Export Competitiveness of Selected Agricultural Products in Kenya

Abstract

This study used reports from various bodies to determine the competitiveness of some selected agricultural products between Kenya and other East African Community countries. Agriculture is an important sector in Kenya and the greater East African Community organization as it earns the country foreign exchange through exports. The sector possess considerable potential, and carrying out a competitive study would greatly inform the country’s efforts and policy making processes. The methods used were Market Share Index, Vollrath’s Relative Trade Advantage Indices, and Balassa’s Revealed Comparative Advantage Index. The various countries were compared using calculated indices and ranked accordingly based on their scores and market share percentages. Consequently, Kenya had a competitive advantage and dominated the international markets in tea and crude materials, whereas most East Africa Community member states had a strong comparative advantage in coffee. Generally, to stimulate the agricultural sector and diversify agricultural exports, the Kenyan government and private sector must increase high-level investments in agribusiness and transition from exporting raw materials to value-added products. Developing standard agricultural trade policies would benefit all East African Community member states, which is consistent with their goals.