Prepared by Julie Kozack.
The adverse weather conditions affecting Kenya in 1997 caused goods export volumes to continue to decline into 1998.
See Section VI of this selected issues paper for details of the impact of governance problems on growth and economic performance.
Inefficiencies and political interference in the commercial court system undermine the efforts of creditors and liquidators (such as the Deposit Protection Fund) to enforce loan contracts. This has led to a poor credit culture and, as a result, inadequate access to credit for small and medium enterprises. For a detailed discussion of the Kenyan banking system, see Section V.
The Coffee Act mandates that all small-scale farmers be members of a cooperative society.
According to the Coffee Act, a license is required for coffee planting, and only planters are allowed to own coffee. Planters are defined as cooperatives or estates of a least 5 acres, and are not permitted to plant outside their approved areas.
This phenomenon has been confirmed through discussions with industry representatives in Kenya, who have indicated that firms are considering moving their operations out of the country.
See the Annual Report, 2000 of the Horticulture Division of the Ministry of Agriculture and Rural Development of Kenya.
Underrecorded tourism earnings are thought to be the primary contributor to the large, positive net errors and omissions in Kenya’s balance of payments.