This study was motivated by over a quarter of a century of exchange rate volatility, the persistent problem of budget deficit in Kenya, and the importance of the two in the economy, which explains their inclusions in the convergence criteria for the East Africa Community. Exchange rate volatility exposes the participants of international markets to the risk of loss and thus disturbs the optimal allocation of resources. Despite effort made by past studies to explain exchange rate volatility, there exists controversy in their findings, with a counterargument being provided for each assertion....

Agricultural development policy in Kenya has over the years focused on providing incentives for increased production of food crops for self sufficiency. Both price and non-price instruments have been advocated for as a means of improving economic conditions for farmers. This book reports results of an investigation on the response of maize, sorghum and millet production to both price and non-price incentives. It discusses the relative importance of price and non price incentives while also exploring the complementarity between them. The arguments suggests that good prices alone cannot produce...

Private investment in Kenya has been low for the last four decades. This has stimulated much concern to the policy makers' bearing in mind that investment is a key variable influencing economic growth. The government has over the years designed economic policies with an aim of rejuvenating private investment which was robust during the first decade of independence before deteriorating in the other decades. Fiscal policy has been a major focus towards this direction. This study was carried to investigate the effects of fiscal policy on private investment in Kenya. The study adopted modified...