Kenya Cut Flower

Kenya’s Cut-Flower Cluster

Final Paper for

Microeconomics of Competitiveness

May 4, 2007

Kusi Hornberger Nick Ndiritu Lalo Ponce-Brito Melesse Tashu Tijan Watt

Kenya’s Cut Flower Cluster

Table of Contents

1. 2. INTRODUCTION..............................................................................................................................................3 OVERALL ECONOMIC PERFORMANCE ...........................................................................................................3 2.1 GDP GROWTH - HISTORICAL PERSPECTIVE & RECENT TRENDS ...........................................................................3 2.2 INCOME, PRODUCTION, AND FDI.....................................................................................................................4 2.3 KENYA’S ECONOMIC ACTIVITY BY CLUSTER ......................................................................................................7 2.4 INNOVATION AND PRODUCTIVITY .....................................................................................................................7 2.5 BALANCE OF PAYMENTS ..................................................................................................................................9 2.5.1 Current Account..................................................................................................................................9 2.5.2 Regional & Bilateral Trade Partners ...............................................................................................9 2.5.3 Capital Account.................................................................................................................................10 2.6 INEQUALITY, POVERTY, AND HUMAN DEVELOPMENT INDICATORS .....................................................................10 3. ASSESSMENT OF THE NATIONAL BUSINESS ENVIRONMENT........................................................................11 3.1 3.2 4.1 4.2 4.3 4.4 KENYA’S GLOBAL...