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
↩
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.