Effects of the East African community trade integration on the performance of logistics firms in Mombasa county, Kenya

Abstract

The study evaluates the effects of the East Africa Community trade integration on the performance of logistics firms in Mombasa County, Kenya. The major postulation is that regional integration leads to economic growth and development. It focuses on the main aspects of the integration that is the economic growth and development, trade and investment. The study was guided by a review of relevant literature and informed by key theories on economic integration. The study adopted a survey research design. The theoretical aspects of regional integration were borrowed from the functionalism theory and the customs union theory. The findings reveal that the East African Community integration has promoted trade creation as all the partner countries and their respective business organizations have experienced economic growth due to the integration process. However, the extent to which partner states would benefit from integration is dependent upon their levels of economic development. It was further revealed that there were weak institutions that lack the mandate to enforce and implement agreements; this is due to the reluctance by the partner states to sacrifice their sovereignty. Further insecurity and instability in the region creates an environment not conductive for investors, disputes and tension between communities further slows the integration process. The study recommends that there is need for greater focus on civic education for the citizens of the five states in the EAC and a thorough understanding of how the EAC works and the various stages the integration was move into and the key result areas expected. The study recommends policy harmonization and coordination, greater stakeholder involvement of the member states in matters of economic trade integration.