The Impact Of Economic Integration On The Sugar Industry In Kenya: A Case Study Of Comesa

Abstract

This study sought to examine the relevance of economic integration in relation to transforming the sugar sector in Kenya. It sought to examine the impact of economic integration on the sugar industry in Kenya. The study will lay emphasis on how economic nationalism policies within the sugar sector in COMESA have affected the sugar industry in Kenya, and its effects on relations with other COMESA member states. The overall objective of this study is to find out the impact of economic integration on the sugar industry in Kenya. The study sought to find out the effects of sugar policies on the sugar industry in Kenya. For this objective to be achieved, the study sought to address and evaluate the role of nationalism policies in the sugar industry, determine COMESA member states reaction to Kenya‟s nationalism policies on the process of integration. The study will assert that despite Neoliberalism calls for global freer trade, nationalism policies to shield some infant industries is actually a necessary and beneficial undertaking by some states. The study is exploratory in nature using both qualitative and quantitative methods. Through interviews with key stakeholders and informants involved in policy formulation in COMESA, interviews from the Kenya Sugar Directorate and from academia. The hypotheses in the study revealed that sugar policies in COMESA have impacted negatively on the growth of the sugar industry in Kenya. The study showed that protectionism policies adopted by Kenya through safeguard measures in COMESA have not assisted the growth of the sugar industry in Kenya. The policies have left the sector riddled with bureaucracy and a few protected monopolists that have rendered the sector with rent seeking hence leading to the collapse of public sugar companies and leaving the sector to a few private monopolist investors. The study was able to annul the view that Kenya‟s nationalism policies had no negative effects on its relations with COMESA member states. The finding in the study was that states like Zambia, Uganda and Southern Sudan drew various reactions from member states. The finding in the study was that states like southern Sudan and Uganda found it to be interfering with their national interests. The study has also proven that safeguard measures has halted the regional integration process with Tanzania dismembering itself from COMESA integration bloc.