Kenya’s Energy-Import Bill Leaves It Among Africa’s Most Exposed to the Gulf Shock

Kenya, East Africa’s financial, logistics and technology hub and a global leader in mobile payments, is among the African economies most exposed to the Middle East energy shock because of its heavy reliance on imported fuel. Higher oil prices strain an already fragile external position even as Nairobi’s diversified services sector and Rift Valley geothermal leadership cushion the blow. The country also faces the looming expiration of the African Growth and Opportunity Act in September, a risk for textile and light-manufacturing exporters. For the diaspora, the mix shapes the outlook for jobs, the shilling and trade.

Source: Capital Economics; African Security Analysis; IMF Regional Economic Outlook.