The Arab Revolution and Performance of the Tea Exporting Firms in Kenya
Abstract
The purpose of this study is to determine the effects of political instability during the
Arab Revolution and performance of the tea exporting firms in Kenya. The research
design used was a census cross-sectional survey. The population consisted of all tea
exporting companies in Kenya who are members of EATTA. The total population was
thirty six members and out of these, twenty responded representing a 55.56% response
rate. The study used questionnaires as the main method of data collection. The primary
data collected was analyzed using descriptive statistics in form of frequency tables and
percentages. The findings were presented in form of tables and figures. The study
established that majority of tea exporting firms in Kenya have been in the tea trade for
over ten years and considered the business external environment to be dynamic. Further it
was established that total exports declined during the six year period hence most
exporting firms sought other alternative foreign markets while others stored the produce
to wait for the market to stabilize. The study also found that annual turnover and tea
prices declined for the past six years due to low levels of tea exports. This study
contributes to the empirical literature on the effects of political instability on economic
growth and industry in other countries. It also confirms that those tea exporting firms
highly dependent on the MENA countries were more vulnerable to the impact of political
violence hence; this external environment factor does have an effect to local and foreign
organizations. Following the findings from this study, it was recommended that tea
exporting firms in Kenya should diversify their markets and look for exports to more
political stable countries. Policies should also be put in place to cushion the local
industries against shocks like political instabilities around the globe.
Publisher
University of Nairobi