Exporting to the PTA: Constraints that Kenyan firms face
MetadataShow full item record
The Lagos Plan of Action (LPA) of 1980 demonstrated the Commitment of African Heads of States to reverse Africa's economic decline through collective self-reliance. The PTA for Eastern and Southern African States is one of the economic integrations in Africa that resulted from that commitment. It was expected that with the inception of the PTA, trade between the Eastern and Southern African States would increase. This has not been the case. Kenya's volume of exports to the PTA sub-region is not significantly different from what it was before the PTA became operational. It was the aim of this study therefore to find out the problems that face Kenyan firms exporting to the PTA market, thereby making it difficult for them to increase their exports to the sub-region. The study found that the problems the exporters are facing are beyond their control. Some of the problems are under the control of the government, while there are others which even the government cannot do much about. Those that are under the control of the government are; cumbersome documentation procedures, inadequate or delayed export compensation, foreign exchange availability and exchange rate fluctuations, and inadequate travel allowance. Those that are beyond the government's control are; transport and communications problems within the sub-region, lack of communication by fellow member states and buyers' inability to obtain import licenses and foreign exchange from their governments. The study shows that there is a lot that can be done by relevant authorities in the country to assist Kenyan firms to increase their exports to the PTA sub-region.