The IMF forced Kenya to commit to structural adjustment policies.They forced the country to reduce spending on like health, education and development.They made debt repayment and other economic policies the priority.This lowered the living standards of citizens.
They liberalized the economy and opened up the Kenyan market to cheap imports.This stifled and killed the local industries resulting in major lay offs.
The IMF devalued the Kenyan currency, increased the interest rates.This resulted a massive loss of purchasing power to the citizens and also made loans very expensive.The consequence of the devaluation and the rate increase weakened local businesses. Devaluation of the local currency also made goods and services very expensive.
Measures to redress
1.Encourage local industries and businesses through tax reliefs.This will ensure that the country has sufficient goods and can export the surplus.
2.Encourage consumption of locally produced goods.This will reduce the dependence on expensive imported goods and sustain the local industries.
3.Increase subsidies to farmers.Farm inputs such as seeds and fertilizers need to be subsidized to make farming more sustainable.This will reduce the cost of food and other goods in the economy.
jeffzod answered the question on October 24, 2018 at 07:50
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