Economy

Subsistence agriculture and the barter of goods formed the foundation of the Kenyan economy in the early days of independence. Agricultural exports, mainly tea and coffee, brought in substantial income from foreign exchange. With democracy newly established, the Kenyan government began to promote a mixed economy composed of both privately-owned and state-run businesses. These attempts to diversify the economy meant increased stability, employment, and overall economic growth during the first ten years of independence. The oil crisis in the mid-70s coupled with periodic droughts and an increasing population have combined to threaten Kenya's economic health. Today the economy is greatly influenced by the development of "parastatals" or enterprises that the government either fully or partly owns. A substantial amount of foreign investment further supplements economic growth. Despite these steps forward, poverty and unemployment persist and the balance of trade remains unbalanced. The ever-increasing population rate further exacerbates Kenya's economic challenges.

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