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EXPORTING TO THE PTA:
CONSTRAINTS THAT KENYAN FIRMS FACE
by
Dorcas
erre
A Management Research Project Submitted in Partial Fulfillment
of the Requirements for the Degree of Masters Of Business and
Administration
July, 1993.
1/
ABSTRACT
The Lagos Plan of Action (LPA) of 1980 demonstrated
the Commitment
of African
Heads of States to reverse Africa's economic decline through collective self-reliance.
The PT A for Eastern and Southern African States is one of the economic integrations in
Africa that resulted from that commitment.
It was expected that with the inception of the PTA,
trade between the Eastern and Southern African States would increase.
This has not been the
case.
Kenya's volume of exports to the PTA sub-region is not significantly different from what
it was before the PT A became operational.
It was the aim of this study therefore to find out the problems that face Kenyan firms
exporting to the PT A market, thereby making it difficult for them to increase their exports to
the sub-region.
The study found that the problems the exporters are facing are beyond their control.
.
Some of the problems are under the control of the government,
while there are others which
even the government cannot do much about.
Those that are under the control of the government
procedures,
inadequate
or delayed export compensation,
exchange rate fluctuations,
are; cumbersome
foreign exchange
documentation
availability
and
and inadequate travel allowance.
Those that are beyond the government's
problems within the sub-region,
control are; transport and communications
lack of communication
by fellow member states and buyers'
inability to obtain import licenses and foreign exchange from their governments.
The study shows that there is a lot that can be done by relevant authorities in the country
to assist Kenyan firms to increase their exports to the PT A sub-region.
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