Explain the problems facing industrialization in Kenya and give possible solutions

1. Kenya lacks adequate capital for industrial establishment forcing her to get loans from financial institutions such as I.M.F and World Bank whose interest rates are very high and sometimes come with strings attached.

-The solution is government to give incentives such as tax exemptions to investors in order to establish industries

- Local financial institutions should assist by giving long term loans at affordable loans.

2. Industries suffer from the problem of raw materials e.g. agricultural industries when agriculture fails due to adverse weather conditions. Timber industry suffers due to trees taking long time to mature and those depending on imported raw materials suffer when strict exchange controls are put in place.

- The solution is supplementing local raw materials with imported raw materials.
- Planting more trees to increase raw materials required for timber related industries.

3. Local market for industrial goods isn’t sufficient to sustain production due to low purchasing power, the cost of manufactured goods being too high due to the high cost of raw materials and the preference of some people to buy imported products thinking they are of better quality.

- Government should explore market within regional trading like COMESA, EAC, etc.

- It should also provide technical assistance to local manufacturers so that produce goods of high quality in order to be able to compete favorably in the world market.

- Government to lower tax on raw materials in order to reduce the prices of manufactured goods.

4. Lack of skilled lab our due to brain drain forcing the government to employ expatriates whose salary package is very high thus lowering the profits. It may also lead to poor management leading to losses and eventual close down of some industries.

-More people should be trained in respective fields to make up for shortage.

- Improvement of salaries and working conditions to check the brain drain.

5. Locally produced goods compete with imported goods which are in most cases cheaper leading to the decline or death of local industries. There for instance is importation of 2nd hand clothes which has led to the decline of textile industry.

- Imposing heavy duties on imported products which are also produced locally.
- Improving the quality of locally manufactured goods so that they can compete favorably
- Eliminating corruption in the importation sector to ensure goods aren’t imported illegally.

6. There is the problem of the high cost of energy due to importation of petroleum at very high cost causing the industrial costs to tremendously increase thus affecting the marketability of the products as they become affordable.

7. Industries cause environmental degradation e.g. pollution from the emissions they release into the air and effluents they release into water bodies. Atmospheric has led to global warming and water pollution to death of fish. Industries such as cement manufacturing make land derelict by depositing rock wastes on the ground.

- The problem can be reduced through strict legislation against dumping of industrial wastes and inspection of industrial activities to ensure wastes aren’t released to the environment before treatment.

8. Has led to the neglecting of agriculture when able bodied people move to urban areas to look for jobs in industries, when people neglect food crops and take up cash crop production.

- The problem can be solved by offering better prices for agricultural produce to make agriculture more attractive.
- Farmers should be encouraged to diversify their activities.

9. it has led to unemployment as it has led to technological innovations such as computers and robots and other automatic gadgets which have replaced physical manpower.

- People are being encouraged to become self employed.
-Industries are also discouraged from laying down their staff.

10. Has led to displacement of people by forcing people to vacate the area where manufacturing industries are being established e.g. the preparation for titanium mining at Kwale District.

-The solution is compensating and resettling the displaced residents.
- Efforts should be made to locate industries in sparsely populated areas.

11. Causes rural to urban migration as a result of establishment of industries in urban areas where rural dwellers go to seek for jobs. This has caused shortage of labour in rural farms, congestion in urban areas leading to pressure on existing social amenities, inadequate job opportunities leading to crime and other social evils, etc.

- The government should ensure equitable distribution of industries throughout the country.
- It should encourage industries to be put up in rural areas through tax exemptions.
- Provision of amenities such as electricity, clean water and entertainment facilities in rural areas.

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marto answered the question on March 28, 2019 at 11:14