Economic Liberalisation and Industrial Restructuring in Kenya

This study sought to examine and analyse Kenya's economic liberalisation and industrial restructuring in the City of Nairobi, with emphasis to the food processing, textiles and leather subsectors. Research findings indicate that economic liberalisation has negatively impacted on the performance of industries leading to increased production costs, unemployment and a decline in demand for manufactured products. Industrialists have adopted several strategies to mitigate the negative impacts including product and technology changes. Research findings also indicate that the features of the flexible specialisation model as theorised by Piore and Sabel and other 'western' writers are not well developed in the study area. It was also observed that no significant spatial reorganisation of industries had occurred in the study area. The study recommends deliberate use of comprehensive policy frameworks to address the negative effects of economic liberalisation