The effects of the Common Market for Eastern and Southern Africa (COMESA) on the export of manufactured products from Kenya: The case of the agro-chemicals industry
Abstract
Kenya and the majority of the members of the Common Market for Eastern and Southern
Africa (COMESA) are basically agricultural economies. They have come together to enhance
the standard of living of the people of the region, and one of the key ways of doing this is to
increase economic activity by cross-border trade. This research project looked at agriculture
and trade, and specifically at chemicals needed in agriculture and their exchange across
Kenya's borders with other COMESA countries. The use of agro-chemicals reflects
reasonable trends of modernizing farm practice that with time may lead to increased food
security in the member states. Agro-chemicals are associated with modernization in
agriculture and thus higher standards of living for the peoples using them. The year 1994 was
taken as the base year because under COMESA rules, trade barriers were removed during
that year. Trade barriers are known to hinder cross-border trade among nations, as was the
case before 1994 for Kenya with COMESA.
The objective of the study was to determine the impact of the creation of COMESA on trade
volumes over an eight-year period after the removal of trade barriers on Kenya products in
1994. Fungicide exports to Uganda, Tanzania and Sudan in 1996, for example, increased in
volume by over 19,000% while value increased by over 1,689%. In general, the volume of
trade increased sharply and tremendously the first three years after the removal of trade
barriers, and there was a very sharp rise in the value of exports of agro-chemicals to
COMESA between 1994 and 1996.
Primary data were collected using a questionnaire to construct a profile of the exporting
companies. Secondary data were analysed using descriptive statistics. The changes were
presented in percentages, and absolute terms if available.
In conclusion, the study found that the removal of trade barriers with the inception of
COMESA has greatly increased export volumes from Kenya. Exports of agro-chemicals
increased by multiples of hundreds and thousands of percentages between the base year.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences