1 Strong signs of economy recovery

After a period of subdued performance,the country economy has started to show strong signs of recovery with the manufacturing sector recording improved performance over the last years.

In the years 2004 and 2005,the economy registered an impressive growth of 4.9 and 5.8 per cent respectively, while the Gross Domestic Product ( GDP)grew from US$10billion in 2001 to US$14billion in 2005.this is far from 1997 when the economy registered a negative growth.

The manufacturing sector has been an active player in the recovery from a low annual growth of 1.6per cent in 2001,it registered an impressive five percent in 2005 a revision from 4.5 percent recorded in 2004.at the same time, the value of output Rose by 12.8 percent from a revised sh445.1 billion in 2004 to sh502.1 billion in 2005.

These positive changes have been made despite the sector struggle against escalating global oil prices,a strengthening shilling affecting exports,poor infrastructure, high tax level and inflation rate and a stringent regulatory framework.other debilitating factor have been an upserge of cheap imports, corruption and speed money,and above all political uncertainty coupled by rising insecurity among other factors.