Chapter 1 Introduction

Kenya aspires to become “a globally competitive and prosperous nation with a high quality of life by 2030” (First Medium Term Plan, 2008-2012). To achieve this ambitious vision, the country must modernize its infrastructure, boost manufacturing and exports, and mainstream good governance practices to ensure all citizens benefit from Kenya’s growing prosperity.[1]

Strategic partnerships with allies like the United States (U.S.) are an important asset in Kenya’s bid to realize its Vision 2030 plan. For over 50 years[2], the U.S. government has invested in Kenya’s people and institutions, working hand-in-hand with public, civil society, and private sector actors. However, U.S. contributions to Kenya’s development go beyond government assistance alone. U.S. companies, universities, charities, non-governmental organizations (NGOs), and individuals have increasingly engaged with their counterparts in Kenya over the last several decades.

Despite this long-standing relationship, Kenyan leaders and the public do not have information readily available to assess the value of their country’s partnership with the United States.[3] Although it is difficult to capture the universe of benefits to Kenya from its relationship with the United States, this report provides a conservative estimate of U.S. contributions to Kenya’s growth and prosperity, including those from government and non-governmental actors. At a minimum, we estimate this total contribution to be approximately USD 3.05 billion annually, on average (see Table 1).

In chapter two, we examine approximately USD 1 billion per year on average in direct contributions from the U.S. government to support Kenya’s Vision 2030 plan. We also capture an additional estimated USD 678 million on average per year that the U.S. government has indirectly mobilized through domestic policies and institutions that benefit Kenya.

In chapter three, we quantify an estimated USD 1.36 billion per year in average contributions from U.S. individuals, organizations, and companies to Kenya’s prosperity. These contributions take various forms, from the actions of individuals (e.g., tourism, remittances, individual donations) to more institutionalized efforts (e.g., grants from U.S.-based philanthropies, activities of U.S.-based NGOs, foreign direct investment).

In chapter four, we analyze the results of AidData’s 2020 survey of Kenyan public, private, and civil society leaders to understand how they assess their country’s partnership with the United States, as well as examine potential downstream economic, social, and governance benefits of U.S. engagement in Kenya. We conclude in chapter five by recapping the major takeaways from this research.

Table 1. Breakdown of estimated annual U.S. contributions to Kenya’s growth and prosperity, millions USD and KSH

Category USD KSH
Bilateral assistance USD 931.0 Ksh 94,721.3
Multilateral assistance USD 73.5 Ksh 7,473.3
Direct U.S. contributions USD 1,004.5 Ksh 102,194.6
Trade USD 576.2 Ksh 58,622.6
Investment guarantees USD 82.4 Ksh 8,387.1
Scholarships USD 19.6 Ksh 1,994.1
Benefits of U.S. policies USD 678.2 Ksh 69,003.8
Total U.S. government contributions USD 1,682.7 Ksh 171,198.4
Remittances USD 517.6 Ksh 52,660.2
Foreign direct investment USD 294.2 Ksh 29,931.7
U.S.-based NGO operations USD 270.0 Ksh 27,469.8
Tourism USD 190.7 Ksh 19,406.7
Philanthropic contributions USD 87.3 Ksh 8,882.0
Microloans USD 4.2 Ksh 427.3
Individual donations USD 0.4 Ksh 39.0
Total U.S. society contributions USD 1,364.4 Ksh 138,816.7
Total U.S. contributions USD 3,047.1 Ksh 310,015.1

Notes: This table shows average annual U.S.-based contributions to Kenya’s growth and prosperity in constant 2019 USD by category. We generated the estimated annual contribution for each type of assistance by taking an average for all years of data available between 2014 and 2018, with some exceptions. The number of years used to construct the average varied depending on the years available in the source data. A conversion factor of 1USD = 101.74 KSH was used.

Source: AidData estimates. See the Technical Annex that accompanies this report for further details.