Abstract: The evolution of economic policies in Kenya dates back to the colonial era (period preceding 1954) that was characterized by settler targeted government assistance and exclusion of indigenous populations from commercial agriculture. The post liberalization era began in 2003 under which the Economic Recovery Strategy for Wealth and Employment Creation (ERS-WEC), Strategy for Revitalizing Agriculture (SRA) are being implemented. Trade liberalization was initiated through the Structural Adjustment Programs (SAP) of the transition period. These consisted of a set of policies designed to make production and resource allocation more efficient. The broad aim was to shift the economy from the inward oriented import substitution policy to a more open outward orientated policy which will encourage exports and imports of goods and services. Another aim of the SAPs was to encourage privatization, public sector reforms and the support of the private sector. The beginning of SAPs in the country was marked by the signing of the Structural Adjustment Loan (SAL) in 1980. The emphasis of SAPs was on the promotion of the non- traditional exports and market liberalization. The same time government embarked on vigorous export promotion strategy so as to increase returns from exports. This entailed reduction and restructuring of tariff, abolition of export duties, introduction of export retention schemes and export credit guarantee corporation. Incentives such as the Manufacture under Bond (MUB), green channel and export compensation were also introduced.
Publication Year: 2010
Publication Date: 2010-02-01
Language: en
Type: article
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