The impact of the East African Community (EAC) trade policies on the performance of the sugar industry in Kenya

Kenya relies heavily on sugar as a staple consumer commodity, with purchase frequency exceeding that of many other goods, according to the 2024/25 Kenya Integrated Household Budget Survey. The country’s sugar industry has historically been characterized by substantial subsidies and limited liberalization within regional trade frameworks such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). This article investigates the impact of EAC trade policies on the competitiveness, market access, and overall performance of the sugar industry in Kenya. Using a quantitative approach, the study applies regression analysis to time series data from 1980 to 2024 to assess the effects of regional trade integration. The findings indicate that EAC and COMESA trade policies have had mixed effects on the sector. While EAC tariffs and non-tariff barriers did not significantly influence sugar import demand, they played a critical role in shaping agricultural protection, with tariffs reducing the Net Protection Rate while trade restrictions increased it. The study concludes that EAC trade policies have significantly influenced the performance of Kenya’s sugar industry and recommends regulatory reforms, investment in production efficiency, and strategic regional trade negotiations to foster a more sustainable sugar industry in Kenya.