Although Kenya is the biggest and most advanced economy in east and central Africa, and has an affluent urban minority, it has a Human Development Index (HDI) of 0.519, ranked 145 out of 186 in the world. As of 2005, 17.7% of Kenyans lived on less than $1.25 a day. In 2017, Kenya ranked 92nd in the World Bank ease of doing business rating from 113rd in 2016 (of 190 countries). The important agricultural sector is one of the least developed and largely inefficient, employing 75% of the workforce compared to less than 3% in the food secure developed countries. Kenya is usually classified as a frontier market or occasionally an emerging market, but it is not one of the least developed countries.
The economy has seen much expansion, seen by strong performance in tourism, higher education and telecommunications, and acceptable post-drought results in agriculture, especially the vital tea sector. Kenya’s economy grew by more than 7% in 2007, and its foreign debt was greatly reduced. But this changed immediately after the disputed presidential election of December 2007, following the chaos which engulfed the country.
Kenya is East and Central Africa’s hub for financial services. The Nairobi Securities Exchange (NSE) is ranked 4th in Africa in terms of market capitalisation. The Kenyan banking system is supervised by the Central Bank of Kenya (CBK). As of late July 2004, the system consisted of 43 commercial banks (down from 48 in 2001), several non-bank financial institutions, including mortgage companies, four savings and loan associations, and several core foreign-exchange bureaus.