-The country relies on importance of oil ignoring other sectors of the economy
- When prices of oil increases sharply Kenya spends large amount of her revenue on importation which affects balance of trade
- Increase in oil prices results in increase in the cost of manufactured goods and services causing inflation in the country
- Oil producing and exporting countries (OPEC) dictates the price without consulting the consumers such as Kenya. This necessitates high taxation to create revenue for importing oil
- Kenya exercises a higher shortage of petroleum product e.g. gas leading to destruction of forests
marto answered the question on September 12, 2019 at 09:38
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