Political Economy of Informal Cross Border trade in the East African Community: A case of women traders in Busia and Isebania borders in Kenya

Abstract

Informal Cross Border Trade (ICBT) by women has become a critical and challenging sector for states globally with the Sub-Saharan Africa region affected the most. In the East African Community (EAC) estimates suggest that more than 60 % of intra-trade activities are informal with women accounting for more than 70% yet information gaps remain in the political economy of this trade. This research examined the political economy of ICBT in the EAC; a case of women traders in the Busia and Isebania borders in Kenya. The specific objectives were: to examine the nature and magnitude of Informal Cross-Border Women Traders (ICBWT); to establish the politico-economic drivers of women in ICBT; to assess the socio-economic and political impact of ICBWT; and to establish challenges and potential management opportunities. Neoliberalism, Vulnerability, and Rational Choice theories were used in this study for complementarity. The study adopted mixed methods research, a pragmatism philosophical paradigm, and a cross-sectional design. The study sites were Isebania and Busia Borders in Kenya where a total of 128 respondents were interviewed. Given the hidden and sensitive nature of ICBT, it was difficult to reach the target population making snowball sampling the most appropriate in recruiting ICBWTs respondents through referrals from which 103 were interviewed, 55 in Busia and 48 in Isebania Borders respectively. A total of 25 key informants interviewed including Security, Customs, Cross-Border Traders, County government, and Civil Society Organization (CSO) officials were sampled purposively from a target population of 45 in the two borders based on their knowledge of ICBT. Primary data were collected using direct observation, face-to-face administered questionnaires, and in-depth interviews. Quantitative data were analyzed statistically with the aid of the Statistical Packages for Social Sciences (SPSS) version 26, which enabled the creation of tables and charts to explain the findings. Qualitative data was analyzed thematically corroborating with secondary data to yield meaningful results. The study found that; On the nature of ICBWT, 52% of goods were primarily non-processed agricultural products, 4% processed agricultural, 20% marine products, and 24% processed goods. The drivers of ICBWTs were social, economic, and political in nature. On the impact; 21% indicated employment, 20% a source of revenue, 12% improved income,10% peaceful coexistence,12% entrenched regional integration, 11% food security, 3% insecurity, 5% family breakdown, and 6% loss of revenue. The challenges noted were; inadequate capital, harassment by border officials, corruption, insecurity, high transportation cost, sexual and gender-based violence, and confiscation of goods. Existing opportunities included; the Customs Union and Common Market protocol, Simplified Trade Regime, One Border Stop Post, and the presence of CSOs. The study concluded that the ICBT impacts on the political economy of EAC particularly in Busia and Isebania borders in terms of employment creation, increased income, food security, loss of revenue, and inflow of cheap goods. The study recommended: a need for the government to create awareness and appreciation of the impacts of ICBWTs at the policy level; develop a database of ICBWT to gauge their contribution to the economy, and reduce bureaucratic processes in the EAC borders