Export Promotion Programmes: Perceived Effectiveness of Export Promotion Council of Kenya

Abstract

International trade has increased over the last few decades as a result of increased international econorruc integration. Many countries have developed export promotion programmes to assist firms in their nations become competitive in the global market. Studies on export promotion programmes indicate that the programmes have a positive impact on export sales. Export promotion programmes can however fail where the programmes do not address the needs of exporters or the exporters are not aware of the programmes. In Kenya, the Export Promotion Council is responsible for promoting exports from Kenya, and coordinating export promotion activities by other export promotion organisations. Despite the export promotion efforts by the government, there has been a slow growth in exports and low level of registration of firms with the Export Promotion Council. This research sought to establish whether firms in Kenya perceive the promotion activities by Export Promotion Council as effective in promoting their exports. The results of the research indicate that most the firms do not perceive most of the activities by the Council as adequate to promote exports from Kenya, and efforts made by the Export Promotion Council to create awareness of its activities are not adequate as most of the firms become aware of the activities through their trade associations. In regard to other export promotion programmes in Kenya, it was found that there is a high level of awareness of the programmes but the usage is low. In regard to other assistance that the exporters require from the government, the exporters recommended that the government simplifies the export documentation and export processes, and reduce duty on inputs. The firms also recommended more representation of their needs at the regional economic groupings. It is recommended that the Export Promotion Council put more effort in creating awareness of its activities and in addressing the needs of exporters. The government should also create awareness of the benefits available under other export promotion programmes to encourage usage. Export documents and process should be simplified and duties on inputs lowered to make Kenyan products competitive. Further research is suggested on the perceived effectiveness of the Export Promotion Council activities to confirm finding of this research, and on other export promotion programmes.