| dc.description.abstract | Kenya was a British dependence since 1897 in more ways than just the political fact of colonial government. Even after independence in 1963, the capitalist ideology and
economic structure pursued by the colonial regime has been
maintained with the well to do African bourgeoisie taking
over political power from the non-Africans. Private Foreign
Investment was one of the economic mainstays particularly
in Industry, at independence. It still is a dominant factor
in the present Economy.
Although the government of independent Kenya has not
used legislation much in regulating PFI, it has nevertheless,
sought to impose some form of regulation on such investment.
This study argues that despite such attempts, the active
encouragement of PFI has meant that the government has been
less than enthusiastic in pursuing its regulation with vigour and that, on the whole, PFI has been able to establish
and operate in Kenya with minimal and often insignificant
regulatory constraints. The study examines the government's
three-pronged main thrust at regulation of PFI viz. the PFI
approval process prior to establishment; the attempt to
acquire corporate control over investment through Africanization
of equity and management; and use of financial and
fiscal measures. The study argues that these measures are
undermined by the policy environment that often rwscounter
to their intended objectives. It calls for a review of the
broad economic and social policies pursued by the government
in order to remove the policy-induced distortions that
afflict the attempts to regulate PFI thus rendering them
largely ineffective. | en |
