Kenya is currently going through economic tough times. The price of maize flour – the staple food for most of the country’s poor – has increased 250% in less than one year, from 48 shillings for a 2kg packet in December 2007 to 120 shillings in November 2008. The rapid price rises are attributable to high global food prices and poor local harvests. Many stores have no remaining stocks of maize flour, while others are rationing sales.
At the same time, Kenya’s export income is taking a battering. In recent times, Kenya’s largest source of export income has been tea, but auction prices for tea have dropped by up to 60% since September, largely because of a fall-off in consumer demand attributable to the global financial crisis. One of Kenya’s major markets, Pakistan, is facing significant financial difficulties and unable to pay for tea imports.
For many people in the US and other western countries, a recession is a substantial inconvenience. Some people lose their jobs, some people lose their houses, most people have less money to spend, numerous businesses go bankrupt, and many people lose some or all of their savings. In poorer countries, a recession has even more devastating effects for many people.