Cause Of Poverty In Kenya

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Multinational corporations vary in terms of their activities and the number of countries they hold their activities in. They are based in both developed and developing countries. They mostly like to set up shop in developing countries because of the presence of cheap labor and availability of resources which will in turn yield them greater profits. There are more than 235 MNCs operating in Kenya, some with their headquarters in the capital city of Kenya, Nairobi. Many of these companies which do not have their headquarters in Kenya, are looking to set up their headquarters in Kenya because of its extensive and reliable airline transport, good internet speed, and high number of skilled talents. Poverty in Kenya is an area of concern because…show more content…
Some researchers regard them as the main contributors to poverty while others hold the opposite view for example, Harvard professor George C. Lodge and International Finance Corporation economist Craig Wilson in the book, “A Corporate Solution to Global Poverty: How Multinationals Can Help the Poor and Invigorate Their Own Legitimacy, “show that multinational corporations (MNCs) have contributed enormously to reducing global poverty. However, most religious leaders perceive these companies to be the cause of poverty in Kenya . Such perceptions include the point that profit-motivated multinational corporations are engaging in destructive competition and insidious plots to economically and politically manipulate the countries entire economy. 1.3 Justification of the Study Poverty eradication has overtime become an area of concern as many NGOs and various institutions are working towards eradication of poverty in various countries, especially developing countries. This study attempts to broaden the issue of poverty in Kenya and generate more ideas in search ofpoverty eradication. Further to this, the study will inform policy makers in the government to formulate more effective policies with regard to poverty reduction in Kenya, and it will also guide students and future scholars who would like to undertake more research especially on other emerging issues.…show more content…
Dependency theory argues that western world develops from the extraction of surplus from the rest of the world. Profits from colonized countries were repatriated to Europe where they contributed to material well-being of Europeans , hence explaining why some scholars hold the view that MNCs are the main causes of poverty in the in satellite

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