The economy of Kenya is market-based with a few state enterprises. Kenya has an emerging market and is an averagely industrialised nation ahead of its East African peers. Currently a lower middle income nation, Kenya plans to be a newly industrialised nation by 2030. The major industries driving the Kenyan economy include financial services, agriculture, real estate, manufacturing, logistics, tourism, retail and energy. As of 2020, Kenya had the third largest economy in Sub-Saharan Africa, behind Nigeria and South Africa. Regionally, Kenya has had a stronger and more stable economy compared to its neighbouring countries within East Africa. By 2023, the country had become Africa's largest start-up hub by both funds invested and number of projects.
The government of Kenya is generally investment-friendly and has enacted several regulatory reforms to simplify foreign and local investment, including the creation of an export processing zone. An increasingly significant portion of Kenya's foreign financial inflows are remittances by Kenyans in the Diaspora, who work in the United States, the Middle East, Europe and Asia. According to data by the Central Bank of Kenya, remittances from Kenyans living abroad make up over 3.4 percent of the Gross Domestic Product (GDP).
As of September 2018, economic prospects were positive, with above 6% gross domestic product (GDP) growth expected. This growth was attributed largely to expansions in the telecommunications, transport, and construction sectors; a recovery in agriculture; and the rise of small businesses helping to pull the economy. These improvements are supported by a large pool of highly educated professional workers. There is a high level of IT literacy and innovation, especially among young Kenyans.
In 2020, Kenya ranked 56th in the World Bank ease of doing business rating, up from 61st in 2019 (of 190 countries). Compared to its neighbours, Kenya has a well-developed social and physical infrastructure.
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