MONEY & BANKING

Introduction, Barter Trade and its Limitations
Money System and Characteristics of Money

By the end of the lesson, the learner should be able to:
Define money and banking. Explain barter trade concept. Outline merits and limitations of barter trade. Explain double coincidence of wants problem.

Brainstorming on money concepts. Role-play of barter trade scenarios. Group discussions on barter trade problems. Case study analysis of failed exchanges. Problem-solving on exchange challenges.

Real exchange items, Problem scenario cards, Case study materials, Charts
Different currencies, Genuine and sample notes, Magnifying glass, Regional currency samples

KLB Secondary Business Form 4, Pages 91-93

MONEY & BANKING

Functions of Money
Demand for Money and Supply of Money
Banking System and Development of Banking
Commercial Banks and Their Services

By the end of the lesson, the learner should be able to:
Explain all functions of money: medium of exchange, measure of value, unit of account, store of value, standard of deferred payment, transfer of immovable assets. Apply functions in practical scenarios.
Identify elements of Kenya's banking system. Explain hierarchy of banks. Trace history of banking development from goldsmith banking to modern banking. Understand banking evolution.

Practical trading exercises using money. Value comparison activities. Record keeping using money as unit. Case studies on savings and debt payments. Mock property transfer scenarios.
Mapping exercise of Kenya's banking system. Historical timeline creation of banking development. Story-telling of goldsmith banking origins. Group research on banking categories. Banking evolution discussions.

Goods for trading, Price tags, Recording sheets, Savings scenarios, Property document samples
Budget sheets, Emergency scenarios, Investment charts, Money supply statistics, Central Bank reports
Banking system charts, Historical timeline materials, Bank category lists, Banking evolution charts
Mock bank materials, Deposit slips, Transfer forms, Safety boxes, Play money, Standing order cards

KLB Secondary Business Form 4, Pages 95-96
KLB Secondary Business Form 4, Pages 99-101

MONEY & BANKING

Commercial Bank Services and Foreign Exchange
Types of Bank Accounts - Current and Savings

By the end of the lesson, the learner should be able to:
Explain foreign exchange services, advisory services, trustee services, and guarantor roles. Demonstrate how banks act as intermediaries between savers and borrowers. Calculate foreign exchange rates.

Foreign exchange rate calculations. Advisory service role-plays. Trustee service case studies. Guarantor service demonstrations. Intermediary function illustrations.

Exchange rate charts, Advisory scenario cards, Trustee examples, Guarantor forms, Intermediary flow charts
Account opening forms, Cheque books, ATM cards, Interest calculation sheets, Comparison charts

KLB Secondary Business Form 4, Pages 103-104

MONEY & BANKING

Fixed Deposit Accounts and Account Opening Requirements

By the end of the lesson, the learner should be able to:
Define fixed deposit accounts and their features. Calculate returns on fixed deposits. Identify requirements for opening all types of accounts. Practice account opening procedures.

Fixed deposit investment scenarios. Return calculation exercises. Mock account opening procedures. Document verification exercises. Form filling practice. Certificate examination.

Investment scenarios, Calculation sheets, Account forms, ID documents, Photographs, Certificate samples

KLB Secondary Business Form 4, Pages 109-111

MONEY & BANKING

Non-Banking Financial Institutions (NBFIs)
Micro-Finance, Agricultural Finance and Differences with Commercial Banks

By the end of the lesson, the learner should be able to:
Define NBFIs and their purpose. Explain Development Finance Institutions, Housing Finance Companies, SACCOs, Insurance Companies. Detail their functions and services.
Explain micro-finance and agricultural finance operations. Compare NBFIs with commercial banks in terms of services, target markets, and operations. Analyze their complementary roles.

Research on local NBFIs. SACCO membership simulation. Insurance policy analysis. Housing finance case studies. Group presentations on NBFI roles.
Micro-finance loan simulation. Agricultural project financing exercises. Comparison table creation. Case study analysis of differences. Group discussions on operational contrasts.

NBFI information sheets, SACCO materials, Insurance policies, Housing finance examples, Case study materials
Loan application forms, Agricultural projects, Comparison charts, Case studies, Analysis sheets

KLB Secondary Business Form 4, Pages 111-113

MONEY & BANKING

Central Bank Functions

By the end of the lesson, the learner should be able to:
Define Central Bank role in monetary control. Explain currency issuing, banker to banks, government banking, bank control, and clearing house functions. Demonstrate lender of last resort role.

Central Bank role-play activities. Currency management simulation. Inter-bank transaction examples. Government account simulation. Bank supervision demonstrations. Cheque clearing exercises.

Central Bank charts, Currency samples, Inter-bank forms, Government forms, Supervision checklists, Clearing examples

KLB Secondary Business Form 4, Pages 113-115

MONEY & BANKING

Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Define monetary policy and its objectives. Explain bank rate, open market operations, cash/liquidity ratio, compulsory deposits, selective credit controls, directives and moral suasion. Demonstrate how these tools control money supply.

Monetary policy simulation exercises. Interest rate effect analysis. Securities trading demonstrations. Cash ratio calculations. Credit control scenarios. Policy tool comparison activities.

Policy charts, Interest rate examples, Securities samples, Calculation sheets, Control scenarios, Comparison tables

KLB Secondary Business Form 4, Pages 115-117

MONEY & BANKING
MONEY & BANKING
PUBLIC FINANCE

Modern Banking Trends
Modern Banking Trends
Introduction to Public Finance and its Purpose

By the end of the lesson, the learner should be able to:
Analyze evolution in account types and their features. Explain computer use in banking and its benefits. Detail ATM operations and their impact on banking. Assess technological improvements in banking.
Explain mobile banking, e-banking, and M-pesa services. Detail credit facilities evolution and customer care improvements. Analyze mobile banks and Pesa Point services. Assess banking accessibility improvements.

Modern banking technology demonstration. ATM operation simulation. Computer banking examples. Account feature comparison. Technology impact discussions.
Mobile money demonstrations. E-banking simulations. Digital payment exercises. Credit application processes. Customer service role-plays. Mobile bank simulation.

ATM cards, Computer demonstrations, Modern banking examples, Technology comparison charts
Mobile phones, E-banking platforms, Digital payment examples, Credit forms, Service scenarios, Mobile bank materials
Chalkboard, textbook, exercise books, pens, local examples from students' experience.

KLB Secondary Business Form 4, Pages 117-119
KLB Secondary Business Form 4, Pages 119-121

PUBLIC FINANCE

Purpose of Public Finance - Provision of Essential Services
Purpose of Public Finance - Economic Control and Development

By the end of the lesson, the learner should be able to:
Identify essential goods and services provided by government. Explain why private sector cannot adequately provide certain services. Analyze the concept of public interest. Evaluate the importance of government intervention in service provision.

Teacher exposition of new concepts; Group work identifying public services in their locality; Discussion comparing public schools vs private schools; Students share experiences of using public facilities.

Chalkboard, textbook, exercise books, chalk, students' prior knowledge and experiences.
Chalkboard, textbook, exercise books, examples from students' local knowledge, chalk.

KLB Secondary Business Studies Form 4, Pages 124-125

PUBLIC FINANCE

Sources of Public Finance - Overview and Classification
Government Borrowing - Internal and External

By the end of the lesson, the learner should be able to:
Identify various sources of public finance. Distinguish between internal and external sources. Classify government revenue sources. Analyze the importance of diversified revenue sources.

Brainstorming session on where government gets money; Teacher exposition using chalkboard diagrams; Group work categorizing revenue sources; Students discuss challenges in tax collection.

Chalkboard, textbook, exercise books, chalk, students' observations from daily life.
Chalkboard, textbook, exercise books, chalk, basic calculator (if available), student knowledge.

KLB Secondary Business Studies Form 4, Pages 125-127

PUBLIC FINANCE

Types of Debt and Government Expenditure
Principles of Public Expenditure
Introduction to Tax and Taxation
Principles of Taxation

By the end of the lesson, the learner should be able to:
Differentiate between reproductive and dead-weight debt. Classify government expenditure into categories. Explain recurrent vs development expenditure. Define transfer payments with examples.
Define tax and taxation. Distinguish between tax and other government revenues. Explain the compulsory nature of taxation. Identify reasons for taxation by government.

Q/A review of previous lesson; Teacher uses local examples of irrigation projects vs salary payments; Group work categorizing different government spending; Students list development projects they have seen.
Teacher exposition using simple chalkboard diagrams; Discussion on difference between buying sugar and paying tax; Students discuss why everyone must pay tax; Examples from students' shopping experiences.

Chalkboard, textbook, exercise books, chalk, local examples from students' environment.
Chalkboard, textbook, exercise books, chalk, students' general knowledge from radio/conversations.
Chalkboard, textbook, exercise books, chalk, students' shopping experiences and observations.
Chalkboard, textbook, exercise books, chalk, students' market experiences and price observations.

KLB Secondary Business Studies Form 4, Pages 127-128
KLB Secondary Business Studies Form 4, Pages 129-131

PUBLIC FINANCE

Classification of Taxes - By Structure

By the end of the lesson, the learner should be able to:
Define and distinguish regressive, proportional and progressive taxes. Calculate tax under different tax structures. Analyze the impact of each tax structure on different income groups. Evaluate merits and demerits of progressive taxation.

Teacher works through mathematical examples on chalkboard; Students practice calculations in exercise books; Group work comparing effects on different income earners; Supervised practice with simple numbers.

Chalkboard, textbook, exercise books, chalk, basic arithmetic skills, simple calculation examples.

KLB Secondary Business Studies Form 4, Pages 132-135

PUBLIC FINANCE

Classification of Taxes - Direct vs Indirect

By the end of the lesson, the learner should be able to:
Distinguish between direct and indirect taxes. Explain impact and incidence of taxation. Identify examples of direct taxes (income tax, corporation tax, etc.). Analyze examples of indirect taxes (VAT, excise duty, etc.).

Teacher exposition with chalkboard examples; Discussion on taxes deducted from salaries vs taxes on goods; Students identify taxes they see in shops; Group work classifying different taxes they know.

Chalkboard, textbook, exercise books, chalk, students' knowledge of prices and salary deductions.

KLB Secondary Business Studies Form 4, Pages 135-141

PUBLIC FINANCE
INFLATION

Merits and Demerits of Direct and Indirect Taxes
Introduction to Inflation and Deflation
Consumer Price Index (CPI) Concepts

By the end of the lesson, the learner should be able to:
Analyze advantages and disadvantages of direct taxation. Evaluate merits and demerits of indirect taxation. Compare effectiveness of direct vs indirect taxes. Assess the role of both types in government revenue.
Define inflation as persistent rise in general price levels. Distinguish between inflation and deflation. Explain impact on purchasing power and money value. Analyze real-world examples of inflation.

Comparative discussion using chalkboard summary; Group debates on which tax system is better; Students discuss tax avoidance they have observed; Comprehensive review and written exercise; Topic summary preparation.
Brainstorming on price changes students have observed. Comparison of prices over different time periods. Case studies on countries experiencing inflation. Discussion on purchasing power changes with price examples.

Chalkboard, textbook, exercise books, chalk, student experiences and observations, review questions.
Price comparison charts from different years, Country inflation examples, Purchasing power calculation sheets, Real product price data
Sample consumer baskets, Base year price data, Price collection sheets, Index calculation examples, Consumer survey materials

KLB Secondary Business Studies Form 4, Pages 135-141
KLB Secondary Business Form 4, Pages 144-145

INFLATION

CPI Calculation - Simple Average Method
CPI Calculation - Weighted Average Method

By the end of the lesson, the learner should be able to:
Calculate price relatives for individual commodities. Compute Consumer Price Index using simple average method. Interpret CPI results and their meaning. Practice with multiple commodities and time periods.

Step-by-step CPI calculation exercises. Price relative computation for various goods. Simple average CPI calculation practice. Interpretation of results meaning for purchasing power. Group work on different commodity baskets.

Price data for multiple commodities, Calculation worksheets, Calculators, CPI formula charts, Practice problem sets
Family budget examples, Weight assignment sheets, Weighted calculation templates, Comparison tables, Advanced calculation problems

KLB Secondary Business Form 4, Pages 146-147

INFLATION

Types of Inflation and Demand-Pull Inflation
More Causes of Demand-Pull Inflation

By the end of the lesson, the learner should be able to:
Classify inflation by causes: demand-pull and cost-push. Define demand-pull inflation as "too much money chasing few goods." Identify causes: increased government expenditure, credit creation effects, increased incomes.

Demand-pull inflation simulation using classroom market. Analysis of government spending impact on prices. Credit creation and money supply exercises. Case studies on income increases and price effects.

Market simulation materials, Government spending examples, Money supply charts, Income increase scenarios, Demand-pull diagrams
Shortage simulation materials, Population growth data, Expectation scenario cards, Consumer expenditure charts, Supply-demand graphs

KLB Secondary Business Form 4, Pages 148-150

INFLATION

Cost-Push Inflation and Its Causes
More Cost-Push Causes and Subsidy Effects
Levels of Inflation

By the end of the lesson, the learner should be able to:
Define cost-push inflation where costs push prices upward. Identify causes: wage increases, tax increases, profit margin increases. Explain imported inflation through input cost increases.
Distinguish between moderate, galloping, and hyper-inflation. Explain characteristics and percentage ranges. Analyze historical examples of different inflation levels. Assess economic impacts of each level.

Cost-push inflation demonstrations using production scenarios. Wage-price spiral simulation exercises. Tax impact on production costs analysis. Import price increase effects on local production costs.
Classification exercises using real country data. Historical case studies: Germany 1923 hyper-inflation. Moderate inflation benefits analysis. Comparison of inflation levels and their economic effects.

Production cost scenarios, Wage-price spiral charts, Tax impact examples, Import price data, Cost-push diagrams
Manufacturing cost examples, Subsidy impact data, Profit margin scenarios, Input cost charts, Comprehensive comparison tables
Historical inflation data, Germany 1923 case study, Country comparison charts, Inflation level classification sheets

KLB Secondary Business Form 4, Pages 150-152
KLB Secondary Business Form 4, Pages 152-153

INFLATION

Positive Effects of Inflation

By the end of the lesson, the learner should be able to:
Analyze benefits for debtors paying less in real terms. Explain how sellers can earn more profits. Demonstrate motivation to work harder. Show increased production and better resource utilization.

Debtor-creditor scenario analysis with inflation impact. Seller profit calculation exercises during inflation. Work motivation case studies during inflationary periods. Resource utilization efficiency examples during inflation.

Debtor-creditor scenarios, Profit calculation sheets, Work motivation examples, Resource utilization cases, Real vs nominal value charts

KLB Secondary Business Form 4, Pages 153-154

INFLATION

Negative Effects of Inflation

By the end of the lesson, the learner should be able to:
Explain reduction in profits due to decreased sales volume. Analyze time wastage in price shopping. Demonstrate conflicts between employers and employees. Show decline in living standards.

Sales volume decline simulation during price increases. Time cost analysis of shopping around for prices. Employer-employee wage negotiation role-plays. Living standard decline calculations with fixed incomes.

Sales simulation materials, Time cost analysis sheets, Role-play scenarios, Living standard calculation examples, Wage negotiation materials

KLB Secondary Business Form 4, Pages 154-155

INFLATION

More Negative Effects and Economic Impact
Controlling Inflation - Monetary Policy Tools

By the end of the lesson, the learner should be able to:
Analyze losses to creditors and retardation of economic growth. Explain adverse effects on balance of payments. Demonstrate loss of confidence in monetary system. Show discouragement of savings.
Define monetary policy for inflation control. Explain Central Bank tools: bank rate increases, open market operations. Demonstrate cash ratio and compulsory deposits effects.

Creditor loss calculations in real terms. Economic growth impact analysis with case studies. Balance of payments deterioration examples. Monetary system confidence erosion scenarios. Savings discouragement analysis.
Monetary policy simulation with Central Bank role-play. Interest rate impact exercises on borrowing and spending. Open market operations demonstrations. Cash ratio calculation and credit impact analysis.

Creditor loss examples, Economic growth data, Balance of payments charts, Monetary confidence indicators, Savings impact studies
Central Bank simulation materials, Interest rate impact charts, Securities trading examples, Cash ratio calculation sheets

KLB Secondary Business Form 4, Pages 155-156
KLB Secondary Business Form 4, Pages 156-157

INFLATION

More Monetary Policy Tools and Fiscal Policy

By the end of the lesson, the learner should be able to:
Explain selective credit controls and directives. Detail moral suasion by Central Bank. Define fiscal policy for inflation control. Analyze government spending reduction and tax policy effects.

Credit control scenario exercises. Central Bank directive simulations. Government spending impact analysis on inflation. Tax policy effects on consumer spending and production costs.

Credit control scenarios, Directive examples, Government spending data, Tax policy impact charts, Fiscal policy simulation materials

KLB Secondary Business Form 4, Pages 156-158

INFLATION

Fiscal Policy Measures and Production Solutions

By the end of the lesson, the learner should be able to:
Explain reducing taxes on production to control cost-push inflation. Demonstrate subsidizing production effects. Show government production of scarce commodities. Analyze comprehensive fiscal policy approaches.

Production tax reduction impact analysis. Subsidy effect calculations on final prices. Government production case studies. Comprehensive fiscal policy design exercises for inflation control.

Production tax examples, Subsidy calculation sheets, Government production cases, Policy design templates, Impact analysis charts

KLB Secondary Business Form 4, Pages 157-158

INFLATION
INFLATION
ECONOMIC DEVELOPMENT AND PLANNING

Statutory Measures for Inflation Control
Export Controls and Comprehensive Control Strategies
Economic Growth and Development Concepts

By the end of the lesson, the learner should be able to:
Explain wage and salary controls to prevent cost-push inflation. Demonstrate price control mechanisms. Detail import restriction methods. Analyze hire purchase and credit term controls.
Explain export controls to prevent domestic shortages. Analyze combination of multiple control measures. Evaluate effectiveness of different approaches. Design comprehensive anti-inflation strategy.

Wage control policy analysis and effects. Price control implementation exercises. Import restriction case studies and alternatives. Credit term control simulations and consumer impact.
Export control case studies and domestic market effects. Multi-pronged control strategy design exercises. Effectiveness evaluation of historical control measures. Comprehensive strategy presentations by groups.

Wage control examples, Price control policies, Import restriction data, Credit control scenarios, Policy implementation cases
Export control examples, Multi-strategy templates, Historical effectiveness data, Strategy design sheets, Presentation materials
Statistical data on economic indicators, charts comparing developed vs developing countries, newspaper economic reports

KLB Secondary Business Form 4, Pages 158-159

ECONOMIC DEVELOPMENT AND PLANNING

Characteristics of Under-development
Factors Hindering Development

By the end of the lesson, the learner should be able to:
Identify comprehensive characteristics of under-development. Explain high poverty levels and income disparity issues. Analyze unemployment problems and subsistence sector dominance. Discuss dependence on developed countries and infrastructure challenges.

Brainstorming session on development indicators; Detailed exposition of under-development characteristics; Group discussions on poverty and unemployment statistics; Visual analysis of infrastructure differences.

Statistical data on poverty and unemployment, photos showing infrastructure gaps, case study materials on developing countries
Case studies on development barriers, charts showing technology gaps, brain drain statistics

KLB Secondary Business Studies Form 4, Pages 197-199

ECONOMIC DEVELOPMENT AND PLANNING

Political, Social and Economic Institutional Factors

By the end of the lesson, the learner should be able to:
Explain how political institutions affect development progress. Analyze social institutions and cultural barriers. Discuss economic institutions and market efficiency roles. Evaluate extended family systems and work attitude impacts.

Detailed discussion on institutional roles; Case studies on governance and development correlation; Group analysis of cultural practices affecting development; Q/A on market efficiency and entrepreneurship promotion.

Governance case studies, cultural practice examples, charts showing institutional frameworks

KLB Secondary Business Studies Form 4, Pages 202-203

ECONOMIC DEVELOPMENT AND PLANNING

Development Planning Process and Objectives
Need for Development Planning and Benefits

By the end of the lesson, the learner should be able to:
Define development planning concept and importance. Explain planning process including objective establishment. State government policy objectives for long-term development. Analyze resource identification and allocation in planning.
Give reasons why development planning is necessary. Explain appropriate resource allocation through planning. Discuss planning role in stimulating national effort. Analyze planning support for foreign aid acquisition and project evaluation.

Guided discussion on planning necessity; Exposition of systematic planning process; Group work on identifying realistic planning objectives; Analysis of Kenya's development planning experience.
Group discussions on planning benefits; Case studies on successful planning outcomes; Analysis of foreign aid effectiveness with proper planning; Q/A on project evaluation importance and duplication avoidance.

Kenya's development plan documents, planning process flowcharts, resource allocation examples
Planning success case studies, foreign aid effectiveness reports, project evaluation examples

KLB Secondary Business Studies Form 4, Pages 202-204
KLB Secondary Business Studies Form 4, Pages 203-204

ECONOMIC DEVELOPMENT AND PLANNING

Problems in Development Planning Implementation

By the end of the lesson, the learner should be able to:
State problems encountered in development planning at formulation stage. Explain implementation challenges including donor dependency. Analyze natural calamities impact on planning. Discuss political will and coordination problems in plan execution.

Exposition of planning challenges at different stages; Case studies on planning failures and successes; Group discussions on realistic vs over-ambitious planning; Analysis of natural disasters impact and political commitment importance.

Case studies on planning challenges, disaster impact reports, examples of successful and failed development projects

KLB Secondary Business Studies Form 4, Pages 204-206