Kenya's policy of import substitution, which started in 1946 with European and Asian enterprises, did not achieve the desired result of transforming Kenya's industrial base. In the late 1970s, rising oil prices began to make Kenya's manufacturing sector noncompetitive. In response, the government began a massive intervention in the private sector. Lack of export incentives, tight import controls, and foreign exchange controls made the domestic environment for investment even less attractive.
kenya's policy of import substitution which started in 1946 with european and asian enterprises did not achieve the desired result of transforming kenya's industrial base in the late 1970s rising oil prices began to make kenya's manufacturing sector noncompetitive in response the government began a massive intervention in the private sector lack of export incentives tight import controls and foreign exchange controls made the domestic environment for investment even less attractive