Economic Survey 1961

Abstract

The economic scene in Kenya during 1960 presented something of a paradox. On the one hand the year was marked by lack of confidence resulting from political uncertainty which in the economic sphere manifested itself in a transfer of liquid funds from the Colony, a slackening in the flow of investment from overseas and a tendency to defer capital expenditure. This assessment was not, however, confirmed by most indicators of current activity. Agricultural production in 1960 from large farms and estates was, in terms of volume, some 7 per cent higher than in 1959. employment reached an all time record with an accompanying increase in the amount paid in wages, the domestic income in the recorded monetary economy rose by 7 per cent, and both domestic exports and retained imports recorded increases over the previous year. In terms of current output conditions in 1960 were far from depressed and the percentage increase in the cash domestic product was greater than that recorded in any of the three preceding years. In order to understand this apparent contradiction in the state of the economy it is necessary to examine the I960 position in some detail.