Analysis of Governance on Cross-border Livestock Trade Between Kenya and Somalia

Abstract

Cross-border livestock trade between African nations is becoming an important area of analysis for understanding transboundary peace and business in major trade corridors in Africa. The Kenya – Somali corridor, which is a special case in this study, speaks to the state formation processes in the context of weak, failed or fragile states. In order to understand how trade and transportation of livestock along the Kismayo – Garissa - Nairobi corridor is organized; the thesis focusses on ‘analysis of governance on cross-border livestock trade between Kenya and Somalia.’ By discussing institutional development from the pre-colonial to the post-colonial Somali-East Africa, the thesis traces trajectories of state formation and institutional dynamics that influence pastoral politics, resource governance and peace, and narrows to the political economy of the former Northern-Frontier District that later became the present North-Eastern Kenya. The broad objective of the thesis is to analyze the governance of cross-border livestock trade (CBLT) and extends to include the dynamics during devolution to inform policy reforms on the development of markets and institutions. The first objective deals with mapping to characterize actors, markets, and institutions. The second objective deals with the documentation of how formal and informal regulations have evolved along the Somali-Kenya trade corridor. The third objectives analysis the impact of devolution on livestock trade, while the last one deals with the structure conduct and performance of livestock trade between Kenya and Somalia The study utilized various research methods, including ethnographic observations, detailed narratives, in-depth interviews, and a survey questionnaire, - conducted over thirteen months. Gray literature, media reports and previous scholarships also formed the building blocks for restructuring the political economy of livestock investments between Kenya and Somalia. By drawing on mixed methods research and triangulating data from various sources, this dissertation research documents the outcome of the interactions of trade operators with the agents of regulatory authorities. It implies analysis of how Kenya and Somalia's socio-political and economic situations have shaped livestock trading along the corridor that links Kismayo through Garissa to Nairobi or Mombasa, especially after economic migrations out of Somalia from 1991. The findings show that cross-border trade is influenced by geopolitics, ecological status, and the nature of the regulatory environment through which goods, services, and finances travel daily. For xiv example, the cross-border livestock trade (CBLT) between Kenya and Somalia; i) contributes to the livelihoods of borderland communities and revenues to the County governments, ii) reveals the connection of borders to major cities, iii) the emergence or erosion of formal or informal practices, and finally iv) the connection of domestic hubs to the export markets through globalized value chains. The findings also show how various actors respond to political, economic and ecological risks and uncertainties of fragile borders. Analysis of cross-border trade also shows how the authority of the central governments is challenged at the margins of the state in terms of extending authority over the whole of their geographical territories. This study adds knowledge to the behavior of the Somalis economy after the Somalia state collapse of the early 1990s, especially the resilience and the adaptive capacity of entrepreneurs to the regulatory environment at the Somalia hinterlands. It is the first dissertation research undertaken in north-eastern Kenya, which compares the behavior of livestock markets before and after the decentralization of power and resources in Kenya. Despite disillusionment in Barre’s regime, it is shown that Somali’s investment that shifted to Kenya is flourishing and contributing to state revenues. Entrepreneurs are pursuing several strategies to ensure the business continues on a daily basis. The organic forms of governance systems that emerged after the state collapse were transferred to Kenya and manifested in how entrepreneurs cooperate with compliance and security agencies for informally imported goods to access formal markets. This study adds knowledge to the behavior of the Somalis economy after the Somalia state collapse of the early 1990s, especially the resilience and the adaptive capacity of entrepreneurs to the regulatory environment at the Somalia hinterlands. It is the first dissertation research undertaken in north-eastern Kenya, which compares the behavior of livestock markets before and after the decentralization of power and resources in Kenya. Despite disillusionment in Barre’s regime, it is shown that Somali’s investment that shifted to Kenya is flourishing and contributing to state revenues. Entrepreneurs are pursuing several strategies to ensure the business continues on a daily basis. The organic forms of governance systems that emerged after the state collapse were transferred to Kenya and manifested in how entrepreneurs cooperate with compliance and security agencies for informally imported goods to access formal markets. xv KEYWORDS: Cross-border trade, Livestock markets, Institutions, North-eastern Kenya, Southern Somalia