Kenya Economy was dominated by the agricultural sector in the early years of independence. At that time Kenya used to earn a substantial amount of income from the export of agricultural products. The small size of the country and high labor specialization has contributed to the flourishing After establishment of democracy in Kenya, the govt. concentrated at achieving overall economic growth.
With this aim Kenya gradually moved to a Mixed Economy where a perfect blend of privately owned businesses and State run businesses were promoted.In the period of 1963-73, Kenya experienced a GDP growth rate of 6.6%. But between 1974 and 1990, Kenya suffered from poor economic performances.
The Oil Crisis of mid 70s and the periodic droughts caused remarkable negative impact on the Economy of Kenya.
The pressure of increasing population was also posing a problem. In the period 1991-93, Kenya experienced the worst as the GDP Growth stagnated, agricultural production declined sharply, Budget Deficit and Inflation reached the alarming level. To improve the situation, Kenya undertook an Economic Reform and Liberalization Program. From this time onwards, the economy of Kenya started to grow again.
Though at present, unemployment and poverty exist in Kenya, the economy is growing at a slow pace.
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Last Updated on : 7th August 2013