The Effect Of East Africa Community Trade Block On Economic Growth In Kenya

Abstract

During the 1990s, there was a global wave of Regional Integration Arrangements. They formed the most noticeable developments in the international trading system and were claimed to be the drive towards the promotion of trade and economic growth. In Africa, the need to increase regional cooperation by creating unified economic blocs became the motivational factor to form regional integration arrangements. In East Africa, the narrative was not different as the leaders envisioned a united region with unrestricted movement of goods, services and people to create larger markets that will enhance trade and investment and lower unemployment and poverty. The current East African Community was revived in July 2000 and transformed to a Customs Union in 2005. The objective of the study was to determine the effect of the East Africa Trade Block on Kenya’s economic growth. The time series data used for analysis was the years 2004-2017. Customs Union, volume of exports and imports and Gross Domestic Product were the variables used in the study. Descriptive analysis was used to analyze information from public documents to derive conclusions from the discoveries. The study revealed that the formation of the Custom Union had a positive effect on trade and economic growth in Kenya despite several bottlenecks that the study has provided recommendations for. The findings also illustrate an increase in Kenya’s intra-EAC trade. We can therefore conclude by saying that Regional integration is beneficial to a country’s trade and economic growth what is needed is political commitment from member states.