Global Economic and Financial Crisis and Trade: Kenya’s Experience
"This paper investigates the effects of the global economic and financial crisis in Africa and whether or not Kenya’s trade sector has been a channel for transmitting the crisis in the country. The analysis of the effects of the crisis in Sub-Saharan African countries indicate that, the crisis will slow down poverty reduction efforts, increase hunger and malnutrition and deepen the problem of long-term development in the poorer countries of Sub-Saharan Africa. In the case of Kenya, the analysis suggests that it has not been spared either. Prices of staple foods have been escalating, the price of export commodities have been declining, the volume and value of exports have been on the decline, the tourism industry has been hard hit and remittances have also declined to an all time low. Kenya’s balance of trade, terms of trade and the current account have not been spared either. This paper proposes the introduction of subsidies for producers, a stimulus package for those industries that are on the verge of collapse and an increase in government expenditure to stimulate local demand. Donor agencies and development partners should help in this noble cause."