An Analysis on the impact of the import liberalization on the sugar industry in Kenya

Abstract

The study examined the impact of the sugar liberalization in Kenya and the marketing strategies used by sugar companies before and after the sugar liberalization, The main objective of the study was to establish the economic strategies sugar firms adopted to react to liberalization. It further explored the main economic differences between the preand post liberalization regimes in the sugar industry in Kenya and the effects in sugar production. consumption and trade. The study was exploratory and the main instrument was a structured questionnaire. There was also a qualitative dimension to my research as it sought to understand the ways the post and pre liberalization eras were different. An important observation was that majority of respondents find the post liberalization better in terms of consumption. production and trade of the sugar commodity. The biggest challenge that the sugar industry faced was competition from the international market. Most of the respondents also stated that the farmers may likely seek an alternative cash crop if the Government does not intervene through regulation of the sugar industry, leading to adoption of better management strategies and policies. The respondents wanted a corruption free management that is considerate to welfare of the farmers and can handle stiff competition in the market. The respondents also wanted the Government to implement policies that will support the stakeholders. The problems the farmers faced were poor prices, transportation problems and nonpayment. A recommendation to the farmers was to form co-operatives and joint unions to mitigate their problems. The stakeholders in the industry need to make strategic decisions to counteract the impact of the sugar liberalization due to stiff competition and cheaper imports.