INTRODUCTION: Kenya is a state in the Great Lakes Region of East Africa; it borders Somalia, Tanzania, Uganda, southern Sudan and Ethiopia to the north. It has a population of 43.18 million people. Kenya's economy is market-based, with few state-owned enterprises, and maintains a liberal trading system. Its GDP stands at $40.70 billion and has a GDP growth of 4.6% in 2012, with an inflation rate of 9.4%. Kenya is considered to have a well-developed social and physical infrastructure. Kenya is classified by the World Bank as a middle-income country capable of servicing its debts. According to World Bank and IMF projections, the economy is expected to grow at 5.8-6% this year. A significant improvement over the 4.6% GDP growth rate recorded in 2012. According to Kenya's economic update, over the next two years; lower interest rates and high investment will support Kenya's economic growth. Growth potential is seen in agriculture and manufacturing, while services and ICT are weakening. Kenya's vision for 2030 is “a long-term national development model to create a globally competitive and prosperous nation with a high quality of life by 2030”. It aims to transform Kenya into a middle-income country, ensuring a high quality of life in a safe and clean environment. This vision is anchored on three pillars; economic development, social development and political governance. ECONOMIC HISTORY: Kenya's economy grew rapidly after independence, through public investment, agricultural production - growing at 4.7% annually - and foreign private industrial investment. Gross domestic product grew at an annual average of 6.6% over a decade (1963-1973). However, there has been a decline in economic performance since 1974, when the country... in the middle of the paper... and births. This is an improvement on the 2003 figure of 77 and 115 deaths per 1000 births, respectively. POLITICAL EFFECTS: The challenges faced by the new decentralized government and the calls for referendums slow down “the pace of democracy, reform and accountability”. Some progress has been made in implementing key policies and processes under the new constitution – such as an independent judiciary; a new Chief Justice, Attorney General and Director of Public Prosecutions. These political reforms have improved Kenya's governance. The World Bank's National Policy and Institutionalism Assessment (CPIA) rates improved from 3.8 in fiscal 2011 to 3.9 in fiscal 2012; this is the highest CPIA rate in Africa. This improvement is credited as progress in the implementation of policies and institutions for growth and poverty reduction.
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