Non-Tariff Measures in Kenya: A Case Study

Kenya - 30 November 2012

The term non-tariff measures (NTMs) is defined to include export restraints and production and export subsidies, or measures with similar effect, not just import restraints. In Kenya many internal processes by trade facilitation agencies have been reported to be inefficient, adding to cost of doing business and eroding Kenya’s firms competitiveness in the domestic, regional and international markets. The regulations, processes, procedures and operations of the trade regulatory agencies sometimes act as trade hindrance to domestic and intra-EAC trade. There are challenges because of many duplicative roles played by these agencies all which add to the cost of doing business and restricts the expansion of the domestic trade as well as EAC intra trade.
 
The objective of this paper is to classify NTMs according to the UNCTADs new classification method; document the NTMs in Kenya, use the survey method to analyse how these NTMs restrain trade and recommend policies that will lead to better-informed policy and foster dialogue on harmonization, streamlining, and reform, both at national and regional levels. The study found that product export/import bans and discriminatory sourcing, corrupt practices, road blocks, clearance of export good documentation on private businesses, lengthy clearance processes, arbitrary/multiple documentation, administrative levies, lengthy classification and valuation of import processes, inefficient port operations, numerous police road blocks, variable documentation requirements, road toll charges and uncompetitive port entry taxes/charges have very severe impact on business in Kenya. There is therefore need to harmonize the documentation procedures with other trading partners and to reduce the lengthy clearance procedures that end up frustrating trade instead of facilitating it.
 
Key words
Non-tariff measures, trade exports, imports, trade facilitation, COMESA, EAC

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