Institute for Development Studies, University of Nairobi

Estimates of capital/output ratios for fourteen sectors of the Kenyan economy are reported. For each sector, five alternative estimates were calculated, each contingent on a different assumption about the rate of depreciation. Although the resulting estimates of capital/output ratios differ widely, it is shown that projections of gross investment requirements are quite insensitive to the choice of assumption. Related estimates of rates of profit on capital, and of the capital costs of providing jobs, are also discussed.