The collapse of the East African Community also affected the economy of the country. After 1985, Nyerere s economic policies began to be challenged openly by scholars and economists When president Mwinyi took over, he undertook to reform the economy of Tanzania. Political challenges that Tanzania has faced since independence. Key notes for the teacher and students- Cheloti 2012-2013 Page 82 a There was an Army mutiny in Tanzania 1964, which threatened her political stability. B The socialism policy The Arusha Declaration received stiff opposition from many both internally and externally. People favoured capitalism. C The assassination of Abeid Karume in 1972 and the resignation of Aboud Jumbe in 1984 appeared to threaten the unity of the two members of the Union Declaration. D The invasion of Tanzania by Uganda in 1978.and the consequent war with Uganda was costly to the country. It also threatened her cooperation with neighbours. E There was an escalation of corruption among leading members of Tanzania s political elite, including claims that President Hassan Mwinyi and his family capitalized on liberalization to amass a lot of wealth. F the re-introduction of multiparty democracy tended to awaken tribalism and regionalism although this problem was contained. Social problems, which Tanzania faced since independence. A Famine and shortage of health services as the government adopted the Structural Adjustment Policies of IMF. B Poverty and a general drop in living standards as production dropped due to socialism. C Lack of social amenities, like clean water in rural areas. D High illiteracy level. E Unemployment. In Tanzania, industries closed after the Arusha declaration. F Population explosion which outstripped the country s resources g Terrorism. Tanzania was under terrorist attacks in 1997 targeting the American embassy. H Environmental pollution. I Over-crowding in urban areas. Economic challenges. A In the early years of independence, the proliferation of African enterprises led to the widening of the gap between the rich and the poor. B Under the ujamaa policy, the forced villagization programme did not satisfy communities in areas with favourable climate. They therefore strongly resisted it. C There was rampant rural-urban migration affecting mainly able-bodied men who felt exploited by the new system of production. D The abolition of cooperatives was met with stiff resistance with many farmers cutting down heir production.


They therefore strongly resisted it. C There was rampant rural-urban migration affecting mainly able-bodied men who felt exploited by the new system of production. D The abolition of cooperatives was met with stiff resistance with many farmers cutting down heir production. Other producers reverted to the black market. E The Tanzanian shilling became unstable due to price fluctuations of some commodities. F There was shortage of donor funds caused by the nationalization programme that was opposed by many donor countries. G The collapse of the East African Community in 1977 denied Tanzania a large common market for her goods SOCIAL, ECONOMIC AND POLITICAL CHALLENGES IN AFRICA IN GENERAL. Political challenges that have faced African countries since independenceKey notes for the teacher and students- Cheloti 2012-2013 Page 83 a The political systems that were inherited from the colonial governments seemed to be unworkable in many independent African states. B Sharp ideological difference arose among the pioneer leaders of African states. Such differences internally exploded into civil strife in countries like Mozambique, Angola and DRC. C The cold war had diverstating effects on Africa. It left many African nations divided and locked in border conflicts that continue up to date. D Political instability was quite common in African states. Coups d tat and military takeover was witnessed in Somalia, Zaire, Nigeria, Chad etc Human rights were violated with the rise of dictatorship. E There were strained relations between African leaders caused by personal and ideological differences. Some ended in border closure, which greatly undermined international cooperation. F Many national interests in Africa countries have been in conflict with global and continental interests. Nigeria and Zimbabwe, for example had to be expelled from the Commonwealth of Nations for alleged disregard of human rights and personal property. G Neo-colonialism. Most countries retain the colonial structures of parliament although they have difficulties in sustaining them. Multinational peacekeeping forces are still common in Africa, many African leaders inherited the divide and rule colonial strategy that precipitates anarchy. H The existence of different ethnic groups has contributed to ethnic wars as witnessed in Rwanda, Burundi, Sudan, Nigeria and Kenya. I Most African government seemed ill prepared and in experienced in administration. This resulted in rise of rebel movements, as was the case of Mozambique and Angola. Economic challenges facing independent African states today. A Unemployment and socio-economic inequalities both among individuals and between regions are common in may African nations.


This resulted in rise of rebel movements, as was the case of Mozambique and Angola. Economic challenges facing independent African states today. A Unemployment and socio-economic inequalities both among individuals and between regions are common in may African nations. B Overdependence on primary exports. The African economy is an extractive one rather than a manufacturing economy. Many countries depend on agriculture and foreign nations for manufactured goods. C World trade terms are not fair for African nations. Africa countries find themselves trading with former colonial powers that give low prices fort raw material from Africa and charge high process for the manufactured goods. D There has been the problem of unfavourable climatic conditions. This has curtailed food production, particularly among agricultural communities. E Population pressure has led to overstretching of social services. There is a high dependency ratio since the population is largely youthful and unemployed. F Poor economic planning. Some economic policies have destabilized the economies. For the Ujamaa policy in Tanzania, the expelling of foreign investors in Uganda and the massive printing of money in Zaire. Key notes for the teacher and students- Cheloti 2012-2013 Page 84 g The tough conditions given by donor agencies have sometimes led to deterioration of social welfare. Retrenchment for example was a key prescription of the Structural Adjustment Programme. H Corruption and embezzlement of public funds is common in African countries. There is also general lack of transparency among many leaders. Social challenges that have faced African states since independence. A Inaccessibility to clean water by majority of the people. Most African peoples rely on water fetched from sometimes contaminated streams across long distances. B The challenge of HIV AIDS pandemic. This has had a toll on productive members of the society. C Poor housing facilities.. in urban areas, majority of the population live in slums without sanitation facilities. D The challenge of high population growth rate. This affects the quality of the services provided by governments. E Language problem. Language development and use has been a challenge in Africa. In many countries, conflict tends to arise over the language to adopt- local or the inherited one. F Religious differences. This challenge has been the main cause of the splitting of the once largest country in Africa-Sudan in 2011. The predominantly Christian southern Sudan has become the youngest African state thanks to religious differences. G Absence of practical systems of education. Many countries rely on theoretical education with little emphasis in technical skills.


The predominantly Christian southern Sudan has become the youngest African state thanks to religious differences. G Absence of practical systems of education. Many countries rely on theoretical education with little emphasis in technical skills. DEVOLVED GOVERN MENT. Devolution This refers to the granting of power from the central government to a lower level such as a region or a local level. A Devolved Government is a system of government where there is a transfer or allocation of authority from a central government to a regional government. In a devolved government, power and resources are decentralized with part of the political and economic decision making transferred to the people through the locally established assemblies. Origin of devolution in Kenya. Key notes for the teacher and students- Cheloti 2012-2013 Page 85 The Lancaster House Conference of 1962 forms the basis of devolution in Kenya. When the independent constitution was drawn during the conference, a federal system of government as proposed by the KADU delegates was adopted in Kenya. It made provisions for six regions. The legislature was to comprise two chambers the Senate or upper House and the Lower House However after independence in 1963, the Kenyatta Government began plans to scuttle the system of government. By December 1964, KANU and KADU merged to form a unitary government of the republic of Kenya. The enactment of the new constitution on 27th August 2010 reintroduced the concept of devolution in Kenya. Kenya is divided into 47 Counties each governed by A County Governor with the assistance of the County Executive Assembly. The National Government seats in Nairobi. To change County Boundaries, the Following must be considered; a Population density and demographic trends. B Physical and Human infrastructure. C Historical and Cultural Ties. D The cost of administration. E The Views of the communities affected. F The objectives of devolution of government. G Geographical features. Reasons why devolved governments were established in Kenya. A They were established as a means of promoting democratic and accountable exercise of power. B To Foster national unity by recognizing diversity. C To give powers of self-governance to the people and enhance the participation of the people in the exercise of the powers of the State and in making decisions affecting them. D To recognize the right of communities to manage their own affairs and to further their development. E To protect and promote the interests and rights of minorities and marginalized communities.


C To give powers of self-governance to the people and enhance the participation of the people in the exercise of the powers of the State and in making decisions affecting them. D To recognize the right of communities to manage their own affairs and to further their development. E To protect and promote the interests and rights of minorities and marginalized communities. F To promote social and economic development and the provision of services throughout Kenya. G To ensure equitable sharing of national and local resources throughout Kenya. H To facilitate the decentralization of State organs, their functions and services, from the capital of Kenya; i To enhance checks, balances and the separation of powers. Principles of devolution of government in Kenya. A County governments shall be based on the democratic principles and separation of power. B County governments shall have reliable sources of revenue to enable them to govern and deliver services effectively. Key notes for the teacher and students- Cheloti 2012-2013 Page 86 c No more than two-thirds of the members of representative bodies in each county government shall be of the same gender. Structure and Functions of a county government in Kenya. The county government is composed of County assemblies, county executive committees and county public service. County Assembly in Kenya. A county assembly consists of Members one member per ward elected by the registered voters of the wards in a general election. Members of special seats no more than two-thirds of the membership of the assembly is of the same gender. Members of marginalized groups, including persons with disabilities and the youth. The Speaker, who is an ex officio member. Nb-The members for special seats and marginalized communities are nominated by political parties in proportion to the seats received in the election in a particular county. Conditions for seeking election to a County Assembly. A The person must be a registered as a voter in his her county. B The person must have been a Kenyan citizen for atleast ten years before the elections. C The person must be able to read and write in English and Kiswahili. D He or she must be of sound mind. E The person must be of unquestionable morals and ethics f If a public officer, he she must relinquish his her public work. G The person must be nominated by a political party h If he she is an independent candidate, must be supported by at least five hundred registered voters in the Ward concerned. I The person must not have been declared bankrupt.


E The person must be of unquestionable morals and ethics f If a public officer, he she must relinquish his her public work. G The person must be nominated by a political party h If he she is an independent candidate, must be supported by at least five hundred registered voters in the Ward concerned. I The person must not have been declared bankrupt. J The person must not have served a sentence of imprisonment of more than six months. K Must not have been a member of IBEC within five years before the date of election. L The person must not have misused or abused a State or public office. Functions of a county assembly. A County assemblies make laws for the effective performance of the county government. B It acts as a watch dog over the county executive committee. C It receives and approves plans and policies for managing and exploiting the county s resources, d It approves policies for developing and managing the infrastructure and institutions in the county. E It enhances legislation that may set out the structure and framework for the better administration and management of county governments. F It approves oversight budgets and development projects within the county. G It approves investment decisions and loans. Key notes for the teacher and students- Cheloti 2012-2013 Page 87 h It supervises other units within the county through political authority, guidance and direction. I Monitors the execution of projects under approved development plans, and assesses and evaluates their impact on development in the county. The process of law making in a county government. It is the duty of the County Executive committee, comprising of the governor, the deputy governor and ten other members to draft the details of the proposed legislation with no bias. The public servants in the county governor s office participate in preparation of the proposed law. The county executive committee then presents the proposed legislation to the county Assembly. The members of the county assembly are then free to make their contributions to the bill during the discussion and debate that follows. Amendments and improvements may be proposed to the bill at this stage. The recommendations are incorporated If the members are in favour of the bill, and if it is in conformity with the National Government legislation, then it is approved to become a by-law of the county government The structure of The County Executive Committee. The executive authority of the county is vested in the county executive committee. The committee consists of The county Governor and the Deputy County Governor.


The recommendations are incorporated If the members are in favour of the bill, and if it is in conformity with the National Government legislation, then it is approved to become a by-law of the county government The structure of The County Executive Committee. The executive authority of the county is vested in the county executive committee. The committee consists of The county Governor and the Deputy County Governor. Not more than ten other Members appointed by the County Governor, with the approval of the assembly, who are not members of the assembly. If the assembly has less than thirty members, the members should be One-third of the number of members of the county assembly. The county governor and the deputy county governor are the chief executive and deputy chief executive of the county respectively. Members of a county executive committee are accountable to the county governor for the performance of their functions and exercise of their powers. The members of the county executive committee cease to hold office once the office of the county governor falls vacant. Functions of a County Executive Committee. A It implements county legislation. B It implements, within the county, national legislation. C It manages and coordinates the functions of the county administration and its departments. D It prepares proposed legislation for consideration by the county assembly. E It provides the county assembly with full and regular reports on matters relating to the county. Powers and functions of a governor in a county government. Key notes for the teacher and students- Cheloti 2012-2013 Page 88 a The Governor is the chief executive officer of the county. The Executive Branch of government, headed by the Governor, includes executive departments and advisory boards. B The Governor is the Chairman of county executive committee. C he she is in charge of implementing , within the county, national legislation to the extent that the legislation so requires; d He ensures, through the county executive committee, the implementation of county legislation. E He manages and coordinates the functions of the county administration and its departments. F He provides the county assembly with full and regular reports on matters relating to the county. G He appoints with the approval of the assembly members, members to the county executive committee. H He ensures that Members of a county executive committee perform their functions and exercise of their powers fully. I He handles on behalf of the county, all external affairs with other counties in consultation with the central government. Excluding any which have been delegated to cabinet secretaries. .


H He ensures that Members of a county executive committee perform their functions and exercise of their powers fully. I He handles on behalf of the county, all external affairs with other counties in consultation with the central government. Excluding any which have been delegated to cabinet secretaries. . J The Governor prepares and submits a budget of the county for the following fiscal year. K He sets the terms and conditions of service of persons holding or acting in public offices in the county. L By virtue of his office, the Governor serves on certain boards and special commissions in the county. The Governor chairs the Board of Public Works. Election of a county governor. The county governor is directly elected by the voters registered in the county at a general election for a term of 5 years. To be eligible for election as county governor, a person must be eligible for election as a member of the county assembly. Each candidate for election as county governor nominates a person as his her running mate to be the deputy governor. If re-elected, can serve for another final term of 5 years. Each candidate for election as county governor nominates a person as his her running mate to be the deputy governor. A County Governor can be removed from office under the following circumstances. A Gross violation of the Constitution or any other law. B When the county governor commits a crime under national or international law. C When the governor abuses office or is accused of gross misconduct. D When he she suffers from Physical or mental incapacity that hinders performance of the functions of office. Functions of a deputy governor. Key notes for the teacher and students- Cheloti 2012-2013 Page 89 a As the deputy chief executive of the county, he or she assists the governor in the management and coordination of the functions of the county administration. B He or she acts as the governor of the county when the governor is absent. C The deputy assists the governor in the supervision of work of the county executive committee. D Since he she is a member of the county executive committee, he participates in legislation by also preparing proposals for county legislation. E He assumes governorship of the county incase the governor is incapacitated or is removed from authority for various reasons. Functions and powers of a county government.


D Since he she is a member of the county executive committee, he participates in legislation by also preparing proposals for county legislation. E He assumes governorship of the county incase the governor is incapacitated or is removed from authority for various reasons. Functions and powers of a county government. A County governments have the duty to assist in promotion of agriculture by initiating development in specific areas like crop and animal husbandry, livestock sale yards, slaughterhouses control of plant and animal diseases and development of fisheries. B It provides and supervises county health services, both public health and personal health of county members. C It assists in control of environmental pollution by putting in place legislation to regulate and control air pollution, noise pollution and outdoor advertising. D It promotes cultural activities, public entertainment and public amenities ion the county by putting in place structures such as libraries, museums, sporting facilities, casinos, beaches and county parks. E It has a duty to promote and regulate education at the pre-primary, polytechnic, craft and childcare levels. F It has a duty to develop transport facilities in the county through road construction, street lighting, developing ferries and harbours and parking areas. G The county government regulates county planning and development through land survey and mapping, boundaries, housing, electricity, gas and energy regulation. H It implements specific national government policies on natural resources and environmental conservation. I It also puts in place measures to control drug abuse and access to pornography. Relationship between national and county government. A Governments at either level must exercise their powers and functions in a manner that respects the functional and institutional integrity of government at the other level. B Each of the two governments must assist, support, consult and implement the legislation of the other level of government. C Either of the two governments must liaise with government at the other level for the purpose of exchanging information, coordinating policies and administration and enhancing capacity. D Governments at each level or different level should co-operate in the performance of functions and exercise of powers. E In any dispute between governments, reasonable efforts to settle dispute should be made. F County governments rely on Procedures provided under national legislation inKey notes for the teacher and students- Cheloti 2012-2013 Page 90 settling intergovernmental disputes between them. G Parliament at national level has the role of ensuring that county governments have adequate support to enable them to perform their functions.


E In any dispute between governments, reasonable efforts to settle dispute should be made. F County governments rely on Procedures provided under national legislation inKey notes for the teacher and students- Cheloti 2012-2013 Page 90 settling intergovernmental disputes between them. G Parliament at national level has the role of ensuring that county governments have adequate support to enable them to perform their functions. H County governments must operate financial management systems that comply with any requirements prescribed by national legislation. I National government is permitted to take any measure on county government provided that Notice must be given to county government. J Where a county government is unable to perform its functions, or does not operate a financial management system that complies with national legislation requirements, the national government may intervene. Challenges facing county governments in Kenya. A County governments have inadequate funds. Some are located in areas of limited resources. This impedes provision of essential services. Some are too small to operate efficiently. B Corruption and misappropriation of funds is common in most counties. This is because those vested with the management powers do not have experience since the appointment of governors is through popular vote. C Rural urban migration is likely to generate population pressure in urban based counties like Nairobi city and Mombasa. Urban problems like mushrooming of slums, poor garbage disposal and insufficient sanitary facilities arise. D There is likely to be national government interference in the affairs and management of county legislation. This hinders free decision-making. E Election of ward members to manage ward affairs may hamper operations of the counties especially in legislation. Possible solutions to the challenges that may face county governments in Kenya. A The National governments through the Equalization Fund should be able to provide adequate financial support to County governments located in areas of limited resources. This will assist in provision of essential services. B Those counties that are too small to operate efficiently should be merged with others in terms of social service delivery. C There should be stricter vetting of candidates to vie for positions of county Governors and deputy county Governors in order the possible challenge of financial management and corruption. D Urban-based counties should be given more funding by the National Government to enable them solve urban related problems. E The National government should come up with means on how to curb Rural urban migration. This may be done through creation of employment generating opportunities in rural counties.


D Urban-based counties should be given more funding by the National Government to enable them solve urban related problems. E The National government should come up with means on how to curb Rural urban migration. This may be done through creation of employment generating opportunities in rural counties. F The county governments, especially those that are in economically viable areas should be given financial autonomy and a free-hand in decision making, by the national government. PUBLIC REVENUE AND EXPENDITURE IN KENYA. SOURCES OF PUBLIC REVENUE. Key notes for the teacher and students- Cheloti 2012-2013 Page 91 Public finance refers to revenue and expenditure of the national and county government. Principles that govern the use of public finance in Kenya. A The principle of openness and accountability. There shall be public participation in financial matters. B The public finance system should promote an equitable society, and in particular the burden of taxation should be shared fairly. C Revenue raised nationally should be shared equitably among national and county governments. D Expenditure of public finance should promote the equitable development of the country, including making special provision for marginalized groups and areas. E The burdens and benefits of the use of resources and public borrowing should be shared equitably between present and future generations. F Public money should be used in a prudent and responsible way. G There should be responsible financial management accompanied by clear fiscal reporting to ensure effective use of public funds. NATIONAL BUDGET. The national budget is a comprehensive statement that gives an estimate of public revenue, expenditure and financial plans for a given financial year for a government. Components of the national and county governments budgets in Kenya. A Estimates of revenue and expenditure, differentiating between recurrent and development expenditure. B Proposals for financing any anticipated deficit for the period to which they apply. C Proposals regarding borrowing and other forms of public liability that will increase public debt during the following year. The process of Budget preparation and implementation in Kenya. Three months before the end of each financial year, the head of each department or State organ submits estimates of revenues and expenditures for the following year to the secretary for finance. Two months before the end of each financial year, the Cabinet Secretary for finance submits to the National Assembly estimates of the revenue and expenditure of the national government for the following financial year.


The process of Budget preparation and implementation in Kenya. Three months before the end of each financial year, the head of each department or State organ submits estimates of revenues and expenditures for the following year to the secretary for finance. Two months before the end of each financial year, the Cabinet Secretary for finance submits to the National Assembly estimates of the revenue and expenditure of the national government for the following financial year. He also submits a detailed national fiscal, monetary and development plan for a period of three years prepared by him in collaboration with the Secretary responsible for planning and national development. The estimates include estimates for expenditure from the Equalization Fund. The National Assembly then considers the estimates submitted together with the estimates submitted by the Parliamentary Service Commission and the Chief Registrar of the Judiciary. Before the National Assembly considers the estimates of revenue and expenditure, a committee of the Assembly will discuss and review the estimates and make recommendations to the Assembly. Committee makes its recommendations to the National Assembly. Key notes for the teacher and students- Cheloti 2012-2013 Page 92 When the estimates have been approved by the National Assembly, there will be an Appropriation Bill, introduced into the National Assembly to authorize the withdrawal from the Consolidated Fund of the money needed for the expenditure. The Appropriation Bill will not include expenditures that are charged on the Consolidated Fund. The process of Budget preparation and implementation in a county government. Further reading about this is encouraged. Sources of public revenue for national government in Kenya. Domestic Revenue Sources. These are the taxes levied on citizens, private and public organizations, foreign investors and business people. There are two main groups of taxes; 1. Direct taxes. 2. Indirect taxes. 1. Direct taxes. Income tax These are taxes derived from people s salaries in form of income tax. 2. Indirect taxes. These are taxes levied on goods and services but with parliamentary approval. They include; a Value-added tax; an indirect sales tax paid on specific goods such as sugar, bread, petroleum products, clothes, electronic equipment and motor vehicles. B Customs duties:- there are duties on imported goods such as motor vehicles, machinery, fertilizer, sugar, wheat, electronics, luxury goods, etc. C Excise tax; this is charged on locally produced goods that are sold within the country. D Export Duty; the duty charged on locally produced goods such as textiles, coffee, tea, soda ash and pyrethrum which are exported.


B Customs duties:- there are duties on imported goods such as motor vehicles, machinery, fertilizer, sugar, wheat, electronics, luxury goods, etc. C Excise tax; this is charged on locally produced goods that are sold within the country. D Export Duty; the duty charged on locally produced goods such as textiles, coffee, tea, soda ash and pyrethrum which are exported. E Trading Licenses; f Sales Stamp Duty; on entertainment services, betting, casino and premium bonds. G Traffic Revenue tax; levied on various categories of traffic services. E.g., the Road Maintenance Levy, the driver s licence, Airport tax by air passengers. H Investment Revenue; earned from parastatal and other profit making bodies that remit profits through the treasury. I Loan interest receipts. Collection of taxes from parastatals like AFC, KTDA, KPC, NCPB and KCB. J Land Rates. K House rates. L Fees; paid in terms of timber levies, CO2 levies and mining fees. M Court Fines n Borrowing under laid down law or procedure . O Tourism fess External Revenue Sources There are two main sources of external assistance; 1. Bilateral Aid; where two friendly nations assist each other. E.g. Kenya and JapanKey notes for the teacher and students- Cheloti 2012-2013 Page 93 2. Multilateral Aid; many countries form trading blocs or global institutions like World Bank, IMF, European Union and commonwealth for this purpose. Sources of finance for county governments. A The main source of funding for many counties is their equitable share from 15 of the national budget. B Conditional and unconditional grants. Unconditional Grants are funds allocated by the national government without conditions regarding their use. Conditional grants are the funds allocated by the national government for funding of specific projects and programmes. They include; The Equalization Fund for provision of basic services like water, health services, electricity and roads in marginalized areas. The Contingencies Fund to carter for urgent and unforeseen circumstances c Counties own revenues. Counties have the power to collect property rates, impose taxes on entertainment, and impose fees and charges for services they render to people and any other tax that Parliament permits them to impose. D Borrowing, where the national government guarantees the loan or with the approval of the county assembly.


The Contingencies Fund to carter for urgent and unforeseen circumstances c Counties own revenues. Counties have the power to collect property rates, impose taxes on entertainment, and impose fees and charges for services they render to people and any other tax that Parliament permits them to impose. D Borrowing, where the national government guarantees the loan or with the approval of the county assembly. E Grants and donations Factors that determine equitable sharing of public finance. A The national interest. B Any provision that must be made in respect of the public debt and other national obligations. C The needs of the national government, determined by objective criteria. D The need to ensure that county governments are able to perform the functions allocated to them. E The fiscal capacity and efficiency of county governments. F Developmental and other needs of counties. G Economic disparities within and among counties and the need to remedy them. H The need for affirmative action in respect of disadvantaged areas and groups. I The need for economic optimization of each county and to provide incentives for each county to optimize its capacity to raise revenue. J The desirability of stable and predictable allocations of revenue. K The need for flexibility in responding to emergencies and other temporary needs. Regulations that govern imposition of taxes and charges in Kenya. A Only the national government may impose Income tax, Value-added tax, Customs duties and other duties on import and export goods; and excise tax. B An Act of Parliament may authorize the national government to impose any other tax or duty. C A county may impose property rates, entertainment taxes, and any other tax that it is authorized to impose by an Act of Parliament. D The national and county governments may impose charges for services. E The taxation and other revenue-raising powers of a county should not be exercised in a way that prejudices national economic policies, economic activities across countyKey notes for the teacher and students- Cheloti 2012-2013 Page 94 boundaries or the national mobility of goods, services, capital or labour. F No tax or licensing fee may be imposed, waived or varied except as provided by legislation. G If permitted, a public record of each waiver shall be maintained together with the reason for the waiver; and each waiver, and the reason for it, should be reported to the Auditor-General. H No law may exclude or authorize the exclusion of a State officer from payment of tax.


F No tax or licensing fee may be imposed, waived or varied except as provided by legislation. G If permitted, a public record of each waiver shall be maintained together with the reason for the waiver; and each waiver, and the reason for it, should be reported to the Auditor-General. H No law may exclude or authorize the exclusion of a State officer from payment of tax. The revenue collected by the government is deposited into the following funds; 1. Equalization Fund; This is a Fund specially established by the National government, to provide basic services including water, roads, health facilities and electricity to marginalized areas to the extent necessary to bring the quality of those services in those areas to the level generally enjoyed by the rest of the nation. 2. Consolidated Fund; this is the fund into which all the money raised or received by the national government is paid. Money set aside by parliament for specific purpose and money set aside by state organs to take care of their expenses is however not deposited in this fund. 3. Contingencies Fund; this is a fund from which advances will be made if the secretary for finance is convinced that there is an urgent matter that needs funding and for which there is no other provisions. 4. Revenue Funds; this is a fund for each county into which all the money raised or received by the county government is paid. Expenditure of Public Revenue. There are two ways in which the national government spends its revenue. 1. Capital expenditure. The money set aside in the national budget for development projects. 2. Recurrent expenditure. The money used by the government to sustain and maintain the existing facilities. How the national government spends its money under recurrent expenditure. A The government remunerates its employees through regular payment of salaries and wages. B The expenditure is also used to maintain public property throughout the country by allocating necessary funds to roads, airports, colleges, school text book provision and bridge maintenance. C The money is also used to service debts from international donor agencies and local financial institutions. D The money is also used to contribute to regional and international organizations like COMESA, AU, UN and Commonwealth. E It is used to provide grants to counties and parastatals, and bursaries to schools and colleges. F The money is also used to maintain Kenyan embassies abroad. Key notes for the teacher and students- Cheloti 2012-2013 Page 95 County government expenditure.


E It is used to provide grants to counties and parastatals, and bursaries to schools and colleges. F The money is also used to maintain Kenyan embassies abroad. Key notes for the teacher and students- Cheloti 2012-2013 Page 95 County government expenditure. County governments spend their monies in the following ways; a Provision of basic social services like water, health facilities, electricity and cemeteries. B The money from its recurrent expenditure is used to pay wages and salaries to its employees. C The counties spend their money to some extend to control air and noise pollution, and also on refuse removal and solid waste disposal. D Money is used to finance development of roads, parking facilities, ferries and street lighting, develop entertainment, sporting, trading and cultural facilities. E In repair maintenance and improvement of public facilities like roads, health facilities, markets, libraries, housing etc. F Some money is set aside as emergency utility for fire fighting services and disaster management. G The counties use their money to service the borrowed funds plus the interest accrued. H They also use money to provide early childhood education through development of nursery schools. They also develop village polytechnics and home craft training centres. Ways through which proper management of public finances by national government is ensured in Kenya. A Any national governments expenditure by state departments or state organs must be approved by parliament which acts as the public watchdog. B The controller of budget oversees the implementation of the national budget by authorizing legal withdrawals from public funds such as the equalization fund, consolidated fund and contingencies fund c The controller of budget submits to each house of parliament report on the implantation of the budget of the national government. D Where a state organ or any other public body fails to adhere to the laid down procedures of expenditure, the cabinet secretary for finance, with the approval of parliament, may stop the transfer of funds to the body. E There is constant auditing of accounts and financial records of all government and other public bodies. F Every public body has a n accounting officer who is accountable to the national assembly for the financial management of the public body. G The auditor general audits all accounts of all government and state organs. H The government has put up policies related to procurement which is supposed to be fair, transparent, competitive and cost effective. To regulate public procurement, various bodies have been set up.


G The auditor general audits all accounts of all government and state organs. H The government has put up policies related to procurement which is supposed to be fair, transparent, competitive and cost effective. To regulate public procurement, various bodies have been set up. E.g the public procurement oversight authority PPOA , the public procurement administrative review board PPARB i The government has also imposed sanctions against contractors who fail to fulfil their contractual agreements either by failing to complete jobs or by doing shoddy work. Key notes for the teacher and students- Cheloti 2012-2013 Page 96 j Sanctions are to be imposed against those persons who fail to pay their taxes, or engage in corrupt practices. K All government contracts are publicly advertised for awarding of tenders and awards. L The government established the Kenya Anti-Corruption Commission KACC in 2004 which has the function of investigating corrupt cases in a non-partisan manner. Management and expenditure of public finances in county governments. A In every county, there is established a revenue fund where all funds, including the county s own revenues, transfers from national revenues, grants and borrowed funds are consolidated. B Money from this fund is only withdrawn following specific procedures authorized by parliament or by county laws. C County governments must operate financial management systems that comply with all requirements of national legislation. D The county assembly must vote on the budget and approve expenditure by various departments of the county. E The county treasury must seek quarterly approvals from the controller of budget for withdrawal from the revenue fund based on the needs of the county. F The accounting officer of a county organ or public body is accountable to the county assembly for the financial management of the public body. G Each county has a county accountant general who maintains financial records of all the funds withdrawn from the revenue fund, and expenditure incurred. H Apart from the internal audits in every county, the auditor general audits the accounts of the county governments and submits reports to the relevant county assembly. The controller of Budget. Role of the controller of budget. A He or she oversees the implementation of the budgets of the national and county governments. B He or she authorizes withdrawals from the public funds such as the Equalization, Consolidated and Revenue Funds. C he or she submits to each house of parliament, every four months, a report on the implementation of the budgets of both national and county governmentAuditor General.


By elections in the event of resignation, death or resignation of a member of parliament. There are also local elections in which representatives of local authorities councillors are voted for are held every 4 years. The local authorities include the District Councils, London Boroughs, Metropolitan districts and Regional and island councils. In Britain, there are also euro-elections, first introduced in 1979, in which representatives to the European Union parliament are chosen.81 MPs were elected in 1979. Voter Registration. It is the local authorities that hold the responsibility of registering voters. Since 1948, a postal vote is possible for citizens who are away from their constituencies during the voting period, either on business or other reasons. The following categories of people qualify to vote in Britain; a British Citizens over the age of 18 years. B Citizens from commonwealth countries who have resided in Britain for periods stipulated by law. C Citizens of the republic of Ireland who have been residents for periods stipulated by law. The following are ineligible to vote in Britain. Key notes for the teacher and students- Cheloti 2012-2013 Page 99 a Persons of unsound mind. B Convicts detained in a prison. C Persons convicted of corrupt or illegal practices in connection with elections cannot vote for five years from the date of conviction. D Adults whose names do not appear on the register of voters. E Peers or members of the House of Lords A candidate who wishes to contest for a parliamentary seat in Britain must fulfil the following conditions; a He she must be a British citizen or a common subject or a citizen of the republic of Ireland. B He she must be of a minimum age of 21 years. C He she must be nominated by a political party or be an independent candidate. The following are disqualified from vying for a parliamentary seat in Britain. A English Scottish peers who have the right to sit in the House of Lords. B Clergy of the Church of England, or the Church of Ireland, Ministers of the church of Scotland, and Roman Catholic priests. C Aliens. D Certified Lunatics. E Undisputed bankrupts. F Convicted persons. G Persons who have committed illegal practices during elections like corruption. H Members of the armed forces. Candidates vie for 650 parliamentary seats.


G Persons who have committed illegal practices during elections like corruption. H Members of the armed forces. Candidates vie for 650 parliamentary seats. The candidates are either nominated by respective parties or stand as independent candidates and need not reside in the constituencies as long as they register as voters in that constituency. Once nomination of candidates has taken place, campaigns are allowed for two weeks before voting Each candidate appoints an election agent to manage the finances and protect the interests of the candidate during he campaign. The agent also explains the candidate s party policies and identifies party supporters within the constituency. He she familiarizes the candidate s name to prospective voters. Election officials work hand in hand with party agents during Election Day. Each candidate must deposit 500 sterling pounds with the registrar, which is returned in the event that the candidate garners over 5 of the total vote in the constituency. Elections in Britain are by plurality. Candidates who get the highest of votes win the elections. The party that secures most parliamentary seats is declared winner and is asked to form the next government. Emphasis is on number of seats not votes cast. The House of Lords members are drawn from people with high offices. E.g. bishops, distinguished scientists and artists, great sportsmen, retired judges etc Functions of Government in Britain. The British government operates around four basic institutions; a The Monarchy. B The Legislature. Key notes for the teacher and students- Cheloti 2012-2013 Page 100 c The Executive. D The Judiciary. The Monarchy. In Britain, the Monarchy is represented by the queen. The Monarch assent to all legislations. The Monarch appoints the PM and approves the cabinet Other Functions of the Monarchy. A The monarch as head of state advises government b The monarch summons, prorogues and dissolve parliament in consultation with the Prime Minister. C The Monarch gives royal assent to bills passed by parliament to become law. D Management of the country s foreign policy including enactment of treaties. E It confers honours to persons who have rendered distinguished services. For example, the peerages to become Lords or knights and will be referred to as LADY OR Sir f The Monarch approves appointment s to important state offices such as judges, senior members of the armed forces and civil service. G The monarch pardons and gives reprieve to people who have been accused of committing various offences.


E It confers honours to persons who have rendered distinguished services. For example, the peerages to become Lords or knights and will be referred to as LADY OR Sir f The Monarch approves appointment s to important state offices such as judges, senior members of the armed forces and civil service. G The monarch pardons and gives reprieve to people who have been accused of committing various offences. H The Monarch appoints Bishops and Archbishops of the Anglican Church. NB; At the beginning of each new session of parliament, the monarch addresses both Houses together in the House of Lords to mark the formal opening of parliament. In the address, the monarch outlines government proposed legislations for the coming session. Importance of the monarchy to the British people. A The presence of the monarchy helps to give some continuity to executive policy. B It inspires the head of government with a sense of responsibility and dignity. C It acts as a useful counsellor to the head of government. D It is the symbol of commonwealth unity. E It sets standards for social life. The presence of members of the royalty at the inauguration of scientific, artistic and charitable works ensures nationwide support. F The royal family pays state visits to foreign government and undertakes tours in other countries of the commonwealth, hence contributing to better understanding between Britain and other nations. The Legislature parliament. It is made up of the monarchy, House of Lords and House of commons. The following are ways through which one can gain membership to parliament in Britain; a Elections. B Nominations c Inheritance. D By Virtue of office. E.g. members of the House of Lords maintain their parliamentary seat whenever a new parliament is constituted. Parliament is a supreme institution in Britain. It passes changes or repeals laws without being vetoed by the courts of law. How parliamentary supremacy is demonstrated in Britain. A Parliament makes amends and abolishes laws. No other institution can do that. Key notes for the teacher and students- Cheloti 2012-2013 Page 101 b Branches of government operate under the laws passed by parliament. Parliament is the supreme institution in Britain and all other institutions derive their power from it. C Parliament can pass a vote of no confidence in the executive. Has powers to remove any unpopular government from office. D It approves government revenue and expenditure.


C Parliament can pass a vote of no confidence in the executive. Has powers to remove any unpopular government from office. D It approves government revenue and expenditure. It is the only institution empowered to approve government budget. E Decisions of parliament are binding to all. They cannot be overruled or nullified by a court of law. The House of Lords. Membership to The House of Lords is based on nomination by the monarch or by hereditary principle. Some membership is through holding senior positions within the Church of England Consists of 1200 members 800 of whom are heredity peers, 26 are Bishops and 21 are Lords of Appeal One can become a member of the House of Lords in the following ways; 1. Through nomination by the monarch. 2. When one holds hereditary parentage position. Normally the eldest male member of the family inherits the position. 3. Through holding some senior position in the society e.g. within the Church of England - Archbishop of Canterbury. Members of the House of Lords only receive sitting allowances. Only the Lords of Appeal receive annual salaries. Role played by the House of Lords in the British parliamentary system. A The house of lords checks the powers of the House of Commons and therefore prevents nasty legislation. Bills from the House of Commons have to go to the House of Lords for debate and approval. B It addresses non-controversial bills that the lower house has no time to address. C The house of lords holds bills from the lower hose long enough to seek public approval d The House of Lords questions ministers about the activities of government and stages debates on general issues of national policy. E It seats as a court of appeal for criminal cases. On such occasions , the court is presided over by the lord chancellor speaker of the house f It provides a forum for utilization of the talents of people who could not win a general election. These people are created peers by the queen and become members of the House of Lords. G It enhances unity in the country as newcomers are created lords by the queen and then become members of the House of Lords. H It provides continuity in operation of parliament. Old experienced peers retain their seats in the House of Lords until they die, so provide guidance to new and young politicians. House of Commons. It is the major legislative arm of the government. It comprises 650 elected members representing constituencies. The leader of the House is the P.M.


It is the major legislative arm of the government. It comprises 650 elected members representing constituencies. The leader of the House is the P.M. The chief officer is the speaker who is elected at the start of a new parliamentary session. Functions of the House of Commons. Key notes for the teacher and students- Cheloti 2012-2013 Page 102 a Discusses makes and amends laws. However, the monarchy and the house of Lords have powers to veto such laws. B Approves government revenue and expenditure. It controls finances. No taxes can be imposed without the consent of the House of Commons. C It has powers to pass a vote of No confidence in the executive Check the powers of the executive to ensure that the rule of law is maintained. D Debates on matters of national interest. E It directs government policy and keeps development programmes on track. F It is a training ground for future leaders. Factors which influence the activities of Parliament in Britain. A Members of the House of Commons must consider the moral values of the British society before making any decision. B Parliamentarians are always sensitive to public opinion because any unpopular government or party risks not being re-elected. C Local authorities are empowered to make by-laws even without consulting parliament. D Interests of the institutions under the spotlight are always taken into account before legislation is done in parliament. E.g. the Church, Universities, Farmers, trade Unions etc. E Legislation passed by one parliament can be changed by another future one. F International law is also taken into account when laws are made. NB; these are the factors that limit the parliamentary supremacy in Britain. The executive. The executive is made up of the Prime Minister, the cabinet and the civil service. The Prime Minister. Appointed by the monarch, being the leader of the political party that controls an absolute majority, He she is the Chief executive of the country. He performs the following functions; a Appoints and dismisses Cabinet ministers with the consent of the monarch. B He she recommends to the sovereign the appointment of senior civil servants such as the chief Justice, High Commissioners. C He she represents Britain in international fora. D He she controls the cabinet secretariat and oversees the execution of cabinet decisions by various departments. E He she is the leader of the party that nominates him her. F He she settles disputes between various departments. G He she is the leader of the House of Commons.


E He she is the leader of the party that nominates him her. F He she settles disputes between various departments. G He she is the leader of the House of Commons. H He she initiates both domestic and foreign policies. The Cabinet. The cabinet is made of the ministers appointed by the P.M with the approval of the monarch and nominated from the party with the majority of seats. The cabinet performs the following functions; a The cabinet ministers institute policies that guide the operations in the various departments of the ministry. Key notes for the teacher and students- Cheloti 2012-2013 Page 103 b Cabinet determines the policy to present to parliament for consideration. C Cabinet is responsible for the coordination of government activity. E.g. all ministers must implement cabinet decisions with regard to their department. The following conventions provide guidance on the operation of the cabinet; a Once a government is defeated, on a major issue or on a vote of no confidence, it is expected to resign. A government whose party is defeated in General elections is expected to resign. B The cabinet is drawn from the House of Commons and the House of Lords. C The entire cabinet comes from the same political party of majority seats except during a crisis like war. Since 1945, Britain has never embraced a coalition. D The advice offered by the cabinet must be accepted by the monarch, failure to which a crisis can occur. E All members of the cabinet take the Oath of the Privy councillors and are bound to Secrecy by this oath and the official secrets Act. F Members of the cabinet are collectively responsible for all decisions and actions as well as individually responsible of the departments they head. The Civil Service The British law stipulates the civil servants are servants of the crown. A civil servant is expected to non-partisan and to serve the government of the day without favour. Civil service staff does not change with change of government. Recruitment In the civil service is based on merit. Functions of the civil Service in Britain. A It implements ministerial policies as agreed by parliament. B It assists in formulation of policies and generation of policy proposals. C It manages government administrative machinery. D It carries out normal duties that public administration demands. Principles that characterize the British civil service. A The tradition of anonymity. Civil servants are taken to be carrying out the instructions of minister.


Principles that characterize the British civil service. A The tradition of anonymity. Civil servants are taken to be carrying out the instructions of minister. Ministers get all the credit for all good, as well as censure for all that is criticized. B The principal of civil service impartiality. Those civil services are expected to serve whichever minister is in office without partiality. Senior civil servants are not permitted to take part in national politics except voting. C Ministers make policies and civil servants execute the policies. D The tradition of assumption that it is not the task of the civil service to initiate change or take responsibility for planning future lines of social and economic development. The Judiciary. The judiciary in Britain is based on the supremacy of the law. To safeguard the rule of law, the British Judiciary has an independent court system. How judicial independence is ensured in Britain. A The salaries of judges are not open to discussion by parliament. B Since 1701, judges have always bee appointed on good behaviour until retirement. C A Judge can only be dismissed by a resolution from both houses. The structure of the British Court System. Key notes for the teacher and students- Cheloti 2012-2013 Page 104 Further reading encouraged components of the British constitution. E Statutes or acts of parliament e.g. act of union with Scotland of 1707. F Customs-the accepted traditions e.g. the first-born of the sovereign succeeds the king queen. G Law of precedence-judges applies accepted principles to new set of facts. H Custom of parliament e.g. the procedures of the two houses. I Historical documents e.g. the Magna Carta. THE USA The origin of USA dates back to 1776, when the thirteen British Colonies declared their independence from Britain. USA is a federal government, a form of representative democracy comprising a union of 50 states The adopted a new constitution in 1787 and has the following features. A It is Federal in nature. B A written constitution. C Bill of rights is contained in it. D The Supreme Court can only interpret it. E Legislature is Bi-cameral i.e. the senate the House of Representatives forming the congress two houses. F It caters for the separation of powers. G Does not provide for secession of a member state. H Federal government and individual states share power through their senators in congress i.e. in making laws.


G Does not provide for secession of a member state. H Federal government and individual states share power through their senators in congress i.e. in making laws. I The president is the head of the federal government and governors are heads of state. J It is the supreme law of the land. K Amendment can only be done through a clearly laid down procedure. The electoral process in USA. There are three types of election held in USA. A The election of the president. B Congressional elections c The state election involving election of state governors and state legislatures. All candidates vying for various seats must be American citizens and must be residents in the area they aspire to represent Age limit is 25 years for the representatives and 35 years for the president. During the lection year party primaries are held between March and May to choose presidential candidates. Party conventions are held in July to confirm winners of the primary elections. Each presidential candidate picks a running mate who becomes the vice president if the presidential candidate wins. Presidential elections are held after every 4 years on 2nd November . The election of the president is determined indirectly by the Electoral College that comprises electors appointed by each state. When a presidential candidate wins the popular vote in a state, he automatically wins all theKey notes for the teacher and students- Cheloti 2012-2013 Page 105 state s electors. Direct elections are done through popular vote of one man one vote. Senators and members of the House of Representatives are elected after every two years. Senators serve for a period of six years with a third of them elected after every 2 years. Members of the House of Representatives serve for four years and are elected on party basis. Each state elects 2 representatives to the senate making a total of 100 senators for the 50 states. Election of House of Representatives is on the basis of state population. For example, the largest state, California has 52 representatives while Wyoming, the smallest has only one representative. State governors and legislators are elected after every 4 years. Features of the US system of government. A The federal government is made up of the legislature, executive and the judiciary. B Each state within the federal government functions as a republic and enjoys equal status. C The federal government and independent states share the power of formulating and enforcing laws. D All states have their constitutions but they should not be contradicting to the Federal Constitution.


B Each state within the federal government functions as a republic and enjoys equal status. C The federal government and independent states share the power of formulating and enforcing laws. D All states have their constitutions but they should not be contradicting to the Federal Constitution. E The Supreme Court interprets the constitution. F The congress Senate and the House of Representatives is the body entrusted with legislative powers. G Senate membership is through popular vote of two members from each state for a period of six years. H The House of Representatives members are elected for a period of two years based on the size of the population. However, each state has to have at least one representative. I All treaties and appointments by the president have to be ratified by the senate. J Presidential vote must be supported by two thirds of the votes of the house. K The Supreme Court made up of the chief justice and eight associate judges heads federal judiciary. L The president appoints federal judges with the approval of the senate. M Courts in the judiciary include the court of appeal, the district courts and other special courts, all formed by the congress. N All criminal cases are handled in the courts except the cases of impeachment, which are voted by the house with the approval of the senate. O Foreign policy and Defence is the preserve of the Federal Government. Features of the state governments of U.S.A. a Each state has a governor. B Each state has a law court those carters for internal affairs. C Each state provides educational, health facilities and public amenities for the welfare of the residents. D Each state is responsible for its own development. E Each state generates its own revenue necessary for discharging its responsibility. F Each state has a bicameral legislature. Key notes for the teacher and students- Cheloti 2012-2013 Page 106 g Each state has a state police that maintains law and order. Limitations of state governments in USA. A No state is permitted to enter any treaty, alliance or confederation with other states or countries. B No state may make her own currency. C States are forbidden, unless congress approves, to levy duties on imports or exports. D States are prohibited from maintaining armed forces. E States are prohibited from entering into any agreement with foreign powers or engaging in war. How the conduct of USA president is checked a The senate approves presidential appointees to executive positions.


A He is the head of the federal government b He is the leader of the house to which he belongs. He can be either a member of the rajya sabha upper house or lok sabha.c As head of the council of ministers, the prime minister oversees the work o all the ministries.d Chairs cabinet meetings, which are normally held in the cabinet room of the prime ministers office.e Guides the president on appointment to the cabinet.f Participates in the law-making process as a member of the lok sabha. Key notes for the teacher and students- Cheloti 2012-2013 Page 108 g The prime minister has traditionally been the minister-in-charge of the department of space, atomic energy and the ministry of personnel, public governance and pensions h Recommends persons for presidential awards.functions of the Electoral Commission of India.a Prepares electoral registers b Setting dates for polling.c Establishing and operating polling station.d Allocation party symbols.e Publishing electoral report.f Accepting or rejecting nominations as per the law.g Counting the votes.h Drawing constituency boundary. What conditions must one fulfill to be elected president in India a He she must be a citizen of India.b He she must have attained the age of 35 and above.c He she should not hold any office.d He she should be qualified to be elected as a member of the house of the people. The lok sabha functions of the cabinet in the government of India.a Formulation of policy issues affecting the management of the government of India.b Defends the government policy.c Ensures that the civil servants implement government policy.d Advises the president.e Gives approval to the budget and estimates of the expenditure.f The cabinet exercises general direction and control of government departments.


E Lack of store of value for some goods which cannot be stored for a long time since they are perishable. E.g. milk, vegetables. F Lack of measures of value; a specific quantity of goods cannot be measured vis- -vis other goods. Advantages of barter system. A Poor countries without adequate foreign currencies benefit from it by being able to exchange goods they have for what they do not have. B It benefits where money is non-existent. C It avoids wastage as demand and supply tend to equate. D It promotes interaction hence good relationship, peace and stability especially amongKey notes for the teacher and students- Cheloti 2012-2013 3 traditional African societies. B Currency trade. This is a type of trade that involves the use of money. Money is an item that is mutually recognized as a medium of exchange or a measure of value. In the pre-colonial times items like Gold dust, cloth, copper rods, and iron and cowrie shells were used as a form of currency. Advantages of the use of money in trade. A Money is a medium of exchange- it is needed to obtain goods or services. B Money as a measure of value enables units of goods to be bought. A specific quantity of goods can be measured Visa- Vis other goods. C Money is a standard of deferred future payments which allows borrowing and lending to take place. D It is a store of value- one is able to defer satisfaction of a want to future times or make provision for one s want at a future date. E It is a means through which immovable property can be transferred. For example when one sells a house in one city to go and dwell in another. F Money as a unit of account is used as a calculating medium and assigning prices of goods and services. G Money is easily divisible into smaller units. For example, if a product is valued at a lower price, the buyer only pays the agreed cost. H The qualities of money and its functions overcome the difficulties of barter. Money however becomes valuable only when those using it have confidence that it will continue to retain its value during the period it is in possession. Technology today has made the use of currency easier. There is the use of Visa Card and Mobile money services like Mpesa and Airtel Money to carry out transactions.


Money however becomes valuable only when those using it have confidence that it will continue to retain its value during the period it is in possession. Technology today has made the use of currency easier. There is the use of Visa Card and Mobile money services like Mpesa and Airtel Money to carry out transactions. Difference between barter trade and trade in which currency is used as a medium of exchange. A In barter trade goods are exchanged for goods in currency trade, there is use of money as a measure of value. B In barter trade depends on the existence of a double coincidence of needs but in currency method one meets his needs by the use of money. C Items used for barter trade are bulky some and inconvenient to handle-and others perishable. Money is not bulky. Local trade. This refers to the exchange of goods between people within the same geographical area such as a village or town. Origin of local trade. This form of trade took place between groups of people who produced different goods mainly because of varying ecological conditions. It was motivated by the following factors; a Existence of surplus production e.g. where some community s harvest was excess; they could sell the excess commodity to carter for shortages elsewhere and to avoid wastage. B Differences in climate and environmental conditions which affected the type of natural resources available in various places not all needs of a particular community can be satisfied by the resources available hence trade. The kikuyu of Nyeri had to go to MathiraKey notes for the teacher and students- Cheloti 2012-2013 4 for their foodstuff requirements during drought periods. C Specialization and improved technology which always creates a need to exchange skills and goods with those who do not have. E.g trade between Mathira kikuyu cultivators and the Mukurwe-ini kikuyu ironmongers and weavers. Some even exchanged skills for money. D Population increase making man to begin to supplement his needs by trading with his neighbors. Sometimes, this trade extended even beyond the local community to the neighbouring community. The Abagusii, for example, acquired hides, milk, snake poison, and pottery items from their Luo Neighbours. Some seasonal markets emerged which enabled traders to meet and exchange goods on particular days of the week. Factors that facilitated development of local trade. A Availability of capital for investments in trade to generate more wealth. B Specialization and improved technology, e.g.


Factors that facilitated development of local trade. A Availability of capital for investments in trade to generate more wealth. B Specialization and improved technology, e.g. specialization in production, in technology and in marketing. Sometimes people even exchanged their skills for money. C Demand and supply; the growing demand for goods and services was met by increase in supply. D Enterprise; many people began to take greater risk and invested more in trade. E Peace and stability. This enabled people to interact more and hence the growth and expansion of trade. Impact of local trade a There was development of market places which specialized in certain items like pottery, iron tools and baskets. Others specialized in livestock b Local trade helped to strengthen bonds between people in the same locality. It even enhanced intermarriages and other social functions. C Local trade satisfied the requirements of the communities in terms of tools, foodstuffs, medicinal herbs etc. D Local trade enhanced acquisition of new products that a particular community did not produce. E There was an improvement of transport routes. Some markets were strategically located along transport routes. F In centralized governments like Buganda, Bunyoro-Kitara, Mali, Ghana and Wanga, the local markets that developed due to the trade became important sources of revenue for the kingdoms. In Bunyoro-Kitara for example, the Omukama had officers whose duty was to collect taxes from the market places. G Many people were brought together through trade. In Bunyoro Kitara, communities like the Alur, Acholi, Langi, Basoga, Baganda, Kumani, Iteso and Banyankole interacted through trade. NB; the greatest danger to the local traders was that they risked being attacked by hostile communities and wild animals. Regional trade. This refers to a type of trade between two distinct geographical regions Characteristics of regional trade. Key notes for the teacher and students- Cheloti 2012-2013 5 It Takes place within a bigger geographical area. It Involves intermediaries or middlemen between producers and the buyers. The trade often covers long distances to and from the market. It involves people who specialize mainly in trade as their means of livelihood. Larger Varieties of goods are involved. In regional trade there existed established markets but goods did not have to be sold on a particular market days like the case of local trade.


It involves people who specialize mainly in trade as their means of livelihood. Larger Varieties of goods are involved. In regional trade there existed established markets but goods did not have to be sold on a particular market days like the case of local trade. It also involved large volumes of trade as compared to local trade Examples of regional trade included; a The Trans-Saharan trade b The long-distance trade. The trans-Saharan trade Trans means across. This was therefore the exchange of goods across the Sahara between the peoples of North Africa Berbers and Tuaregs and the people of western Sudan the darkskinned people who occupy the region south of the Sahara The West African kingdoms of Mali, Ghana and Songhai were involved in this trade. Development of the trans-Saharan trade. 8th-16th c AD Factors that led to the development of the trans-Saharan trade. A Demand for West African good such as gold, slaves and kola nuts by the North Africans and for North African goods like horses, cotton cloth and weapons by the west Sudan people. B Existence of rich merchants in the region, such as the Berbers and Tuaregs, who provided capital for investment in the trade availability of capital. C Existence of Local trade in the western Sudan belt and among the barbers and Tuaregs provided a base for the regional trade. D Existence of the Tuaregs, who provided security to traders, guided them through the deserts and maintained some water points like the oases where the Berber merchants watered their camels and rested before continuing with their journey to and from western Sudan. E Availability of well established trade routes across the desert which made it easy for the traders to travel. F Existence of Kings in western Sudan like Mansa Musa of Mali and Askia Muhamed of Songhai who provided protection to traders, ensured peace and political stability. G Availability of pack animals like the camel and the horse which enabled easy movement through the desert. The camel could carry heavy loads and travel long distances without water. H Existence of oases which became a source of water during the travels, for the camels and the traders. I Invasion of North Africa by the Arabs and their eventual settlement led to increase in the volume of trade. J There were also vast trade goods like gold, palm oil and ivory. This stimulated the development of trans-Saharan trade. The trade goods in the trans-Saharan trade.


J There were also vast trade goods like gold, palm oil and ivory. This stimulated the development of trans-Saharan trade. The trade goods in the trans-Saharan trade. From western Sudan;Key notes for the teacher and students- Cheloti 2012-2013 6 a Gold- this was by far the most important commodity that originated from the wangara region, Bornu, Upper Senegal and upper Niger. B Slaves- they were forcefully captured and later used as soldiers and labourers in the Arab world. C Kola nuts and feathers. Monopoly of the Hausa traders from Kano region. D Hides and skins- from Hausa land for making leather clothing and shoes. E Ivory- originated from western belt mainly from cote d ivore. F Gum- from Mauritania and Senegal g Dyed cloth and pepper From the north. A Salt- from Taghaza, Taodeni, Bilma and Ghadames. B Horses- from Tripoli were on demand among the political leaders and their soldiers. C Glassware, beads, mirrors, perfumes, spices, dried fruits, needles, firearms, daggers and cowrie shells. Organization of the trans-Saharan trade. Beginning of Trans-Saharan Trade was due to the fact that North Africa was rich in the salt that West Africa lacked while West Africa was rich in gold. The Trans-Saharan trade led to an exchange of salt for gold The trade was between people of the western Sudan and Arabs from North Africa. Because of the long distance involved, the traders had to organize themselves very well. Traders travelled in large caravans of camels and traders to enhance their security. The rich traders from North Africa initiated the trade. They provided trade goods, camels and horses to middlemen who coordinated the trade. The middlemen would contact desert guides known as takshifs who also acted as desert guards. They protected the traders and guarded the oases in the Sahara .The Tuaregs also provided the traders with security and acted as interpreters. The caravans usually departed from the north after the rainy season when sandstorms would subside for smooth travel. The traders made stops at the oases to refresh themselves and let their camels drink water. They carried gifts for leaders of the communities along the route to appease them and as reciprocation for security while traveling through their kingdoms.


C Traveling under extreme weather conditions; too hot during the day and too cold at night. D Scarcity of water and food during the journeys. The traders suffered serious sickness due to such extreme weather variations. E There were constant Attacks by hostile communities who sometimes robbed them of their merchandize. F Traders were sometimes attacked by insects like scorpions and wild animals. G The traders sometimes suffered from Loss of direction due to the vastness of the desert. H Exposure to frequent sandstorms which killed many traders. I Sometimes wars between kingdoms disrupted trade. Impact of the trans-Saharan trade. Positive impact; a The trade stimulated the emergence of urban centres along the trade routes. Towns like Taghaza and Timbuktu developed due to the production of trade commodities like salt and gold respectively. B Profits from the trade stimulated the growth of strong empires as the kings levied taxes on the caravan traders. Examples of such empires include Mali, Ghana and Songhai. C Introduction of horses in the western Sudan belt led to strengthening of the state armies as horses were used by the armies to boost security in the region. D A class of wealthy traders emerged in western Sudan. These were mainly the local merchants who interacted with the merchants from North Africa. E The trade stimulated the emergence and growth of smithing technology and industry. F The trade led to the introduction of iron tools in wider areas of western Sudan. This boosted agricultural production in western Sudan and ensured food security in the area. G There was population increase in western Sudan due to increased food production as a result of better farming tools. H It also enhanced contacts between North Africa and the Sudan belt. This facilitated the spread of European goods and ideas between the peoples of the two regions. I The trade facilitated the spread of Islamic religion in the Sudan belt. For example, the Hausa traders were converted to Islam. J There was introduction of the Islamic system of education in the Sudan belt. The University of Timbuktu for example, teaching mainly Islamic syllabus, was one of the institutions that emerged as a result of the trade. Key notes for the teacher and students- Cheloti 2012-2013 8 k Sharia law was introduced in the states that accepted Islam in western Sudan. L The trade led to the introduction of the Arabic architectural designs in West Africa.


The University of Timbuktu for example, teaching mainly Islamic syllabus, was one of the institutions that emerged as a result of the trade. Key notes for the teacher and students- Cheloti 2012-2013 8 k Sharia law was introduced in the states that accepted Islam in western Sudan. L The trade led to the introduction of the Arabic architectural designs in West Africa. M The Islamic and Arabic culture-language, mode of dressing and eating mannerisms also spread to western Sudan. N The mode of transport in the region was remarkably revolutionized by the introduction of camels and horses making transport efficient. Negative impacts; a The trade increased warfare in the region as communities gained access to firearms and horses. Thousands of people lost their lives. B Many people in the western Sudan belt were captured and taken into slavery to meet the demands of the trans-Saharan traders. C The demand for ivory also led to the destruction of wildlife in western Sudan. Decline of the trans-Saharan trade. The trade reached its climax at around AD 8th c. by 15th c, the trade had declined due to the following reasons; a Exhaustion of the salt and gold minefields as well as other like ivory. This discouraged traders from coming to West Africa. B Increased political instability in the region due to so many wars of conquest created insecurity to the traders. C The desert conditions e.g. harsh weather, dangerous insects, snakes and robbers discouraged many traders from the activity. D Invasion of the region by the almorarids and the Tuaregs increased insecurity even more along the trade routes. Hence traders discontinued their involvement. E Moroccan invasion of western Sudan in the 16th century undermined the trade. F The growth of the trans-Atlantic trade attracted some of the trans-Saharan traders thus reducing the volume of commodities that were sold. G Colonization of west and North Africa by Europeans who took over the resources hence African activities were undermined. H Invasion of North Africa by the ottoman Turks created insecurity along the caravan routes leading to decline of the trade. I Anti-slave trade pressure from the British and eventual abolition of slave trade reduced trade profits. J The establishment of commercial ports on the western African coast and the use of navigable rivers by the 16th century AD rendered caravan trade unpopular as it was slow, cumbersome and risky. International trade.


I Anti-slave trade pressure from the British and eventual abolition of slave trade reduced trade profits. J The establishment of commercial ports on the western African coast and the use of navigable rivers by the 16th century AD rendered caravan trade unpopular as it was slow, cumbersome and risky. International trade. This is a type of trade that involves the exchange of goods between different countries in one continent or beyond the continent. Examples of international trade include a The Indian ocean trade b The trans-Atlantic trade. The trans-Atlantic tradeKey notes for the teacher and students- Cheloti 2012-2013 9 The trans-Atlantic trade involved Europe, Africa and the Americas thus earning it the name Triangular trade. It was also called the trans-Atlantic slave trade because it involved crossing the Atlantic and the main commodity was slaves. The trade was fueled by the technological innovations especially in Spain and Portugal which facilitated sea transport. The trade happened at a time when the Europeans were keen on expanding overseas 15th and 16th c AD for the following reasons; a. They were searching for the sea route to India and Far East to get the spices and other commodities. The Turks had blocked the land route. B. The Europeans wanted to acquire gold and other precious items that believed to be in existence in Africa. C. The Europeans wanted to revenge against the Muslims who had colonized the Iberian Peninsula between 8th c and 1491 AD. D. They were motivated by the desire to spread their civilization to the backward areas of the world. E. European countries such as Portugal and Spain also wanted to increase their geographical knowledge. Origin of the trans-Atlantic trade. The exact date when the first slave was captured and sold was 1441 AD. Young Portuguese sailor named Ahtam Goncalvez captured a man and a woman on the Western Sahara coast whom he presented to Prince Henry the Navigator, the Portuguese king, thus setting off a chain of reaction in the trade. The Portuguese built a fort on the Arguin Island on the coast of Mauritania in 1445 which was used as a base for buying slaves and Gold. The suppliers of the slaves at the fort were the Moors. The Portuguese ventured into the gold coast in search of gold in 1471. They built a fort at Elmina in 1482 The Portuguese then established trading contacts with the king of Congo who even accepted Christianity and Portuguese culture.


The suppliers of the slaves at the fort were the Moors. The Portuguese ventured into the gold coast in search of gold in 1471. They built a fort at Elmina in 1482 The Portuguese then established trading contacts with the king of Congo who even accepted Christianity and Portuguese culture. He baptized his son Afonso Bemba Nzinga By 1500AD, the Portuguese established sugar plantations in the island of Sao Tome near modern Gambia. They relied on slave labour from Gambia. Development and organization of trans-Atlantic slaves. The demand for labor in the western hemisphere stimulated a profitable three-legged trading pattern. European manufactured goods, namely cloth and metal wares, especially firearms, went to Africa where they were exchanged for slaves. The slaves were then shipped to the Caribbean and Americas from 1532 AD, where they were sold for cash or sometimes bartered for sugar or molasses. Then the ships returned to Europe loaded with American products European ports of Bristol, Liverpool and Glasgow in Britain, Bordeaux and Nantes in France, and Amsterdam in Holland were crucial in this trade. The forts that developed in West Africa due to this trade were Elmina, Lagos, Whydah, Accra, Badagri, Sekondi, Winneba, Goree and Dakar. Key notes for the teacher and students- Cheloti 2012-2013 10 In the 16th c, the Portuguese emerged as the main suppliers of slaves to Spanish colonies, having been granted special licences, asientos, by the Spanish monarchy African slaves were more preferred by Europeans because; a. They were available in large numbers. B. They were found to be cheaper to use than European labouerers and American Indians. C. They were thought to be immune to both European and tropical diseases. D. They appeared stronger and therefore suitable for manual labour. The Dutch were among the first European nations to compete the Portuguese in slave trade. For example in 1630, they wrestled the Elmina Fort from the Portuguese and captured Luanda in 1641. They were supplying slaves to new sugar plantations in the British Colony of Barbados and the French Caribbean colonies of Martinique of Guadalupe. The British and the French used merchant companies to conduct the slave trade having been motivated by the fortunes the Dutch were making. E.g, the Royal African Company was granted charter in 1672 and began taking colonies to the British colony in Jamaica.


They were supplying slaves to new sugar plantations in the British Colony of Barbados and the French Caribbean colonies of Martinique of Guadalupe. The British and the French used merchant companies to conduct the slave trade having been motivated by the fortunes the Dutch were making. E.g, the Royal African Company was granted charter in 1672 and began taking colonies to the British colony in Jamaica. The original capture of slaves was almost always violent. As European demand grew, African chieftains organized raiding parties to seize individuals from neighboring societies. Others launched wars specifically for the purpose of capturing slaves Factors that facilitated the acquisition of slaves. A. Existence of the institution of slavery in West Africa where the war captives, adulters, witches, the weak, debtors and murderers were enslaved b. Availability of firearms to precipitate warfare and capture of the conquered as slaves. C. Existence of well defined trade routes easily used by the slave merchants to access the interior slave markets. D. The great demand for slaves in the New World Latin America and North America. Ways of obtaining slaves a Selling of domestic slaves in exchange for goods like beads, guns, glass etc b Selling of criminals, debtors and social misfits in society by the local chiefs to the Arab slave traders. C Prisoners of war could be sold off. D Porters were sometimes kidnapped, transported and sold off to the Arab traders. E Raiding villages, this would begin at night with gun shots and people would scatter consequently leading to their capture. F Through inter tribal wars many Africans become destitutes and these would be captured by the slave traders. G Tax offenders were sold off by the African chiefs. H They were also captured through ambushes during hunting, travelling and gardening. I Slaves would be acquired from the main slave trade market in Zanzibar. J Other Africans are also said to have gone voluntarily in anticipation of great wonders and benefits from the new world. Following capture, slaves were force- marched to the coast to holding pens where they were oiled and fed ready for inspection, before being loaded on ships. Prices of slaves depended on sex, age and size. The slaves were bartered for guns, alcohol, gun-powder, cloth and different metals.


Following capture, slaves were force- marched to the coast to holding pens where they were oiled and fed ready for inspection, before being loaded on ships. Prices of slaves depended on sex, age and size. The slaves were bartered for guns, alcohol, gun-powder, cloth and different metals. Key notes for the teacher and students- Cheloti 2012-2013 11 Two trading systems were used; a Factory system where political authorities allowed Europeans to establish permanent coastal baracoons or fortresses where slaves were kept in bulk as they awaited shipment. This method was only used by chartered companies as t was expensive. It was also only viable in Dahomey where slaves were in large numbers. B Private trading. Sailing with vessels down the coast, and then stopping at different points to purchase slaves until there was enough cargo. The slaves were branded before loading them into the ships ready for the trans-Atlantic journey which was called the Middle Passage . The ships were filthy, hot, and crowded. By 1654, some 8,000-10,000 Africans each year were undergoing the Middle Passage. The moment of sailing is described as the most traumatic. Many Africans revolted during the middle passage in a bid to escape. For some jumping overboard was more preferable than their blood being turned into red wine, bones into gunpowder, skins, into black leather shoes and flesh -the Whiteman s meat as they believed. Factors which led to the development of the trans-Atlantic slave trade. A Increased demand for slave labour by European countries led them to West Africa where they were available in large numbers. Dangers of Middle PassageSuicideDiseaseThe mortality rate averaged between 13 and 33 percent of the slaves and the crew. If the Atlantic were to dry up it would reveal a scattered pathway of human bones marking the various routes of the Middle Passage. . Key notes for the teacher and students- Cheloti 2012-2013 12 b Greater preference for African slaves by the slave traders since they were thought to be more strong and resistant to tropical disease and could cope with stress easily. C West Africa had well defined interior routes which enabled establishment of earlier strong trade links by the Europeans. There were also vast trade goods like gold, palm oil and ivory. This stimulated the development of trans-Atlantic trade.


C West Africa had well defined interior routes which enabled establishment of earlier strong trade links by the Europeans. There were also vast trade goods like gold, palm oil and ivory. This stimulated the development of trans-Atlantic trade. D African chiefs had developed a taste for European goods like cloths, firearms and glass enabling exchange for slaves, gold ivory and palm oil. There was also existence of the institution of slavery in West African communities. E The introduction of firearms facilitated the capture of slaves and hence their increased supply. F The exploitation of minerals and establishment of plantations in the Americas pushed demand for slaves to higher levels hence trade with the region expanded. G The increased demand for raw materials to feed the growing industries in Europe led to increased demand for slaves in cotton farms in the Americas. H The rivalry between the Portuguese and the Spaniards and with the Britons over the control of slave trade pushed the trade to a higher new level. I The fact the trade was very lucrative led to its further expansion. J Improved technology which meant ability to construct greater capacity ships. This enhanced transportation of more slaves from West Africa and thus development of the trade. Impact of trans-Atlantic trade on the people of West Africa. A It caused immense suffering to many people. B It led to forced emigration of about 10 million people to the Americas between 1500 and 1888. C Many slaves died between capture and arrival to their destinations. D Depopulation occurred in areas where slaves were taken from. This led to underdevelopment since the young and productive people were taken away. E African traditional industries were destroyed by the sale of cheap manufactured goods from Europe. F There was increased conflict between communities especially where the gun was used. This led to destruction of property during the inter-community wars. G Many African communities were weakened and were left unprepared for the scramble and partition of Africa which soon followed. H It led to rise and growth of states e.g. Asante, Dahomey. I It led to founding of Liberia and Sierra Leone as settlements for slaves who were freed. J It led to changes to social roles; women became the heads of their families due to the enslavement of men. K Some African cultures spread to the Americas e.g Jazz Music and samba dancing styles of Brazil and even witchcraft. L The trade led to the rise of the mullato population.


J It led to changes to social roles; women became the heads of their families due to the enslavement of men. K Some African cultures spread to the Americas e.g Jazz Music and samba dancing styles of Brazil and even witchcraft. L The trade led to the rise of the mullato population. E.g in Senegal, where they are mainly found in Goree and Dakar, as a result of the intermingling between the European traders and the African women. M It contributed to the decline of the trans-Saharan trade and the colonization of West Africa. Economic impacts of slave trade. Key notes for the teacher and students- Cheloti 2012-2013 13 a It led to introduction of new manufactured goods in West Africa which undermined many indigenous technologies like smithing and medicine. B Africa was depleted of her vital manpower that was greatly needed in agriculture and defence. This led to economic retardation. C Destruction of African property during the slave raids. D Led to the eventual decline of the Trans Atlantic trade at its abolition. E Stimulated development of ports in West Africa and in Europe. F African leaders accumulated a lot of wealth e.g Dahomey, jaja, Asantehene. G It led to development of European economies. A number of large cities grew along the coastal ports. For example Glasgow, Bordeaux Liverpool and Nantes. H Growth of industrialization in Europe as the slave labour ensured constant flow of raw materials into the industries. I Some of the slave dealers accumulated enormous wealth. For example, the merchants like Barclays Brothers and sailing companies like Lloyds. J The trade led to the expansion of plantation farming in USA cotton and sugar plantations which relied on slave labour. Decline of the trans-Atlantic slave trade. In 1807, the British government made a decision to abolish slave trade. Factors that led to the abolition of slave trade; a Rise of humanitarians in Europe such as Christians and scholars condemned it on moral grounds. The missionaries wanted it to be stopped because they wanted good conditions for the spread of Christianity. The formation of the humanitarian movements in England aimed at stopping all kinds of cruelty including slave trade, flogging of soldiers and child labour. B Industrialization in Britain was one of the main forces behind the abolition .E.g.