: Quantity and Value of fish landed, 2013 - 2017 2013 2014 2015 2016 2017* 98,666 92,727 Lake Turkana + ……………………………………………………. 4,338 4,166 10,605 7,926 Lake Naivasha ……………………………………………………. 231 633 1,072 1,064 Lake Baringo ……………………………………………………. 263 302 176 141 Lake Jipe……………………………………………………. 116 115 123 106 Tana River dams ……………………………………………………. 705 1,024 852 444 Fish Farming ……………………………………………………. 23,501 24,096 18,656 14,952 Other areas ……………………………………………………. 456 296 312 214 SUB-TOTAL 154,253 159,340 141,698 123,513 4,021 1,689 155 112 422 12,356 332 111,814 Quantities - Tonnes: Freshwater fish Lake Victoria ……………………………………………………. 124,643 128,708 109,902 Marine Sources + Marine fish ……………………………………………………. 7,667 20,870 19,742 Crustaceans ……………………………………………………. 799 713 621 Molluscs ……………………………………………………. 670 1,703 2,045 SUB-TOTAL 9,136 23,286 22,408 G RAND TOTAL 163,389 182,626 164,106 Value - KSh M illion Freshwater fish ……………………………………………………. 19,984 20,941 20,750 Marine fish ……………………………………………………. 921 3,418 3,018 Crustaceans ……………………………………………………. 286 968 475 Molluscs ……………………………………………………. 90 255 303 TOTAL 21,281 25,582 24,546 21,190 772 2,203 24,165 147,678 20,601 702 1,983 23,286 135,100 19,771 3,424 888 379 24,462 18,581 3,287 777 312 22,957 Source: Keny a Fis heries Serv ice * Prov is ional + Rev is ed Forestry 8.12. Table 8.5 shows the status of forests in the country from 2013 to 2017. Total forest area consisting of natural and plantation forests increased marginally from 4,185.2 thousand hectares in 2016 to 4,225.4 thousand hectares in 2017. The area under natural forests increased from 3,994.4 thousand hectares in 2016 to 4,036.0 thousand hectares in 2017, mainly due to an increase in area under indigenous mixed trees. The share of forest cover increased to 7.29 per cent in 2017 from 7.22 per cent in 2016. Table 8.5: Forest Coverage by Category, 2013 - 2017 Category of Forest Cover Type Natural Forests Indegenous Mixed trees... Bamboo............................. Mangroves ........................ Sub Total Public Plantation forests ...................... Private Plantation forests ..................... Total Forest Area Grassland and Bushland......................... Total Area for Country....................... Forest percentage 2013 2014 2015 2016 3,853.0 59.0 54.0 3,966.0 135.3 71.0 4,172.3 34,909.0 58,037.0 7.20 3,795.5 57.0 54.0 3,906.5 136.5 60.0 4,103.0 41,200.0 58,037.0 7.07 3,854.6 60.0 54.0 3,968.6 139.4 55.0 4,163.0 41,170.0 58,037.0 7.17 3,884.4 58.0 52.0 3,994.4 140.8 50.0 4,185.2 41,100.0 58,037.0 7.22 Source: Keny a Fores t Serv ice * Prov is ional 140 '000 Ha 2017* 3,928.0 59.0 49.0 4,036.0 142.4 47.0 4,225.4 41,100.0 58,037.0 7.29 Chapter 8: Environment and Natural Resources 8.13. As shown in Table 8.6, the total area of Government forest plantations increased from 131.4 thousand hectares in 2016 to 135.1 thousand hectares in 2017, an increase of 2.8 per cent. Area planted with trees grew by 6.8 per cent from 10.3 thousand hectares in 2016 to 11.0 thousand hectares in 2017 while area clear-felled decreased from 6.8 thousand hectares in 2016 to 5.2 thousand hectares in 2017. During the same period, tree planting failures and damages from forest fire resulted to loss of 2,100 hectares of forest stocks. This mainly resulted from the widespread drought experienced in the country during the year. Table 8.6: Government Forest Plantation Stocking, 2013 - 2017 '000 Ha 2013 2014 2015 2016 2017* 131.4 Previous Plantation Area1 . . . . . . . . . . . 127.1 . . . . . . . .129.4 . . . . . . 129.4 . . . . . . . .130.5 .. .. Area Planted. . . . . . . . . . . . . . . . . . . . . . . 8.2 . . . . . . . 7.1 . . . . . . .10.0 . . . . . . 10.3 . . . . . . . .11.0 . Total . . . . . . . . . . . . . . . . . . . . . . . . .135.3 . . . . . . .136.5 . . . . . . .139.4 . . . . . . .140.8 . . . . . . . 142.4 .. .. Area Clear felled . . . . . . . . . . . . . . . . . . . . .4.7 . . . . . . . 6.1 . . . . . . .4.7 . . . . . . . 6.8 . . . . . . . 5.2 . Planting failures/fire damages . . . . . . . . . 1.2 . . . . . . . 1.0 . . . . . . . .4.2 . . . . . . 2.6 . . . . . . 2.1 Total Area 129.4 129.4 130.5 131.4 135.1 Stocking Source: Keny a Fores t Serv ice * Prov is ional 1 Opening s tock at the beginning of the y ear 8.14. Table 8.7 presents recorded sales of products from government forest in 2013 to 2017. Total sales of timber decreased from 1,037.3 thousand true cubic meters in 2016 to 881.6 thousand true cubic meters in 2017. The sales of softwood timber declined by 17.4 per cent from 966.4 thousand cubic meters in 2016 to 798.2 thousand cubic meters in 2017, reflecting the impact of control measures put in place to conserve the existing forests. Notable decline was also recorded on sale of fuel wood which reduced from 147.2 thousand stacked cubic meters in 2016 to 53.7 thousand stacked cubic meters in 2017. However, sales of hardwood timber grew by 17.6 per cent to 83.4 thousand true cubic meters in 2017 from 70.9 thousand true cubic meters in 2016. Sales of power poles recorded an increase of 48.7 per cent during the review period. Table 8.7 -Sale of Products from Government Forest, 2013 - 2017 Forest Products 2013 2014 2015 2016 2017* Timber - '000 true cu. metresSoft wood .. .. .. .. .. .. .. .. .. .. .. .. 933.7 .. .. .. .. ..1,167.0 .. .. .. .. .. ..621.1 .. .. .. .. .. 966.4 .. .. .. .. .. ..798.2 .. .. .. .. .. .. .. .. Hard wood .. .. .. .. .. .. .. .. .. .. .. .. .. .. - .. .. .. ..30.6 .. .. .. .. .. 12.4 .. .. .. .. .. 70.9 .. .. .. .. .. ..83.4 .. .. .. .. .. .. .. .. TOTAL .. .. .. .. .. .. .. .. .. .. .. .. 933.7 .. .. .. .. ..1,197.6 .. .. .. .. .. ..633.5 .. .. .. .. ..1,037.3 .. .. .. .. .. ..881.6 .. .. .. .. .. .. .. .. Fuelwood ( 000 stacked cu. Metres).. .. .. ..64.0 .. .. .. .. ..70.0 .. .. .. .. .. 43.7 .. .. .. .. .. 147.2 .. .. .. .. .. ..53.7 .. .. .. .. .. .. .. .. .. Power Poles (000) .. .. .. .. .. .. .. .. .. .. .. 14.5 .. .. .. .. .... .. 43.3 .... .. 34.5 23.0 34.2 Source: Keny a Fores t Serv ice * Prov is ional. Mining 8.15. Table 8.8 presents the quantity and value of mineral production for the last five years. Soda ash output increased marginally from 301.7 thousand tonnes in 2016 to 303.6 thousand tonnes in 2017. Gold and salt outputs recorded significant growths, from 0.2 thousand tonnes and 23.4 thousand tonnes in 2016 to 0.5 thousand tonnes and 43.2 thousand tonnes in 2017, respectively. The increase in gold output was partly due to an upsurge in gold mining activities following abolition of the special gold license which was prohibitively expensive. However, fluorspar output declined by 83.8 per cent from 42.6 thousand tonnes in 2016 to 6.9 thousand tonnes in 2017. 141 Economic Survey 2018 8.16. Extraction of Titanium ore increased by 1.5 per cent from 588.4 thousand tonnes in 2016 to 597.0 thousand tonnes in 2017. During the review period, titanium ore concentrates recorded marginal growths of 0.9, 4.3 and 1.0 per cent for Ilmenite, Rutile and Zircon, respectively. Gemstones (rough) output reduced by 76.0 per cent from 518.2 thousand tonnes in 2016 to 124.3 thousand tonnes in 2017. On the other hand, the quantities of crushed refined soda dropped from 741 thousand tonnes in 2016 to 539 thousand tonnes in 2017, representing a 27.3 per cent decrease. 8.17. Total value of mineral output increased by 2.1 per cent from KSh 23.3 billion in 2016 to KSh 23.8 billion in 2017. The low growth in value despite high mineral prices was contributed by decreased earnings from fluorspar, gemstones and salt. Earnings from gold more than doubled from KSh 652.5 million in 2016 to KSh 1,533.6 million in 2017. Earnings from titanium ores increased by 2.3 per cent from KSh 13.3 billion in 2016 to KSh 13.6 billion in 2017. 142 Chapter 8: Environment and Natural Resources Table 8.8: Quantity and Value of Mineral Production, 2013 - 2017 Mineral 2013 2014 2015 2016 2017* MineralsSoda Ash . .. .. .. .. .. .. .. .. .. .. ..468,215.0 .. .. .. .. .. .. 409,845.0 .. 319,761.0 301,719.0 303,580.0 Fluorspar . .. .. .. .. .. .. .. .. .. .. .. ..71,987.0 .. .. .. .. .. .. ..97,156.0 .. Quantities - Tonnes: 70,096.0 42,656.0 6,945.0 . .. .. .. .. .. .. .. .. .. .. .. .. .. ..8,895.0 .. .. .. .. .. .. 18,936.0 .. .. .. .. .. .. ..21,201.0 .. .. 23,425.0 43,245.1 Crushed Refined Soda. .. .. .. .. .. ..947,074.0 .. .. .. .. .. .. ..851,906.0 .. .. .. .. .. .. 614,055.0 .. .. .. . 741,000.0 538,952.2 Carbon Dioxide .. .. .. .. .. .. .. .. .. 18,436.0 .. .. .. .. .. .. ..19,450.0 .. .. .. .. .. .. ..19,750.0 .. .. .. .. 19,550.0 19,775.0 1,237.6 1,278.3 Salt Diatomite .. .. .. .. .. .. 1,054.0 1,195.0 1,090.0 Gold (kg) .. .. .. .. .. .. .. .. .. .. .. .. 2,100.0 .. .. .. .. .. .. .. ..237.1 .. .. .. .. .. .. ..336.9 .. .. .. .. .. .. ..196.9 .. .. .. .. .. Gemstones(cut) in 000 carrats.. - - - Gemstones (rough) .. .. .. .. .. .. .. .. ..563.0 .. .. .. .. .. .. 247.3 .. .. .. .. .. .. .. 442.0 .. .. .. .. .. Manganese Ore Titanium Ore Minerals - - - 518.2 - 502.6 22,956.0 124.3 9,125.0 -00.0 374,131.2 549,897.0 588,421.0 596,987.0 Ilmenite .. .. .. .. . - 281,543.0 444,999.0 465,728.0 470,240.0 Rutile .. .. .. .. . - 52,465.0 78,947.0 87,716.0 91,454.0 Zircon .. .. .. .. . - 40,123.2 25,951.0 34,977.0 35,293.0 Value - KSh Million Soda Ash . .. .. .. .. .. .. .. .. .. .. .. ..8,865.2 .. .. .. .. .. .. ..7,840.8 .. .. .. .. .. .. ..6,599.6 .. 6,227.2 6,259.7 1,427.7 868.8 100.3 Salt . .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. ..71.6 .. .. .. .. .. .. 173.5 .. .. .. .. .. .. .. 197.8 .. .. .. 218.5 98.9 Crushed Refined Soda .. .. .. .. .. .. .. ..631.9 .. .. .. .. .. .. ..568.4 .. .. .. .. .. .. 409.7 494.4 1,108.9 Carbon Dioxide .. .. .. .. .. .. .. .. .. .. ..495.6 .. .. .. .. .. .. ..503.9 .. .. .. .. .. .. 525.6 .. .. .. 514.9 510.7 Fluorspar . .. .. .. .. .. .. .. .. .. .. .. .. 1,783.0 .. .. .. .. .. .. ..1,901.0 .. .. .. . 75.2 79.4 Gold .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..7,432.6 .. .. .. .. .. .. .. 695.3 .. .. .. .. .. .. .. 978.7 .. .. .. .. .. .. .. 652.5 .. .. .. Diatomite .. .. .. .. .. .. .. 1,533.6 Gemstones(cut) in 000 carrats 69.6 - 70.6 - 70.6 - Gemstones (rough) .. .. .. .. .. .. .. .. ..411.0 .. .. .. .. .. .. 263.6 .. .. .. .. .. .. .. 798.4 .. .. .. .. .. Manganese Ore Titanium Ore Minerals - - - 936.0 - 128.6 238.3 47.0 -00 9,063.4 12,819.0 13,296.9 13,648.2 Ilmenite .. .. .. .. . - 3,697.0 3,763.0 3,430.8 3,464.0 Rutile .. .. .. .. . - 4,085.2 6,329.0 6,818.7 7,109.3 Zircon .. .. .. .. . - 1,281.2 2,727.0 3,047.4 3,074.9 19,760.5 21,080.5 23,827.1 23,284.4 23,753.6 TOTAL Source: Ministry of Mining and Petroleum * Provisional Wildlife 8.18. Table 8.9 presents average export prices of soda ash, fluorspar, and titanium ore and its concentrates for the period 2013 to 2017. The average export price of soda ash declined by 1.4 per cent in 2017 compared to 8.4 per cent in 2016. The export price for fluorspar improved by 2.8 per cent in 2017 while that of titanium ore and its concentrates increased by 43.8 per cent during the same period. 143 Economic Survey 2018 Table 8.9: Average Export Prices of Soda Ash, Fluorspar, and Titanium Ore and Concentrates, 2013 2017 KSh per tonne Mineral 2013 2014 2015 2016 2017* Soda Ash.......................................... 18,790 19,774 22,925 20,998 20,714 Fluorspar......................................... 21,978 20,029 20,368 17,313 17,798 Titanium Ore and Concentrates..... - 20,198 19,100 17,968 25,840 * Prov is ional 8.19. Kenya is endowed with different wildlife species which contributes substantially to the national economy through tourism. The population of most wildlife species in the country have declined over the years owing to factors such as poaching, habitat loss and drought. 8.20. The population of different wildlife species in the rangelands as derived from aerial sample surveys is shown in Table 8.10. Wildlife species whose numbers show substantial decline include Burchell’s zebra, Grant’s gazelle, giraffe, impala, thomson’s gazelle and topi. Wildlife species that showed moderate decline in numbers include eland, elephants, gerenuk and Grevy’s zebra. The main possible cause of these declines was prolonged drought that was experienced during the review period. The rest of the wildlife species declined in population numbers, although not to significant levels. Table 8.10: Wildlife Population Estimates1 in the Kenya Rangelands, 2013-2017 Species1 2013 2014 2015 Buffalo……………………….…………………….. 13.0 15.6 15.0 Burchell’s Zebra………………………………….. 100.3 110.2 100.0 Eland…………………………………….……….. 5.8 4.7 4.3 Elephant…………………...…………………….. 16.0 15.9 15.8 Gerenuk………………...………………….…….. 16.0 15.8 15.5 Giraffe……………………………..……...…….. 19.0 18.9 18.5 Grant’s Gazelle………………………………….. 111.7 111.9 111.9 Grevy’s Zebra………………………………….. 3.0 3.0 3.0 Hunters Hartebeest………………………………….. 0.7 0.3 0.3 Impala………………………………..…………….. 61.8 59.9 59.0 Kongoni…………………………………..………….. 5.0 4.9 4.9 Kudu…………………………………..………….. 11.0 11.0 11.0 Oryx……………………………..……………….. 14.5 14.0 13.9 Ostrich……………………………………..……….. 28.5 27.8 27.7 Thomson’s Gazelle………………………………….. 42.0 43.4 43.0 Topi……………………………………..……….. 20.5 15.3 15.3 Warthog ……………………………………..……….. 18.4 17.0 16.9 Waterbuck………………………………..………….. 3.5 2.9 2.8 Wildebeest……………………………..……………….. 276.0 270.0 265.0 Source: Directorate of Res ource Surv ey s and Remote Sens ing * Prov is ional 1 De rive d us ing a e ria l s a mple s urve y s 144 '000 Number 2016 2017* 18.7 110.0 5.6 22.0 12.0 18.6 112.1 2.9 0.4 58.0 5.5 9.9 10.0 28.4 42.6 14.9 15.2 2.7 240.0 17.8 104.5 5.3 20.0 11.4 17.0 106.5 2.6 0.4 55.1 5.2 9.4 9.5 26.9 40.5 12.0 14.4 2.6 228.0 Chapter 8: Environment and Natural Resources Refuse 8.21. Table 8.11 presents expenditure on cleaning and refuse management by Nairobi City Management County (NCC). The total expenditure for 2017/18 is expected to decline by 45.4 per cent from KSh 1,067.1 million in 2016/17 to KSh 582.3 million in 2017/18. Table 8.11: Expenditure on Cleaning and Refuse Management by the Nairobi City County, 2012/132016/17 KSh Million Expenditure Category 2013/14 2014/15 2015/16 2016/17 2017/18* Cleaning and Administration . . . . . . . 151.0 . . . . . . . . 143.0 . . . . . . . . . . .- . . . . . . . . -. . . . . . . . . -. . . . . . . . . . . . . . . Cleaning - General. . . . . . . . . . . . . . .36.9 . . . . . . . . 20.9 . . . . . . . . . -. . . . . . . . . -. . . . . . . . . -. . . . . . . . . . . . . . . . Refuse Removal . . . . . . . . . . . . . . .380.0 . . . . . . . .255.2 . . . . . . . . 862.7 . . . . . . . . 1,067.1 . . . . . . . . . .582.3 . .. .. .. .. .. .. .. .. . Total. . . . . . . . . . . . . . . . . . . . . . 567.9 . . . . . . . . .419.1 . . . . . . . .862.7 . . . . . . . .1,067.1 . . . . . . . . . 582.3 .. .. .. .. .. .. .. .. .. Source: Nairobi City County * Prov is ional 8.22. Management of solid waste has been a big challenge facing authorities mandated to undertake this task. There was a slight drop of solid waste collected by NCC from 460.0 thousand tonnes collected in 2016 to 459.9 thousand tonnes in 2017 as shown in Table 8.12. Table 8.12: Solid Waste Collected, 2013 - 2017 000 Tonnes Year 2013 2014 2015 2016 2017* Nairobi County. . . . . . . . . . . . . . . . . . . . .274.4 . . . . . . . 331.0 . . . . . . . 282.0 . . . . . . . .460.0 . . . . . . . 459.9 .. .. .. .. .. .. .. .. .. Source: Nairobi City County * Prov is ional Environment 8.23. Table 8.13 presents the number of Environmental Impact Assessments (EIAs) Impact on the high risks projects for 2013 to 2017. High risk projects are those classified as Assessments posing substantial negative impacts to the environment. The number of EIAs on high risk proposed projects decreased by 1.7 per cent from 1,874 in 2016 to 1,842 in 2017. The energy sector recorded a significant increase in the number of EIAs compared to the other sectors. This was attributed to increased investments in oil and gas, especially in the increase in the number of petrol stations being constructed. The transport and communication sector recorded the highest number of EIAs in 2017 though there was a 17.9 drop from the number of EIAs received in 2016. Table 8.13: Environment Impact Assessments by Sector, 2013 - 2017 Number Sector 2013 2014 2015 2016 2017* 208 437 607 636 522 Transport and Communication ……………………………………………………….. Energy …………………………… ………………………………………………………..………………………… 163 188 298 422 501 12 11 14 11 8 Tourism ……………………………… ………………………………………………………..……………………… 26 19 18 28 51 Mining and Quarrying ……………………………………………………….. 320 340 505 545 434 Human settlements and Infrastructure ……………………………………………………….. 34 34 26 21 31 Agriculture and Forestry ……………………………………………………….. 85 149 135 150 228 Commerce and Industry ……………………………………………………….. 8 41 51 61 67 Water Resources ……………………………………………………….. TOTAL 856 1,219 1,654 1,874 1,842 Source: National Env ironment Manag ement A uthority (NEMA ) 145 Economic Survey 2018 Weather 8.24. An assessment of the long rains March-April-May (MAM) rainfall recorded from March Patterns to May 2017 indicated that the rainfall performance was generally poor over most parts of the country. The long rain seasonal rainfall was characterized by late onset as well as poor distribution, both in time and space. Generally sunny and dry weather conditions were dominant over the entire country in March 2017. Much of the rainfall was recorded during the second half of April and May 2017. 8.25. As shown in Figure 8.2, most meteorological stations in the country recorded below their seasonal Long-Term Means (LTMs) for the March to May long rain season. However, Machakos, Mtwapa and Mombasa stations recorded rainfall above the LTMs. Stations that recorded near-normal rainfall include Kisumu, Kakamega, Kericho, Eldoret, Kisii, Nyeri, Meru, Msabaha, Lamu, Malindi and Makindu. Stations that recorded the most depressed rainfall were Nyahururu, Mandera, Moi Airbase, Wilson Airport, Dagoretti, Thika, Voi, Marsabit and Lodwar. Figure 8.2: Long Rains (March to May) Performance, 2017 8.26. The seasonal short rains October-November-December (OND) was characterized by early cessation whereby most parts of the country remained generally sunny and dry. As shown in Figure 8.3, this was more so in North-Western and North-Eastern Kenya where all meteorological stations recorded little rainfall. Stations that received well above their LTM included Malindi, Wajir, Laikipia, Eldoret, Mombasa, Eldoret AP, Mtwapa, Thika and Dagoretti. Depressed rainfall was witnessed in Garissa, Lamu, Voi and Narok stations. 146 Chapter 8: Environment and Natural Resources Figure 8.3: Short Rains (October to December) performance, 2017 8.27. Figure 8.4 depicts the annual, March to May, June to August and October to December seasonal rainfall trends being on the decrease during the period 2008 to 2017. However, during the review period, annual and October to December seasonal rainfall trend line shows a sharp reduction. The October to December seasonal rainfall was characterized by high temporal variability. There was low average rainfall of less than 200 mm in 2010 and 2016 and high average rainfall of more than 400 mm in 2011 as shown in Table 8.14. The March to May season, was characterized by low temporal variability with a low average rainfall of about 250 mm in 2009, and a high average of more than 400 mm in 2010 and 2013. Table 8.14 - Mean Annual and Seasonal Rainfall Season Annual......... Mar - May.. Jun - Aug.... Oct - Dec.... 2008 2009 2010 2011 2012 2013 2014 2015 2016 835.8 820.7 1,024.1 1,009.5 1,030.4 1,007.9 891.7 876.5 703.9 313.9 250.9 476.9 262.5 399.3 469.0 297.8 350.3 350.7 219.7 160.9 228.4 260.4 239.8 155.3 199.2 110.4 104.6 246.1 342.9 197.1 439.9 372.1 265.6 286.1 360.6 142.8 Source: Keny a Meteorological Department 147 mm 2017 675.3 354.0 104.0 155.0 Economic Survey 2018 Figure 8.4: Mean Annual and Seasonal Rainfall 8.28. Both annual and seasonal maximum temperatures were characterized by increasing trends as shown in Table 8.15 and Figure 8.5. However, minimum temperatures were characterized by mixed trends as presented in Table 8.16 and Figure 8.6. Table 8.15 - Mean Annual and Seasonal Maximum Temperatures 0C Season/Year Annual................. Mar - May.......... Jun - Aug............ Oct - Dec............ 2008 27.7 28.2 25.5 27.9 2009 28.4 29.3 26.9 28.1 2010 27.9 28.3 26.2 28.4 2011 27.9 29.2 26.7 27.4 2012 27.8 28.6 25.5 27.6 2013 27.7 28.1 25.8 28 2014 28.5 29.2 27.1 28.7 2015 29 29.4 27.4 28.7 2016 28.7 29.8 26.6 29.1 2017 28.9 30.3 27.4 29.2 Source: Keny a Meteorolog ical Department Figure 8.5: Mean Annual and Seasonal Maximum Temperatures Table 8.16: Mean Annual and Seasonal Minimum Temperatures 0C Season/Year Annual................. Mar - May.......... J un - Aug............ Oct - Dec............ 2008 16.9 17.6 16.3 17.2 2009 17.4 18.3 16.4 17.9 2010 17.5 18.6 16.8 17.3 2011 17.3 18.2 16.9 17.5 Source: Keny a Meteorolog ical Department 148 2012 17.1 17.8 16.6 17.7 2013 17.2 18.2 16.3 17.5 2014 17.3 18.1 16.9 17.5 2015 17.5 18.2 16.8 18.3 2016 17.5 18.9 16.4 17.4 2017 17.6 18.4 16.7 17.2 Chapter 8: Environment and Natural Resources Figure 8.6: Mean Annual and Seasonal Minimum Temperatures Recent 8.29. The Government recognizes the need to stop pollution from all sources and has instituted Developments a wide range of policy and regulatory measures to eradicate vice. The Kenya gazette notice no 2,356 of 2017 which aimed at reducing plastic pollution was enforced from 28th August 2017. The law banned the use, importation of and manufacture of plastic carrier bags in the country. The ban will go a long way in addressing the challenges in waste management and reduce the effects of non-biodegradable waste to the environment. 8.30. The third session of the UN Environment Assembly (UNEA 3), was held in Nairobi, Kenya from 4th to 6th December 2017 under the overarching theme of pollution. It positioned the country in the global leadership of sustainable management of the environment following the ban on plastic carrier bags. 8.31. The United Nations Climate Change Conference (UNCCC) was held in Bonn, Germany, from 6th to 18th November, 2017 and recognized climate change as one of the greatest challenges of the present day requiring actions to sustain temperature increases to below two degrees centigrade. Parties reached a historic decision on agriculture and established the Koronivia Joint Work on Agriculture to develop and implement new strategies for mitigation and adaptation the agriculture sector. 149 Economic Survey 2018 Chapter 09 Energy Sector Overview T he energy sector was faced with increased international crude oil prices in 2017, with the prices peaking during the last quarter of the year. The increase was as a result of supply cuts by top producers under the Organization of Petroleum Exporting Countries (OPEC), the subsequent decline in commercial crude oil inventories and increased demand, mainly from China. The average Murban crude oil prices rose to US Dollars 54.91 per barrel in 2017 up from US Dollars 44.18 per barrel in 2016. 9.2. The total volume of petroleum products imported into the country increased from 5,990.0 thousand tonnes in 2016 to 6,347.7 thousand tonnes in 2017 while domestic petroleum exports declined by 2.1 per cent to 32.4 thousand tonnes in 2017. During the review period, total import bill of petroleum products increased by 34.3 per cent to KSh 265.3 billion while the total value of petroleum products exported, including re-exports, declined by 16.4 per cent to KSh 36.1 billion in 2017. 9.3. The total installed and effective electricity generation capacity, were 2,339.9 MW and 2,264.4 MW, respectively, in 2017. Total electricity generation expanded by 3.0 per cent to 10,359.9 GWh in 2017. Hydro generated power registered a significant drop of 29.9 per cent to 2,776.8 GWh while thermal and geo thermal generated power expanded by 72.3 and 6.1 per cent, respectively, in 2017. Domestic demand for electricity increased from 8,053.2 GWh in 2016 to 8,410.1 GWh in 2017 with sales to domestic and small commercial consumers increasing from 3,315.7 GWh to 3,528.3 GWh over the same period. Petroleum 9.4. Details of quantities and values of imports and exports of petroleum products for the period 2013 to 2017 are presented in Table 9.1. The quantity of petroleum products imported into the country increased by 6.0 per cent to 6,347.7 thousand tonnes in 2017. The volume of total exports decreased from 1,097.3 thousand tonnes in 2016 to 842.4 thousand tonnes in 2017 mainly on account of re-exports which declined by 23.9 per cent to 810.0 thousand tonnes. The share of re-exports to total exports by volume, declined marginally from 97.0 per cent in 2016 to 96.2 per cent in 2017. 9.5. Total import bill of petroleum products expanded from KSh 197.6 billion in 2016 to KSh 265.3 billion in 2017. This may be attributed to rise in demand and prices of international crude oil during the review period. The value of domestic exports of petroleum products increased by 6.4 per cent to KSh 5,013.6 million in 2017. However, value of total exports declined by 16.4 per cent to KSh 36.1 billion in 2017 mainly attributed to a decline in the value of re-exports from KSh 38.5 billion in 2016 to KSh 31.1 billion in 2017. As a result, net balance increased from KSh 154.4 billion to KSh 229.1 billion in the review period. 150 151 4.8 26.4 0.1 31.2 934.5 0.2 0.0 934.7 965.9 46.4 13.4 0.1 59.9 709.7 6.2 0.0 715.9 775.8 1,062.6 1.6 0.0 1,064.2 1,097.3 12.5 20.5 0.1 33.1 809.7 0.3 0.0 810.0 842.4 6.4 25.9 0.1 32.4 ... 6,334.0 11.2 2.5 6,347.7 ... 5,470.1 12.0 2.8 5,484.9 ... 5,377.3 7.6 2.4 5,387.3 ... 5,978.3 9.1 2.6 5,990.0 2017* 10,566.8 435.3 12.0 11,014.2 14,507.2 303,395.0 1,386.8 2,074.8 31.3 3,493.0 41,037.4 274,967.0 1,422.9 474.9 317,902.2 2013 47,134.6 570.8 9.8 47,715.2 53,420.6 282,256.1 2,735.4 2,955.3 14.7 5,705.4 ... 333,784.5 1,423.8 468.5 335,676.7 53,843.4 33.8 3.1 53,880.3 60,261.9 166,097.5 321.1 6,039.1 21.5 6,381.6 ... 223,173.7 2,468.0 717.7 226,359.4 Value (KSh Million) 2014 2015 Petroleum fuels refer to liquified petroleum gas, motor spirit premium, aviation spirit, jet fuel, illuminating kerosene, light and heavy diesel oils, and fuel oils ... Insignificant 1 Year 2013 IMPORTS Crude Petroleum …….. 567.4 Petroleum Fuels ……………. 4,173.5 Lubricating Oils ……….. 7.7 Lubricating Greases ……… 2.3 TOTAL 4,750.9 DOMESTIC EXPORTS Petroleum Fuels ……….. 19.2 Lubricating Oils ……… 10.5 Lubricating Greases ……… 0.2 TOTAL……………….. 29.8 RE-EXPORTS Petroleum Fuels ……. 156.4 Lubricating Oils ……… 4.7 Lubricating Greases …….. 0.1 TOTAL……………….. 161.2 TOTAL EXPORTS…… 191.1 NET BALANCE………. *Provisional Quantity ('000 Tonnes) 2014 2015 2016 Table 9.1: Quantity and Value of Imports, Exports and Re-exports of Petroleum Products1, 2013-2017 38,163.2 302.2 8.1 38,473.5 43,185.1 154,405.5 545.5 4,134.9 31.2 4,711.6 ... 195,279.2 1,741.4 570.0 197,590.7 2016 31,079.4 43.5 5.2 31,128.1 36,141.7 229,111.9 368.6 4,618.4 26.5 5,013.6 ... 262,770.0 1,999.0 484.6 265,253.6 2017* Chapter 9: Energy Sector Economic Survey 2018 9.6. Table 9.2 shows a breakdown of supply and demand for petroleum products for the period 2013 to 2017. Total domestic demand for petroleum products increased by 2.5 per cent to 5,170.6 thousand tonnes in 2017. During the review period demand of fuel oil, liquefied petroleum gas and illuminating kerosene went up by 49.6, 24.8 and 20.5 per cent, respectively, while domestic demand for light diesel oil and aviation spirit decreased by 10.0 per cent and 20.8 per cent, respectively, in 2017. Light diesel oil and motor gasoline (premium) continued to be the major contributors to the total domestic demand, jointly accounting for 64.9 per cent. Table 9.2: Petroleum Fuels Supply and Demand, 2013-2017 2013 2014 2015 2016 DEM AND 92.9 149.7 148.6 151.7 Liquefied petroleum gas …………...……………………. 774.5 903.8 1,107.0 1,227.2 Motor gasoline (premium) ………………………………. Aviation spirit …………………..…………………………………... 2.2 2.3 18.7 4.8 J et/turbo fuel ………………………..…………………………………. 551.3 529.3 635.3 619.2 Illuminating kerosene ……………………………………………. 296.1 300.3 390.1 371.7 Light diesel oil ……………………..………………………………. 1,601.2 1,721.4 2,080.9 2,318.3 Heavy diesel oil …………………..……………………………….. 18.7 3.0 0.1 0.5 Fuel oil ………………………………………...………………………………. 371.0 328.1 357.8 350.9 TOTAL……………………………………………………………… 3,707.9 3,937.9 4,738.5 5,044.3 Refinery usage ………………………………………………………………...…. 31.3 0.0 0.0 0.0 TOTAL DOM ESTIC DEM AND…………………… 3,739.2 3,937.9 4,738.5 5,044.3 Exports of petroleum fuels ……………………………………………….… 19.2 46.4 4.8 12.5 TOTAL DEM AND………………………………………………… 3,758.4 3,984.4 4,743.2 5,056.8 SUPPLY Imports less re-exports: Crude oil …………………………………..……………………………….. 567.4 0.0 0.0 0.0 Petroleum fuels …………………..………………………………… 4,017.1 4,667.6 4,535.7 4,915.7 TOTAL ………………………………………………………………………… 4,584.5 4,667.6 4,535.7 4,915.7 1 Adjustment ……………………………………………………………………..…. 826.0 683.3 (207.6) (141.1) TOTAL SUPPLY…………………………………………………… 3,758.4 3,984.4 4,743.2 5,056.8 ‘000 Tonnes 2017* 189.3 1,267.4 3.8 649.7 448.0 2,086.2 1.2 525.0 5,170.6 0.0 5,170.6 6.4 5,177.0 0.0 5,524.2 5,524.2 347.2 5,177.0 Source: Minis try of Energ y /Energ y Reg ulatory Commis s ion * Prov is ional. 1 A djus tment for inv entory chang es and los s es in production. 9.7. Net domestic sales of petroleum fuels by consumer category for the period 2013 to 2017 are shown in Table 9.3. Total net domestic sales of petroleum fuels increased by 2.5 per cent in 2017 to 5,170.6 thousand tonnes. Consumption of fuel used for power generation increased significantly to 44.7 thousand tonnes in 2017 from 15.3 thousand tonnes in 2016. This could be attributed to increased thermal generation of power during the year 2017. Similarly, agriculture; marine; tourism; industrial, commercial and other; and aviation industries also registered notable increases in the consumption of petroleum fuels in the review period. 9.8. In contrast, consumption by rail transport industry declined from 43.0 thousand tonnes in 2016 to 11.8 thousand tonnes in 2017 while consumption by the retail pump and road transport industry declined by 4.7 per cent to 3,541.2 thousand tonnes during the review period. Retail pump outlets and road transport; and industrial commercial and other categories jointly accounted for 84.7 per cent of total sales in during the year under review. 152 Chapter 9: Energy Sector Table 9.3: Net Domestic Sale of Petroleum Fuels by Consumer Categories, 2013-2017 User 2013 Agriculture .. .. .. .. .. .. .. .. ……... .. 28.5 Retail pump outlets and road transport.. … …2,573.7 .. .. Rail transport .. .. .. .. .. .. .. …….. .. .. .. .. 14.2 1 .. .. .. .. …... .. .. .. .. .. .. 5.5 Tourism .. .. Marine (excl. Naval Forces) .. .... .. .. .. .. 25.4 Aviation (excl. Government) .. ... .. .. .. .. 552.4 Power Generation .. .. .. .. .. .. .. ……. .. 64.1 Industrial, Commercial and Other .. .. .. .. 462.3 Government .. .. .. .. .. .. .. .. .. .. ….. .. .. 7.2 Balancing Item .. .. .. .. .. .. .. ..... .. .. .. .. -25.4 TOTAL .. .. .. .. .. .. .. ………... .. 3,707.9 2014 36.4 2,791.0 15.6 2015 29.7 3,414.7 36.9 2016 35.2 3,717.6 43.0 ‘000 Tonnes 2017* 57.4 3,541.2 11.8 5.1 18.6 530.4 98.9 451.2 9.3 -18.6 3,937.9 4.8 2.9 637.7 32.3 572.1 7.7 0.3 4,738.5 5.1 2.3 598.4 15.3 615.9 11.3 0.1 5,044.3 9.1 6.2 644.5 44.7 837.2 18.5 0.0 5,170.6 Source: Minis try of Energ y /Energ y Reg ulatory Commis s ion * Prov is ional 1 Compris es s ales to tour operators 9.9. Figure 9.1 displays share of sale of petroleum fuels by major consumer categories. Retail pump outlets and road transport; industrial, commercial and other; and aviation categories jointly consumed 97.1 per cent of total sales in 2017. All other sectors consumed 2.9 per cent of total sales in the year under review. Figure 9.1: Sale of Petroleum Fuels by Major Consumer Categories, 2017 Aviation (excl. Governmen t) 12.5% Others 2.9% Industrial, Commercial and Other 16.2% Retail pump outlets and road transport 68.5% 9.10. Table 9.4 presents the average wholesale prices of petroleum fuels in Mombasa for the month of December in the period 2013 to 2017. The prices for all the fuels were higher in December 2017 than those recorded in December 2016 and most of them were almost at same level with the prices experienced in December 2014. Increase in the wholesale price of liquefied petroleum gas was the most notable from KSh 80,078 per tonne in December 2016 to KSh 110,000 per tonne in December 2017, representing a 37.4 per cent rise. Wholesale price for illuminating kerosene increased by 13.1 per cent to KSh 87,048 per tonne in the same period. Prices of motor gasoline (premium) and light diesel oil increased by 9.7 per cent to KSh 138,421 and 8.7 per cent to KSh 105,221, respectively, in 2017. 153 Economic Survey 2018 Table 9.4: Whole Sale Prices1 of Petroleum Fuels in Mombasa, 2013-2017 PRODUCT Dec. 2013 Liquefied Petroleum Gas .. .. .. ..123,803 .. .. Motor Gasoline (Premium).. .. ..143,535 .. .. .. Illuminating Kerosene.. .. ….. .. ..101,153 .. .. Light Diesel Oil .. .. .. .. .. .. .. ……... 120,303 Industrial Diesel Oil .. .. .. .. .. .. ..74,238 .. . Fuel Oil .. .. .. .. .. .. .. .. …….. .. 64,950 .. .. .. Source: National Oil Corporation Dec. 2014 110,721 133,711 86,449 104,097 73,874 58,678 Dec. 2015 95,920 123,644 69,282 94,149 .. .. Dec. 2016 80,078 126,129 76,933 96,759 .. .. KSh per Tonne Dec. 2017 110,000 138,421 87,048 105,221 .. .. 1 Including duties and VA T. .. Data not av ailable 9.11. Details of Murban crude oil prices at the international market for the last five years are shown in Table 9.5. The price of crude oil increased significantly from an average of US Dollars 44.18 per barrel in 2016 to US Dollars 54.91 per barrel in 2017. This was occasioned by a decision by OPEC to cut crude oil supply and a robust demand from China. The highest prices of crude oil averaging at US Dollars 63.18 per barrel were recorded in the fourth quarter of 2017. Table 9.5: Murban ADNOC Prices1, 2013-2017 M onth/Year 2013 January………………. 112.05 February…………….. 115.40 March……………..… 109.95 April…………………. 105.65 May…………...…….. 103.65 June…………...……. 103.00 July…………….……. 106.85 August…………...….. 111.70 September……..……. 114.50 October……..……..… 112.45 November………..….. 112.20 December……….…….113.85 Annual average 110.10 2015 46.40 56.55 56.10 60.55 65.75 63.70 57.70 48.85 46.60 47.30 43.55 37.25 52.53 2014 109.75 109.95 108.30 107.95 109.15 111.65 109.50 104.25 97.95 87.35 77.00 60.65 99.45 2016 29.95 33.00 38.20 42.00 47.35 49.05 44.60 48.85 45.50 51.35 46.15 54.15 44.18 US$/BBL 2017* 55.35 56.10 52.60 53.40 51.45 47.30 48.60 48.85 55.70 63.83 63.65 62.06 54.91 Source : Minis try of Petroleum and Mining * Prov is ional 1 A bu Dhabi Free On Board (FOB) Prices A DNOC : A bu Dhabi National Oil Company US$/ BBL: US Dollars per Barrel 9.12. Figure 9.2 illustrates the trends in the monthly international prices for crude oil and domestic fuel prices in 2017. International crude oil registered high prices in the fourth quarter of 2017, with the highest price of US dollars 63.83 per barrel being recorded in October while the lowest price of US dollars 47.30 per barrel was recorded in June. Similar trends were registered for domestic prices of motor gasoline (premium), gas oil and kerosene which declined moderately in July before attaining the highest prices in December 2017. 154 Chapter 9: Energy Sector Figure 9.2: International Crude Oil and Domestic Fuel Prices, 2017 110 70.00 100 90 50.00 80 Domestic Fuel Price KSh/Litre (US$/BBL) Murban ADNOC Prices 60.00 70 40.00 60 50 30.00 Jan Feb Murban Adnoc Pr ic es Mar Apr May Jun Jul Motor Spir it (Pr emium) Aug Sep Oct Light Diesel Oil Nov Dec Illuminating Ker osene 9.13. Table 9.6 depicts average retail prices of selected petroleum products in Kenya from 2013 to 2017. During this period, the average prices of motor gasoline (premium), light diesel oil and illuminating kerosene recorded increases of 11.1, 14.4 and 22.6 per cent, respectively. On the other hand, the average price of Liquefied Petroleum Gas (LPG) for a 13 Kg cylinder recorded a slight decline of 3.7 per cent from an annual average of KSh 2,154.81 in 2016 to an annual average of KSh 2,075.29 in 2017. This could be attributed to the ongoing government efforts to increase the use of LPG in order to promote use of clean energy. 155 Economic Survey 2018 Table 9.6: Average Retail Prices of Selected Petroleum Fuels, 2013- 2017 112.35 118.41 108.93 114.69 110.11 104.83 108.21 100.01 106.47 105.44 84.71 89.39 82.38 86.47 83.99 KSh per 13 Kg cylinder Liqufied Petroleum Gas (LPG) 2,630.73 2,662.61 2,573.75 2,836.67 2,876.00 Annual Average1 January March June September December 113.89 111.41 114.43 115.43 112.46 102.86 105.38 105.65 105.79 105.73 103.28 91.79 83.92 85.98 84.82 84.04 82.55 72.30 2,769.24 2,995.22 3,094.16 3,074.57 3,111.74 3,018.45 Annual Average1 January March June September December 112.75 93.75 90.34 98.14 103.49 90.94 102.99 84.3 77.16 84.26 80.94 79.47 82.46 66.53 56.71 62.73 53.52 54.23 3,062.40 2,954.36 2,629.56 2,387.04 2,393.85 2,369.46 Annual Average1 January March June September December 94.63 80.99 57.67 89.52 86.46 87.07 92.28 95.08 77.66 66.68 74.69 83.42 88.18 47.11 43.13 59.1 60.08 64.52 2,465.44 2,343.86 2,277.48 2,231.38 2,029.12 1,983.06 Annual Average1 January February March April May June July August September October November December 90.22 77.83 54.68 2,154.81 96.88 101.14 101.91 99.01 100.48 99.68 98.00 96.98 98.62 101.09 103.58 105.04 85.2 90.22 91.39 89.7 89.02 87.95 85.45 86.84 87.4 88.43 93.37 93.41 64.41 68.15 68.93 65.44 66.26 66.04 63.55 64.41 65.33 67.12 72.2 72.39 1,989.50 1,976.38 1,998.70 2,063.95 2,104.29 2,112.19 2,073.62 2,080.10 2,094.22 2,140.47 2,128.59 2,141.46 Annual Average1 100.20 89.03 67.02 2,075.29 KSh per Litre 2013 2014 2015 2016 2017 1 Month January March June September December Motor Gasoline Light Diesel Oil (Premium) Twelve months average 156 Illuminating Kerosene Chapter 9: Energy Sector Electricity 9.14. Details of installed and effective capacity of electricity by source are presented in Table 9.7a. Total installed capacity slightly increased to 2,339.9 MW in 2017 from 2,327.0 MW in 2016. Hydro capacity increased by 7.5 MW to 826.2 MW in 2017 as a result of new hydroelectric power plants in Genro Teremi Falls, Gura and Chania. Similarly, thermal capacity increased by 5.3 MW to 806.9 MW while solar capacity increased by 0.1 MW to 0.7 MW in 2017. Installed capacity for geo thermal, wind and co-generation remained at the same in 2017 as in 2016. 9.15. Total effective capacity increased by 10.3 MW to 2,264.4 MW in 2017. This was attributed to slight increases in hydro and thermal capacity in the review period. Similarly, there was an increase of 0.4 MW in solar capacity during the year under review. On the other hand, effective wind capacity declined by 1.9 per cent to 25.5 MW in 2017. Effective capacity of geo thermal and co-generation remained the same in 2017 as in 2016. Table 9.7a: Installed and Effective Capacity of Electricity, 2013-2017 Year 2013 2014 2015 2016 2017* Hydro 812.3 818.3 820.4 818.7 826.2 INSTALLED CAPACITY MW EFFECTIVE CAPACITY MW Therm Geo CoTherm Geo CoTotal Hydro al therm Total al therm genegeneWind Wind Oil al ration Solar Oil al ration Solar 714.4 241.8 5.9 26.0 .. 1,800.4 766.6 693.2 236.5 5.3 21.5 .. 1,723.1 .. 2,195.3 797.5 712.6 558.0 5.3 21.5 .. 2,094.9 751.3 573.4 26.3 26.0 833.6 627.0 26.1 26.0 0.6 2,333.7 799.5 799.2 619.0 26.1 21.5 0.2 2,263.3 0.2 2,254.1 801.6 652.0 26.1 28.0 0.6 2,327.0 797.5 762.9 644.0 26.0 23.5 806.9 652.0 26.1 28.0 0.7 2,339.9 805.0 765.8 644.0 25.5 23.5 0.6 2,264.4 Source: Keny a Power & Lighting Company Ltd and Keny a Electricity Generation Company Ltd * Prov is ional .. Data not av ailable 1 Megawatt = 1,000 kilowatts = 1 million watts Notes: Ins talled capacity refers to the maximum theoretical electric output a power s tation could produce when operating at 100 per cent Effectiv e capacity is the capacity a power s tation is expected to achiev e giv en current operating cons traints 9.16. Table 9.7b and Figure 9.3 present local generation and imports of electricity for the period 2013 to 2017. Total electricity generation increased by 3.0 per cent to 10,359.9 GWh in 2017. The hydro generation registered a significant drop of 29.9 per cent to 2,776.8 GWh mainly due to prolonged drought in 2017. In order to meet electricity demand, thermal generation increased significantly from 1,470.9 GWh in 2016 to 2,534.1 GWh in 2017. Electricity generation by wind and geothermal also increased by 8.7 and 6.1 per cent, respectively, in the review period. There was no emergency power production in 2017 following the decommissioning of Aggreko Muhoroni power plant in June 2016. 157 Economic Survey 2018 Table 9.7b: Generation and Imports of Electricity, 2013-2017 GWh G ENERATION Thermal oil Hydro 2013 2014 2015 2016 2017* 4,386.0 3,410.6 3,463.3 3,959.9 2,776.8 KenGen IPP 598.3 1,386.2 844.2 1,673.0 393.4 954.2 539.4 905.3 998.2 1,535.8 EPP 177.2 68.0 64.5 26.2 0.0 Total 2,161.7 2,585.2 1,412.1 1,470.9 2,534.1 Geo thermal 1,780.9 2,917.4 4,520.7 4,484.2 4,756.3 Cogeneration 55.6 50.0 0.0 0.0 1.9 Wind 14.7 17.0 59.7 56.4 61.3 Imports Total 49.0 8,447.9 158.4 9,138.6 58.8 9,514.6 86.3 10,057.7 229.6 10,359.9 Source: Keny a Power & Lig hting Company Ltd and Keny a Electricity Generation Company Ltd * Prov is ional Notes : IPP: Independent Power Producers EPP: Emerg ency Power Producers 1 Gig awatt hour = 1,000,000 kilowatt hours Figure 9.3: Proportion of Electricity Generation by Source, 2017 Others 2.8% Hydro 26.8% Geothermal 45.9% Thermal 24.5% 9.17. The demand and supply of electricity for the period 2013 to 2017 is shown in Table 9.8. Total domestic demand for electricity recorded a 4.4 per cent increase in 2017 to 8,410.1 GWh. Sales to domestic and small commercial consumers increased by 6.4 per cent to 3,528.3 GWh in 2017, while that to large and medium (commercial and industrial) consumers increased by 52.7 GWh to 4,199.0 GWh in 2017. There was a 29.8 per cent increase in street lighting to 60.1 GWh in 2017 on account of increased activities to provide street lighting in towns by County Governments. Sales as a result of rural electrification continued to increase for the fourth year in a row, rising by 13.2 per cent to 580.6 GWh in 2017. Domestic and small commercial; large and medium (commercial and industrial) consumer categories jointly accounted for 91.9 per cent of total domestic demand during the year under review. 9.18. Total electricity imports increased significantly from 86.3 GWh in 2016 to 229.6 GWh in 2017 while exports declined from 39.1 GWh to 12.3 GWh in the review period. Local generation increased by 1.6 per cent to 10,130.3 GWh in 2017. Transmission and distribution losses amounted to 1,937.5 GWh in 2017, accounting for 18.7 per cent of the total supply. 158 Chapter 9: Energy Sector Table 9.8: Electricity Supply and Demand, 2013-2017 2014 3,273.8 3,891.5 33.7 22.5 478.7 7,768.6 30.8 2015 3,254.9 4,017.8 25.7 31.4 496.6 7,826.4 46.7 2016 3,315.7 4,146.3 31.8 46.3 513.1 8,053.2 39.1 GWh 2017* 3,528.3 4,199.0 42.2 60.1 580.6 8,410.1 12.3 1,476.1 1,339.3 1,641.5 1,965.4 1,937.5 TOTAL DEMAND = TOTAL SUPPLY ……………… 8,447.9 Less imports from Uganda and Tanzania ……. 49.0 Local generation ……………………………8,398.9 9,138.7 158.4 8,980.3 9,514.6 58.8 9,455.8 10,057.7 86.3 9,971.4 10,359.9 229.6 10,130.3 2013 Domestic and Small Commercial .. .. .. .. .. .. ………..2,866.1 Large & Medium (Commercial and Industrial).. ….. 3,585.3 Off-peak .. .. .. .. .. .. ……………………………….. 32.7 Street Lighting .. .. .. .. .. .. ……………………… 17.2 Rural Electrification .. .. .. .. .. ………………….. .. .. 426.8 TOTAL DOMESTIC DEMAND………………..6 ,928.1 Exports to Uganda & Tanzania……………….. 43.7 Transmission and Distribution losses1 2 Source: Kenya Power and Lighting Company Ltd *Provisional 1 Voltage lossesaverage in power transmission The electricitylines tariffs for 2012/2013 to 2016/2017 are presented in Table 9.9. Average 9.19. 2 Total supply equals Total generation The average tariff yield increased by 6.6 per cent from KSh 14.68 per unit sold in 2015/2016 Electricity Tariffs to KSh15.65 per unit sold in 2016/2017. Table 9.9: Average Electricity Tariffs1, 2013-2017 KSh Average Tariff Yield of Units Sold 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017* 14.38 15.52 14.97 14.68 15.65 Prov is ional 1 A v erag e electricity tariff is calculated by div iding total rev enue receiv ed by total units s old 9.20. Details of demand and supply of commercial energy by primary source is presented in Table 9.10. Total energy consumption increased from 6,270.0 thousand tonnes of oil equivalent in 2016 to 6,306.2 thousand tonnes of oil equivalent in 2017 mainly due to a 12.4 per cent increase in net imports of petroleum products. Total production of hydro, geo thermal, wind and co-generation energy dropped by 8.9 per cent to 672.9 thousand tonnes of oil equivalent in 2017 mainly as a result of a 29.9 per cent reduction in the local production of hydro power during the review period. Similarly, Consumption of coal and coke declined by 5.1 per cent to 462.7 thousand tonnes of oil equivalent in 2017. Consequently, the share of local production to total energy consumption dropped to 10.4 per cent in 2017 compared to a share of 11.7 per cent recorded in 2016. Annual per capita energy consumption stood at 135.3 Kg of oil equivalent in the review period. 159 Economic Survey 2018 Table 9.10: Production, Trade and Consumption of Energy1 by Primary Sources, 2013-2017 '000 tonnes of Oil Equivalent 2015 2016 2017 494.6 487.5 462.7 4,738.5 5,044.2 5,170.6 0.0 0.0 0.0 4,535.7 4,915.7 5,524.2 4.8 12.5 6.4 -207.6 -141.0 347.2 2013 2014 COAL AND COKE ................................................ 298.4 466.0 LIQUID FUELS ....................................................... 3,707.9 3,937.9 Imports of crude oil ..................................... 567.4 0.0 Net imports of petroleum ................................ 4,017.1 4,667.6 Exports of petroleum fuels.......................................... 19.2 46.4 Stock changes and balancing item ....................... 258.6 683.3 HYDRO, GEOTHERMAL, WIND AND 540.4 563.6 696.7 738.4 672.9 CO-GENERATION ENERGY ………………. Total Local Energy Production1 ..................... 536.2 550.0 691.6 731.0 653.2 Local production of hydro power ...................... 377.1 293.3 297.8 340.5 238.8 Local production of geothermal power .............. 153.1 250.9 388.7 385.6 409.0 Local production of Wind ................................ 1.3 1.5 5.1 4.8 5.3 Local production of Co-generation .................... 4.8 4.3 0.0 0.0 0.2 Electricity Imports ............................................. 4.2 13.6 5.1 7.4 19.7 TOTAL ENERGY CONSUMPTION1 ............... 4,546.7 4,967.4 5,929.9 6,270.0 6,306.2 LOCAL PRODUCTION AS PERCENTAGE OF....... TOTAL ENERGY CONSUMPTION...................... 11.8 11.1 11.7 11.7 10.4 PER CAPITA CONSUMPTION IN TERMS.............. OF KILOGRAMME OF OIL..................................... EQUIVALENT ................................................ 106.6 112.5 130.9 134.8 135.3 * Provisional 1 Excludes wood fuel and charcoal Developments in the Rural Electrification Energy Sector 9.21. The number of customers connected under the rural electrification program expanded by 30.6 per cent to 1,269,510 in 2016/17 from 972,018 customers in 2015/16, mainly drawn from domestic consumers and small commercial categories. As a result, units of electricity sold increased by 2.2 per cent from 537 million units as at July 2016 to 549 million units in 2016/17. Consequently, revenue realized grew by 5.7 per cent from KSh 9,812 million in 2015/16 to KSh 10,376 million in 2016/17. Under the rural electrification program, a total of 1,319,490 customers were connected as at December 2017. Electricity Generation and Transmission 9.22. The country’s electricity generating capacity is currently being upgraded through various geothermal, wind and solar projects. It is expected to increase by 875.9 MW by 2023 from the current 2,339 MW. Among the projects expected to be commissioned in 2019 are the 50 MW Wellhead Modula plants, 158 MW Olkaria V and 70 MW Olkaria I Unit 6. 9.23. Three transmission line projects were completed in 2017 covering 629 kilometers. These are the Mombasa-Nairobi 400 kV line, Suswa-Isinya 400 kV and the Kisii-Awendo 132 kV line covering 482, 103 and 44 Km, respectively. Further, fourteen transmission line projects are currently ongoing and due for completion between 2018 and 2020 with ten of the projects expected to be completed in 2018. These are; Nairobi Ring Sub-Stations, Olkaria-Lessos in Kisumu, Loiyangalani in Suswa, Nanyuki-Isiolo, Lessos-Kabarnet line, Nanyuki-Nyahururu (Rumuruti) line, Olkaria-Narok line, Mwingi-Kitui-Wote-Sultan Hamud line, TurkwelOrtum line in Kitale and Isinya-Namanga line. Sondu-Homa Bay-Ndhiwa-Awendo project, 160 Chapter 9: Energy Sector Eastern Electricity Highway Project (Ethiopia-Kenya Interconnector) and Kenya-Tanzania Interconnector projects are to be completed by 2019 while Lessos-Tororo line (Kenya-Uganda Interconnector) is expected to be commissioned in 2020. Oil Exploration Status 9.24. Oil and gas exploration activities were concentrated in four blocks located in the Lokichar, Lotikipi and Kerio valley sub-basins of the Tertiary Rift Basin. New geological and geophysical data in open petroleum blocks were acquired with the sole purpose of enriching geo-scientific data to boost their attractiveness to new prospective investors in oil exploration. Similar studies were carried out in Lamu Basin along the coastal region of Kenya. The next block to be studied will be L14A, also situated onshore in Lamu Basin. Construction of Mombasa – Nairobi New Pipeline for Refined Products 9.25. A new 20-inch diameter pipeline is being constructed from Mombasa to Nairobi which will have installed capacity of up to 1,000 cubic metres per hour on commissioning. The pipeline is designed to achieve a flow rate of 1,800 cubic metres per hour through the installation of four additional pumping stations. The new pipeline is expected to reduce pipeline maintenance costs, ensure security of supply for the country and the region, enhance safety and environment and remove petroleum trucks from the highway. This project also involves construction of four petroleum products tanks with a total capacity of 133,000 cubic metres. This will provide sufficient capacity for receipt of higher volumes of products expected from the new Mombasa Nairobi pipeline, increase storage capacity for ground fuels in Nairobi from the current 100,580 cubic metres to 233,580 cubic metres, provide capacity to build stocks in Nairobi for hinterland demand from 7 days to 17 days; enhance operational flexibility and evacuation of products at Kipevu Oil Storage Facility (KOSF) thereby creating more ullage at KOSF and reduce demurrage charges. Mwananchi Gas Project 9.26. The Government intends to facilitate access of LPG to low income households. The project entails purchasing of 6 Kg cylinders with burners and ‘meko’ type grills. These cylinders will be purchased and distributed across the country with the objective of increasing LPG uptake. In addition, at least 40 mini LPG storage and filling plants (LPG skids) will be installed to be operated by women and youth. This project is expected to reduce average wood consumption as a source of energy in the country thereby boosting afforestation initiatives. 161 Economic Survey 2018 Chapter 10 Manufacturing Overview M anufacturing sector real value added rose marginally by 0.2 per cent in 2017 compared to a growth of 2.7 per cent in 2016. The volume of output of the sector contracted by 1.1 per cent attributed mainly to decline in food products, beverages and tobacco, leather and related products, rubber and plastics and non-metallic minerals sub-sectors. The sector was negatively affected by uncertainities relating to general elections, rise in inflation, high production costs and competition from imported goods. The ban on production and use of plastic carrier bags also had adverse effects on the volume of output of the sector. The food sub-sector declined by 10.8 per cent mainly due to low availability of raw materials for some key agro-based industries resulting from unfavourable weather conditions in the year. The total approved credit to the sector rose to KSh 311.8 billion in 2017 from KSh 275.8 billion in 2016. 10.2. The Producer Price Index (PPI) which measures change in prices of goods sold by producers at basic prices rose by 4.6 per cent in 2017 to 118.89 from 113.67 in 2016. The main contributors to the increase in the index were manufacture of food products, electricity and manufacture of basic metals which increased by 9.3, 5.0 and 5.3 per cent, respectively. The index for other non-metallic mineral products dropped by 1.2 per cent in 2017. 10.3. Key performance indicators under the Export Processing Zone (EPZ) program which include number of gazetted zones, operating enterprises, employment and cumulative investment recorded growths in 2017. The number of local employees engaged by EPZ enterprises increased to 54,622 persons in 2017 from 52,947 persons in 2016. The cumulative capital investment increased to KSh 92.3 billion in 2017. However, total sales decreased in the period under review due to reduced exports. Formal 10.4. Formal employment in the manufacturing sector rose at a slower rate of 0.8 per cent in employment 2017 compared to 1.8 per cent growth in the previous period. The sector’s formal employment in the Sector was 303.3 thousand persons in 2017 and accounted for 11.4 per cent of the total formal employment. Manufacturing 10.5. Table 10.1 shows manufacturing sector value of output, intermediate consumption, Output value added and compensation of employees. The value of output grew by 4.0 per cent to KSh 2,204.8 billion while intermediate consumption increased by 6.1 per cent to KSh 1,556.4 billion in 2017. This resulted to a 0.8 per cent decrease in the value added to KSh 648.4 billion in the same period. Compensation of employees rose by 8.1 per cent in the period under review. 162 Chapter 10: Manufacturing Table 10.1: Manufacturing Output, Compensation of Employees and Value Added, 2013-2017 YEA R Va lu e o f Ou tp u t In te rm e d ia te Co n s u m p tio n Cu rre n t Pric e s - KS h Millio n Va lu e Co m p e n s a tio n Adde d o f Em p lo y e e s 2013………………………………….. 1,737,699 1,231,087 506,612 127,186 2014……… 1,820,369 1,282,369 537,999 147,453 2015……… 1,977,169 1,388,274 588,896 163,392 2016……… 2,120,718 1,466,879 653,839 174,767 2017* ……… 2,204,805 1,556,408 648,397 188,893 * P rov isional. Quantum 10.6. Details of the quantum indices and the production of some selected commodities from Indices 2013 to 2017 are presented in Tables 10.2, 10.3 and 10.4. Production volumes for several sub-sectors in manufacturing contracted, leading to an overall decline of 1.1 per cent in 2017. The low performance was on account of low production of sugar, dairy products, leather and related products, other non-metallic mineral products, wood and products of wood, motor vehicle, trailers and semi-trailers and food products not elsewhere classified. However, cocoa, chocolate and sugar confectionery, machinery and equipment n.e.c, grain mill products, bakery products, wearing apparel, animal feed, basic metals, paper and paper products sub-sectors remained resilient during the review period and registered growths in the volumes of output. 163 Economic Survey 2018 Table 10.2: Quantum Indices of Manufacturing Production, 2013-2017 B a se : 2009=100 In du stry Division s a n d G rou ps De scription s 2013 2014 2015 2016 2017* 109.4 108.3 118.3 131.2 139.2 P rocessing and preserv ing of f ish………………………………. 85.0 Meat and Meat P roducts………………………………. 86.7 67.8 61.0 59.0 120.0 100.9 P repared and P reserv ed Fruits and Vegetables………………………………. 103.6 112.8 111.1 A nimal and Vegetable Fats and Oils………………………………. 111.4 128.2 133.6 133.8 136.8 Dairy P roducts………………………………………… 147.4 156.8 169.7 174.1 153.0 Grain Mill P roducts………………………………. 137.4 148.5 160.8 165.9 179.7 Bak ery P roducts…………………………………….. 141.7 152.3 164.6 162.4 175.5 Sugar……………………………….………………………………. 109.5 108.2 115.3 116.5 68.8 Cocoa, Chocolate and Sugar Conf ectionery ………………………………. 131.6 137.4 167.4 180.3 202.4 Food P roducts not elsewhere classif ied………………………………. 129.6 136.2 121.5 139.4 129.3 A nimal Feed……………………………….………………………………. 131.0 132.2 138.2 141.3 153.5 Fo o d Pro d u c ts ……………………………………………………………. 126.3 132.5 134.7 143.2 127.8 Bev erages P roducts 110.8 138.7 146.6 146.1 Tobacco P roducts……………………………….………………………………. 119.6 144.0 112.5 137.6 115.4 110.3 Be ve ra g e s a n d To b a c c o Pro d u c ts ………………………………. 113.7 116.5 138.5 141.2 139.9 Tex tiles……………………………….………………………………. 112.1 113.9 129.9 120.6 118.5 W earing A pparel……………………………….………………………………. 154.4 172.9 196.8 230.8 243.8 Leather and Related P roducts………………………………. 135.4 118.6 100.0 111.5 98.1 W ood and P roducts of W ood ………………………………. 113.9 132.4 138.5 119.2 103.5 P aper and P aper P roducts………………………………. 140.1 140.3 153.6 160.1 P rinting and P roduction of Recorded Media………………………………. 102.3 99.3 144.9 99.2 98.0 97.7 47.0 0.0 0.0 0.0 0.0 Chemical and Chemical P roducts……………………………….112.6 125.3 134.6 134.3 136.7 P harmaceutical P roducts………………………………. Ref ined P etroleum P roducts………………………………. 295.9 360.8 435.3 430.6 Rubber P roducts……………………………….………………………………. 100.2 93.1 250.0 78.4 59.3 0.0 P lastic P roducts……………………………….………………………………. 114.1 123.6 135.1 146.5 141.0 Ru b b e r a n d Pla s tic Pro d u c ts ………………………………. 111.8 118.6 125.9 132.4 118.1 Other Non-metallic Mineral P roducts………………………………. 135.1 156.1 169.9 179.7 165.5 Basic Metals……………………………….………………………………. 149.8 152.7 150.9 171.9 178.8 Fabricated Metal P roducts………………………………. 154.3 175.1 163.8 130.6 131.5 Electrical Equipment………………………………. 133.3 145.1 154.6 159.9 160.0 90.8 Machinery and Equipment nec………………………………. 77.1 42.6 31.0 34.5 Motor Vehicle, Trailers and Semi Trailers………………………………. 131.0 161.4 171.0 116.4 98.2 Manuf acture of f urniture………………………………. 183.8 211.0 258.5 258.5 247.3 Other Manuf acturing ………………………………. 139.5 174.6 210.1 204.1 204.4 Repair and Installation of Machinery and Equipment………………………………. 110.2 117.8 122.0 128.0 130.5 O ve ra l l …………………………………………………………………… 130.6 139.0 152.6 150.9 * P rov isional 164 146.0 Chapter 10: Manufacturing Table 10.3: Percentage change in Quantum Indices of Manufacturing Production, 2013-2017 Indu stry Divisions a nd G rou ps Descriptions Meat and Meat Products………………………………. 2013 2014 2015 2016 2017* 0.2 -1.0 9.3 10.9 6.1 Processing and preserv ing of f ish………………………………. -3.2 Prepared and Preserv ed Fruits and Vegetables………………………………. 16.7 A nimal and Vegetable Fats and Oils……………………………….1 2.7 2.0 -21.8 -10.0 -3.3 -15.9 2.7 8.8 -1.5 15.0 4.3 0.1 2.2 -12.1 Dairy Products………………………………………… 1.7 6.4 8.2 2.6 Grain Mill Products………………………………. 5.5 8.1 8.3 3.2 8.3 Bakery Products…………………………………….. 6.0 7.5 8.1 -1.3 8.1 21.5 Sugar……………………………….………………………………. -1.3 6.6 1.0 -41.0 Cocoa, Chocolate and Sugar Conf ectionery ………………………………. -1.4 4.4 21.8 7.7 12.3 Food Products not elsewhere classif ied………………………………. 10.7 5.1 -10.8 14.7 -7.2 A nimal Feed……………………………….………………………………. 6.8 1.0 4.5 2.2 8.7 -10.8 Fo o d Pro d u c ts ………………………………. 8.3 5.0 1.6 6.3 Bev erages……………………………….………………………………. -8.4 -1.5 25.2 5.7 -0.3 Tobacco Products……………………………….………………………………. -6.8 20.5 -4.4 -16.2 -4.4 Be ve ra g e s a nd To b a c c o Pro d u c ts ………………………………. -8.1 2.5 18.9 1.9 -0.9 Tex tiles……………………………….………………………………. -4.7 1.6 14.1 -7.1 -1.7 12.0 13.8 17.3 5.6 3.5 -12.4 -15.7 11.4 -12.0 W ood and Products of W ood ………………………………. 6.5 16.2 4.6 -13.9 -13.2 Paper and Paper Products………………………………. 7.2 -3.3 0.2 9.4 4.2 -2.9 -0.1 -1.3 -0.3 W earing A pparel……………………………….………………………………. 9.7 Leather and Related Products………………………………. Printing and Production of Recorded Media………………………………. 2.1 Ref ined Petroleum Products………………………………. -48.6 -100.0 0.0 0.0 0.0 Chemical and Chemical Products………………………………. -3.0 11.2 7.5 -0.2 1.8 Pharmaceutical Products………………………………. 32.0 18.3 21.9 20.6 -1.1 -7.1 -15.8 -24.4 0.0 Rubber Products……………………………….………………………………. 22.1 8.4 9.3 8.4 -3.8 Ru b b e r a nd Pla s tic Pro d u c ts ………………………………. 0.8 Plastic Products……………………………….………………………………. -2.1 6.1 6.1 5.1 -10.8 Other Non-metallic Mineral Products………………………………. 7.8 15.5 8.9 5.8 -7.9 Basic Metals……………………………….………………………………. 20.7 1.9 -1.2 13.9 4.0 17.2 13.4 -6.4 -20.2 0.6 Electrical Equipment………………………………. 6.8 8.8 6.5 3.5 0.0 Machinery and Equipment nec………………………………. Fabricated Metal Products………………………………. 1.2 -15.1 -44.7 -27.1 11.0 Motor Vehicle, Trailers and Semi Trailers………………………………. 5.9 23.1 6.0 -31.9 -15.6 Manuf acture of f urniture………………………………. 12.0 14.8 22.5 0.0 -4.4 3.5 25.1 20.4 -2.9 0.1 Repair and Installation of Machinery and Equipment………………………………. 3.2 6.9 3.6 4.9 2.0 Ove ra ll …………………………………………………………………… 6.9 5.0 4.6 -1.1 Other Manuf acturing………………………………. 6.4 * Prov isional 10.7. Overall, manufacture of food products declined by 10.8 per cent in 2017 on account of shortfalls in the domestic supply of some key raw materials such as sugarcane, tea, milk and rice paddy. Production of sugar declined significantly by 41.2 per cent from 639.7 thousand tonnes in 2016 to 376.1 thousand tonnes in 2017 mainly attributed to low cane deliveries by farmers. In addition, the dairy sub-sector production volumes contracted by 12.1 per cent in 2017. The quantity of processed milk dropped from 448.5 million litres in 2016 to 383.2 million litres in 2017. This was mainly due to reduced milk intake by the processors. Likewise, production of yoghurt and other fermented milk dropped by 3.5 per cent in the same period. Other food products not elsewhere classified reduced by 7.2 per cent in 2017. This decline was mainly due to a drop in the quantities of processed tea and semi processed coffee. Production of tea dropped by 7.0 per cent from 473.0 thousand tonnes in 2016 to 439.8 thousand tonnes in 2017. Semi-processed coffee dropped by 15.1 per cent to 33.7 thousand tonnes in 2017. The quantity of milled rice dropped by 20.0 per cent while prepared and preserved fruits and 165 Economic Survey 2018 vegetables dropped by 1.5 per cent over the same period. Fish processing declined by 3.3 per cent in the year under review. 10.8. Grain milling sub-sector recorded a growth of 8.3 per cent in 2017. The year under review saw the introduction of duty-free imports of maize by flour millers. This resulted to a 9.8 per cent increase in production of maize flour to 669.4 thousand tonnes in 2017. Production of wheat flour by formal establishments also rose by 9.2 per cent to 1,237.0 thousand tonnes in 2017 from 1,133.1 thousand tonnes in 2016. Manufacture of animal feeds, which are by-products of grain milling, went up by 8.7 per cent during the year under review. 10.9. The quantity of bakery products increased by 8.1 per cent in 2017. The growth was attributed to the 8.2 per cent and 7.4 per cent increase in the quantities of bread and biscuits produced, respectively in the year under review. Production of cocoa, chocolate and sugar confectionery increased by 12.3 per cent. 10.10. Meat and meat products sub-sector recorded a 6.1 per cent growth in 2017 mainly driven by a 10.2 per cent increase in the quantity of sausages processed. Manufacture of vegetable fats and oils went up by 2.2 per cent in 2017. Table 10.4: Production of Selected Commodities 2013-2017 Co m m o d ity Un it P rocessed Milk Million litres 350.4 419.1 437.5 448.5 383.2 000 Tonnes 884.2 988.7 1,103.8 1,133.1 1,237.0 562.5 571.2 570.7 609.7 669.4 W heat f lour 1 2013 2014 2015 2016 2017* Maize f lour 1 ,, Biscuits ,, 12.3 10.6 12.2 12.1 13.0 Cook ing oil ,, 162.8 186.1 208.2 208.3 215.0 Edible f ats and magarine ,, 235.6 265.2 255.6 256.1 258.8 Sugar ,, 600.2 592.7 635.7 639.7 376.1 Cof f ee - milled ,, 39.8 49.5 41.6 39.7 33.7 Tea ,, 432.4 445.1 399.1 473.0 439.8 Sof t drink s Million litres 407.4 462.1 551.4 505.1 557.8 Blank ets 000 Number 2,048.4 2,339.1 2,873.7 2,930.2 2,670.7 A ssembled v ehicles Number 7,026.0 9,514.0 10,181.0 6,541.0 4,877.0 Galv anized sheets 000 Tonnes 305.2 284.5 256.8 268.7 262.8 * P rov isional 1 Produc e d by f orma l Mille rs 10.11. The beverages and tobacco sub-sector declined by 0.9 per cent. Production of beverages declined marginally on account of a 5.2 per cent drop in the quantity of beer produced in 2017. In addition, tobacco products dropped by 4.4 per cent as a result of a 4.1 per cent decline in production of cigarettes in 2017. Production of carbonated soft drinks (soda) and spirits went up by 10.4 per cent and 8.9 per cent, respectively during the year under review. 10.12. The textile sub-sector recorded a decline of 1.7 per cent mainly attributed to a drop of 8.9 per cent and 2.2 per cent in the production of blankets; and twine, cordage and rope, respectively in 2017. However, production of woven fabrics and textile yarn; and threads increased by 11.1 per cent and 8.8 per cent, respectively. During the same period, production of wearing apparel increased by 5.6 per cent due to a growth of 10.4 per cent in the production of T-shirts. 166 Chapter 10: Manufacturing 10.13. Leather and related products recorded a decline of 12.0 per cent during the review period. This was attributed to reduced production of finished leather and shoes with uppers of leather, which decreased by 13.3 per cent and 8.2 per cent, respectively. 10.14. Manufacture of wood and products of wood dropped further by 13.2 per cent in 2017. The production of plywood and ceiling board decreased by 18.1 per cent and 4.5 per cent, respectively in 2017. The paper and paper product sub-sector registered a 4.2 per cent growth in 2017. This growth was mainly driven by an increase of 10.7 per cent and 5.5 per cent in the production of toilet paper and exercise books, respectively. 10.15. The chemical and chemical products sub-sector grew marginally in 2017. Production of paints went up by 2.1 per cent while that of soaps, detergent and shoe polish increased by 6.2, 4.8 and 1.9 per cent, respectively in the period under review. However, manufacture of vanishes dropped by 6.5 per cent. Production of industrial gases dropped by 18.8 per cent in the review period. 10.16. Production of pharmaceutical products decreased by 1.1 per cent in 2017. This was on account of a 7.7 per cent drop in production of capsules. On the contrary, production of tablets and syrup rose by 6.9 per cent and 1.6 per cent, respectively over the same period. 10.17. Output volumes of plastic products declined by 3.8 per cent in 2017 mainly due to a decrease of 21.8 per cent in the production of plastic bags attributed to a ban on production of plastic carrier bags in August 2017. Production of plastic pipes decreased by 2.8 per cent in 2017. However, production of plastic tanks increased by 9.4 per cent in the period under review. 10.18. The production of basic metals increased by 4.0 per cent in 2017 attributable to an increase of 12.0 per cent in the volumes of iron bars and rods produced. However, there was a 2.2 per cent decline in the output volumes of corrugated iron sheets to 262.8 thousand tonnes. In the same period, fabricated metal products, which include aluminum circles/sufurias, metal structures and nails increased by 0.6 per cent. Production of metal structures increased by 4.5 per cent while that of nails increased by 2.4 per cent during the same period. The quantity of sufurias produced also declined by 9.1 per cent in 2017. 10.20. Production of electrical equipment in 2017 remained largely unchanged compared to the volumes recorded in 2016. Manufacture of primary batteries registered a 25.8 per cent growth in 2017. However, there was a 20.4 per cent decline in manufacture of cables over the same period. 10.21. Motor vehicles, trailer and semi-trailers production registered a drop of 16.4 per cent in 2017. This was mainly attributed to a decline in the number of assembled vehicles which dropped by 25.4 per cent and a 4.9 per cent reduction in trailer and semi-trailer body making. 10.22. Manufacture of furniture registered a decline of 4.4 per cent in 2017. This was as a result of a drop in the production of mattresses, which went down by 6.3 per cent. Production of other non-metallic minerals registered a decline of 7.9 per cent in 2017 due to a drop in the production of both cement and glass bottles. 167 Economic Survey 2018 Cement Production and Utilization 10.23. Cement production decreased by 8.2 per cent from 6,715.4 thousand tonnes in 2016 to 6,162.6 thousand tonnes in 2017 as shown in Table 10.5. Similarly, cement consumption and stocks decreased from 6,310.1 thousand tonnes in 2016 to 5,788.9 thousand tonnes in 2017 owing to reduced demand in the construction sector. Total exports of cement contracted further by 7.6 per cent in 2017 after recording a drop of 38.3 per cent in 2016. Imports decreased marginally from 15.1 thousand tonnes in 2016 to 14.7 thousand tonnes in 2017 while exports of cement to Uganda and Tanzania dropped from 325.0 thousand tonnes in 2016 to 299.3 thousand tonnes in 2017. Table 10.5: Cement Production and Utilization, 2013-2017 ‘ 000 Ton n e s Ex ports to C on su m ption and S tock s Uga n da and Ta n z a n ia A l l O th e r C ou n trie s 5,059.1 2013………………………………………. 34.4 4,266.5 594.0 233.9 5,882.5 2014………………………..…… 36.4 5,196.7 547.7 175.2 Y ear * Produ ction Im ports 2015..… 6,352.9 37.6 5,708.8 487.4 194.2 2016..… 6,715.4 15.1 6,310.1 325.0 95.4 2017* … 6,162.6 14.7 5,788.9 299.3 89.1 Prov isional. Producer 10.24. The overall inflation as measured by Producer Price Index (PPI) increased by 4.6 per Prices cent to 118.89 in 2017, as shown in Table 10.6. The main contributors to the increase were manufacture of food products, electricity and manufacture of basic metals, which increased by 9.3, 5.0 and 5.3 per cent, respectively in 2017. In the manufacture of food products, the highest increase was the producer prices of sugar and maize flour. During the review period, prices of electricity increased mainly due to a rise in fuel adjustment costs. 168 Chapter 10: Manufacturing Table 10.6: Producer Price Indices, 2013 to 2017 J u n e 2011 = 100 Divis io n 08 De s c rip tio n We ig h ts 2013 2014 2015 2016 2017 Pe rc e n ta g e Ch a n g e Mining and Quarry ing …………………………………………………………… 1.60 111.40 Manuf acture of f ood products……………………………………………. 34.24 109.84 123.09 131.67 138.10 132.58 -4.0 10 107.52 114.17 113.52 124.11 9.3 11 Manuf acture of bev erages………………………………………………….. 6.54 111.16 124.25 132.36 136.83 140.91 3.0 12 117.96 121.74 125.10 125.43 0.3 109.96 122.72 126.70 125.97 -0.6 14 Manuf acture of tobacco products……………………………………. 1.38 117.31 Manuf acture of tex tiles…………………………………………………………. 2.29 108.19 Manuf acture of wearing apparel………………………………………..2.91 99.88 100.27 101.64 102.08 102.35 0.3 15 Manuf acture of leather and related products ……………… 0.90 101.79 102.19 103.77 104.23 104.40 0.2 16 Manuf acture of wood and products of wood and cork ex cept f urniture …………………… 2.19 104.69 105.40 106.91 113.60 117.56 3.5 17 Manuf acture of paper and paper products …………………… 3.15 102.28 106.15 109.64 112.55 115.39 2.5 18 Printing and reproduction of recorded media……………….. 5.66 102.33 104.66 104.66 104.66 104.66 0.0 19 117.13 132.83 114.76 114.76 114.76 0.0 20 Manuf acture of lubricating petroleum oils ……………………….. 0.01 Manuf acture of chemicals and chemical products……….. 5.97 106.67 113.24 119.61 118.35 123.12 4.0 22 Manuf acture of rubber and plastics products……………… 5.47 Manuf acture of other non-metallic mineral products………………….. 4.32 105.07 107.66 110.01 110.27 109.80 -0.4 113.59 116.00 117.36 113.06 111.71 -1.2 Manuf acture of basic metals ……………………………………………… 6.51 Manuf acture of f abricated metal products ex cept machinery and equipment………………………………………………. 3.31 98.69 97.11 93.68 92.96 97.90 5.3 94.11 96.62 94.35 92.04 94.73 2.9 29 Manuf acture of motor v ehicles…………………………………………… 1.20 112.60 117.28 121.17 122.95 123.76 0.7 31 102.17 132.88 131.29 134.37 2.3 33 Manuf acture of Furniture………………………………………………………… 1.83 102.45 Repair and installation of machinery and equipment… 1.42 99.78 100.16 102.92 103.76 104.36 0.6 35 Electricity ……………………………………………………………………………………. 8.63 98.34 118.41 116.52 116.21 122.07 5.0 36 W ater…………………………………………………………………………………………….. 0.46 114.44 124.54 7.6 4.6 13 23 24 25 Tota l 100.00 Ov erall percentage change 105.96 109.17 131.68 113.44 143.63 113.67 154.56 118.89 0.50 3.03 3.91 0.20 4.59 10.25. The average producer prices of selected products are shown in Table 10.7. These prices exclude Value Added Tax (VAT) and transportation costs. During the year under review, the producer prices for a tonne of sugar increased by 35.4 per cent from KSh 71,354 in 2016 to KSh 96,606 in 2017. Similarly, the producer prices of a bale of maize flour increased by 7.3 per cent from KSh 1,117 in 2016 to KSh 1,199 in 2017. However, the price of a tonne of cement reduced by 1.2 per cent during the review period. Table 10.7 Average Producer Prices of Selected Products KS h /Un it Pro d u c t Un its o f Me a s u re 2013 2014 2015 2016 2017 V e g e ta ble oils …………. 20 Litre s 4,251.4 4,006.7 4,090.8 3,908.7 3,950.6 V e g e ta ble f a ts ………….20 Kg 4,173.3 4,105.1 4,019.8 3,850.4 3,795.2 625.5 623.8 678.9 672.3 696.9 81,547.0 67,626.2 65,493.7 71,353.9 96,606.3 Whe a t f lour…………….. 12 pa c ke ts e a c h 2Kg 1,462.2 1,510.7 1,421.0 1,303.6 1,317.4 Ma iz e Flour……………. 12 pa c ke ts e a c h 2Kg 1,165.0 1,235.6 1,110.3 1,116.9 1,199.1 Glos s pa ints …………….4 Litre s 1,816.1 1,909.5 2,243.3 2,135.7 2,263.4 927.5 969.9 1,008.4 1,008.4 1,009.5 Pla s tic w a te r ta nk……… 5000 litre c a pa c ity 31,920.0 31,650.2 33,604.9 32,531.9 32,779.1 Ce me nt………………… One Tonne 12,428.2 12,691.8 12,841.1 12,370.3 12,223.2 78.8 77.7 77.0 77.1 80.7 4,075.0 4,592.5 4,265.2 3,853.5 4,021.4 Pa s te uriz e d milk…………………….. Cra te 18 pa c ke ts e a c h 500 Ml S ug a r………………….. One Tonne Ba lla s t………………….. One Tonne S te e l ba rs ……………… 1 Kg Ordina ry na ils …………. 50 kg 169 Economic Survey 2018 Credit to 10.26. The number of projects approved in the manufacturing sector by financial institutions Manufacturing and commercial banks from 2013 to 2017 are shown in Table 10.8. The total loans advanced Sector rose from KSh 275.8 billion in 2016 to KSh 311.8 billion in 2017. The value of approved credit by industrial financial institutions increased from KSh 1.1 billion in 2016 to KSh 1.3 billion in 2017. The number of manufacturing projects approved decreased from 338 in 2016 to 293 in 2017, mainly due to a decline in the number of projects within the micro and small enterprises financed by Kenya Industrial Estate (KIE). 10.27. Industrial Development Bank (IDB) Limited approved projects worth KSh 200.1 million in 2017 compared to KSh 129.8 million in 2016. The funding was for expansion of three existing projects in the manufacture of concrete poles, steel mills and textiles activities. 10.28. Development Bank of Kenya (DBK) approved three projects for manufacturing of cement products, plastics pipes and printing in 2017, which were worth KSh 130.5 million. 10.29. Industrial and Commercial Development Corporation (ICDC) approved credit worth KSh 791 million for seven manufacturing projects in 2017. Four projects were startups while three were expansion to existing projects mainly in food and beverage sub-sectors. Table 10.8: Manufacturing Projects Approved by Financial Institutions and Other Commercial Banks, 2013 -2017 Nu m ber of Projects Institu tion Loans Advanced (KS h Million) 2013 2014 2015 2016 2017* 2013 2014 2015 2016 2017* IDB Capital limited……………………...…………….. 5 3 5 3 3 339.1 74.2 252.0 129.8 200.1 Dev elopment Bank of Keny a………………………..… 4 2 6 6 3 230.0 66.6 341.0 292.3 130.5 Keny a Industrial Estates Limited ……………………… 257 543 233 325 280 104.5 194.3 120.8 165.3 181.0 2 1 7 4 7 431.6 234.0 421.2 495.6 791.0 268 549 251 338 293 1,105.2 569.1 1,135.0 1,083.0 1,302.6 Industrial and Commercial Dev elopment Corporation…. S u b - total…………………………………………….. A ll other commercial banks1…………………………………………… TO TAL .. .. .. .. .. 181,457.1 237,355.8 289,727.8 274,725.4 310,502.9 268 549 251 338 293 182,562.3 237,924.9 290,862.8 275,808.3 311,805.4 * Prov isional 1 Source: Central Bank of Keny a (ex cludes DBK). 10.30. The Kenya Industrial Estates plays a major role in promoting local entrepreneurship by financing and developing small scale and micro enterprises. The number of manufacturing projects approved decreased from 325 in 2016 to 280 in 2017 as shown in Table 10.9. However, the loans advanced for these projects rose by 9.5 per cent to KSh 181.0 million during the review period. Manufacturers of food products remained the main beneficiaries of this funding accounting for 29.5 per cent of the total loans advanced in 2017. 170 Chapter 10: Manufacturing Table 10.9: Industrial Projects Approved by Kenya Industrial Estates, 2013-2017 Nu m b e r o f Pro je c ts De s c riptio ns 2013 2014 2015 Advanc e d Lo ans (KS h '000) 2016 2017* 2013 2014 2015 2016 2017* 36,545 64,855 28,092 66,133 53,391 3 ……………………. Manufacture of bev erages ……………………. ……………………. ……………………. 3 8 2 1,747 6,791 230 690 - - 1,500 3,500 - - 83 Manufacture of food products ……………………. ……………………. ……………………. 193 75 107 Manufacture of animal feeds ………………….………….. - 2 2 Manufacture of food products nec ……………………….. - 2 12 93 - 1 - 3,327 4,370 70 42 1,360 1,900 12,813 19,958 19,200 46 Manufacture of wearing A pparel ……………………. ……………………. 139 ……………………. 1 1 1 18,319 29,891 500 1,700 1,500 2 ……………………. Manufacture of leather and related products ……………………. ……………………. 1 2 2 11 550 Manufacture of wood and Products of wood and cork 7 ex cept furniture ……………… 17 5 22 39 3,905 840 1,000 5,350 765 9,693 3,355 12,621 27,782 Manufacture of tex tiles ……………………. …………………….4 ……………………. 3 37 Manufacture of paper and paper products ……… - 1 - - 65 - - - 13 ……………………. Printing and reproduction of recorded media ……………………. ……………………. 20 16 10 6,400 Manufacture of Chemicals and chemical products ……………………. - ……………………. 2 3 3 10,000 - - - 10,700 - 9,836 26,858 - 18,059 1,115 6,000 7,630 1,700 4,490 32,669 - 7 Manufacture of other non-metallic mineral products ……………………. ……………………. 7 ……………………. 7 5 7 1,720 1,510 manufacture of fabricated metal products ex cept machinery and equipment …………… 53 Manufacture of furniture ……………………. 34 105 53 81 20,085 35,005 25,295 39,260 48 27 13 - 12,470 17,606 13,690 3,810 - 3 Other manufacturing n.e.c. ……………………. ……………………. ……………………. 2 2 6 - 1,400 700 2,315 2,725 - Repair and installation of machinery and equipment… TO TAL……………………………………………. 2 257 - - 543 233 66 - 1 8 325 350 280 104,501 194,316 - 325 120,849 8,300 165,292 180,954 Source: Keny a Industrial Estates Ltd * Prov isional 10.31. The Kenya Investment Authority registered 40 manufacturing projects in 2017, which was a decline from 43 projects registered in 2016 as shown in Table 10.10. The value of loans advanced to finance the projects increased to KSh 26.6 billion in 2017 from KSh 11.1 billion in 2016. Table 10.10: Industrial Projects1 Registered by Kenya Investments Authority, 2013-2017 2013 Number of Projects……………………………. Loans adv anced ( KSh billion)…………. 2014 2015 2016 2017* 42 19 48 43 40 42.1 7.4 8.8 11.1 26.6 Source: Keny a Inv estment A uthority * Prov isional 1 Fig ure s pre s e nte d a re not f or a ll proje c ts s inc e the Inv e s tme nt Promotion A c t,2004 doe s not ma nda te a ll inv e s tors to re g is te r w ith the A uthority 171 Economic Survey 2018 Export 10.32. Key performance indicators under the EPZ program, which include the number of Processing gazetted zones, operating enterprises, employment, cumulative capital investment; and local Zones purchase of goods and services recorded growths in 2017 as shown in Table 10.11. Table 10.11: Selected EPZ Performance Indicators, 2013-2017 Un it 2013 2014 2015 2016 2017* Gazetted Zones………………………………………………… Number 50 52 56 65 71 Enterprises Operating ……………………………………. " 85 86 89 111 131 39,961 46,221 50,302 52,947 54,622 472 517 597 618 717 Employ ment - Locals …………………………………….. " - Ex patriates …………………………………… " Tota l W ork e rs ……………………………………… " 40,433 46,738 50,899 53,565 55,339 Ex port ………………………………………………………………….. KSh Million 44,427 51,377 60,879 64,151 60,377 5,867 5,815 4,018 4,418 6,512 Domestic Sales1 ……………………………………………… " Tota l S a le s ………………………………………….. " 50,294 57,192 64,897 68,569 66,889 Imports …………………………….………………………………….. " 27,413 29,461 31,370 30,160 29,738 " Local Purchases of Goods and Serv ices….. ……………………………. 7,721 8,170 8,815 10,742 10,945 Capital Inv estment ……………………………………………………….. " 48,004 44,218 48,128 88,977 92,289 Source: Ex port Processing Zones A uthority (EPZA ) * Prov isional 1 Includes sales to duty f ree shops and agencies 10.33. The number of gazetted zones increased to 71 in 2017 from 65 in 2016. The gazetted zones were distributed as follows: 24 in Mombasa, 10 in Kilifi, 7 in Nairobi, 6 in Machakos, 4 in Bomet, Kiambu, Nakuru and Kwale each had 3 zones while Kajiado, Taita Taveta, Murang’a, Elgeyo/ Marakwet, Uasin Gishu, Laikipia, Nandi, Meru, Embu, Narok and Homa bay counties each had one gazette zone. In the period under review, five zones were public while the rest were owned and operated privately. The number of operating enterprises rose notably from 111 in 2016 to 131 in 2017. 10.34. Total sales by EPZ enterprises dropped from KSh 68.6 billion in 2016 to KSh 66.9 billion in 2017 mainly due to a 5.9 per cent decrease in exports to KSh 60.4 billion in 2017. The decline was mainly attributed to drought which affected supply of raw materials to agro processing industries, global competition and anxiety over the 2017 general elections. However, domestic sales rose to KSh 6.5 billion in 2017 from KSh 4.4 billion in 2016. Local purchases increased marginally from KSh 10.7 billion to KSh 10.9 billion during the same period. Imports decreased further by 1.4 per cent to KSh 29.7 billion in 2017. 10.35 Local employees engaged by EPZ enterprises increased from 52,947 persons in 2016 to 54,622 persons in 2017. Cumulative capital investments, which include equipment, machinery and zone infrastructure, has exhibited an upward trend since 2015 and stood at KSh 92.3 billion in 2017. 172 Chapter 10: Manufacturing African Growth and Opportunity Act 10.36. Table 10.12 shows selected indicators for the EPZ garment/apparel sub-sector under African Growth and Opportunity Act (AGOA). AGOA is an initiative of the United States of America (USA) meant to increase exports especially of apparel from accredited Sub-Saharan Africa (SSA) countries. Direct employment generated by the sub-sector increased by 3.5 per cent to 43,987 persons in 2017. The value of exports reduced for a second consecutive year from KSh 34.4 billion in 2016 to KSh 32.8 billion in 2017. Similarly, capital investment reduced to KSh 14.1 billion in 2017. Table 10.12: Selected EPZ Garment / Apparel Performance Indicators under AGOA, 2013-2017 2017* Pe rc e n ta g e Ch a n g e 2013 2014 2015 2016 Number of Enterprises……………………… 22 21 21 21 21 0.0 32,932 Number of Employ ees………………………… 37,785 41,597 42,496 43,987 3.5 Capital Inv estment (KSh Million)……13,465 15,051 15,708 15,300 14,096 -7.9 Ex ports (KSh Million)………………….24,246 30,244 35,224 34,410 32,761 -4.8 Source: Ex port Processing Zones A uthority * P rov isional Developments in the Sector 10.37. The Government has identified manufacturing as one of its big four-agenda and has set targets for growth and employment creation in the sector. The plan has emphasized Government focus to boost fish processing, agro-processing, leather and textiles sub-sectors. The budget for the 2017/18 year has several incentives to attract foreign investments and protect locally manufactured goods. Towards this, the Government allocated resources for; modernization of some key industries, development of regional specific industrial clusters, development of basic infrastructure in selected Special Economic Zones (SEZ) and development of basic infrastructure for leather industrial park and a common manufacturing facility for leather among others. In addition, the commencement of the Standard Gauge Railway freight services is expected to ease manufacturers’ burden by lowering domestic transport costs. The Government is also supporting the sector by subsidizing electricity supplied to manufacturers and increasing supply of renewable energy. The Government’s directive of sourcing domestically manufactured shoes and uniforms for the disciplined forces is expected to spur growth of the textiles and leather sub-sectors. 173 Economic Survey 2018 Chapter 11 Building and Construction Overview I mproved infrastructural networks are key to the economy since they enhance connectivi and mobility, which in turn promotes trade and investment by reducing the cost of doi business. In 2017, the construction sector registered a growth of 8.6 per cent compar to a 9.8 per cent growth in 2016. During the review period, the first phase of construction the single-track Standard Gauge Rail (SGR) from Mombasa to Nairobi was completed an the first commuter train launched on May 2017. The construction work for the second pha of SGR that runs 120 kilometres from Nairobi to Naivasha commenced in September 201 The other major projects that were ongoing in the review period were; the expansion an modernisation of the Outer Ring road, expansion of Ngong road, construction of the Keny Western bypass, Dongo Kundu bypass and Nuno-Modogashe road. 11.2. The overall expenditure on roads is expected to increase from KSh 173.7 billion 2016/17 to KSh 198.4 billion in 2017/18. This growth is mainly attributed to increas development expenditure on roads which is expected to grow by 19.2 per cent to KSh 134 billion in 2017/18. Disbursement of funds by Kenya Roads Board (KRB) to various ro agencies and County governments is expected to increase from KSh 60.5 billion in 2016/1 to KSh 63.5 billion in 2017/18. Loans and advances from commercial banks to building an construction sector increased to KSh 109.9 billion in 2017 from KSh 104.8 billion in 201 reflecting a 4.9 per cent increase. 11.3. The value of new private buildings issued with certificate of occupancy by Nairobi Ci County (NCC) increased by 10.2 per cent from KSh 77.7 billion in 2016 to KSh 85.6 billio in 2017. The value of public buildings completed by the State Department for Housing an National Housing Corporation (NHC) decreased from KSh 3.8 billion in 2016 to KSh 2 billion in 2017. In 2016/17, the approved expenditure for housing was KSh 17.5 billion wh actual expenditure stood at KSh 16.5 billion, representing 94.3 per cent utilization. The val of building plans approved in NCC decreased from KSh 308.4 million in 2016 to KSh 240 million in 2017. During the same period, cement consumption decreased by 8.2 per cent 5,788.9 thousand tonnes. Key Economic Indicators 11.4. Selected key economic indicators in the building and construction sector from 2013 2017 are presented in Table 11.1. The index of Government expenditure on roads increas from 462.8 in 2016 to 526.1 in 2017, due to major road projects undertaken during the revie period. Further, the index of reported private building works completed in Nairobi Ci County rose from 409.3 in 2016 to 443.1 in 2017. On the other hand, the index of report public building works completed in major towns registered a decrease from 69.2 in 2016 59.4 in 2017. During the review period, cement consumption decreased by 8.2 per cent 5,788.9 thousand tonnes in 2017. Loans and advances to the sector increased by 4.8 per ce from KSh 104.8 billion in 2016 to KSh 109.9 billion in 2017. 174 Chapter 11: Building and Construction Table 11.1: Selected Key Economic Indicators in Building and Construction, 2013 - 2017 1982=10  Indicator Index of reported private building works in sed 4.9 oad 17 nd 16, ity on nd 2.3 hile lue 0.8 to to sed ew ity ted to to ent 2014 2015 2016 2017* 321.3 341.4 369.4 409.3 443 103.7 106.1 112.6 69.2 59 Index of government expenditure on roads1+ 313.9 263.4 350.3 462.8 526 1 197.8 220.0 245.0 269.9 277 4,266.5 112.0 7.5 5,196.7 125.3 7.6 5,708.8 140.2 7.9 6,310.1 155.0 8.0 5,788 159 8 70,770.0 80,406.0 107,842.6 104,825.8 109,882 completed in Nairobi City County1 ……. Index of reported public building works completed in major towns1 ……. ity ing red of nd ase 17. nd ya’s 2013 Index of Employment ……. Cement consumption ('000 tonnes) ……. Private Employment ('000 persons) ……. Public Employment ('000 persons) ……. Loans and Advances from Commercial Banks to the sector (KSh Mn) …………. * Provisional. + 1 Construction Price Indices Revised The index of roads, reported private and public building works completed has been deflated using construction input price indices. 11.5. The percentage changes in the cost of building and construction materials and labo from 2015 to 2017 are presented in Table 11.2. The cost of materials increased by 3.0 per ce in 2017 compared to a 1.8 per cent growth in 2016. The highest growth in the cost of buildin materials was in the residential buildings which increased by 3.8 per cent during the revie period. The cost of labour in the building and construction sector registered a slower grow of 6.6 per cent in 2017 compared to a growth of 12.3 per cent in 2016. The increase in the co of labour was highest in the construction of building sub-sector (10.5%) and lowest in civ engineering sub-sector (3.3%). Table 11.2: Percentage Changes in Construction Cost of Materials and Labour, 2015 – 2017 Materials 2015 2016 2017* Residential Buildings......................................................... 2.6 1.9 3.8 Non-Residential Buildings ............................................... 2.3 1.6 1.8 All Buildings...................................................................... 2.5 1.8 2.9 1 Other Construction ………………………………………………………………………………… -3.0 1.8 3.2 Total Cost Index 0.9 1.8 3.0 Consruction of buildings................................................... 25.5 12.5 10.5 Civil engineering............................................................... 17.9 6.2 3.3 Specilaized Construction activities.................................... 25.7 12.2 3.5 25.5 12.3 6.6 Labour Total Labour Cost * Provisional. 1 Refers mainly to road construction and includes bridges and dams 11.6. The average monthly basic wages for unskilled, semi-skilled and skilled workers in th building and construction industry for the last five years are shown in Table 11.3. Month basic wages for the unskilled and semi-skilled workers increased by 6.6 per cent each, whi those for skilled workers rose by 6.5 per cent in 2017. The rate of growth in wages for all th three categories of workers was slower compared to the growths recorded in 2016. 175 Economic Survey 2018 Table 11.3: Monthly Average Basic Wages in Building and Construction Industry, 2013 – 2017 KSh Year Unskilled Semi-Skilled Skilled 2013....................................... 15,811 21,778 31,263 2014....................................... 16,994 23,500 33,832 2015....................................... 18,771 25,868 37,127 2016....................................... 20,174 27,902 40,187 2017....................................... 21,497 29,757 42,794 Source: Ministry of Labour, Social Security and Services 11.7. Table 11.4 shows the value of building plans approved and completed buildings issu with certificate of occupancy in NCC for the period 2013 to 2017. The value of building pla approved decreased by 23.2 per cent to KSh 240.8 billion in 2017. The value of complet buildings issued with certificate of occupancy in NCC increased by 10.1 per cent to KSh 85 billion in 2017. Table 11.4: Value of Private Building Plans Approved and Building Works Completed in Nairobi City County, 2013 - 2017 Building Plans Approved Year 2013........................................................................ 2014........................................................................ 2015........................................................................ 2016........................................................................ 2017*...................................................................... KSh Milli Building Works Completed1 52,276.0 59,519.7 70,867.4 77,749.7 85,588.3 190,646.5 205,423.9 215,211.0 308,361.4 240,752.0 Source: Nairobi City County *Provisional 1 Excluding extensions 11.8. Table 11.5 presents the number of completed private buildings reported to Nairobi Ci County and completed public buildings reported by State Department of Housing and NH The total number of private buildings issued with certificate of occupancy increased by 9.7 p cent from 10,268 in 2016 to 11,202 in 2017. Residential buildings accounted for 85.0 per ce of the completed private buildings during the review period. The number of public buildin completed increased by 9.6 per cent to 1,164 units, out of which 1,072 units were for Nation Police and Prison services. Table 11.5: Reported Private and Public Buildings1 Completed, 2013 – 2017 Number Year Private (Nairobi City County) Total Residential Non- Residential Public (Countrywide) Residential 2013...................................... 5,447 876 6,323 376 2014...................................... 6,538 985 7,523 243 2015...................................... 7,834 1,220 9,054 45 2016...................................... 8,806 1,462 10,268 1,062 2017*.................................... 9,564 1,638 11,202 1,164 Source: Nairobi City County, National Housing Corporation & The State Department for Housing * Provisional 1 New buildings 176 ued ans ted 5.6 ion Chapter 11: Building and Construction 11.9. Table 11.6 shows reported value of new private buildings issued with certificate occupancy in NCC and public buildings completed countrywide by the State Department Housing and NHC. The value of new private buildings increased by 10.2 per cent from K 77.7 billion in 2016 to KSh 85.6 billion in 2017, mainly on account of a 9.7 per cent increa in the value of residential buildings. The value of public buildings completed decreased fro KSh 3.8 billion in 2016 to KSh 2.3 billion in 2017. Table 11.6: Reported Value of New Private and Public Buildings issued with certificate of occupancy, 2013 – 2017 KSh Million Year Private (Nairobi City County) NonTotal Residential Public (Countrywide) Residential 2013.......................................... 45,236.4 7,039.6 52,276.0 1,725.4 2014.......................................... 50,952.2 8,567.5 59,519.7 502.1 2015.......................................... 61,556.4 9,311.0 70,867.4 61.5 2016.......................................... 67,624.9 10,124.8 77,749.7 3,786.4 2017*........................................ 74,207.0 11,381.3 85,588.3 2,347.0 Source: Nairobi City County, National Housing Corporation & the State Department for Housing * Provisional NB: Public residential buildings are constructed by the State Department for Housing and National Housing Corporation ity HC. per ent ngs nal r 177 Economic Survey 2018 Housing Credit and Government Expenditures 11.10. Table 11.7 presents the number and value of loans advanced by the National Housi Corporation to individuals for construction and improvement of residential houses by Coun A total of 73 loans amounting to KSh 91.7 million were issued in 2017. The highest number loans were issued to residents of Trans Nzoia and Kiambu counties. Table 11.7: Housing Loans Advanced by National Housing Corporation by County, 2016/2017 County Number of Loans Amount (KSh '000') Bungoma.................................. 4 7,150 Busia.......................................... 1 600 Eldoret...................................... 2 4,000 Homa Bay................................. 1 1,900 Kajiado...................................... 7 4,600 Kakamega................................. 3 3,300 Kiambu..................................... 10 7,740 Kirinyaga.................................. 1 3,000 Kisii........................................... 2 2,400 Kisumu...................................... 3 6,500 Lamu......................................... 5 2,400 Machakos.................................. 6 10,440 Meru......................................... 2 5,700 Murang'a................................... 1 3,000 Nairobi City.............................. 3 6,450 Nakuru...................................... 4 10,740 Vihiga........................................ 2 3,700 Taita Taveta .............................. 4 2,000 Trans Nzoia.............................. 12 6,100 Total 73 91,720 11.11 Approved and actual Government expenditure on housing from 2013/14 to 2016/ is shown in Table 11.8. Actual expenditure on housing increased significantly from KSh 6 billion in 2015/16 to KSh 16.5 billion in 2016/17. The actual expenditure in 2016/17 w 94.6 per cent of the approved expenditure. Table 11.8: Approved and Actual Government Expenditure on Housing, 2013/14 – 2017/18 Year 2013/14......................... 2014/15......................... 2015/16......................... 2016/17*....................... 2017/18**..................... Expenditure in KSh Million Approved Actual 7,032.0 6,088.6 7,395.0 5,857.0 7,342.7 6,034.5 17,498.9 16,548.7 14,845.8 Source: State Department of Housing *Provisional **Estimates 178 Actual expenditure as a Percentage of Approved Expenditure 86.6 79.2 82.2 94.6 ing nty. r of Chapter 11: Building and Construction Roads Statistics 11.12. Table 11.9 gives a breakdown of the total expenditure on roads from 2013/14 2017/18. The overall expenditure on roads is expected to increase by 14.2 per cent to KS 198.4 billion in 2017/18 from KSh 173.7 billion in 2016/17. Total development expenditu on roads is expected to increase by 19.2 per cent from KSh 113.2 billion in 2016/17 to KS 134.9 billion in the 2017/18. The expenditure on maintenance and repair of various roads expected to increase from KSh 60.5 billion in 2016/17 to KSh 63.5 billion in 2017/18. Th increase is mainly attributed to the increased budgetary allocation and increase in fuel levy. Table 11.9: Expenditure on Roads, 2013/14 - 2017/18 KSh Millio 2013/14 2014/15 2015/16 2016/17* 2017/18* Development: Trunk and primary Roads (A,B and C)…………………………………. 43,763.4 37,792.0 60,686.8 63,887.0 79,309.0 Secondary and Minor Roads (D and E) …………………………………. 16,784.0 12,343.5 20,492.1 29,291.5 31,496.2 Miscellaneous Roads (Including Urban)…………………………………. 3,853.0 4,698.4 17,093.3 20,004.0 24,122.3 113,182.5 134,927.5 Sub-total 64,400.4 54,833.9 98,272.2 Recurrent: Maintenance & Repair…………………………………. 25,174.5 25,924.2 Total 89,574.9 80,758.1 32,286.5 60,468.6 130,558.7 173,651.1 63,473.6 198,401.1 Source: State Department of Infrastructure & Kenya Roads Board *Provisional **Estimates 11.13. The Roads 2000 (R2000) Strategy is a programme geared towards maintenance an improvement of roads, with optimum use of labour and local resources. The programme funded by several development partners and is managed through the Public Private Partnersh (PPP). As shown in Table 11.10, a total of 5.3 thousand kilometres of roads were earmarke for construction in several counties at an estimated cost of KSh 238.7 billion in 2017. /17 6.0 was 179 Economic Survey 2018 Table 11.10: Status of Ongoing R2000 Programme as at end of December 2017 County Length (Km) Baringo................................. Bomet................................... Bungoma.............................. Busia..................................... Elgeyo/Marakwet................. Embu.................................... Garisa.................................... Homa Bay............................. Isiolo..................................... Kajiado.................................. Kakamega............................. Kericho................................. Kiambu................................. Kilifi...................................... Kirinyaga.............................. Kisii....................................... Kisumu................................. Kitui...................................... Kwale.................................... Laikipia................................. Machakos.............................. Makueni............................... Marsabit................................ Meru..................................... Migori................................... Mombasa ............................. Murang'a.............................. Nairobi................................. Nakuru................................. Nandi................................... Narok................................... Nyamira............................... Nyandarua............................ Nyeri.................................... Siaya..................................... Tana River............................ Tharaka-Nithi....................... Trans Nzoia.......................... Turkana................................ Uasin Gishu.......................... Vihiga................................... West Pokot........................... Total 262.0 188.2 166.5 63.0 47.7 119.1 7.3 139.0 82.1 70.0 111.3 183.0 263.1 197.0 64.0 280.0 48.0 85.0 74.0 120.0 191.9 105.8 110.0 280.7 33.0 12.2 238.0 8.0 257.0 180.0 20.0 88.6 58.7 213.9 69.0 15.0 88.5 50.0 153.0 340.5 84.0 160.0 5,328.0 Source: Kenya Rural Roads Authority 180 Percentage Completion 51.4 9.3 38.6 42.9 94.3 23.7 5.0 9.1 7.7 0.0 26.8 23.0 19.7 22.1 15.4 11.8 9.0 1.8 1.4 28.9 43.8 15.4 0.0 19.4 96.0 0.0 17.3 91.0 15.0 0.2 33.6 46.3 15.8 49.3 20.1 16.4 12.0 0.0 0.2 51.8 5.7 28.5 24.3 Estimated Project Cost (KSh Million) 10,294.8 7,131.7 8,810.6 3,168.6 2,470.1 5,485.3 519.9 4,644.9 3,946.1 3,037.6 4,986.9 8,913.8 12,529.2 7,815.0 2,804.9 12,699.1 2,005.2 3,821.3 3,024.6 5,912.4 7,439.6 4,200.2 5,007.9 13,964.6 1,536.0 866.1 11,848.4 721.0 8,459.0 8,119.3 720.3 4,717.6 3,148.1 9,887.4 3,212.5 761.6 3,526.1 2,045.4 6,948.7 17,742.2 3,195.2 6,605.9 238,695.2 t Chapter 11: Building and Construction 11.14. Road network by type and classification as at 30th June from 2013 to 2017 is shown in Table 11.11. The length of roads under bitumen increased by 42.3 per cent to 20.6 thousand kilometres in 2017 from 14.5 thousand kilometres in 2016. The length of trunk and primary roads under bitumen increased significantly from 8.5 thousand kilometres in 2016 to 12.2 thousand kilometres in 2017. The length of roads under earth and gravel almost doubled from 72.5 thousand kilometres to 140.8 thousand kilometres mainly due to reclassification of roads during the review period. Table 11.11: Kilometres of Road by Type and Classification as at 30th June, 2013 - 2017 Type of Road Bitumen Trunk and primary Roads (A,B and C)................... Secondary and Minor Roads (D and E) .................. '000 Km 2017* 2013 2014 2015 2016 7.9 3.1 7.9 3.1 8.2 3.2 8.5 3.3 Miscellaneous Roads1 ………………………………… 0.2 Total.................................................................... 11.2 Earth /Gravel 2.1 2.5 2.7 3.6 13.1 13.9 14.5 20.6 6.4 35.1 6.4 46.3 6.5 5.7 27.8 47.8 56.3 78.9 Miscellaneous Roads1 …………………………………… 11.0 Total.................................................................... 52.5 10.8 63.5 11.3 10.5 34.1 65.6 72.5 140.8 Trunk and primary Roads (A,B and C)................... Secondary and Minor Roads (D and E) .................. 12.2 4.9 Source: Kenya Roads Board *Provisional 1 Miscellaneous Roads includes; Urban roads, Government access, Settlement, Rural access, sugar, tea and wheat roads 11.15. Major road works in progress in 2017 are presented in Table 11.12. During the review period, KSh 201.7 billion was expected to be used for road construction, rehabilitation and upgrading. A total of KSh 103.3 billion was expected to be used for construction of 1.5 thousand kilometres of roads while KSh 98.4 billion was expected to be used for rehabilitation and upgrading of roads and interchanges. The major ongoing projects during the review period were: the expansion and modernisation of the Outer Ring road, expansion of Ngong road, the construction of Kenya’s Western bypass, Dongo Kundu bypass and Nuno-Modogashe road. 181 Economic Survey 2018 Table 11.12 - Major Road Works in Progress in 2017 Activity Length (Km) Road Construction Construction of Kibwezi - Mutomo - Kitui.................................................................................... Miritini - Mwache Kipevu Link Road............................................................................................. Garsen – Lamu – Witu................................................................................................................... Nuno-Modogashe (A13)............................................................................................................... Loruk – Barpelo (B17)................................................................................................................... Athi River - Machakos Turnoff....................................................................................................... Eldoret Bypass................................................................................................................................ Chiakariga – Meru (C92).............................................................................................................. Masara-Suna-Kehancha (C13) and Reinstatement of Awendo -Mariwa (D202) .......................... Kitale – Endebes - Suam................................................................................................................. Uplands - Githunguri road............................................................................................................. Chebilat – Ikonge – Chabera (C750)............................................................................................ Port Reitz/Moi International Airport (C110)............................................................................... Rumuruti – Maralal Road (C77) ................................................................................................... OljoOrok - Dundori (C83) Road.................................................................................................. Siaya - Ruambwa Road (C29) ....................................................................................................... Karen round- about........................................................................................................................ Northern and Eastern By-passes.................................................................................................... Gitaru road - Kirawa rd – Peponi rd- - Kiambu Road- Runda Road -Northern By Pass-Wangige road-(Rironi) ……………………………………………………. Pangani-Wakulima RA-Dagoreti corner- Dagoreti corner-Ngong town/ Junction A8 (ABC place)-Junction A8(GPO)-Kenyatta Avenue- Junction Moi Avenue …………………….. Donholm RA- road/ Junction UCB3 (Traffic police)- (Bunyala RA)/ Junction A8 (General Motors)-Enterprise road-Commercial street-Bunyala road- ………………………………. Casuarina Road.............................................................................................................................. Western Link Roads, Mbagathi Way, Dennis Pritt, State House Road, Jakaya Kikwete, State House Avenue and Lenana Road ……………………… Msabaha-Serengeti, Kakuyuni-Gede-Watamu, Jilore-Sita Centre, Kakayuni-Gede-Watamu ....... Junction(Magadi Road)-Junction UCB2 (Langata Road)-Junction UCB3(Ngong Road)./ Junction UCB2 - Langata South rd – Ushirika rd – Gataka rd – Matasi rd- Junction Ngong – Kiserian Road./ Junction Langata south - Kipevu rd – Banda lane- Junction Magadi Road (Banda school) ........................................................... Nyayo stadium - Karen Round About- Kikuyu road-Muthiga....................................................... Mkunumbi - Kaloleni, Bomani - Telelani ECD, Lake Amu – Kiogwe - Mkunumbi-Magogoni ... Tsavo N.Park- Shasha-Shelembe-Mkwachunyi-Ikanga Adult Centre- Mkwachunyi-TausaMariwenyi-Gimba Primary-Voi Town-Birikani ………………….. Routine Maintenance of Nakuru Roads In Nakuru County-Nakuru Municipality Roads (Lot 2All) ………………………………………………… Kehancha-Kegonga-Ntimaru........................................................................................................ Kidunguni - Youngstar - Likoni, A14 - Emmanuel Junior School, A14 - Ferry, Kidunguni - Base Titunium, A14 - Ferry, Shelly Beach Road, Mtongwe - Navy Road ……………………. Nairobi Outering Road Improvement Project............................................................................... Devki-Kinanie road........................................................................................................................ Sub-Total Source: KeNHA & KURA 182 Contract Amount (KSh Million) 192.0 19.6 135.0 135.0 66.0 20.0 32.0 56.0 60.0 48.0 47.0 35.0 9.0 35.0 35.0 26.0 4.4 51.6 18,404.9 12,675.9 10,868.6 6,135.7 6,040.9 5,288.5 5,079.5 4,667.6 4,561.5 4,475.0 3,988.1 3,109.8 2,797.8 2,740.8 1,911.1 1,908.5 585.9 90.9 119.5 69.6 38.5 62.9 37.0 28.7 59.4 54.5 24.0 46.8 46.8 38.0 26.5 28.0 51.0 36.9 35.3 31.1 38.8 29.7 18.7 22.5 26.6 17.7 25.6 13.0 22.4 1,547.6 17.6 7,395.2 10.0 103,262.2 Chapter 11: Building and Construction Table 11.12 - Major Road Works in Progress in 2017 Cont’d Contract Length (Km) Amount (KSh Million) Activity Roads Rehabilitation & Upgrading James Gichuru - Rironi........................................................................................ Kisii – Ahero –Isebania (A1) Lot 2: Kisii - Ahero................................................. Kisii – Ahero –Isebania (A1) Lot 1: Isebania - Kisii............................................. Lokitaung Junction - Kalobeiyei River............................................................... Lodwar - Lokitaung Junction.............................................................................. Kisumu - Kakamega Road................................................................................... Kalobeiyei River - Nadapal.................................................................................. Loichangamatak - Lodwar.................................................................................. Mombasa – Kwa Jomvu Rd (A109).................................................................... Bachuma Gate - Maji ya Chumvi......................................................................... Kakamega - Kaburengu (Webuye) New............................................................. Kisumu Boys - Mamboleo................................................................................... Phase one of Ngong Road expansion.................................................................. Kainuk Bridge..................................................................................................... 119.5 192.0 184.0 80.0 80.0 42.0 88.0 50.0 40.0 53.4 40.0 9.2 9.8 - 16,366.6 9,467.0 8,597.8 8,456.3 8,333.9 7,961.5 7,856.1 6,782.4 6,016.9 4,986.2 4,168.7 2,565.1 1,300.0 1,539.0 Interchanges1 Construction of 3 interchanges at Nakuru.......................................................... Interchange at Kericho (B1/C23)...................................................................... Interchange at Ahero (A1/B1)........................................................................... Sub-Total Total 987.9 2,535.5 2,690.0 671.9 655.9 98,415.2 201,677.4 Developments 11.16. In 2017, the first phase of construction of the single-track Standard Gauge Rail (SGR) from Mombasa to Nairobi was completed. The first commuter train, Madaraka Express, was launched on 31st May 2017. Construction work for the second phase of SGR (Phase 2A) that runs 120 kilometres from Nairobi to Naivasha commenced in September 2017. The construction work will cost KSh 155.5 billion and is expected to be completed within 18 months. Construction works include; a 5.3 kilometre tunnel, 9 super bridges rising up to 58 metres, and construction of 4 tunnels covering 7.756 kilometres. 11.17. The construction of a 70-floor building which is expected to be the tallest in Africa started in 2017 and is estimated to cost KSh 20.1 billion on completion. In addition, by December 2017, there were five ongoing housing projects in Machakos, Nairobi and Mombasa Counties. These projects are expected to provide an additional 450 housing units upon completion, at an estimated cost of KSh 2.0 billion. 183 Economic Survey 2018 Chapter 12 Tourism Sector Overview T he tourism sector recorded improvements during the year under review despite a prolonged electioneering period and negative travel advisories issued by some countries. Improved performance of the sector was supported by enhanced security, and aggressive promotion in both the domestic and the international markets. Receipts from the sector increased significantly by 20.3 per cent from KSh 99.7 billion in 2016 to KSh 119.9 billion in 2017. This was attributed to the increase in the number of international visitor arrivals that rose by 8.1 per cent from 1,339.7 thousand in 2016 to 1,448.8 thousand in 2017. 12.2. Hotel bed-nights occupancy increased by 11.3 per cent from 6,448.5 thousand in 2016 to 7,174.2 thousand in 2017. The number of international conferences held contracted by 15.9 per cent from 227 in 2016 to 191 in 2017. On the other hand, local conferences held increased by 2.4 per cent from 3,755 in 2016 to 3,844 in 2017. 12.3. The number of visitors to national parks and game reserves rose by 2.6 per cent to 2,345.2 thousand in 2017. However, visitors to museums, snake parks and historical sites decreased by 15.3 per cent to 782.0 thousand in 2017 from 923.1 thousand in 2016. Visitor 12.4. International visitor arrivals and tourism earnings continued on the recovery path Arrivals witnessed since 2016 as shown in Figure 12.1. The recovery was associated with measures put in place by the Government in the sector that resulted in tourist arrivals going up by 8.1 per cent to 1,448.8 thousand in 2017. Consequently, earnings rose by 20.3 per cent from KSh 99.7 billion in 2016 to KSh 119.9 billion in 2017. Figure 12.1: Trends in International Visitor Arrivals and Tourism Earnings, 2013 – 2017 1,448.8 1,519.6 1,350.4 1,400 1,180.5 Arrivals '000 1,200 1,000 800 1,339.7 94.0 120 119.9 99.7 87.1 100 80 84.6 60 600 40 400 20 200 0 140 Earnings (KSh billion) 1,600 2013 2014 2015 Arrivals 2016 2017 0 Earnings 12.5. Figures 12.2(a) and 12.2(b) present monthly visitor arrivals through Moi International Airport (MIA) and Jomo Kenyatta International Airport ( JKIA), respectively, in 2016 and 2017. The number of tourists who arrived through MIA grew by 8.0 per cent from 92.9 thousand in 2016 to 100.3 thousand in 2017. Similarly, arrivals through JKIA expanded by 10.6 per cent from 781.5 thousand in 2016 to 864.0 thousand in 2017. The highest number of arrivals at MIA were registered in December 2017 while at JKIA the peak was recorded in July 2017. Generally, month on month analysis revealed that arrivals in the two international airports were higher in most of months of 2017 compared to 2016. 184 Chapter 12: Tourism Sector Figure 12.2(a): Monthly International Visitor Arrivals through MIA, 2016 -2017 15.1 Number '000 11.5 10.0 9.4 9.8 7.8 8.6 8.4 7.8 3.9 4.1 Jan Feb Mar 3.6 Apr 4.2 11.0 10.7 8.4 7.3 9.1 9.0 7.6 10.3 8.0 5.1 2.7 May Jun MIA 2016 Jul Aug Sep Oct Nov Dec MIA 2017 Figure 12.2(b): Monthly International Visitor Arrivals through JKIA, 2016 -2017 Number '000 98.0 62.9 65.4 67.9 62.7 75.0 65.1 50.0 Jan Feb Mar 63.8 59.3 81.7 90.7 87.1 79.1 78.3 67.2 65.7 64.5 56.0 51.3 Apr 63.2 May Jun JKIA 2016 Jul Aug Sep Oct 61.2 61.6 Nov 67.6 Dec JKIA 2017 12.6. A comparison of international visitor arrivals through both MIA and JKIA to those through other border points from 2013 to 2017 is shown in Figure 12.2(c). The visitor arrivals through both MIA and JKIA grew at a faster rate of 10.3 per cent compared to a rise of 4.1 per cent for the other border stations during the review period. Despite the observed growth, the combined total number of visitor arrivals in 2017 was below the 2013 levels. 185 Economic Survey 2018 Figure 12.2(c): Number of International Visitor Arrivals through MIA and JKIA, and Other Border Points, 2013 -2017 1,107.1 964.3 874.4 861.4 Arrivals '000 748.8 605.9 2013 2014 2015 MIA & JKIA 484.5 465.3 431.8 412.4 2016 2017 Other Border Points 12.7. The number of international arrivals by purpose of visit and by quarter for the period 2013 to 2017 is shown in Table 12.1. Generally, these arrivals went up in all the quarters in 2017 compared to 2016. This growth was more pronounced in the second quarter, increasing by 15.5 per cent to 340.5 thousand in 2017. This was followed by the fourth quarter where the arrivals rose by 6.8 per cent from 343.3 thousand in 2016 to 366.8 thousand in 2017. Visitors who came for holiday, business and transit recorded declines during the third and fourth quarters of 2017. This could be attributed to uncertainties associated with the 2017 general elections. The number of visitor arrivals on holiday accounted for 68.4 per cent of all international arrivals in 2017, followed by business at 13.7 per cent as depicted in Figure 12.2(d). However, the share of holidaymakers was lower in 2017 compared to the previous year. 186 Chapter 12: Tourism Sector Table 12.1: International Visitor Arrivals by Purpose of Visit, 2013-2017 Pur pose 2013 2014 2015 2016 '000 2017* Holiday ....... Business....... Transit ......... Other ........... TOTAL ....... 257.6 45.9 22.5 30.5 356.4 266.2 50.1 28.5 37.1 382.0 210.1 41.3 18.2 23.5 293.1 231.3 41.5 16.9 27.3 317.0 243.4 56.2 20.3 17.0 336.9 Holiday ....... Business....... Transit ......... Other ........... TOTAL ....... 222.0 47.3 21.8 39.5 330.6 207.0 38.5 22.9 24.2 292.5 171.8 42.5 14.3 30.7 259.3 199.4 45.1 18.4 31.9 294.8 226.2 52.3 35.3 26.8 340.5 rd Holiday ....... Business....... Transit ......... Other ........... TOTAL ....... 284.2 41.7 20.8 35.5 382.2 267.9 43.0 22.2 36.7 369.8 231.4 37.2 19.6 34.0 322.1 278.3 53.4 17.4 35.6 384.6 274.0 51.6 15.3 63.6 404.5 th Holiday ....... Business....... Transit ......... Other ........... TOTAL ....... Holiday ....... Business....... Transit ......... Other ........... TOTAL ....... 340.1 55.3 21.1 34.0 450.4 1,103.8 190.2 86.1 139.5 1,519.6 235.7 35.3 15.5 19.5 306.1 976.9 166.9 89.2 117.5 1,350.4 231.5 37.5 14.3 22.6 306.0 844.8 158.6 66.4 110.7 1,180.5 253.6 40.0 18.8 30.8 343.3 962.6 180.0 71.5 125.6 1,339.7 248.0 38.6 14.1 66.0 366.8 991.7 198.7 84.9 173.5 1,448.8 Quar ter st 1 Qtr. 2 nd Qtr. 3 Qtr. 4 Qtr. Annual * Prov is ional Figure 12.2(d): International Visitor Arrivals by Purpose of Visit, 2017 Other, 12.0% Transit, 5.9% Business , 13.7% Holiday 68.4% 187 Economic Survey 2018 Visitor 12.8. The total number of international departures by purpose of visit and by quarter from 2013 Departures to 2017 is shown in Table 12.2. The number of departing visitors rose from 1,341.2 thousand in 2016 to 1,396.5 thousand in 2017, representing a 4.1 per cent rise. Departures during the first, second and third quarters of 2017 went up by 6.4, 6.9 and 7.3 per cent, respectively, compared to corresponding periods of the previous year. However, the fourth quarter of 2017 recorded a decline of 3.8 per cent in visitor departures. This was because of reduced holiday departures in 2017. Table 12.2: International Visitor Departures by Purpose of Visit, 2013-2017 Pur pose.... 2013 2014 2015 2016 ‘000 2017* Holiday .... Business ... Transit ...... Other ........ TOTAL..... 264.0 51.7 21.4 33.8 370.9 234.6 53.6 33.7 40.1 362.0 222.9 43.8 19.3 24.9 310.9 215.1 51.2 23.2 32.7 322.2 223.9 54.9 25.6 38.6 342.9 Qtr. Holiday .... Business ... Transit ...... Other ........ TOTAL..... 206.8 57.1 17.3 26.8 308.0 205.6 45.6 23.7 37.0 312.0 211.4 52.3 17.6 37.7 319.1 210.3 47.6 19.4 33.6 311.0 222.8 49.6 24.9 35.3 332.6 3 Qtr. rd Holiday .... Business ... Transit ...... Other ........ TOTAL..... 265.7 40.5 20.2 44.4 370.7 244.9 45.7 24.4 40.4 355.4 257.9 44.7 23.5 60.8 386.9 251.7 50.2 16.3 43.5 361.7 246.6 58.3 26.2 56.9 388.0 th Holiday .... Business ... Transit ...... Other ........ TOTAL..... Holiday .... Business ... Transit ...... Other ........ TOTAL..... 323.3 53.0 23.2 32.6 432.1 1,059.8 202.3 82.1 137.6 1,481.8 260.3 48.1 25.7 40.1 374.3 945.5 193.0 107.6 157.6 1,403.7 250.1 40.6 15.5 24.4 330.6 942.4 181.4 75.9 147.9 1,347.6 260.8 40.4 19.0 26.1 346.3 937.9 189.3 78.0 136.0 1,341.2 234.3 46.6 21.8 30.3 333.0 927.6 209.4 98.5 161.1 1,396.5 Quar ter st 1 Qtr. 2 nd 4 Qtr. Annual * Prov is ional 12.9. Table 12.3 presents the number of departing visitors by country of residence and by purpose of visit, excluding visitors whose purpose of visit was “Other”. Residents of Germany and United Kingdom jointly accounted for over half of all the departing residents of Europe. Departing residents of Canada and Switzerland recorded the highest growths of 29.6 and 26.4 per cent, respectively, in 2017. Departures by residents of African countries decreased by 8.4 per cent to 285.0 thousand in 2017. Similarly, departing residents of Tanzania declined by 21.8 per cent over the review period. 188 Chapter 12: Tourism Sector Table 12.3: Departing Visitors by Country of Residence and by Purpose of Visit1, 2015-2017 ` Country of Residence Germany United King dom Switzerland Italy France Scandinav ia Other Europe TOTAL EUROPE USA Canada TOTAL NORTH AMERICA Ug anda Tanzania Other A frica TOTAL AFRICA India Japan Is rael Other A s ia TOTAL AS IA A us tralia and New Zealand A ll Other Countries TOTAL * Prov is ional 1 ‘ 000 2015 79.3 132.2 11.3 40.4 21.3 31.3 65.6 381.5 116.8 22.5 139.3 37.5 23.1 191.0 251.7 63.6 8.3 3.0 62.3 137.2 18.3 14.4 942.4 Holiday 2016 81.0 129.6 9.3 42.3 23.2 33.1 70.3 388.7 118.3 19.4 137.7 39.3 26.0 177.1 242.5 65.3 8.5 2.7 60.7 137.2 20.2 11.7 937.9 2017* 83.8 124.9 10.9 45.5 24.2 34.1 74.7 398.2 120.1 24.4 144.5 39.9 19.4 149.0 208.3 68.8 8.9 2.4 59.6 139.6 23.8 13.1 927.6 2015 9.1 28.0 2.1 7.5 4.0 5.8 14.0 70.5 15.5 4.7 20.2 9.4 4.4 36.0 49.7 12.0 1.6 2.6 17.7 33.9 3.4 3.7 181.4 Business 2016 2017* 9.3 9.7 29.9 25.8 2.1 1.8 7.4 8.0 4.3 4.5 6.0 6.1 16.1 18.0 70.7 78.4 17.4 18.9 4.3 5.4 21.8 24.3 9.6 9.8 5.0 4.5 39.8 41.5 54.5 55.8 13.9 18.9 1.7 2.0 2.3 2.0 17.3 18.1 35.2 41.0 3.2 4.4 3.9 5.4 189.3 209.4 2015 4.8 10.0 0.9 3.1 1.7 2.4 5.9 28.8 8.4 1.7 10.1 3.0 1.8 15.1 19.8 5.0 0.7 0.2 4.9 10.8 1.4 4.9 75.9 Transit 2016 5.0 11.3 1.9 4.0 2.2 3.0 6.0 33.4 8.6 1.2 9.9 4.0 2.0 8.1 14.1 5.2 1.2 1.0 7.7 15.1 2.5 3.0 78.0 2017* 5.3 13.2 3.2 4.3 2.9 5.1 6.7 40.7 9.4 2.6 11.9 6.1 1.8 13.0 20.9 7.0 1.4 0.9 8.1 17.4 3.4 4.1 98.5 2015 93.3 170.1 14.3 51.1 27.0 39.5 85.5 480.7 140.8 28.9 169.6 49.8 29.3 242.1 321.2 80.6 10.5 5.8 84.9 181.9 23.2 23.0 1,199.7 Total 2016 95.2 166.7 12.9 53.7 29.8 42.1 92.5 492.8 144.4 25.0 169.3 53.0 33.0 225.0 311.1 84.4 11.4 5.9 85.8 187.5 25.9 18.6 1,205.2 2017* 98.8 168.0 16.3 57.9 31.5 45.4 99.4 517.3 148.4 32.4 180.7 55.8 25.8 203.5 285.0 94.7 12.2 5.2 85.8 198.0 31.7 22.6 1,235.4 Excludes v is itors whos e purpos e of v is it is " Other" 12.10. Details of the number of visitor-days stayed by purpose of visit together with average length of stay are shown in Table 12.4. The total number of days stayed by all categories of departing visitors excluding “Other” visitors expanded marginally from 15,884.6 thousand in 2016 to 16,057.6 thousand in 2017. However, the average length of stay dropped slightly to 13.0 days in 2017 from 13.2 days in 2016. Table 12.4: Number of Visitor-Days Stayed1 by Purpose of Visit, 2013-2017 Pur pose 2013 2014 2015 2016 Holiday ……………………………………………. 14,881.8 13,276.2 13,232.9 13,170.5 Business ……………………………………………………….. 2,691.6 2,568.1 2,413.7 2,518.6 205.9 270.0 190.3 195.5 Transit ……………………………………………………………. TOTAL ……………………………………………………………………. 17,779.3 16,114.3 15,837.0 15,884.6 Average length of stay in days …………………………………….. 13.2 12.9 13.2 13.2 * Prov is ional 1 Hotel Occupancy by Country of Residence ‘000 2017* 13,025.1 2,785.5 247.0 16,057.6 13.0 Excludes v is itors whos e purpos e of v is it is " Other" 12.11. Trends in the monthly bed occupancy rates are depicted in Figure 12.3. The overall rate of bed occupancy increased from 30.3 per cent in 2016 to 31.2 per cent in 2017. Bed occupancy rates in July, August and December had higher disparity in 2017 compared to 2016. Bed occupancy rates in May and November were almost the same in 2017 and 2016. The peak in bed occupancy was recorded in July at 37.3 per cent followed by December at 35.6 per cent in 2017. This was in contrast with 2016 where the peak bed occupancy was in December at 42.9 per cent. 189 Economic Survey 2018 Figure 12.3: Monthly Bed Occupancy Rates, 2016-2017 42.9 37.3 33.1 Per cent 29.3 28.4 30.2 28.7 27.8 30.7 28.7 31.5 29.5 32.1 30.3 32.132.9 Sep Oct Nov 35.6 30.3 31.2 24.8 23.9 23.7 Jan 31.4 31.3 28.6 36.4 Feb Mar Apr May Jun Jul 2016 Aug Dec Overall 2017 12.12. The number of bed-nights occupied in hotels, lodges and other rooming houses grew by 11.3 per cent from 6,448.5 thousand in 2016 to 7,174.2 thousand in 2017 as presented in Table 12.5. Bed occupancy by residents of Europe went up by 13.1 per cent in 2017. Among the European residents, bed occupancy by the residents of Switzerland recorded the highest increase of 23.9 per cent from 63.2 thousand in 2016 to 78.3 thousand in 2017, followed by residents of United Kingdom at 22.2 per cent from 211.6 thousand in 2016 to 258.6 thousand in 2017. The bed occupancy by residents of Africa grew by 3.6 per cent to 4,091.1 thousand in 2017 with the highest increase of 25.9 per cent coming from residents of North Africa. However, residents of Tanzania, South Africa and Uganda dropped in number of hotel bednights occupancy. Occupancy by Asian residents grew by 27.3 per cent from 386.2 thousand in 2016 to 491.8 thousand in 2017 with Chinese residents increasing by 45.8 per cent from 131.9 thousand in 2016 to 192.3 thousand in 2017 to continue being the majority. Kenyan residents occupied more than a half of the total bed-nights, in 2017, reflecting the importance of domestic tourism. The number of hotel bed-nights capacity grew by 8.1 per cent from 21,258.5 thousand in 2016 to 22,987.1 thousand in 2017, mainly on account of expansion and refurbishment of existing facilities and construction of new ones during the period under review, an indication of continued confidence in the sector. Similarly, the proportion of bednights occupied to the available capacity increased from 30.3 per cent in 2016 to 31.2 per cent in 2017. 190 Chapter 12: Tourism Sector Table 12.5: Hotel Bed-Nights Occupancy by Country of Residence, 2013-2017 Countr y of Residence 2013 2014 2015 2016 '000 2017* 1 127.5 102.3 87.0 98.7 57.6 Permanent Occupants ……………………………………….. 762.7 685.4 617.9 751.7 Germany ………………………………………………………….. 751.1 78.3 63.2 80.2 82.1 Switzerland ……………………………………………………… 96.9 258.6 211.6 224.5 275.0 United Kingdom ………………………………………… 498.3 91.6 88.3 74.1 156.2 Italy ………………………………………………………… 234.8 97.1 89.9 67.1 75.6 France ……………………………………………………………… 113.9 80.1 76.5 71.9 120.0 Scandinavia ………………………………………………………… 143.5 344.4 395.6 240.4 341.5 Other Europe ………………………………………………………….. 482.2 1,764.1 1,559.3 1,376.1 1,802.2 EUROPE …………………………………………………………… 2,320.6 3,645.1 3,495.9 3,154.1 2,948.7 2,699.1 Kenya Residents ………………………………………………… 76.8 77.4 76.0 67.7 110.2 Uganda ………………………………………………………………. 51.0 58.3 55.7 62.0 64.5 Tanzania ……………………………………………………………….. 110.7 105.3 102.3 101.3 104.3 East and Central Africa ………………………………………………………… 67.0 59.3 60.7 68.0 63.3 West Africa ………………………………………………………………………… 40.3 32.0 24.9 37.3 29.0 North Africa …………………………………………………………… 65.5 70.6 88.0 75.2 91.1 South Africa …………………………………………………………………… 34.6 49.8 57.7 37.0 37.5 Other Africa ……………………………………………………………….. 4,091.1 3,948.5 3,397.2 3,619.3 3,199.0 AFRICA ………………………………………………………………………… 287.3 254.3 248.5 293.9 294.6 U.S.A …………………………………………………………….. 54.6 43.3 46.4 59.9 61.8 Canada …………………………………………………………………. 39.4 25.6 37.0 35.2 36.8 Other America ……………………………………………………….. 381.3 323.2 331.9 389.0 393.3 AM ERICA ……………………………………………………………. 42.4 39.1 33.3 38.9 48.1 J apan ………………………………………………………….. 165.1 120.3 115.1 110.3 India ……………………………………………………….. 101.1 46.2 49.4 55.8 57.4 50.6 Middle East …………………………………………………… 192.3 131.9 82.6 92.1 China …………………………………………. 105.9 45.9 45.5 45.2 49.4 54.4 Other Asia ……………………………………………………… 491.8 332.1 386.2 348.1 360.1 ASIA …………………………………………………… 71.1 46.9 44.3 58.4 62.3 Australia and New Zealand ……………………….. 247.4 97.5 72.6 188.0 203.9 All Other Countries ………………………………………………….. 7,174.2 6,448.5 5,878.6 6,281.6 6,596.7 TOTAL-OCCUPIED ……………………………………… 18,292.2 19,877.2 20,187.2 21,258.5 22,987.1 TOTAL-AVAILABLE …………………………………………………. 31.2 30.3 29.1 31.6 36.1 Occupancy Rate % …………………………………….. * Prov is ional 1 Pers ons s tay ing one month or more in one hotel, including s ome block booking s for air crew 12.13. Table 12.6 presents details of hotel bed-nights occupancy by zone for the period 2013 to 2017. The number of hotel bed-nights occupied by tourists staying in hotel establishments located at the Coastal Beach area experienced a growth of 16.8 per cent from 2,286.3 thousand in 2016 to 2,670.4 thousand in 2017. Occupancy in Coastal Other grew by 6.0 per cent to stand at 209.0 thousand over the review period. Similarly, occupancy in Nairobi High Class registered an 8.3 per cent growth from 1,076.3 thousand in 2016 to 1,165.5 thousand in 2017, partly attributed to growth in the number of local conferences held in the city during the electioneering period. Decreases of 9.3 and 2.1 per cent in hotel bed-nights were recorded in the Nyanza Basin and in the Coastal Hinterland zones, respectively, in 2017. 191 Economic Survey 2018 Table 12.6: Hotel Bed-Nights by Zone, 2013-2017 2013 2014 Zone 2,750.3 2,527.7 Coastal Beach …………………………………. 124.0 95.9 Coastal Other ……………………………… 125.5 133.2 Coastal Hinterland ………………………………. 1,175.3 1,119.1 Nairobi High Class ……………………………… 455.7 388.0 Nairobi Other ………………………………….. 622.2 686.3 Central …………………………….. 473.0 479.5 Masailand …………………………… 345.3 357.7 Nyanza Basin ………………………….. 454.1 433.3 Western ……………………………… 71.2 60.9 Northern ………………………………. 6,596.7 6,281.6 TOTAL-OCCUPIED …………………….. 18,292.2 19,877.2 TOTAL-AVAILABLE ……………………… * Prov is ional 2015 2,113.8 116.6 108.4 1,014.9 378.0 583.6 491.6 487.8 448.8 135.1 5,878.6 20,187.2 2016 2,286.3 197.2 177.5 1,076.3 445.1 691.6 655.5 325.4 493.6 100.0 6,448.5 21,258.5 '000 2017* 2,670.4 209.0 173.8 1,165.5 507.3 745.5 732.1 295.2 572.0 103.3 7,174.2 22,987.1 12.14. The number of bed-nights occupied at the Coast by zone, excluding the Coastal Hinterland in 2016 and 2017 is illustrated in Figure 12.4. The North Coast continued to be the most preferred destination compared to the South Coast in 2017. Bed-nights occupancy in the North Coast rose from 1,114.4 thousand in 2016 to 1,641.6 thousand in 2017. Occupancy within Mombasa Island improved from 197.2 thousand bed-nights in 2016 to 209.0 thousand bed-nights in 2017. However, bed-nights occupancy in the South Coast dropped from 1,057.8 thousand in 2016 to 928.1 thousand in 2017. Occupancy in Kilifi, Malindi and Lamu have continued to remain low, dropping further during the review period. Figure 12.4: Bed-Nights Occupancy at the Coast, 2016-2017 Number '000 2,000 1,500 1,000 500 0 North Coast South Coast Kilifi, Malindi and Lamu 2016 Mombasa Island 2017 12.15. Table 12.7 presents the number of bed-nights occupied by area and by guests’ country of residence. During the period under review, the share of hotel bed-nights occupied in lodges declined marginally from 11.7 per cent in 2016 to 11.6 per cent. The number of bednights occupied by residents of USA in lodges increased from 82.1 thousand in 2016 to 107.8 thousand in 2017. Similarly, the number of bed-nights occupied by Chinese residents in the lodges increased from 70.2 thousand in 2016 to 86.7 thousand in 2017. A notable improvement was recorded in the Coast region with local and Germany residents continuing to lead with 1,467.4 thousand and 685.3 thousand, respectively, in 2017. The percentage share of occupancy in Nairobi hotels declined marginally from 23.6 per cent in 2016 to 23.3 per cent in 2017. 192 Chapter 12: Tourism Sector Table 12.7: Hotel Bed-Nights Occupancy by Area and by Country of Residence, 2016-2017 '000 Nairobi 2017* 2016 Country of Residence 1 Permanent Occupants Germany Switzerland United King dom Italy France Scandinav ia Other Europe Keny a Ug anda Tanzania Eas t & Central A frica W es t A frica North A frica South A frica Other A frica USA Canada Other A merica Japan India Middle Eas t China Other A s ia A us tralia & New Zealand A ll Other Countries TOTAL PERCENTAGE S HARE 10.7 31.4 8.4 69.3 10.0 22.3 20.6 84.9 574.8 46.5 38.3 86.9 50.4 26.1 53.8 35.8 127.5 18.6 10.4 19.4 44.0 24.2 24.3 21.4 18.3 42.9 1,521.4 23.6 7.2 31.1 10.0 86.9 15.5 26.9 22.8 85.6 581.1 43.2 33.8 88.7 52.9 33.5 50.2 22.7 121.3 25.4 18.2 19.8 71.9 25.3 44.5 23.0 23.9 107.6 1,672.8 23.3 Coast 2016 12.0 615.2 45.8 90.1 68.0 51.5 35.0 199.7 1,364.6 14.4 10.7 12.8 5.1 2.6 7.2 4.3 21.3 6.9 3.3 2.9 19.0 11.1 14.9 6.8 7.0 28.9 2,661.1 41.3 2 2017* 50.1 685.3 55.8 111.9 59.5 52.3 31.4 248.4 1,467.4 21.1 11.1 15.9 7.6 3.5 9.8 7.0 31.3 7.5 5.8 5.3 17.4 10.7 19.3 7.9 23.2 87.0 3,053.3 42.6 Lodges 2017* 2016 2.1 29.8 5.9 38.4 7.9 11.2 13.5 48.7 300.7 1.5 2.2 0.9 1.5 1.3 3.6 3.9 82.1 14.3 8.3 9.5 41.9 8.4 70.2 13.0 17.0 17.7 755.4 11.7 2.6 34.3 6.8 46.8 12.5 14.7 19.4 46.4 281.5 1.4 1.1 2.2 4.4 2.6 3.2 2.5 107.8 17.3 10.3 11.1 53.6 6.8 86.7 10.8 20.0 28.6 835.4 11.6 Others 2016 2017* 62.2 9.0 3.1 13.8 2.4 4.8 7.5 11.1 1,255.9 15.0 7.0 4.6 2.2 1.9 6.0 5.7 23.4 3.6 3.5 7.4 15.3 5.7 22.4 4.4 4.6 8.0 1,510.6 23.4 67.6 12.0 5.7 13.0 4.1 3.3 6.5 15.2 1,315.2 11.1 5.0 4.0 2.1 0.7 2.3 2.3 26.8 4.5 5.1 6.1 22.2 3.4 41.7 4.3 4.0 24.2 1,612.7 22.5 Total 2016 87.0 685.4 63.2 211.6 88.3 89.9 76.5 344.4 3,495.9 77.4 58.3 105.3 59.3 32.0 70.6 49.8 254.3 43.3 25.6 39.1 120.3 49.4 131.9 45.5 46.9 97.5 6,448.5 100.0 2017* 127.5 762.7 78.3 258.6 91.6 97.1 80.1 395.6 3,645.1 76.8 51.0 110.7 67.0 40.3 65.5 34.6 287.3 54.6 39.4 42.4 165.1 46.2 192.3 45.9 71.1 247.4 7,174.2 100.0 * Provisional Persons staying one month or more in one hotel, including some block bookings for air crew Lodges in National Parks and Game Reserves 1 2 12.16. As shown in Table 12.8, increased activities were recorded in accommodation facilities located in national parks as illustrated by the number of bed-nights occupied and type of catering offered. Bed-nights occupied in game lodges improved significantly from 755.4 thousand in 2016 to 835.4 thousand in 2017, representing 10.6 per cent rise. Occupancy in game reserves contracted to 334.6 thousand in 2017 mainly associated with reduced visitors to the Masai Mara game reserve. Over two thirds of total bed-nights occupied were by foreign residents that grew by 22.2 per cent to 551.4 thousand in 2017. Bed-nights occupied by East African residents declined from 304.4 thousand in 2016 to 284.0 thousand in 2017. The number of foreign residents that opted for full catering services increased from 382.3 thousand in 2016 to 493.2 thousand in 2017. Table 12.8: Game Lodges1 Occupancy, 2015 – 2017 '000 For eign Residents 2015 2016 2017* Game Reserves …………………………………………. 117.3 176.5 170.4 274.6 381.0 National Parks …………………………… 205.8 TOTAL ………………………………….. 323.1 451.1 551.4 Of which full Catering …………………………….. 304.6 382.3 493.2 Self Service ……………………………………….. 18.5 68.7 58.2 * Prov is ional 1 Bed-Nights Occupied E.A. Residents 2017* 2015 2016 164.2 175.7 187.7 128.0 116.6 119.8 303.7 304.4 284.0 230.8 217.2 176.4 72.8 87.2 107.6 Lodg es in National Parks and Game Res erv es 193 2015 293.0 333.7 626.7 535.4 91.3 Total 2016 364.2 391.2 755.4 599.5 155.9 2017* 334.6 500.8 835.4 669.7 165.8 Economic Survey 2018 National Parks and Game Reserves 12.17. Table 12.9 presents the number of visitors to national parks and game reserves from 2013 to 2017. The number of visitors to these attraction sites rose by 2.6 per cent from 2,284.7 thousand in 2016 to 2,345.2 thousand in 2017. The number of visitors to the Impala Sanctuary, Nairobi Mini Orphanage, Lake Nakuru, Hell’s Gate, Nairobi Safari Walk and Nairobi had over 150 thousand visitors each, jointly accounting for 55.9 per cent of all visitors to national parks and game reserves, in 2017. Visitors to Tsavo East recorded a significant growth of 42.1 per cent in 2017. However, the number of visitors to Lake Bogoria, Impala Sanctuary and Meru national parks declined by 25.6, 21.9 and 15.7 per cent, respectively, in the year under review. Other declines were recorded in the Nairobi Mini Orphanage, Masai Mara and Haller’s Park. Table 12.9: Number of Visitors to National Parks and Game Reserves, 2013-2017 Par k/Reser ve 2013 2014 2015 131.8 133.1 154.7 Nairobi ……………………………………………… 136.0 133.0 139.2 Nairobi Safari Walk ………………………………………………. 407.4 361.3 328.2 Nairobi Mini Orphanage …………………………….. 117.1 86.9 Amboseli ……………………………………… 141.2 68.8 51.0 31.8 Tsavo (West) …………………………………………… 153.2 103.2 75.2 Tsavo (East) ……………………………… Aberdare ……………………………………… 50.1 43.8 34.7 262.5 226.0 188.9 Lake Nakuru ……………………………………………. 103.8 166.0 146.9 Masai Mara ……………………………………………. Haller's Park ………………………………………….. 121.5 116.2 115.4 41.9 28.9 29.3 Malindi Marine ……………………………………….. 91.5 80.5 71.4 Lake Bogoria ……………………………… Meru ……………………………………………………….. 14.7 19.2 17.3 Shimba Hills ……………………………………………… 23.2 17.6 17.2 24.6 20.2 18.5 Mt. Kenya ……………………………………………. Samburu ……………………………………………………….. 13.5 15.4 8.5 44.7 29.7 24.8 Kisite/Mpunguti ………………………………………… 36.8 27.4 26.2 Mombasa Marine ………………………………………. 35.1 31.3 24.3 Watamu Marine ………………………………… Hell's Gate ………………………………………. 89.0 114.1 120.2 222.3 227.6 212.1 Impala Sanctuary(Kisumu) …………………. 43.6 50.7 53.3 Mt. Longonot …………………………………………….. 1 Others ………………………………………… 57.5 52.6 2,164.6 TOTAL …………………………………………… 2,337.7 49.5 1,952.8 2016 153.1 149.3 390.4 114.6 50.2 84.8 41.3 214.7 146.3 121.1 31.5 90.8 19.8 21.2 19.1 10.8 34.4 29.5 33.9 154.4 256.5 64.5 52.6 2,284.7 ‘000 2017* 154.5 165.9 367.7 145.5 55.3 120.5 43.7 216.0 132.7 117.9 31.6 67.6 16.7 24.0 20.2 11.1 38.4 32.2 43.5 206.5 200.2 88.0 45.6 2,345.2 S ource: Keny a W ildlife Serv ices * Prov is ional 1 Others include A rabuko Sokoke, Ol-Dony o Sabuk, Mars abit, Saiwa s wamp, Sibiloi, Bamburi, Chy ulu, Ruma National Park, Mwea National Res erv e, Central ls land National Park, Kiung a, Mt.Elg on, Nas olot, Ndere and Kakameg a. 12.18. Kenya citizens (adults and children) continued to constitute the largest number of visitors to national parks and game reserves in 2017 as presented in Figure 12.5. Among the non-residents, adults constituted the highest number of visitors to national parks and game reserves in 2017. However, the number of student visitors to the parks and game reserves contracted in 2017 compared to 2016. 194 Chapter 12: Tourism Sector Figure 12.5: Visitors to National Parks and Game Reserves, 2015-2017 900,000 800,000 700,000 Number 600,000 500,000 400,000 300,000 200,000 100,000 0 2015 2016 Non-Resident Foreigner Children Resident Foreigner Kenyan Citizen Non-Resident Foreigner Resident Foreigner Kenyan Citizen Non-Resident Foreigner Resident Foreigner Kenyan Citizen Adults Students 2017 Note: Residents refers to foreigners expecting and/or have stayed in Kenya for more than 12 months Museums, Snake Parks and Historical Sites 12.19. The number of visitors to museums, snake parks and historical sites from 2013 to 2017 is shown in Table 12.10. The number of visitors to these attractions declined by 15.3 per cent from 923.5 thousand in 2016 to 782.0 thousand in 2017. Visitors to Kisumu and Nairobi National museums dropped by 35.7 and 20.0 per cent, respectively, during the year under review. However, visitors to Karen Blixen museum increased by 18.4 per cent to record 42.4 thousand visitors in 2017. Similarly, visitors to Kariandusi museum increased by 13.0 per cent from 12.3 thousand in 2016 to 13.9 thousand in 2017. The highest number of visitors to museums, snake parks and historical sites were recorded in July 2017 although August had the peak in 2016 as depicted in Figure 12.6. 195 Economic Survey 2018 Table 12.10: Number of Visitors to Museums, Snake Parks and Historical Sites, 2013-2017 Name of M useums Nairobi National Nairobi Snake Park Fort Jesus Kisumu Kitale Gede Meru Lamu Jumba la Mtwana Olorgessaile Kariandusi Hyrax Hill Karen Blixen Malindi Kilifi Mnarani Kabarnet Kapenguria Pete Sites Swahili House Narok German Post Takwa Ruins Koobi Fora Rabai Thimlich Ohinga Lamu Port TOTAL 2013 130.9 94.8 152.1 151.2 54.3 54.6 26.3 2.8 7.4 .. 4.3 5.9 44.7 26.1 0.8 1.6 8.7 0.0 0.3 0.6 0.1 0.6 0.0 2.7 0.1 .. 770.8 S ource: National Mus eums of Keny a * Prov is ional .. Data not av ailable 2014 52.5 33.0 113.4 219.4 64.8 47.5 32.8 1.7 5.7 2.7 24.2 11.6 45.2 21.0 2.5 1.7 9.7 0.0 0.3 0.6 0.1 0.6 .. .. .. .. 690.9 2015 264.0 24.0 121.3 210.6 33.5 39.9 23.7 1.5 4.3 1.1 11.4 8.7 25.9 14.7 1.2 1.4 7.3 0.0 0.5 0.0 0.2 .. 2.4 .. .. 797.5 2016 278.7 26.1 150.5 199.2 55.8 55.6 19.9 2.7 7.3 0.4 12.3 29.1 35.8 31.8 0.8 3.4 12.4 0.1 0.9 0.0 0.4 .. .. .. 0.4 923.5 ‘000 2017* 222.9 28.7 130.5 128.1 62.8 62.6 16.9 2.9 7.3 2.0 13.9 20.7 42.4 22.1 1.9 2.1 11.5 0.2 0.3 0.0 1.4 .. .. .. 0.9 782.0 Figure 12.6: Monthly Number of Visitors to Museums, Snake Parks and Historical Sites, 2016-2017 70.5 72.0 Dec Nov 31.9 41.8 Oct Sep Aug 76.2 49.3 52.5 65.6 199.7 39.3 167.2 Jul 86.8 Jun May 53.7 Apr Jan 75.5 61.1 59.4 Mar Feb 109.0 37.1 40.0 36.3 37.8 27.6 28.7 Number '000 2016 196 2017 186.5 Chapter 12: Tourism Sector Conference 12.20. Indicators on conference tourism for the period 2015 to 2017 are presented in Table Tourism 12.11. The number of international conferences and delegates declined by 15.9 and 36.8 per cent, respectively, in 2017. This was attributable to prolonged political activities that hindered smooth operations in international conference tourism. In addition, the regular travel advisories issued by some source markets also lowered the momentum of incoming international delegates. On the contrary, local conferences and delegates increased by 2.4 and 17.1 per cent, respectively, in 2017, partly on account of numerous political strategy activities held in the review period. Conference capacity utilization dropped from 11.6 per cent in 2016 to 11.5 per cent in 2017. Table 12.11: Indicators on Conference Tourism, 2015-2017 2015 2016 Local Inter national Local Inter national No.of conferences …………………………………………. 3,199 218 3,755 227 No.of delegates ………………………………………….. 465,116 71,620 532,674 101,599 No.of delegate days ………………………………………………. 561,374 124,633 634,234 166,802 No.of delegate days available ……………………………………………….. 6,168,945 6,168,945 6,859,714 6,859,714 Percentage Occupancy ………………………………………………………….. 9.1 2.0 9.2 2.4 Number 2017* Local Inter national 3,844 191 623,749 64,167 693,159 120,348 7,090,986 7,090,986 9.8 1.7 * Prov is ional 12.21. The Kenya Utalii College (KUC) has continued to offer trainings to middle and highTraining in level work force for the country’s hospitality industry over the years. During the review period, Hospitality the number of graduates who pursued various courses at KUC rose from 2,664 in 2016 to 2,861 as shown in Table 12.12. This was mainly attributed to an increase in the number of graduates who pursued refresher courses that grew by 11.5 per cent to 1,249. Similarly, graduates who pursued short courses rose by 8.7 per cent from 835 in 2016 to 908 in the review period. Table 12.12: Kenya Utalii College Graduates, 2013-2017 Year 2013 2014 2015 2016 2017* In- Ser vice Cour ses Pr ofessional Cour ses Refr esher Regular Shor t Sub1 M DP Cour ses Cour ses Cour ses Total 1,299 541 758 1,450 252 584 1,177 593 936 237 258 517 736 1,253 813 1,120 242 467 835 1,302 255 449 908 1,357 1,249 S ource: Keny a Utalii Colleg e * Prov is ional 1 MDP - Manag ement Dev elopment Prog rammes 197 Number G r and Total 3,001 2,350 2,324 2,664 2,861 Economic Survey 2018 Chapter 13 Transport and Storage Overview A n efficient and effective transport system is a springboard for rapid and sustained economic development. During the period under review, the Government initiated a number of projects and programmes in the various transport sub-sectors including road, rail, air, maritime and non-motorised transport aimed at improving the transport system. Overall, the output of the transport and storage sector expanded by 8.8 per cent to KSh 1,115.7 billion in 2017. Output from road transport increased by 5.7 per cent to KSh 702.1 billion and accounted for 62.9 per cent of the total output in the sector in 2017. 13.2. Total cargo throughput handled at the Mombasa Port increased by 10.6 per cent from 27.4 million tonnes in 2016 to 30.3 million tonnes in 2017, with imports handled accounting for 84.6 per cent. Total import traffic handled at the Port grew by 10.8 per cent to 25.6 million tonnes while export traffic handled expanded by 2.7 per cent to 3.8 million tonnes in 2017. During the same period, the number of domestic passengers travelling by air declined by 0.7 per cent to 3,991.2 thousand passengers while international passengers increased by 6.0 per cent to 6,121.3 thousand passengers. The volume of white petroleum products transported through pipeline rose by 10.8 per cent from 5,557.9 thousand cubic metres in 2016 to 6,155.7 thousand cubic metres in 2017. At the same time, the number of reported road traffic accidents dropped by 15.9 per cent to 4,452. Value of 13.3. Table 13.1 presents the value of output for the transport and storage sector from 2013 to Output 2017. Overall, the value of output for the sector expanded by 8.8 per cent from KSh 1,025.8 billion in 2016 to KSh 1,115.7 billion in 2017. The value of output from road transport increased by 5.7 per cent to KSh 702.1 billion, accounting for 62.9 per cent of the total output in the sector during the same period. Output from air transport sub-sector increased by 14.9 per cent to KSh 183.1 billion while that of services incidental to transport increased by 28.3 per cent to KSh 107.8 billion in the review period. On the other hand, output from the railway transport sub-sector declined by 8.8 per cent from KSh 5.7 billion in 2016 to KSh 5.2 billion in 2017. 198 Chapter 13: Transport and Storage Table 13.1: Transport and Storage - Value of Output, 2013 – 2017 KSh Million 2013 2014 2015 + 2016 + 2017* Road Transport……………………….. 520,915 595,726 629,045 664,484 702,127 Railway Transport…………………….. 4,849 5,357 6,282 5,662 5,202 Water Transport……………………….. 36,537 49,840 55,712 60,845 63,823 Air Transport………………………….. 131,456 139,912 147,447 159,319 183,033 Services Incidental to Transport………… 51,930 54,097 68,246 83,996 107,841 Pipeline Transport…………………….. 19,861 21,030 22,210 24,061 25,140 Postal & Courier Services………..……….. 10,654 27,179 27,925 27,464 28,497 Total…………………………………. 776,202 893,141 956,867 1,025,831 1,115,665 * Provisional. + Revised Road 13.4. Details on road maintenance funds approved by Kenya Roads Board (KRB) from Transport 2013/14 to 2017/18 are shown in Table 13.2. The disbursement of funds from KRB to various road agencies for maintenance of roads is projected to increase by 5.0 per cent from KSh 60.5 billion in 2016/17 to KSh 63.5 billion in 2017/18 mainly on account of the fuel levy. Collections from fuel levy are expected to increase by 5.0 per cent from KSh 60.0 billion in 2016/17 to KSh 63.0 billion in 2017/18 while those from transit toll are expected to reach KSh 474 million in 2017/18. The increase in fuel levy rate from KSh 12 per litre in June 2015 to KSh 18 per litre in June 2016 partly explains the increased collections from KSh 31.8 billion in 2015/16 to KSh 60.0 billion in 2016/17. Table 13.2: Road Maintenance Funds, 2013/14 - 2017/18 KSh Million 2013/14 2014/15 Fuel Levy .. .. .. .. ……………... 24,725 Transit Toll .. .. .. .. …………… Total 25,461 31,823 60,000 63,000 464 464 469 474 60,469 63,474 450 25,175 2015/16 2016/17* 2017/18** 25,924 32,287 Source: Kenya Roads Board * Provisional. ** Estimates 13.5. Earnings from road traffic increased by 5.7 per cent from KSh 664.5 billion in 2016 to KSh 702.1 billion in 2017 as presented in Table 13.3. Earnings from freight traffic rose by 6.3 per cent to KSh 352.2 billion in 2017, while that from passenger traffic increased by 5.0 per cent to KSh 350.0 billion in the same period. Table 13.3: Earnings from Road Traffic, 2013 - 2017 KSh Million 2013 2014 2015 2016 2017* Passenger Traffic .. .. ……………… 274,863 313,031 322,161 333,114 349,941 Freight Traffic+ 245,676 282,695 306,884 331,370 352,186 520,539 595,726 629,045 664,484 702,127 .. .. .. . ………….. Total Road Traffic Earnings * Provisional. + Revised 199 Economic Survey 2018 New Registration of Motor Vehicles and Motor Cycles 13.6. Table 13.4 presents the number of new registered motor vehicles and motor cycles for the period 2013 to 2017. During the review period, the number of units registered increased by 32.3 per cent from 213,715 in 2016 to 282,672 in 2017 mainly attributed to a surge in the number of motor cycle registrations. Motor Vehicles 13.7. Registration of vehicles except station wagons and wheeled tractors continued on a downward trend since 2015 as presented in Table 13.4. However, the total number of newly registered motor vehicles increased by 895 units from 90,176 in 2016 to 91,071 in 2017. The number of newly registered station wagons increased by 19.9 per cent to 55,322 while wheeled tractors increased by 9.1 per cent to 2,703 in 2017. The number of newly registered saloon cars dropped by 8.9 per cent from 12,490 in 2016 to 11,376 in 2017. Similarly, the number of newly registered panel vans and pick-ups decreased by 22.4 per cent to 9,866 in 2017. 13.8. The number of newly registered lorries and trucks declined by 22.5 per cent from 9,632 in 2016 to 7,460 in 2017. Similarly, the number of newly registered buses and coaches decreased by 39.3 per cent to 1,072 units during the review period. The number of newly registered trailers fell from 2,829 in 2016 to 1,953 in 2017 while that of mini buses/matatus dropped by 11.6 per cent from 519 in 2016 to 459 in 2017. Motor cycles 13.9. The number of newly registered motor cycles went up by 55.1 per cent from 123,539 units in 2016 to 191,601 units in 2017. This was occasioned by a 55.7 per cent rise in the number of registered motor and auto cycles over the review period. The number of newly registered three wheelers increased by 35.4 per cent from 3,815 units in 2016 to 5,167 units in 2017. The increased number of new registrations for motorcycles is partly explained by the removal of excise duty on motor cycle imports in September 2016. Table 13.4: New Registration of Road Motor Vehicles and Motor Cycles, 2013 - 2017 Number Type of Vehicle/Motor Cycle 2013 2014 2015 2016 2017* Saloon Cars........................................ 16,343 15,902 14,369 12,490 11,376 Station Wagons................................. 48,662 53,542 54,120 46,123 55,322 PanelVans,Pick-ups,etc..................... 9,819 12,568 13,878 12,722 9,866 Lorries/Trucks................................... 9,570 10,681 13,785 9,632 7,460 Buses and Coaches............................. 2,062 2,210 2,342 1,765 1,072 Mini Buses/Matatu............................ 235 213 581 519 459 Trailers............................................... 3,973 2,925 3,905 2,829 1,953 Wheeled Tractors............................... 1,902 2,032 2,259 2,478 2,703 Other vehicles.................................... 1,451 2,533 2,522 1,618 860 Total Motor Vehicles 94,017 102,606 107,761 90,176 91,071 Motor and Auto Cycles...................... 125,058 111,124 134,645 119,724 186,434 Three Wheelers.................................. 3,103 4,327 4,775 3,815 5,167 Total Motor Cycles 128,161 115,451 139,420 123,539 191,601 Total Units Registered 222,178 218,057 247,181 213,715 282,672 Source: National Transport and Safety Authority * Provisional. 200 Chapter 13: Transport and Storage Road Licenses 13.10. The number of PSV licenses issued by the National Transport and Safety Authority increased by 61.0 per cent from 33,349 in 2016 to 53,692 in 2017 as presented in Table 13.5. The number of PSV licenses issued to matatus more than doubled from 17,926 in 2016 to 37,382 in 2017 and constituted 69.6 per cent of all PSV licenses issued in the review period. The number of PSV licenses issued to buses increased by 67.3 per cent from 7,210 in 2016 to 12,064 in 2017. Passenger service vehicle licenses issued to mini buses almost halved from 8,213 in 2016 to 4,246 in 2017. 13.11. The number of driving licenses issued more than doubled from 123,386 in 2016 to 291,151 in 2017. Original driving licenses issued more than doubled to 219,333 and accounted for 75.3 per cent of the total driving licenses issued in 2017. Duplicate driving licenses increased substantially from 26,956 in 2016 to 70,689 in 2017. However, the number of foreign driving licenses issued declined by 61.1 per cent to 1,129 in 2017. Table 13.5: Road Transport Licenses Issued, 2013 – 2017 Number Type of License 2013 2014 2015 2016 2017* 17,138 17,926 37,382 PSV Licenses Matatus (0-14 seaters)………………………………….. 9,545 15,936 Buses ( 34 and above seaters)………..………..3,792 5,155 6,182 7,210 12,064 Mini Buses1 (15-33 seaters)…………………..3,350 6,062 7,186 8,213 4,246 16,687 27,153 30,506 33,349 53,692 Original…………………………...…………… 90,519 88,666 91,336 93,528 219,333 Duplicate………………………………………. 23,069 24,563 25,854 26,956 70,689 Foreign………………………………………. 2,671 2,737 2,826 2,902 1,129 115,966 120,016 123,386 291,151 Total Driving Licenses Total 116,259 Source: National Transport and Safety Authority * Provisional. 1 Includes Road Traffic Accidents Tour Vans 13.12. The number of reported road traffic accidents declined by 15.9 per cent from 5,296 in 2016 to 4,452 in 2017 as shown in Table 13.6 and Figure 13.1. Similarly, the number of reported casualties from the accidents decreased by 14.8 per cent from 13,159 in 2016 to 11,215 in 2017. Road traffic accident fatalities and persons seriously injured declined by 1.6 per cent to 2,919 and 15.4 per cent to 3,943 respectively, in 2017. The number of persons who were slightly injured declined by 21.3 per cent to 4,353 during the same period. Table 13.6: Reported Road Traffic Accidents, 2013 - 2017 Number 2013 2014 2015 2016 2017* Total Number of Reported Traffic Accidents............. 6,205 5,672 5,310 5,296 4,452 Persons Killed or Injured:- ........................................ 14,324 12,018 12,138 13,159 11,215 Killed........................................................... 3,191 2,907 3,057 2,965 2,919 Seriously Injured.......................................... 6,299 5,140 4,731 4,661 3,943 Slightly Injured............................................ 4,834 3,971 4,350 5,533 4,353 of which: Source: Kenya Police, Traffic Department * Provisional. 201 Economic Survey 2018 Figure 13.1: Reported Traffic Accidents and Casualties, 2016 - 2017 13,159 14,000 11,215 12,000 Numnber 10,000 8,000 6,000 5,296 4,452 2,965 4,000 2,919 4,661 3,943 5,533 4,353 Seriously Injured Slightly Injured 2,000 Reported Traffic Accidents Casualties 2016 Killed 2017 Railway 13.13. The performance of the railway transport sub-sector is presented in Table 13.7. Freight Transport traffic decreased by 16.9 per cent from 1,380 thousand tonnes in 2016 to 1,147 thousand tonnes in 2017 due to operational challenges faced by Rift Valley Railways (RVR). Revenue from freight decreased by 37.5 per cent from KSh 4.8 billion in 2016 to KSh 3.0 billion in 2017. Passenger journeys increased by 10.8 per cent from 2,793 thousand in 2016 to 3,096 thousand in 2017. Earnings from passenger traffic increased more than five times from KSh 134 million in 2016 to KSh 700 million in 2017. The overall increase in passenger journeys and revenue from passenger service is mainly due to the Standard Gauge Railway (SGR) passenger service that commenced in the second half of 2017. The number of passengers handled by the SGR was 689,205 while revenue earned from the SGR passenger service stood at KSh 590.2 million at the end of 2017. Table 13.7: Railway Traffic+, 2013 - 2017 Unit 2013 2014 2015 2016 2017* Freight: Tonnes...................................... 000 1,444 1,509 1,542 1,380 1,147 Tonne-km................................. Million 862 1,169 1,283 1,141 857 4,638 5,195 6,183 4,793 3,001 KSh 5.38 4.44 4.82 4.20 3.50 Journeys.................................... 000 3,785 3,715 2,288 2,793 3,096 Passenger-Km........................... Million 194 176 99 113 120 Revenue..................................... KSh Million 181 162 98 134 700 Revenue per passenger-Km........ 0.93 0.92 0.99 1.18 5.84 Revenue..................................... KSh Million Revenue per tonne-Km............. Passenger: KSh Source: Kenya Railways Corporation * Provisional + Revised Water 13.14. Total cargo throughput handled at the Mombasa Port increased by 10.6 per cent from Transport 27.4 million tonnes in 2016 to 30.3 million tonnes in 2017, as shown in Table 13.8. The total number of vessels that docked at the Port increased by 10.0 per cent from 1,607 in 2016 to 1,767 in 2017. This resulted in a 9.0 per cent increase in the volume of container traffic handled to 1.2 million Twenty-foot Equivalent Units (TEUs) during the review period. 202 Chapter 13: Transport and Storage Table 13.8: Traffic Handled at Mombasa Port, 2013 – 2017 Unit Container Traffic ………………….. TEUs Ships Docking ……………………… No. 2013 2014 2015 2016 2017* 894,000 1,012,002 1,076,118 1,091,371 1,189,957 1,768 1,832 1,694 1,607 1,767 Dry General……………………….. 000' DWT 7,700 8,354 9,099 8,992 9,505 Dry Bulk…………………………. " 4,913 5,231 6,350 6,447 7,920 Bulk Liquids…………………………. " 6,537 7,192 7,232 7,677 8,179 19,150 20,777 22,681 23,116 25,604 Imports Total Imports " Of which Transit In………………….. " 6,338 6,691 7,126 7,217 7,903 Motor Vehicles landed…………………….. No. 136,915 157,856 143,833 97,726 114,133 2,818 2,899 2,915 3,022 3,167 Dry Bulk…………………………… " 65 422 578 606 547 Bulk Liquids……………………….. " 100 45 40 51 80 2,983 3,366 3,533 3,679 3,794 513 508 541 531 734 22,133 24,143 26,214 26,775 29,398 174 732 518 589 874 22,307 24,875 26,732 27,364 30,272 Exports Dry General…………………….. 000' DWT Total Exports " Of which Transit Out………………. " Total Imports and Exports " Trans-shipment……………………. " Grand Total " Source: Kenya Ports Authority * Provisional. DWT - Dead Weight Tonnes 13.15. The total import traffic handled grew by 10.8 per cent from 23.1 million tonnes in 2016 to 25.6 million tonnes in 2017. Imports of dry bulk cargo increased by 23.4 per cent from 6.4 million tonnes in 2016 to 7.9 million tonnes in 2017 while that of general dry cargo increased by 5.6 per cent to 9.5 million tonnes during the same period. The volume of bulk liquid imports increased by 6.5 per cent to 8.2 million tonnes in 2017. The number of motor vehicles landed increased by 16.8 per cent to 114,133 in 2017, reversing the observed declining trend in the last two years. 13.16. Total export traffic handled at the Port of Mombasa expanded by 2.7 per cent from 3.7 million tonnes in 2016 to 3.8 million tonnes in 2017. Dry general export cargo increased by 4.8 per cent to 3.2 million tonnes while dry bulk export cargo declined by 9.7 per cent to 0.5 million tonnes in 2017. There was however, a significant growth in the exports of bulk liquids from 51 thousand tonnes in 2016 to 80 thousand tonnes in 2017. The increase in liquid bulk exports was as a result of increased oil and gas exports and bunkering activities. The volume of trans-shipment cargo increased from 589 thousand tonnes to 874 thousand tonnes in 2017 mainly due to removal of trans-shipment bond requirements during the review period. Pipeline 13.17. Table 13.9 presents the volume of white petroleum products transported through Transport pipeline for the period 2013 to 2017. Pipeline throughput rose by 10.8 per cent from 5,557.9 thousand cubic metres in 2016 to 6,155.7 thousand cubic metres in 2017. The volume of exports of white petroleum products rose by 6.9 per cent to 1,981.8 thousand cubic metres during the review period. 203 Economic Survey 2018 13.18. Throughput for domestic consumption increased by 3.9 per cent from 4,018.6 thousand cubic metres in 2016 to 4,173.9 thousand cubic metres in 2017. The volume of premium motor spirit transported for domestic consumption increased by 4.3 per cent from 1,177.6 thousand cubic metres in 2016 to 1,228.8 thousand cubic metres in 2017. During the review period, the volume of light diesel oil and jet fuel oil transported via the pipeline for domestic consumption increased by 5.1 per cent and 3.3 per cent, respectively. The volume of kerosene illuminating oil dropped slightly to 446.9 thousand cubic metres in 2017. Table 13.9: Pipeline Throughput of White Petroleum Products, 2013 – 2017 '000 Cubic Metres 2013 2014 2015 2016 2017* Exports1 Motor Spirit (Premium)…………………….. 688.6 726.0 757.0 696.3 744.2 75.8 70.1 66.2 60.4 Light Diesel Oil…………………………… 979.1 916.1 936.9 857.2 938.8 Jet Fuel……………………………….. 198.3 267.6 262.4 234.6 238.4 1,985.5 2,026.4 1,854.3 1,981.8 Motor Spirit (Premium)………………….. 897.5 1,028.8 1,103.4 1,177.6 1,228.8 - - - - Kerosene Illuminating Oil……………………. 353.8 362.9 396.5 450.1 446.9 Light Diesel Oil……………………………. 1,174.0 1,314.2 1,372.6 1,537.4 1,616.4 Jet Fuel……………………………………. 792.7 866.5 813.2 853.5 881.8 Kerosene Illuminating Oil…………………. 86.1 Sub-Total 1,952.1 Domestic Consumption2 Motor Spirit (Regular)……………………… 1.3 Sub-Total Grand Total 3,219.3 3,572.4 3,685.7 4,018.6 4,173.9 5,171.4 5,557.9 3,712.1 5,557.9 6,155.7 Source: Kenya Pipeline Company * Provisional. 1 Exports in this table implies transit petroleum products destined to neighbouring countries and are different from exports reported in Chapter 6 : International Trade and Balance of Payments 2 Excludes fuels transported by Kenya Railways or consumed in the Coastal region. Note: The figures may differ from those in Chapter 9 (Energy) due to different definition and classification of throughput in the context of international trade.Furthermore Chapter 9 data are in'000 tonnes whereas conversion of cubic metres to tonnes varies with product. Air 13.19. Passenger traffic: Information on commercial passenger traffic by airport for the period Transport 2013 to 2017 is presented in Table 13.10. The total number of passengers increased by 3.5 per cent from 9.8 million in 2016 to 10.1 million in 2017. During the review period, the number of domestic passengers handled was 3,991.2 thousand while that of international passengers was 6,121.3 thousand. International passenger arrivals increased by 7.0 per cent from 2.8 million in 2016 to 3.0 million in 2017 while international passenger departures increased by 6.8 per cent from 1.7 million in 2016 to 1.8 million in 2017. The number of international passengers on transit increased by 2.7 per cent from 1,217.8 thousand in 2016 to 1,251.3 thousand in 2017. 13.20. The number of passengers handled at Jomo Kenyatta International Airport ( JKIA) increased by 2.2 per cent to 7.3 million in 2017 while those handled at Mombasa International Airport (MIA) remained at 1.2 million during the review period. The number of passengers handled in other airports increased from 1.4 million in 2016 to 1.6 million in 2017. 204 Chapter 13: Transport and Storage Table 13.10: Commercial Passenger Traffic1 by Airport, 2013 - 2017 Year Category Sub-Category Domestic 2013 2014 2015 2016 2017* Arrivals Departures Sub-Total International Arrivals Departures In Transit Sub-Total Total Domestic Arrivals Departures Sub-Total International Arrivals Departures In Transit Sub-Total Total Domestic Arrivals Departures Sub-Total International Arrivals Departures In Transit Sub-Total Total Domestic Arrivals Departures Sub-Total International Arrivals Departures In Transit Sub-Total Total Domestic Arrivals Departures Sub-Total International Arrivals Departures In Transit Sub-Total Total JKIA MIA 602.4 408.3 1,010.7 2,403.8 1,380.2 1,152.2 4,936.2 5,946.9 761.3 550.9 1,312.2 2,491.4 1,501.8 1,081.1 5,074.3 6,386.5 823.8 579.2 1,403.0 2,523.1 1,390.7 1,163.6 5,077.4 6,480.4 900.6 739.0 1,639.5 2,682.4 1,571.7 1,217.8 5,472.0 7,111.5 807.4 669.0 1,476.3 2,868.3 1,675.0 1,251.3 5,794.5 7,270.8 370.5 361.5 732.0 210.0 234.0 103.2 547.2 1,279.2 438.5 420.1 858.6 220.4 199.0 88.5 507.9 1,366.5 458.8 443.8 902.6 126.9 118.1 84.4 329.4 1,232.0 479.9 478.5 958.4 140.1 139.4 0.0 279.5 1,237.9 469.4 474.6 944.0 149.1 153.5 0.0 302.6 1,246.6 Other Airports 443.6 418.1 861.7 12.7 18.2 112.9 143.8 1,005.5 495.1 472.2 967.3 10.7 15.7 135.3 161.7 1,129.0 564.0 551.1 1,115.1 7.2 10.8 147.7 165.7 1,280.8 716.8 704.9 1,421.7 8.8 12.0 0.0 20.8 1,442.5 792.3 778.6 1,570.9 11.8 12.4 0.0 24.2 1,595.1 '000 Number Total Passenger Traffic 1,416.5 1,187.9 2,604.4 2,626.5 1,632.4 1,368.3 5,627.2 8,231.6 1,694.9 1,443.2 3,138.1 2,722.5 1,716.5 1,304.9 5,743.9 8,882.0 1,846.6 1,574.1 3,420.7 2,657.2 1,519.6 1,395.7 5,572.5 8,993.2 2,097.2 1,922.4 4,019.6 2,831.3 1,723.1 1,217.8 5,772.3 9,791.9 2,069.0 1,922.2 3,991.2 3,029.2 1,840.8 1,251.3 6,121.3 10,112.5 Source: Kenya Airports Authority * Provisional 1 Passenger traffic inludes residents 13.21. Cargo and Mail Traffic: Table 13.11 presents the volume of commercial cargo and mail traffic handled at the various airports from 2013 to 2017. Volume of commercial cargo traffic handled increased by 16.6 per cent from 249.5 million tonnes in 2016 to 290.8 million tonnes in 2017. Cargo handled at JKIA increased by 18.0 per cent to 273.0 thousand tonnes 205 Economic Survey 2018 while that handled at MIA increased by 20.0 per cent to 3.6 thousand tonnes in 2017. There was a 13.8 per cent increase in the volume of mail traffic handled at all airports from 543.3 tonnes in 2016 to 617.0 tonnes in 2017. The volume of mail traffic handled at JKIA increased by 14.2 per cent to 614.2 tonnes in 2017. Mail traffic handled at MIA dropped from 5.3 tonnes in 2016 to 2.8 tonnes in 2017. Table 13.11: Commercial Cargo and Mail Traffic by Airport, 2013 - 2017 Tonnes Cargo Traffic Year Category Landed..... 2013 2014 2015 2016 2017* JKIA MIA 52,350.8 1,533.5 Mail Traffic Other Airports Total Cargo JKIA MIA Total Mail 8,482.4 62,366.7 506.3 6.6 512.9 15.5 252.1 Loaded..... 191,966.0 2,290.3 5,091.6 199,347.9 236.6 Total 244,316.8 3,823.8 13,574.0 261,714.6 742.9 22.1 765.0 Landed..... 52,336.2 1,833.7 10,472.0 64,641.9 421.2 2.3 423.5 Loaded..... 206,291.3 2,711.1 5,736.4 214,738.8 94.5 7.2 101.7 Total 258,627.5 4,544.8 16,208.4 279,380.7 515.7 9.5 525.2 Landed..... 45,393.3 2,621.1 11,648.4 59,662.8 317.9 2.6 320.5 Loaded..... 197,891.6 2,020.5 3,463.1 203,375.2 269.7 15.7 285.4 Total 243,284.9 4,641.6 15,111.5 263,038.0 587.6 18.3 605.9 Landed..... 32,916.2 1,684.8 11,926.6 46,527.6 247.8 1.8 249.6 Loaded..... 198,344.0 1,295.9 3,321.8 202,961.7 290.2 3.5 293.7 Total 231,260.2 2,980.7 15,248.4 249,489.3 538.0 5.3 543.3 Landed..... 49,443.1 2,404.0 11,631.0 63,478.2 434.7 1.8 436.5 Loaded..... 223,565.7 1,194.6 2,533.2 227,293.6 179.5 1.0 180.5 Total 273,008.8 3,598.6 14,164.2 290,771.8 614.2 2.8 617.0 Source: Kenya Airports Authority * Provisional Aircraft 13.22. Details on aircraft movements by type from 2013 to 2017 are shown in Table 13.12. Movements Overall, aircraft movements increased marginally from 344,571 in 2016 to 354,176 in 2017. Total landings increased by 1.4 per cent to 150,960 while total take-offs increased by 0.9 per cent to 150,368 in 2017. The number of over-flights however, increased by 13.1 per cent from 46,739 in 2016 to 52,848 in 2017. 13.23. Total domestic landings and take-offs increased by 1.5 per cent to 207,831 in 2017. Domestic landings increased by 1.7 per cent from 102,186 in 2016 to 103,922 in 2017. Similarly, the number of domestic take-offs increased by 1.3 per cent to 103,909 in 2017. Total international landings and take-offs rose marginally from 93,029 in 2016 to 93,497 in 2017. International landings increased from 46,685 in 2016 to 47,038 in 2017, while international take-offs increased from 46,344 to 46,459 during the same period. The share of domestic aircraft movements to total movements declined to 58.7 per cent in 2017 from 59.4 per cent recorded in 2016 while the share of international aircraft movements was 26.4 per cent during the review period. The share of over-flights however increased to 14.9 per cent in 2017 from 13.6 per cent recorded in 2016. 206 Chapter 13: Transport and Storage Table 13.12: Aircraft Movements by Type, 2013 - 2017 Number Type Domestic Movement 2015 2016 2017* 87,457 89,820 89,611 102,186 103,922 Take-offs.......... 83,484 86,870 89,872 102,617 103,909 170,941 176,690 179,483 204,803 207,831 Landings.......... 42,935 45,602 43,689 46,685 47,038 Take-offs.......... 45,528 47,893 43,061 46,344 46,459 88,463 93,495 86,750 93,029 93,497 Landings.......... 130,392 135,422 133,300 148,871 150,960 Take-offs.......... 129,012 134,763 132,933 148,961 150,368 Sub-Total 259,404 270,185 266,233 297,832 301,328 36,290 36,941 38,788 46,739 52,848 295,694 307,126 305,021 344,571 354,176 Total Total 2014 Landings.......... Total International 2013 Over-flights...... Grand Total Source: Kenya Civil Aviation Authority * Provisional Licensed 13.24. Overall, the number of active licensed air operators decreased by 14.5 per cent from 339 Air in 2016 to 290 in 2017 as shown in Table 13.13. The decline was reported for operators in all Operators categories except those engaged in domestic scheduled services and aerial works. Domestic non-scheduled operators decreased by 12.4 per cent and accounted for 48.6 per cent of the total licensed air operators in 2017. The number of tour charter operators dropped from 21 in 2016 to 5 in 2017. Other declines were recorded for international non-scheduled and scheduled licensed air operators at 25.0 and 3.8 per cent, respectively. The general decline in active licensed operators is partly attributed to non-renewal of licenses. Table 13.13: Licensed Air Operators, 2013 – 2017 Number Operator 2013 2014 2015 2016 2017* Domestic scheduled............................. 38 33 36 38 39 Domestic non-scheduled..................... 173 146 152 161 141 International scheduled....................... 21 21 26 26 25 International non-scheduled............... 23 22 22 20 15 Inclusive tour charters.......................... 30 22 21 21 5 Aerial work.......................................... 38 36 40 39 44 Flying instructions.............................. 28 29 29 30 19 4 5 4 2 313 331 339 290 Self fly hire........................................... Total 351 Source: Kenya Civil Aviation Authority * Provisional 207 Economic Survey 2018 Selected Aviation Industry Indicators 13.25. Selected aviation industry indicators from 2013 to 2017 are presented in Table 13.14. The number of aviation personnel licenses increased by 5.7 per cent from 9,059 in 2016 to 9,577 in 2017. During the same period, the cabin crew member certificates increased by 7.6 per cent to 2,090, while the number of student pilot licenses increased by 6.6 per cent to 2,710. In the same period, the number of valid operational licenses decreased slightly from 1,279 in 2016 to 1,263 in 2017. The number of aircrafts with valid Certificate of Air Worthiness reduced to 749 and accounted for 59.3 per cent of the total operational licenses in 2017. On the other hand, the number of civil aviation inspectors and air traffic controllers increased by 7.1 per cent from 240 to 257 during the review period. The highest growth was recorded for air traffic controllers which increased from 159 in 2016 to 177 in 2017. 13.26. The number of aerodromes increased from 475 in 2016 to 491 in 2017 mainly due to the increase in the number of air strips during the review period. Heliports and helipads increased from 14 in 2016 to 20 in 2017 while the number of air strips increased to 440 and accounted for 89.6 per cent of the aerodromes in the review period. This development is due to efforts by the Government to ensure that every County is served by a functional air strip. Table 13.14: Selected Aviation Industry Indicators, 2013 – 2017 2013 Aviation Personnel Licenses Air Transport Pilot Licence (ATPL)…………………….. 888 Commercial Pilot Licence (CPL)………………………… 1,244 Private Pilot Licence (PPL)……………………………… 969 Student Pilot Licence (SPL)………………………………2,083 Cabin Crew Member Certificate (CMC)………………… 1,631 Aircraft Maintainance Engineers (AMEL)………………. 582 Total 7,397 Valid Operational Licenses Aircraft with Valid Certificate of Air Worthiness (COA)…… 658 Air Operator Certificates (AOCs)………………………… 78 Approved Maintainance Organisations (AMOS)………. 85 Approved Training Organisations (ATOS)…………….. 5 Flight Dispatcher Licence………………………………… 91 Scheduled Airlines……………………………………….. 76 Total 993 Aerodrome Category International-Class A……………………………………. 8 Domestic (Regional)- Class B…………………………. 16 Air strips-Class C……………………………………….. 426 Heliports/Helipads-Class D…………………………….. Total 450 CAA Inspectors and Air Traffic Controllers AirTraffic Controllers (ATCOs)…………………………. 172 Air Worthiness Inspectors……………………………… 16 Flight Operations………………………………………… 11 Personnel Licensing…………………………………….. 8 Others…………………………………………………….. 27 Total 234 Source: Kenya Civil Aviation Authority * Provisional 208 2014 2015 2016 Number 2017* 928 1,394 1,070 2,189 1,814 604 7,999 975 1,517 1,276 2,580 1,906 618 8,872 1,062 1,563 1,255 2,543 1,942 694 9,059 1,116 1,607 1,316 2,710 2,090 738 9,577 705 78 118 19 127 76 1,123 751 70 122 19 177 77 1,216 763 70 139 22 208 77 1,279 749 87 143 19 186 79 1,263 8 23 430 6 467 8 23 430 6 467 8 23 430 14 475 8 23 440 20 491 170 18 11 8 26 233 165 21 15 8 26 235 159 27 20 9 25 240 177 24 21 10 25 257 Chapter 13: Transport and Storage Postal 13.27. Details on the performance of postal services for the period 2013 to 2017 are presented Services in Table 13.15. There was a 2.6 per cent increase in the number of post offices from 623 in 2016 to 639 in 2017. This growth is attributed to opening of new postal outlets in some universities and other areas. The number of licensed courier operators rose by 3.9 per cent from 179 in 2016 to 186 in 2017. Similarly, the number of private courier operator outlets increased by 2.2 per cent from 976 in 2016 to 997 in 2017. During the same period, Expedited Mail Service Items (EMS) handled declined by 1.4 per cent from 1,977 thousand to 1,950 thousand. 13.28. Total registered and insured items posted, dropped by 4.3 per cent from 921 thousand in 2016 to 881 thousand in 2017 mainly on account of a 7.1 per cent decrease in the domestic component. The total number of unregistered correspondence handled decreased by 12.9 per cent to 61 million in 2017 partly explained by a 17.2 per cent drop in domestic unregistered correspondence posted. Likewise, parcels handled decreased by 15.0 per cent from 80 thousand in 2016 to 68 thousand in 2017. These declines are attributed to competition by other players. International parcels handled almost halved from 27 million registered in 2016 to 14 million in 2017. The total number of money orders issued is estimated to decrease by 18.7 per cent from 870 thousand in 2016 to 707 thousand in 2017. This is partly attributed to competition with mobile money transfer services which has negatively affected the use of postal financial services. Table 13.15: Postal Services, 2013 – 2017 Item Unit 2013 2014 2015 2016 2017* 623 623 639 Private Courier Operator Outlets.. .. .. ..……………………………………………. No. 707 2,048 2,117 976 997 Licensed Courier Operators.. .. .. .. .. .. .. ..……………………………………………. No. 214 230 241 179 186 Post Offices.. .. .. .. .. .. ……………………………………………. No. 622 622 Total Private Letter Boxes: Installed .. .. ..……………………………………………. '000 432 432 432 422 444 Rented.. .. ..……………………………………………. '000 383 380 382 385 365 Private Bags Rented.. .. .. .. ……………………………………………. No. 846 846 846 845 846 1,801 1,840 1,977 1,950 Accepted .. .. .. .. .. ……………………………………………. '000 772 933 916 990 1,000 Delivered .. .. .. .. .. ……………………………………………. '000 711 868 924 987 950 Total Registered and Insured Items Posted:……………………………………………. '000 1,005 1,001 812 921 881 Total EMS Items Handled: '000 1,483 Domestic……………………………………………. '000 International……………………………………………. '000 924 914 718 802 745 81 87 94 119 136 70 61 Unregistered correspondence handled :……………………………………………. Millions 68 69 73 Domestic .. .. .. .. .. ……………………………………………. Millions 63 64 67 64 53 5 6 6 8 48 49 80 68 Domestic - Posted.. .. .. .. .. ……………………………………………. '000 18 26 12 53 54 International - Posted .. .. .. .. .. ……………………………………………. '000 18 22 17 27 14 Money Orders Issued ……………………………………………. '000 574 1,339 1,221 870 707 Domestic (IFS) .. .. .. .. .. ……………………………………………. '000 501 500 453 439 420 PostaPay……………………………………………. '000 839 768 431 287 '000 0.2 Inter-state (IFS) .. .. .. .. .. ……………………………………………. 0.2 0.2 0.2 0.2 International .. .. .. .. .. ……………………………………………. Millions 5 Parcels handled : ……………………………………………. '000 36 : Source: Postal Corporation of Kenya/Communication Authority of Kenya *Provisional IFS - International Financial Services 209 73 Economic Survey 2018 Storage Container Freight Stations 13.29. The container freight stations provide additional storage space for containerized cargo at the Port of Mombasa. During the review period, the number of Container Freight Stations (CFS) remained constant at 15 stations with a capacity of 42,784 Twenty-foot Equivalent Units (TEUs). Developments in the Transport and Storage Sector Road Transport 13.30. During the review period, the Nairobi Metropolitan Area Transport Authority (NAMATA) was created to deal with traffic congestion within the Nairobi metropolitan area. NAMATA is a policy intervention that provides a comprehensive and dynamic platform for addressing the challenges in the transport sector that have affected the Metropolitan Area. The Authority is expected to formulate a sustainable integrated public transport strategy based on the development of a sustainable urban mobility plan. This will form a basis for orderly and structured development of the proposed Metropolitan Area mass-transit system, which incorporates both bus rapid-transit and commuter rail. Railway Transport 13.31. The construction of commuter railway stations, aimed at improving the Nairobi Commuter Rail Services System was initiated in 2017. By the end of the review period, Ruiru, Kikuyu, Kahawa, Dandora and Githurai, Embakasi village, Athi River, Donholm, Mwiki and Pipeline stations were at different stages of completion. 13.32. The Phase I of the SGR project, which entailed the construction of the Mombasa – Nairobi section comprising 472 kilometres, was completed in 2017. Passenger service of the Standard Gauge Railway (SGR) was launched on 31st May 2017 and began commercial passenger operations on 1st June 2017. In addition, Kenya Railways Corporation carried out cargo evacuation test operations on the SGR from Mombasa to Nairobi Inland Container Depot (NICD) in preparation for commercial freight operations. Maritime Transport 13.33. During the review period, various programmes were initiated to improve maritime transport and to make Mombasa a regional port of choice. This includes development of Berth 20 and 21 and upgrading of the Nairobi Inland Container Depot (NICD). Further, to ease congestion at the Likoni Ferry crossing point, two ferries with capacity of 1,364 passengers and 60 motor vehicles were procured during the review period. In addition, the construction of three berths in Lamu Port was commenced. Air Transport 13.34. The sub-sector continued with the expansion and modernization of aviation facilities to enhance handling capacity of the airports and to support domestic air transport in the country. The aim of the Government is to ensure that every County is served by a functional air strip. The programme on the modernisation and expansion of air strips aims at providing air connectivity across the country and to support domestic air travel. Homa Bay (Kabunde), Suneka, Nanyuki, Voi (Ikanga) and Tseikuru air strips were under construction in 2017. 210 Chapter 13: Transport and Storage 13.35. During the period under review, improved levels of safety and security enabled Kenya to be granted Federal American Administration (FAA) – Inter Air Security Association (IASA) category-1 by the United States of America which allows direct flight between the two countries. Kenya initiated the process of starting direct flights to the US with Kenya Airways scheduled to commence flights in October 2018. In an effort to expand route network for the Country’s designated airlines, 8 new Bilateral Air Services Agreements (BASAs) were negotiated and concluded while 16 existing BASAs were reviewed during the same period. 211 Economic Survey 2018 Information and Communication Technology Overview Chapter 14 T he expansion of the digital economy has contributed to economic growth in recent years and has transformed society as a whole. It has spurred the economy by offering services through online platforms in; the provision of government services, business and e-commerce, research and transfer of knowledge, among others. The Government has continued to invest in the National Optic Fibre Backbone Infrastructure (NOFBI) across the country, with the aim of increasing cost-effective access to internet services. These developments led to the value of ICT output increasing by 10.9 per cent to KSh 345.1 billion in 2017. 14.2. In the period under review, mobile penetration measured by subscriptions improved to 91.9 per 100 inhabitants from 85.9 in 2016. Prepaid subscriptions per 100 inhabitants increased to 88.9 in 2017 from 82.8 in 2016. Mobile commerce transactions grew by 85.5 per cent from KSh 1.8 trillion in 2016 to KSh 3.2 trillion in 2017. Total mobile money transfers increased by 8.4 per cent from KSh 3,356 billion in 2016 to KSh 3,638 billion in 2017. 14.3. Volume of domestic traffic in minutes increased from 42.2 billion in 2016 to 44.1 billion in 2017. Similarly, the number of domestic short messaging services (SMS) sent increased by 41.9 per cent to 65.7 billion in 2017 from 46.3 billion in 2016. International telephone traffic decreased by 11.7 per cent from 1.2 billion in 2016 to 1.1 billion in 2017. The total wired and wireless internet subscriptions increased by 25.0 per cent to 33.4 million in 2017 from 26.7 million in 2016. Total digital subscriptions increased by 12.4 per cent to 4.9 million in 2017 from 4.4 million in 2016. The average price of a one minute mobile to mobile call declined marginally from KSh 3.08 in 2016 to KSh 3.00 in 2017. Similarly, international calls through mobile phone to countries operating within the One Area Network had lower charges compared to those operating outside the framework which charged higher tariffs. Value of 14.4. Details on value of output, intermediate consumption and value added for the ICT sector Output at current prices are presented in Table 14.1. The value of ICT output increased by 10.9 per cent from KSh 311.1 billion in 2016 to KSh 345.1 billion in 2017. Intermediate consumption increased by 13.6 per cent to KSh 235.7 billion in 2017. Consequently, ICT value added increased by 5.4 per cent from KSh 103.8 billion in 2016 to KSh 109.4 billion in 2017. Table 14.1: Output, Intermediate Consumption and Value Added of the Information and Communication Sector, 2013-2017 KSh Million Year 2013 2014 2015 2016 2017 Value of Output 228,405.0 259,000.0 280,434.0 311,221.4 345,067.6 Intermediate Consumption 159,928.0 193,408.0 219,948.8 207,414.4 235,679.3 Value Added 68,478.0 65,592.0 60,485.3 103,806.9 109,388.3 *Provisional 1 212 Chapter 14: Information Communication,and Technology Fixed Telephone and Mobile Network Services 4.5. Analysis on the performance of fixed and mobile network services for the period 2013 to 2017 are presented in Table 14.2. Fixed line capacity decreased by 19.6 per cent to 144 thousand in 2017 from 179 thousand in 2016. The decline was mainly attributed to low usage of wireline and wireless connections. The total connections for fixed telephone continued to decline further from 72.8 thousand in 2016, to 69.9 thousand in 2017. 14.6. Mobile subscriptions increased by 9.8 per cent from 39.0 million in 2016 to 42.8 million in 2017, with pre-paid subscriptions accounting for 96.7 per cent of the total mobile subscriptions. The Mobile Numbers Ported (MNPs) increased significantly by 95.8 per cent to 2,575 in 2017, a reversal from the decline of 67.8 per cent recorded in 2016. The growth is mainly attributed to the revision of the mobile number portability service level agreements amongst the Mobile Network Operators (MNOs) and Mobile Virtual Network Operator (MVNOs), facilitated by Communications Authority of Kenya. 14.7. Total transfers through mobile money increased by 8.4 per cent from KSh 3,356 billion in 2016 to KSh 3,638 billion in 2017. Mobile money subscriptions declined by 6.2 per cent from 32.0 million in 2016 to 30.0 million in 2017. The value of mobile commerce transactions expanded by 85.5 per cent from KSh 1.8 trillion in 2016 to KSh 3.2 trillion in 2017. The growth was spurred by customer’s preference for mobile commerce and the availability of these services across the country. Table 14.2: Fixed and Mobile Network Services, 2013-2017 2013 2014 2015 2016 2017* 408 340 75 179 144 206.0 180.0 85.0 72.8 69.9 57.0 48.0 85.0 72.4 69.6 149.0 132.0 0.0 0.4 0.3 Fixed Telephony Fixed line Capacity ('000)1……………… Total Connections ('000)…………………………….. Wireline Connections ……………………………… 1 Wireless Connections ………………………………… Mobile Telephony Mobile Telephone Capacity ('000)……………………. 55,077 65,077 62,800 71,600 70,000 Connections ('000)……………………………………… 31,309 33,633 37,716 38,982 42,815 Post Paid Subscriptions ('000)…..……………………. 560.5 854.3 1,009.6 1,413.4 1,414.5 Pre Paid Subscriptions ('000)……………...……………….. 30,749.0 32,778.0 36,706.0 37,569.0 41,401.0 1,303 2,340 2,207 1,315 2,575 Mobile Money Transfer Agents …………………………. 93,689 123,703 143,946 165,908 182,472 Mobile Money Transfer Service Subscribers ('000)……. 26,016 26,023 26,753 31,997 30,005 1,033 1,269 1,347 1,536 2,194 Mobile Numbers Ported2 Mobile Money Total Deposits through Agents (KSh Billion) Total Transfer from Subscriber to Subscriber (KSh Billion) .. .. 1,339 1,818 2,204 Total Transfers, (KSh Billion)…………………………… 1,902 2,372 2,816 3,356 3,638 Number of Total Transactions in Million 732.6 911.3 1,114.2 1,526.2 1,543.2 Value of Mobile Commerce Transactions (KSh Billion) .. .. .. 1,750 3,246 Number of Mobile Commerce Transactions ('000) .. .. .. 928, 174 Source: Communication Authority of Kenya/ Central Bank of Kenya * Provisional 1 Includes Local Loop Operators, the wireless connections were decommissioned end of 2015 and recommissioned in 2016 2 Mobile Number Portability enables mobile users to retain their telephone numbers when migrating from one network to another .. Data not available 213 1,609,297 Economic Survey 2018 Telephone 14.8. Telephone call traffic for the period 2013 to 2017 is presented in Table 14.3. In the year call traffic under review, international telephone traffic declined from 1,196.5 million minutes in 2016 to 1,056.7 million minutes. The decline may be attributed to preference for Over the Top (OTT) services e.g Whatsapp, Skype etc., and social media. International outgoing telephone traffic decreased by 6.4 per cent from 482.5 million minutes in 2016 to 453.6 million minutes in 2017. Similarly, international incoming telephone traffic decreased by 15.5 per cent from 714 million minutes in 2016 to 603 million minutes in 2017. In 2017, incoming traffic from fixed telephone grew by 7.3 per cent to 9.3 million minutes after recording declines in the last three years. The increase was partly attributed to low-priced call rates from the originating countries. During the review period, the international outgoing and incoming mobile traffic declined by 5.6 per cent and 15.8 per cent to 446.8 million minutes and 593.8 million minutes, respectively, Table 14.3: Telephone Call Traffic, 2013-2017 2013 International Calls Total International Outgoing Telephone Traffic International Outgoing Mobile International Outgoing Fixed Total International Incoming Telephone Traffic International Incoming Mobile International Incoming Fixed Total International Telephone Traffic Roaming Roaming by Home Subscribers Abroad (Outbound Roaming) Roaming by Foreign Subscribers in Kenya (Inbound Roaming) Total Roaming Domestic Calls Total Fixed to Fixed Telephone Traffic (a+b) Fixed wireless to Fixed wireless (a) Fixed to Fixed telephone (b) Fixed to Mobile telephone Mobile to Mobile telephone Mobile to Fixed telephone Total Domestic Traffic International Outgoing Fixed VoIP1 2014 2015 2016 Minutes '000 2017* 546,558 530,823 15,736 461,754 446,591 15,163 544,560 534,433 10,127 482,482 473,292 9,190 453,610 446,760 6,850 676,267 664,035 12,232 1,222,825 591,022 578,920 12,102 1,052,776 628,403 619,395 9,008 1,172,963 713,969 705,299 8,670 1,196,451 603,110 593,810 9,300 1,056,720 48,011 38,251 91,171 143,529 193,622 41,382 89,393 48,060 86,311 103,612 194,783 122,023 265,552 79,610 273,232 28,560 18,892 9,668 101,722 29,758,949 52,334 29,960,246 8,101 23,298 21,622 1,676 117,053 30,473,694 66,564 30,680,916 7,335 5,252 3,336 1,916 47,702 39,068,816 75,394 39,197,164 4,785 2,513 877 1,636 41,394 42,070,692 63,240 42,177,839 3,938 2,597 1,314 1,283 43,353 43,944,431 88,787 44,079,168 2,865 Source: Communication Authority of Kenya *Provisional 1 Voice Over Internet Protocol (VoIP) 14.9. During the review period, the total roaming traffic recorded a decelerated growth of 2.9 per cent in 2017 compared to a growth of 36.3 per cent registered in 2016. The slow growth was partly attributed to low number of large international conferences held in the country during the review period. Outbound roaming traffic rose by 34.9 per cent to 193.6 million minutes in 2017 compared to a growth of 57.4 per cent recorded in 2016. 14.10. Total domestic traffic increased from 42.2 billion minutes in 2016 to 44.1 billion minutes in 2017. Mobile phone traffic, which accounted for 99.7 per cent of the total domestic traffic, increased by 4.5 per cent to 43.9 billion minutes in 2017. Fixed wireless to fixed wireless registered a higher growth of 49.8 per cent, followed by mobile to fixed traffic which recorded a 40.4 per cent growth in 2017. The increase of traffic from fixed wireless to fixed wireless was 214 Chapter 14: Information Communication,and Technology partly attributed to discounted rates. Traffic from fixed to fixed telephone declined by 21.6 per cent to 1.3 billion minutes in the review period. 14.11. The international outgoing fixed Voice over Internet Protocol (VoIP) traffic continued to decline from 3.9 million minutes in 2016 to 2.9 million minutes in 2017. This was mainly due to a rise in the uptake of instant messaging applications and social media. The instant messaging application have incorporated VoIP capabilities on internet enabled phones. Message 14.12. Information on message service traffic is presented in Table 14.4. The total number of Services messages sent via Short Messaging Services (SMS) has maintained an upward trend despite Traffic the availability of instant messaging applications and use of social media. Total SMSs sent increased by 41.8 per cent from 46.3 billion in 2016 to 65.7 billion in 2017. The number of SMSs sent to the rest of the world in 2017 increased marginally as shown in Figure 14.1. Similarly, SMSs received from the rest of the world increased from 38.5 million in 2016 to 41.4 million in 2017. The growth was partly attributed to availability of services such as SMS tariffs, one-bundle tariffs and provision of bulk SMS services. Table 14.4: Message Service Traffic, 2013 -2017 Number '000 Messages Multimedia Messaging Service (MMS)………. 2013 2014 2015 9,761 12,011 13,686 Total SMS sent …………………………….. 19,837,856 27,416,127 Domestic…………………………………………… 19,788,436 27,368,995 International ………………………………49,420 International SMS received ………… 100,670 2017* .. .. 28,320,513 46,342,335 65,720,297 28,281,231 46,305,545 65,682,804 47,132 39,282 36,790 37,493 161,763 131,076 38,478 41,390 Source: Communication Authority of Kenya * Provisional .. Data not available Figure 14.1: International SMS Sent and Received Traffic, 2013-2017 215 2016 Economic Survey 2018 Internet 14.13. The number of Internet Service Providers (ISPs) decreased from 242 in 2016 to 219 Services in 2017, as shown in Table 14.5. The decline was partly attributed to non-renewal of licenses by some firms in 2017. The total wireless internet subscriptions increased by 24.9 per cent to 33.2 million subscribers in 2017. Similarly, total fixed wired internet subscriptions increased by 59.2 per cent to 198,472 in 2017 from 124,637 in 2016. Fixed fiber optic subscriptions accounted for 50.2 per cent of the total fixed wired subscriptions in the year under review. This was partly attributed to the ongoing laying of fiber across the country which resulted in increased bandwidth capacity. Table 14.5: Internet Providers and Subscriptions, 2013-2017 Number 2013 1 Licensed Internet Services Providers (ISPs) ………………. 2014 2015 2016 2017* 171 177 221 242 219 Total Wireless Internet Subscriptions………………. 13,107,459 16,357,239 23,814,546 26,559,184 33,166,725 Terrestrial Mobile Data……………………………. 13,090,348 16,338,990 23,794,550 26,528,876 33,076,894 Terrestrial Wireless Data…………………………… 16,429 17,537 19,507 29,724 89,062 Satellite Data………………………………………. 682 712 489 584 769 Total Fixed (Wired) Internet Subscriptions………………79,509 95,780 115,111 124,637 198,472 12,014 14,512 Fixed Digital Subscriber Line (DSL) Data…………………………………….. 3,732 2,483 1,953 2 Fixed Fiber Optic Data ……………………………….. 67,470 81,243 111,354 36,015 99,643 25 25 25 86,139 96,876 Total Fixed and Wireless Internet Subscriptions…………. 13,186,968 16,453,019 23,929,657 26,683,821 33,365,197 Fixed Cable Modem (Dial Up) Data 2……………………. Source: Communication Authority of Kenya * Provisional 1 Also includes Application Service Providers (ASPs) 2 Definition was changed in 2016 Broadband 14.14. The analysis of broadband services for the period under review is presented in Table Services 14.6. Bandwidth capacity increased for the third year in a row to 3.2 million Megabytes per second (Mbps) mainly due to the laying of the fiber optic cables in the country. The undersea bandwidth capacity increased by 56.9 per cent while satellite bandwidth increased by 18.2 per cent in 2017. Total bandwidth utilized stood at 916,735 Mbps in 2017 compared to 860,570 Mbps in 2016. Preference for fixed broadband speeds of 2 Mbps or more compared to speeds of less than 2 Mbps was observed in the review period. 14.15. Total fixed wired broadband increased by 55.2 per cent from 127,877 in 2016 to 198,472 in 2017, while the total wireless broadband increased by 35.2 per cent from 12.6 million in 2016 to 17.0 million in 2017. The increase was mainly attributed to the availability of affordable high internet speeds. Demand for mobile broadband increased by 34.9 per cent to 16.9 million subscribers in 2017. The Global System for Mobile Communication (GSM) mobile phone subscriptions increased by 42.9 per cent to 15.9 million, while GSM modem subscriptions decreased by 28.8 per cent to 992,499 in 2017. The decline of GSM modem subscriptions was partly attributed to availability of internet enabled phones which offer similar services to the GSM modem. 216 Chapter 14: Information Communication,and Technology Table 14.6: Broadband Services, 2013-2017 2013 Capacity in Megabits Per Second (Mbps) Undersea Bandwidth Capacity………………. 862,210 Satellite Bandwidth Capacity………………….. 264 1. Total Available Bandwidth Capacity……………… 862,474 Utilized Bandwidth in Mbps Undersea Bandwidth……………….. 365,330 Satellite Bandwidth ……… 83 2. Total Utilized Bandwidth………………… 365,413 Broadband Subscriptions Copper line (Dial-up, DSL and xDSL) … 5,967 Fiber to the Home …………………………… 42,958 Fiber to the Office …………………………… 20,215 Cable modem…………………………………. .. 3.Total Fixed (Wired)- Broadband …………… 69,140 474 4. Satellite broadband…………………… 15,367 5. Terrestrial fixed wireless broadband…………… 6. Total Active mobile broadband (a+b+c) 2,395,836 GSM mobile phones (a) ………………… 1,755,116 GSM modems (b) ………………………… 586,484 CDMA 2000 phones** (c) ………………… 54,236 7. Total wireless broadband (4+5+6) 2,411,677 8. Total fixed and wireless broadband (3+7) 2,480,817 Fixed Broadband by speed 256 Kbps ………………………………………….. 482 512 Kbps ………………………………………….. 10,501 1 Mbps ………………………………………….. 51,194 2 Mbps ………………………………………….. 8,791 > 2 Mbps ………………………………………….. 12,868 2014 2015 2016 2017* 847,250 273 847,523 1,550,270 498 1,550,768 2,028,270 473 2,028,743 3,182,592 559 3,183,151 498,015 106 498,121 854,300 251 854,551 860,300 270 860,570 916,287 448 916,735 3,388 59,986 21,257 .. 84,631 495 16,687 4,141,498 3,417,949 657,902 65,647 4,158,680 4,243,311 441 81,532 29,156 .. 111,129 481 19,507 7,112,991 6,344,226 768,765 0 7,132,979 7,244,108 2,483 15,853 23,402 86,139 127,877 445 29,556 12,546,559 11,151,664 1,394,895 0 12,576,560 12,704,437 1,953 63,276 36,367 96,876 198,472 769 82,362 16,926,599 15,934,100 992,499 0 17,009,730 17,208,202 2,272 10,527 62,146 3,810 9,567 2,500 3,500 18,000 4,000 69,000 862 4,808 22,702 33,574 91,046 854 2,927 14,459 96,391 173,672 Source: Communication Authority of Kenya *Provisional `+ ** Revised CDMA 2000 phones were decommissioned in 2015 .. Data not available Tariffs 14.16. Table 14.7 presents information on fixed and mobile charges for the period 2013 to 2017. The cost of installing fixed telephone increased by 17.0 per cent from KSh 4,699 in 2016 to KSh 5,496 in 2017. The installation fee for copper solutions and fiber solutions to buildings was KSh 7,000 while that of microwave solutions was KSh 80,000. The high cost of installation for microwave solution is on account of spectrum fees. The average price of a one minute mobile to mobile call declined marginally from KSh 3.08 in 2016 to KSh 3.00 in 2017. 217 Economic Survey 2018 Table 14.7: Fixed and Mobile Charges, 2013-2017 2013 2014 2015 Fixed Charges Installation Fees Business and Residential Fixed Telephone Service………………………………………………. 3,394.00 3,394.00 3,394.00 Copper Solutions……………………………………………… .. .. .. Microwave Solutions…………………………………………. .. .. .. Fiber Solutions………………………………………………… .. .. .. Monthly Susbcription for Residential Telephone Service………………………………………… 580.00 580.00 580.00 Monthly Susbcription for Business Telephone Service……….. 580.00 580.00 580.00 Average price of a one minute Fixed to Fixed local call……………… 4.50 Average price of a one minute Fixed to Mobile local call……………. 9.00 Mobile Charges Lowest recharge card value…………………………………. 5.00 Average price of a one minute Mobile to Mobile local call………….. 3.86 Average price of a one minute Mobile to Fixed local call…………….. 3.25 Average price of a message via SMS…………………………………………1.50 2016 KSh 2017* 4,699.00 .. .. .. 580.00 1,000.00 5,496.00 7,000.00 80,000.00 7,000.00 580.00 580.00 4.50 9.00 3.00 9.00 3.00 9.00 5.00 8.00 5.00 3.10 3.25 1.00 5.00 3.08 3.25 1.25 5.00 3.08 3.25 1.25 5.00 3.00 3.21 1.06 Source: Communication Authority of Kenya * Provisional Note: All averages are unweighted .. Data not available 14.17. The average prices of a one-minute call originating from a mobile phone in Kenya to other countries for the period 2013 to 2017 are presented in Table 14.8. Calls to EAC countries, under the One Network Area (ONA) framework towards harmonizing call charges, were generally cheaper compared to others. In 2017, calling charges in Uganda, Rwanda and South Sudan, was KSh 7.50 per minute compared to KSh 56.25 and KSh 23.75 charged in Burundi and Tanzania, respectively. This is on account of Burundi and Tanzania not operating within the ONA framework. 218 Chapter 14: Information Communication,and Technology Table 14.8 Average International Call Rates from Mobile Phone, 2013- 2017 KSh per Minute Countries 2013 2014 2015 2016 2017* 9.50 7.50 7.50 Uganda.............................................. 20.25 20.25 Rwanda.............................................. 23.25 23.25 9.50 7.50 7.50 Burundi.............................................. 25.75 25.75 13.25 33.75 56.25 Tanzania............................................ 23.25 23.25 16.25 23.75 23.75 Ethiopia............................................. 32.50 32.50 22.50 25.00 25.00 Somalia.............................................. 32.50 32.50 20.00 40.00 45.00 South Sudan....................................... 50.00 50.00 17.50 12.50 7.50 South Africa....................................... 19.00 19.00 13.50 13.50 13.50 Other African Countries.................... 32.50 32.50 22.50 22.50 22.50 USA................................................... 3.62 3.62 3.00 3.50 3.75 Germany........................................... 28.75 28.75 28.75 27.50 27.50 Switzerland........................................ 33.75 33.75 28.75 37.50 37.50 Italy................................................... 28.75 28.75 28.75 37.50 37.50 France ............................................... 28.75 28.75 28.75 27.50 27.50 United Kingdom............................... 19.00 19.00 13.50 13.50 13.50 Other European Countries................ 33.75 33.75 28.75 28.75 20.00 India .................................................. 3.62 3.62 3.00 3.50 3.75 China ................................................ 3.62 3.62 3.00 3.50 3.75 Japan.................................................. 33.75 33.75 28.75 30.00 30.00 Source: Communication Authority of Kenya Domains 14.18. The number of domains increased by 18.1 per cent from 62,636 in 2016 to 73,972 in 2017, as shown in Table 14.9. Domains under information content, mobile content and those used in network devices more than doubled to 374, 126 and 466 in 2017, respectively. This was partly attributed to enhanced uptake and use of sub-domain names as a result of awareness on the benefits. 219 Economic Survey 2018 Table 14.9 Registered Domains, 2013-2017 Number 2013 2014 2016 2017* 737 792 580 726 768 27,643 35,274 46,541 58,165 68,430 339 314 290 363 414 Information e.g. blogs………………………… 98 105 115 144 374 .me.ke Personal websites & email………………………. 413 650 260 326 386 .mobi.ke Mobile content………………………………… 37 48 35 44 126 .ne.ke Network Devices………………………………….. 46 .or.ke Non profit making organisations or NGO's….. .sc.ke Lower & middle institutions of learning………… Subdomain Users .ac.ke Institutions of Higher Education……………… .co.ke Companies…………………………………. .go.ke Government entities………………………. .info.ke TOTAL ………………………….. Number of registrars Domain renewal fee Average annual fee to operate domain (Domain registration fee)in KSh 2015 + 65 140 175 466 1,159 1,190 1,485 1,860 1,981 113 95 665 833 1,027 30,585 38,533 50,111 62,636 73,972 180 210 270 367 372 2,320 2,320 580 580 1,160 2,300 2,300 650 650 650 Source: Kenya Network Information Centre * Provisional + Media Frequencies and Mobile Transceivers Revised 14.19. Information on media frequencies and mobile transceivers for the period 2013 to 2017 is presented in Table 14.10. The number of self-provisioning broadcasters and the broadcast signal distributors remained unchanged. The number of homes with proximity to cable TV distribution lines increased by 5.9 per cent to 296,906 in 2017 from 280,429 in 2016. Cable TV subscriptions declined for the first time in the last three years by 16.3 per cent from 95,493 in 2016 to 79,938 in 2017. The decline is partly attributed to availability of other digital platforms such as online streaming and use of digital terrestrial services that may not require monthly subscriptions payments. Digital Terrestrial TV subscriptions increased by 11.0 per cent from 3.9 million in 2016 to 4.3 million in 2017. 14.20. The total number of mobile transceivers grew by 49.3 per cent from 123,380 in 2016 to 184,149 in 2017. The increase was partly attributed to inclusion of the fourth generation (4G) in 2017. The second generation (2G) continued to be the most widely used technology accounting for 74.7 per cent of the total transceivers in 2017. 220 Chapter 14: Information Communication,and Technology Table 14.10: Media Frequencies and Mobile Transceivers, 2013-2017 Number 2013 2014 2015 2016 2017* TV Frequencies…………………… 336 245 302 312 333 Radio FM Frequencies………………….. 553 561 608 687 740 Self-Provisioning Broadcast Signal Distributors 0 0 3 3 3 Broadcast Signal Distributors 2 2 2 2 2 2 2 5 5 5 Digital Distributors Total Digital Signal Distributors TV Stations Analogue TV Stations1 14 19 0 0 0 Digital TV stations 0 36 62 63 89 Total TV Stations 14 55 62 63 89 Number of Households passed by Cable TV .. .. .. 280,429 296,906 Cable TV .. 56,106 81,118 95,493 79,938 Direct to Home Satellite .. 211,846 250,627 350,626 476,225 Digital Terrestrial Televisions (STBs) .. 1,041,656 3,712,548 3,905,656 4,334,166 Internet-Protocl TV (IPTV) .. Digital Subscriptions Total Digital Subscriptions 5 18 0 1,309,608 .. 4,044,293 .. 4,351,780 4,890,347 80 85 89 110 109 50 50 50 63 67 135 139 173 176 Radio Stations English and Kiswahili + All Vernacular Languages + Total Radio Stations 130 Mobile 2G 80,894 84,631 89,994 92,562 137,560 Transceivers by Technology 3G 12,775 15,381 19,300 30,818 42,716 .. .. .. .. 4G Total 93,669 100,012 109,294 123,380 3,873 184,149 Source: Communication Authority of Kenya * Provisional + Revised .. Data not available 1 Analogue TV stations closed in 2015 STBs- Set Top Boxes Employment, 14.21. Table 15.11 presents information on employment, investment and revenue on Investment and telecommunication operators and Internet Service Providers (ISPs) for the period 2013 to Revenue 2017. Employment by telecommunication operators increased marginally from 6,178 in 2016 to 6,907 in 2017. Internet service providers increased by 583 employees to 9,031 in 2017. 14.22. The value of investment by the telecommunication operators and ISPs decreased by 25.9 per cent and 31.8 per cent to KSh 38.7 billion and KSh 1.5 billion, respectively, in 2017. The annual revenue earned by telecommunication operators increased by 12.2 per cent to KSh 241.0 billion in 2017 from KSh 214.8 billion in 2016. 221 Economic Survey 2018 Table 14.11: Employment, Investment and Revenue, 2013-2017 Type of Operators 2013 1 2014 2015 2016 2017* Telecommunication Operators 5,617 6,439 6,147 6,178 6,907 Internet Service Providers (ISPs)2+ 7,076 6,237 7,817 8,448 9,031 Employment (Number) 1 Annual Investment in Telecommunication Operators 30.4 32.5 36.2 52.2 38.7 KSh Billion3 ISPs2 3.7 3.4 3.4 2.2 1.5 152.5 173.6 194.5 214.8 241.0 14.6 15.7 17.0 18.6 21.3 1 Annual Revenue in KSh Telecommunication Operators Billion3 2 ISPs * Provisional 1 Include operators offering fixed, mobile and satellite telecommunication actvities 2 Include Application Service Providers (ASPs) 3 As at June + Revised Information 14.23. Table 14.12 presents indicators used for measuring information society. The penetration Society of most ICT indicators have been registering an upward trend in the last five years apart from the fixed telephone lines per 100 inhabitants. The mobile penetration rates for total population increased by 7.0 per cent from 85.9 in 2016 to 91.9 per 100 inhabitants in 2017. The internet penetration rose by 21.8 per cent from 58.8 in 2016 to 71.6 per 100 inhabitants in 2017. The bits per second per capita (Bps/capita) increased from 19,890.40 Bps in 2016 to 20,630.20 Bps in 2017, a reversal from the decline registered in the previous year. 14.24. Mobile and internet penetration for the population of 3 years and above increased by 6.8 per cent from 94.7 in 2016 to 101.1 per 100 inhabitants in 2017. Similarly, fixed and wired broadband penetration rates per 100 inhabitants rose from 30.9 in 2016 to 40.6 in 2017. This increase was partly attributed to the availability of the fiber optic cables across the country. Table 14.12: Key Indicators Measuring Information Society, 2013-2017 Represents Total Population 2013 Fixed telephone lines per 100 inhabitants……………………….. 2014 2015 2016 2017* 0.65 0.52 0.19 0.16 0.15 Mobile-cellular telephone subscriptions per 100 inhabitants 74.92 78.30 85.41 85.93 91.89 Wireless internet subscribers per 100 inhabitants……………….. 31.36 38.10 53.90 58.50 71.20 Internet subscribers per 100 inhabitants (Wireless and Fixed) 31.56 Bits per second per capita (Bps/person)………………………….9,168.22 38.30 12,157.90 54.19 20,292.80 58.82 19,890.40 71.61 20,630.20 Broadband subscriptions per 100 inhabitants (wireless)…………… 5.77 9.68 16.20 27.70 36.50 Broadband subscriptions per 100 inhabitants (Fixed and Wired) 5.94 9.88 16.40 28.00 36.93 62.26 60.57 60.59 70.53 64.40 0.54 0.46 0.21 0.18 0.16 Mobile money subscriptions per 100 inhabitants Represents Population of Three (3) years and above Fixed telephone lines per 100 inhabitants……………………….. Mobile-cellular telephone subscriptions per 100 inhabitants 82.50 86.20 94.20 94.70 101.10 Wireless internet subscribers per 100 inhabitnats……………….. 34.54 41.92 59.48 64.55 78.29 Internet subscribers per 100 inhabitants (Wireless and Fixed) 10.42 Bits per second per capita (Bps/person)…………………………. 10,095.90 42.17 13,386.54 59.77 22,381.20 64.85 21,931.30 78.75 22,689.34 Broadband subscriptions per 100 inhabitants (wireless)…………… 6.35 10.66 17.82 30.57 40.15 Broadband subscriptions per 100 inhabitants (Fixed and Wired) 6.54 10.88 18.10 30.88 40.62 *Provisional 222 Chapter 14: Information Communication,and Technology International 14.25. International trade in ICT equipment based on the Standard International Trade Trade in ICT Classification (SITC) is presented in Table 14.13. During the review period, the value of Equipment ICT exports decreased by 42.7 per cent compared to 6.6 per cent growth recorded in 2016. However, the value of office machine exports increased by 22.0 per cent to KSh 80.3 million in 2017 from KSh 65.8 million in 2016. 14.26. The value of ICT imports increased by 17.4 per cent from KSh 57.0 billion in 2016 to KSh 66.9 billion in 2017. Imports of reception apparatus for radio broadcasting recorded a significant drop of 84.0 per cent to KSh 190.6 million in 2017 from KSh 1.2 billion in 2016. The decline is partly attributed to use of alternative modes of broadcasting. Table 14.13: International Trade in ICT Equipment, 2013-2017 2016 2014 2015 2013 1 65.8 113.3 17.1 24.1 Office machines …………………………………………………………………………………………….. Exports KSh Million 2017* 80.3 231.8 442.1 358.5 330.9 Automatic data processing machines, storage units etc…………………………………………………………………………………………….. 980.3 2 29.2 55.7 76.2 68.9 63.8 Part and accessories …………………………………………………………………………………………….. 251.6 398.0 194.6 294.9 Monitors and projectors and reception apparatus for television 3……………………………………………………………………………………… 72.4 4 10.8 22.1 12.5 8.8 30.5 Reception apparatus for radio broadcasting …………………………………………………………………………………………….. 3.0 7.0 5.9 9.5 5.7 Recording equipments 5…………………………………………………………………………………………….. 6 653.3 1,209.3 1,303.5 528.2 1,122.6 Telecommunications equipment …………………………………………………………………………………………….. Total Imports 2,299.4 1,258.3 2,064.5 2,200.0 1,260.0 2,194.8 1,298.7 1,352.1 804.7 834.1 Office machines 1…………………………………………………………………………………………….. 25,233.2 18,959.4 11,211.7 9,720.0 Automatic data processing machines, storage units etc…………………………………………………………………………………………….. 15,018.8 2 830.0 700.8 682.3 1,034.1 998.9 Part and accessories …………………………………………………………………………………………….. 5,857.3 5,771.0 8,049.7 5,991.5 Monitors and projectors and reception apparatus for television 3……………………………………………………………………………………… 8,621.6 4 190.6 1,190.8 118.4 134.9 488.8 Reception apparatus for radio broadcasting …………………………………………………………………………………………….. 572.3 344.0 462.3 592.2 370.0 Recording equipments 5…………………………………………………………………………………………….. 6 28,693.9 32,014.7 29,444.0 23,622.2 24,160.0 Telecommunications equipment …………………………………………………………………………………………….. Total 50,714.4 41,677.4 51,320.5 56,958.6 66,892.9 *Provisional 1 2 Electronic calculating machines, cash registers, accounting machines, postage-franking machines, ticket issuing machines, reproducing and displaying For office machines and data processing machines 3 Include Television sets, decoders etc 4 Whether or not combined with sound recording or reproducing apparatus or a clock 5 Sound recording, video recording or reproducing apparatus including or not including a video tuner 6 Such as computer, laptops, networking equipments etc plus their parts and accessories such as telephone sets, microphones,electric sound amplifier sets Television cameras, digital or video cameras recorders, radio or tv transmission apparatus etc 223 Economic Survey 2018 Newspaper Circulation and Online Newspaper Readership 14.27. Circulation of hard copy newspapers continued to decline as shown in Table 14.14. The number of English and Kiswahili daily newspapers reduced by 5.0 per cent and 10.0 per cent, respectively, during the review period. Online readership per day increased by 20.1 per cent from 1,862,943 in 2016 to 2,237,608 in 2017. Table 14.14: Local Daily/Weekly Newspapers in Circulation, 2013 – 2017 Newspapers** 2013 2014 2015 2016 2017* English ………………………..…………………………………. 104,057 102,000 98,548 94,348 89,631 Kiswahili …………………………..…………………………………. 5,900 5,800 5,209 4,401 3,961 English ………………………..…………………………………. 16,794 15,900 14,975 13,741 12,917 Kiswahili …………………………..…………………………………. 1,810 1,900 1,825 1,413 1,272 Daily Newspapers Copies (‘000) Weekly Newspapers Copies (‘000) Average online visitors per day 793,046 1,025,043 1,575,043 1,862,943 2,237,608 Source: Various Media Houses * Provisional ** Excludes free newspaper copies 224 Chapter 15: Education and Training Education and Training Overview T Chapter 15 he Government has been implementing various reforms aimed at improving the quality of education. In the review period, the Government continued to fund the Free Primary and Day-Secondary Education. In addition, the Government registered more TVET institutions to increase access to vocational and technical training. During the same period, the Government increased budgetary allocation to the sector mainly on account of increased funding for basic and university education. Other reforms undertaken in the review period focused on the management of national examinations and development of a new curriculum. 15.2. The total expenditure for the Ministry of Education, which includes that of Teachers Service Commission is expected to grow by 31.6 per cent from KSh 315.6 billion in 2016/17 to KSh 415.3 billion in 2017/18. The total recurrent expenditure for the Ministry of Education is expected to increase by 30.7 per cent to KSh 385.2 billion in 2017/18. Development expenditure in the Ministry of Education is expected to increase to KSh 30.0 billion in 2017/18. 15.3. Overall, the number of educational institutions increased by 5.1 per cent to 90,587 in 2017. During this period, pre-primary schools went up by 1.3 per cent to 41,779 while primary schools rose by 6.7 per cent to 35,442. Further, the number of secondary schools increased by 7.2 per cent from 9,942 in 2016 to 10,655 in 2017, while registered Technical Vocational and Education Training (TVET) institutions rose substantially by 50.9 per cent to 1,962 in the same period. 15.4. During the review period, total enrolment in pre-primary schools rose by 2.9 per cent to 3,293.8 thousand. Total enrolment in primary schools increased from 10.3 million in 2016 to 10.4 million in 2017. In addition, enrolment in secondary schools grew by 4.1 per cent to 2,830.8 thousand in 2017. Overall teacher trainees ’enrolment went up marginally from 41,707 in 2016 to 42,131 in 2017 while total enrolment in TVET institutions increased by 35.8 per cent to 275,139 in 2017. However, university student enrolment is expected to decline by 7.7 per cent from 564,507 in 2016/17 to 520,893 in 2017/18 academic year. Education 15.5. Table 15.1 presents total expenditure by the Ministry of Education for the period xpenditure 2013/14 to 2017/18. Total expenditure is expected to increase by 31.6 per cent from KSh 315.6 billion in 2016/17 to KSh 415.3 billion in 2017/18. During the review period, recurrent expenditure for State Departments of Basic Education is expected to grow substantially to KSh 84.8 billion. This increase is attributable to funding of Free Primary Education (FPE) and Free Day Secondary Education (FDSE). Recurrent expenditure for University Education is expected to more than double to KSh 96.0 billion in 2017/18. Recurrent expenditure for Teachers Service Commission (TSC) is expected to rise by 5.7 per cent to KSh 201.9 billion in 2017/18 while that of Vocational and Technical Training is expected to rise by 2.3 per cent to KSh 2.5 billion during the same period. 15.6. Total development expenditure by the Ministry of Education is expected to increase by 43.9 per cent from KSh 20.9 billion in 2016/17 to KSh 30.0 billion in 2017/18. The growth in development expenditure in the ministry is mainly attributed to the funding of Vocational and Technical Training and Teachers Service Commission. Development expenditures for State 225 Economic Survey 2018 Department of Vocational and Technical Training is expected to rise substantially from KSh 4.8 billion in 2016/17 to KSh 16.5 billion in 2017/18. During the same period, development expenditures for State Department of Basic Education and University Education are expected to decline by 2.0 per cent to KSh 8.0 billion and 31.5 per cent to KSh 5.4 billion, respectively. Table 15.1: Expenditure for the Ministry of Education1, 2013/14 - 2017/18 2013/14 2014/15 2015/16 2016/17⁺ KSh Million 2017/18** RECURRENT EXPENDITURE Ministry of Education State Department of Basic Education.................................. 42,204.06 51,316.39 57,519.21 54,977.03 84,768.99 Teachers Service Commission............................................. 154,778.10 157,209.10 180,970.14 190,947.22 201,893.46 State Department for University Education........................ 37,976.67 51,775.82 39,525.27 46,303.33 96,042.01 State Department for Vocational and Technical Training... 2,256.01 1,244.80 2,308.13 2,479.53 2,535.36 237,214.84 261,546.11 280,322.75 294,707.12 385,239.82 8,843.94 11,156.42 5,258.23 8,188.86 8,023.82 Sub Total DEVELOPMENT EXPENDITURE Ministry of Education State Department of Basic Education.................................. Teachers Service Commission............................................. - - 100.00 6.34 118.00 State Department for University Education........................ 3,085.08 9,595.41 5,002.01 7,930.17 5,435.85 State Department for Vocational and Technical Training... 2,068.73 1,866.95 4,248.17 4,746.18 16,463.28 Sub Total GROSS TOTAL EXPENDITURE 13,997.76 22,618.78 14,608.41 20,871.55 30,040.95 251,212.59 284,164.89 294,931.16 315,578.67 415,280.76 Source: The National Treasury **Estimates + Revised 15.7. Educational Institutions: The total number of educational institutions increased by 5.1 per cent from 86,179 in 2016 to 90,587 in 2017 as shown in Table 15.2. The number of pre-primary, primary and secondary schools went up by 1.3 per cent, 6.7 per cent and 7.2 per cent, respectively, in 2017. Notably, the rate of increase for private schools was higher than that of public schools during the year under review. The total number of registered Technical Vocational and Education Training (TVET) institutions rose substantially by 50.9 per cent from 1,300 in 2016 to 1,962 in 2017. The increase is partly as a result enforcement of the TVET Act where all the institutions were required to be registered. The number of public universities increased by one following the granting of charter to Garissa University College. 226 Chapter 15: Education and Training Table 15.2: Educational Institutions by Category, 2013 – 2017 Number 2013 Category 2014 2015 2016 2017* Schools: Pre-Primary : Public .. .. .. .. .. ………………………………………………………………. 24,702 24,768 24,862 25,175 25,381 Private .. .. .. .. .. ..………………………………………………………………. 15,443 15,451 15,913 16,073 16,398 Sub Total .. .. .. .. .. ..………………………………………………………………. 40,145 40,219 40,775 41,248 41,779 Primary: Public .. .. .. .. .. ..………………………………………………………………. 21,205 21,718 22,414 22,939 23,584 Private .. .. .. .. .. ..………………………………………………………………. 6,821 7,742 8,919 10,263 11,858 Sub Total .. .. .. .. .. ..………………………………………………………………. 28,026 29,460 31,333 33,202 35,442 Secondary: Public .. .. .. .. ..………………………………………………………………. 6,807 7,680 8,297 8,592 9,111 Private .. .. .. .. ..………………………………………………………………. 1,027 1,067 1,143 1,350 1,544 Sub Total .. .. .. .. .. ..………………………………………………………………. 7,834 8,747 9,440 9,942 10,655 Teacher Training Colleges: Pre-primary: Public .. .. .. .. ..………………………………………………………………. 22 25 25 26 41 Private .. .. .. .. ..………………………………………………………………. 109 115 118 121 235 Sub Total .. .. .. .. .. ..………………………………………………………………. 131 140 143 147 276 Primary: Public .. .. .. .. ..………………………………………………………………. 22 24 24 27 27 Private .. .. .. .. ..………………………………………………………………. 101 101 101 105 108 Sub Total .. .. .. .. .. ..………………………………………………………………. 123 125 125 132 135 Secondary 1. .. .. .. ..………………………………………… 2 2 3 Total .. .. .. .. .. ..………………………………………………………………. 256 267 271 3 3 282 414 TVET Institutions Public Youth Polytechnics .. ….………………………………………………………………. 701 701 816 816 1,186 Private Youth Polytechnics .. ….………………………………………………………………. .. .. .. 29 47 Public Technical and Vocational Colleges ….………………………………………………………………. 49 51 55 62 91 Private Technical and Vocational Colleges ….………………………………………………………………. .. .. .. 382 627 National Polytechnics .. ..………………………………………………………………. 3 3 3 11 11 Sub Total .. .. .. .. .. ..………………………………………………………………. 753 755 874 1,300 1,962 Universities Public .. .. .. .. ..………………………………………………………………. 22 22 23 30 31 Private .. .. .. .. ..………………………………………………………………. 30 31 30 28 28 58 59 77,197 79,641 82,889 86,179 GRAND TOTAL .. .. ..………………………………………………………………. 90,587 Sub Total .. .. .. .. .. ..………………………………………………………………. 52 53 53 Source : Ministry of Education * Provisional 1 Diploma teacher training colleges .. Data not available 227 Economic Survey 2018 15.8. Pre-Primary Education: The pupil enrolment and number of teachers in Early Childhood Development Education (ECDE) centres from 2013 to 2017 is presented in Table 15.3. Total enrolment in ECDE centres is estimated to have increased by 2.9 per cent from 3,199.8 thousand in 2016 to 3,293.8 thousand in 2017. The total number of ECDE teachers grew by 6.7 per cent to 118,276 in 2017, while the number of trained ECDE teachers increased by 9.4 per cent from 97,717 in 2016 to 106,938 in 2017. These increases are attributed to expansion of ECDE centres and employment of more teachers by County Governments. Female teachers accounted for 83.4 per cent of pre-primary school trained teachers in 2017. Pre-primary Gross Enrolment Rate (GER) rose from 76.6 per cent in 2016 to 77.1 per cent in 2017, while the Net Enrolment Rate (NER) increased to 76.9 per cent in 2017 as shown in Figure 15.1. Table 15.3: Pupil Enrolment and Teacher Numbers in ECDE Centres, 2013 – 2017 Number 2013 2014 2015 2016 2017* Enrolment Boys…………………………………………. 1,411,309 1,476,383 1,607,353 1,634,194 1,681,530 Girls…………………………………………. 1,454,039 1,543,482 1,560,502 1,565,647 1,612,283 TOTAL…………………………………………. 2,865,348 3,019,865 3,167,855 3,199,841 3,293,813 13,968 14,721 15,366 17,746 Female …………………………………………. 69,960 74,186 78,185 82,351 89,192 Sub Total…………………………………………. 83,814 88,154 92,906 97,717 106,938 3,307 2,840 2,606 2,445 Female …………………………………………. 13,818 13,323 11,441 10,496 8,893 Sub Total…………………………………………. 17,248 16,630 14,281 13,102 11,338 TOTAL…………………………………………. 101,062 104,784 107,187 110,819 118,276 Trained Teachers Male …………………………………………. 13,854 Untrained Teachers Male …………………………………………. 3,430 Source: Ministry of Education * Provisional Figure 15.1: Pre-primary Gross Enrolment Rate (GER) and Net Enrolment Rate (NER), 2013-2017 228 Chapter 15: Education and Training 15.9. Primary Education: Enrolment in primary schools by class and sex from 2013 to 2017 is shown in Table 15.4. Total enrolment increased marginally from 10.3 million in 2016 to 10.4 million in 2017. Enrolment in Standard one went up by 1.3 per cent to 1,370.3 thousand in 2017. During the same period, boy’s enrolment grew by 1.4 per cent to 5,293.9 thousand while that of girls went up marginally to 5,109.8 thousand. The retention rate for boys in Std 8 declined from 78.9 per cent in 2016 to 77.0 per cent in 2017 while that of girls decreased marginally to 76.3 per cent in the review period. 229 640.5 621.4 598.2 448.0 Standard 5 .. .. ……………………. 644.8 631.5 1,276.3 Standard 6 .. .. ……………………. 631.4 613.0 1,244.4 Standard 7 .. .. ……………………. 560.0 560.3 1,120.3 Standard 8 .. .. ……………………. 448.1 436.8 884.9 *Provisional Source : Ministry of Education Total 446.1 894.1 601.0 1,199.2 618.5 1,239.9 628.2 1,268.7 651.7 1,329.6 637.7 1,312.2 644.9 1,324.8 670.4 1,382.5 Girls 2014 5,052.5 4,898.5 9,951.0 677.9 Standard 4 .. .. ……………………. 672.6 645.3 1,317.9 5,019.7 4,837.9 9,857.6 674.5 TOTAL 679.9 Boys Standard 3 .. .. ……………………. 676.1 652.0 1,328.1 Total Standard 2 .. .. ……………………. 676.2 639.8 1,316.0 Girls 712.1 Boys Standard 1 .. .. ……………………. 710.5 659.1 1,369.7 Class 2013 Table 15.4: Primary School Enrolment by Class and Sex, 2013 – 2017 461.3 619.7 633.9 641.1 657.3 641.9 648.3 659.4 Girls 932.0 1,236.3 1,272.6 1,298.5 1,341.2 1,317.8 1,331.0 1,361.4 Total 5,127.9 4,962.9 10,090.8 470.7 616.6 638.7 657.4 683.9 675.9 682.7 702.0 Boys 2015 477.8 650.9 650.8 651.2 669.3 653.9 650.7 655.8 Girls 964.0 1,297.0 1,308.9 1,318.9 1,362.7 1,338.2 1,337.4 1,352.6 Total 5,219.3 5,060.3 10,279.7 486.2 646.1 658.1 667.7 693.4 684.3 686.7 696.8 Boys 2016 496.3 652.9 655.2 667.5 665.4 652.9 655.2 664.4 Girls 994.0 1,309.0 1,325.0 1,348.6 1,359.7 1,346.2 1,350.9 1,370.3 Total 5,293.9 5,109.8 10,403.7 497.7 656.1 669.8 681.1 694.2 693.3 695.7 705.9 Boys 2017* Number ('000) Economic Survey 2018 230 Chapter 15: Education and Training 15.10. Figure 15.2 presents trends in primary school GER and NER from 2013 and 2017. In 2017, the primary school GER declined marginally to 104.0 per cent while the NER increased marginally to 91.2 per cent. Figure 15.2: Primary School Gross Enrolment Rate (GER) and Net Enrolment Rate (NER), 2013-2017 GER NER 110 105 105 104.1 103.6 103.5 104.0 Per cent 100 95 90 91.2 89.2 88.4 88.2 88.1 85 80 75 2013 2015 2014 2016 2017 Year 15.11. Kenya Certificate of Primary Education (KCPE): The number of candidates by sex and mean subject score in KCPE from 2013 to 2017 is shown in Table 15.5. In 2017, the number of KCPE candidates increased by 4.3 per cent to 993,718 from 952,390 in 2016. The number of male candidates rose by 5.3 per cent from 473,684 in 2016 to 498,775 in 2017, while that of female candidates increased by 3.4 per cent to 494,943. The national mean score decreased by 0.82 percentage points to 52.16 per cent in 2017. In the review period, performance of most subjects declined with performance in science registering the highest decline of 6.21 percentage points to 55.6 per cent. However, performance in Mathematics improved by 5.75 percentage points to 51.14 per cent in 2017. Table 15.5: Candidates by Sex and Mean Subject Score in KCPE, 2013-2017 Number 2013 2014 2015 2016 2017* 473,684 498,775 Number of candidates Male…………………………………………………………. 426,369 443,258 467,904 Female………………………….…………………………………………. 413,390 437,228 459,885 478,706 494,943 952,390 993,718 Subject Mean score (%) English Language…………….…………………………………………. 53.06 47.64 49.98 50.52 47.63 English Composition……….…………………………………………. 41.90 41.47 41.38 40.26 39.60 Kiswahili Lugha……………………………………………………. 45.78 45.04 44.68 Kiswahili Insha………………………………………………. 52.43 58.00 54.38 49.20 48.38 48.27 47.88 Mathematics…………………..…………………………………………. 52.86 52.04 56.16 Science ………………………………………………………………………. 61.82 66.00 55.48 45.39 51.14 61.82 55.61 Social Studies…………………….…………………………………………. 54.75 55.26 49.98 57.38 57.22 Religious Education……………………………………………………. 70.43 68.97 70.20 70.99 69.79 52.98 52.16 Total National Mean Score 839,759 54.13 880,486 54.30 Source: Kenya National Examinations Council * Provisional 231 927,789 52.78 Economic Survey 2018 15.12. The Pupil Completion Rate (PCR) and Primary to Secondary Transition Rate (PSTR) from 2013 to 2017 is shown in Figure 15.3. The PCR increased from 83.5 per cent in 2016 to 84.0 in 2017. The PSTR rose from 81.3 per cent in 2016 to 83.1 per cent in 2017. Figure 15.3 Pupil Completion Rate and Primary to Secondary Transition Rate, 2013 - 2017 15.13. Primary School Teachers: Table 15.6 shows the number of public primary school teachers by cadre and sex from December 2013 to December 2017. The total number of teachers rose by 1.1 per cent from 214,719 in 2016 to 217,152 in 2017.The number of graduate teachers declined marginally to 21,192 in 2017, while the number of approved teachers increased by 1.7 per cent compared to a 2.8 per cent increase in 2016. The number of SI/diploma teachers increased from 39,121 in 2016 to 39,559 in 2017, mainly due to promotion of P1 teachers, while the number of P1 teachers grew by 1.2 per cent to 103,262 in 2017. The total number of male teachers decreased slightly from 107,495 in 2016 to 106,727 in 2017, while the number of female teachers grew by 3.0 per cent to 110,425 in the same period. The pupil teacher ratio worsened slightly from 40:1 in 2016 to 41:1 during the period under review. 15.14. Secondary Education: Table 15.7 presents enrolment in both public and private secondary schools by class and sex from 2013 to 2017. The total enrolment in secondary schools grew by 4.1 per cent from 2,720.6 thousand in 2016 to 2,830.8 thousand in 2017. Further, enrolment of girls increased by 4.3 per cent to 1,380.0 thousand while that of boys went up by 3.9 per cent to 1,450.8 thousand in 2017. The retention rate at Form 4 for boys and girls was 87.8 per cent and 85.1 per cent, respectively. 232 2013 P1…………………………. 48,287 102,227 199,686 - - 30 101,764 - 48,118 17 15,236 29,010 9,353 Male 2014 98,933 - 17 47,317 26 20,850 20,722 10,001 Female 47 200,697 - 95,435 43 36,086 49,732 19,354 Total 105,479 647 31 48,426 18 16,421 29,669 10,267 Male 2015 105,512 1,024 15 49,723 27 22,722 21,050 10,951 Female 210,991 1,671 233 448.7 2,104.3 Form 4………………………. 244.5 204.2 976.6 * Provisional Source : Ministry of Education 1,127.7 496.1 Form 3…………………….. 267.2 228.9 TOTAL 542.0 Total 617.5 Girls 2013 Form 2……………………. 288.2 253.7 Boys Form 1…………………….. 327.8 289.8 Class 1,213.3 250.2 294.3 326.4 342.4 Boys 1,118.4 216.5 263.7 307.3 331.0 Girls 2014 2,331.7 466.7 557.9 633.6 673.4 Total 1,348.4 277.1 331.1 359.8 380.4 Boys 1,210.5 230.3 296.4 331.6 352.2 Girls 2015 46 98,149 45 39,143 50,719 21,218 Total 2,559.0 507.4 627.5 691.4 732.7 Total exclusively for public schools and does not include teachers on study leave, disciplinary cases and those performing non-teaching duties. 97,459 - 96,206 - 34,048 50,159 19,273 Total Table 15.7: Enrolment in Secondary Schools by Class and Sex, 2013 – 2017 1 Data is * Provisional Source: Teachers Service Commision TOTAL Contract Teachers…………….. - - - 47,919 Dip/Technical …………….. - - 19,520 S1/Diploma……………… 14,528 Cert./Technical 20,195 Approved………………… 29,964 Female 9,825 Male Graduate………………… 9,448 Grade Table 15.6: Public Primary School Teachers1 by Cadre and Sex, 2013 – 2017 1,396.9 296.6 345.0 372.5 382.8 Boys 107,495 - 36 50,965 23 16,386 29,770 10,315 Male 2016 13 1,323.6 266.3 324.3 357.9 375.1 Girls 2016 107,224 - 51,105 32 22,735 22,352 10,987 Female 49 2,720.6 562.9 669.4 730.4 757.9 Total 214,719 - 102,070 55 39,121 52,122 21,302 Total 1,450.8 303.0 356.0 386.4 405.5 Boys 106,727 9 29 49,704 37 16,465 30,255 10,228 Male 2017* 217,152 22 43 103,262 74 39,559 53,000 21,192 Total 1,380.0 275.9 335.7 372.3 396.1 Girls 2,830.8 578.9 691.7 758.7 801.5 Total Number ('000') 2017* 110,425 13 14 53,558 37 23,094 22,745 10,964 Female Number Chapter 15: Education and Training Economic Survey 2018 15.15. Figure 15.4 depicts the trend of secondary school GER and NER from 2013 to 2017. Secondary school GER increased from 66.7 per cent in 2016 to 68.5 per cent in 2017 while NER increased from 49.5 per cent to 51.1 per cent during the same period. Figure 15.4: Secondary School Gross Enrolment Rate (GER) and Net Enrolment Rate (NER), 20132017 15.16. Kenya Certificate of Secondary Education (KCSE): The number of KCSE candidates grew by 6.9 per cent from 571,161 in 2016 to 610,501 in 2017 as shown in Table 15.8. During the review period, the number of female candidates increased by 8.7 per cent to 295,623 while that of male candidates increased by 5.2 per cent to 314,878 in 2017. The number of candidates who scored a minimum university entry score of C+ (plus) and above decreased by 21.2 per cent to 70,073 in 2017 from 88,929 in 2016. During the review period, the number of candidates who scored A- (minus) and above declined by 40.3 per cent from 4,786 in 2016 to 2,856 in 2017. The number of candidates who obtained grade C- (minus) and C plain and qualified to join diploma colleges dropped by 4.1 per cent to 101,514 in 2017. During the same period, the number of candidates who scored below grade C- (minus) increased by 16.6 per cent to 438,914. 234 2013 16,515 22,079 21,836 C+....... 9,341 202,539 3,126 27,251 * Provisional Source: Kenya National Examinations Council 242,981 3,913 Total E.......... 38,505 39,672 28,542 D......... D-........ 34,100 37,703 D+....... 28,378 26,492 32,385 C......... C-........ 12,648 15,315 18,216 B.......... 6,237 3,492 867 Female B-........ 6,276 10,776 A-........ B+....... 1,855 Male A......... KCSE Grade 445,520 7,039 55,793 78,177 71,803 60,763 48,571 38,351 30,864 24,656 17,013 9,768 2,722 Total 258,896 3,227 24,542 37,365 38,749 36,015 30,699 25,978 21,997 17,941 12,606 7,644 2,133 Male 223,237 2,409 23,174 36,136 37,449 34,662 27,989 21,450 16,318 11,378 7,208 4,124 940 Female 2014 482,133 5,636 47,716 73,501 76,198 70,677 58,688 47,428 38,315 29,319 19,814 11,768 3,073 Total Table 15.8: National trends in KCSE candidates mean grade by Sex, 2013-2017 278,387 3,127 25,531 40,442 40,181 37,482 33,437 29,556 25,312 19,826 13,517 7,952 2,024 Male 2015 242,853 2,223 23,127 39,113 38,976 36,633 31,476 25,214 19,269 13,634 8,410 4,117 661 Female 521,240 5,350 48,658 79,555 79,157 74,115 64,913 54,770 44,581 33,460 21,927 12,069 2,685 Total 299,268 18,077 77,718 57,487 41,632 30,979 22,960 17,238 13,649 10,204 6,581 2,685 58 Male 2016 271,893 15,322 72,211 54,648 39,319 30,047 21,832 14,969 10,096 7,012 4,394 1,960 83 Female 571,161 33,399 149,929 112,135 80,951 61,026 44,792 32,207 23,745 17,216 10,975 4,645 141 Total 314,878 18,345 88,040 68,572 45,522 31,206 21,506 15,828 11,631 7,738 4,596 1,813 81 Male 2017* 295,623 17,191 91,341 66,978 42,925 29,834 18,968 12,032 7,754 4,890 2,748 901 61 Female 610,501 35,536 179,381 135,550 88,447 61,040 40,474 27,860 19,385 12,628 7,344 2,714 142 Total Number Chapter 15: Education and Training 235 109 - Cert./Technical………. 324 Contract Teachers…………… - 40,377 236 1 Data is 25,117 17 65,494 157 8 149 65,337 - 433 467 6,303 5,645 52,489 Total 6 6 47,707 - 47,701 - 366 572 4,853 4,269 37,641 Male 2 2 31,020 - 31,018 - 121 299 3,687 2,116 24,795 Female 2014 8 8 78,727 - 78,719 - 487 871 8,540 6,385 62,436 Total 51,525 175 6 169 51,350 81 1 577 5,650 4,082 40,610 Male 33,913 32 2 30 33,881 121 116 296 4,242 2,025 27,081 Female 2015 85,438 207 8 199 85,231 202 466 873 9,892 6,107 67,691 Total 342 568 5,432 3,845 43,128 Male 53,484 169 4 165 53,315 exclusively for public schools and does not include teachers on study leave, disciplinary cases and those performing non-teaching duties. * Provisional Source : Teachers Service Commission Grand Total 140 2 Dip/Technical…………….6 Sub Total 15 Graduate………………..134 Untrained 25,100 141 Dip/Technical……………… 326 40,237 2,614 S1/Diploma………………. 3,689 Sub Total 1,858 Approved………………… 3,787 Female 20,378 Male Graduate…………….. 32,111 Trained Grade 2013 Table 15.9: Public Secondary School and Tertiary Teachers by Cadre and Sex1, 2013 – 2017 35,703 37 2 35 35,666 96 285 4,180 1,985 29,120 Female 2016 89,187 206 6 200 88,981 - 438 853 9,612 5,830 72,248 Total 55,408 170 6 164 55,238 12 331 1,647 6,005 3,659 43,584 Male 38,423 30 - 30 38,393 15 107 768 4,515 1,851 31,137 Female 2017* 93,831 200 6 194 93,631 27 438 2,415 10,520 5,510 74,721 Total Number Economic Survey 2018 Chapter 15: Education and Training 15.17. Secondary School Teachers: The number of public secondary school and tertiary teachers by sex and cadre from December 2013 to December 2017 is presented in Table 15.9. The total number of teachers increased by 5.2 per cent from 89,187 in 2016 to 93,831 in 2017. During the review period, only 0.2 per cent of the public secondary and tertiary teachers were not trained. The total number of trained female teachers grew by 7.6 per cent to 38,393 in 2017 while that of trained male teachers rose by 3.2 per cent to 55,238 during the review period. In 2017, the number of trained S1/Diploma teachers increased by 9.4 per cent from 9,612 in 2016 to 10,520 in 2017 while the number of trained graduate teachers went up by 3.4 per cent in 2017. The increase is partly attributed to recruitment of teachers by the Government and resumption of duty by teachers after completion of their studies. In the same period, the number of approved teachers declined by 5.5 per cent to 5,510. 15.18. Enrolment in Teacher Training Institutions: The overall teacher trainees’ enrolment rose marginally to 42,131 in 2017 as shown in Table 15.10. Similarly, enrolment of P1 teacher trainees grew slightly by 1.9 per cent to 39,798 in 2017. The number of teacher trainees in public colleges increased by 3.0 per cent to 21,931 in 2017, while those from private colleges grew by 0.5 per cent to 17,867. During the review period, the number of first year diploma trainees declined by 30.8 per cent while that of first year P1 trainees grew by 3.0 per cent, mainly due to lowering of minimum entry grade. Total enrolment for diploma trainees also decreased by 11.6 per cent to 2,333 in 2017. Table 15.10: Teacher Trainees Enrolment by Year and Sex, 2013- 2017 Number Type of Institution/ Certification 2013 Male 2014 Female Male 2015 Female Male 2016 Female Male 2017* Female Male Female Public primary (P1) 1st Year…………………………. 5,249 5,435 2nd Year…………………………. 4,967 4,994 5,536 5,769 6,270 4,489 5,945 4,623 6,123 5,357 5,249 5,435 5,513 5,266 5,074 5,786 5,226 5,959 Sub Total……………………….. 10,216 10,792 10,243 10,971 11,282 11,536 9,563 11,731 9,849 12,082 Total Public P1……………………… 21,008 Private primary (P1)…………… 6,997 7,392 Total Private P1……………………… 14,389 Sub Total……………………….. 17,213 18,184 21,214 7,905 22,818 8,352 8,102 16,257 21,294 8,511 16,613 8,401 21,931 9,372 17,773 8,418 9,449 17,867 18,148 19,323 19,384 20,047 17,964 21,103 18,267 21,531 Diploma 1st Year…………………… 316 269 671 516 419 411 573 558 453 330 2nd Year…………………….. 379 226 317 260 300 280 392 369 418 401 3rd Year…………………….. 327 199 387 231 305 256 404 344 402 329 694 1,375 1,007 1,024 947 1,369 1,271 1,273 1,060 18,878 19,523 20,330 20,408 20,994 19,333 22,374 19,540 22,591 Sub Total……………………….. 1,022 Total………………………. 18,235 Grand Total…………………… 37,113 39,853 41,402 41,707 42,131 Source: Ministry of Education *Provisional 15.19. Enrolment in TVET Institutions: The enrolment in registered TVET institutions from 2013 to 2017 is shown in Table 15.11. Total enrolment in TVET institutions increased by 35.8 per cent from 202,556 in 2016 to 275,139 in 2017, mainly due to registration of more TVET institutions. During the review period, enrolment in national polytechnics and technical universities grew by 31.4 per cent from 36,915 in 2016 to 48,492. At the same time, enrolment in Vocational Training Colleges rose by 29.1 per cent from 80,905 in 2016 to 104,441. 237 .. Kenya Technical Trainers College 238 .. .. .. .. .. 13,166 Kitale National Polytechnic …………………… Kisii National Polytechnic …………………… Kabete National Polytechnic …………………… Nyeri National Polytechnic …………………… Sigalagala National Polytechnic …………………… Sub Total……………………………………… .. 148,009 Formerly Technical Training Institutes Formerly Youth Polytechnics 2 3 .. Data not available Diploma and Certificate courses only 1 * Provisional Source: Technical Vocational Education and Training Authority (TVETA) Grand Total 52,616 28,627 .. 23,989 7,329 20,495 .. .. .. .. .. .. 127,514 74,898 .. .. Total Sub Total Vocational Traning Colleges3………………………………… 42,942 Private Technical and Vocational Colleges 2 Public Technical and Vocational Colleges2 Other TVET Institutions 31,956 .. Kenya Coast National Polytechnic …………………… Total .. .. Meru National Polytechnic …………………… 1,949 Eldoret National Polytechnic………………………………… 3,081 North Eastern National Polytechnic …………………… 1,267 Kisumu National Polytechnic………………………………… 2,223 .. 1,506 Female 2,607 Male Technical University of Mombasa1………………………………... 3,048 1 Technical University of Kenya ………………………………... 4,814 Institution 2013 75,105 45,473 .. 29,632 14,660 .. .. .. .. .. .. .. .. 3,194 2,926 858 3,250 4,432 Male 147,821 124,559 49,454 28,222 .. 21,232 8,602 23,262 .. .. .. .. .. .. .. .. 1,977 1,551 597 1,708 2,769 Female 2014 Table 15.11: Enrolment in Technical and TVET Institutions by Sex, 2013 – 2017 79,846 47,625 .. 32,221 12,463 .. .. .. .. .. .. .. .. 2,726 2,078 913 2,835 3,911 Male 153,314 132,773 52,927 29,840 .. 23,087 8,078 20,541 .. .. .. .. .. .. .. .. 1,484 1,325 1,119 1,633 2,517 Female 2015 91,209 46,340 27,280 17,589 22,754 1,001 1,218 2,048 1,733 907 736 613 744 3,793 2,941 2,806 1,789 2,425 Male 202,556 165,641 74,432 34,565 30,298 9,569 14,161 36,915 762 646 979 1,217 512 1,142 428 287 2,174 1,415 2,114 1,236 1,249 Female 2016 125,291 59,756 35,951 29,584 29,290 2,399 1,874 2,607 2,219 978 822 256 2,727 4,965 3,608 1,750 1,859 3,226 Male Number 275,139 226,647 101,356 44,685 38,689 17,982 19,202 48,492 1,868 1,282 1,051 1,810 673 1,318 200 1,990 3,215 1,887 1,219 1,257 1,432 Female 2017* Economic Survey 2018 Chapter 15: Education and Training 15.20. University Education: Table 15.12 presents student enrolment in public and private universities from 2014/15 to 2017/18. University enrolment is expected to decline by 7.7 per cent from 564,507 in 2016/17 to 520,893 in 2017/18. Similarly, student enrolment in both public and private universities is expected to decrease by 8.2 per cent and 5.0 per cent, respectively in 2017/18. The decline in enrolment was mainly occasioned by reduction in the number of candidates who met the minimum university entry requirements. Half of the public universities are expected to register a drop in the number of students during the review period with the decrease in enrolment being observed for both male and female students. Apart from Cooperative University, all other universities had more male-students than female-students. Table 15.12: Enrolment1 by University and Sex, 2014/15 - 2017/18 Number 2014/15 University Male 2015/16 Female Male 2016/17 Female Male 2017/18* Female Male Female Public Universities Nairobi…………………………………………………….. 42,328 27,618 60,103 38,612 47,137 25,661 46,172 21,655 Kenyatta…………………………………………………….. 43,165 33,714 40,254 31,237 37,216 29,875 39,263 32,770 Moi…………………………………………………….. 22,458 20,838 24,775 21,951 24,608 18,062 18,972 18,935 Egerton…………………………………………………….. 8,661 5,267 7,087 5,433 7,178 5,623 6,917 4,676 12,752 24,747 15,198 25,621 15,724 11,157 7,115 10,729 7,618 9,383 7,217 Masinde Muliro…………………………………………………….. 7,480 4,213 8,619 5,612 11,344 7,542 9,842 6,985 Technical University of Kenya…………………………………………………….. 5,391 2,024 7,586 2,446 7,460 2,693 8,642 3,025 Technical University of Mombasa…… Jomo Kenyatta (JKUAT)…………………………………………………….. 20,860 11,469 21,623 Maseno…………………………………………………….. 7,356 7,412 5,061 1,814 5,086 2,397 6,038 2,200 Dedan Kimathi…………………………………………………….. 4,715 1,578 4,538 1,558 4,554 1,558 4,261 1,925 Chuka …………………………………………………….. 9,716 3,931 6,469 4,074 8,689 5,844 9,032 6,067 Karatina …………………………………………………….. 3,095 2,209 4,590 3,046 3,631 2,653 3,585 2,700 Kisii…………………………………………………….. 4,780 3,495 7,567 5,979 13,913 8,995 11,581 8,322 Meru…………………………………………………….. 2,825 1,174 3,067 1,272 4,362 2,156 3,466 1,400 Multimedia…………………………………………………….. 754 346 2,568 1,373 2,902 1,753 2,986 1,746 South Eastern…………………………………………………….. 3,676 2,138 4,274 2,624 4,591 3,153 4,856 3,264 Jaramogi Oginga Odinga…………………………………………………….. 2,537 1,638 6,682 3,974 7,529 5,213 5,798 3,331 Laikipia…………………………………………………….. 4,999 4,007 5,297 4,019 5,297 4,019 5,316 4,041 University of Eldoret…………………………………………………….. 9,447 6,215 13,963 9,875 9,675 7,261 7,700 6,275 Kabianga…………………………………………………….. 3,375 2,366 1,249 1,017 4,661 3,855 4,169 3,618 Pwani…………………………………………………….. 2,981 1,603 3,781 2,494 3,989 2,692 2,792 2,238 Masai Mara…………………………………………………….. 4,118 3,036 5,149 3,988 5,340 4,234 5,879 5,096 Kibabii………………………………………… .. 3,527 1,815 3,610 2,440 4,314 2,842 Embu University ………………………………………… .. .. .. .. 687 677 3,046 2,394 Machakos ………………………………………… .. .. .. .. 1,085 873 4,656 2,941 Murang’a University …………………… .. .. .. .. 1,473 871 2,068 1,304 Rongo ………………………….. .. .. .. .. 3,029 2,220 2,831 2,235 Kirinyaga University …………………… .. .. .. .. 317 242 1,295 989 Co-operative University …………………….. .. .. .. 1,259 1,594 813 927 Taita Taveta University …………………….. .. .. .. 561 280 546 234 752 297 262,592 177,373 Garissa …………………… Sub Total Private Universities Grand Total 4,186 1,234 .. .. .. .. .. .. .. 217,164 146,170 258,688 174,068 286,840 192,472 42,454 37,994 443,783 39,125 38,804 510,685 43,547 41,648 564,507 43,253 37,675 520,893 Source: Individual Universities/ Commission for University Education * Provisional 1 Enrolment excludes Diploma/Certificate. 15.21. Number of Universities and other Institutions offering Degree Programmes: The number of registered universities and other institutions offering degree programmes from 2013 to 2017 is shown in Table 15.13. The number of public universities increased to 31 in 2017 after Garissa University College was awarded a charter. During the review period, the number of public universities’ constituent colleges rose to 5 following the establishment of Bomet and Tharaka-Nithi university colleges. Further, the number of public university campuses established increased significantly from 115 in 2016 to 168 in 2017. 239 Economic Survey 2018 Table 15.13: Number of Universities and Other Institutions Offering Degree Programmes by Institution Category, 2013-2017 2015 2016 Number 2017* Chartered private universities……………………………………………. 17 17 17 18 18 Universities with Letter of Interim Authority…………………………. 11 13 14 14 14 Newly Registered universities……………………………………………… 2 1 1 - - 33 22 35 23 35 30 35 31 Public university constituent colleges…………………………………… 9 9 10 3 5 Private university constituent colleges………………………………. 5 5 5 5 5 81 87 Public university campuses established …………………………………… 101 115 168 Institution Category 2013 2014 Institutions approved for collaboration with universities in 33 offering university programmes …………………. Public universities……………………………………………………. 22 + Source: Commission for University Education * Provisional + Revised 15.22. Table 15.14 shows the number of approved degree programmes from 2013 to 2017. The number of approved public university degree programmes increased by 2.0 per cent to 2,807 while that of private universities rose by 1.6 per cent to 630 in 2017. The number of approved degree programmes for universities with a letter of interim authority increased from 64 in 2016 to 70 in 2017. The number of validated diploma programmes increased from 101 in 2016 to 103 in 2017. Table 15.14: Number of approved Degree Programmes, 2013 - 2017 2013 2014 2015 2016 Number 2017* Public University Degree Programmes.............................................. .. 2,027 2,066 2,066 2,807 Public University Constituent Colleges Degree Programmes............ .. .. 106 106 108 Private University Degree Programmes............................................. 362 456 554 620 630 Private University Constituent Colleges Degree Programmes........... .. 18 18 21 22 Universities with Letter of Interim Authority..................................... .. 49 56 64 70 Programme Registered Private University Degree Programmes............................ .. 4 4 4 4 Degree programmes for Collaboration with Universities.................... 38 38 38 41 45 .. 88 Validated diploma programmes1……………………………………………….. 94 101 103 Source: Commision for University Education * Provisional .. Data not available 1Commission resumed validation in 2016 15.23. Education Loans: The total number of loan applicants, beneficiaries and amount of loans awarded to applicants in public and private universities and TVET institutions from 2012/13 to 2016/17 academic years is presented in Table 15.15. The total number of loan applicants increased by 23.5 per cent to 252,928 in 2016/17. During the same period, the number of loan beneficiaries increased by 24.2 per cent to 244,626. The amount of loans awarded increased by 25.0 per cent from KSh 7.6 billion in 2015/16 to KSh 9.5 billion in 2016/17. 15.24. Loan applicants in public universities increased by 15.0 per cent from 183,887 in 2015/16 to 211,501 in 2016/17. The number of beneficiaries in public universities increased by 17.3 per cent from 176,708 in 2015/16 to 207,271 in 2016/17. During the review period, total amount of loans awarded to applicants from public universities increased by 18.5 per cent 240 Chapter 15: Education and Training to KSh 8.3 billion in 2016/17 from KSh 7.0 billion in 2015/16. The number of loan applicants from private universities increased by 27.1 per cent to 7,044 while beneficiaries increased by 28.4 per cent to 6,410 in 2016/17. During the review period, the amount of loan awarded to private university loan applicants increased by 33.7 per cent to KSh 257.1 million. Total number of loan applicants from TVET institutions more than doubled to 34,383 in 2016/17 out of which 3,945 were awarded loans. The amount of loan awarded to TVET applicants increased from KSh 359.3 million in 2015/16 to KSh 883.0 million in 2016/17. Table 15.15: Loan Applicants, Beneficiaries and Loans Awarded by Sex, 2012/13 – 2016/17 Loan Applicants Beneficiaries Year Male Female Total Male Female Total All Institutions 2012/2013............. 84,814 45,932 130,746 77,705 40,219 117,924 2013/2014............. 108,050 57,645 165,695 97,810 51,836 149,646 2014/2015............. 120,881 64,872 185,753 117,084 60,448 177,532 2015/2016............. 132,246 72,513 204,759 127,913 69,116 197,029 2016/2017............. 163,887 89,042 252,928 158,537 86,089 244,626 Public University 75,118 38,285 113,403 2012/2013............. 81,331 43,223 124,554 2013/2014............. 101,385 53,620 155,005 92,061 48,459 140,520 2014/2015............. 112,495 59,931 172,426 109,022 55,847 164,869 2015/2016............. 119,225 64,662 183,887 115,194 61,514 176,708 2016/2017............. 137,476 74,026 211,501 134,726 72,545 207,271 Private University 2,587 2012/2013............. 3,483 2,709 6,192 1,934 4,521 2013/2014............. 3,903 2,791 6,694 2,987 2,143 5,130 2014/2015............. 3,335 2,390 5,725 3,011 2,050 5,061 2015/2016............. 3,198 2,344 5,542 2,896 2,095 4,991 2016/2017............. 4,086 2,958 7,044 3,718 2,692 6,410 TVET institutions 2012/20131 ……….. 2013/2014............. 2,762 2014/2015............. 5,051 2015/2016............. 9,823 2016/2017............. 22,326 1,234 2,551 5,507 12,058 3,996 7,602 15,330 34,383 2,762 5,051 9,823 20,093 1,234 2,551 5,507 10,852 3,996 7,602 15,330 30,945 Amount Awarded (KSh Million) Male Female Total 3,377 4,148 4,592 4,945 6,125 3,261 3,948.5 4,384.5 4,607.8 5,403.0 1,720 2,299 2,353 2,628 3,327 1,634 2,175.2 2,224.2 2,413.7 2,909.3 5,097 6,447 6,945 7,573 9,452 4,895 6,123.7 6,608.7 7,021.5 8,312.2 115.9 127.8 118.7 112.0 149.1 85.9 90.7 80.8 80.3 108.0 202 218.5 199.5 192.3 257.1 71.6 88.8 224.9 573.3 33.3 48.2 134.4 309.6 104.8 137.0 359.3 883.0 Source: Higher Education Loans Board *Provisional 1 Awarding of bursaries to applicants from TVET instituions started in 2013/14 15.25. Table 15.16 shows the number of bursary applicants, beneficiaries and the amounts awarded to students by the Higher Education Loans Board (HELB) in public universities and TVET institutions from 2012/13 to 2016/17. The total number of bursary applicants increased significantly from 34,985 in 2015/16 to 243,532 in 2016/17, but only 35,653 were awarded bursaries. In total, the amounted of bursary awarded increased by 17.6 per cent from KSh 216.3 million in 2015/16 to 254.4 million in 2016/17. 241 Economic Survey 2018 15.26. The total number of bursary applicants in public universities was 209,149 out of which 19, 952 were awarded. The amount of bursary awarded to applicants from public universities increased by 46.5 per cent to KSh 133.7 million in 2016/17. The number of applicants from TVET institution more than doubled to 34,383 in 2016/17, while the number of beneficiaries increased to 15,701 during the same period. The amount of bursary awarded to applicants from TVET institutions declined from KSh 125.0 million 2015/16 to KSh 120.8 million in 2016/17. This decline is partly attributed to the Government policy of phasing out issuance of bursaries. Table 15.16: Bursary Applicants, Beneficiaries and Amount Awarded by Sex, 2012/13 – 2016/17 Bursary Year Male All Institutions 2012/2013........... 10,058 2013/2014........... 10,677 2014/2015........... 15,842 2015/2016........... 24,994 2016/2017........... 152,953 Public University 2012/2013........... 10,058 2013/2014........... 7,915 2014/2015........... 10,791 2015/2016........... 15,171 2016/2017........... 130,627 TVET Institutions 2012/20131 …….. 2013/2014........... 2014/2015........... 2015/2016........... 2016/2017........... Applicants Female Total 2,762 5,051 9,823 22,326 Male Beneficiaries Female Total Amount Awarded (KSh Million) Male Female Total 3,489 4,029 6,934 9,991 90,580 13,547 14,706 22,776 34,985 243,532 10,083 11,228 15,704 20,501 24,309 3,489 4,029 6,934 9,991 11,344 13,572 15,257 22,638 30,492 35,653 56 86 106 143 173 20 35 49 73 81 3,489 2,795 4,383 4,484 78,522 13,547 10,710 15,174 19,655 209,149 10,083 8,466 10,653 10,678 13,967 3,489 2,795 4,383 4,484 5,985 13,572 11,261 15,036 15,162 19,952 56 51.3 64.8 64.8 93.6 20 18.9 26.3 26.4 40.1 76 70.2 91.1 91.2 133.7 1,234 2,551 5,507 12,058 3,996 7,602 15,330 34,383 2,762 5,051 9,823 10,342 1,234 2,551 5,507 5,359 3,996 7,602 15,330 15,701 34.8 41.6 78.5 79.5 16.2 22.7 46.5 41.2 51.0 64.3 125.0 120.8 76 121 155 216 254 Source: Higher Education Loans Board *Provisional 1 Awarding of bursaries to applicants from TVET instituions started in 2013/14 15.27. Table 15.17 presents Government capitation, loan repayment and loans and bursaries awarded from 2012/13 to 2016/17. Total Government capitation on loans and bursaries and the loan repayments to HELB grew by 5.2 per cent to KSh 10.6 billion in 2016/17. During the review period, GOK loan capitation increased to KSh 6.2 billion, while total loan repayment increased to KSh 4.1 billion. 242 Chapter 15: Education and Training Table 15.17: Government Capitation, Loan Repayments and Loans / Bursaries Awarded, 2012/132016/17 KSh Million Year 2012/2013............. GOK Total GOK Total GOK Loans Bursaries Total Loan Capitation and Total Loans Bursary Total Loan Capitation Capitation Repayment Loan Repayment Awarded Awarded and Bursary 2,265.8 182.4 3,251.8 5,700.0 5,097.2 75.7 5,172.9 2013/2014............. 2,965.0 192.0 3,205.0 6,362.0 6,447.1 121.2 6,568.2 2014/2015............. 4,514.0 192.0 3,257.1 7,963.1 6,945.3 155.4 7,100.6 2015/2016............. 5,858.0 192.0 3,982.6 10,032.6 7,573.1 216.3 7,789.4 2016/2017*............ 6,177.8 237.0 4,143.0 10,557.8 9,452.3 254.4 9,706.7 Source: Higher Education Loans Board *Provisional 15.28. Adult Education: Details on adult education enrolment by sex and county from 2015 to 2017 are shown in Table 15.18. Adult education enrolment continued to exhibit a declining trend since 2015. Overall enrolment decreased by 24.1 per cent from 271,769 in 2016 to 206,224 in 2017. Overall, females accounted for 70 per cent of the total adult education enrolment. Only nine counties showed some slight increase in adult education enrolment during the year in review. Marsabit, Lamu and Nyandarua had adult education enrolment below 1,000 while Nairobi County had the highest adult education enrolment at 13,307 in 2017. 15.29. Table 15.19 presents the number of adults who passed proficiency tests and those who registered for KCPE for 2016 and 2017. The number of adult learners who passed proficiency tests decreased by 15.8 per cent from 21,172 in 2016 to 17,827 in 2017. Tharaka-Nithi County recorded the highest number of adult learners who passed proficiency tests while Kwale County had the lowest number. The number of private candidates who registered for KCPE declined by 32.2 per cent from 7,552 in 2016 to 5,120 in 2017. Nairobi City County had the highest number of private candidates who registered for KCPE, whereas, Samburu County had the lowest number. 243 Economic Survey 2018 Table 15.18: Adult Education Enrolment by Sex and County, 2015 - 2017 County Mombasa................... Kwale ......................... Kilifi........................... Tana River.................. Lamu.......................... Taita/Taveta.............. Garissa........................ Wajir.......................... Mandera..................... Marsabit..................... Isiolo.......................... Meru.......................... Tharaka Nithi............. Embu......................... Kitui........................... Machakos................... Makueni..................... Nyandarua................. Nyeri.......................... Kirinyaga................... Murang'a.................... Kiambu...................... Turkana..................... West Pokot................. Samburu..................... Transnzoia................. Uasin Gishu................ Elgeyo/Marakwet...... Nandi......................... Baringo...................... Laikipia...................... Nakuru....................... Narok......................... Kajiado....................... Kericho....................... Bomet........................ Kakamega.................. Vihiga......................... Bungoma................... Busia........................... Siaya........................... Kisumu....................... Homa Bay.................. Migori........................ Kisii............................ Nyamira..................... Nairobi City............... TOTAL Male 1,303 1,482 1,971 1,727 1,115 1,142 3,313 1,684 2,336 1,002 978 3,156 1,623 964 2,239 1,558 1,665 1,458 1,231 1,312 2,244 2,216 1,688 1,981 1,365 1,446 2,087 1,568 2,239 2,860 1,378 9,137 1,881 1,624 2,466 1,771 1,260 1,602 3,189 1,606 853 2,884 3,126 2,393 3,925 2,664 7,364 102,076 2015 Female 2,246 4,844 8,960 4,477 1,950 2,621 3,369 1,825 2,831 1,726 2,095 8,424 4,861 2,646 9,192 5,842 7,083 3,865 4,183 2,346 7,775 4,155 2,279 2,486 2,189 2,040 3,897 2,857 4,146 4,963 2,822 5,945 2,657 2,505 4,863 4,392 2,372 4,032 5,187 3,772 1,935 6,116 7,893 5,086 7,598 5,599 9,205 204,152 Total 3,549 6,326 10,931 6,204 3,065 3,763 6,682 3,509 5,167 2,728 3,073 11,580 6,484 3,610 11,431 7,400 8,748 5,323 5,414 3,658 10,019 6,371 3,967 4,467 3,554 3,486 5,984 4,425 6,385 7,823 4,200 15,082 4,538 4,129 7,329 6,163 3,632 5,634 8,376 5,378 2,788 9,000 11,019 7,479 11,523 8,263 16,569 306,228 Male 498 1,157 1,491 1,206 831 661 4,669 1,379 2,062 425 473 3,875 446 1,179 2,039 946 1,641 1,154 852 845 802 1,596 2,890 1,264 1,522 960 1,451 2,143 1,316 1,798 1,036 7,290 1,457 2,680 2,138 927 2,057 1,442 3,049 1,504 536 2,098 2,935 1,955 2,298 2,905 5,697 85,575 2016 Female 1,265 4,029 8,207 3,771 1,533 1,060 3,478 1,326 2,696 1,341 1,342 11,388 1,606 4,003 9,710 5,726 9,135 3,661 3,348 2,497 2,872 3,509 3,992 1,518 2,490 2,255 2,827 2,518 4,107 3,210 2,665 4,109 2,018 3,972 5,161 2,551 4,510 5,228 4,643 3,810 1,839 4,541 7,770 4,089 5,278 5,314 8,276 186,194 Source: Directorate of Adult Education, Ministry of Education *Provisional .. Data not available 244 Total 1,763 5,186 9,698 4,977 2,364 1,721 8,147 2,705 4,758 1,766 1,815 15,263 2,052 5,182 11,749 6,672 10,776 4,815 4,200 3,342 3,674 5,105 6,882 2,782 4,012 3,215 4,278 4,661 5,423 5,008 3,701 11,399 3,475 6,652 7,299 3,478 6,567 6,670 7,692 5,314 2,375 6,639 10,705 6,044 7,576 8,219 13,973 271,769 Male 1,434 725 844 899 276 518 3,034 1,350 1,487 119 328 2,070 488 740 1,385 951 1,978 262 761 363 705 3,426 1,900 1,060 1,377 688 1,267 1,827 2,080 1,705 757 3,602 .. 2,021 1,405 645 914 607 832 1,259 719 2,270 1,937 1,018 2,148 1,728 5,679 63,588 2017* Female 2,213 3,112 5,802 2,271 513 1,395 2,247 1,316 1,913 220 913 5,542 1,810 887 6,990 5,073 7,725 702 2,958 1,024 2,585 6,510 2,483 1,491 2,254 983 2,439 3,671 3,506 2,800 2,145 5,707 .. 5,444 3,087 1,556 2,417 2,142 1,294 3,093 1,953 4,996 4,729 3,739 5,356 4,002 7,628 142,636 Total 3,647 3,837 6,646 3,170 789 1,913 5,281 2,666 3,400 339 1,241 7,612 2,298 1,627 8,375 6,024 9,703 964 3,719 1,387 3,290 9,936 4,383 2,551 3,631 1,671 3,706 5,498 5,586 4,505 2,902 9,309 .. 7,465 4,492 2,201 3,331 2,749 2,126 4,352 2,672 7,266 6,666 4,757 7,504 5,730 13,307 206,224 Chapter 15: Education and Training Table 15.19: Adults who passed Proficiency Tests and Private Candidates Registered for KCPE by Sex and County, 2016 - 2017 Number 2016 County Male PTP Female 2017 KCPE Male Female Male PTP Female KCPE Male Female Mombasa.................... 28 61 129 74 24 43 68 Kwale .......................... 38 139 23 16 17 46 12 7 Kilifi............................ 29 191 128 71 56 321 75 62 Tana River................... 69 240 56 92 77 147 21 4 Lamu........................... 71 211 10 20 80 363 16 14 63 Taita/Taveta............... 98 143 13 15 71 265 11 10 Garissa......................... 718 533 132 21 523 112 153 37 Wajir........................... 189 124 28 4 86 24 15 3 Mandera...................... 273 187 68 14 173 79 48 7 Marsabit...................... - - - - 0 0 26 17 Isiolo........................... 24 76 24 16 16 66 12 14 Meru........................... 402 655 208 133 288 953 175 117 Tharaka Nithi.............. 65 245 45 21 452 900 34 11 Embu.......................... 99 429 80 51 31 112 32 35 Kitui............................ 37 23 37 23 210 1,034 26 10 Machakos.................... 136 674 34 47 141 658 32 16 Makueni...................... 414 2,121 17 6 72 578 32 6 Nyandarua.................. 29 191 69 52 81 368 18 16 Nyeri........................... 59 234 57 26 103 277 34 15 Kirinyaga.................... 48 148 192 129 86 158 251 162 Murang'a..................... 193 58 15 41 50 186 27 11 Kiambu....................... 88 297 269 256 148 282 89 73 Turkana...................... 68 55 150 99 71 116 153 90 West Pokot.................. 39 64 28 30 45 66 6 4 Samburu...................... 39 97 37 23 26 52 7 2 Transnzoia.................. 44 77 86 72 72 95 66 54 26 Uasin Gishu................. 66 70 95 77 131 199 25 Elgeyo/Marakwet....... 102 186 14 24 42 56 21 16 Nandi.......................... 73 182 214 282 96 213 146 91 Baringo....................... 14 13 9 9 18 113 3 18 Laikipia....................... 35 96 35 12 25 94 32 2 Nakuru........................ 411 502 149 47 286 512 28 36 Narok.......................... 149 148 44 40 107 169 44 36 Kajiado........................ 474 1,503 103 111 120 454 89 60 Kericho........................ 107 290 108 77 110 390 112 168 Bomet......................... 47 139 9 7 25 213 14 8 Kakamega................... 572 1,042 175 164 144 323 119 107 Vihiga.......................... 69 143 57 40 33 177 38 37 Bungoma.................... 149 382 83 48 311 76 102 125 Busia............................ 69 174 54 37 55 209 21 18 Siaya............................ 67 202 41 31 54 200 39 52 Kisumu........................ 66 611 32 49 147 376 110 208 65 Homa Bay................... 383 797 131 103 18 88 83 Migori......................... 36 22 49 41 150 456 10 4 Kisii............................. 141 343 434 360 109 285 48 38 Nyamira...................... 81 214 81 71 125 379 45 16 Nairobi........................ 187 245 401 317 303 136 327 234 TOTAL 6,595 4,253 3,299 5,408 2,895 2,225 14,577 Source: Directorate of Adult Education; Ministry of Eduction *Provisional PTP-Proficiency Test Pass 245 12,419 Overview Economic Survey 2018 Chapter 16 Health and Vital Statistics T he Government has been implementing various programs and projects aimed at attaining a high standard of health as enshrined in the constitution, as well as the targets set in the country’s long-term development plan, Vision 2030. This is in addition to attainment of global commitments such as goal number three of the Sustainable Development Goals. The programs undertaken in the review period included; the Linda Mama (formerly the Free Maternity), the Health Insurance Subsidy Program (HISP), and the Health Insurance for the Elderly and People with Severe Disabilities (E&PWSD) Program. However, during the review period the sector experienced some challenges including disruption of services due to industrial unrest by doctors and nurses. 16.2. The National Government expenditure on Health services is expected to grow by 15.9 per cent from KSh 56.6 billion in 2016/17 to KSh 65.6 billion in 2017/18. Recurrent expenditure is expected to remain at KSh 29.8 billion during the review period, while development expenditure is expected to grow by 33.6 per cent to KSh 35.8 billion. 16.3. Pneumonia, malaria and cancer remained among the top three leading causes of death in the country. The national Full Immunization Coverage (FIC) for children below one year decreased from 69 per cent in 2016 to 63 per cent in 2017. 16.4. The number of registered medical personnel increased by 9.0 per cent to 160,749 in 2017. In the same period, total enrolment of undergraduate and postgraduate medical students increased by 13.4 per cent from 7,989 in 2015/16 to 9,058 in 2016/17. 16.5. The membership in National Hospital Insurance Fund (NHIF) rose by 11.1 per cent from 6.1 million in 2015/16 to 6.8 million in 2016/17, with the bulk (56.8%) coming from the formal sector. During this period, the informal sector registered a growth of 17.0 per cent compared to a 7.0 per cent growth in the formal sector. Total contributions received from members increased by 9.3 per cent to KSh 34.9 billion in 2016/2017. xpenditure 16.6. Table 16.1 presents National government expenditure on health services from 2013/14 on Health to 2017/18. Expenditure on health services is expected to increase by 15.9 per cent from Services KSh 56.6 billion in 2016/17 to KSh 65.6 billion in 2017/18. During the review period, recurrent expenditure on health services is expected to remain at KSh 29.8 billion. Recurrent expenditure on hospital services is expected to expand by 15.0 per cent to 15.1 billion and account for over half of total recurrent expenditure in 2017/18. During the review period, development expenditure on health services is expected to increase by 33.6 per cent to KSh 35.8 billion. Development expenditure on public health services is expected to grow by almost five times to KSh 23.6 billion and account for 66.0 per cent of total development expenditure in 2017/18. 246 Chapter 16: Health and Vital Statistics Table 16.1: Expenditure on Health Services, 2013/14 - 2017/18 KSh Million 2016/17* 2017/18+ 2013/14 2014/15 2015/16 Recurrent Outpatient services .. .. .. ………………………..……………………….. 729.93 1,531.53 1,464.21 1,308.66 Hospital services .. .. .. …………………………..……………………….. 16,776.14 13,766.20 11,897.10 13,159.55 Public health services .. .. .. ……………………………………………….. 1,163.04 3,651.59 1,723.59 6,365.65 Health expenditure not elsewhere classified .... .. ..……………………….. 2,905.56 9,358.42 4,419.39 8,973.02 Sub-Total 21,574.67 28,307.73 19,504.30 29,806.89 Development Outpatient services .. .. .. ………………………..……………………….. 5,288.80 5,251.48 4,978.63 10,319.44 Hospital services .. .. .. …………………………..……………………….. 2,660.61 802.00 5,476.58 5,725.14 Public health services .. .. .. ……………………………………………….. 8,465.28 6,967.62 4,428.18 5,103.20 Health expenditure not elsewhere classified .... .. ..……………………….. 207.92 8,452.85 266.95 5,651.28 Sub-Total 16,622.62 21,473.95 15,150.34 26,799.07 TOTAL .. .. .. .. .. ………………… 38,197.29 49,781.69 34,654.64 56,605.96 811.63 15,139.27 7,211.27 6,622.85 29,785.02 8,412.43 1,538.02 23,603.39 2,214.91 35,768.74 65,553.76 Source: KNBS * Provisional + Revised estimates 16.7. Information on the number of registered deaths by major causes from 2013 to 2017 is presented in Table 16.2. Pneumonia, Malaria and Cancer remained the leading causes of death, with pneumonia accounting for 22.0 per cent of the major causes of deaths in 2017. Other major causes of death included Tuberculosis, HIV/AIDS and Anaemia. Table 16.2: Registered Deaths by Major Causes, 2013 – 2017 Number Cause 2013 2014 2015 2016 2017* Malaria…………………………. 23,789 22,948 20,691 16,000 17,553 Pneumonia…………………….. 22,918 21,640 22,473 21,295 21,584 Cancer…………………………. 13,720 14,175 15,714 15,762 16,953 11,448 HIV/AIDS……………………………. 12,235 11,131 9,471 8,758 Tuberclosis………………………… 11,186 10,986 10,183 4,735 9,081 Anaemia………………………..8,124 Road traffic accidents1…………………. 4,942 8,469 8,472 8,165 8,294 4,710 5,488 4,809 3,715 Other accidents……………….. 4,857 4,187 3,887 4,166 3,874 Heart disease…………………. 4,544 5,030 5,799 5,353 4,786 Menengitis……………………………. 4,265 4,555 4,499 4,374 3,540 109,793 108,935 108,337 94,130 98,138 84,539 89,676 91,868 96,507 90,949 Total……………………………. 194,332 198,611 200,205 190,637 189,087 Sub-total Others………………… Source: Civil Registration Service *Provisional 1 The data includes deaths that occur after the road accidents have been reported 247 Economic Survey 2018 16.8. Table 16.3 presents FIC for children under one year by County from 2014 to 2017. The national full immunization coverage declined from 69.0 per cent in 2016 to 63.0 per cent in 2017. During this period, most of the counties experienced a decrease in the coverage with only 10 counties experiencing an increase. The highest decrease in coverage occurred in Narok and Nyamira Counties at 24.1 and 22.3 percentage points, respectively, while Laikipia and Turkana Counties had the highest increase at 22.9 and 16.5 percentage points, respectively. The lowest coverage was recorded in Mandera County at 25.4 per cent in 2017. 16.9. Health facility based incidence of disease for the period 2013 to 2017 is shown in Table 16.6. Morbidity decreased by 16.4 per cent from 50.8 million in 2016 to 42.3 million in 2017. This decrease is partly attributed to the public doctors and nurses strikes in 2017 which led to reduced number of patients visiting the public health facilities. Incidence of respiratory system diseases and malaria accounted for 34.0 per cent and 18.7 per cent, respectively of all incidences in 2017. 248 Chapter 16: Health and Vital Statistics Table 16.3: Full Immunization Coverage (FIC), Rate of Under-One Year Old Children by County 2013-2017 2013 County Number 2015 2014 % Number % Number 2016* % Number 2017* % Number % Mombasa…………………….. 26,761 79.7 26,200 72.8 31,662 86.9 29,963 78.7 28,782 74.3 Kwale…………………….. 23,438 85.2 24,185 66.5 28,033 98.2 23,825 80.0 18,609 58.8 Kilifi…………………….. 37,051 80.9 36,522 96.0 38,844 81.3 36,866 74.1 29,022 55.1 6,553 57.1 6,501 56.1 6,340 60.1 6,670 60.8 6,343 48.1 Tana River…………………….. Lamu…………………….. 2,990 83.2 3,462 86.5 3,504 90.3 3,012 74.9 2,916 70.4 Taita Taveta…………………….. 6,886 77.6 8,003 62.6 7,617 82.1 7,074 72.4 6,369 62.6 Garissa…………………….. 11,768 129.7 15,157 61.9 14,555 61.5 15,852 64.6 13,294 55.2 Wajir…………………….. 10,706 139.6 12,352 47.8 14,154 55.2 13,510 50.9 12,333 48.6 Mandera…………………….. 7,813 69.9 10,212 20.4 11,137 26.9 12,790 25.2 11,303 25.4 Marsabit…………………….. 7,671 92.7 9,425 71.7 9,384 71.9 8,786 71.3 7,235 56.3 Isiolo…………………….. 4,255 89.6 4,136 61.3 4,240 65.7 3,797 56.2 3,131 46.3 Meru…………………….. 24,105 59.3 28,522 57.9 27,860 64.6 26,719 60.4 24,716 58.2 Tharaka Nithi…………………….. 8,748 82.8 7,357 47.7 7,031 60.2 6,557 56.8 6,301 57.1 Embu…………………….. 13,193 96.1 11,878 73.3 12,303 84.3 11,698 78.8 11,652 81.3 Kitui…………………….. 24,480 72.2 28,282 69.6 25,160 74.0 23,388 67.8 23,165 65.2 Machakos…………………….. 25,828 83.8 27,266 77.7 27,216 78.7 27,017 79.3 24,699 76.7 Makueni…………………….. 20,361 79.7 23,603 81.0 21,983 84.0 21,983 80.6 20,561 76.9 Nyandarua……………………… 12,919 69.5 15,030 85.5 15,129 85.7 14,237 79.2 12,348 65.5 Nyeri………………………. 13,780 77.2 15,212 75.8 15,031 100.7 14,137 93.8 13,620 75.0 Kirinyaga…………………. 11,169 80.0 11,166 85.2 11,662 87.6 11,699 86.2 11,341 79.9 Muranga………………….. 14,476 56.1 21,316 85.6 20,553 85.2 18,587 79.6 17,658 67.4 Kiambu………………….. 34,402 67.6 45,881 92.3 48,728 100.7 51,009 104.3 53,339 102.9 Turkana…………………….. 15,248 66.5 20,390 75.0 18,862 64.1 22,512 71.8 23,111 88.3 West Pokot…………………….. 11,812 48.4 14,819 63.3 13,738 65.6 11,802 54.5 10,957 39.5 5,313 52.9 5,797 61.3 5,531 57.7 5,464 55.2 5,402 47.3 Trans Nzoia…………………….. 18,880 Samburu…………………….. 55.0 22,188 59.8 23,348 57.7 23,895 56.8 17,113 43.6 Uasin Gishu…………………….. 24,653 73.8 26,780 73.6 27,980 71.9 27,539 64.5 28,595 74.7 Elgeyo Marakwet…………………….. 10,310 65.9 12,280 75.7 12,006 72.9 11,087 64.1 9,776 54.8 Nandi…………………….. 20,009 70.6 22,971 67.5 21,417 60.4 18,260 50.5 18,952 58.5 Baringo…………………….. 14,258 64.8 15,793 58.7 14,526 58.8 14,852 57.7 13,875 55.4 Laikipia…………………….. 11,755 84.3 11,453 61.9 12,944 68.9 12,512 56.2 12,623 79.1 Nakuru…………………….. 46,781 79.2 54,150 89.3 53,867 88.0 51,329 80.9 57,324 84.7 Narok…………………….. 24,394 57.0 26,216 80.0 24,405 62.6 26,092 70.6 22,659 46.5 Kajiado…………………….. 16,352 58.4 22,999 69.6 22,941 74.6 26,857 83.4 24,007 74.7 Kericho…………………….. 14,727 52.5 20,908 63.6 19,166 59.1 18,075 56.1 16,082 51.5 Bomet…………………….. 17,144 58.3 19,785 53.8 19,372 60.9 19,231 58.7 20,015 60.3 Kakamega…………………….. 56,899 85.9 59,438 79.4 54,651 78.7 53,736 75.2 47,725 69.3 Vihiga…………………….. 18,439 95.6 17,701 84.6 17,339 79.3 16,326 71.7 10,649 53.1 Bungoma…………………….. 40,314 60.5 46,262 76.0 44,131 71.3 39,143 61.0 34,836 59.6 Busia…………………….. 23,046 117.1 27,593 82.6 22,732 73.1 20,998 69.5 17,342 55.6 Kisumu…………………….. 27,079 74.2 29,981 75.8 30,178 78.0 31,865 80.5 28,088 68.4 Siaya…………………….. 24,423 76.6 26,870 76.5 25,838 78.7 26,045 77.2 22,757 63.6 Homabay…………………….. 31,377 80.5 30,786 67.2 28,540 66.4 30,914 70.2 25,447 58.1 Migori…………………….. 33,142 80.9 33,624 75.8 34,976 76.9 35,549 73.9 29,626 64.3 Kisii…………………….. 31,422 73.7 34,341 81.5 32,567 65.4 30,983 62.0 24,396 50.9 Nyamira…………………….. 20,032 97.1 20,690 98.0 20,040 89.5 20,429 89.1 15,509 66.8 Nairobi City……………… 96,196 75.1 113,328 72.5 109,967 77.2 116,608 75.2 119,291 84.2 1,003,358 76.0 1,128,811 74.0 1,113,188 73.4 1,101,279 69.0 1,014,894 63.0 Kenya…………………….. Source: Ministry of Health, Division of Family Health *Provisional 1 Children who were born between April previous year and March current year and who received all basic vaccination 249 % 20.2 34.0 8.4 5.1 0.8 2.9 2.1 2.5 2.5 1.8 19.8 100 Source: Ministry of Health, Health Management Information System * Provisional DISEASE 2013 Number Malaria…………………………………. 8,808,471 Disease of the Respiratory System ………14,823,864 Diseases of the Skin (Incl. Ulcers)………. 3,648,361 Diarrhoea Diseases………………………2,226,107 Intestinal Worms………………………….. 349,632 Pneumonia……………………………….. 1,282,996 Accidents (incl. fractures, burns etc)………..927,861 Rheumatism, Joint pains etc………………………… 1,081,245 Urinary Tract Infections…………………1,091,371 Eye Infection…………………………….778,073 All Other Diseases ………………………….. 8,618,536 TOTAL…………………………………. 43,636,517 Table 16.4: Facility Based Incidence of Disease, 2013-2017 2014 Number % 9,660,992 20.5 17,998,237 38.3 4,556,925 9.7 3,013,256 6.4 357,319 0.8 1,509,851 3.2 1,079,953 2.3 1,352,350 2.9 1,361,275 2.9 1,002,778 2.1 5,145,714 10.9 47,038,650 100.0 2015 Number 7,663,625 18,264,778 4,755,915 3,115,168 326,297 1,508,212 1,154,067 1,474,433 1,541,276 988,183 5,112,489 45,904,443 % 16.7 39.8 10.4 6.8 0.7 3.3 2.5 3.2 3.4 2.2 11.1 100 2016 Number 8,325,387 19,621,737 4,409,229 2,892,638 763,793 1,616,913 1,311,911 1,572,172 1,697,479 1,004,923 7,537,918 50,754,100 % 16.4 38.7 8.7 5.7 1.5 3.2 2.6 3.1 3.3 2.0 14.9 100 2017* Number 7,958,213 14,482,269 3,261,935 2,601,827 763,463 1,208,592 1,135,456 1,246,731 1,555,733 655,815 7,466,490 42,336,524 % 18.7 34.0 7.7 6.1 1.8 2.8 2.7 2.9 3.7 1.5 17.5 100 Economic Survey 2018 250 Chapter 16: Health and Vital Statistics 16.10. Details on the number of registered health personnel and those in training from 2013 to 2017 are shown in Table 16.5. The total number of registered personnel increased from 147,439 in 2016 to 160,749 in 2017. During the review period, the number of registered health personnel in all cadres with the exception of public health technicians increased. The number of registered health personnel per 100,000 population increased from 329 in 2016 to 349 in 2017. The highest increase in the number of personnel per 100,000 population was recorded for registered nurses, from 106 in 2016 to 112 in 2017. The number of students intraining increased from 17,224 in 2015/2016 to 23,887 in 2016/2017. Table 16.5: Registered Health Personnel and those in Training, 2016-2017 Registered Health Personnel In-Training 2017* 2016 + No. Per No. Per Type of Personnel 1 Number 100,000 Number 100,000 2015/2016 2016/2017* Population Population Medical Officers……………………….10,376 23 10,921 24 3,213 3,289 Dentists…………………………. 1,149 3 1,206 3 251 286 Pharmacists…………………….. 3,169 7 3,373 7 272 491 Pharmaceutical Technologists… 8,673 19 9,358 20 783 1,021 4,002 9 4,819 10 343 675 (BSc) Nurses…………………… Registered Nurses…………….. 47,480 106 51,420 112 3,142 5,026 Enrolled Nurses……………….. 22,820 51 23,068 50 86 263 17,092 38 18,759 41 2,600 2,960 Clinical Officers………………… Public Health officers………….. 12,564 28 14,855 32 3,360 5,920 Public Health Technicians……… 6,752 15 6,752 15 88 201 Laboratory Technologists…….. 6,651 15 7,298 16 340 1,139 Laboratory Technicians……….. 1,734 4 2,024 4 396 58 Nutritionists & Dieticians………. 2,107 5 2,598 6 1,167 1,312 Nutrition & Dietetic Technologists.. 2,300 5 3,681 8 883 931 Nutrition & Dietetic Technicians.. 570 1 617 1 300 315 Total…………………………….. 147,439 329 160,749 349 17,224 23,887 Source: Kenya Medical Practitioners & Dentists Board, Pharmacy & Poisons Board, Clinical Officers' Council, Nursing Council of Kenya, Kenya Medical Laboratory Technicians & Technologists Board, Kenya Nutritionists & Dieticians Institute, Public Health Officers & Technicians Council * Provisional + Revised 1 Cummulative number of health personnel 16.11. The number of undergraduate and postgraduate medical students is expected to increase by 41.9 per cent from 13,798 in 2016/17 to 19,583 in the 2017/18 academic year as shown in Table 16.6. The number of undergraduate students pursuing medicine and surgery are expected to increase from 4,077 in 2016/17 to 4,304 in the 2017/18 academic year. During the same period, the number of undergraduate students undertaking pharmacy and nursing are expected to grow by 11.6 per cent to 1,687 and 7.3 per cent to 4,104, respectively. Postgraduate medical students are expected to increase by 3.6 per cent to 2,468 in 2017/18. 16.12. Table 16.7 shows the number of middle level medical students registered at the Kenya Medical Training College from 2012/13 to 2016/17. The total medical trainees increased by 13.4 per cent from 7,989 in 2015/16 to 9,058 in 2016/17, mainly attributable to an increase in trainees in diploma courses which accounted for 72.9 per cent of the total students. The highest number of medical trainees at the diploma level, were enrolled for Community Health Nursing in 2016/17. At the certificate level, the highest number of students were enrolled for Health Records and Information Technology. 251 Male Female 1,706 1,573 1,197 2,781 201 168 571 675 550 419 4,225 5,616 706 724 4,931 6,340 Medical Course Male Female Medicine & Surgery…………. 1,784 1,673 Nursing………………………… 1,042 1,531 Dental Surgery………………… 147 144 Environmental Health………. 570 473 Pharmacy……………………… 389 265 Clinical Medicine…………….. Public Health………………… Medical Laboratory Sciences.. Nutrition & Dietetics……….. Physiotherapy………………… Occupational Therapy………. Medical Education/Records…. Medical Psychology…………. Sub-Total……………………3,932 4,086 Post Graduate 662 461 Total 4,594 4,547 *Provisional ,, Data unavailable Total 3,457 2,573 291 1,043 654 8,018 1,123 9,141 2014/15 2013/14 Total 3,279 3,978 369 1,246 969 9,841 1,430 11,271 Male Female Total 2,068 1,425 3,493 1,041 1,841 2,882 157 163 320 532 539 1,071 544 454 998 4,342 4,422 8,764 1,032 670 1,702 5,374 5,092 10,466 2015/16 Table 16.6: Undergraduate and Post Graduate Medical Students by Course and Sex, 2013/14-2017/18 Male Female 2,394 1,683 1,414 2,411 204 208 789 801 822 690 5,623 5,793 1,427 955 7,050 6,748 2016/17 Total 4,077 3,825 412 1,590 1,512 11,416 2,382 13,798 Male Female 2,579 1,725 1,543 2,561 248 264 890 898 929 758 494 378 338 340 887 581 215 523 162 157 25 20 243 250 48 59 8,601 8,514 1,486 982 10,087 9,496 2017/18* Total 4,304 4,104 512 1,788 1,687 872 678 1,468 738 319 45 493 107 17,115 2,468 19,583 Economic Survey 2018 252 Chapter 16: Health and Vital Statistics Table 16.7: Middle Level Medical Trainees+ in Public Medical Training Colleges by Course, 2012/132016/17 Course 2012/13 Certificate in: Community Nursing………………………………. 278 Medical Engineering Technology……………….. 84 Health Records & Information Technology…….. 781 Nutrition and Dietetics…………………………….. 180 Certificate in Orthopaedic Plaster Technology… Environmental Health Sciences………………… SubTotal 1,323 Diploma in: Community Health Nursing………………………. 2,662 Nutrition and Dietetics…………………………….. 138 Environmental Health Sciences…………………. 589 Medical Laboratory Sciences…………………….. 411 1,156 Clinical Medicine & Surgery………………………. Medical Engineering Technology……………….. 75 Community Oral Health…………………………… 41 Dental Technology…………………………………. 39 Health Records and Information technology….. 255 Occupational Therapy…………………………….. 44 Orthopaedic Technology…………………………. 35 Pharmacy…………………………………………… 448 Physiotherapy………………………………………. 143 165 Medical Imaging Sciences……………………….. Optometry…………………………………………… 18 Health Education & Promotion………………….. Registered Nursing-Mental Health &Psychiatry 50 Neurophysiology5 16 Sub Total 6,285 Higher Diploma in: Pharmacy………………………………………….. 5 Environmental Health Sciences1………………. 6 Medical Laboratory Sciences2…………………… 15 Nursing3……………………………………………. 52 4 Clinical Medicine and Surgery …………………. 83 Medical Engineering5…………………………….. 27 Ultra Sound Image Pattern Analysis……………. 21 Radiography (Therapy)……………………………. 6 Community Health & HIV/AIDS Care……………. 58 Health Education & Promotion………………….. 18 Medical Education…………………………………. 17 Orthopaedic manual therapy…………………….. Health Systems Management……………………… SubTotal 308 Total 7,916 2013/14 2014/15 2015/16 Number 2016/17* 279 94 528 318 30 1,219 280 80 712 317 60 1,449 248 60 857 341 54 1,560 245 64 1,125 293 106 104 1,937 2,708 187 568 459 1,125 118 47 36 381 44 25 434 109 143 21 93 6,498 2,745 317 520 459 1,140 77 42 34 381 50 25 444 169 152 24 30 150 6,759 2,165 237 509 369 1,044 90 42 32 524 42 20 356 110 159 22 60 150 5,931 2,848 322 477 404 991 93 45 33 423 47 27 468 168 132 28 98 6,604 - - - - 4 18 163 112 36 3 33 17 11 13 3 13 138 124 1 17 223 136 31 5 19 9 27 30 39 2 12 11 12 15 - - - 410 8,127 369 8,577 498 7,989 5 5 251 133 16 40 6 4 27 20 10 517 9,058 Source: Kenya Medical Training College, Ministry of Health * Provisional + Revised 1 Includes food science and inspection, epidemiology, solid waste and occupational health 2 Includes clinical chemistry, haematology, histology, parastology, virology, microbiology, bacterialogy and blood transfusion sciences Includes mental & Psychiatry Nursing, Community Health Nursing, pallistive care,nephrology, anaesthetic, intensive care,ophthalmic and PeriOperative nursing 3 4 Includes paediatrics, orthopaedics, anesthesia, lungs & skin, ENT & audiology, mental health & psychiatry, reproductive health, opthalmology, advanced refraction & low vision and opthamology & cataract surgery 5 Includes Therapeutic equipment option, diagnostic equipment 253 Economic Survey 2018 16.13. National Hospital Insurance Fund (NHIF) Membership: The number of registered active members of the NHIF from 2012/13 to 2016/17 is shown in the Table 16.8 Overall, membership rose by 11.1 per cent from 6,124.3 thousand in 2015/16 to 6,804.9 thousand in 2016/17. During the year under review, the formal sector contributed the bulk of the membership with a share of 56.9 per cent. Over the same period, the informal sector membership registered a growth of 17.0 per cent compared to a 7.0 per cent rise in the formal sector. Table 16.8 : Registered Active Members of the National Hospital Insurance Fund, 2012/13-2016/17 Number ('000') 2012/13 2013/14 2014/15+ 2015/16 2016/17* Formal Sector………………2,679.4 2,952.4 3,221.6 3,616.2 3,870.4 Informal Sector……………….. 1,115.4 1,498.0 1,991.6 2,508.1 2,934.4 Total……………………..3,794.8 4,450.4 5,213.2 6,124.3 6,804.9 Source: National Hospital Insurance Fund + Revised * Provisional 16.14. NHIF Receipts and Pay Outs: Table 16.9 presents NHIF receipts and pay outs from 2012/13 to 2016/17. Receipts from members increased by 9.4 per cent from KSh 32.0 billion in 2015/16 to KSh 35.0 billion in 2016/17. During the review period, the proportion of pay outs to receipts increased by 30.8 percentage points to 75.2 per cent. This increase is partly attributed to enhanced inpatient and outpatient payouts rolled out towards the end of 2016. Table 16.9: NHIF Receipts and Pay Outs, 2012/2013-2016/2017 KSh Million 2012/13 2013/14 2014/15 2015/16 + Receipts …… 2016/17* 12,054.9 13,629.1 15,826.2 31,995.7 34,978.2 Pay outs …………………………………. 8,236.2 Proportion of pay outs to receipts 68.3 (%)… Source: National Hospital Insurance Fund 9,401.4 10,891.1 14,217.0 26,309.1 69.0 68.8 44.4 75.2 + * Provisional + Revised 254 Chapter 17: Governance, Peace and Security Governance, Peace and Security Overview Chapter 17 T he total number of crimes reported to the police increased by 1.3 per cent from 76,98 in 2016 to 77,992 in 2017. Among the crimes reported to the police, other offenc against persons: assault, creating disturbance and affray collectively accounted for 28 per cent of all reported cases. Stealing accounted for 14.9 per cent of all reported cases in 201 Nairobi City County command station recorded the highest number of cases, representi 9.7 per cent of all cases reported to the police. The total number of persons reported to ha committed criminal offences decreased by 2.6 per cent from 75,007 in 2016 to 73,069 in 201 17.2. The total number of cases handled by the Ethics and Anti-Corruption Commissio (EACC) increased by 2.3 per cent from 7,917 in 2015/16 to 8,096 in 2016/17. Cases referr to other investigative agencies decreased from 215 in 2015/16 to 136 in 2016/17 wh corruption cases referred for investigation declined by 3.1 per cent from 3,856 in 2015/16 3,735 in 2016/17. The total number of ethics and corruption reports forwarded to Office of t Director of Public Prosecution (ODPP) decreased from 167 in 2015/16 to 143 in 2016/1 In 2017, a total of 384 environmental crimes were reported to the National Environme Management Authority (NEMA), of which 253 were related to illegal movement or dumpi of waste. 17.3. The number of cases filed in courts decreased by 25.6 per cent from 462,792 in 201 to 344,180 in 2017. Cases disposed of decreased by 26.6 per cent from 426,603 in 2016 313,075 in 2017. Pending cases increased by 6.2 per cent from 499,341 in 2016 to 530,446 2017. 17.4. Total persons committed to prison decreased marginally from 210,227 in 2016 209,870 in 2017. The number of convicted prisoners decreased by 2.5 per cent from 82,43 to 80,404 while those remanded increased by 1.3 per cent from 127,794 in 2016 to 129,46 in 2017. Overall, 39.3 per cent of the persons committed to prison in 2017 comprised convicted prisoners. The daily average prison population increased from 50,900 in 2016 51,021 in 2017. Public Safety, Law and Order 17.5. Crimes reported to police for the period 2013 to 2017 are shown in Table 17.1. To number of crimes reported to police increased by 1.3 per cent from 76,986 in 2016 to 77,99 in 2017. Other offences against persons increased by 1.0 per cent accounting for 28.9 p cent for all crimes reported to police. Reported cases of stealing increased by 12.5 per cent 11,656, accounting for 14.9 per cent of all reported cases of crimes. Offences against morali and those involving dangerous drugs decreased by 11.8 per cent and 9.7 per cent, respective Cases related to dangerous drugs and offences against morality accounted for 7.1 per cent an 7.0 per cent, respectively, in 2017. 255 Economic Survey 2018 Table 17.1: Crimes Reported to the Police, 2013 - 2017 Number Crimes 1 2013 2014 Homicide …………………………… …………………………… 2,878 2,649 2015 2,648 2016 2017* 2,751 2,774 6,228 5,492 Other offences against persons …………………………… 19,344 …………………………… 19,911 21,174 22,295 22,515 Offences against morality …………………………… 4,779 …………………………… 5,184 6,164 Robbery …………………………… …………………………… 3,551 3,011 2,865 2,697 2,713 Breakings …………………………… …………………………… 6,397 5,656 5,591 5,621 6,131 Theft of stock …………………………… …………………………… 1,965 1,848 1,961 1,918 2,136 Stealing …………………………… …………………………… 11,455 10,042 9,528 10,361 11,656 Theft by servant …………………………… …………………………… 2,702 2,279 2,184 2,440 2,632 Theft of Vehicles and other thefts ……… 1,111 1,355 1,404 Dangerous drugs …………………………… …………………………… 4,316 4,850 5,525 6,160 5,565 120 139 69 Criminal damage …………………………… …………………………… 3,603 3,709 3,983 4,307 4,262 Economic crimes …………………………… …………………………… 2,750 3,038 3,244 3,503 3,695 92 75 Offences involving police officers …………………………… 95 …………………………… 53 71 57 86 Offences involving tourists ……………………………14…………………………… 21 19 15 15 7,047 6,772 76,986 77,992 1,631 1,239 Traffic offences …………………………… …………………………… 45 100 57 138 Corruption …………………………… …………………………… 79 Other penal code offences …………………………… 6,250 …………………………… 5,648 6,223 Total 71,832 69,376 72,490 Source: Kenya Police Service * Provisional 1 Refer to appendix 17.1 for detailed description of crimes 17.6. Table 17.2 shows crimes reported to police by command stations for the period 2014 to 2017. In 2017, 9.7 per cent of all reported crimes were in Nairobi city county command station. During the review period, 30 command stations recorded decline in all crimes reported to the police. Kakamega county command station recorded the highest decline of crimes reported of 33.5 per cent from 2,382 in 2016 to 1,584 in 2017. 256 Chapter 17: Governance, Peace and Security Table 17.2: Crimes Reported to Police by Command Station, 2014 - 2017 S/No Command station 2014 Mombasa …………………………………... 2,946 1 2 Kwale…………………………………… 958 3 Kilifi …………………………………… 2,362 Tana River…………………………………… 525 4 5 Lamu…………………………………… 316 Taita Taveta …………………………………… 1,047 6 7 Garrissa…………………………………… 850 8 Wajir…………………………………… 438 Mandera…………………………………… 252 9 Marsabit…………………………………… 370 10 11 Isiolo…………………………………… 219 12 Meru…………………………………… 1,971 Tharaka-Nithi…………………………………… 659 13 14 Embu…………………………………… 824 15 Kitui…………………………………… 722 Machakos …………………………………… 738 16 Makueni …………………………………… 561 17 Nyandarua…………………………………… 1,654 18 19 Nyeri…………………………………… 1,632 Kirinyaga…………………………………… 1,776 20 Muranga'…………………………………… 2,501 21 22 Kiambu…………………………………… 4,449 Turkana…………………………………… 787 23 West Pokot…………………………………… 739 24 Samburu…………………………………… 371 25 Trans Nzoia…………………………………… 1,610 26 Uasin Gishu …………………………………… 1,872 27 Elgeyo/Marakwet…………………………………… 28 892 29 Nandi…………………………………… 1,090 30 Baringo…………………………………… 923 31 Laikipia…………………………………… 752 Nakuru …………………………………… 4,525 32 33 Narok…………………………………… 1,626 34 Kajiado…………………………………… 1,502 35 Kericho…………………………………… 1,577 36 Bomet…………………………………… 1,089 Kakamega…………………………………… 2,444 37 38 Vihiga…………………………………… 771 Bungoma…………………………………… 2,150 39 40 Busia…………………………………… 931 41 Siaya…………………………………… 1,452 Kisumu …………………………………… 2,249 42 Homa Bay…………………………………… 1,320 43 44 Migori…………………………………… 1,054 45 Kisii…………………………………… 1,933 46 Nyamira ………………………………….. 878 Nairobi City ……………………………………6,732 47 48 49 KAPU 1…………………………………… 148 1 Railways Police …………………………………… 189 Kenya 69,376 2015 3,194 1,097 2,199 622 492 961 638 317 271 468 213 4,215 628 848 1,573 1,461 1,025 1,446 1,668 1,177 2,363 4,768 974 684 355 1,781 1,654 571 989 1,035 830 4,384 1,335 1,256 1,510 968 2,514 1,146 2,852 1,553 1,493 2,293 1,568 1,282 2,018 1,124 4,383 2016 3,034 1,037 2,254 453 434 755 525 343 254 675 507 5,117 722 1,433 1,679 2,452 1,630 1,473 1,792 1,656 2,260 6,006 927 795 361 1,457 2,068 579 1,105 827 1,061 4,133 1,308 1,435 1,568 897 2,382 886 2,422 1,633 1,470 2,026 1,400 1,303 2,180 1,055 4,954 132 141 129 162 122 101 72,490 76,986 77,992 Source: Kenya Police Service * Provisional 1 Kenya Airport Police Unit (KAPU) and Railways Police are fully fledged police command stations 257 Number 2017* 2,847 851 1,692 402 385 679 452 425 446 736 368 5,151 846 1,633 1,946 2,633 1,593 1,402 1,657 1,613 2,402 5,603 1,092 670 432 1,674 2,072 633 1,148 821 1,220 4,313 1,110 1,650 1,524 850 1,584 764 2,269 1,639 1,321 1,858 1,332 1,281 2,218 1,091 7,434 Economic Survey 2018 17.7. Firearms and ammunition recovered or surrendered, and drugs seized for the period 2013 to 2017 are presented in Table 17.3. The number of firearms recovered was 183 in 2017 compared to 436 in 2016. Ammunition recovered were 2,653 in 2017 compared to 4,694 in 2016. Table 17.3: Firearms and Ammunition Recovered or Surrendered, and Drugs Seized, 2013 - 2017 Unit 2013 2014 2015 2016 2017* Rifles …………………………….. Number 169 210 141 85 53 Pis tols …………………………….. Number 77 142 81 152 65 Firearms Recov ered Toy Pis tols …………………………….. Number 39 Total 285 39 108 199 65 391 330 436 183 Firearms Surrendered Rifles …………………………….. Number Pis tols …………………………….. Number 16 1 1 8 - - - - Toy Pis tols …………………………….. Number - - - - Total 1 1 - 16 1 1 8 2 Recov ered …………………………….. Number 3,712 5,166 5,000 4,694 2,653 Surrendered …………………………….. Number 499 7 7 17 2 4,211 5,173 5,007 4,711 2,655 17,122 4,313 4,420 .. .. A mmunition (Rounds ) Total 1 Dang erous Drug s s eized Kg Source: Keny a Police Serv ice * Prov isional 1 Prohibited harmf ul non pharmaceutical narcotic drugs and psy chotropic substances listed in the First Schedule of Narcotic Drugs and Psy chotropic Substances (Control) A ct No. 4 of 1994 17.8. Persons reported to have committed criminal offenses by command stations and sex from 2014 to 2017 is shown in Table 17.4. The total number of persons reported to have committed criminal offenses decreased by 2.7 per cent from 75,007 in 2016 to 73,013 in 2017. The number of females reported to have committed criminal offences declined by 11.9 per cent in 2017. In Turkana county command station, the number of persons reported to have committed criminal offence more than doubled from 421 in 2016 to 1,162 in 2017. Kakamega county command station recorded the highest decrease in the number of persons reported to have committed crime from 4,577 in 2016 to 780 in 2017. 258 Chapter 17: Governance, Peace and Security Table 17.4: Persons Reported to the Police to have Committed Crimes by sex and Command Stations, 2014 - 2017 Number 2014 S/No Command station 2015 2016 2017* Male Female Total Male Female Total Male Female Total Male Female Total 1 Mombasa……………………….. 2266 620 2,886 1,045 140 1,185 2,426 806 3,232 2,435 578 3,013 2 376 Kwale……………………….. 135 511 904 272 1,176 740 103 843 431 126 557 3 Kilifi……………………….. 587 104 691 1,481 330 1,811 1,583 475 2,058 1,814 283 2,097 4 Tana River……………………….. 395 109 504 415 81 496 324 70 394 374 44 418 5 Lamu……………………….. 360 41 401 577 140 717 313 35 348 412 41 453 6 Taita Taveta……………………….. 940 153 1,093 870 184 1,054 561 143 704 608 87 695 7 Garissa……………………….. 399 280 679 270 23 293 71 262 333 389 154 543 8 Wajir……………………….. 66 11 77 165 47 212 141 107 248 268 36 304 9 Mandera……………………….. 310 29 339 259 17 276 149 29 178 271 31 302 10 Marsabit……………………….. 468 60 528 377 69 446 695 49 744 403 105 508 11 Isiolo……………………….. 258 80 338 93 4 97 346 78 424 276 82 358 12 Meru……………………….. 4588 1,525 6,113 2,870 1,292 4,162 4,339 1,134 5,473 3,772 1,113 4,885 13 Tharaka-Nithi……………………….. 665 96 761 559 129 688 721 99 820 688 184 872 14 Embu……………………….. 1342 180 1,522 1,110 327 1,437 695 428 1,123 1,029 446 1,475 15 Kitui……………………….. 1328 309 1,637 1,788 410 2,198 1,225 370 1,595 1,380 281 1,661 16 Machakos……………………….. 2123 679 2,802 1,829 471 2,300 1,929 287 2,216 1,792 320 2,112 17 Makueni……………………….. 1339 218 1,557 1,293 223 1,516 1,203 221 1,424 990 183 1,173 18 1202 299 Nyandarua……………………….. 1,501 1,243 286 1,529 1,360 249 1,609 1,486 275 1,761 19 Nyeri……………………….. 1519 284 1,803 1,330 709 2,039 1,257 301 1,558 1,342 247 1,589 20 Kirinyaga……………………….. 628 343 971 423 185 608 1,171 478 1,649 1,554 314 1,868 21 1992 380 Muranga'……………………….. 2,372 1,333 334 1,667 1,741 366 2,107 2,150 330 2,480 22 Kiambu……………………….. 3804 1,199 5,003 4,401 1,304 5,705 3,707 1,235 4,942 3,773 1,575 5,348 23 Turkana……………………….. 737 240 977 350 41 391 403 18 421 1,056 106 1,162 24 West Pokot……………………….. 659 147 806 464 142 606 657 90 747 535 184 719 25 Samburu……………………….. 35 38 73 234 53 287 276 58 334 419 165 584 26 3129 818 Trans Nzoia……………………….. 3,947 1,751 463 2,214 1,304 171 1,475 1,189 546 1,735 27 Uasin Gishu……………………….. 406 1631 2,037 1,439 222 1,661 1,861 396 2,257 1,434 439 1,873 28 Elgeyo/Marakwet……………………….. 644 84 728 324 60 384 471 83 554 479 100 579 29 Nandi……………………….. 633 171 804 724 229 953 884 163 1,047 805 159 964 30 Baringo……………………….. 721 134 855 579 133 712 698 290 988 728 114 842 31 Laikipia……………………….. 730 114 844 739 127 866 884 188 1,072 1,159 212 1,371 32 Nakuru……………………….. 2757 807 3,564 3,038 775 3,813 2,787 986 3,773 2,840 1,107 3,947 33 Narok……………………….. 1156 300 1,456 292 110 402 1,260 380 1,640 1,266 210 1,476 34 Kajiado……………………….. 322 319 641 1,108 305 1,413 1,194 125 1,319 756 186 942 35 Kericho……………………….. 1383 183 1,566 1,075 184 1,259 1,277 243 1,520 1,020 308 1,328 36 Bomet……………………….. 1073 162 1,235 636 78 714 820 174 994 796 112 908 37 Kakamega……………………….. 2355 339 2,694 2,294 701 2,995 2,901 1,676 4,577 677 103 780 38 Vihiga……………………….. 1903 217 2,120 1,045 140 1,185 882 145 1,027 498 140 638 39 Bungoma……………………….. 2467 541 3,008 2,138 433 2,571 1,099 458 1,557 2,111 407 2,518 40 Busia……………………….. 1191 120 1,311 1,358 537 1,895 1,195 246 1,441 1,749 423 2,172 41 Siaya……………………….. 1030 224 1,254 1,025 145 1,170 894 394 1,288 1,226 163 1,389 42 Kisumu……………………….. 900 146 1,046 1,775 327 2,102 1,388 371 1,759 1,409 363 1,772 43 992 351 Homa Bay……………………….. 1,343 993 131 1,124 1,256 193 1,449 956 205 1,161 44 Migori……………………….. 844 198 1,042 1,349 176 1,525 290 70 360 290 119 409 45 Kisii……………………….. 1525 514 2,039 1,275 408 1,683 1,701 358 2,059 2,142 344 2,486 46 Nyamira……………………….. 898 217 1,115 1,000 158 1,158 612 206 818 822 148 970 47 Nairobi City……………………….. 5799 2,309 8,108 4,110 1,465 5,575 4,581 1,646 6,227 4,342 1,285 5,627 48 KAPU……………………….. 19 49 Railways……………………….. 141 Total 2 21 62 20 82 132 22 154 85 16 101 13 154 129 34 163 104 24 128 84 4 88 62,629 16,248 78,877 55,941 14,574 70,515 58,508 16,499 75,007 58,510 14,503 73,013 Source: Kenya Police Service * Provisional 259 Economic Survey 2018 17.9. The number of persons reported to have committed crime by type of offence and sex from 2013 to 2017 are shown in Table 17.5. The number of persons reported to have committed offences against morality and other offences against persons declined by 15.3 per cent and 6.0 per cent, respectively, in 2017. In the offenses against morality category, the number of persons reported to have committed defilement declined by 22.7 per cent. In the other offenses against person category, persons reported to have committed assault declined by 6.5 per cent in 2017. 17.10. The total number of persons reported to have committed homicides increased by 6.1 per cent to 2,240 in 2017 from 2,112 in 2016. The number of persons reported to have committed suicide increased by 39.4 per cent from 302 in 2016 to 421 in 2017. However, those reported to have committed murder decreased from 1,439 in 2016 to 1,435 in 2017. 17.11. The total number of persons reported to have committed an offense of stealing increased to 11,038 in 2017 from 9,876 in 2016. The number of persons who were reported to have committed offences related to theft of vehicles, theft by servant and theft of stock decreased by 10.3, 7.2 and 6.1 per cent, respectively. 17.12. The number of persons reported to have committed offences related to dangerous drugs decreased by 24.6 per cent from 5,994 in 2016 to 4,519 in 2017. Persons reported to have committed offences relating to criminal damage declined from 4,339 to 4,124 over the same period. Persons reported to have committed economic crimes increased by 3.6 per cent from 3,106 in 2016 to 3,218 in 2017 while those reported for corruption related offences increased from 97 to 275. The number of police officers reported to have been involved in crime declined from 219 in 2016 to 71 in 2017. 260 Chapter 17: Governance, Peace and Security Table 17.5: The Number of Persons Reported to have Committed Crime by Type of Offence and Sex, 2013 - 2017 Number 2013 Offence 2014 Male Female Total 2015 Male Female Total 2016 Male Female Total 2017* Male Female Total Male Female Total Against morality Rape …………………………………………………. 772 141 913 710 145 855 758 135 893 750 173 923 694 90 784 Defilement …………………………………………………. 3,174 422 3,596 3,554 342 3,896 3,794 313 4,107 3,956 556 4,512 3,252 235 3,487 199 16 215 267 24 291 257 31 288 234 53 287 Unnatural/sodomy …………………………………………………. 115 9 124 107 6 113 101 8 109 74 7 81 90 17 107 220 22 242 Incest …………………………………………………. Bestiality …………………………………………………. 76 55 131 23 4 27 25 5 30 39 5 44 23 3 26 Indecent assault …………………………………………………. 201 69 270 167 16 183 179 17 196 147 8 155 217 28 245 Abduction …………………………………………………. 55 15 70 60 15 75 46 16 62 48 5 53 66 72 138 Bigamy …………………………………………………. 32 13 45 6 0 6 11 1 12 11 2 13 15 53 68 5,391 4,826 544 5,370 5,181 519 5,700 5,282 787 6,069 4,591 551 5,142 Assault …………………………………………………. 13,460 3,142 16,602 11,574 4,079 15,653 10,788 3,741 14,529 10,838 3,720 14,558 10,256 3,353 13,609 Creating disturbance …………………………………………………. 5,360 1,128 6,488 5,294 1,593 6,887 4,144 1,384 5,528 4,624 1,548 6,172 4,575 1,342 5,917 615 307 186 493 576 316 892 544 247 791 Sub- total 4,645 746 Other offences against persons 331 177 508 434 Affray (scuffle) …………………………………………………. Sub- total 19,151 4,447 23,598 17,302 181 5,853 23,155 15,239 5,311 20,550 16,038 5,584 21,622 15,375 4,942 20,317 Homicide 1,507 214 1,721 Murder …………………………………………….. 1,248 240 1,488 1,115 240 1,355 1,236 203 1,439 1,213 222 1,435 Manslaughter …………………………………………….. 42 11 53 30 6 36 44 13 57 49 9 58 48 11 59 Infanticide …………………………………………….. 15 45 60 6 25 31 11 19 30 9 26 35 5 21 26 Procuring abortion …………………………………………….. 5 29 34 8 37 45 8 25 33 4 28 32 17 18 35 239 62 301 177 44 221 224 78 302 330 91 421 Suicide …………………………………………….. 263 64 Causing death by dangerous driving …………. 462 32 327 494 205 21 226 249 37 286 218 28 246 243 21 264 395 2,689 1,736 391 2,127 1,604 378 1,982 1,740 372 2,112 1,856 384 2,240 Robery, Breakings and Theft Robbery ……………………………………. 4,025 307 Sub-total 2,294 4,332 2,983 379 3,362 2,485 298 2,783 2,096 475 2,571 2,192 317 2,509 Breakings …………………...…………… 7,134 405 7,539 6,176 587 6,763 5,326 563 5,889 4,760 885 5,645 5,318 555 5,873 Theft of stock …………………………. 2,335 126 2,461 2,091 182 2,273 1,688 223 1,911 1,682 245 1,927 1,606 203 1,809 Stealing ……………………………………. 10,550 1,719 12,269 7,404 2,145 9,549 7,346 1,847 9,193 7,769 2,107 9,876 9,096 1,942 11,038 2,134 Theft by servant ……………………….. 918 3,052 1,704 841 2,545 1,504 667 2,171 1,575 834 2,409 1,553 682 2,235 Theft of vehicle & other thefts ……….. 2,294 293 2,587 1,029 135 1,164 820 102 922 1,050 162 1,212 958 129 1,087 Sub-total 28,472 3,768 32,240 21,387 4,269 25,656 19,169 3,700 22,869 18,932 4,708 23,640 20,723 3,828 24,551 Dangeruos Drugs, Criminal Damage, Economic Crimes and Corruption Dangerous Drugs ……………………………………..… 3,670 562 4,232 4,424 541 4,965 4,111 718 4,829 5,071 923 5,994 3,949 570 4,519 3,471 605 4,076 3,645 Criminal Damage ……………………………………………… 878 4,523 3,126 893 4,019 3,455 884 4,339 3,302 822 4,124 Economic crimes ………………………………………….. 2,081 556 2,637 913 3,146 2,078 831 2,909 2,389 717 3,106 2,501 717 3,218 26 104 247 84 331 82 15 97 221 54 275 16 146 2,374 12,884 54 9,616 2,233 Corruption ………………………………………………………… 141 24 165 78 Offences involving Police officers ………. 38 Sub-total 9,401 24 62 913 1,771 11,172 11,293 32 86 126 2,558 12,174 11,123 93 219 59 2,632 13,755 10,032 12 71 2,175 12,207 Source: Kenya Police Service *Provisional Note: The number of persons reported to have committed offences may differ with that of crimes reported to the Police (Table 17.1) because a person may commit more than one crime or a crime may be committed by more than one person. 261 Economic Survey 2018 Ethics and 17.13. Table 17.6 shows the number of reports handled and action taken by the Ethics and Corruption Anti-Corruption Commission (EACC) for the period 2012/13 to 2016/17. The number of reports referred to other investigative agencies decreased from 215 in 2015/16 to 136 in 2016/17 while the number of corruption reports referred for investigation declined from 3,856 to 3,735. The number of complainants advised on the right authority to report to, increased by 14.3 per cent from 2,568 to 2,934 in the same period. Table 17.6: Cases Handled and Action Taken by Ethics and Anti-Corruption Commission, 2012/13 2016/17 Number 2012/13 2013/14 2014/15 2015/16 2016/17* 1,423 1,950 2,747 3,856 3,735 1 Corruption reports for investigation ………………………........... 2 Reports referred to other investigative agencies ……………………….. 111 Reports referred to public service organizations for 3 administrative intervention ……………… …… … … 506 ……… 4 Reports pending for more information ……………………………… 18 120 117 215 136 561 649 633 600 65 80 55 64 5 Complainants advised on the right authority to report to……………………….. 900 868 1,384 2,568 2,934 6 Complainants advised to seek civil redress ……………………….. 270 264 288 48 52 7 Reports with no further action (terminated)………………………….. 127 … 178 395 542 575 75 117 167 143 8 Files forwarded to ODPP 70 Source: Ethics and Anti-Corruption Commission * Provisional 17.14. Table 17.7 presents the number of reports on ethics and corruption forwarded to the Office of the Director of Public Prosecution (ODPP) and action taken for the period 2012/13 to 2016/17. The total number of reports forwarded to ODPP decreased from 167 in 2015/16 to 143 in 2016/17. The ODPP recommended 89 cases for prosecution, 25 for closure and 13 for further investigation in the period under review. Table 17.7: Reports Forwarded to the Office of the Director of the Public Prosecution and Action Taken, 2012/13 -2016/17 Number S /No Action Tak en 1 2 3 2012/13 2013/14 2014/15 2015/16 2016/17* Recommendation to pros ecute accepted ………………………………….. 38 43 74 117 89 Recommendation to pros ecute not accepted ……………………………. 4 1 1 Recommendation for adminis trativ e or 5 7 8 other action accepted …………………. 8 3 7 4 Recommendation for adminis trativ e or other action not accepted ……………….. 0 1 0 5 Recommendation for clos ure accepted ………………………………….. 15 14 19 25 25 6 Recommendation for clos ure not accepted ……………………………… 0 3 3 2 1 7 Files returned for further inv es tig ations …………………………………. 6 6 12 14 13 8 2 0 0 Files awaiting DPP's 1 action ………………………………………………… 70 75 117 Total 0 Source: Ethics and A nti-Corruption Commission (EA CC) * P rov isional 1 5 DP P - Director of P ublic P rosecution 262 1 0 0 167 143 Chapter 17: Governance, Peace and Security 17.15. The value of public assets traced, recovered and loss averted by EACC for the period 2012/13 to 2016/17 is presented in Table 17.8. In 2016/17, the value of public assets recovered stood at KSh 239.9 million compared to KSh 420.6 million in the previous financial year. The value of assets loss averted was KSh 6.3 billion in 2016/17 compared to KSh 1.2 billion in 2015/2016. Table 17.8: Public Assets Traced, Recovered and Loss Averted by EACC, 2012/13 - 2016/17 KSh Million Value of Public Value of public 1 Assets traced Assets recovered Loss Averted 2012/13.................................................... 16,380.00 567.41 55,016.50 2013/14.................................................... 7,214.00 2,068.00 5,600.00 2014/15.................................................... 3,669.60 140.30 1,600.00 2015/16.................................................... 3,614.10 420.58 1,244.24 2016/17*................................................... 4,913.10 239.92 6,325.70 Source: Ethics and Anti-Corruption Commission *Provisional 1 Loss Averted refers to total value of public assets where an attempted illegal acquisition was detected and foiled through pre-emptive investigations by the EACC Environmental 17.16. Table 17.9 presents the number of environmental crimes reported to NEMA for the Crimes period 2013 to 2017. In 2017, a total of 384 crimes were reported to NEMA out of which 253 were related to illegal movement or dumping of waste. Number of reported crimes related to air and soil pollution increased to 97 and 23, respectively in the period under review. However, reported crimes on water pollution declined to 11 in 2017. Table 17.9: Environmental Crimes Reported to NEMA, 2013 - 2017 2014 2015 2016 Number 2017* Air Pollution……………………………. 13 72 57 74 97 Water Pollution…………………………….34 79 52 17 11 Soil Pollution……………………………. 11 71 44 11 23 Illegal movement or dumping of waste….. 8 46 59 229 253 66 268 212 331 384 Type of cases Total 2013 Source: National Environment Management Authority *Provisional Prosecution 17.17. Table 17.10 presents the number of registered and convictions on murder cases at the of Murder High Court for the period 2013 to 2017. Total murder cases registered increased marginally Cases from 940 in 2016 to 956 in 2017. During the same period, convictions for murder cases almost doubled from 208 in 2016 to 401 in 2017. The number of registered murder cases varied across High Court stations with those registered at Meru High Court being the highest at 104 in 2017. 263 Economic Survey 2018 Table 17.10: Prosecution of Murder Cases, 2013 – 2017 High Court Station Nairobi ................ Mombasa ............. Kisumu................. Eldoret ................. Kitale.................... Kakamega............. Bungoma.............. Meru..................... Machakos............. Kericho................. Nyeri.................... Kisii...................... Embu.................... Malindi................. Nakuru................. Busia..................... Garissa.................. Homa Bay............ Murang'a ............. Kerugoya ............. Bomet .................. 2013 R 188 95 131 150 86 74 124 122 67 72 61 212 61 46 141 26 29 24 C 18 0 5 41 12 0 24 7 79 15 0 15 4 2 22 6 6 8 2014 R 95 43 5 21 77 70 124 43 149 38 87 30 26 71 36 0 29 5 77 200 C 15 16 4 4 12 0 8 16 6 0 0 5 12 4 7 0 12 1 9 27 Kajiado ................. Kitui ..................... Voi........................ Lodwar................. Naivasha............... Chuka................... Garsen.................. 2015 R 118 57 30 89 50 41 37 109 61 14 21 79 27 7 21 27 39 27 36 28 48 3 13 5 .. .. 2016 C 25 16 3 21 18 0 3 44 7 16 1 1 4 11 5 1 0 12 2 0 7 R 184 40 30 92 3 55 28 77 23 28 11 34 21 14 52 34 20 18 32 19 20 C 11 1 10 13 5 0 14 35 1 18 0 0 6 6 2 24 1 17 1 1 8 0 7 0 .. .. 21 15 4 21 44 0 14 1 11 8 Kabarnet............... Kapenguria........... Kiambu................. Marsabit............... Migori.................. Nanyuki............... Narok................... Nyamira............... Siaya..................... Makueni............... Total 1,709 264 1,226 158 987 204 Source: Office of the Director of Public Prosecutions * Provisional R - Registered murder cases, C - Murder convictions obtained 264 940 208 Number 2017* R C 67 27 25 21 32 41 70 10 17 10 50 25 35 37 104 36 32 9 16 8 10 3 27 7 20 20 16 3 56 17 33 4 15 0 37 10 28 1 10 2 23 1 8 18 10 14 22 6 24 7 3 11 2 2 3 2 18 11 37 8 17 10 6 9 33 3 956 1 0 0 3 15 13 4 4 18 0 401 Chapter 17: Governance, Peace and Security The 17.18. The number of cases handled by courts of law from 2013 to 2017 is presented in Table Judiciary 17.11. The number of cases filed in courts decreased by 25.6 per cent from 462,792 in 2016 to 344,180 in 2017. The number of cases disposed of by courts decreased by 26.6 per cent from 426,603 in 2016 to 313,075 in 2017. The number of pending cases increased by 6.2 per cent from 499,341 in 2016 to 530,446 in 2017. 17.19. The number of cases filed in the Magistrate courts decreased by 25.6 per cent from 404,158 in 2016 to 300,655 in 2017. Similarly cases filed in the High Court decreased from 41,999 in 2016 to 20,553 in 2017. The number of cases filed in the Kadhis’ courts and Environment and Land courts increased by 47.4 per cent and 83.3 per cent, respectively. Pending cases in the Magistrate courts increased by 9.9 per cent from 333,014 in 2016 to 366,133 in 2017 while those in High court decreased by 6.4 per cent in 2017. Table 17.11: Cases Handled by the Courts, 2013 - 2017 Number S tatus of Case Year Kadhis Magistrate ' Courts Court High Court Employment & Labour Environment and Land Court of S upreme Relations Appeal Court Court Court Filed ……………………………………. 3,462 277,666 63,950 2013 2014 + + - 2016 + 402 70 Total 342,088 Pending ……………………………………. 2,222 304,080 160,058 - - 4,209 20 468,367 Dis pos ed of ……………………………………. 3,677 483,693 18,718 - - 2,427 59 482,761 Filed ……………………………………. 2,795 461,893 37,938 - - 446 72 500,349 Pending ……………………………………. 2,814 447,748 158,216 - - 4,287 39 610,290 Dis pos ed of ……………………………………. 2,203 318,225 39,780 2015 - - - 368 53 358,426 Filed ……………………………………. 1,904 308,602 38,817 3,436 5,551 1,575 61 359,946 Pending ……………………………………. 968 305,216 125,813 9,042 19,043 3,017 53 463,152 Dis pos ed of ……………………………………. 3,750 451,134 71,220 1,129 2,156 2,845 47 507,084 462,792 Filed ……………………………………. 3,735 404,158 41,999 6,159 5,329 1,374 38 Pending ……………………………………. 3,256 333,014 127,958 11,309 20,875 2,861 68 499,341 3,892 3,497 1,530 23 426,603 344,180 Dis pos ed of ……………………………………. 1,447 376,360 39,854 Filed ……………………………………. 5,504 300,655 20,553 2017* Pending ……………………………………. 3,015 366,133 119,777 6,082 9,770 1,578 38 13,723 24,338 3,387 73 530,446 3,668 6,307 1,052 33 313,075 Dis pos ed of ……………………………………. 5,745 267,536 28,734 Source: J udiciary * Provisional + Revised Note: 1.Filed cases refer to all cases brought before a court during the y ear in reference 2.Pending cases refer to the cases w hich had not been determined/resolved by 30th J une during the y ear in reference 3.Disp osed of cases refers to all cases that w ere resolved/determined by 30th J une during the y ear in reference. 17.20. The number of judicial officers and practicing lawyers from 2013 to 2017 is shown in Table 17.12. The number of judicial officers decreased from 611 in 2016 to 590 in 2017. The number of magistrates declined from 438 in 2016 to 421 in 2017 while the number of Kadhis increased from 45 in 2016 to 55 in 2017. The number of practicing lawyers increased by 761 to 9,000 in 2017. Female practicing lawyers grew by 12.1 per cent in 2017 compared to male lawyers who increased by 7.2 per cent. 265 42 60 Senior Resident Magistrate………………. 30 Resident Magistrate………………. 56 58 68 99 72 88 30 Sub-Total 266 * Provisional Source: Judiciary, Law Society of Kenya .. 45 227 74 Sub-Total 35 .. 51 High Court Judges………………. 8 2 182 302 18 Court of Appeal Judges………………. Total Judicial Officers Practicing Lawyers 5 228 Supreme Court Judges………………. Judges Total Number of Magistrates & Kadhis 60 86 529 6,500 .. 357 83 18 26 119 5 274 35 20 11 2 1 1 7 410 30 18 Kadhi II…………………………….. 0 8 18 - 8 Kadhi I………………………… 2 - 2 Principal Kadhi………………. 1 - 1 Deputy Chief Kadhi………………. 1 1 Chief Kadhi………………………. 239 32 81 380 25 40 - Kadhis 198 182 39 60 Principal Magistrate………………. Sub-Total 28 Senior Principal Magistrate………………. 53 28 13 27 Chief Magistrates………………. Magistrates 2014 2015 2016 2017* .. 266 47 37 8 2 219 0 - - - - - 219 98 46 29 22 24 353 83 60 18 5 270 35 20 11 2 1 1 235 68 58 56 30 23 263 47 37 8 2 216 0 - - - - - 216 98 46 29 22 21 616 130 97 26 7 486 35 20 11 2 1 1 451 166 104 85 52 44 349 82 59 18 5 267 45 30 11 2 1 1 222 39 77 43 35 28 262 46 37 7 2 216 0 - - - - - 216 68 79 22 26 21 611 128 96 25 7 483 45 30 11 2 1 1 438 107 156 65 61 49 337 68 48 15 5 269 55 23 19 10 2 1 214 36 76 41 33 28 253 46 37 7 2 207 0 - - - - - 207 66 78 21 22 20 7,200 4,294 2,885 7,179 4,796 3,443 8,239 5,141 3,859 623 130 97 26 7 493 35 20 11 2 1 1 458 166 104 85 54 49 Male Female Total Male Female Total Male Female Total Male Female Total Male Female 2013 Table 17.12: Magistrates, Judges and Practicing Lawyers, 2013 - 2017 9,000 590 114 85 22 7 476 55 23 19 10 2 1 421 102 154 62 55 48 Total Number Economic Survey 2018 Chapter 17: Governance, Peace and Security The Prisons 17.21. Table 17.13 shows the number of persons committed to prison by sex from the 2013 to 2017. The number of persons committed to prison decreased marginally from 210,227 in 2016 to 209,870 in 2017. Convicted prisoners decreased by 2.5 per cent from 82,433 in 2016 to 80,404 in 2017. The number of persons previously convicted increased by 21.1 per cent from 14,724 in 2016 to 17,824 in 2017. About 10.0 per cent of persons committed to prison were sentenced to less than one month while 23.4 per cent were those serving prison sentences of between one month and 2 years in 2017. Convicted prisoners accounted for 38.3 per cent of the total persons committed to prison in 2017. In 2017, for every 100,000 population there were 450.4 people in prison compared to 476.1 in 2016. The number of deaths occurring in prisons declined to 176 from 187 in 2016. Table 17.13: Persons Committed to Prison by Sex, 2013 - 2017 2013 Male Less than 1 Month …………………..……14,736 2014 Female Male 2015 Female Male 2016 Female Male 2017* Female Male Female 1,644 24,374 2,053 20,597 1,847 16,956 1,337 18,758 1,531 Sentenced to less than 1 Month to < 2 yrs ……………… 43,686 5,721 53,313 7,819 43,015 9,574 42,001 8,767 43,218 5,796 Sentenced to 2 yrs or more ………………. 7,563 421 15,138 407 10,083 779 11,003 402 8,547 561 Life imprisonment……………………………… 2,111 45 2,582 42 1,074 87 1,087 120 1,108 74 Death sentence……………………………….778 31 2,708 49 998 61 742 18 769 42 68,874 7,862 71,789 10,644 72,400 8,004 Total Convicted Prisoners ……….. 76,736 Committed for civil debt ………………………… 556 Committed to remand …………. Total unconvicted prisoners Total Persons Committed to Prisons Previously convicted ………………… 98,115 10,370 108,485 113 1036 75,767 12,348 88,115 108 472 82,433 80,404 115 431 103 326 113 137,974 12,539 124,795 13,966 121,097 12,175 117,687 9,573 118,905 10,122 138,530 12,652 125,831 14,074 121,569 12,290 118,118 9,676 119,231 10,235 151,182 139,905 133,859 127,794 129,466 207,404 20,514 223,946 24,444 197,336 24,638 189,907 20,320 191,631 18,239 227,918 21,830 248,390 1,080 Deaths (Excluding Executions) ………………… 623 Prison population per 100,000 of population 556.4 9 221,974 23,670 11,257 421 3 578.2 Source: Kenya Prisons Service * Provisional 267 210,227 209,870 15,979 1,704 13,897 827 16,371 1,453 247 14 178 9 166 10 502.7 467.1 450.4 Economic Survey 2018 17.22. Table 17.14 presents the daily average population of prisoners by sex for the period 2013 to 2017. In 2017, the daily average of prison population increased to 51,021 from 50,900 in 2016. During the same period, the daily average convicted prison population increased to 31,749 while the daily average unconvicted population declined by 9.1 per cent. Table 17.14: Daily Average Population of Prisoners by Sex, 2013 - 2017 Number 2013 2014 2015 2016 2017* Males ……………………………………… 30,356 30,601 28,889 27,078 30,280 Females ……………………………………… 1,575 2,085 1,997 1,889 1,469 31,931 32,686 30,886 28,967 31,749 Males ……………………………………… 19,166 20,896 21,760 20,060 18,156 Females ……………………………………… 1,175 1,688 1,985 1,873 1,116 Convicted Prisoners Sub-Total Unconvicted Prisoners Sub -Total 20,340 22,584 23,745 21,933 19,272 Total 52,271 55,270 54,631 50,900 51,021 Source: Kenya Prisons Service * Provisional 17.23. Table 17.15 gives the number of convicted persons committed to prison by age and sex from 2013 to 2017. The number of convicted prisoners decreased by 2.5 per cent to 80,404 in 2017. The convicted prisoners aged under 26 years accounted for 51.5 per cent of the total convicts. There was a decline in the number of female convicts across all age cohorts. The total number of female convicts declined by 24.8 per cent. Table 17.15: Convicted Persons Committed to Prison by Age and Sex, 2013 - 2017 Number Age cohorts Under 16 16 -17 2013 2014 2015 2016 2017* 18-20 21-25 26-50 Over 50 Total Male ……………. 231 2,247 13,814 20,252 27,615 4,715 68,874 Female……………. 5 66 1,115 2,420 3,768 488 7,862 Total…………….2 36 2,313 14,929 22,672 31,383 5,203 76,736 Male ……………. 139 3,198 18,002 29,662 40,439 7,711 98,115 Female……………. 13 105 1,448 2,632 5,500 780 10,370 Total…………….1 52 3,303 19,450 32,294 45,939 8,491 108,485 Male ……………. 107 2,522 14,779 22,984 30,842 4,533 75,767 Female……………. 13 91 1,735 2,974 6,288 1,247 12,348 Total…………….1 20 2,613 16,514 25,958 37,130 5,780 88,115 Male ……………. 92 1,665 12,040 22,444 29,557 5,991 71,789 Female……………. 19 211 1,343 2,818 5,256 997 10,644 Total…………….1 11 1,876 13,383 25,262 34,813 6,988 82,433 Male ……………. 108 1,393 11,886 24,559 28,384 6,070 72,400 Female……………. 6 31 865 2,560 3,849 693 8,004 Total…………….1 14 1,424 12,751 27,119 32,233 6,763 80,404 Source: Kenya Prisons Service * Provisional 268 Chapter 17: Governance, Peace and Security 17.24. Table 17.16 presents the number of convicted prisoners by type of offence and sex from 2013 to 2017. Persons convicted for having committed offenses under the Liquor Act contributed 32.4 per cent of all convicted prisoners in 2017. The number of prisoners convicted for offences related to drugs increased by 23.3 per cent followed by attempts and conspiracies, and against person which increased by 22.7 per cent and 19.7 per cent, respectively. Persons convicted for offences related to order and administration of lawful authority decreased by 10.1 per cent while those imprisoned for liquor offence declined by the same margin over the same period. Probation 17.25. The number of offenders serving probation sentences, community service orders, and and those on aftercare service by sex are shown in Table 17.17. The number of offenders handled Aftercare by the Probation and Aftercare service declined by 11.3 per cent from 50,619 in 2016 to 44,890 in 2017. During the period under review, the number of offenders sentenced to community service declined by 21.4 per cent from 37,729 to 29,667 while those placed under aftercare service dropped by 44.9 per cent from 1,604 to 884. The number of offenders on probation increased by 27.1 per cent from 11,286 in 2016 to 14,339 in 2017. 269 1 68,874 4,609 208 10,370 4,817 108,485 ref ers to of f ences outlined in the Registration of P ersons A ct Cap 107 such as illegal registrations 98,115 A s categorised in A ppendix 17.2 76,736 2 7,862 5,467 19,730 221 1,427 1 * P rov isional Source: Keny a P risons Serv ice Total Reg is tration of pers ons …………..…………………… 2,204 139 2,343 2 3,361 59 3,420 5,246 Drug s related ………….……………….…………………… 20,545 1,732 22,277 18,303 Various other cas es ………….……………….…………………… 4,696 25,313 321 6,485 1,312 3,826 2,861 611 3,472 4,375 Employ ment ………….……………….…………………… 12,309 3,899 16,208 18,828 Liquor ………….……………….…………………… 9,382 14,265 9,393 374 9,767 13,762 503 Related to property ………….……………….…………………… 1,554 62 1,616 3,720 106 A ttempts & cons piracies ………….……………….…………………… 75,767 408 16,111 5,174 18,292 5,851 5,771 3,231 8,070 10,235 Male 496 17,586 Total 4,715 Female 188 9,207 Male 415 345 Female Total 17,171 8,862 Male 2014 2,947 174 3,121 4,527 Injurious to public ………….…………………………... 4,838 467 5,305 7,574 A g ains t pers on ………….……………….…………………… Order and adminis tration of lawful authority …. Type of Offence 2013 Table 17.16: Convicted Prisoners by Type of Offence and Sex, 2013 - 2017 12,348 40 1,814 249 8,564 253 75 333 394 169 457 Female 2015 88,115 448 17,925 5,423 26,856 6,104 1,387 9,715 6,165 3,400 10,692 Total 71,789 111 15,554 4,264 20,967 3,992 1,308 8,269 5,084 3,127 9,113 Male 10,644 2 1,049 114 7,969 297 23 334 369 132 355 Female 2016 82,433 113 16,603 4,378 28,936 4,289 1,331 8,603 5,453 3,259 9,468 Total 72,400 97 15,002 5,243 20,879 4,093 1,593 7,953 6,211 3,186 8,143 Male Number 8,004 6 1,314 154 5,145 169 40 353 318 139 366 80,404 103 16,316 5,397 26,024 4,262 1,633 8,306 6,529 3,325 8,509 Female Total 2017* Economic Survey 2018 270 177 81 271 315 1,136 1 See A ppendix 17.1 * Prov isional Source: Probation and A f tercare Serv ice 2,108 951 2,848 776 A ll other penal code offences …………………………….……………………………. 3,059 3,624 TOTAL 8,933 2,353 11,286 11,816 2,523 14,339 695 31,101 112 4,594 31,911 5,818 37,729 26,507 3 11 2 3 291 2,776 114 57 41 4 4 952 205 272 22 524 506 126 20 5 Total 6 4 2,969 91 0 1 10 333 45 0 0 0 0 67 0 7 0 55 62 0 0 0 Female 24,811 770 6 7 86 1,953 159 1 1 6 15 726 85 249 9 367 388 18 6 4 Total 26,027 3,640 29,667 21,842 679 6 6 76 1,620 114 1 1 6 15 659 85 242 9 312 326 18 Male 2017* Community S ervice 0 75 703 36 216 2,073 78 1 56 15 318 1 40 10 0 31 47 6 27 2 9 Caus ing death by dang erous driv ing …………………………….……………………………. 53 29 609 109 707 84 583 Other offences ag ains t property …………………………….……………………………. 718 791 163 27 232 83 Handling s tolen property …………………………….……………………………. 190 35 23 26 5 Corruption …………………………….……………………………. 58 268 37 237 Theft by s erv ant …………………………….……………………………. 305 Dang erous drug s ………………… 1,066 258 959 1,324 19 5 9 1 Theft from m/ v ehicles …………………………….……………………………. 24 16 2 13 2 Theft of bicy cles …………………………….……………………………. 18 0 4 67 4 885 21 1,721 174 24 16 256 181 3 19 84 440 113 359 12 19 5 103 10 Theft of M/v ehicle …………………………….……………………………. 24 7 1 17 4 Theft of M/v ehicles parts …………………………….……………………………. 8 213 6 347 Theft of Stock …………………………….……………………………. 219 1,417 196 1,547 General s tealing …………………………….……………………………. 1,613 126 15 218 15 Robbery and A llied offences …………………………….……………………………. 141 233 502 21 698 18 Breaking s …………………………….……………………………. 523 716 8 75 431 217 10 304 8 Rape (including attempt) …………………………….……………………………. 227 312 957 345 2,302 698 A s s ault …………………………….……………………………. 1,302 3,000 992 284 979 309 Other offences ag ains t pers ons …………………………….……………………………. 1,276 1,288 15 2 Female 2016 118 5 122 3 31 Male 185 Total 33 Female Male Male Female Total 2017* Probation S entence 2016 60 22 152 Murder (including attempt) ……………………………. 82 92 30 91 Mans laug hter …………………………….……………………………. 122  Offence 1 Table 17.17: Offenders Serving Probation Sentences, Community Service and Aftercare by Sex and Type of Offence, 2016 and 2017 1,490 299 68 0 0 18 60 21 1 0 0 11 430 30 150 63 67 105 139 20 8 341 71 0 2 19 70 25 1 0 0 11 445 32 150 65 79 124 140 20 9 Total 114 1,604 42 3 0 2 1 10 4 0 0 0 0 15 2 0 2 12 19 1 0 1 Male Female 840 88 35 0 0 3 25 2 1 0 1 10 232 32 122 36 67 28 96 10 52 44 30 0 0 0 1 1 0 0 0 0 1 6 0 0 0 0 3 0 2 0 884 118 35 0 0 4 26 2 1 0 1 11 238 32 122 36 67 31 96 12 52 2017* Mal e Female Total S erving Aftercare 2016 Number Chapter 17: Governance, Peace and Security Economic Survey 2018 Police, Prisons and Probation officers 17.26. The number of police, prisons and probation officers by sex for the period 2013 to 2017 is shown in Table 17.18. In the review period, the number of police officers increased by 10.0 per cent from 42,649 to 46,894. The number of prison officers increased by 11.3 per cent from 21,139 in 2016 to 23,536 in 2017 with female officers accounting for 17.9 per cent of total prison officers. Prison officers in juvenile prisons increased by 18.5 per cent from 399 in 2016 to 473 in 2017. The total number of probation officers increased by 46.8 per cent from 566 in 2016 to 831 in 2017. The number of female probation officers increased by 64.8 per cent to 417 in 2017 bringing their number to near parity with their male counterparts. Table 17.18: Police, Prisons and Probation Officers, 2013 – 2017 Number 1 Year 2013 S ex 37,293 16,488 227 16,715 365 Female ................. 4,852 3,139 51 3,190 286 42,145 19,627 278 19,905 651 34,129 16,288 201 16,489 316 Total Female ................. Total Male .................... 2015 Female ................. Total Male .................... 2016 Female ................. Total Male .................... 2017* Probation Officers Male .................... Male .................... 2014 Police Officers Prison Officers in in Adult J uvenile Total Prisons Prisons Female ................. Total 5,086 3,067 31 3,098 228 39,215 19,355 232 19,587 544 36,185 16,014 257 16,271 321 6,668 3,054 64 3,118 258 42,853 19,068 321 19,389 579 36,274 17,249 308 17,557 313 6,375 3,491 91 3,582 253 42,649 20,740 399 21,139 566 39,945 18,984 341 19,325 414 6,949 4,079 132 4,211 417 46,894 23,063 473 23,536 831 Source: Keny a Police, Prisons Serv ice and Probation and A f tercare Serv ice * Prov isional 1 Ex cludes administration police Immigration 17.27. The number of passports and work permits issued, and foreign nationals registered for the period 2013 to 2017 is shown in Table 17.19. The number of passports issued declined by 12.2 per cent from 156,040 in 2016 to 136,990 in 2017. The number of foreign nationals registered dropped by 20.8 per cent to 29,318 in 2017. Work permits issued increased from 5,851 in 2016 to 8,366 in 2017 while work permits renewed increased from 9,547 in 2016 to 10,551 in 2017. 272 Chapter 17: Governance, Peace and Security Table 17.19: Passports and Work Permits Issued, and Foreign Nationals Registered, 2013 - 2017 Number Category 2013 2014 2015 2016 2017* Pas s ports is s ued………………………… 148,940 Foreig n nationals reg is tered …………21,920 183,042 151,589 156,040 136,990 22,326 25,091 37,033 29,318 W ork permits is s ued………………………. 10,411 10,540 7,683 5,851 8,366 W ork permits renewed …………………9,315 10,532 11,125 9,547 10,551 Source: Department of Immigration * Prov isional National 17.28. The number of applications, production and collection of national identity (ID) Identity Cards cards by county from 2013 to 2017 is provided in Table 17.20. The number of applicants not previously registered declined by 19.4 per cent from 1,529.4 thousand in 2016 to 1,233.3 thousand in 2017. New identity cards produced declined by 7.6 per cent while those collected increased by 1.8 per cent in 2017. Voter 17.29. Table 17.21 presents the number of registered voters in 2016 and 2017. The number Registration of registered voters increased by 23.2 per cent from 15.9 million as at December 2016 to 19.6 million as at December 2017. The increase is partly attributed to the mass voter registration in 2017. The number of male and female voters increased by 28.6 per cent and 18.1 per cent, respectively. The number of voters in the diaspora increased from 2,537 in 2016 to 4,393 in 2017. Prisoners were registered to exercise their right to vote for the first time. Overall, 80.5 per cent of adult population registered as voters. 273 30,081 27,517 2,357 6,354 8,060 14,468 13,467 32,969 31,036 26,660 15,340 17,641 11,623 24,745 39,555 24,058 16,323 6,341 Tana River ………………………… 11,450 4,803 735 Taita Taveta ………………………… 8,263 7,245 675 8,282 29,626 Mandera ………………………… 8,845 Marsabit ………………………… 7,551 Isiolo ………………………… 3,926 Meru ………………………… 43,069 Embu ………………………… 12,870 Kitui ………………………… 30,138 28,185 26,248 Makueni ………………………… Nyandarua ………………………… 11,425 15,526 Nyeri ………………………… 12,614 Kirinyaga ………………………… 9,602 12,102 Muranga ………………………… 18,772 23,021 Kiambu ………………………… 29,055 Turkana ………………………… 10,397 14,162 West Pokot ………………………… 11,895 12,363 3,831 Wajir ………………………… 6,591 Machakos ………………………… 32,532 29,781 36,921 Garissa ………………………… 5,154 Tharaka Nithi………………………… 7,115 7,457 12,329 1,060 Lamu ………………………… Samburu ………………………… 2,699 Trans Nzoia ………………………… 16,104 20,593 Uasin Gishu ………………………… 17,194 20,456 Elgeyo Marakwet ………………………… 7,985 9,511 Nandi ………………………… 11,508 Baringo ………………………… 8,833 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 274 20 21 22 23 24 25 26 27 28 29 30 10,746 9,339 16,950 30,646 2,071 4,225 6,879 9,149 36,227 Kilifi ………………………… 38,326 3 13,562 21,113 10,042 20,138 23,499 39,380 2,717 8,882 26,585 14,157 41,283 21,513 17,169 Kwale ………………………… 22,444 2 2016 25,833 32,215 17,368 31,005 28,092 8,868 34,517 26,556 64,134 54,021 29,285 33,376 41,294 46,591 26,404 20,736 73,747 3,728 11,667 16,901 20,386 19,831 9,566 4,539 12,301 54,127 37,846 24,046 2015 20,817 2013 2014 County Mombasa ………………………... 23,104 17,318 1 S/No NPR Applications 20,979 29,253 12,319 31,223 30,731 7,964 19,050 18,396 47,335 31,176 16,164 18,006 21,095 36,014 37,870 38,491 13,670 7,557 25,892 3,446 6,656 13,563 9,189 6,242 9,258 2,408 6,850 41,483 9,061 15,194 8,048 15,558 20,378 3,443 18,051 15,262 35,979 15,610 14,327 20,730 16,258 31,261 31,998 32,307 10,178 9,702 43,118 3,501 8,258 5,935 5,147 4,088 10,219 24,657 9,572 26,574 3,137 21,640 21,808 2013 41,549 2017* 7,423 10,507 7,409 14,512 14,679 2,222 6,762 11,546 30,150 19,526 9,455 13,660 12,113 21,879 23,555 24,728 10,752 7,451 27,523 1,620 7,307 2,147 3,454 4,476 7,323 1,625 4,471 29,382 15,802 15,653 2014 10,556 13,946 7,761 16,551 15,952 4,661 5,865 14,232 36,354 21,749 11,578 16,273 13,881 24,419 24,259 29,031 12,021 7,321 30,079 1,554 5,053 2,694 5,033 4,563 5,315 119 5,022 30,820 14,745 15,176 2015 NPR IDs Produced Table 17.20: New Identity Card Applications Made, Produced and Collected by County, 2013 - 2017 2016 16,275 22,143 14,214 25,288 28,586 8,125 29,275 15,026 58,070 43,570 21,869 26,764 25,114 37,069 36,323 48,371 24,742 21,680 70,354 4,094 12,930 33,518 17,188 13,813 10,556 6,129 10,196 50,026 38,688 26,165 24,455 33,559 15,931 33,989 31,169 6,982 22,019 15,567 52,095 33,699 18,733 19,628 21,368 36,002 37,535 38,547 15,929 9,805 47,667 5,414 10,599 18,977 15,187 18,341 3,248 9,827 9,577 41,641 27,311 23,255 2017* 2013 7,918 13,960 9,461 14,813 17,841 4,253 13,898 11,534 31,551 21,358 7,970 16,648 14,449 31,972 32,689 34,959 15,783 7,672 34,093 3,042 7,368 5,832 7,961 4,966 9,667 3,063 5,987 40,609 24,921 22,104 6,355 8,284 8,148 15,979 10,635 2,180 5,698 6,118 30,676 20,206 9,395 15,137 12,867 21,227 24,875 26,227 10,623 6,438 24,221 1,687 5,665 1,778 1,748 2,832 6,063 1,513 5,152 29,183 15,969 17,859 2014 15,099 12,944 7,701 16,636 15,014 3,149 5,433 10,386 33,341 20,204 10,173 15,933 13,301 20,720 23,522 25,142 10,714 4,702 22,634 1,429 5,090 2,678 1,866 3,842 6,316 292 4,685 32,753 14,469 13,500 2015 NPR IDs Collected 2016 16,716 20,637 14,778 24,026 23,019 7,058 23,094 16,611 47,227 36,605 15,581 23,090 22,892 33,468 30,487 45,740 17,101 18,920 36,206 2,221 9,858 24,926 14,201 7,785 9,728 4,069 6,481 55,187 33,417 22,966 23,074 31,696 14,851 31,792 26,701 6,275 23,039 13,721 48,415 53,748 16,186 17,865 21,335 36,313 37,450 39,898 17,011 9,284 24,309 5,131 7,513 8,539 9,248 8,781 9,649 4,149 11,533 43,175 29,828 24,165 2017* Number Economic Survey 2018 Bomet ………………………… 11,029 13,896 Kakameg a ………………………… 44,652 55,590 Vihig a ………………………… 13,653 18,932 Bung oma ………………………… 40,551 43,971 Bus ia ………………………… 18,511 Siay a ………………………… 20,591 Kis umu ………………………… 26,429 27,123 Homabay ………………………… 15,360 23,987 Mig ori ………………………… 23,001 23,594 Kis ii ………………………… 22,298 Ny amira ………………………… 13,951 20,617 Nairobi City ………………………… 51,950 56,275 36 37 38 39 40 41 42 43 44 45 46 47 275 Total 841,629 .. 2016 74,233 24,085 40,140 40,649 34,782 39,774 45,097 30,280 55,514 19,812 59,574 24,076 30,801 18,529 30,753 76,607 18,137 .. 71,316 22,443 40,732 37,348 43,788 46,898 35,677 25,726 53,513 17,932 62,483 27,136 28,353 19,447 23,007 59,682 12,059 2017* 913,087 1,097,267 1,529,421 1,233,268 61,150 23,066 32,752 33,279 33,553 37,333 35,071 28,017 47,915 17,352 50,910 15,009 23,077 10,259 21,469 55,237 7,984 2015 These are produced in Nairobi f or Keny ans abroad who applied through f oreign of f ice NPR - Not Prev iously Registred 1 31,799 25,457 21,667 Foreig n Office ………………………… .. .. .. Source: National Registration Bureau 48 Kericho ………………………… 21,329 23,160 35 1 Kajiado ………………………… 6,451 8,759 34 15,549 Narok ………………………… 12,664 33 2014 Nakuru ………………………… 31,589 45,660 2013 32 County Laikipia ………………………… 8,914 9,814 31 S /No NPR Applications 2013 954,217 127 53,901 15,758 20,887 30,507 20,814 25,644 34,866 15,256 23,145 45,584 45,618 16,113 11,586 18,209 22,101 34,782 10,219 738,064 469 47,901 14,347 22,662 18,047 18,321 21,711 19,430 21,098 39,086 12,291 39,908 12,823 14,450 13,349 12,517 32,579 7,963 2014 2016 532 75,273 19,506 40,567 41,090 36,599 39,613 41,453 33,511 52,781 19,585 55,388 22,741 23,979 20,600 31,614 62,504 17,597 654 69,203 18,824 38,418 34,270 43,094 43,027 36,528 30,074 50,665 19,481 59,022 28,717 30,260 18,430 29,905 60,685 13,434 2017* 816,477 1,431,094 1,322,747 668 53,470 16,237 27,739 20,014 26,903 27,062 26,613 21,377 30,013 15,107 44,432 14,767 16,928 13,454 9,897 36,520 8,693 2015 NPR IDs Produced Table 17.20: New Identity Card Applications Made, Produced and Collected by County, 2013 - 2017 cont… 899,582 127 58,840 15,238 31,316 24,241 22,688 29,627 24,558 20,052 34,669 12,782 44,719 11,598 22,611 7,897 17,831 32,970 9,476 2013 710,042 469 70,248 14,780 21,890 14,003 17,299 20,500 19,003 15,381 26,511 12,972 41,456 9,620 17,509 6,475 8,529 32,800 5,859 2014 2016 532 78,569 18,342 37,381 36,770 33,881 35,158 38,887 32,681 42,983 14,093 51,356 19,357 23,086 15,152 27,515 56,198 15,601 654 69,095 18,010 41,478 31,805 38,296 40,842 34,140 32,577 50,029 18,104 58,715 29,545 29,638 18,179 25,886 57,533 14,310 2017* Number 766,670 1,241,637 1,263,510 668 49,554 14,072 24,230 18,263 23,640 26,652 25,691 16,329 25,117 11,941 38,417 14,743 28,171 14,334 9,310 42,429 9,441 2015 NPR IDs Collected Chapter 17: Governance, Peace and Security Name of County, No. of S/no Special domains constituencies 1 Mombasa..................... 6 2 Kwale........................... 4 7 3 Kilifi............................. 4 Tana River.................... 3 5 Lamu............................ 2 6 Taita Taveta................. 4 7 Garissa.......................... 6 8 Wajir............................ 6 9 Mandera....................... 6 10 Marsabit....................... 4 11 Isiolo............................ 2 12 Meru............................ 9 13 Tharaka-Nithi.............. 3 14 Embu........................... 4 15 Kitui............................. 8 16 Machakos..................... 8 17 Makueni....................... 6 18 Nyandarua................... 5 19 Nyeri............................ 6 20 Kirinyaga..................... 4 21 Murang'a...................... 7 22 Kiambu........................ 12 23 Turkana....................... 6 24 West Pokot................... 4 25 Samburu....................... 3 26 Trans Nzoia................. 5 27 Uasin Gishu.................. 6 28 Elgeyo/Marakwet........ 4 29 Nandi........................... 6 30 Baringo........................ 6 Table 17.21: Registered Voters, 2016 - 2017 Registered Voters as at 31.12.2016 Male Female 257,767 192,761 98,207 104,594 180,093 204,532 46,853 49,791 29,999 26,042 65,718 59,585 64,729 59,584 64,863 61,170 62,845 62,043 63,009 61,593 29,494 30,165 254,919 281,455 83,550 85,412 124,236 119,118 182,840 208,902 263,129 246,473 169,734 170,903 139,922 141,399 193,499 195,081 148,479 140,582 244,168 244,686 478,754 468,003 90,429 62,946 65,719 69,021 31,400 37,902 145,896 128,437 187,170 163,881 73,939 70,761 147,083 132,342 95,019 95,015 Total 450,528 202,801 384,625 96,644 56,041 125,303 124,313 126,033 124,888 124,602 59,659 536,374 168,962 243,354 391,742 509,602 340,637 281,321 388,580 289,061 488,854 946,757 153,375 134,740 69,302 274,333 351,051 144,700 279,425 190,034 Male 305,521 146,178 263,598 61,668 38,554 86,506 87,910 88,619 94,786 77,390 41,533 382,022 117,039 166,099 257,010 347,041 239,824 175,956 245,497 184,060 329,825 592,700 97,496 93,477 42,173 184,800 237,952 100,250 188,494 126,962 Registered Voters as at 31.12.2017 Female 274,702 134,863 244,470 56,659 31,222 69,210 75,440 74,283 80,856 64,318 33,805 320,458 96,115 143,369 217,502 273,213 183,486 159,678 211,452 165,776 257,301 588,220 93,939 86,755 40,614 154,822 212,103 80,414 157,513 105,296 Total 580,223 281,041 508,068 118,327 69,776 155,716 163,350 162,902 175,642 141,708 75,338 702,480 213,154 309,468 474,512 620,254 423,310 335,634 456,949 349,836 587,126 1,180,920 191,435 180,232 82,787 339,622 450,055 180,664 346,007 232,258 2017 Coverage (%) Male Female Total 74.3 75.8 75.0 78.1 62.0 69.5 83.5 64.7 73.3 91.8 78.2 84.7 103.0 93.3 98.4 80.5 65.9 73.3 70.3 62.2 66.3 70.4 63.8 67.2 51.3 46.8 49.1 100.5 93.1 97.0 103.7 91.7 97.9 96.3 79.4 87.8 111.0 85.3 97.8 106.4 88.4 97.2 114.1 77.4 93.7 109.2 82.1 95.4 108.3 73.6 89.9 100.9 85.2 92.8 99.7 82.7 91.0 94.2 85.2 89.7 107.6 77.6 92.0 100.4 102.4 101.3 35.2 35.4 35.0 66.1 56.5 61.1 64.9 58.7 61.7 71.2 57.7 64.3 72.5 66.4 69.5 85.1 65.8 75.3 74.4 61.9 68.1 76.0 59.9 67.8 Number Economic Survey 2018 276 277 Total Name of County, Special domains Laikipia........................ Nakuru......................... Narok........................... Kajiado......................... Kericho......................... Bomet.......................... Kakamega.................... Vihiga........................... Bungoma..................... Busia............................. Siaya............................. Kisumu......................... Homa Bay.................... Migori.......................... Kisii.............................. Nyamira....................... Nairobi City................. Sub-Total Diaspora....................... Prisons......................... No. of constituencies 3 11 6 5 6 5 12 5 9 7 6 7 8 8 9 4 17 290 10 103 Source: Independent Electoral and Boundaries Commission 48 49 S/no 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Table 17.21: Registered Voters, 2016 - 2017 cont. 8,138,380 Male 99,014 401,080 146,338 175,062 165,639 138,726 312,331 103,987 242,632 141,809 172,845 223,408 178,715 155,895 228,889 120,347 1,045,503 8,136,597 1,783 7,743,518 15,881,898 Registered Voters as at 31.12.2016 Female Total 93,985 192,999 368,459 769,539 137,155 283,493 153,793 328,855 147,903 313,542 131,684 270,410 315,511 627,842 119,090 223,077 228,001 470,633 289,272 147,463 202,778 375,623 223,282 446,690 203,688 382,403 166,875 322,770 224,857 453,746 115,363 235,710 789,613 1,835,116 7,742,764 15,879,361 754 2,537 10,469,148 9,142,275 Registered Voters as at 31.12.2017 Male Female 115,255 131,232 493,646 455,972 180,316 161,414 210,068 201,125 205,131 170,537 177,924 144,088 401,742 341,994 154,746 117,663 306,106 253,744 189,671 161,377 254,660 203,293 289,661 249,549 254,957 221,918 206,881 181,752 298,723 247,857 151,426 127,427 1,154,482 1,096,371 10,462,312 9,139,190 2,272 2,121 4,564 964 19,611,423 Total 246,487 949,618 341,730 411,193 375,668 322,012 743,736 272,409 559,850 351,048 457,953 539,210 476,875 388,633 546,580 278,853 2,250,853 19,601,502 4,393 5,528 - - - 2017 Coverage (%) Male Female Total 93.6 78.5 85.9 85.1 78.5 81.8 69.9 62.0 65.9 83.0 80.6 81.8 83.7 72.5 78.2 82.5 65.6 74.0 95.8 72.2 83.3 111.4 69.0 88.1 91.2 69.4 79.8 108.3 78.0 91.9 115.1 73.7 92.1 99.9 82.4 91.0 105.0 76.5 89.5 89.1 69.0 78.4 95.6 66.9 80.0 90.2 65.4 76.9 81.8 74.8 78.2 88.2 73.3 80.5 .. .. .. .. .. .. Number Chapter 17: Governance, Peace and Security Economic Survey 2018 Refugees in 17.30. Table 17.22 presents the number of refugees by age and sex from 2013 to 2017. The Kenya registered refugee population declined by 1.3 per cent from 494,863 in 2016 to 488,415 in 2017. This was partly due to the voluntary repatriation of refugees from Dadaab camp. Adult refugee population increased by 2.2 per cent from 210,718 to 215,312 while child refugee population reduced by 3.9 per cent to 273,103 in 2017. Table 17.22: Refugees and Asylum Seekers by Age and Sex, 2013 - 2017 Number Category 2013 2014 2015 2016 2017* Male ................................................. 173,544 173,573 174,344 149,972 134,109 Female.............................................. 157,070 155,350 157,276 134,173 138,994 330,614 328,923 331,620 284,145 273,103 Male ................................................. 151,227 123,991 129,616 100,781 103,299 Female.............................................. 135,382 132,449 132,645 109,937 112,013 286,609 256,440 262,261 210,718 215,312 Male ................................................. 324,771 297,564 303,960 250,753 237,408 Female.............................................. 292,452 287,799 289,921 244,110 251,007 617,223 585,363 593,881 494,863 488,415 Children (< 18 yrs) Sub Total-children Adults (18+ yrs) Sub Total-adults Total (all ages) Total Source: Refugee Affairs Secretariat *Provisional Gender and 17.31. The Government continues to commit itself to socially equitable society through Development various affirmative actions such as empowerment of women. Women group registration, contributions and source of loans is shown in Table 17.23. The number of registered women groups is expected to grow by 1.3 per cent to 158,768 in 2017/18 from 156,792 in 2016/17. The total membership of women groups is expected to increase from 6.3 million in 2016/17 to 6.4 million in 2017/18. The group contributions increased by 1.1 per cent to KSh 639.5 million in 2017/18. Table 17.23: Women Groups Registration, Contributions and Source of Loans, 2013/14 - 2017/18 Women Groups 2013/14...... 2014/15...... 2015/16...... 2016/17...... 2017/18*.... Uwezo Fund Women Enterprise Fund Fund Group Fund Number of Number of contributions Number of disbursed1 Number of disbursed Groups Members (KSh Million) Beneficiaries (KSh Millions) Beneficiaries (KSh Million) 148,190 5,872,172 585.2 159,248 1,055.6 150,857 6,024,848 603.3 491,352 4,240.4 176,615 1,604.8 154,425 6,177,492 625.0 373,693 874.7 178,375 2,285.6 156,792 6,297,320 632.4 63,245 439.5 143,205 2,212.4 158,768 6,357,428 639.5 65,000 500.0 151,258 2,225.0 Source: Ministry of Labour and Social Protection , Uwezo Oversight Board and Women Enterprise Fund *Provisional 1 Funds disbursed from Uwezo fund for 2016/17 are provisional while 2017/18 are budget estimates 17.32. Funds disbursed by the Government through the Uwezo Fund is expected to increase from KSh 439.5 million in 2016/17 to KSh 500.0 million in 2017/18. The number of beneficiaries is expected to increase to 65,000 in 2017/18. 278 Chapter 17: Governance, Peace and Security 17.33. Women Enterprise Fund provides business support services such as start-ups, expansion, capacity building, marketing, promotion of linkages and infrastructure support to women groups. In 2017/18, the loans disbursed by the Women Enterprise Fund are expected to go up by 0.6 per cent from KSh 2,212.4 million in 2016/17 to KSh 2,225.0 million in 2017/18. The number of beneficiaries is expected to increase by 5.6 per cent to 151,258 in 2017/18. 17.34 Participation of women and men in key decision making positions is shown in Table 17.24. The number of women in the Parliament increased from 87 in 2016 to 97 in 2017. Number of women Cabinet Secretaries increased from 5 in 2016 to 6 in 2017. The proportion of women Principal Secretaries decreased from 36.6 per cent in 2016 to 20.0 per cent in 2017. For the first time women were elected as Governors during the August 2017 General election. Table 17.24: Key Decision Making Positions by Sex, 2016 - 2017 2016 2017* Number Number Position Female Male Total (% )Female Female Male Total Cabinet Secretary ............................................... 5 15 20 25.0 6 16 22 Principal Secretary ............................................. 15 26 41 36.6 8 32 40 Diplomatic Corp.................................................. 18 46 64 28.1 16 42 58 Deputy Secretary ............................................... 66 149 215 30.7 74 156 230 Gov ernor.............................................................. 47 47 3 44 47 Deputy Gov ernor............................................... 9 38 47 19.2 7 40 47 National A s s embly ............................................ 69 280 349 19.8 76 273 349 Senator................................................................. 18 49 67 26.9 21 46 67 Member of the County A s s embly ................... 761 1,463 2,224 34.2 745 1,479 2,224 Supreme Court Judg e........................................ 2 5 7 28.6 2 5 7 Court of A ppeal Judg e...................................... 7 18 25 28.0 7 15 22 Hig h Court Judg e............................................... 37 59 96 38.5 54 77 131 Mag is trate........................................................... 216 222 438 49.3 207 214 421 Kadhis .................................................................. 45 45 55 55 County Commis s ioner....................................... 18 29 47 38.3 17 30 47 Sub County Commis s ioner............................... 40 255 295 13.6 44 251 295 Chiefs ................................................................... 126 2,464 2,590 4.9 137 2,453 2,590 A s s is tant Chief................................................... 489 5,397 5,886 8.3 504 5,382 5,886 (% )Female 27.3 20.0 27.6 32.2 6.4 14.9 21.8 31.3 33.5 28.6 31.8 41.2 49.2 36.1 14.9 5.3 8.6 Source: Ministry of Interior and Coordination of National Gov ernment, National A ssembly , Foreign A f f airs, Judicial commission serv ice and Of f ice of the A ttorney General Social 17.35. The social protection fund was established to benefit the elderly of age 65 years and Protection above, Orphaned and Vulnerable Children (OVC), with an aim of reducing poverty and improve access to essential services. Allocation and disbursement of funds for social protection by the National Government is as shown in Table 17.25. The funds allocated to older persons is expected to increase by 8.6 per cent from KSh 7,329.5 million in 2016/17 to KSh 7,962.3 million in 2017/18. Direct cash disbursement is expected to increase by 9.5 per cent from KSh 6,699.6 million in 2016/17 to KSh 7,334.5 million in 2017/18. The funds allocated for the Orphans and Vulnerable Children (OVC) is expected to increase by 5.4 per cent from KSh 8,071.6 million in 2016/17 to KSh 8,507.6 million in 2017/18 while direct cash disbursed is expected to increase by 11.5 per cent to KSh 7,925.0 million in 2017/18. 279 Economic Survey 2018 Table 17.25: Funds for Older Persons and, Orphaned and Vulnerable Children, 2013/14 – 2017/18 Older Persons Orphans and Vulnerable Children Number of Number of Direct cash Direct cash Beneficiary Beneficiary Allocation Disbursement Allocation Disbursement Households (KSh Million) (KSh Million) Households1 (KSh Million) (KSh Million) 2013/14......... 121,625 3,168.0 2,919.0 188,538 4,763.1 4,524.9 2014/15......... 218,497 5,501.5 5,243.9 255,470 5,957.6 6,131.3 2015/16......... 310,223 7,966.3 7,445.3 351,650 9,746.3 8,439.6 2016/17......... 279,150 7,329.5 6,699.6 353,000 8,071.6 7,106.0 2017/18*....... 310,000 7,962.3 7,334.5 353,000 8,507.6 7,925.0 Source: Ministry of Labour and Social Protection * Provisional 1 The beneficiaries are paid in 6 bi-monthly payment cycles. Not all the beneficiaries might have gotten all the payments Developments 17.36. The Government continued to implement reforms in the governance justice law and order sector. In the Judiciary, more high court stations were opened while the Judiciary Committee on Elections revised and gazetted election rules of procedure for the different courts. The Judiciary also conducted intensive refresher training for the Judges and Magistrates to handle electoral disputes. In 2017, the Judiciary opened 12 new High Court stations increasing the number of counties with High Court station to 38. 17.37. On security, the National Police Service acquired anti-personnel carriers, helicopters, vehicles and recruited more police officers. Other reforms in the NPS included career progression guidelines and review of basic training curriculum. 17.38. National Environmental Management Authority implemented a National Solid Waste Management Strategy to guide sustainable solid waste management in the country to ensure a healthy, safe and secure environment for all. It is in this regard that all plastic carrier bags used as secondary packages were banned with effect from August 2017. 280 Chapter 17: Governance, Peace and Security Appendix 17.1: Classification of Offences by the Kenya Police Service Based on the Kenyan Penal Code CODE OFFENCES 1 HOMICIDE 2 3 4 OFFENCES AGAINST MORALITY CATEGORY OF OFFENCES a) Murder b) Manslaughter c) Infanticide d) Procuring Abortion e) Concealing Birth f) Suicide g) Causing Death by dangerous Driving a) Rape b) Defilement c) Incest d) Unnatural Offences(Sodomy) e) Bestiality f ) Indecent assault g) Abduction h) Bigamy OTHER OFFENCES AGAINST PERSONS a) Assault b) Creating Disturbance c) Affray ROBBERY a) Robbery b) Robbery with Violance c) Carjacking d) Robbed of M/V e) Cattle Rustling 5 BREAKING 6 THEFT OF STOCK 7 STEALING a) House Breaking b) Burglary c) Other Breakings a) Handling Stolen Property b) Stealing from Person c) Stealing by Tenants/lodgers d) Stealing from a building e) General Stealing CODE OFFENCES 8 THEFT BY SERVANT 9 VEHICLE AND OTHER THEFTS CATEGORY OF OFFENCES a) Stealing by Directors b) Stealing by employee/servant a) Theft of M/V b) Theft from M/V c) Theft of M/V part d) Theft of M/Cycle a) Possession b) Handling c) Trafficking d) Cultivating e) Usage a) Taking and Driving Motor Vehicle without Authority b) Driving under influence of alcohol 10 DANGEROUS DRUGS 11 TRAFFIC OFFENCES 12 CRIMINAL DAMAGE a) Malicious Damage b) Arson c) Negligent Acts 13 ECONOMIC CRIMES a) Obtaining by False Pretence b) Currency Forgery c) Other Fraud/Forgery Offences 14 CORRUPTION a) Soliciting for Bribe b) Accepting Bribe c) Accept Free Gifts d) Demanding by false pretence e) Other Corruption Offences 15 OFFENCES INVOLVING POLICE OFFICERS 16 OFFENCES INVOLVING TOURIST a) Soliciting for Bribe b) Accepting Bribe c) Accept Free Gifts d) Demanding by false pretence e) Other Criminal Offences a) Bag Snatching b) Other offences Against Tourists c) Other Offences involving Tourist Appendix 17.2: Description of Offences Order and administration of lawf ul authority Treason, incitement to mutiny , aiding civ il disobedience Injurious to public Stealing gov ernment property , stealing by person in public serv ice, stealing f rom state corporation A gainst person A ssault, griev ous harm, murder etc Related to property Thef t, robbery with v iolence, arson A ttempts and conspiracies Employ ment A ct A ttempts to commit of f ences, neglect to prev ent of f ence, conspiracies to commit of f ences Employ ment of aliens without permit Drugs related Possession, manuf acture, traf f ick ing etc of any quantity Various cases By -laws under the Llocal Gov ernment A ct, Traf f ict A ct, Tax A ct etc 281 ISSUES Economic Survey 2018 Environmental Economic Accounts: Energy Accounts Overview Chapter 18 K enya’s economy relies largely on natural resources which supports a variety of economic sectors. However, there has been a challenge in establishing the actual contribution and value of these natural resources to the economy. In efforts to address this challenge, it was deemed necessary that energy accounts be piloted to understand the interactions between energy and the economy to inform policy decisions. 18.2. During the review period, the total net supply of Energy in the country was 995,658.06 Terajoules (TJ), out of which 97.6 per cent was domestically produced. Transmission and distribution losses of the total electricity produced was 6,975.16 TJ, accounting for 18.7 per cent of total electricity distributed in 2017. The volume of imports, mainly drawn from petroleum products was 27,705.49 TJ while total exports which include re-exports was 3,592.72 TJ in the review period. Total Consumption of Petroleum products was 22,069.43 TJ in 2017. Introduction 18.3. The System of Environmental-Economic Accounting (SEEA) is an internationally agreed statistical framework to measure the environment and its interactions with the economy. It was adopted by the United Nations Statistical Commission (UNSC) in 2012 as the first international statistical standard for environmental-economic accounting. It forms part of broader measures aimed at complementing GDP in order to inform policy decisions. The SEEA Central Framework (SEEA-CF) is a multipurpose conceptual framework for understanding the interactions between the economy and the environment by describing physical flows and changes in stocks of environmental assets. Sustainable development requires formulation of right policies which are evidence based. To achieve sustainable development, there is need for analysis of impacts of economic policies on the environment and how environmental assets contribute to the economic production. 18.4. The framework utilizes accounting concepts, structures, rules and principles of the 2008 System of National Accounts (SNA, 2008). However, unlike SNA, SEEA-CF allows for integration of environmental information measured in physical terms with economic information measured in monetary terms into a single framework in addition to expanding the asset boundary defined in SNA. The SEEA-CF covers measurement in three main areas namely; physical flows of materials and energy within the economy and between the economy and the environment, stocks of environmental assets and changes in these stocks; and economic activity and transactions related to the environment. 18.5. These measurements are done through a series of accounts: Physical flow accounts comprising of Physical Supply and Use Tables (PSUT) for Energy and Water; and physical flow accounts for materials, including emissions to air and water. Environmental asset accounts which entail accounting for changes in stocks of mineral and energy resources and other environmental assets such as land, soil, timber, aquatic resources and other biological resources. Environmental activity accounts include environmental activity statistics such as Environmental Protection Expenditure Accounts (EPEA) and Environmental Goods and Services Sector (EGSS); and accounting for other environmental transactions, i.e. environmental subsidies and taxes. 282 Chapter 18: Environmental Economic Accounts: Energy Accounts Rationale 18.6. In 2013, the United Nations published guidelines on integrated economic statistics outlining the need to move from the traditional silo approach to a more integrated approach to produce statistics. Integrated economic statistics provide a consistent and coherent picture of the economic activities for policy, business and other analytical uses. In the recent past, several initiatives on sustainability, social progress and well-being have raised the need for integrated and coherent official statistics. This has in turn created demand for integrated and coherent official statistics necessitating statistics agencies to generate integrated economic, environmental and socio-demographic statistics. SEEA is used to measure natural capital, environment, biodiversity and sustainable development related initiatives. Objectives 18.7. The main objective of environmental-economic accounting is to measure the interactions between the economic processes and the environmental resources. The specific objectives are to identify the socio-economic drivers, pressures, impacts and responses affecting the environment; to provide indicators that express the relationship between the environment and the economy; to support accurate and precise environmental regulations and resource management policies; environmental sustainability and social equity; and to provide quantitative basis for policy design formulation. Implementation 18.8. Kenya was among four countries selected by United Nations Statistics Division (UNSD) of SEEA in to develop and strengthen environmental economic accounting. The other countries were Kenya Uganda, Malaysia and Indonesia. The aim of the project was to develop a national plan for implementation of SEEA framework and compile a pilot account for a policy relevant area. Kenya and Uganda agreed to develop national plans to guide compilation of environmental economic accounts and compile a pilot account. 18.9. Consultative meetings with stakeholders were held to create awareness about SEEA and its applications as well as to explore the availability of the required data. There was a general consensus to pilot energy accounts on the basis of their importance in the country’s economy and on the availability and ease of collecting data. Supply and Use Monetary Supply and Use Table Tables 18.10. Monetary supply and use table consists of two parts namely; supply table and use table. The table records flows of products in monetary terms relating to the use of inputs from the environment or expenditure associated with the environment. The supply table includes: output from production within the domestic economy and imports (products brought from the rest of the world). All products supplied to the economy must be recorded as used to account for all resources derived from the environment. The use table includes intermediate consumption (products used to produce other products); household final consumption (products consumed by households); government final consumption expenditure (products consumed by government); exports (products sold to the rest of the world); gross fixed capital formation (products used as assets) and inventories. The flows are classified by type of product, type of economic unit and accumulation. Total supply of each product must be equal to total use of the same product. 283 Economic Survey 2018 Box1: Monetary Supply and Use Table Industries Supply Table Product Output Use Table Product Intermediate Consumption Households Government Accumulation 1 Rest of the World Imports Household final consumption expenditure Government final consumption expenditure Gross capital Exports formation1 Total Total Supply Total Use Value added2 1 Gross capital formation is gross fixed capital formation plus changes in inventories 2 Value added is computed by netting intermediate consumption from the value of output Physical 18.11. The Physical Supply and Use Table (PSUT) records all flows of products and natural Supply and inputs from the environment to the economy, residuals from the economy to the environment Use Table and within the economy, in physical terms. The structure of the physical supply and use table is the same as that of monetary supply and use table with an extension to include flows from and to the environment. The column for government is omitted in the PSUT since it is included in the industries column. 18.12. The households in the PSUT involve the consumption of goods. Households undertake several activities for own consumption including collection of water and firewood. All the activities recorded as consumption in the household should be recorded as produced from the environment. Production activities and associated flows of natural inputs are recorded in the industries. Residues are generated as a by-product of consumption by economic units. 18.13. The input output identity states that total flows to the economy over an accounting period are either returned to the environment or accumulated. Physical flows are measured in different units depending on the material. Industries are classified using the International Standard Industrial Classification of all economic activities (ISIC Rev.4) while products are classified using the Central Product Classification (CPC V.2). 284 Chapter 18: Environmental Economic Accounts: Energy Accounts Box2: Structure of Physical Supply and Use Table Industries Households Accumulation Rest of the World Environment Total flow from the environment Total Supply of natural input Total Supply Supply Table Natural inputs Product Output Residuals Residuals generated from industry Imports Residuals generated by final household consumption Residuals from scrapping and demolition of produced assets Total Supply of residuals Use Table Natural inputs Extraction of natural inputs Energy Physical Supply and Use Table Product Intermediate Consumption Residuals Collection and treatment of waste and other residuals Total Use of natural inputs Household final Gross capital consumption formation expenditure Accumulation of waste in controlled landfill sites Exports Total Use Residuals flow directly to the environment Total Uses of residuals 18.14. The energy physical supply and use table is an accounting construct for compiling and presenting all energy entering, leaving and used within the national economy of a given country for a period of time. It expresses energy flows in a common unit called Terajoules and shows the relationship between inputs to and outputs from energy transformation processes. The physical supply and use table for energy aims to be comprehensive and records all energy flows within the economy and the environment. 18.15. Physical flows of energy are organized according to whether they represent supply or use of energy. Energy is supplied when it is produced (either when extracted directly from the environment for example the capture of energy using solar panels); or created from another source (transformation of wind to electricity) or imported, for example petroleum products. 18.16. An energy PSUT is used to assess how an economy supplies and uses energy and can also be used to examine changes in production and consumption patterns over time. Energy PSUT when combined with data from Monetary Supply and Use Tables can be used to examine changes in productivity and intensity in the use of energy natural inputs and the release of residuals. 18.17. The supply and use identity applies within the PSUT for energy. Thus, for each product measured in physical terms, the quantity of domestic production (output) and imports (total supply of products) must equal the consumption (both intermediate and final), changes in inventories and exports (total use of products). The equality between supply and use also applies to the total supply and use of natural inputs and the total supply and use of residuals. 285 Economic Survey 2018 Energy 18.18. The 2017 Energy Balance for the country is presented in Tables 18.1a, 18.1b and Balance 18.1c. All Energy supplied and used is measured in Terajoules. Total net supply of Energy in the country was 995,658.06 TJ in 2017. Domestically produced energy accounted for 97.6 per cent of total supply at 971,545.29 TJ in the review period, mainly drawn from firewood, charcoal and electricity generation sources. Firewood, charcoal and other waste production contributed 96.3 per cent of all energy produced locally in 2017. The volume of imports, mainly drawn from petroleum products, stood at 27,705.49 TJ in the review period while total exports which includes re-exports was 3,592.72 TJ. Total Consumption of Petroleum products was 22,069.43 TJ in 2017. 18.19. All electricity produced was used by the various customer categories except 6,975.16 TJ reported as transmission and distribution loss, accounting for 18.7 per cent of total electricity distributed in 2017. Total Energy transformation by the Kenya Electricity Generating Company (KENGEN) was 26,575.15 TJ, contributing 72.9 per cent of total energy transformed over the same period. Energy transformed by Independent Power Producers was 9,736.22 TJ while 158.04 TJ of energy was transformed by Off-grid electricity plants in the review period. 18.20. In 2017, electricity consumption was 30,276.52 TJ. Consumption by Domestic and Small Commercial; and Large and Medium Commercial consumers was 27,818.13 TJ accounting for 91.9 per cent of total electricity demand. 286 Tab Chapter 18: Environmental Economic Accounts: Energy Accounts ble 18.1a: Supply and Demand for Coal, Coke and Non-Renewable Feedstocks, 2017 Te ra J oule s (TJ ) Non-re ne wa ble fe e ds tocks Ene rg y Produc ts CPC De finition CPC Code Coa l a nd Coke Wood cha rcoa l 110 Fue l wood, in Wa s te s or log s , in bille ts , s cra ps in twig s , in fa g g ots or in s imila r forms 34510 0313 391 Dome s tic P roduction Imports Dome s tic E xports Re -E xports S tock cha ng e s S ub-tota l: S upply 19.38 62,286.33 847,588.5 25,201.07 19.38 62,286.33 847,588.49 25,201.07 S ta tis tica l diffe re nce s 19.38 S ub-tota l: De ma nd - S ub-tota l: Ene rg y tra ns forma tion E le ctricity pla nts (Ke ng e n) E le ctricity pla nts (Inde pe nde nt P owe r P roduce rs (IP P s )) E le ctricity pla nts (E me rg e ncy P owe r P roduce rs (E P P s )) E le ctricity pla nts (Off-g rid)) Oil re fine rie s Cha rcoa l ma nufa cturing /burning Fire wood Othe r tra ns forma tion E ne rg y indus try own us e - - - - - - - - S ub-tota l: Ene rg y de ma nd Ele c tric ity : Dome s tic a nd S ma ll Comme rcia l-IC La rg e a nd Me dium Comme rcia l -IC S tre e t Lig hting -F Off pe a k Rura l e le ctrifica tion-F Indus try : Ag riculture Mining & Qua rying Ma nufa cturing E le ctricity, Ga s , S te a m a nd Air Conditioning S upply Cons truction Roa d Tra ns port Ra il Tra ns port Air Tra ns port Othe r Tra ns port Accommoda tion a nd Food S e rvice Activitie s Othe r Comme rcia l S e ctors P ublic Adminis tra tion a nd De fe ns e Hous e holds - 1 Te ra joule (TJ )=10^12 J oule s 62,286.33 62,286.33 1,146.64 846,441.85 846,441.85 25,201.07 25,201.07 122,550.00 62,286.33 723,891.85 1000 Tonne s =4.184 TJ 1GW h=3.6 TJ 287 S ub-Tota l 25,201.07 935,075.89 935,075.89 1,146.64 933,929.25 933,929.25 122,550.00 811,379.25 Economic Survey 2018 Table 18.1b: Supply and Demand for Electricity, 2017 Tera J oules (TJ ) Energ y Products CPC Definition CPC Code Dome s tic P roduction Imports Dome s tic Exports Re -Exports S tock cha nge s S ub-total: S upply S ta tis tica l diffe re nce s Pow er Generation Geothermal S olar Wind Hydro CoGeneration Thermal 171 171 171 171 171 171 9,996.56 17,122.75 1.09 219.55 9,122.70 6.73 36,469.40 36,469.40 826.42 44.14 9,996.56 17,122.75 1.09 219.55 9,122.70 6.73 36,469.40 37,251.68 - - - (0.01) - - S ub-total: Demand 9,996.56 17,122.75 1.09 219.56 9,122.70 6.73 S ub-total: Energ y trans formation Ele ctricity pla nts (Ke nge n) Ele ctricity pla nts (Inde pe nde nt P owe r P roduce rs (IP P s )) Ele ctricity pla nts (Eme rge ncy P owe r P roduce rs (EP P s )) Ele ctricity pla nts (Off-grid)) Oil re fine rie s Cha rcoa l ma nufa cturing/burning Fire wood Othe r tra ns forma tion Ene rgy indus try own us e 9,996.56 9,924.84 71.72 - 17,122.75 12,994.02 4,128.73 - 219.56 219.55 0.01 - 9,122.70 3,436.73 5,529.03 156.94 - 6.73 - - - 1.09 1.09 - - - - - 6.73 - 171 (0.01) 6,975.16 30,276.52 36,469.41 26,575.15 9,736.22 158.04 - - - 30,276.52 12,701.82 15,116.30 151.87 216.28 2,090.24 Table 18.1c: Supply and Demand for Petroleum Products, 2017 S ub-total: Energ y demand Electricity: Dome s tic a nd S ma ll Comme rcia l-IC La rge a nd Me dium Comme rcia l -IC S tre e t Lighting-F Off pe a k Rura l e le ctrifica tion-F Indus try: Agriculture Mining & Qua rying Ma nufa cturing Ele ctricity, Ga s , S te a m a nd Air Conditioning S upply Cons truction Roa d Tra ns port Ra il Tra ns port Air Tra ns port Othe r Tra ns port Accommoda tion a nd Food S e rvice Activitie s Othe r Comme rcia l S e ctors P ublic Adminis tra tion a nd De fe ns e Hous e holds Electricity energ y Total Pow er dis tribution Generation 1 Terajoule (TJ )=10^12 J oules 1000 Tonnes =4.184 TJ 1GWh=3.6 TJ 288 289 1GWh=3.6 TJ 1000 Tonnes =4.184 TJ 1Tota l c olumn is a s umma tion of Ta bles 17.1(a ), 17.1(b) a nd 17.1(c ) 1 Tera joule (TJ )=10^12 J oules S ub-total: Energ y demand Elec tric ity: Dome s tic a nd S ma ll Comme rcia l-IC La rge a nd Me dium Comme rcia l -IC S tre e t Lighting-F Off pe a k Rura l e le ctrifica tion-F Indus try: Agriculture Mining & Qua rying Ma nufa cturing Ele ctricity, Ga s , S te a m a nd Air Conditioning S upply Cons truction Tra ns port a nd s tora ge Accommoda tion a nd Food S e rvice Activitie s Othe r Comme rcia l S e ctors P ublic Adminis tra tion a nd De fe ns e Hous e holds 2,718.4 2,708.9 9.5 0.8 15.2 - 15.8 1.0 31.8 5.6 5,185.8 0.2 43.9 18.5 - 16.0 - 2,718.4 5,302.6 - 5,302.6 S ub-total: Demand S ub-total: Energ y trans formation Ele ctricity pla nts (Ke nge n) Ele ctricity pla nts (Inde pe nde nt P owe r P roduce rs (IP P s )) Ele ctricity pla nts (Eme rge ncy P owe r P roduce rs (EP P s )) Ele ctricity pla nts (Off-grid)) Oil re fine rie s Cha rcoa l ma nufa cturing/burning Fire wood Othe r tra ns forma tion Ene rgy indus try own us e (128.7) (4.6) 1,641.8 S ta tis tica l diffe re nce s 16.0 2,590 11 6,944 5,776.1 3.7 3,182.7 12.5 1.1 6,946.8 0.0 2.4 33342 33312 J e t fue l 33311 Motor S pirit Avia tion (P re mium ga s oline a nd Re gula r) CPC Code Dome s tic P roduction Imports Dome s tic Exports Re -Exports S tock cha nge s S ub-total: S upply CPC Definition Energ y Produc ts 4.0 0.2 12.2 177.6 71.1 20.3 6.2 109.0 0.0 1,474.0 1,874.6 - 1,874.6 (1,732.2) 142 146.0 2.2 1.5 33349 Illumina ting Ke ros e ne - - - - - - 12.7 13 13.2 0.4 0.1 33350 232.1 102.6 1,020.9 3.5 422.6 6,025.4 25.9 754.2 141.4 8,728.6 - 8,728.6 1,105.1 9,834 9,894.4 4.5 56.2 33360 0.2 2.9 2.0 - 5.2 - 5.2 (0.4) 5 4.8 0.0 0.0 33360 - - - - - 0.7 1 2.8 0.0 2.0 Refinery produc ts Liquid fuels White s pirit Light Die s e l He a vy Othe r Ga s a nd s pe cia l Oil Die s e l Oil Oils n.e .c boiling point indus tria l s pirits 104.9 64.2 1,039.9 52.4 1.4 10.9 0.4 920.2 2.3 2,196.5 - 2,196.5 550.5 2,747 2,887.5 12.1 128.4 33370 Fue l oils n.e .c. 11.2 3.9 35.2 25.7 10.9 70.3 0.7 30.8 7.4 196.0 - 196.0 (297.9) (102) 7.4 108.2 1.0 33380 Lubrica ting Oils - - - - 10.1 10 10.4 0.3 0.1 33380 Lubrica ting Gre a s e s Gas Liquifie d P e trole um P e trole um ga s e s a nd S ub-Total Ga s (L.P .G) othe r ga s e ous hydroca rbons , e xce pt na tura l ga s 33390 334 334 26,859.69 327.3 830.4 0.0 137.91 2.2 4.2 0.0 3,410.67 21.6 13.5 23,311.11 304 813 0 1,241.68 302.0 (217.2) 0.0 22,069.43 1.5 1,029.9 22,069.43 1.5 1,029.9 2.4 370.35 172.58 0.7 2,205.23 64.3 1.5 14.1 277.78 511.61 10.7 14,047.57 20.0 53.52 1,915.57 55.6 182.75 3.6 858.5 2,332.47 Othe r Oils n.e .c. 370.35 172.58 124,755.23 277.78 511.61 14,047.57 53.52 1,915.57 182.75 813,711.71 - 12,701.82 15,116.30 151.87 216.28 2,090.24 986,275.20 971,545.29 27,705.49 182.04 3,410.67 995,658.06 9,382.85 1,022,744.61 36,469.41 26,575.15 9,736.22 158.04 - Total1 Chapter 18: Environmental Economic Accounts: Energy Accounts Economic Survey 2018 Energy 18.22. Physical flows of energy are presented in Tables 18.2a and 18.2b. Total Energy Supply Physical was 1,936,459.06 TJ out of which, 937,221.51 TJ was extracted from the environment while Supply and 27,692.25 TJ was imported. The Agriculture industry transformed 908,728.18 TJ to energy Use Table products, mainly from firewood while Electricity, Gas, Steam and Air Conditioning industry (PSUT) transformed 36,469.41 TJ to energy products in 2017. 18.23. Total electricity consumption (excluding losses) was 30,320.66 TJ while total petroleum consumption stood at 26,859.69 TJ during the review period. Electricity sales to households and agriculture sectors recorded a share of 34.6 per cent and 8.4 per cent to total electricity use, respectively in 2017. 290 291 CPC 33410 25,201.07 935,075.89 - 36,469.41 - Table 18.2b: Pilot Physical Use Table for Energy, 2017 Ac c umula tion refers to net inventories - - - 33390 33370 33380 33380 - - - - 33350 33360 33360 17100 11010 33311 33312 33320 33341 - 158.04 - 17100 17100 1,146.64 9,736.22 17100 34510 03131 26,575.15 62,286.33 846,441.85 Ma nufa c turing 17100 17100 17100 17100 17100 39140 03110 Ag ric ulture 1GW h=3.6 TJ The c olumn refers to una lloc a ted c ons umption or c ons umtion tha t c a nnot be a lloc a ted to a s pec ific indus try or is a c ombina tion of more tha n one indus try 1000 Tonnes =4.184 TJ 1 Tera joule (TJ )=10^12 J oules RES IDUALS : E xtra ction Tra ns forma tion Los s e s Othe r TOTAL S UPPLY Liquifie d P e trole um Ga s (L.P .G) ENERGY PRODUCTS : E le ctricity (Ke ng e n) E le ctricity (Inde pe nde nt P owe r P roduce rs (IP P s )) E le ctricity (E me rg e ncy P owe r P roduce rs (E P P s )) E le ctricity (Off-g rid)) Oil re fine rie s Cha rcoa l Fire wood Othe r tra ns forma tion E ne rg y indus try own us e E le ctricity Coa l a nd Coke Motor S pirit P re mium Avia tion g a s oline J e t fue l Illumina ting Ke ros e ne White s pirit a nd s pe cia l boiling point indus tria l s pirits Lig ht Die s e l Oil He a vy Die s e l Oil Othe r Ga s Oils n.e .c Fue l oils n.e .c. Lubrica ting Oils Lubrica ting Gre a s e s Othe r pe trole um oils n.e .c. INDUS TRIES NATURAL INPUTS : S ola r Wind Hydro Ge o-The rma l Biog a s Bioma s s Wood Mining & Qua rrying Elec tric ity, Ga s , S tea m a nd Air Tra ns port Conditioning Cons truc tion a nd S tora g e S upply - Table 18.2a: Pilot Physical Supply Table for Energy, 2017 - - Ac c ommod a tion a nd Other Food Commerc ia l S ervic e S ec tors Ac tivities - - - - - - - - Public Adminis tra ti on a nd Undefined Defens e Hous eholds - - 27,692.25 830.45 327.31 9,894.41 4.77 2.76 2,887.51 7.38 10.43 826.42 19.38 6,946.82 12.47 5,776.12 146.02 937,221.51 1.09 219.55 9,996.56 17,122.75 6.73 909,874.82 830.45 327.31 9,894.41 4.77 2.76 2,887.51 7.38 10.43 158.04 62,286.33 846,441.85 826.42 19.38 6,946.82 12.47 5,776.12 146.02 9,736.22 26,575.15 1.09 219.55 9,996.56 17,122.75 6.73 909,874.82 1,146.64 25,201.07 1,936,459.06 Flow s from / Ac c umula tio Res t of the to the World environment Tota l n/S toc k Tera J oules (TJ ) Chapter 18: Environmental Economic Accounts: Energy Accounts 292 1,915.57 17,211.60 - 182.75 8,414.32 4,287.50 12,555.93 151.87 216.28 - 1,612,687.74 25,201.07 723,891.85 62,286.33 1,146.64 2,090.24 858.45 3.64 - - 55.58 141.42 2.26 7.41 - 754.16 1.98 920.18 30.80 - 1,241.68 (217.23) 0.00 302.01 12.73 1,105.11 (0.42) 0.71 550.46 (297.92) 10.07 (4.63) (128.74) (1,732.24) 9.47 0.04 1,474.02 1,641.78 787,324.82 Hous eholds 3,592.72 44.14 17.76 0.04 23.76 0.48 60.65 0.01 2.05 140.53 109.27 0.36 2.39 1.14 3,186.47 3.66 6,975.17 6.13 6,981.31 25,201.07 6,975.17 6.13 1,936,459.06 15,116.30 151.87 216.28 2,090.24 44.14 846,441.85 62,286.33 1,146.64 12,701.82 830.45 0.04 - 327.31 13.20 9,894.41 4.77 2.76 2,887.51 7.38 10.43 6,946.82 12.47 5,776.12 146.02 1.09 219.55 9,996.56 17,122.75 6.73 909,874.82 Tera J oules (TJ ) Flow s from / Ac c umula tio Res t of the to the n/S toc k World environment Tota l 18.51 Public Adminis tra ti on a nd Undefined Defens e - 43.86 109.00 Ac c ommod a tion a nd Other Food Commerc ia l S ervic e Ac tivities S ec tors INDUS TRIES CPC Ag ric ulture NATURAL INPUTS : S ola r 17100 Wind 17100 Hydro 17100 Ge o-The rma l 17100 Co-Ge ne ra tion 17100 Bioma s s Wood ENERGY PRODUCTS CONS UMPTION: Petroleum: Motor S pirit P re mium 33100 15.80 1.01 31.80 5.62 5,185.82 0.21 Avia tion g a s oline 33100 0.80 15.16 J e t fue l 33200 2,708.92 Illumina ting Ke ros e ne 33341 3.99 0.15 12.15 177.61 71.11 20.29 6.25 White s pirit a nd s pe cia l boiling point indus tria l 33350 s pirits Lig ht Die s e l Oil 33360 232.09 102.64 1,020.86 3.54 422.61 6,025.42 25.90 He a vy Die s e l Oil 33370 0.25 2.94 Othe r Ga s Oils n.e .c Fue l oils n.e .c. 33370 104.89 64.18 1,039.93 52.36 1.36 10.94 0.41 Lubrica ting Oils 33370 11.19 3.86 35.18 25.66 10.91 70.27 0.75 Lubrica ting Gre a s e s 33370 Othe r pe trole um oils n.e .c. 33380 1.54 Liquifie d P e trole um Ga s 33410 2.38 20.01 0.74 14.12 10.74 64.25 (L.P .G) Unde fine d Elec tric ity: 17100 Dome s tic a nd S ma ll Comme rcia l-IC La rg e a nd Me dium Comme rcia l -IC 2,560.37 S tre e t Lig hting -F Off pe a k Rura l e le ctrifica tion-F Othe r B ioma s s : Fire wood 03131 122,550.00 Cha rcoa l Wood/P roce s s Wa s te 39280 Fa rm re s idue /Anima l crop 34654 re s idue RES IDUALS : E xtra ction Tra ns forma tion Los s e s Othe r 172.58 TOTAL US E 2,930.72 247,305.23 27,624.47 511.61 14,047.57 53.52 1 Te ra joule (TJ )=10^12 J oule s 1000 Tonne s =4.184 TJ 1GWh=3.6 TJ The unde fine d re fe rs to una lloca te d cons umption or cons umtion tha t ca nnot be a lloca te d to a s pe cific indus try or is a combina tion of more tha n one indus try Accumula tion re fe rs to cha ng e s in inve ntorie s Mining & Qua rrying Elec tric ity, Ga s , S tea m a nd Air Tra ns port Conditioning Ma nufa c turing Cons truc tion a nd S tora g e S upply 1.09 219.55 9,996.56 17,122.75 6.73 122,550.00 - Economic Survey 2018 Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya Highlights of 2015/16 Basic Report on WellBeing in Kenya Introduction T Chapter 19 his chapter presents highlights of the poverty situation in Kenya based on the 2015/16 Kenya Integrated Household Budget Survey (2015/16 KIHBS). The 2015/16 KIHBS provides data on a wide range of indicators to assess the progress made in improving the living standards of the population as well as provide the basis of resource allocation at national and county levels. Previously, the Kenya National Bureau of Statistics (formerly Central Bureau of Statistics) conducted the first KIHBS in 2005/06. 19.2. Household Budget Surveys (HBS) are the best sources of data for measurement of money metric poverty and inequality. Earlier, a series of Welfare Monitoring Surveys (WMS,) were conducted in 1992, 1994 and 1997. Besides WMSs, the Rural Household Budget Survey (RHBS) was conducted in 1981/82 while the Urban Household Budget Surveys (UHBSs) were conducted in 1983/84 and 1993/94. Survey 19.3. The 2015/16 KIHBS was conducted from September 2015 to August 2016 to generate Objectives data towards meeting multiple statistical production objectives and provide benchmark indicators to; inform the development of the third Medium Term Plan (MTP III) and monitor Kenya’s progress towards achieving the Sustainable Development Goals (SDGs). 19.4. Specifically, the survey objectives were to: update the poverty and inequality indicators at national and county levels; provide monetary, non-monetary and multi-dimensional indicators and socio-economic profiles of living standards; update labour force indicators; update consumption basket to produce new Consumer Price Index (CPI) series, and provide data to update the household sector input-output structure of the System of National Accounts (SNA). Survey 19.5. The 2015/16 KIHBS was designed to provide estimates for various socio-economic Methodology indicators at national, rural/urban and county levels. The survey sample was drawn from the fifth National Sample Survey and Evaluation Programme (NASSEP V). A total of 2,400 clusters were selected proportionally from both rural and urban areas in the first stage and 10 households from each of the clusters in the second stage, culminating in a total sample of 24,000 households. 19.6. The survey utilized a set of seven questionnaires (three main, two diaries, one market prices and one community). The questionnaires were used to collect the required data from the respondents through face to face interviews. The data capture for the survey was done alongside data collection. Poverty 19.7. The measure of welfare used in the 2015/16 KIHBS was based on consumption Measurement expenditures rather than income. In the survey, household consumption expenditure refers Approach to the value of goods and services acquired for final consumption plus those received in kind and consumed by the household. Consumption includes all goods and services that were acquired or purchased for use by households, but excludes those used for business purposes or accumulation of wealth. 293 Economic Survey 2018 19.8. This is in line with the previous welfare reports for Kenya (GoK, 1997, 2000 and 2007) and international best practices. The measure of nominal household total consumption expenditure, an aggregate measure consisting of expenditures on food and non-food consumption, was computed following guidelines provided by Deaton and Zaidi (2002). 19.9. The 2015/16 KIHBS collected information on food and non-food consumption. The food consumption component included four sub-components; purchases, own production, stocks, and gifts on food items, with a recall period of seven days. The non-food consumption by households was collected in separate sections of the survey questionnaire with recall periods of one month, three months or one year, depending on the frequency of acquiring the item. 19.10. The household final consumption expenditure aggregate excluded the lumpy health expenditures (except regular purchases over the counter medication), user value of consumable durables, and infrequent expenses such as legal fees and expenses, home repair and improvements, as well as expenditure on; social ceremonies, marriages, births, funerals, and rent in rural areas. Adjusting for Differences in Needs 19.11. The aim of poverty measurements is to obtain a measure of an individual’s wellbeing in order to make welfare comparison across households with different sizes and demographic composition. The households’ composition have different consumption needs based on their demographic characteristics. These needs are taken into account when making welfare comparison across households. The aggregate consumption therefore, needed to be adjusted to make it comparable across households. Equivalence scales were used to convert household consumption aggregates into money metric measures of an individual’s welfare. To adjust for intra-household differences in needs, the equivalence scales developed by Anzagi and Bernard (1977a, 1977b) were used. These adult equivalence scales weigh an individual; aged 0-4 years as 0.24 of an adult, aged 5-14 as 0.65 of an adult and older than 14 years as an adult. Computing 19.12. The poverty lines were derived from the 2015/16 KIHBS data using the Cost-of-Basic Poverty Needs (CBN) method. The food poverty line was estimated as the cost, in monetary terms, Lines of consuming 2,250 kilocalories per day per adult equivalent. Using this approach, the food poverty lines per adult equivalent per month were computed as KSh 1,954 for rural areas and KSh 2,551 for urban areas, respectively. The overall (absolute) poverty lines per adult per month were computed as KSh 3,252 for rural areas and KSh 5,995 for urban areas. Adjusting for Spatial and Seasonal Price Variation 19.13. The respondents in 2015/16 KIHBS paid different prices for comparable goods during the survey period. Due to both temporal and spatial variations, it was necessary to construct an index that would simultaneously adjust the final consumption aggregate for differences in the cost of living. A Paasche price index referenced to national median prices in urban and rural areas was developed to adjust each household’s nominal consumption aggregate. The median prices used for referencing the price index were identical to those used for computing and valuing the rural and urban food basket and poverty lines. Poverty 19.14. Food Poverty refers to households and individuals whose monthly adult equivalent Estimates food consumption expenditure per person is less than KSh 1,954 in rural and peri-urban areas, and less than KSh 2,551 in core-urban areas. 19.15. Overall Poverty refers to households and individuals whose monthly adult equivalent total consumption expenditure per person is less than KSh 3,252 in rural and peri-urban areas, and less than KSh 5,995 in core-urban areas. 294 Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya 19.16. Hardcore or Extreme Poverty refers to households and individuals whose monthly adult equivalent total food and non-food consumption expenditure per person is less than KSh 1,954 in rural and peri-urban areas, and less than KSh 2,551 in core-urban areas. Expenditure 19.17. The mean monthly expenditure patterns on food and non-food items by residence and patterns county are presented in Table 19.1. The mean monthly expenditure at national level stood at KSh 7,811, with KSh 4,239 spent on food and KSh 3,572 on non-food. The total mean expenditure per adult equivalent on both food and non-food in core-urban households was on average more than double that of households in rural areas. Households in rural areas spent more than 60 per cent of their income on food which is higher than the 48.8 per cent spent on food by households in core-urban areas. 19.18. The mean monthly food expenditure per adult equivalent share accounted for 54.3 per cent of household consumption expenditure at the national level. The analysis by counties shows that households in Turkana had the highest mean monthly expenditure per adult equivalent share on food at 76.2 per cent while Nairobi City registered the lowest share of 43.0 per cent. The highest average monthly total expenditure was KSh 14,311 in Nairobi City County and the least was KSh 3,461 in Mandera County. 19.19. In addition, results by counties indicate that food expenditure accounted for a higher share of the overall average monthly total expenditure per adult equivalent in; Wajir (71.0%), Siaya (68.9%) and Samburu (67.8%) counties. On the other hand, the least share of average monthly total expenditure on food was recorded in Kiambu (47.6%), Kajiado (49.0%) and Mombasa (49.8%) counties. Further analysis shows that Mombasa, Kiambu and Machakos counties recorded relatively high average monthly total expenditure of KSh 10,970, KSh 9,594 and KSh 8,455, respectively. However, Wajir, West Pokot and Busia counties recorded the least average monthly total expenditure of KSh 3,784, KSh 3,914 and KSh 3,924, respectively. 295 Economic Survey 2018 Table 19.1: Mean Monthly Food and Non-Food Expenditure per Adult Equivalent, 2015/16 M ean Expenditure (KSh) Percentage share Food Non-food Total Food Nonfood National........................ 4,239 3,572 7,811 54.3 45.7 Residence / County Rural............................. Peri-urban.................... Core urban.................... 3,447 3,792 5,550 1,879 2,749 6,349 5,326 6,540 11,900 64.7 58.0 46.6 35.3 42.0 53.4 Mombasa...................... Kwale............................ Kilifi............................. Tana River.................... Lamu............................. Taita / Taveta................ Garissa.......................... Wajir............................. Mandera........................ Marsabit....................... Isiolo............................ Meru............................. Tharaka - Nithi............. Embu............................. Kitui.............................. Machakos..................... Makueni........................ Nyandarua..................... Nyeri............................. Kirinyaga...................... Murang'a....................... Kiambu......................... Turkana......................... West Pokot.................. Samburu........................ Trans Nzoia.................. Uasin Gishu.................. Elgeyo / Marakwet...... Nandi............................ Baringo......................... Laikipia......................... Nakuru.......................... Narok............................ Kajiado......................... Kericho........................ Bomet........................... Kakamega..................... Vihiga........................... Bungoma...................... Busia............................. Siaya............................. Kisumu......................... Homa Bay..................... Migori.......................... Kisii.............................. Nyamira........................ Nairobi City................. 5,459 3,924 4,081 2,935 5,006 4,023 2,954 2,686 2,287 2,983 3,592 4,612 4,382 4,148 3,424 4,403 3,620 4,254 5,402 4,359 3,690 4,567 3,704 2,552 3,037 3,543 3,778 3,108 3,215 3,938 3,960 4,765 4,559 4,122 3,342 3,179 3,311 2,951 3,619 2,617 4,106 4,435 3,724 3,239 3,336 3,402 6,153 5,510 2,546 3,828 2,017 2,719 2,893 1,668 1,097 1,173 1,510 2,661 2,616 2,861 2,859 2,054 4,053 2,453 2,439 3,818 3,010 2,705 5,027 1,158 1,362 1,440 2,942 3,252 1,800 2,069 2,773 2,287 3,869 3,706 4,285 2,260 1,443 1,961 1,686 2,222 1,307 1,853 3,238 1,954 1,833 2,043 2,379 8,158 10,970 6,470 7,908 4,952 7,725 6,917 4,622 3,784 3,461 4,493 6,252 7,228 7,243 7,007 5,478 8,455 6,073 6,694 9,220 7,369 6,394 9,594 4,862 3,914 4,477 6,485 7,030 4,909 5,284 6,712 6,247 8,634 8,265 8,407 5,602 4,622 5,272 4,637 5,841 3,924 5,959 7,673 5,677 5,072 5,378 5,781 14,311 49.8 60.6 51.6 59.3 64.8 58.2 63.9 71.0 66.1 66.4 57.5 63.8 60.5 59.2 62.5 52.1 59.6 63.5 58.6 59.2 57.7 47.6 76.2 65.2 67.8 54.6 53.7 63.3 60.8 58.7 63.4 55.2 55.2 49.0 59.7 68.8 62.8 63.6 62.0 66.7 68.9 57.8 65.6 63.9 62.0 58.8 43.0 50.2 39.4 48.4 40.7 35.2 41.8 36.1 29.0 33.9 33.6 42.6 36.2 39.5 40.8 37.5 47.9 40.4 36.4 41.4 40.8 42.3 52.4 23.8 34.8 32.2 45.4 46.3 36.7 39.2 41.3 36.6 44.8 44.8 51.0 40.3 31.2 37.2 36.4 38.0 33.3 31.1 42.2 34.4 36.1 38.0 41.2 57.0 296 Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya Food, Overall and Hardcore (Extreme) Poverty at National Level 19.20. Table 19.2 shows the headcount poverty rates and population of the poor at national level and by area of residence. The food poverty headcount rate at national level in 2015/16 was 32.0 per cent of the population (14.5 million individuals). These individuals were unable to consume the minimum daily calorific requirement of 2,250 Kilocalories (Kcal) as per expenditures on food. The highest food poverty incidence was in rural areas, where 35.8 per cent of the population were below the food poverty line compared to 28.9 per cent in periurban areas and 24.4 per cent in core-urban. The results further show that 23.8 per cent of households were food poor in 2015/16. 19.21. The overall poverty headcount rate for individuals at the national level was 36.1 per cent in 2015/16, implying that 16.4 million individuals lived in overall poverty. The highest overall poverty incidence was in rural areas, where 40.1 per cent of the residents were considered as overall poor compared to 27.5 per cent in peri-urban and 29.4 per cent in core-urban areas. Further analysis indicates that 27.4 per cent of households lived in overall poverty. 19.22. At the national level, the hardcore poverty headcount rate for individuals was 8.6 per cent in 2015/16. This implies that 3.9 million people lived in conditions of abject poverty and were unable to afford the minimum required food consumption basket. Rural areas recorded the highest incidence of extreme poverty of 11.2 per cent (3.2 million individuals). Figure 19.1 presents information on headcount poverty measures; food poverty, overall poverty and extreme poverty. 19.23. Table 19.3 summarizes food, overall and hardcore poverty measures for individuals by residence and county. The findings are further illustrated in Figure 19.2, ranking overall poverty incidence estimates at the county level in ascending order. 297 Economic Survey 2018 Table 19.2: Summary of Headcount Poverty Measures, 2015/16 Poor Individuals Pα=0 Residence National Rural Peri-Urban Core-Urban Poor Households Pα=0 Poor People (Adult equivalent-Adulteq) Pα=0 Headcount Number of Number of Number of % of % of % of Poverty people in households in Adulteq in Population thousands Households thousands Adulteq thousands Measures Food Poverty ....... 32.0 14,539 23.8 2,718 31.9 11,594 Overall Poverty ... 36.1 16,401 27.4 3,126 35.3 12,847 Hardcore Poverty 8.6 3,908 6.0 682 8.3 3,037 Food Poverty ....... 35.8 10,419 28.1 1,808 35.7 8,213 Overall Poverty ... 40.1 11,687 32.6 2,097 39.5 9,086 Hardcore Poverty 11.2 3,273 8.7 560 11.0 2,530 Food Poverty ....... 28.9 965 21.5 173 29.1 789 Overall Poverty ... 27.5 920 21.1 166 27.3 768 Hardcore Poverty 6.0 199 4.6 37 6.0 163 Food Poverty ....... 24.4 3,155 17.7 736 24.3 2,592 Overall Poverty ... 29.4 3,795 20.6 880 28.3 2,915 Hardcore Poverty 3.4 436 2.0 85 3.2 343 Figure 19.1: Headcount Poverty Measures by Area of Residence, 2015/16 298 Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya Table 19.3: Food, Overall and Hardcore Poverty Estimates (Individual) by Residence and County, 2015/16 Residence/ County Food poverty Food poverty (%) Overall Poverty Poverty Overall Poverty Gap (%) Poverty (%) Gap (%) Hardcore poverty Population Hardcore Poverty (‘000) poverty (%) Gap (%) National................... 32.0 9.2 36.1 10.4 8.6 2.2 45,371 Rural......................... Peri-Urban............... Core-Urban.............. 35.8 28.9 24.4 10.3 7.4 7.2 40.1 27.5 29.4 11.5 6.9 8.9 11.2 6.0 3.4 2.9 1.2 0.8 29,127 3,340 12,905 Mombasa.................. Kwale........................ Kilifi.......................... Tana River................ Lamu........................ Taita /Taveta............ Garissa...................... Wajir......................... Mandera................... Marsabit................... Isiolo......................... Meru......................... Tharaka-Nithi.......... Embu........................ Kitui......................... Machakos................. Makueni................... Nyandarua............... Nyeri........................ Kirinyaga.................. Murang’a.................. Kiambu..................... Turkana.................... West Pokot............... Samburu................... Trans Nzoia.............. Uasin Gishu.............. Elgeyo / Marakwet... Nandi....................... Baringo..................... Laikipia..................... Nakuru..................... Narok....................... Kajiado..................... Kericho..................... Bomet....................... Kakamega................. Vihiga....................... Bungoma.................. Busia......................... Siaya......................... Kisumu..................... Homa Bay................ Migori...................... Kisii.......................... Nyamira................... Nairobi City............. 23.6 41.1 48.4 55.4 19.9 38.9 45.2 41.3 61.9 55.6 34.2 15.5 31.2 28.3 39.4 24.1 30.7 29.8 15.5 18.8 22.7 23.5 66.1 57.3 60.1 33.3 38.2 44.8 31.5 41.4 28.5 19.6 22.1 36.9 31.4 32.8 33.3 36.6 32.4 59.5 27.3 32.5 22.7 32.0 44.5 36.3 16.1 7.2 10.4 12.6 18.2 4.8 9.0 14.4 11.8 26.4 17.9 9.2 3.8 7.1 6.9 12.5 6.8 9.1 5.9 3.0 3.0 5.7 5.9 32.9 20.4 22.7 9.9 11.7 10.8 8.3 10.8 9.2 4.8 6.7 12.3 7.3 5.6 8.3 9.5 9.5 17.5 7.2 8.3 6.0 7.9 11.6 10.1 3.9 27.1 47.4 46.4 62.2 28.5 32.3 65.5 62.6 77.6 63.7 51.9 19.4 23.6 28.2 47.5 23.3 34.8 34.8 19.3 20.0 25.3 23.3 79.4 57.4 75.8 34.0 41.0 43.4 36.0 39.6 45.9 29.1 22.6 40.7 30.3 48.8 35.8 43.2 35.7 69.3 33.8 33.9 33.5 41.2 41.7 32.7 16.7 7.5 11.1 12.3 20.0 5.5 7.7 24.1 16.3 32.8 23.4 15.5 4.9 3.8 6.4 13.4 5.7 8.8 7.2 2.4 3.5 6.0 6.6 46.0 20.1 32.1 10.4 12.9 13.4 9.4 9.7 14.9 7.8 6.0 13.1 8.1 9.3 9.5 11.5 9.5 22.3 8.7 8.7 8.4 8.0 10.8 9.1 3.4 2.2 5.9 7.0 17.9 3.2 5.3 23.8 10.5 38.9 23.8 8.9 2.8 1.8 4.0 12.8 3.5 6.6 3.4 0.2 0.9 5.2 3.1 52.7 26.2 42.2 9.7 12.1 12.2 8.0 8.5 15.0 3.7 5.5 11.4 7.3 6.1 6.9 8.2 8.8 26.8 6.1 6.0 5.9 3.6 7.5 7.6 0.6 0.8 0.7 1.9 5.3 0.8 1.0 6.7 3.3 11.0 6.3 2.0 0.5 0.2 1.1 2.7 0.7 1.1 0.5 0.0 0.2 0.8 0.4 24.3 6.0 11.7 2.2 2.8 2.8 1.2 2.6 4.4 0.4 1.2 2.5 1.7 0.7 1.9 1.7 1.7 4.3 1.5 1.2 1.2 0.6 1.2 1.5 0.0 1,185 820 1,400 304 128 358 432 459 711 316 156 1,471 396 560 1,098 1,191 959 686 798 608 1,085 1,868 1,084 649 284 1,038 1,133 469 954 704 507 2,031 1,078 871 945 916 1,876 627 1,553 840 985 1,132 1,072 1,126 1,347 699 4,463 299 Economic Survey 2018 19.24. Meru and Nyeri counties registered the least food poverty incidence at 15.5 per cent each while Turkana county recorded the highest incidence of 66.1 per cent. Other counties that recorded higher food poverty incidence were; Mandera (61.9%), Samburu (60.1%), Busia (59.5%), West Pokot (57.3%), Marsabit (55.6%) and Tana River (55.4%). 19.25. The results show significant variation in overall poverty incidence at the county level, ranging from a low of 16.7 per cent in Nairobi City to a high of 79.4 per cent in Turkana. Similarly, Mandera (77.6%), Samburu (75.8%), Busia (69.3%) and Garissa (65.5%) counties recorded higher poverty incidence. On the contrary, Nyeri (19.3%), Meru (19.4%), Kirinyaga (20.0%) and Narok (22.6%) counties recorded lower overall poverty incidence. 19.26. The hardcore poverty incidence at the county level ranges from a low of 0.2 per cent in Nyeri to a high of 52.7 per cent in Turkana. Likewise, Samburu (42.2%), Mandera (38.9%), Busia (26.8%), West Pokot (26.3%) and Marsabit (23.8%) counties recorded higher extreme poverty incidence. More than one third (37.5%) of the total population living in conditions of extreme poverty reside in these six counties. Concentration of extreme poor populations are also found in Kajiado, Kitui and Uasin Gishu counties. 19.27. Figure 19.2 shows the mountain of poverty where counties are ranked by their incidence of overall poverty from the lowest to the highest. The lower plains of the mountain start in Nairobi City at 16.7 per cent, through Narok (22.1%) and Murang’a (22.7%) counties. Between the lowest point at Nairobi City County (16.7%) to the peak at Turkana County (79.4%), the mid-point points lies between Bungoma and Kakamega counties. The ascent from the mid-point rises gently to Bomet County (48.8%) while the ascent towards the top is steep. 300 301 0 10 20 30 40 50 60 70 80 90 100 Lower Bound Figure 19.2: Mountain of Individual Overall Poverty Incidence across Counties Headcount Rate (%) Point Estimate Upper Bound Nairobi City Nyeri Meru Kirinyaga Narok Kiambu Machakos Tharaka Nithi Murang'a Mombasa Embu Lamu Nakuru Kericho Taita Taveta Nyamira Homa Bay Siaya Kisumu Trans Nzoia Nyandarua Makueni Bungoma Kakamega Nandi Baringo Kajiado Uasin Gishu Migori Kisii Vihiga Elgeyo Marakwet Laikipia Kilifi Kwale Kitui Bomet Isiolo West Pokot Tana River Wajir Marsabit Garissa Busia Samburu Mandera Turkana Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya Economic Survey 2018 Poverty by SocioEconomic Characteristics of the Head of the Household 19.28. Table 19.4 presents poverty measures cross-tabulated by selected characteristics of the household. The results show that poverty increases with an increase in household size. At the national level, households with between one to three members recorded the least poverty headcount of 14.7 per cent compared to the 54.1 per cent (more than half) for households with seven or more members. This pattern is similar in all the domains of analysis (rural, periurban and urban). Household with children (33.7%) have a higher probability of being poor compared to those without children (13.5%). Table 19.4: Poverty Headcount Rates (%) and Socio-economic Indicators at Household Level, 2015/16 Socio-Economic Indicator Presence of a Child in the Household Household without children....................... Household with children............................. Household Size (Household members) 1-3.................................................................. 4-6.................................................................. 7+................................................................... Age of Household Head (Years) 15-19............................................................. 20-29............................................................. 30-39............................................................. 40-49............................................................. 50-59............................................................. 60-69............................................................. 70+................................................................. Rural Urban Peri-Urban National 18.2 36.8 10.1 29.2 12.0 24.7 13.5 33.7 18.3 34.4 54.6 11.9 30.9 58.2 11.1 23.7 41.9 14.7 32.5 54.1 25.8 20.9 29.8 36.7 34.4 36.6 37.3 32.2 13.4 22.3 22.0 24.7 31.6 40.8 9.3 8.4 18.8 21.1 24.7 32.3 32.9 27.5 15.9 25.8 30.8 31.1 35.4 37.3 19.29. The analysis of poverty by age of the household head reveals that poverty rate increases as the age of the household head increases, except for households headed by persons in 20-29 age-group. Households headed by older persons (70+ years) recorded a higher poverty rate (37.3%) than those headed by younger population (20-29 years), who registered the lowest poverty incidence (15.9%). 19.30. Figure 19.3 shows that households headed by females are likely to be poorer than those headed by males. Nationally, poverty rates were highest in households headed by individuals without any form of formal education (53.6%) and lowest in those headed by individuals with tertiary education (4.6%), as shown in Figure 19.4. The trend is the same for rural, urban and peri-urban areas. 302 Chapter 19: Highlights of 2015/16 Basic Report on Well-Being in Kenya Figure 19.3: Overall Poverty by Sex of Household Head, 2015/16 Figure 19.4: Overall Poverty by Education Level of Household Head, 2015/16 303 Economic Survey 2018 Highlights of the KIHBS 2015/16 Labour Force Basic Report Overview Active Population Total ependency Ratio T Chapter 20 his chapter presents a summary of the labour force basic report which was compiled using data collected in the 2015/16 Kenya Integrated Household Budget Survey (KIHBS). The survey covered the whole country, and was mainly analysed at the national, urban and rural levels. Results presented here are mainly for the economically productive population aged 15-64 years. The activity status of the population was determined with respect to a 7 days’ reference period. 20.2. In the 2015/16 KIHBS, the recorded number of persons aged 15-64 was estimated at 25.0 million. This number had increased from 19.9 million recorded in 2005/06 KIHBS and the 20.5 million enumerated during the 2009 Kenya Population and Housing Census (KPHC). Out of these 25.0 million, 19.3 million were found to be in the labour force (either employed or unemployed) where the total employed were 17.9 million. A person was considered to be employed if during the reference period (7 days preceding the survey) he/she was engaged in an economic activity for at least one hour. 20.3. Analysis of the 2015/16 KIHBS revealed that out of all Kenyans aged five years and above, 55.5 per cent were economically active (employed, unemployed or looking for work). Figure 20.1 presents a distribution of the population aged 5 years and above by age cohorts and activity status. Notably, the active population aged between 5 and 44 shows an increasing trend with the age cohort “40-44” reporting a maximum of 96.2 per cent. The subsequent age cohorts show a declining trend. Figure 20.1: Percentage of Active Population by Age Cohorts Em to P 20.4. The total dependency ratio measures the burden which the productive part of the population shoulders to support the economically dependent. It is a ratio of the “dependents” to the “productives” and is calculated by adding the young population aged (0-14) years to the aged population (65+) years, and then dividing the sum by the working age population (1564) years. An increase in the indicator impacts negatively on financial and social welfare of the 304 mployment Population Ratio Chapter 20: Highlights of the KIHBS 2015/16 Labour Force Basic Report people. However, this indicator has the limitations that some persons classified as “dependent” could be producers while others characterised as “productive” could be economically dependent. As summarized in Table 20.1, total dependency ratio in the country decreased to 81.6 per cent in 2015/16 KIHBS from 86.9 per cent recorded in the 2009 KPHC. This implies that on average, 82 persons aged below 15 years and above 64 years, depended on 100 persons of the working age population (15 - 64 years) in 2015/16 KIHBS. Over the same period, total dependency ratio in the rural areas decreased from 100.4 to 96.7 per cent. In the urban areas, total dependency ratio decreased from 62.7 per cent in 2009 KPHC to 59.7 per cent in 2015/16 KIHBS. Table 20.1: Total Dependency Ratio by Residence and by Region Total Population '000 Age <15 and 65+ 15-64 Total Dependency Ratio Not 2015/16 2009 2015/16 Stated KIHBS KPHC KIHBS2 0-14 65+ Kenya.............. 18,636.5 1,737.7 20,374.2 24,955.5 41.4 45,371.1 86.9 81.6 Rural.................. 12,934.9 1,377.0 14,311.9 14,796.1 18.6 29,126.6 100.4 96.7 Urban................ 5,701.6 360.7 6,062.3 10,159.5 22.8 16,244.6 62.7 59.7 Coast...................... 1,694.4 125.7 1,820.1 2,358.0 17.0 4,195.1 83.9 77.2 North Eastern... 867.3 50.4 917.7 683.4 0.8 1,601.9 116.5 134.3 Eastern.................. 2,343.8 326.1 2,669.9 3,474.4 2.0 6,146.3 87.7 76.8 Central.................. 1,704.3 301.3 2,005.6 3,032.0 8.2 5,045.8 69.8 66.1 Rift valley............. 5,583.3 424.4 6,007.7 6,648.9 4.9 12,661.5 93.5 90.4 Western................ 2,222.3 216.0 2,438.3 2,457.6 - 4,895.9 103.9 99.2 Nyanza.................. 2,818.7 245.2 3,063.9 3,295.0 2.4 6,361.3 98.5 93.0 Nairobi.................. 1,402.4 48.5 1,450.9 3,006.2 6.1 4,463.2 46.1 48.3 1 Region 1 Region is used for comparison purposes with 2009 KPHC results. 2 The Not Stated are excluded from the computation of Total Dependency Ratio. 20.5. This indicator is used to evaluate the ability of the economy to create jobs. A high ratio implies that a large proportion of the population in the working age is employed, which generally has positive effects to the Gross Domestic Product (GDP) per capita. Table 20.2 shows the distribution of the employment to population ratio by age and by residence. The overall employment to population ratio in the country increased to 71.6 per cent in 2015/16 KIHBS, from 69.3 per cent in the 2009 KPHC. The ratio of persons aged 15-24 years who were employed had declined between 2009 KPHC and 2015/16 KIHBS. This indicates higher school retentions and could be attributed to the various reforms undertaken within the education sector that have improved school enrolment and retention, thereby increasing the economically inactive in these age cohorts. On the other hand, the ratio for all other age categories had increased within the same period. The highest increase in the ratio was recorded in the “55-59” age cohort mainly attributable to extension of the retirement age from 55 to 60 years. The employment to population ratio in rural areas increased to 73.2 per cent in 2015/16 KIHBS from 70.7 per cent in 2009 KPHC. Similarly, the ratio in the urban areas increased to 69.4 per cent in 2016 from 66.8 per cent in 2009 KPHC. Overall, employments to population ratios in the rural areas were found to be higher than those in the urban areas across all age cohorts. 305 bour Force rticipation Rate Economic Survey 2018 Table 20.2: Distribution of Working Age Population (15 - 64) by Employment, 2009 KPHC and 2015/16 KIHBS Age Group Population '000 Employed '000 Employment Ratio 2015/16 KIHBS Employment Ratio 2009 KPHC Kenya 15-19 5,015.8 1,384.1 27.6 35.1 20-24 4,069.4 2,321.6 57.1 63.5 25-29 3,666.8 2,997.2 81.7 78.0 30-34 3,062.7 2,741.8 89.5 82.7 35-39 2,503.1 2,305.0 92.1 84.6 40-44 2,006.4 1,878.1 93.6 85.3 45-49 1,475.9 1,388.4 94.1 85.9 50-54 1,241.5 1,160.3 93.5 83.8 55-59 1,094.1 1,002.6 91.6 81.5 60-64 Total 819.7 696.7 85.0 77.9 24,955.5 17,875.7 71.6 69.3 15-19 3,491.3 1,105.9 31.7 38.7 20-24 2,120.2 1,330.3 62.7 67.7 25-29 1,807.1 1,517.7 84.0 80.2 30-34 1,570.5 1,446.2 92.1 83.5 35-39 1,435.5 1,340.2 93.4 84.9 40-44 1,235.9 1,169.6 94.6 85.3 45-49 925.3 876.6 94.7 86.1 50-54 807.4 761.0 94.3 84.5 55-59 782.7 729.0 93.1 83.2 60-64 Total 620.1 549.5 88.6 80.2 14,796.1 10,826.0 73.2 70.7 15-19 1,524.5 278.2 18.2 26.0 20-24 1,949.2 991.3 50.9 57.4 25-29 1,859.7 1,479.5 79.6 75.2 30-34 1,492.2 1,295.5 86.8 81.6 35-39 1,067.6 964.8 90.4 84.1 40-44 770.5 708.4 91.9 85.1 45-49 550.6 511.8 93.0 85.4 50-54 434.1 399.3 92.0 81.9 55-59 311.5 273.5 87.8 76.4 Rural Urban 199.6 60-64 Total 10,159.5 147.2 7,049.6 73.7 69.9 69.4 66.8 20.6. The labour force participation rate is a measure of the proportion of a country’s working age population that engages actively in the labour market either by working or looking for work. It provides an indication of the size of the supply of labour available to engage in the production of goods and services, relative to the population and working age. The labour force participation rate is calculated by expressing the number of persons in the labour force (employed, unemployed or looking for work) as a percentage of the working age population. As shown in Figure 20.2, the overall labour force participation rate was 77.4 per cent. The highest participation rate was in the age cohort “40-44” at 96.2 per cent while the lowest was in the age cohort “15-19” at 32.4 per cent. Analysis by sex shows that male participation rates were higher than those of female. 306 Ed Att Hig C ducational ttainment – ghest Level Completed Chapter 20: Highlights of the KIHBS 2015/16 Labour Force Basic Report Figure 20.2: Labour Force Participation Rates for Population (15-64) by Sex 20.7. The skill level of the workforce is an important aspect of the labour market performance and competitiveness. Information on education attainment is therefore important in determining the employability of the workers. Figure 20.3 presents a comparison between the active and inactive population in terms of the highest level of education reached. The proportions of the active and inactive population for those who had attained primary level of education were almost the same. Of those who had attained university level of education, 26.2 per cent reported to be inactive. Figure 20.3: Activity Status of Population Aged 5+ by the Highest Level of Education Attained 307 Economic Survey 2018 Hours worked 20.8. Data on hours of work are important in distinguishing the various intensities of employment. More so, the information is useful in monitoring the working conditions which impact on the health and wellbeing of workers as well as levels of productivity and labour costs. Most persons aged 15-64 years worked between “40-48” hours in a week as shown in Table 20.3. Those aged 15-19 years reported the highest proportion (30.8 per cent) working for less than 15 hours in the last 7 days mainly due to schooling activities. Table 20.3: Percentage Distribution of Population (15-64) by Hours Worked Working Patterns 25-29 30-34 35-39 40-48 49-58 59-83 84-99 Above 99 Not S tated Total Total (N) ('000') 1,384.1 30.8 2,321.6 8.5 2,997.2 4.1 2,741.8 4.1 2,305.0 3.2 1,878.1 3.1 1,388.4 3.8 1,160.3 3.2 1,002.6 4.7 696.7 7.4 17,875.7 6.6 15-24 Ag e 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 Total Les s than 15 Hours 21.1 12.7 10.1 8.2 9.7 8.4 10.1 10.3 14.0 17.0 11.3 3.7 3.2 2.6 2.4 2.2 2.0 2.5 1.8 3.3 3.4 2.6 7.7 9.0 7.2 6.7 7.8 7.9 7.7 8.7 9.8 11.6 8.0 6.3 7.7 7.0 8.0 8.1 8.3 9.5 8.2 11.8 10.9 8.2 11.7 24.9 29.6 31.5 29.8 30.8 27.8 30.5 28.3 25.1 27.7 5.6 9.1 10.9 11.3 10.8 10.8 11.1 12.7 8.9 9.3 10.2 9.0 17.3 21.2 20.8 20.0 22.2 20.4 17.7 13.2 11.6 18.5 3.2 6.2 5.9 5.7 6.9 5.0 5.7 5.2 4.2 3.1 5.5 0.6 1.1 1.3 1.3 1.3 1.4 1.3 1.6 1.4 0.7 1.2 0.4 0.5 0.3 0.2 0.2 0.1 0.1 0.3 0.5 0.1 0.3 100 100 100 100 100 100 100 100 100 100 100 20.9. As shown in Figure 20.4, the proportion of persons who worked for all hours and for all working days, as defined by the employer, except when on leave or otherwise officially away was 63.2 per cent. The survey also revealed that the proportion of persons engaged in seasonal activities such as coffee picking, planting, tourism was 13.6 per cent. Casual employees i.e. persons whose terms of engagements provide for payment at the end of each day and who are not engaged for a period longer than 90 days accounted for 12.6 per cent. Further, the number of employees who voluntarily worked for fewer hours than normal for the employer was 9.5 per cent. Figure 20.4: Working Patterns of the employed Population (15-64) 20.10. Part time workers are the individuals who are permanent employees and work fewer hours than full time employees. During the survey, a person was considered a part time worker if he/she worked for less than 35 hours in a week. As displayed in Figure 20.5, based on a 308 Tim Em Chapter 20: Highlights of the KIHBS 2015/16 Labour Force Basic Report Part Time Workers me-Related Undermployment cut off of 35 hours per week, females accounted for 61.9 per cent of all part time workers. In absolute terms, across all age cohorts except “15-19”, there were more female part time workers than males. The highest difference in the number of part time workers between the two sexes was in the age category “25-29”. Figure 20.5: Proportion of Part Time Workers Aged (15 – 64) by Sex 20.11. A person was classified as being Time-related Under-employed if one worked less than 28 hours a week, wanted to work additional hours, and was available to work additional hours if given an opportunity for more work. The indicator is used for assessing the extent to which available human resources are being utilised in the production process of a country. As shown in Figure 20.6, 20.4 per cent of the employed persons in the working age population were under-employed. This was a higher rate compared to 15.2 and 18.7 per cent in 2009 KPHC and 2005/06 KIHBS, respectively. Most of the underutilized were aged 15-19 followed by those aged 60-64. Under-employment was higher in the rural areas at 26.6 per cent compared to the urban areas at 11.0 per cent. Figure 20.6: Time related Under-employment Rate by Age Group and by Residence. 309 Unem Rate Underu Labour utilization Economic Survey 2018 20.12. The “strict” definition (never worked for at least one hour, available to pick up a job and actively looking for work during the reference period) was used to compile the number of unemployed. As depicted in Figure 20.7, overall unemployment rate was 7.4 per cent, down from 9.7 per cent in 2009 KPHC and 12.7 per cent recorded in 2005/06 KIHBS. The largest unemployment rate was recorded in the age cohort “20-24” at 19.2 per cent. Underu Figure 20.7: Unemployment Rate - Labour Underutilisation (LU1) Eco P 20.13. Labour underutilisation refers to the mismatch between supply and demand of labour. This gives an indication of the unmet need of employment among the population. Measures of underutilization identify groups among the employed and persons outside the labour force who share similarities with the unemployed. The focus is on issues of insufficient labour absorption. Labour underutilisation has three main components:Time-related Underemployed which focuses on the employed, but with insufficient working time and wanting and available to work more hours; Unemployed which as mentioned earlier focuses on the Not employed, but “currently available supply of labour” and seeking and available to work and; Potential labour force which is the Not employed population, but “potential supply of labour”, seeking, but not available to work and Not seeking, but available and wanting to work. There are four sets of indicators, for under-utilisation which are recommended. One of the measures (LU2) is the combined rate of Time Related Under-Employment and Unemployment. This rate is computed as: 310 Chapter 20: Highlights of the KIHBS 2015/16 Labour Force Basic Report Labour utilization (LU2) 20.14. As shown in Figure 20.8, the total LU2 was 26.4 per cent with the highest rates of underutilization being observed in the age groups 15-29 and 55-64 years. onomically Inactive Population 20.15. The economically inactive population  comprise of all persons who were neither “employed” nor “unemployed” during the “last seven days” reference period. The number of economically inactive population as recorded during the 1999 KPHC was 2.9 million. This was estimated to have increased to 5.3 million during the 2005/06 KIHBS and further reduced to 4.7 million during the 2009 KPHC. In the 2015/16 KIHBS, the inactive population was estimated atn 5.6 million. Figure 20.9 presents the proportion of the incative population by the main reason of inactivity. The main two reasons of inactivity were school attendance and family responsibilities accounting for 73.8 and 13.1 per cent, respectively. Considering the prime age of “25-54”, family responsibility and sickness/ injury were the two main reasons for inactivity. Figure 20.8: Under Utilization - Combined Rate of Time Related Under-Employment and Unemployment (LU2) Figure 20.9: Proportion of Inactive Population (15 – 64) by Main Reason for Inactivity 311 Economic Survey 2018 20.16. Table 20.4 presents a summary of some key indicators of the labour market f 2005/06 KIHBS, 2009 KPHC and 2015/16 KIHBS. Comparison of the labour participatio rate, employment to population ratio and unemployment rate for the various period sho improvement overtime. However, the indicator on time related underemployment f 2015/16 KIHBS reversed the trend which was previously improving. Table 20.4: Key Indicators of the Labour Market Indic ator La bour Forc e P a rtic ipa tion Ra te (pe r c e nt) Employ me nt to P opula tion Ra tio Une mploy me nt Ra te (pe r c e nt) Unde re mploy me nt Ra te (pe r c e nt) La bour Unde r Utilis a tion 312 2005/06 72.6 69.3 12.7 18.7 2009 76.7 69.3 9.7 15.2 2015/1 77. 71. 7. 20. 26. Kenya National Bureau of Statistics Herufi House, Lt. Tumbo Avenue P.O Box 30266-00100 Nairobi Tel. 254-2-3317583/6/8 Fax:254-2-3315977 E-mail:directorgeneral@knbs.or.ke info@knbs.or.ke Website: http://www.knbs.or.ke Follow us at: FB: Kenya National Bureau of Statistics(KNBStats) Twitter: @KNBStats PRICE : KSH 1,500