Sessional Paper No. 04 of 1975 on Economic Prospects and Policies

Abstract

Kenya’s impressive record of economic growth—6.8 per cent per annum during the first decade of independence—is currently in danger of erosion. The causes are: a price squeeze—import prices are rising much more rapidly than export prices; a commodity squeeze— decrease our imports and increase our exports and a credit squeeze—the need and difficulty of borrowing more from abroad to finance residual deficits in our balance of payments. This paper attempts to explain how external events affect our own development, what policies Government must pursue to cope with them, and why the understanding and co-operation of all groups in our society is critical to the success of those policies.