Materials for Production — Subtopic: Economic resources

These notes explain what economic resources are and how people in Kenya use them to make goods and services. The language is simple for age 12.

What are economic resources? 🌍

Economic resources (also called factors of production) are the things we need to make goods and services. They include natural things, people who work, tools and machines, money, and new ideas.

Main types of economic resources

  • Land / Natural resources 🌾
    Things from nature used in production: soil, forests, water, minerals.
    Kenyan examples: tea and coffee farms in Kericho and Kiambu, fish from Lake Victoria, minerals like soda ash from Lake Magadi, arable land in the Rift Valley.
  • Labour / Human resources 👩‍🌾👨‍🏭
    People who work: farmers, teachers, factory workers, carpenters.
    Kenyan examples: small-scale tea pluckers, boda‑boda riders delivering goods, artisans in markets, teachers in local schools.
  • Capital goods / Physical capital 🛠️
    Tools, machines, buildings and equipment used to produce other goods.
    Kenyan examples: tractors on large farms, jikos (cooking stoves) made by artisans, factories in Nairobi, fishing boats on Lake Victoria.
  • Financial resources / Money 💰
    Money is needed to buy seeds, machines, pay workers and start businesses.
    Kenyan examples: savings from SACCOs, mobile money (MPESA) payments, loans from banks and microfinance.
  • Entrepreneurship & Technology 💡
    People who organise the other resources and ideas that make production better.
    Kenyan examples: young tech entrepreneurs in Nairobi, farmers using drip irrigation to save water, people selling produce online.

Why these resources matter

  • They help make the goods we need, like food, clothes and houses.
  • When used well, they create jobs and incomes for families in Kenya.
  • Some resources are limited (scarce), so people must choose how to use them wisely.
Important idea: Scarcity and choices

Earth’s resources are limited. If a farmer uses more land to grow maize, they cannot use the same land for tea. This forces choices and trade-offs.

How to look after economic resources (simple steps)

  • Conserve soil and water: practice terracing and water harvesting on farms.
  • Train people: schools and apprenticeships make better skilled workers.
  • Use tools and machines properly and fix them when broken.
  • Save money and borrow carefully (use SACCOs and trusted lenders).
  • Adopt smart ideas: use technology to improve production and reduce waste.

Quick classroom activity (5–10 mins)

Match each example to the correct resource. Write “Land”, “Labour”, “Capital”, “Money” or “Entrepreneurship”.

  1. Tea fields in Kericho: ________
  2. Person who cleans and packs tea leaves: ________
  3. Tractor used to plough a farm: ________
  4. Loan from a SACCO to buy seeds: ________
  5. A young person starting a juice business using mangoes: ________
Answers (check after trying):
1. Land • 2. Labour • 3. Capital • 4. Money • 5. Entrepreneurship

Key words

  • Resources: things used to make goods and services.
  • Scarcity: not enough resources for everything people want.
  • Capital: tools and machines used in production.
  • Entrepreneur: a person who starts and runs a business.
Final thought

In Kenya, using our land, people and tools well helps families earn money, keeps food on the table and builds a better future. Always think: what resources do I have, and how can I use them carefully?


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