An Analysis of the Impact of Kenya's Protectionist Laws on the Implementation of the East African Community (EAC) Common Market Protocol
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Date
2023
Authors
Barasa, Masika Benjamin
Mulu, Francis
Kakai, Pius
Journal Title
Journal ISSN
Volume Title
Publisher
JAIS
Abstract
Kenya, Burundi, Tanzania, Rwanda, Uganda, and South Sudan make up the East African
Community (EAC), a regional economic union. Barriers to trade and investment within the
EAC region were reduced by the signing of the Common Market Protocol (CMP) in 2010.
Kenya and other EAC member nations have enacted protectionist policies that have
hampered the CMP's full fulfillment. The term "protectionism" is used to describe measures
taken to shield indigenous sectors from international competition by limiting trade and
foreign direct investment. To shield its domestic sectors from international competition,
Kenya has adopted protectionist policies similar to those of many other emerging nations.
Import licensing restrictions and tariffs are two examples of protectionist policies.
Unfortunate events have led to unforeseen implications for the region's economy, despite the
region's best intentions. The region has seen a decline in foreign direct investment (FDI)
because of protectionist policies that have raised trade barriers and stifled competitiveness.
Kenya's restrictive trade policies have so prevented the full implementation of the EAC CMP.
The purpose of this research was to analyze how Kenya's trade barriers have affected the
progress of the EAC CMP. The results of the research shed light on how protectionist policies
have impacted regional efforts to integrate their economies, such as company
competitiveness, trade flows, and investment. Policymakers and other interested parties in the
EAC region can use the study's findings to further economic integration and boost the
region's competitiveness. In this study, an examination on how Kenya's protectionist
legislation has affected the progress of the EAC CMP was undertaken. The purpose of this
research was to analyze the impact that Kenya's protectionist policies have had on the
implementation of the EAC CMP, which was established to facilitate the free flow of goods,
services, capital, and people within the EAC. The study used a qualitative research approach,
collecting information through document analysis and interviews with key participants in
Kenya's commercial and industrial sectors. Using text analysis, this study provided light on
the ways in which the protectionist policies of Kenya impact regional business
competitiveness, trade, and investment. At the completion of the research, it was eminent that
the high tariffs, non-tariff impediments, and import licensing procedures that enhance the cost
of doing business are less competitive than those in other regions and Kenya can better
integrate the country's economic protectionist policies with those of the EAC CMP. The study
recommends that a modification of protectionist policies so that they are consistent with the
goals of the EAC CMP. Tariffs and non-tariff barriers should be lowered, and import
licensing made easier and encouraging free trade. Moreover, the EAC member states to create
a dispute resolution body to address challenges on regional economic integration. In order for
SMEs to participate in regional markets, the study suggests that EAC member states prioritize
capacity building for SMEs.
Description
Article
Keywords
Protectionist Laws, East African Community, Common Market Protocol
Citation
Masika, B. B., Mulu, F., & Kakai, P. (2023). An Analysis of the Impact of Kenya's Protectionist Laws on the Implementation of the East African Community (EAC) Common Market Protocol. Journal of African Interdisciplinary Studies, 7(5), 5-14.