Stakeholders Perspectives of Developments and Strategies for Addressing Challenges Along the Northern Corridor in East Africa

Abstract

The Northern Corridor is fundamental to the logistics of the EAC region. Logistics has been defined as: the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory (and the related information flows) through the organization and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfillment of orders (Christopher, 1992). The study sought to find out the factors are hindering the growth of business along the northern corridor. To achieve this, the study was guided by two objectives which include: To determine the developments along the Northern Corridor and; to establish stakeholders' perspectives of strategies for improving the Northern Corridor.This research adopted a descriptive survey design which sought seek to identify the challenges affecting the Northern Corridor and stakeholder perspectives on the solutions suggested so as to address the aforementioned challenges. The population in this study comprised of 190 organizations that are members of the East African Business Council. The sample comprised all Kenyan business and trade promotion bodies that are members of EABC; they are 16 in total. The study utilized primary data collected through questionnaires. The data was analyzed using descriptive measures of central tendencies (mean). Analysis also utilized frequency distribution and percentages then was presented in the form of tables and graphs. Most of the organizations had business plans in place to allow adjustments with changes in the environment. With regard to challenges and proposed solutions, the study findings established that high interest rates, dilapidated infrastructure, government regulations/bureaucracy, power outages and weakening of the Kenya Shilling had affected the businesses to a great while the effect of Inflation and internet down time was. The study established that the biggest contributor to the cost of doing business in Kenya was the infrastructural inefficiencies followed by OoK regulations/taxation the study findings further established that all the organization s knew about the Northern Corridor. The study findings concludes that dilapidated infrastructure, corruption and traffic jams hinder the businesses along the Northern Corridor to a great extent as while many police road blocks, Many stops due to number of weighbridges and inconsistent weight limit regulations hindered the businesses to a moderate extent. The study further concludes that delays due to multiple clearing sites, customs inefficiencies and excessive bureaucracy while exporting and importing cargo affect the businesses to a great extent while the effect of traffic jams, unexpected tariffs & high port and manual systems is moderate in addition, the study concludes that upgrading of highways to bitumen standards would resolve some of the highlighted problems to a great. This study recommends that the policy makers should enact policies that do away with these limiting hindrances. Policy makers should come up with policies that effectively fight corruption, and improve infrastructure so as to aid in reducing traffic jams. This study recommends that further studies be done on the effectiveness of the existing