Development finance in Kenya's industrial sector: a political economy approach

Abstract

For many years under colonial rule, Kenya was a 'plantation economy' dependent on exports of coffee, tea and sisal. It had a small industrial base dominated by and tailored to the needs and tastes of two major immigrant groups - the Europeans and Asians. Upon attaining independence, Kenyan nationalists felt a need to encourage the participation of indigenous Kenyans in all sectors of the economy, including industry. To further this goal, development, finance institutions were formed. The study proposed herein undertakes to investigate the impact of four major development finance institutions, namely the ICDC, DFCK, IDB and KIE, upon the industrialization and indigenization processes in Kenya.