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 Form 4 Geography online lessons on trade

Problems Facing Trade in Kenya

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Answer Text:
Problems Facing Trade in Kenya
1. Kenya largely depends on agricultural exports which are sometimes affected by climatic variations, diseases and pests leading to low production, and hence low foreign currency.
2. Kenya’s exports are of low value as they consist of raw materials or semi
processed commodities which fetch low prices because they have to be processed further and also due to being bulky a lot of money is required for their exportation making returns accruing from exportation to be low.
3. Local manufactures suffer unfair competition from foreign firms e.g. from
COMESA some of which don’t attract tariffs, diversion of goods intended for neighbouring countries to the local market and counterfeit goods which compete with genuine ones.
4. There is ignorance about Kenyan goods where by some Kenyans believe that goods from overseas are of superior quality so they prefer imported goods instead of local ones.
5. Unexpected trade restrictions are sometimes imposed on Kenyan exports e.g. in 2000 E.U. banned fish importation from Kenya.
6. Inadequate transport and communication as most roads are poor and impassable during rainy season meaning goods can’t reach the market and hence increased costs for such goods.