TABLE OF CONTENTS

DECLARATION ................................................................................................... i

APPROVAL BY SUPERVISOR .............................................................................. ii

DEDICATION .................................................................................................... iii

ACKNOWLEDGEMENT ...................................................................................... iv

TABLE OF CONTENTS ....................................................................................... v

LIST OF ACRONYMS ....................................................................................... viii

LIST OF LEGISLATIONS ..................................................................................... x

ABSTRACT ....................................................................................................... xi

CHAPTER ONE

GENERAL INTRODUCTION .......................................................................... 1

1. 1 Background ................................................................................................. 1

1.2 Statement of the problem ............................................................................. 3

1.3 Objectives of the study ................................................................................. 4

1.4 Hypothesis of the study ................................................................................ 5

1.5 Methodology ..................................................... , ........................................... 5

1. 6 Scope of the study ........................................................................................ 6

1. 7 Justification of the study .............................................................................. 7

1.8 literature review ........................................................................................... 8

1. 9 Synopsis Of Dissertation ............................................................................ 12

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CHAPTER TWO

IMPACT OF LAWS ON EAST AFRICAN COMMON MARKET .......................... 13

22. Trade and the Kenyan Economy .................................................................. 13

2.3 Adoption of the Competition Policy And Law ................................................ 14

2.4 Impact of Trade Law on East Africa Common Market ................................... 18

2.5 Impact Of Trade Laws On Kenyan Economy ................................................ 20

2. 6 Impacts of the Trade Laws on Regional Trade ... , ......................................... 23

2. 7 Transit Within The East African Community ............................................... 25

2.8 Kenya And External Tariff ........................................................................... 28

2.9 Conclusion, ................................................................................................ 30

CHAPTER THREE

KENYAN TRADE POLICY AND INVESTMENT PERFORMANCE ...................... a!

3.1 Introduction .............................................................................................. 31

3.2 Kenyan Trade Policy .................................................................................. 31

3.3 The impact of Custom Union on Kenya's Revenue Performance .................... 37

3.4 Kenya's Investment Performance ................................................................. 38

3.5 Conclusion ................................................................................................. 39

CHAPTER FOUR

PERFORMANCE OF KENYAN TARDE POLICIEAND CHALLENGES ............... 40

4.1 Introduction ............................................................................................... 40

4.2 Performance Indicators ............................................................................... 40

4.3 Trade Outcomes ......................................................................................... 42

4.4 Legislative Challenges to Trade in Kenya ..................................................... 44

4. 5 Illicit Trade and related challenges .............................................................. 45

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."'\' 4.6 Security Challenges .................................................................................... 45

4.7 Conclusion ................................................................................................. 46

CHAPTER FIVE

GENERAL CONCLUSIONS AND RECOMMENDATIONS .................................. 47

5.1 Conclusion ................................................................................................. 4 7

5. 2 General Recommendations ............................... ,. ......................................... 48

5.2.1 Supporting export diversification .............................................................. 49

5.2.2 Creation of international trading .............................................................................. 49

5.2.3 Conducive macroeconomic conditions ...................................................... 49

5.2.4 Rational tariff structure ........................................................................... 50

5.2.5 Protect infant countries ........................................................................... 50

5.2.6 Strengthen institutional capacity ............................................................. 51

5.2. 7 Increase technical understanding ............................................................. 51

' .. ,.

5.2.8 Promoting agriculture .............................................................................. 51

... 5.2.9 Increase trade facilitation ........................................................................ 52

5.2.10 Operational Custom Union .................................................................... 52

5.2.11 Harmonize policies ................................................................................ 52 .. 5.2.12 General Conclusion ............................................................................... 53

BIBLIOGRAPHY ......................................................................................... 54