::: ECONOMY   text 1 | text 2 (test only) In 1986, Kenya embarked on a long term policy framework in collaboration with the donor community to uplift Kenya into the path of economic recovery. Under this policy framework a great deal of economic reforms have been undertaken. GDP: The Gross Domestic Product (GDP) in real terms increased by 4.9 per cent in 1995, compared to 3.0 per cent in 1994. Adjustment efforts fostering macro-economic stability, currency stability and improved investment climate, together with the liberalization of the economy all helped the GDP. Specific macro-economic liberalisation undertaken by Government included price decontrol, the removal of import licensing and decontrol of exchange control mechanisms, freeing the movement of maize and other cereals and the liberalization of the petroleum sector. Real GDP growth is expected to be 5.5 per cent in 1996. Inflation: The annual rate of inflation declined significantly from 46.0 per cent in 1993 to 28.8 per cent in 1994 and to 1.6 per cent in 1995, a decline of 44.4 per cent points since 1993. The easing of inflation pressures can be ascribed to a number of factors, among them, the appreciation of the Kenya Shilling against major currencies, favourable weather conditions and lowering of the Value Added Tax (VAT) from 18 to 15 per cent. Investment: Both local and foreign entrepreneurs are free to invest in any sector of the economy. Foreign investors are most welcome to take part in Kenya's privatisation programme affecting 150 public enterprises. These include large organisations in the transport, agricultural, tourism and manufacturing sectors. The Government has also decided that fifty per cent of the country's future thermal and geothermal electricity generation will be undertaken through private investment. Export Promotion Programmes: The Government has in place three principal export incentive schemes : Duty/VAT remission, Export Processing Zones (EPZ), and Manufacturing Under Bond. The most potential market for Kenya's industrial exports is the neighbouring countries. An important development in this area is the transformation of the Preferential Trade Area (PTA) into the Common Market for Eastern and Southern Africa (COMESA) with a population of approximately 300 million. Of particular importance is the launch on March 14, 1996 of the East African Co-operation in Arusha, Tanzania. The regional group will especially enhance economic co-operation between the states of the former East African Community comprising Kenya, Uganda and Tanzania. The former East African Community broke-up in 1977. The Investment Promotion Centre (IPC) was created by the Government under an Act of Parliament to serve as the primary contact point for companies and entrepreneurs, both local and foreign, wishing to explore investment opportunities in Kenya. The contact address is as follows :- The Investment Promotion Centre National Bank Building, 8th Floor Harambee Avenue P. O. Box 55704 NAIROBI Kenya Tel : 254-2-221401/4 Fax : 254-2-336663