| dc.description.abstract | Kenya exhibits a dualistic economy in the Agricultural
Sector. In scheduled agricultural areas, there is
commercial farming and in the nonscheduled agricultural
areas, a mixture of semi-commercial and peasant (subsistence)
farming. The rural area is the center of life
for more than 70 percent of the Kenyan population. If
these people are to improve their 1st, it will be through
interacting schemes of agricultural and community development.
The scope of this study is to appraise agricultural
investments during the Six-Year Development Plan,
and to estimate what role agricultural investment will
play in bringing about the projected economic growth and
development by 1970.
The analysis of the economy between 1954-1962 reveals
many interesting facts. The rate of population
growth has been three percent and is expected to remain
the same in the future. Thus the population growth rate
suggests that, to achieve any net economic growth, output
must increase by more than three percent per annum
if income per capita is to be raised. A problem that
will face the government is that of unemployment. The
gross domestic product at current prices increased at a
rate of five and one-half percent. Prices, measured by
changes in the Nairobi cost of living index, increased
by two and one-half percent per annum. The growth rate
of the Gross National Product, in real value, is only a
three percent increase, which is just enough to support
the population growth. The real per capita income
probably has increased from zero to one and one-half
percent during that eight-year period. In differentiating
per capita income from per capita product, labor
has grown by two and one-half percent over this period.
The rate of economic growth between 1954-62 has
occurred in two phases. In the first phase between 1954
to 1958, where each sector of the economy showed substantial
growth, real gross domestic income grew by at least
three and six tenths percent. The annual growth in the
agricultural sector was more than six percent. The
second phase was between 1958-62 which was characterized
by a declining growth rate.
The Agricultural Sector is the major source of
income. Over 80 percent of the population earns its
living from this sector. Primary exports have contributed
between 85 and 90 percent of the total export
earnings. It constituted about 40 percent of the Gross
Domestic Product. New methods of farming have been
adapted to nonscheduled agricultural areas under the
Swynnerton Plan.
The resources of Kenya are too limited for her to
engage in quick industrialization. The planning
authorities have designed the Six-year Development Plan
1964-70 with a view of utilizing the available resources
in the most profitable and efficient way. To achieve
its goals of raising per capita income and economic
growth, the planners advocate heavy capital investment
in the agricultural sector, where less skilled manpower
is needed. A complete revolutionary change is expected
to take place. The scheduled agricultural areas will be
re-distributed; nonscheduled agricultural areas will be
consolidated and titles to land established. New farming
areas will be provided through the irrigation schemes
and land reclamation.
Agricultural credits have been offered in order to
facilitate loans to the farmers. Cooperative institutions
have been organized so that farmers will be united,
better farming methods adapted, better prices obtained
and loan facilities readily available.
The Agricultural Sector is aimed at providing
employment facilities in the near future and in financing
the future development. This will come about through
earnings from exports and taxes. It may be pointed out
that the economic growth of the country might change
from depending on the agricultural sector, if discovery
of natural resources takes place. For instance, a new
metal, Wollastonjte, estimated to be worth at least
25,00O,000, has been discovered near Kajiado. This
discovery will have substantial impact on economic growth.
It is too early to appraise accurately the impact of
the agricultural investment, and its actual role in economic
growth and development, because of many factors
which are involved. Some of these factors are export
prices which might decline or rise; private investors'
attitude about investment; the adoption of new methods of
farming by farmers; political stability; availability of
funds from abroad; and climatical factors which can or
can not be favorable. If all goes well, the intended
investments in the course of the Six-Year Development
Plan 1964-70 will boost the entire economy.
In this thesis, the author has attempted to appraise
the impacts of investment in the agricultural sector
which is aimed at creating employment, raising capital
income per capita, increasing agricultural outputs, and
providing export earnings, foreign exchange, and capital
formation. Furthermore, the social and political implications
of land "hunger" in Kenya will be somewhat minimized
by the programs. Since economic growth and
development is an evolutionary process, Kenyans and
their government have to exercise patience coupled with
dedication to make economic transition smooth, cumulative,
and progressive. | en |
