Economic Survey 1979

Abstract

Balance of payments difficulties which have already caused the tightening of credit restrictions and an introduction of the import prepayment scheme seem likely to restrain growth in the domestic economy in 1979. Sales of coffee on world markets will be low in volume and at relatively poor prices. At the same time the events in Uganda will temporarily have a standstill effect on economic life of that country, leading to extreme difficulties for Kenyan merchants wishing to do business there. Possible shortage of imported supplies due to import restrictions could have a particular impact on manufacturing sector and will also adversely effect commerce. The possible further rise in crude petroleum prices due to supply shortages will aggravate the balance of payments constraints in 1979.