The economic progress of Kenya after independence (1963-1973)
Abstract
The economy of Kenya is on market goods with few state enterprises and a well-established external trading system. Some of the significant Kenyan industries include agriculture, which is the primary source of foreign exchange for the Kenyan economy. Other sectors include fishing, forestry, mining, manufacturing, and tourism. Kenya gained its independence in the year one thousand, nine hundred, and sixty-three. During that year, the Kenyan Government promoted the development and growth of the Kenyan economy by encouraging smallholder agricultural production by giving them incentives. The government also generated rapid economic growth through investments from the public. Between 1963 through 1973, the Kenyan economy experienced ups and downs due to various internal and external factors that influenced the economy. Gross domestic product (GDP) increased at a very high rate. Agricultural production was one of the main factors that stimulated the rise of Kenya’s Gross Domestic Product in the 1970s. The rise in fuel prices at around 1970 affected the economy at a higher rate than expected. The Kenyan Government tried to control the costs, but they had no control over world fuel prices. Setting up of industries for agricultural produce was the only option for the Kenyan Government. Besides, the introduction of new crops and opening up new areas for the cultivation of plants was the framework behind the surge in her economic development.
Introduction
It goes unnoticed that Kenya got its independence from Britain in the year one thousand, nine hundred and sixty-three. Most notably, the Kenyan economy had deteriorated or rather was performing poorly prior to the country’s independence. Before independence, the British were in control of the economy. After independence, the responsibilities of the country and its economy was left on the Kenyan leaders’ shoulders to take control. They had no idea of how to run the economics of such a great nation, and the leaders had to adopt the ways of the British to try and raise the economy. Independence brought the urge for economic development, which itself brought many social and political objectives. Political changes and difficulties associated with its change challenged economic prosperity. Unsurprisingly, however, Kenya enjoyed an economic prowess immediately after independence that is from 1963, as its gross domestic product grew by 6.6% from 1963 through 1973. Agricultural production became one of the most favored sectors between the same period as it grew by 4.7% annually. The investment climate favored by stable monetary conditions and engagement of Kenya in Mining activities, more specifically in her provinces.
After independence, the division of central and regional authorities was not complete, and this posed a significant challenge during the division of revenues. Self-government, as from 1963, had some consequences in the field of public administration. Other non-African residents had the role of building up the monetary economy. They included the Asians and Europeans and had a purpose of supplying skills and capital. During the period between 1963 and 1973, Kenya was a low-income country, and it had to rely on funds from abroad, in this case, Asian and Europeans, to fund its economic growth. The approach of independence brought an urgency to some problems facing future economic developments. The determination of a self-governed country brought an urge to facilitate the amendments to the growth of the economy.
Body
After Kenya regained its independence, it faced rapid economic growth. The economy grew by a higher rate in the aftermath of the country’s independence despite the Kenyan leaders having close to zero knowledge on how to run the economy. For the economy to grow, they had to come up with ideas on how to raise the economy rapidly. Some leaders proposed that the government should adopt capitalism while others proposed on communism. The broad aims of enhancing economic development in the first years of independence were to increase production and revenue. The economic growth was through developing agricultural strategies and encouraging people to get involved in ensuring economic growth (M’Amanja & Morrissey,2005). The introduction of small-scale farming through settlement may have increased amounts of farm products produced countrywide. Most of the Kenyan land was arid and semi-arid areas during the colonial period. Activities by the government to expand cultivation lands through irrigation in arid and semi-arid regions significantly increased the production. The creation of plantation on those new lands brought about employment opportunities for people working in those lands.
The establishment of industries for agricultural related products significantly increased employment opportunities to many Kenyans. Kenya got foreign exchange from the goods exported to Europeans and Asian countries. Kenya took advantage of heavy rainfall received in some parts of the country and started rice farming, which did very well. Tea, coffee, and sisal were the main products for export (Newland & Plaza,2013). The export crops adopted from the British colonies, and they brought a great deal to the Kenyan economy. The plants grew in the mountains due to suitable climatic conditions and fertile soils. Apart from crops, the Kenyan Government advised on the rearing of livestock in the lower rainfall areas.
Kenya’s economic development was at a rapid average rate of 6.6% annually in the years between 1963 and 1973. Maintaining agriculture as the primary source of income and revenue may have been the cause of the rapid growth of the economy. The rise of agricultural production by 4.7% annually in the same period was a good indicator that the economy was performing positively. All the plans that the government put in place to ensure more enormous changes in the field of agriculture seemed to bare fruits (Bradshaw,1988). The department of Agriculture and Veterinary services took a hand in ensuring the growth of the sector. Expansion of cultivation lands and tenure system was one of the government measures to promote agriculture in the country (Fahnbulleh,2006). The government, through the veterinary department, took action to control diseases affecting livestock, which included tsetse fly eradication, tick controls. They also improvised ways of improving breeds of cattle reared through artificial insemination. The government came up with facilities for the processing of meat and dairy production.
The development of health facilities and other social services may have come with its challenges, but it was of help to the citizens. The government-sponsored students to study and achieve the knowledge which was useful to the community. Some of those students did medical courses; therefore, they got employment opportunities as doctors and nurses in the health facilities. Setting up of schools and other social amenities much helped society. Children could attend schools where they received a proper education. The establishment of schools increased the number of literate people countrywide (Bates, Coatsworth & Williamson,2007). Since the colonial period, the colonial government sensitized on good infrastructure. Right roads and railway lines enabled the colonial government to transport their agricultural products from the farms to the factories and processing industries. After independence, the Kenyan government took over and started repairing the roads and building new ones. In the rural areas, they made marram roads which connected to the tarmac roads leading to the cities—also, production of electricity and distributing it to several places all over the country. The government built improved the already make mining industries and constructed mores enterprises for the processing of the raw materials from the mining areas. Kenya started mining even in the colonial period. After attaining independence, they continued mining, but this time it contributed to its economy. Soda ash mining in Lake Magadi started as early as 1911, after independence, the Kenyan government took over the mining companies and started earning foreign exchange from its soda.
Economic growth drivers after independence may have been due to the self-governance of the Kenyan Government. The colonial government never contributed mainly to the economic growth of the Kenyan economy. The revenue and income they got from farming and mining went direct to Britain, thus leaving Kenya with nothing for her development. After independence, the Kenyan Government enacted plans to ensure the growth of its economy. The reforms were to simplify foreign and local investments (Allen, 2011). Their aim after freedom was to raise the gross domestic products by about 10% after ten years. The performance of the Kenyan economy was relatively pleasant as they were able to achieve approximately 7% increments in their annual gross domestic product by the end of 10 years. The Kenyan Government adopted specific programs for economic development that ensured the rapid growth of the economy. Agriculture, irrigation, and waters had a positive deviation from 1963 henceforth to 1973. Forestry had an estimate of 0.4% at the beginning of 1963 and ended up 1.5% by the end of 1967. Another driver of economic development was on agriculture, the government proposed on using modern methods of farming such as using fertilizers and manures in crop production. The aim of utilizing the current methods of farming was to increase the incomes generated from agricultural products.
The government started issuing incentives and tax exceptions to farmers to improve agriculture and small businesses. The government issued fertilizers to farmers at low costs and issuing seeds to farmers. In an attempt to save the farmers from continued losses arising from low rainfall and poor farms, the government issued pipes and irrigation equipment to set up irrigation systems (Tomlinson, 1982). The government set up boards that dealt with farmer’s agricultural products to prevent intermediaries from conning them. The government gave tax exceptions to the new businesses to support them in succeeding.
Conclusion
Generally, the Kenyan economy thrived from 1963 onwards through 1973 as a result of the reforms and economic drivers engineered by the government. It was evident since the annual gross domestic product it rises by 6.7% for ten years. The per capita income also increased for the same period. Also, agricultural production increased by 4.7% annually for the same period, therefore, leading to economic growth (Leys,1982). Industries and factories for processing agricultural products increased all over the country. Growth of different sectors of the economy, starting from tourism, mining, agriculture infrastructure was also evident after ten years. The growth of every industry initiated economic growth.
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