Effect of East African community on cross border business performance: a case for business stakeholders in Kenyan border towns in East African Community

Abstract

The East African Community (EAC) will be enhanced by the growth of Border towns of the partner states. This study will assess the effect of the EAC on Kenyan Border towns. To achieve this, the study will be guided by the various objectives of the EAC. In tandem with the EAC, the objectives of the study will be to assess the effect of free trade, free movement of people, capital, services and freedom to establish companies and businesses in partner states. The study will be conducted in the Kenyan border towns of Busia, Malaba, Namanga and Lunga Lunga. The target population will be 700 businesses of all registered businesses at the border points. The distribution will be Busia (100), Malaba (250), Namanga (200) and Lunga Lunga (150). A random sampling technique will be used to select the samples. Data will be collected using questionnaires and face to face interviews. The same will be analyzed using both correlation and regression tools. Findings will be presented using tables, pie charts, bar charts and descriptive statistics. While reviewing the, various literatures on the effect of EAC integration on cross border business performance, it is evident that a lot of research is yet to be done to justify the effect of CBB performance. On free trade, Busse (2003) reviewed the effect of the common market in USA but highlighted that little research had been done on the effect of CBB along the border points for Kenya. On free movement of services McCormick (2007) reviewed the effect of free movement of services on ED but indicated the need to conduct similar studies for regional integration in Africa. On freedom to establish businesses Figlio (2000) reviewed the relationship between FDI and cross border businesses in UK but highlighted the need for a similar study to cover East Africa. Based on the above findings by the authors, it is evident that a lot of research is yet to be done to narrow down the existing knowledge gap.