<table cellspacing="0" cellpadding="0" border="0" ><tr><td valign="top" style="font: inherit;"><DIV><BR>
<TABLE class=yiv1306856152Table100per cellSpacing=0 cellPadding=0>
<TBODY>
<TR>
<TD colSpan=3>
<DIV id=yiv1306856152content>
<TABLE border=0 cellSpacing=0 cellPadding=0>
<TBODY>
<TR>
<TD id=yiv1306856152first_column bgColor=#f7f7f7 vAlign=top>
<DIV class=yiv1306856152title>KEY FINDINGS</DIV>
<DIV class=yiv1306856152links>
<UL>
<LI><STRONG>Kenya may now be at a tipping point for robust growth.</STRONG> Five factors are creating a positive momentum: the new constitution, EAC integration, ICT innovations, strong macroeconomic management, and recent investments in infrastructure. </LI>
<LI><STRONG>For 2010, the World Bank is revising its growth forecast upwards to 4.9 percent.</STRONG> For the first time in 3 years Kenya will experience balanced growth across all sectors and quarters of the year. </LI>
<LI><STRONG>For 2011, we project GDP growth at 5.3 percent, and even 6.0 percent if no shocks occur.</STRONG> Public sector investments in infrastructure will stimulate growth. Timely implementation of constitutional reforms would also bolster business confidence. </LI>
<LI><STRONG>Kenya has experienced a telecommunications revolution in the last decade.</STRONG> Without the robust growth in ICT, growth in GDP per capita would have stagnated.</LI>
<LI><STRONG>The explosive growth in ICT happened because the government liberalized the telecoms sector, allowing competition.</STRONG> This is a very useful lesson for other sectors. </LI>
<LI><STRONG>Mobile money</STRONG><STRONG>has become a game-changer for the economy.</STRONG><STRONG> </STRONG>For example, nearly 70 percent of all adult Kenyans have access to financial services, compared to less than 5 percent in 2006. Fifteen million Kenyans are expected to transfer US$7 billion (20 percent of GDP) via mobile money in 2010. </LI>
<LI><STRONG>One of the reasons mobile money is so successful is that regulation followed innovation.</STRONG> An optimal regulatory regime should have rules tight enough to protect users and to discourage fraud, but loose and open enough to encourage innovation and the development of new services. </LI>
<LI><STRONG>Kenya could become a global hub for IT innovations and IT-enabled services.</STRONG><STRONG> </STRONG>Recent innovations―in crisis monitoring, in healthcare services, in public awareness campaigns, in commodity prices, in mobile money, etc.―and investments in fiber-optic cables, the proposed ICT city, and a well-educated and urbanized labor force provide the basis for developing Kenya into a global ICT hub. <BR></LI></UL></DIV></TD>
<TD id=yiv1306856152second_column vAlign=top align=left>
<DIV class=yiv1306856152title>Data</DIV>
<DIV class=yiv1306856152image align=center><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_Figures.pdf" rel=nofollow target=_blank><IMG border=0 alt="Download graphs and charts from the report." src="http://siteresources.worldbank.org/INTAFRICA/Images/graph-AFR_Climate_Change_20101130.gif" width=156 height=110></A></DIV>
<DIV class=yiv1306856152links>
<UL>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_Figures.pdf" rel=nofollow target=_blank>Download graphs and charts from the report.</A></LI></UL></DIV>
<DIV class=yiv1306856152title>Download</DIV>
<DIV class=yiv1306856152links>
<UL>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_with_cover_e-version.pdf" rel=nofollow target=_blank>Full Report</A></LI>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_Executive_Summary.pdf" rel=nofollow target=_blank>Executive Summary</A></LI>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_Key_Findings.pdf" rel=nofollow target=_blank>Key Findings</A></LI>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_Annexes.pdf" rel=nofollow target=_blank>Annexes</A></LI>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_ICT_Mobile.pdf" rel=nofollow target=_blank>The ICT Revolution and Mobile Money</A></LI>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/KEU-Dec_2010_SKE.pdf" rel=nofollow target=_blank>State of the Kenya's Economy</A></LI></UL></DIV>
<DIV class=yiv1306856152title>RESOURCES</DIV>
<DIV class=yiv1306856152links>
<UL>
<LI><A href="http://siteresources.worldbank.org/INTAFRICA/Resources/KEU-Dec_2010_Powerpoint.pdf" rel=nofollow target=_blank>KEU Powerpoint Presentation</A></LI>
<LI><A href="http://siteresources.worldbank.org/KENYAEXTN/Resources/Kenya-Economic-Update-June-2010.pdf" rel=nofollow target=_blank>KEU: June 2010</A></LI>
<LI><A href="http://siteresources.worldbank.org/INTKENYA/Resources/Kenya_Economic_Update_Dec_2009-full.pdf" rel=nofollow target=_blank>KEU: December 2009</A></LI></UL></DIV>
<DIV class=yiv1306856152title>Discuss this report</DIV>
<DIV id=yiv1306856152mediabar class=yiv1306856152small><A href="http://www.facebook.com/pages/World-Bank-Africa/115241755163096?ref=ts" rel=nofollow target=_blank><IMG style="MARGIN-RIGHT: 20px" alt=Facebook src="http://siteresources.worldbank.org/AFRICAEXT/Images/facebook.jpg" width=30 height=30></A><A href="http://twitter.com/WorldBankAfrica" rel=nofollow target=_blank><IMG style="MARGIN-RIGHT: 20px" alt=Twitter src="http://siteresources.worldbank.org/AFRICAEXT/Images/twitter.jpg" width=30 height=30></A><A href="http://www.flickr.com/photos/worldbank/sets/72157601463732327/" rel=nofollow target=_blank><IMG alt=Flickr src="http://siteresources.worldbank.org/KENYAEXTN/Images/feature-flickr-icon.jpg" width=30 height=30></A><BR><A href="http://www.youtube.com/view_play_list?p=59FB6C9C9D741D01" rel=nofollow target=_blank><IMG style="MARGIN-RIGHT: 20px" alt=Youtube src="http://siteresources.worldbank.org/KENYAEXTN/Images/feature-youtube-icon.jpg" width=30
height=30></A><A href="http://blogs.worldbank.org/africacan/" rel=nofollow target=_blank><IMG style="MARGIN-RIGHT: 20px" alt="Africa Can" src="http://siteresources.worldbank.org/INTAFRICA/Images/icon-blog.gif" width=30 height=30></A><A href="http://www.livestream.com/worldbankafrica" rel=nofollow target=_blank><IMG alt=Livestream src="http://siteresources.worldbank.org/INTAFRICA/Images/icon-Livestream.gif" width=30 height=30></A></DIV></TD>
<TD id=yiv1306856152third_column vAlign=top align=left>
<DIV class=yiv1306856152title>contacts</DIV>
<DIV id=yiv1306856152contacts>
<H4 class=yiv1306856152small>Wolfgang Fengler</H4>
<DIV class=yiv1306856152title>Lead Economist</DIV>
<DIV class=yiv1306856152contact_info>Tel.: (254-20) 322-6408<BR>E-mail: <A href="http://us.mc1206.mail.yahoo.com/mc/compose?to=wfengler@worldbank.org" rel=nofollow target=_blank ymailto="mailto:wfengler@worldbank.org">wfengler@wb.org</A></DIV></DIV>
<DIV id=yiv1306856152contacts>
<H4 class=yiv1306856152small>Peter Warutere</H4>
<DIV class=yiv1306856152title>Communications Officer</DIV>
<DIV class=yiv1306856152contact_info>Tel.: (254-20) 322-6444<BR>E-mail: <A href="http://us.mc1206.mail.yahoo.com/mc/compose?to=pwarutere@worldbank.org" rel=nofollow target=_blank ymailto="mailto:pwarutere@worldbank.org">pwarutere@wb.org</A></DIV></DIV>
<DIV class=yiv1306856152title>multimedia</DIV>
<DIV id=yiv1306856152contacts>
<H4 class=yiv1306856152small><A style="COLOR: rgb(51,51,51)" href="http://www.youtube.com/watch?v=JY36-UaHCrg" rel=nofollow target=_blank>Kenya: At a Tipping Point for Robust Growth</A></H4>
<DIV class=yiv1306856152title>Kenya has recovered from the triple food, fuel, and financial crises and is experiencing significant growth fuelled by a new constitution, the telecommunications boom, macroeconomic management and regional integration among other factors. </DIV></DIV>
<DIV id=yiv1306856152contacts>
<H4 class=yiv1306856152small><A style="COLOR: rgb(51,51,51)" href="http://www.youtube.com/watch?v=TUUtNfdjeM0&feature=player_embedded" rel=nofollow target=_blank>Kenya's Economy Expected to Grow Between 5.3-6 percent</A></H4>
<DIV class=yiv1306856152title>CNBC Interview with World Bank Lead Economist for Kenya Wolfgang Fengler </DIV></DIV>
<DIV class=yiv1306856152title>More Multimedia</DIV>
<DIV id=yiv1306856152mediabar class=yiv1306856152small><A href="http://www.youtube.com/view_play_list?p=59FB6C9C9D741D01" rel=nofollow target=_blank><IMG alt=Youtube src="http://siteresources.worldbank.org/KENYAEXTN/Images/feature-youtube-icon.jpg" width=30 height=30></A><A href="http://vimeo.com/worldbankvideo" rel=nofollow target=_blank><IMG alt=Vimeo src="http://siteresources.worldbank.org/INTAFRICA/Images/icon-Vimeo.gif" width=30 height=30></A><A href="http://www.flickr.com/photos/worldbank/sets/72157601463732327/" rel=nofollow target=_blank><IMG alt=Flickr src="http://siteresources.worldbank.org/KENYAEXTN/Images/feature-flickr-icon.jpg" width=30 height=30></A><A href="http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20040639~menuPK:34494~pagePK:116743~piPK:36693~theSitePK:4607,00.html" rel=nofollow target=_blank><IMG alt="Digital Media Center" src="http://siteresources.worldbank.org/INTAFRICA/Images/icon-Digital_Media_Center.gif" width=30
height=30></A><A href="http://www.livestream.com/worldbankafrica" rel=nofollow target=_blank><IMG alt=Livestream src="http://siteresources.worldbank.org/INTAFRICA/Images/icon-Livestream.gif" width=30 height=30></A></DIV></TD></TR></TBODY></TABLE></DIV></TD></TR>
<TR>
<TD><BR></TD></TR></TBODY></TABLE></DIV>
<DIV id=yiv1306856152>
<DIV style="FONT-FAMILY: arial, helvetica, sans-serif; FONT-SIZE: 12pt"> </DIV></DIV></td></tr></table>