Factors influencing Kenya's full participation in COMESA: A perception by Kenya association of manufacturers (KAM) members

Abstract

Kenya's economic performance in the first decade after independence was impressive with average GDP of 6.6% per year (Kenya Economic Survey, 2002). However, in the following three decades, poor fiscal and monetary policy, external and internal shocks and political events resulted in the worst economic performance in the short history of the country (Encyclopaedia Britannica, 2007). However, since 2002 there has been an upward trend in Kenya's economy. It is important, ,therefore, to state that trading with other countries (international trade) both within the region and beyond plays a vital role in Kenya's economy (Central Bureau a/Statistics, Nairobi, 25th May, 2006). Over the years a number of countries in the world have been positioning themselves in the global market through economic/regional integrations (Fatemi, 2000). Encouraged by the success of the European Community (EC), many countries have banded together into regional groupings, hoping that this will help improve their economic performance both as individual countries and as a region (Keegan, 1984: 143). Kenya is a member of a number of economic groupings in the region. These are the East African Community (EAC), Common Market for Eastern & Southern Africa (COMESA), Inter- Governmental Authority on Development (lGAD) among others. But even though various studies shows that there are a lot of benefits for Kenya as a member of a regional body like COMESA there are still hurdles facing member countries in integrating into this regional body. The economic performance of COMESA countries has been dismal averaging only 3.2 per cent a year since 1960 (Muuka et ai, 1998). Various factors have been alluded to this poor performance. These are economic, political and social among others. This study has therefore focused to find out the factors influencing Kenya's full participation in COMESA.