The strategic implications of East African regional integration to small and medium enterprises in Kisumu county, Kenya
Abstract
Regional integration is defined broadly as the association of states or nations that lie in a
common geographical area on the globe, to safeguard their economic and trade interests as
a bloc, usually through reduction of trade barriers. The key rationale behind regional
integration arrangements is to create large investment areas and enlargement of markets.
This is intended to boost trade and investment and hence economic growth. Kenya has
continued to play an increasingly significant role in the inception and growth of regional
trading blocs in the region, and a key object of this participation would be the expected
benefit to traders, investors and other stakeholders in its economy. Small and Medium size
enterprises constitute a major sector in the economies of most nations, and Kenya is no
exception. Their progress must be considered in decision and policy because a healthy
SME sector guarantees progressive economic growth for any nation. The small and
medium size organisations and the policy makers will find it obligatory to follow closely
or even predict the developments in this sphere and adopt strategies to reap gains from the
arising opportunities while addressing any exposure therefrom. Timely response is critical
to avoid adverse effects or missed opportunities. This study sought to identify the strategic
implications that are faced by small and medium enterprises resultant from the nation’s
participation in regional integration initiatives. The research established that the SMEs
studied have actually accrued benefit from the nation’s integration efforts. They have
gained through broader opportunities, reduced red tape in business, lower costs and hence
profits. The only downside noted for traders was increased competition. Regional
Integration is therefore beneficial for business. It should be supported and progressed
deeper and wider for greater economic benefit. The researcher recommends further
research in other business sectors and regions to confirm wider applicability of the
observed result.
Publisher
University of Nairobi