Trading frameworks between Kenya and china and their impact on Kenya's manufacturing sector (2000-2015)

Abstract

The aim of this study was to investigate the trading frameworks between Kenya and China and how they impact Kenya‟s manufacturing sector. Specifically, the study sought to: investigate how the trading frameworks between Kenya and China influence growth in Kenya's manufacturing sector; investigate how the type of commodity products traded between Kenya and China influence Kenya‟s manufacturing sector; and assess how the nature of trade balance between Kenya and China influence Kenya‟s manufacturing sector. A qualitative research data was used to collect secondary data from Kenya National Bureau of Statistics, Ministry of Industry Trade and Cooperatives, Kenya Revenue Authority – Customs, Kenya Association of Manufacturers (KAM) Export Promotion Centre and Investment Promotion Centre. In-depth open-ended interviews were used as the methods for data collection. Data was analysed using content analysis. The study revealed that the multilateral, regional integration and bilateral trade arrangements currently define the space that Kenya‟s international trade enjoys. The study found that the accessibility of Chinese products going at competitive prices has been a welcome development for many consumers who find them reasonably priced consequently offering a source of relief for numerous Kenyans who are keen to make a saving. The study recommends the use of negotiations as an important way of engaging in bilateral trade agreements that can open the sphere of Kenya‟s market and create opportunity for production for foreign markets including China. Kenya‟s current trade into foreign markets has generally been low, with huge unexploited potential in several sectors. The study recommends the need for promotion of investments aimed at exploiting Kenya‟s trade potential in the domestic and international market.