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What are problems that Kenya face as a result of over dependence on petroleum?

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Problems that Kenya face as a result of overdependence on petroleum are;

  • The country relies on importance of oil ignoring other sectors of the economy
  • When prices of oil increases sharply Kenya spends large amount of her revenue on importation which affects balance of trade
  • Increase in oil prices results in increase in the cost of manufactured goods and services causing inflation in the country
  • Oil producing and exporting countries (OPEC) dictates the price without consulting the consumers such as Kenya. This necessitates high taxation to create revenue for importing oil.
  • Kenya exercises a higher shortage of petroleum product e.g. gas leading to destruction of forests .