Policies are executed in Kenya and how has the country progressed from the past Is captured In this essay. This paper also builds a link between Kenya and Indian states talking about their saltcellars. CONTENTS: *Geography*Demography*Politico History*Why growth is not established into development? *The Economic drivers and I I Geography: Kenya Is a country on the east coast of Africa. It extends from the Indian Ocean deep Into the Interior of Africa and Is bounded by Sudan and Ethiopia In the north, Uganda in the west, Tanzania in the south and Somalia and Indian Ocean to the west.
Kenya s divided into seven provinces and one national capital (Nairobi). Demography: The 2009 census gave a population of 38610097; density being 66 per square kilometer. Jenny’s population is divided into 13 tribes, the main ones being Kikuyu, Lully, and Lou etc. Seawalls and English are the official languages of this country but people belonging to different tribes have their own languages. Along with Africans there are about 140,000 Indians, 40,000 Europeans and 30,000 Arabs in Kenya. About 14th of the population retains traditional beliefs and the rest are Christians, Muslims (5%)and very few Hindus too.
Kenya believe in “One Supreme being and many spirits”. Way of life: Kenya have a great liking for dance, Music, theatre, mobile motion pictures, soccer and track and field games. Main Expenditure Components of the country: 1 . Polemic Outbreak: – Fecal contamination Is the root cause of cholera In Kenya. The economic implications of cholera outbreak go beyond the immediate health system responses. There are also cost related to productivity loss and premature death diverting expenditure from other essential items and losses in trade and tourism revenue. . Water Pollution: – Water Pollution affects drinking water supply ND Its treatment costs for drinking and other domestic uses will add to the costs was found that in 2004 about 63% of households that declined into poverty in rural areas cited heavy funeral cost. They borrowed Money for funding of funerals at exorbitant monthly interest rates of 30% or more. The calculations for the cost of premature death do not take into account funeral costs, which are borne directly by households and can be considered significant across Africa.
One study in South Africa found that on average households spend equivalent of a year’s total expenditure on food and groceries as much as he spends on funerals. The annual Funeral Costs are estimated at US$ 2. 6 million. 4. Expenditure on Healthcare: – Health expenditure, in Kenya was 4. 49 in 2011. Its highest value over the past 16 years was 4. 68 in 2000 while its lowest value was 4. 12 in 1997. Jenny’s GAP expenditure component is the highest for Healthcare. The total health expenditure is the sum of private and public healthcare expenditures, health services, nutrition activities, family planning activities and emergency aid.
Politico Aspect: – The rise of political parties in Kenya can be best understood in the wider context of the reactions of Jenny’s colonial rule. At first they took traditional forms, then the Kenya protested and protected the trade unions and wage earners. The Young Kikuyu Association addressed a lot of labor issues. As resistance to colonialism grew, Africans moved more and more towards urban spaces. In 1944″Kenya African Union” was formed. In sass’s Kenya freedom struggle intensified with the emergence of the “AMA -AMA Rebellion.
In 1960-61 KANE (Kenya African National Union) emerged as a political power. In 1953 Com Kenya was imprisoned for 7 years. Kenya gained Independence from Britain in 1963 and Com Kenya became the country’s first President. He was succeeded by Daniel Arp Mo’, who remained in power for 24 years. The ruling party KANE, was the sole legal party in sass I. E. De Cure one party state. This period saw increase in repression, Citizens dissent increases and also there was political dictatorship. Also in 1980 a global resurgence of democracy precipitated by collapse of Soviet Union.
The end of Cold war put tremendous Pressure on the Kenya to change and hence the multiparty system emerged in 1990. One of the Main events of Past: – Two main parties in Kenya Split up in 2007- Orange Democratic Movement into Small Orange Democratic Movement and large democratic movement. The Elections that took place in 2007 proved to be the bitterest elections in the multiparty era. When Mama Kabuki was declared as the winner, the opposition rejected the result and the reelection of Kabuki was met with serious violence between the rival ethnic groups leaving 1,300 Kenya killed and 600000 displaces.
This event had an immense impact on Jenny’s development as it hampered the structure of the country and a lot of citizens lost their lives. Why is its growth not transforming into development? : 1) Corruption: – The fact that Corruption remains one of the difficult areas in Jenny’s velveteen is beyond dispute. Kenya has continued to drop in their Corruption (the least corrupt being on the top of the list). Political corruption in the post-colonial government of Kenya has had a history which spans the era of the Com Kenya and Daniel Rap Mom’s KANE governments to Mama Kabuki’s government.
It is estimated the average urban Kenya pays 16 bribes per month. Most of these bribes are fairly small but large ones are also taken – bribes worth over 50,000 Kenya shillings accounting for 41% of the total value. The public procurement sector in Kenya suffers widespread corruption. The use of agents to facilitate business operations and transactions in Kenya is widespread and poses a risk for companies, particularly at the market entry and business start-up stage. Despite positive developments, the Kenya Anti-Corruption Commission (JACK) was disbanded in 2011 and replaced by the newly instated Ethics and Anti-Corruption Commission.
This new agency is also considered to be superficial. The longest-running scandal is the Goldenberg scandal, [4] where the Kenya government subsidized exports of gold, paying exporters in Kenya Shillings (SSH) 35% over their foreign currency earnings. In this case, the gold was smuggled from Congo. The Goldenberg scandal cost Kenya the equivalent of more than 10% of the country’s annual GAP. 2) Poverty in Kenya: – Kenya has relatively advanced agriculture and industrial sectors but still it is a low income country.
About 79% of Kenya population lives in rural areas and relies on agriculture for most of its income. Although in some respects conditions have improved since early 1980 but poverty is still constant. The rural economy depends mainly on small holders subsistence agriculture output. Poverty in Kenya is multi-dimensional and manifests itself in different forms. Many of the Quantitative measures in Kenya are based on poverty lines defined in expenditure (income) terms. The head count ratio of poverty measuring the proportion of people below the poverty line in the total population is the most commonly used index.
The proportion of the population suffering from food poverty seems to have increased in the last 25 years. In 1992-1994, one in every two families in Kenya was experiencing serious food poverty. The number of poor people increased from 3. 7 million in 1972-75 to 1 1. 5 million in 1994. It has increased to 12. Million by 1997 and exceeded 13 million by the end of 1998. Today . Some of the caused of poverty in Kenya are:-l) Slow Economic Growth. 2) Large Family Size. 3)Rapid Population growth. 4) Lack of access to productive assets or ownership of Inadequate assets, lack of productive skills. ) Lack of remunerative Employment. 3) Unemployment: – Unemployment is a big problem in Kenya. Average unemployment is at 23% and is even higher for youth that drops out of school and for women it is 25%. Government services in many cases are no longer available. Growing disparities in access to services have further undercut the conditions. 4) Gender Disparities: – Gender relations in Kenya have been molded by a combination of factors that include customs, culture practices, awareness, education, economic conditions, traditional and modern laws.
The role of Women in Kenya is subordinate to that of men in Kenya. Marriage is an important institution in Kenya and the practice of polygamy is common in many parts of the country. Bride price is considered a compensation for the transfer of a woman from her parents family to the groom’s, implying that the woman is an important asset {in terms of labor) purchased by the groom. The country’s Gender Inequality Index score is 0. 27 (13th a score of 0. 6493. Kenya is ranked 46 out of 86 in the 2012 Social Institutions and Gender Index.
According to the 2010 Human Development Report, produced by the United Nations Development Program, Jenny’s Gender Inequality Index (GIG’) for 2008 was 0. 738. The GIG’ represents the inequality in achievements and opportunities between men and women and illustrates the loss of potential human development in a country. There are five factors contributing to the GIG’ indicator: maternal mortality, adolescent fertility, parliamentary representation, educational attainment (secondary level and above), and labor force involvement. Kenya ranked 17th and was listed as a ‘low human development’ country. United Nations Development Program, 2010; Pig. 156-160) 5)Hal/Lads/Malaria prevalence: – Diseases of poverty directly correlate with a country’s economic performance and wealth distribution: Half of Kenya live below the poverty line near a struggling middle-class and preventable diseases like malaria, HIVE/AIDS, pneumonia, diarrhea and malnutrition are the biggest burden, major child-killers and responsible for much morbidity HI AIDS is one of the most prevalent among young middle aged Kenya- the most productive segment of the population.
This illness leaves Orphans and households headed by women that are even more vulnerable to poverty. The burden of waterborne diseases, malaria and HIVE/AIDS weighs more heavily on both the country’s and the Kenya families affecting their income, food security and development Potential. Life Expectancy was 46 years in 2006 but now is 55 years. Rural Women has no or equal access to social and economic states. Their Course of Livelihood is subsistence farming.
Most Kenya live in areas that have good and high potential for agriculture comprising about 18% of the country’s territory and are located in the centre and west. However Population density in high potential areas is 6 times the country’s average of 55 people per square kilometer and puts an over whelming pressure on resources. Maternal mortality is high, partly because of female genital mutilation. [73] This practice is however on the decline as the country becomes more modernist and the practice was also banned in the country in 2011 . Liar continues to be the biggest killer of children in Kenya, there was a 44 per cent in under-five deaths from malaria in the malaria endemic areas. HIVE/AIDS continues to be a major concern for Kenya. Health statistics indicate that Malaria is a leading cause of outpatient morbidity, accounting for 30 per cent of the total disease burden in Kenya. The National AIDS Control Council estimated that in 2010 there is an estimated 1. 2 million people currently infected with HIVE/AIDS. Of those infected, approximately 85,000 people die of AIDS annually, leaving behind over 2. 4 million orphans. MIFF, 2010). 6) Education: – Another factor hindering economic development is the role the West plays in Jenny’s education system. In past, the West has demanded for African governments to educe the amount spent on education as condition for receiving continued financial support. Before independence, Kenya experienced extremely low participation in primary and secondary levels, with a 29 percent student enrolment rate. By 1995, enrolment ratios increased to 67 percent, indicating an increase of 38 percent in 30 years. In 1995 Kenya had the highest school enrolment ratios in Sub Sahara Africa.
It is critically important that Kenya invests heavily in human development in the upcoming decade, as the majority of Jenny’s population is between the ages of 15 lath and education will be of critical importance. (MIFF, 2010). The two most important contributing factors to human capital are health and education, and in the absence of these two contributing factors poverty is more likely to occur. 7) Other Economic Shocks (Exports/lamppost/Agriculture): – Recently Jenny’s economy has encountered three major shocks; a highly neglected export sector, inconsistent rainfall amounts, and prolonged post-election violence.
These shocks were further emphasized by a global economic downturn, resulting in raised inflation, weakened currency, and slowed economic growth. MIFF, 2010). Kenya has significantly neglected its export sector. In 2000, Jenny’s total exports increased from 22 percent in to 28 percent in 2005, but have stagnated since. The gap between its exports and imports widened. The export growth in 2010 is 27. 5%. Kenya is very connected and dependent upon the European market, which makes Kenya vulnerable to localized economic downturns. The ongoing deprecation of the Euro has made Jenny’s exports to Europe 7 percent more expensive, which highlights the growing need for Kenya to diversify their export market. (World Bank, 2010). Erratic, delayed and shorter rainfall amounts have adversely affected Jenny’s agriculture and power sectors. Recent severe droughts also affected the production of maize; Jenny’s main food staple, and resulted in a domestic food crisis. The scarcity of maize resulted in prices to double, which fueled corruption and eventually lead to the “Maize Scandal” in 2009.
Once Kenya removed maize tariffs in mid-2009, and strong rainfalls took place in early 2010, trade facilitated allowing for the price of maize to decrease as output increased. (World Bank, 2010). The political crisis (specially 2007 elections) has many pullover effects, which weaken exports, reduced tourism rates, and decreased employment as many individuals were displaced. (World Bank, 2010). Development with reference to specific Drivers: – Kenya is the largest economy in Sub Sahara Africa with a population of roughly 39. 8 million. In 2009, Jenny’s gross domestic product (GAP) was 29. Billion with an annual growth rate of 2. 6 percent. Although Kenya is currently in a stage of growth, there are still several factors inhibiting economic development and contributing to the poverty trap. According to the 2009 Human Development Report, 20 percent of the Kenya population lives on less than 1. 25 USED a day, and approximately half of the population lives below poverty. (African Economic Outlook, 2010). Jenny’s main natural resources are wildlife, soda ash, and land with an emphasis on agriculture, as agriculture provides key exports including, coffee, tea, corn, wheat, sugarcane, and rice. Bureau of African Affairs, 2010) Regardless of Jenny’s transformation from a largely agriculture based economy to a service based economy, agriculture still represented 25 percent of GAP in 2009. (Wanly and Were, 2009; Pig. 27-251) Kenya achieved a comparative advantage in chemicals, stone plaster, cement and food between 2003 and 2007. Kenya is known to have very diverse capabilities, which was illustrated when they recently ranked above average with a total of 747 products with a relative comparative advantage. (World sank, 2010) Similar to economies all over the world, Kenya of their political and financial environments.
Between 1964 and 1973, Jenny’s economy endured rapid growth rates of 6. 6 percent, as oil prices began to rise, as well as other commodity prices. Regardless of high GAP growth rates, a decline in rural poverty, and an increase in agriculture productivity, economic inequality continued to remain high in Kenya. Beginning in 1994, a period of liberalizing and economic stagnation occurred, which accounted for the foundation of their economic crisis. Between 1991 and 1993, Jenny’s government was under enormous pressure from the World Bank and the MIFF to comply with the Breton Woods Project.
The Kenya government decided to implement a major program involving key sectors such as, health, education, and agriculture, and consisted of economic liberalizing and market oriented reforms. The goal during this period of economic stagnation was to downsize the public sector, while providing more emphasize on prevarication. By 2003, Kenya had reached recovery and their economic growth rates began to increase. (Little and Green, 2009) However after the heavily disputed presidential elections violence broke out in 2007, Kenya endured many economic hardships including, increase in unemployment and reduction investor confidence. Bureau of African Affairs, 2010) The outcome of the election generated widespread violence and destruction of property resulting in over 1 ,OHO deaths and approximately 300,000 people were exiled. (African Economic Outlook, 2008; Pig. 358) According to the 2008 African Economic Outlook on Kenya, the political crisis could result in poverty for an additional two million Kenya. (Pig. 34) Despite Jenny’s recent crisis, the economy appears to be on track to reverse their poor performance from 2007 to 2008.
Kenya government introduced a strategy called Vision 2030 in 2008 that funded investment growth through increasing credit supply to the private sector, and infrastructure investments to the public sector. This strategy assisted the economy’s recovery and contributed to a GAP growth of 2. Percent in 2008, and is expected to provide a push to accelerate economic growth in subsequent years. (African Economic Outlook, 2008; Pig. 34). Poverty Alleviation Measures: Kenya has come up with many poverty reduction policies since independence, most of which Behave had little success.
The previous pre-sass poverty reduction policies erroneously assumed That the benefits of rapid growth of key sectors such as industry, service and agriculture would automatically trickle down to all sectors of society. So more effort was injected into improving economic performance (export incentive, agricultural food processing, etc. ), at the expenses of promoting societal welfare enhancing projects. For example, some policies like the aurora and informal sector development did not receive the much-needed political will and required resource allocation, to be effective. ) The Social Dimensions of Development (SAD) Programmer(1994)-Despite the government’s Commitment to the SAD programmer, exemplified by allocation of Skis 5. 58 million in eyeteeth/95 budget, the funds were not enough and a significant amount of the money was spent on non-poverty alleviation projects. Therefore the or did not feel its impact and increasing Numbers drifted into poverty. 2) The National Poverty Eradication Plan (NAPE) 1999-201 5. -The aim of NAPE is to provide a approach was particularly useful in poverty analysis. 3) The Mid-Term Expenditure Framework (METE). One of its objectives is to formulate the budget in thee context of a more consultative process involving all stakeholders. METE is carved out of thee Nape’s 1 5 years program. 4) Poverty Reduction Strategy Paper (PROS) PROS has been termed the hitherto most comprehensive and most focused policy 0 document in the fight against poverty since independence. The paper aims at facilitating sustainable and Draped economic growth; improve governance and security; increase the ability of the Porto raise their incomes; and improve the quality of life of all citizens especially the poor. ) THE MILLENNIUM DEVELOPMENT GOALS, (Megs), 2000-201 5-non September 2000, 191 member countries of the United Nations adopted the Meds Declaration, which outlined actions that were perceived as necessary for attainment of security, peace and development. This endeavor also mainstreamed some mutually reinforcing and Interconnected goals into some global agenda. Subsequently, an agreement between the UN,roll Bank, the International Monetary Fund and ACIDIC was reached on the primary Elements of a framework for a global agenda designed around goals, targets and indicators (UNDO, 2003).
This is what was collectively described as Millennium Development Goals(Megs) and sets global targets for 2015. These include:o; Halving extreme poverty and hunger (1990-2015);0; Achieving universal primary education (by 201 Promoting gender equality (by 201 Reducing under-five mortality by two-thirds Reducing maternal mortality by three quarters (1990;201 b;reversing he trend of HIVE/AIDS, malaria and DB (by 201 Ensuring environmental sustainability (by 2015). Though these alleviation programmed have been started Jenny’s Poverty is still prevailing there and significant number of people are still below poverty line.
Other Economic Shocks (Exports/lamppost/Agriculture): – tea, horticultural products, coffee, petroleum products, fish, cement(exports), machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics(imports) Recently Jenny’s economy has encountered three major shocks; a highly neglected export sector, inconsistent rainfall amounts, and prolonged post-election violence. These shocks were further emphasized by a global economic downturn, resulting in raised inflation, weakened currency, and slowed economic growth. (MIFF, 2010). Kenya has significantly neglected its export sector.
In 2000, Jenny’s total exports increased from 22 percent in to 28 percent in 2005, but have stagnated since. The gap between its exports and imports widened. The export growth in 2010 is 27. 5%. Kenya is very connected and dependent upon the European market, which makes Kenya vulnerable to localized economic downturns. The ongoing deprecation of the Euro has made Jenny’s exports to Europe 7 percent more expensive, which highlights the growing need for Kenya to diversify their export market. (World Bank, 2010). Erratic, delayed and shorter rainfall amounts have adversely affected Jenny’s agriculture and power sectors.
Recent severe droughts also affected the production of maize; Jenny’s main food staple, and resulted in a domestic food crisis. The scarcity of maize resulted in prices to double, which fueled corruption and eventually lead to the rainfalls took place in early 2010, trade facilitated allowing for the price of maize to crease as output increased. (World Bank, 2010). The political crisis (specially 2007 elections) has many spillover effects, which weaken exports, reduced tourism rates, and decreased employment as many individuals were displaced. (World Bank, 2010).
To meet its cash-flow debt obligation, Kenya has to borrow loans from MIFF and World Bank. If Kenya was to balance its external position, I. E. Matching imports with exports, while maintaining current levels of consumption and investments, it’s overall growth would already be at 8 percent. All these factors culminate into a climbing unemployment rate and a plummeting Standard OF Living. Disproportionate development across the political, economic and social spectrum is a factor limiting Kenya from development. Foreign Investment: Kenya has been the beneficiary of political stability and economic prosperity.
On a global scale, Kenya has not managed to capitalize on possible opportunities for growth and development. The development experiences of Kenya-its achievements and hindrances have been the product of lingering colonial policies, domestic growth initiatives and international investments. Its growth structure is considered to be None-Colonial. Len 1964 the parliament authorized the foreign Investment act. By 1977 its provisions were no longer tenable. As one of the most developed countries in the sub-Sahara Africa, Foreign Investments are more concerned with revenue growth through imports.
The government created programs to extend credit to citizens via initiatives like agriculture finance corporation, Kenya National Trading corporation etc. Savings : The economic literature finds that domestic savings are crucial a component for high and sustainable growth in open developing economies. Economic developments of the past few decades confirm the theoretical findings. The Growth Report (2009), which analyzes the factors behind the 13 most successful economies in the post-World War II period, illustrates the importance of high investment for achieving rapid growth.
Jenny’s savings rate has not followed the same trend as the rest of AS. The savings rate has been lingering around 13-14 percent of GAP over the last five years, and is much lower than the average for low income countries. Kenya Engagement with Neo-liberalism: In Kenya, the inalienable policy reforms of the sass and sass have caused an unintended decrease in food security. These reforms were meant to spark economic growth through the reduction of government intros on the economy, making a broad shift towards a much increased private sector role in most economic activities.
Kenya still experiences significant food insecurity on the national and household levels, with over half of the nation deemed chronically food insecure and 24% of the nation sitting under the critical food poverty line (KNOBS 2008); this percentage appears to have increased since the implementation of Structural Adjustment Programs (SAPS) and related trade liberalizing policies. The banking sector is improving slowly, though services remain too expensive and fall short of international standards.
Banks are no longer plundered by business people who enjoyed political protection, refused to pay back their loans and caused losses leading to the bankruptcy of banks. The Central However, the bank seems to implement effective control mechanisms and to follow reasonable fiscal policies. Tourism and Agriculture: However, tourism in Kenya has been the leading source of foreign exchange since 1997, when it overtook coffee, and the trend continued, with the exception on 1997-1998 after agriculture. Jenny’s services sector, which contributes about 63 percent of GAP, is dominated by tourism.
The tourism sector has exhibited steady growth in most years since independence and by the late sass had become the country’s principal source of foreign exchange. Agriculture, Industry and Manufacturing, & Services GAP Growth: Agriculture’ is one of Jenny’s three economic sectors. In 1980, agriculture accounted for 33% of Jenny’s overall GAP. [II] In 1990, the value agriculture added to GAP was 30 percent, in 2000, it increased to 32 percent, and in 2011, and the value agriculture added to overall GAP fell to 23 percent. [10] ‘Industry and Manufacturing’ is also another component of Jenny’s overall GAP.
In the last 31 years, it has been greatly fluctuating. In 1980, industry and manufacturing accounted for 21 percent of Jenny’s overall GAP. [II] In 1990, it decreased to 19 percent, and in 2000, the value added to GAP decreased again to 17 percent. [10] In 2011, there was a slight rise to 19 percent of Jenny’s overall GAP. [II] The last sector in Jenny’s economy is ‘Services’. The World Bank defines Services as jobs that are included in “wholesale and retail trade, transport, government, financial, professional, and personal services. “[10] In 1980, services accounted for 47 percent of Jenny’s overall GAP.
II] In 1990, it accounted for 51 percent, in 2000 it stayed constant at 51 percent, and in 2011, the services sector accounted for 58 percent of Jenny’s overall GAP. In 2006 almost 75 percent of working Kenya made their living on the land, compared with 80 percent in 1980. [9] About one-half of total agricultural output is non-marketed subsistence production. Agriculture is the second largest contributor to Jenny’s gross domestic product (GAP), after the service sector Social Security : The social security system in Kenya is not a product of a broad-based, participatory, all-inclusive and human rights-centered policy processes. The social security system under Kenya laws is ’employment-centered’. Almost all the benefits that are derivable from the various social security schemes- healthcare, unemployment, sickness etc. Benefits- can only be accessed by persons or defendants of persons who were or are in employment. ; The system of social security in Kenya privileges employees and employers who can make periodic contributions to the social security schemes. In the process, it discriminates against certain categories of employees such as casual workers and others in the ‘informal sector’ where the majority of Kenya work. The social security protection envisaged under Kenya laws does not recognize or make any provision for vulnerable groups such as refugees, asylum seekers, internally displaced persons etc. ; The National Social Security Fund and the National Hospital Insurance Fund, which are the two statutory flagship national social security schemes that ought to be based operational problems. East and Central Africans biggest economy has posted tremendous growth in the service sector, boosted by rapid expansion in telecommunication and financial activity over the last decade, and now contributes 62 percent of GAP.
Unfortunately, a massive 22 percent of GAP still comes from the unreliable agricultural sector which employs 75 percent of the labor force (a consistent characteristic of under- developed economies that have not attained food security – an important catalyst of economic growth) and a significant portion of the population regularly starves and is heavily dependent on food aid. Industry and manufacturing is the smallest sector that accounts for 16 percent of the GAP. Kenya has traditionally been a liberal market with minimal government involvement (price control) seen in the oil industry.
However, recent legislation allows the government to determine and gazette price- controls on essential commodities like maize flour, kerosene and cooking oil. Prevarication of state corporations like the defunct Kenya Post and Telecommunications Company, which resulted in East Africans most profitable company – Safari, has led to their revival because of massive private investment. Apportionment of Jenny’s product exports As of May 2011, economic prospects are positive with 4-5% GAP growth expected, largely because of expansions in tourism, telecommunications, transport, construction and a recovery in agriculture.
The World Bank estimated growth of 4. 3% 2012. 174] Kenya, Trends in the Human Development Index 1970-2010 In March 1996, the presidents of Kenya, Tanzania, and Uganda re-established the East African Community (EACH). The Sac’s objectives include harmonistic tariffs and customs regimes, free movement of people, and improving regional infrastructures. In March 2004, the three East African countries signed a Customs Union Agreement. The more efficient and lucrative technology-knowledge-and-skill-based service; industry and manufacturing sectors only employ 25 percent of the labor force but nutrients the remaining 75 percent of the GAP.
Mambas is a major trade centre and home to Jenny’s only large seaport, the Kilning Harbor. Mamba’s bordering the Indian Ocean made it a historical trading centre,[3] and it has been controlled by many countries because of its strategic location. Over the last 10 years the Kenya Government has embarked on structural and macroeconomic reforms including in trade, to establish a more growth-conducive economic environment. The transition from import-substitution to outward-oriented policies has made some progress.
Macroeconomic stabilization appears to be taking hold. However, a rising trade deficit and lagging structural reforms depress investor confidence in the country. Jenny’s trade policy objectives include moving towards a more open trade regime, strengthening and increasing overseas market access for Kenya products, especially processed goods and further integration into the world economy. These policy objectives have been pursued through unilateral liberation’s and regional and bilateral trade negotiations, in particular within the African region, as well as through
