The economic growth cooled down in 1997-98, mainly due to crisis in agriculture and tourism. The former was affected by the torrential El Niño rains in 1997 y 1998, which wrecked some of the crops and damaged infrastructures. On the other hand, tourists were scared away by terrorist violence (bombing of the US Embassy in 1998), ethnic riots and the upswing of crime. Due to the government's failure in implementing reform conditions and fighting against corruption in the public sector, the IMF allowed for a lapse in the Enhanced Structural Adjustment Program.

In 1992, 42% of the population was below poverty limits. The external economic aid received by Kenya in 1995 was $642.8 million.

Agriculture in Kenya can be classified in two types, industrial or colonial and indigenous or subsistence farming. The first one represents the heritage of the large colonial plantations, devoted to the culture of coffee, tea, cotton, sugarcane, potatoes, tobacco, wheat, peanuts, sisal and sesame. Coffee and tea, with 53,400 tons and 294,200 tons respectively in 1998, are the main crops produced for export.

Subsistence farming, performed by local owners in small plots, has been traditionally based on crops such as corn, which is a basic local food, manioc, beans, sorghum and fruit. However, the cooperative movement has grown over the past years, together with the adoption of new crops formerly monopolised by large plantations and the increase in productivity due to technical improvement. This originated that, at the end of 1990, two thirds of the coffee crops, 50% of the tea crops and the whole sugarcane production corresponded to small local farmers.

Cattle raising in Kenya is based on bovine and ovine. Same as agriculture, livestock is shared between the large colonial estates and the small local owners. The nomad tribes perform susbsistence cattle raising, reason why their most valuable goods are their cattle. The largest productions of meat, milk and dairy products, leather and wool correspond to the large European estates. A part of this production is assigned to export.

The main industries are food (crop processing and canning), beverages, tobacco, chemicals, petroleum derivatives, metals, textiles, leather, rubber, construction materials (cement, clay, glass), motor car assembly and pharmaceutical products. Other consumer goods are also manufactured, such as plastics, furniture, batteries and soap.

Over the past years the government has promoted the development of Jua Kali, a manufacturing subsector crafting small scale products, which appeared as a consequence of the high unemployment rates. These small workshops craft a great range of products, such as machines and tools, steel frames for doors and windows, crates, coal stoves and furniture.

Energy resources are scarce in Kenya, reason why most of the energy must be imported, mainly petroleum from Saudi Arabia or the United Arab Emirates. In 1997 the imported energy dropped to 56.6% from the previous levels of 75%. Energy comes mainly (1996) from hydroelectric plants (81,63%), coal and petroleum (10,5%). The main hydroelectric plants are located in the Tana river (Kindaruma dam, 1968) and in Turkwel river gorge, in Lake Turkana, within the frame of the Seven Fork Hydro Project. However, hydroelectric energy is still irregular and scarce, hindering industrial production.

Mining is represented by the fluorite beds north of Nairobi, extraction of soda and salt from natural deposits at Lake Magadi, gold mines at Kakamega, and lead and silver mines at Kinangoni. In Kilifi there is a plant for mineral processing. A large part of the 100,000 tons of soda extracted each year is assigned for export. However, as a whole, contribution of mining to Kenya's GDP is minimal.

However, tea with an 18% and coffe with a 15% (1995), are still the primary exports. Total exports account for $2,000 million (1998) and are destined mainly to Uganda (16.1%), Tanzania (12.8%), United Kingdom (10.4%) and Germany (7.5%) (1996).

In spite of this, Kenya's commercial balance is negative, with imports that account for $3,050 million (1998). This figure corresponds mainly to machinery, equipment and transport goods (31%), consumer goods (13%) and petroleum products (12%) (1995). Most of the imports come from the United Kingdom (13.2%), the United Arab Emirates (8.2%), South Africa (7.6%) and Germany (7.4%) (1996).