Which measures may Kenya take to reduce the unfavourable balance of trade?

      

Discuss measures which Kenya may take to reduce the unfavourable balance of trade.

  

Answers


Maurice
(i) Opening new markets to avoid dependence on the traditional partners.

(ii) Popularizing trade to increase earnings from the invisible trade.

(iii) Diversifying the agricultural export base to enable the country to have a variety of exports.

(iv) Encouraging development of Jua kali industries which do not require importation of heavy machinery/ so that Kenya is also able to export.

(v) Restricting the importation of luxury items through taxation.

(vi) Establishing/ providing import substitution industries to cut down on importation of some commodities.

(vii) Developing alternative sources of energy in order to reduce importation of fuels.

(viii) Encouraging the production of high quality manufactured goods for export in order to earn higher income.

OR

•Establishment of import substitution industries to reduce importation of commodities.
•Development of alternative sources of energy (H.E.P, solar, biogas) to reduce expenditure on oil importation.
•Encouraging local assembling of machines since importation of parts is cheaper.
•Finding new markets for exports to avoid dependence on a few trading partners.
•Diversification of exports.
•Encouraging the production of high quality/manufactured goods for export in order to earn higher income.
•Encouraging use of appropriate/local technology that does not require heavy machinery.
•Encouraging exportation of locally manufacturing goods.
•Increasing invisible trade e.g. shipping, tourism, insurance.
•Restricting the importation of luxury items through higher taxation.
maurice.mutuku answered the question on June 24, 2017 at 09:14


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