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Explain two likely effects of recent oil discovery to the economy of Kenya

Explain two likely effects of recent oil discovery to the economy of Kenya

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Kavungya
- The prices of oil products such as petrol, diesel, kerosene and Bitumen would reduce this will promote the development of other sectors e.g transport which relies on oil .
- Petroleum exploration, mining and processing will create employment to many people in the country. This will raise their standard of living .
- Growth of towns. Towns will develop where mining and processing of petroleum is carried out
- Development of infrastructure. The revenue which will be obtained from oil will be used to establish modern transport infrastructure e.g. roads
- Industrial development . Petroleum production would promote the growth and expansion of oil related industries e.g. fertilizer pharmaceuticals and plastics
- Promotion of agriculture . Oil exploration is being done in arid or semi arid areas of Kenya. Income from oil would be used to establish irrigation programmes and agricultural research. This will help to promote agricultural output
- Oil products can be exported to other countries hence earning the country foreign exchange
Kavungya answered the question on May 29, 2019 at 07:59

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