1984 drought forced Kenya to diversify economy, says ex-CBK Governor
Ex-CBK Governor Eric Kotut said the drought severely affected crop and livestock production at a time when agriculture, particularly tea and coffee exports, was the country's main source of foreign exchange...
✨ Key Highlights
The severe drought of 1984 significantly impacted Kenya's economy, compelling the government to implement diversification strategies, according to former Central Bank of Kenya (CBK) Governor Eric Kotut.
- The 1984 drought devastated the agricultural sector, Kenya's primary source of foreign exchange from tea and coffee exports.
- Eric Kotut, former CBK Governor, highlighted that this crisis led to seeking financial aid from development partners.
- Financial support from institutions like the World Bank and IMF came with conditions for Structural Adjustment Programmes (SAPs) to reduce reliance on traditional sectors.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
Eric Kotut Recalls 1984 Drought Impact on Kenya Economy - August 2026
Former Central Bank of Kenya Governor Eric Kotut, who once walked barefoot to school in rural Baringo, has shared his remarkable journey to leading the nation's apex bank during a period of significant economic challenges. The severe drought of 1984 significantly impacted Kenya's economy, compelling the government to implement diversification strategies. At the same time, the government has established a national carbon budget, capping carbon credit exports at 10 million tonnes of carbon dioxide equivalent through 2030.
