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Vol 51 No 1

Published 8th January 2010


Kenya

Drought and politics

The economy’s prospects will be deeply influenced by the constitutional referendum and probable political violence trials at the Hague. Political ructions could set back the fragile recovery and cause more capital flight. The prolonged drought has led to poor harvests and fast-rising food prices. In 2008, 2.5 million people needed food aid; that increased to 3.8 mn. in 2009. The export of food, drinks and flowers was hit hard and in quick succession by the violence, the global slowdown and the drought. A revival in rural Kenya, where most of the country’s votes are, is crucial.

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