The native was at first regarded as a negligible economic fac tor, except as providing manual labour, but under official en couragement and the example of the natives of Uganda and Tanganyika, he became a producer of more than the food crops needed for home consumption. The chief native crops for export are maize, sim-sim, beans, ground-nuts and, in Kavarondo, cot ton. The dual policy of developing simultaneously native and white areas—as carried out in Nyasaland and Northern Rhodesia, and also in Tanganyika—was definitely adopted by the Kenya Government in 1924. It provoked criticism from a section of the whites, who considered that it conflicted with their interests. Na tive production increased, though not so rapidly as in the adjacent territories. The hides and skins and the ground nuts exported came mainly from the reserves, which cover 3o million acres. By 1928 the natives produced about 25% of the total exports, while they take a much larger proportion of the imports. The chief imports are cotton piece-goods; food, drink and tobacco (the natives take 8o% of the tobacco) ; pottery and machinery; motor cars and lorries and bicycles; the last largely used by the natives.
The sylvan resources of the country have not been properly developed and there was, at first, unwise alienation of much of the best forest lands. Great quantities of carbonate of soda are taken from the Magadi soda "lake" (the surface is solid and the soda cut away in huge blocks). There are gold deposits in the Kisii district round Lake Victoria, but the mineral resources are little known.
Practically the whole of the import and export trade of Uganda passes through Mombasa, and as there is a customs union with that protectorate the trade figures do not distinguish between Kenya and Uganda imports and exports, though on analysis they can, in the main, be ascertained. Consideration of economic con ditions in Kenya must, however, take account of Uganda, and this is true of other East African territories. They are engaged on similar enterprises; Tanganyika Territory, for example, is the chief producer of sisal and might become a competitor with Kenya for the carrying of Uganda cotton. Tanganyika, too, has areas like Kenya, suitable for white settlement, and like Uganda has cotton interests. Zanzibar is still to some extent an entrepot for the distribution of goods (though in this respect Kenya has become a competitor), and Nyasaland, if not Northern Rhodesia, is in the East African orbit. All these countries, except Zanzibar, have had, since 1922, the same currency—the British shilling be ing the standard coin; the change from rupees to sterling in Kenya, Uganda and Tanganyika indicating a new orientation.
The shilling is, however, divided into 10o cents. A general East Africa currency board is established in London; and to London all these countries turn when raising loans. Obviously, a common policy would have advantages in respect of transport, tariffs, agricultural and mineral development, and in regard to the fight against the tsetse fly and other tropical pests, also in combating leprosy, sleeping sickness and other diseases. After the World War, when Tanganyika Territory (formerly German East Africa) came under British mandate, the desire for economic co-operation became strong and was accompanied by proposals for political union (see BRITISH EAST AFRICA). As far as trade and commerce are concerned, organizations representing all the East African territories have been created. A trade commissioner, appointed by the British Government, deals with all the territories under British administration. (Consult the reports issued by the De
partment of Overseas Trade, London.) As indicating the relative position of the various countries it may be stated that in 1926, out of a total of, in round figures, £31,000,000 as the value of imports to and exports from the British administered East African territories, the share of Kenya and Uganda was L17,000,000 and that of Tanganyika nearly £7,000,000, the remainder being di vided between Zanzibar, Nyasaland and Northern Rhodesia.
Up to 1921 an ad valorem duty of 10% was imposed in Kenya on almost all imports, with varying duties on certain exports. In 1921-23 a modified protection policy was adopted, with specific duties between 10 and 5o% on certain goods, and 10 to 30% ad valorem duties on other goods. Export duties were abolished, a uniform tariff was enacted for Kenya and Uganda, which also applied to Tanganyika. Free trade was established in goods, the growth, produce or manufacture of those three countries. There was, however, no uniformity of railway charges, Tanganyika pursuing a somewhat independent policy.
Although a tendency to inflation was noticeable in Kenya after the World War, due in part to the spending of loan money upon expectations of increased purchasing power and there were periods of acute commercial depression (as in 1922-23), trade showed much elasticity. As between Kenya and Uganda, analyses of the trade figures showed that up to 1926 Kenya took the larger propor tion of the imports, and Uganda, owing to its cotton crop, supplied the larger part of the exports. Thereafter, the growth of the maize exports from Kenya began to tell, so that with a "slump" in the Uganda cotton crop, Kenya exports in 1927 exceeded those of Uganda. For 1927 the total imports for home consump tion (Kenya and Uganda combined) were £6,767,000, the British share being 44%. The domestic exports, 5o% of which went to Great Britain, were £5,597,000:— Kenya £3,086,000; Uganda £2,310,000. (By way of comparison it may be pointed out that in 1896 the Kenya exports were but £73,000 and the imports £176,000.) Imports dropped to L4,898,722 and exports for Kenya alone to in the depression year of Before the partition of Africa between European Powers a great part of the coast of East Africa belonged to the dominions of Zanzibar. That sultanate had close ties with India, and in the last quarter of the 19th century British influence was strong at the court of the seyyids or sultans. Much of the trade of the chief ports, Zanzibar, Mombasa and Bagamayo, was in the hands of British and Indian merchants. In 1877 the then ruler, Sultan Bargash, offered to (Sir) William Mackinnon (1823-93), the chairman of the British India Steam Navigation company, a lease for 7o years of all his mainland territories, including, with certain reservations, rights of sovereignty. This was the year (1877) in which H. M. Stanley completed his journey down the Congo, and by revealing the riches of Central Africa set on foot the movement for the partition of the continent. But at the time the British Foreign Office was not converted, and receiving no support from that quarter Mackinnon declined the offer of Bar gash. A few years later, when public interest was aroused, H. H. Johnston obtained concessions from chiefs in the Kilimanjaro region. This was early in 1884; at the end of the same year German agents obtained concessions in the same region. The British Government of the day placed no hindrance in the way of German acquisitions, but put forward claims of its own to the hinterland of Mombasa.