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Significance of Trade to Kenya

Answer Text:
Significance of Trade to Kenya
1. Many Kenyans are employed in domestic trade such as in wholesale and retail shops and in sectors dealing with foreign trade such as customs and clearing and forwarding firms.
2. It’s a source of revenue for the government by
charging sales tax such as V.A.T. on manufactured goods sold locally and tariffs at the point of entry into the country.
3. Foreign trade enables a country to earn foreign exchange which is used to import goods that a country needs, setting up of industries, developing transport and
communication, providing social services etc.
4. Leads to development of settlements e.g. many towns started as a small market and more people moved there when trading activities increased.
5. International trade ensures availability of a wide range of goods for
consumers to select from in order to satisfy their needs.
6. It leads to development and improvement of transport infrastructure such as roads and railways in order to enhance transportation of goods and people.
7. Leads to development of industries because as the goods are bought demand for goods increases hence more industries are set or existing ones increase their activities in order to satisfy the increased demand.