Professor Horowitz Carolyne Musyoka 10/4/2016 Country Report(Kenya) Politics of Africa Part 1

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Professor Horowitz
Carolyne Musyoka
10/4/2016
Country Report(Kenya)
Politics of Africa
Part 1

Kenya is a former British colony in the East Africa that gained its independence in 1963.Jomo Kenyatta became the first president of Kenya competitive multiparty elections. Kenyatta implemented policies that led to economic growth as well as allowing the white settlers retain their land ownership rights which was opposed by the country's' socialist such as Jaramogi Oginga .Kenyatta's regime was characterized by tribalism (Kikuyu property ownership).Upon his demise in 1978,Daniel Moi took over .The Moi regime was characterized by great economic crisis caused by dictatorship ,corruption ,clientelism ,Africanisation,fluctuation of the agricultural products in the global market and Kenya becoming a de facto.
Mwai Kibaki succeeded Moi in 2003.The Kibaki regime was characterized by economic growth and the revival of the foreign investment.Improvement of infrastructure and education through provision of free education in all public primary schools. Kibaki's leadership at some point was criticized for ethnic favoritism for his Kikuyu community.








Kenya's GDP /Capital since Independence



The GDP per capital in Kenya has been growing since independence with some stagnation in 1980s then an increase in the GDP/Capita.




















Annual Growth Rate of Kenya since Independence







The annual growth rate in Kenya since independence has been growing steadily with a great decline in 1970 which was followed by a fluctuating growth rate between 1990s.
















Economic Trajectory of Kenya compared to South Africa, Nigeria, Tanzania, Ghana

The economic growth of Kenya since independence has been growing steadily higher than Ghana and Tanzania. However, compared to South Africa and Nigeria, the economic trajectory of Kenya is faced by a slower Growth rate compared to the two countries.

Kenya's Products since independence


The main products produced in Kenya have been increasing steadily since independence


Kenyas' exports since independence


There has been an increasing trend on the goods exported since independence thus economic growth in Kenya .


Kenya's import since independence

The imports have been increasing since independence with some dramatic declines between 1970s and 1990s followed by gradual increase in the imports.

Changes in the Child mortality in Kenya
Infant / child mortality has been decreasing since independence hence very few children die at young age since independence

PART 2
After independence, Kenyatta adopted policies that led to economic growth of Kenya by embracing continuity and retaining of the former colonial civil servants .His Pro –western anti -communist policy attracted foreign investors.This among other policies led to Kenya achieving a gross national income of $100 which has so far increased to $850 in 2012.
Kenya faced economic crisis in 1980s which led to the decline GDP/ capital. The then government under Daniel Moi, adopted policies such as nationalization of resources which was characterized by; lack of expertise and massive corruption. This led to slowed growth since it did not create attractive environment for private investment sector. The adoption of Africanization policy that hindered foreign investment and international borrowing, consequently leading to slowed economic development. The Moi regime was characterized by patrionage and clientelism where the public government resources were awarded to certain groups of people affiliated to the president in exchange of loyalty. The government established price regulatory measures on the domestic market where farmers sold their good to the government at lower prices and the sold them at higher prices. Some farmers, particularly coffee farmers suspended the coffee growing thus slowing economic growth.

The dictatorship, massive corruption in the 1980 and adoption of single party state in Kenya by Moi government, prompted the International community to mount pressure on Kenya. Particularly, International Monetary Fund suspended its payment to Kenya for failing to comply with the terms of their agreement with IMF. Massive expenditure by Kenyan government led to budgetary deficit thus declining in the GDP per Capita. The trade deficits which were witnessed in large parts of the world markets especially due exorbitantly high oil prices made it expensive for non -oil producing countries like Kenya to import oil. Consequently, Kenya among other countries spent more money in imports than the income exports generated hence bringing about some imbalance in trade and slowed economic growth. The overvaluation of currency by some countries made it difficult for Kenya to import goods from such countries due to inflated cost of importation.
The GDP per capital also declined because of decline in exports. Kenya exports are largely from the agricultural sector. They include horticulture products, coffee, tea, legumes which constitute 3% of the exported goods, fish and cement. The fluctuations of prices of agricultural goods in the world market slowed the economic growth in Kenya, imposition of government price regulatory measure whereby the government bought the products from the farmers at lower prices and sold them at higher prices. The other factor for decrease in the exports was due to lack of enough rains and existence of persistent drought patterns, lack of capital and the existence inflated interest loans made it difficult for farmers to purchase farm inputs such as fertilizers and pesticides. Presence of stiff competition due to production of similar goods by other trade partners has led to decrease in the exports hence decline in GDP per capita. Lack of advanced technology and technical expertise among the farmers led to decrease in the exports due to production of lower yields. Import substitution by other countries led to decline in the exports due to lack of market for exports. Adoption of import restrictions to lower trade deficit, reduction of government expenditure and increased investment of domestic borrowing has led to economic development.
The GDP per capital gradually has been increasing after the declines witnessed in the 1980s. Some of the factors for the rise in the GDP per capita was the adoption of Structural adjustment reforms such as creation of an anti-corruption commission which was geared at reducing graft by enhancing transparency and accountability in the way the government utilized the funds for public utility. The debunking of Africanization policies and embracing of prudent foreign borrowing and opening the market for foreign investment led to economic growth. The government removed price regulation measures and adoption of privatization of enterprises which were previously under government ownership which led to economic growth since the environment for both domestic and foreign investors was made conducive.
Improvement of infrastructure through the use of borrowed funds led to opening up large areas for investment. The government advancement of capital formation led to capital availability per worker. Adoption of import substitution by the government has led to economic growth since the country can access the goods that were previously imported for the domestic market. Presence of stable democratic government led to more domestic and foreign investment.
The establishment of import and exports incentives such as draw back duty through the East Africa Custom management, the Tax Remission Exports offices as well as Manufacturing Under Bond led to the increase in GDP per capita.
Other exports incentives include the establishment of East Africa Export Processing Zones (EPZ), transfer of exports to a free port, good fiscal incentive for the exports, as well as favorable operational technicalities and good infrastructure. This incentive led to increase in the exports which translated to an increase in the GDP per capita. Other factors leading to increase in the imports include, removal of price controls, provision of affordable loans to farmers, advancement of technology, emergence of farming co-operative which helped farmers market their products and adoption of irrigation system of farming to substitute for the persistent droughts and rain shortage.
Adoption of the Millennium Villages Project in Kenya has greatly boosted the agricultural sector thus increasing the exports and GDP per capita.
The Millennium villages project, has led to increase in agricultural production and food security by providing fertilizers to farmers and other farm inputs at subsidized charges, provision of technical advice on better farming methods to the farmers and availability of low interest loans to the farmers. Increased levels of literacy in the country and high expectancy have led to emergence of high skilled labor and innovative entrepreneurship thus increasing GDP per capital. Increased government spending on infrastructure and decreased interest rated on government loans has promoted domestic investment hence economic growth. Efficient regulation for business start- up procedures such as registration of a business name or a company and licensing are now easily available at subsidized fee hence increased domestic investment.
The current trend of increased in GDP per capital has been characterized by increase in literacy levels among the adults to 72% with Nyanza county taking the lead in adult education. Free primary and secondary school education has led to improvement the literacy levels with increased enrollment. There has been great decline in infant mortality rates due to accessibility of improved health, well balanced nutritious food, availability of maternal care and availability of immunizations against communicable disease at young age. The life expectancy has rose form 51 years to 61 years due to improved health care, decreased tobacco smoking and reduced HIV/AIDS related deaths.

Kenya indeed as a country has achieved great milestones in terms of GDP Per capital and has recorded a higher economic trajectory compared to some Sub-Saharan African countries such as Ghana and Tanzania and lies slightly below the oil rich Nigeria and gold rich South Africa.
Despite the economic growth, graft and weak institutional capacity whereby senior government officials and cabinet secretaries under corruption probe step down and never to be held accountable for their action has been on the rise. It has become a trend of "Rob the Government and step down." as well as transferring of government funds to foreign accounts especially in Switzerland.