The Arab Revolution and Performance of the Tea Exporting Firms in Kenya

Abstract

The purpose of this study is to determine the effects of political instability during the Arab Revolution and performance of the tea exporting firms in Kenya. The research design used was a census cross-sectional survey. The population consisted of all tea exporting companies in Kenya who are members of EATTA. The total population was thirty six members and out of these, twenty responded representing a 55.56% response rate. The study used questionnaires as the main method of data collection. The primary data collected was analyzed using descriptive statistics in form of frequency tables and percentages. The findings were presented in form of tables and figures. The study established that majority of tea exporting firms in Kenya have been in the tea trade for over ten years and considered the business external environment to be dynamic. Further it was established that total exports declined during the six year period hence most exporting firms sought other alternative foreign markets while others stored the produce to wait for the market to stabilize. The study also found that annual turnover and tea prices declined for the past six years due to low levels of tea exports. This study contributes to the empirical literature on the effects of political instability on economic growth and industry in other countries. It also confirms that those tea exporting firms highly dependent on the MENA countries were more vulnerable to the impact of political violence hence; this external environment factor does have an effect to local and foreign organizations. Following the findings from this study, it was recommended that tea exporting firms in Kenya should diversify their markets and look for exports to more political stable countries. Policies should also be put in place to cushion the local industries against shocks like political instabilities around the globe.