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THE UNIVERSITY OF LEIPZIG

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foreign exchange controls made the domestic environment for investment even less<br />

attractive. 27<br />

From 1991 to 1993, Kenya had its worst economic performance since independence. Growth<br />

in GDP stagnated, and agricultural production shrank at an annual rate of 3.9%. Inflation<br />

reached a record 100% in August 1993, and the government's budget deficit was over 10% of<br />

GDP. As a result of these combined problems, bilateral and multilateral donors suspended aid<br />

to Kenya in 1991. 28 In 1993, the Government of Kenya began a major program of economic<br />

reform and liberalization. A new minister of finance and a new governor of the central bank<br />

undertook a series of economic measures with the assistance of the World Bank (WB) and the<br />

International Monetary Fund (IMF). As part of this program, the government eliminated price<br />

controls and import licensing, removed foreign exchange controls, privatised a range of<br />

publicly owned companies, reduced the number of civil servants, and introduced conservative<br />

fiscal and monetary policies. From 1994-1996, Kenya's GDP growth rate averaged just over<br />

4% a year. 29 In 1997, however, the economy entered a period of slowing or stagnant growth,<br />

due in part to adverse weather conditions and reduced economic activity prior to general<br />

elections in December 1997. In 2000, GDP growth was negative, but improved slightly in<br />

2001. Economic growth continued to improve slightly in 2002 and reached 1.4% in 2003 and<br />

it reached 4.3% in 2004. 30 In terms of international standing, Kenya is one of the few reputed<br />

African countries, and hosts a number of international organisations and different foreign<br />

missions in its capital Nairobi. It is the only African Country which hosts many United<br />

Nations Departments, such as the United Nations Environment Department (UNEP)<br />

headquarters.<br />

Geographical location of Kakamega Forest<br />

Kakamega forest is located in the Western Province of Kenya, lying between latitudes<br />

00°08’30.5’’ N (41 236 in UTM 36 N) and 00°22’12.5’’ N (15 984) and longitudes<br />

34°46’08.0’’ E (696 777) and 34°57’26.5’’ E (717 761) at an altitude of about 1500 to 1700m<br />

(Map. 1). From the 150 km remote Rift Valley it is separated by highlands like the Cherangan<br />

in the north, and the Mau Escarpment in the south. The distance to Kisumu from Lake<br />

Victoria is about 43 km (Map.1). Kakamega town on the western side of the forest is located<br />

about 7.5 km to the nearest point of the main forest block. 31 Kakamega forest is about 66 km<br />

from the border to Uganda and about 94 km to Mt. Elgon. It is one of the few tropical forests<br />

remaining in Kenya. It also acts as a habitat to a great number of plant and animal species, yet<br />

27 IMF. 1995. Kenya and the IMF. Washington:International Monetary Fund.<br />

28 GOK. 1997. The Statistical Abstract .Nairobi:Government Printer.<br />

29 GOK. 2005. Background o the Budget. Nairobi:Government Printer.<br />

30 GOK. 2006. Population and Human Development Planning Report. Nairobi: Government Printer.<br />

31 KIFCON. 1994. Kakamega Forest - The official guide, Kenya Indigenous Forest Conservation Programme.<br />

Nairobi: Kenya.<br />

7

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