8. Research findings

8.1. Level of awareness of legislatures, small – scale traders, small – scale farmers, artisanal fisher folk

I interviewed and discussed with legislatures, small-scale traders, small-scale farmers and artisanal fisher folk about the workings and impacts of global economic policies and the purpose and operations of multilateral trading system superintended by WTO. I inquired from them about their level of awareness about bilateral and multilateral trade agreements and initiatives such as, Economic Partnership between African Caribbean and Pacific Countries (ACP) and European Union (EU) member states, African Growth Opportunity Act (AGOA), and their relations with WTO. I also asked about their awareness and involvement about East African Community (EAC) and Common Market of Eastern and Southern Africa (COMESA). I also asked about the role of the four stakeholders in trade negotiations and ways in which they can influence negotiations. I tried to find out from them whether they are aware of the emerging trade concerns and how they are likely to affect them.

8.1.1. Legislatures

From the interviews and observations I found out the following:

(a) Most Members of Parliament have hardly any idea about the multilateral system of trade led by World Trade Organization and how it impacts upon Kenya and other developing nations.
(b) There is hardly any awareness among parliamentarians regarding bilateral and multilateral trade agreements signed by the Government on behalf of the country.

(c) In most cases Kenyan legislatures are not furnished with information about global economic and trade policies and agreements signed by the Kenyan Government on behalf of the country.

(d) Few questions are asked in Parliament regarding the trade agreements and policies that have far reaching effects to the economy of the nation.

(e) The Members of Parliament do not always know that the problems of Kenya are caused by both internal and external factors. They concentrate on internal factors of corruption, tribalism, violence, insecurity, bad infrastructure, bad governance, etc. which are true but not the only factors.

(f) Although issues of bilateral and multilateral trade policies and agreements are discussed in the relevant parliamentarian committees of Trade and Defense and Foreign Affairs, their reports hardly receive the attention and interest of the Committee of the Whole House. Few MPs show interests in issues of multilateral system of trade governed by WTO although it has far reaching effects to the economy and development of the country.

(g) It is also claimed by MPs that the President, Ministers and Civil Servants avoid providing information about economic and trade agreements they sign with foreign countries and institutions. They provided as examples the agreements made by the President and Prime Minister with the Libyan Government that led to the sale of Grand Regency Hotel to Libya; the agreements signed between Kenya and the Government of Qatar that gave Qatar Government access to land for farming and development in Kenya. Again, agreements between the Government and the Britton Wood’s institutions of the World Bank and International Monetary Fund are hardly discussed in parliament. This information is only seen in annual budgets where MPs are used as rubber stamps.

(h) Parliamentarians are not aware of alternative policies to neoliberal globalization. Most believe that neoliberal globalization – capitalism – despite the injustices it causes to the majority of citizens is good, inevitable and the country has to adjust to it whether it likes it or not.

8.1.2. Small – scale traders

We found out that:

(a) Small-scale traders complain about economic liberalization and failure of the Government to protect and nurture local trade.

(b) The juakali (handcraft) manufactures complain about dumping of cheap goods from China, Dubai, India, etc., that prevent the development of local small-scale manufacturing and trade.

(c) Small-scale traders complain about unfair trade from goods that enter the country without paying taxes.

(d) Small-scale traders who deal with food products import grains, fruits, bananas, onions and other food staffs from Uganda and Tanzania that are sold in Kenyan markets including Nairobi.

(e) Kenyan traders travel to Uganda, Tanzania and around the region and import shoes, clothing and other goods that they sell in Kenya. They trade with traders from Uganda, Tanzania, Rwanda, Burundi, Democratic Republic of Congo and Sudan.

(f) Many Kenyans travel to China, Turkey, Pakistan, India, Dubai and other places and import all sorts of goods that they sell in Kenya.

(g) However, the Government hardly controls this trade and the traders are hardly aware of the multilateral institutions and agreements signed by the Government that sanctions this trade. Neither are they aware of the multilateral trade and economic systems and its impacts upon them. They simply trade.

8.1.3. Small – scale farmers

Small – scale farmers complain about the problems that affect them and blame the Government for ignoring small-scale farmers. They complain about the high prices of inputs, bad infrastructure, low prices for their products and unfair competition at the markets. They are aware of the importation of cheap food staffs from abroad that enhances competition at the limited home market and the Government’s failure to promote and protect local agriculture. But they are hardly aware about the dynamics of the neoliberal multilateral system of trade under the WTO.

8.1.4. Artisanal fisher folk

Neoliberal globalization is destroying the livelihoods of artisanal fisher folk (see also Degnbol, 1992:217 – 220). Apart from overfishing, most fish is exported to urban areas, especially Nairobi. It is also exported to the European Union and Japan by rich and more sophisticated traders of fish. As a consequence of capitalist globalization of fish trade, fish is now more expensive where it comes from than in the urban areas where it is exported to. This is having a negative impact upon food security and livelihoods of the artisanal fisher folk. It is also escalating poverty and underdevelopment.

But the fisher folk are hardly aware of the multilateral system of trade under WTO that is increasingly impacting negatively upon their livelihoods. There are, however, local organizations with connections with global fisher folk organizations that aim at creating awareness among artisanal fisher folk in the country concerning their threatened culture and livelihoods and relations with the multilateral neoliberal system of trade (see 8.3.9).

8.2. The production and market challenges experienced by small – scale farmers, small – traders and artisanal fisher folk

8.2. 1. Introduction: Micro and Small Enterprises (MSEs)

The research was concerned about the experience of small-scale farmers, small-scale traders and artisanal fisher folk in relation to trade. In this regard, small-scale farmers, small-scale traders and artisanal fisher folk are part and parcel of what is described by the Kenyan Government as micro and small enterprises – MSEs (Republic of Kenya, 2005; Republic of Kenya, 2003 – 2007).

MSEs are “formal and informal sectors employing 1 – 50 workers”, (Republic of Kenya, 2005: 5). This definition includes small – scale agricultural activities and juakali (handcraft) manufacturing (Republic of Kenya, ibid.). Since the term is used by Kenya Government’s policy documents, its limitation aside, I will also use it in this report to refer to small-scale farmers, small – scale traders and artisanal fisher folk that were the subject of the research.

According to the Kenya Government, MSEs play a very important role to the economy of the country, making the Government to find it necessary to produce three national policy papers about them hitherto. MSEs are said to make significant contribution to economic growth, employment creation, poverty alleviation and the creation of the country’s industrial base (Republic of Kenya, ibid.,:7). The MSEs economic sector is growing very fast:

According to the 1999 MSE Baseline Survey, the number of enterprises in the sector has grown from 910,000 in 1993 to about 1.3 million in 1999. Out of 1.3 million enterprises in 1999, about 66% were located in rural areas while women owned 48% of the enterprises. According to the survey, 64.3% of the MSEs are in trade, 14.8% in services, 13.4% in are in manufacturing while 7.7% are involved in other activities….According to the 1999 MSEs Baseline Survey, the Sector employed 2.4 million persons. This increased to 5.1 million persons in 2002 per the 2003 Economic Survey and translates to 675,000 jobs per year.

While the Government seems to insinuate that the increase in the number of MSEs and the number of people they employ is an indication of development, this is not in fact the case. The growing importance of MSEs is due to mtumbaism, the effects of neoliberal globalization to the economy and development of the country. As Kenyan industries and businesses are forced to close due the impact of dumping of goods and services brought about by trade liberalization, many Kenyans become unemployed. Privatization of parastatals, civil service reforms brought about by the implementation of structural adjustment programs (SAPs) of the World Bank and International Monetary Fund also cut jobs through retrenchments and contributes to the growth of MSEs. The unemployed people have no choice other than trying to eke a living through MSEs, most of which is in fact hawking in urban areas or rural market places. The majority of Kenyans are forced to be hawkers of imported cheap, sub-standard and secondhand goods for lack of a better alternative.

As “MSEs on average employ 1 – 2 workers while over 70 percent employ only one person (Republic of Kenya (ibid.,: 6)”, they hardly play any significance role in terms of employment as individual enterprises. They are more of subsistence, coping or survival mechanisms of the victims of the impacts of neoliberal globalization in Kenya. The MSEs involved in juakali manufacturing do not last long, no sooner are they started than they become bankrupt and close. They also do not grow to medium or large size enterprises and can therefore not form the basis of industrialization of the country (Republic of Kenya, ibid.,: 6). In fact, the objective conditions of capitalist globalization in Kenya are not only the major cause of MSEs but also cannot allow them to grow towards large medium-scale or large-scale enterprises. On the contrary, most manufacturing and trade MSEs eventually die and the owners either leave and subsist on any job they find, or become subsistence farmers or paupers. Small-scale farming MSEs are ruined into subsistence farming and are protected from plunging into pauperism only because at least they own the land in which they live and subsist upon.

Were the Government committed towards industrialization, it could have made more deliberate efforts to at least nurture and develop the creativity that is found at juakali manufacturing sectors such as those in Kamkunji and other urban and rural areas of the country. It is also important to note that most MSEs participate in trade informally, are not registered and as such do not pay taxes. Therefore, apart from helping the citizens to survive, they hardly contribute directly to the growth of the national economy.

8.2.2. Production challenges of MSEs

The Government identifies several challenges that face MSEs in general. These include unfavorable policy environment and inhibitive legal and regulatory framework; limited access to financial services and markets; inadequate access to skills and technology; insecurity of land tenure; poor infrastructure; inadequate business know-how and linkages with large enterprises; gender inequality; job quality deficits; unfair competition from cheap imported goods; limited access to information and unsatisfactory occupational health and safety standards (see also Republic of Kenya, 2005:7).

8.2.3. Market challenges of MSEs

According to the Government of Kenya (Republic of Kenya, ibid: 9 – 10), one of the most important challenges facing MSEs is access to markets. These include low demand; overproduction; saturation of markets due to damping, lack of information about markets due to high transaction costs; unfair competition due to some imported goods entering local markets without paying the required taxes; inability to access to foreign trade through such means as electro commerce. Only few MSEs are able to engage in export markets,

As a result, most MSEs are confined to very narrow local markets where intense competition drives prices down, resulting in very low profit margins. In many cases, the market mechanisms that can deal with these problems are either missing or weak. Also, a small capital base and limited technological sophistication confine MSEs to products and services, which cannot compete effectively in a globalize and competitive market environment due to quality limitations (Republic of Kenya, ibid: 9 – 10).

The market challenges of MSEs are, in fact, the objective conditions of small-scale trade under the capitalist system. MSEs cannot compete with large-scale industries and businesses that are more organized, with a larger capital base, and more prepared to access local and foreign capital and markets. Large – scale industries and businesses also enjoy economies of scale as well. Small-scale traders, including hawkers, compete fiercely among themselves in selling all types of goods, including mitumba of all types, most of which are imported. There is little local demand not because the people do not need the goods, but because they are too poor to afford them. Thus urban markets are full of all sorts of foodstuffs that rote for staying too long before they are bought, while at the same time, the majority of the people are at the brink of hunger and starvation. Kenyan urban areas are full of tiny shops of owners – mostly young persons – competing against each other to sell imported cellphones, clothes, electronic goods, etc. In order to develop local industry and trade, strategies should be devised and implemented of poverty eradication to stimulating local demand.

8.2. 3. Small – scale traders

8.2.3.1. Introduction

During the course of the research we visited Githurai Market, Gikombaa Market, Gikombaa Fish Market, Ngara Vegetable Market, City Market and Kamkunji Juakali.

8.2.3.2. Production challenges

There are several production challenges that face small-scale traders that are also identified by the Government (see Republic of Kenya, ibid.). These include:

(a) Unfavorable policy environment and inhibitive legal and regulatory framework. Although the Government has developed three national policy papers on small-scale trade (see for example Republic of Kenya, 2005; Republic of Kenya, 2003 – 2007) it is yet to implement the policies of supporting the growth of small-scale businesses and manufacturing. Small-scale trade remains chaotic and it is hard to distinguish between informal and formal small-scale trading. Under such circumstances small-scale trade hardly contributes to the national economy in terms of taxes.

(b) Limited access to financial services. Many small-scale traders complain that they cannot access financial services to expand their trade easily. Local banks that encourage small-scale traders to apply for loans prefer to provide the loans to the traders who form groups as this allows them to recover their money more easily from the traders who lack other forms of collateral. However, it is not always easy for small-scale traders to form the groups.

(c) Inadequate access to skills and technology. Small-scale traders need assistance to acquire more advanced machines, skills and technology to develop their manufacturing. They also require marketing and management skills.

(d) Insecurity of land tenure. Small-traders that include juakali manufactures, lack space to conduct their manufacturing and market their products. In fact, conflicts between the small-scale traders and the local government authorities is part and parcel of life in Kenyan urban areas.

(e) Juakali artisans complain about high prices of raw materials, such as wood, scrap metal and new metal.

(f) Lack of adequate place causes manufacturing, food marketing and processing to take place under unclean conditions that are not conducive for health. Food is also transported and stored under conditions not good for healthy.

(g) Poor infrastructure. Poor infrastructure, especially of roads, water and electricity, is a great impediment to small-scale trade and manufacturing.

(h) Insecurity is also a big challenge to small-scale traders and manufactures who have to employ watchmen to safeguard their goods.

(i) Inadequate business know-how and linkages with large enterprises and foreign markets are also challenges to small-scale trade and manufacturing.

8.2.3.3. Market challenges

The market challenges of small – scale farmers include:

(a) Fierce competition over access to limited markets of the same produce and products.

(b) Low purchasing power. People need the goods but they are too poor to buy them.

(c) Saturation of markets due to damping. Juakali artisans complain about unfair competition from plastic products and cheap substandard imported goods from Dubai, China and other places.

(d) Competition with large-scale traders. Large-scale traders enjoy economies of scale, cheap imports, better marketing strategies and access to information and finance. Small-scale traders cannot compete with large-scale traders in this regard.

(e) Unfair competition due to some imported goods entering local markets without paying the required taxes;

(f) Inability to access to foreign trade through such means as electro commerce. Electronic commerce remains a myth to most small-scale traders.

8.2.4. Small-scale farming

8.2.4.1. Introduction

We visited, made observations and talked to small-scale farmers at Werugha in Taita, around Kiambu District and Nairobi. Small-scale farming for both subsistence and cash crops is the dominant agricultural activity in Kenya. Most people in Kenyan live in rural areas where agricultural activity of food crops and cash-crops such as tea, coffee, pyrethrum, sugarcane and milk production are the main economic activities. It is hard to draw a line between subsistence farming and cash-crop farming since small-scale farmers in the rural areas use whatever they produce both for their food needs and also for sell in order to meet other basic needs such as essential manufactured products found in markets near them and other commodities. Small-scale farming is also used to acquire essential services such as education and health. Throughout Kenya, commodity production is now part and parcel of farming, whether large-scale or small – scale.

8.2.4.2. Production challenges

Despite its importance to the national economy, small-scale farming is actually peasantry farming and embodies all the characteristics and contradictions of peasantry agriculture that makes Babu, 1979:47, to suggest “peasant agriculture is not an ideal state to be retained forever. It should be gotten rid of in as short a historical period as possible”. The production challenges of the peasant based small-scale farming include the following:

(a) It is archaic, drudgery and hardly changes overtime and uses humble tools of jembes, donkey or cow pulled jembes, and pangas that are leftovers of thousands of years of human history.

(b) The primitive tools limit the production capacity of the peasants. The farmers cannot utilize the tools to farm large pieces of land and in time even if they had access to it.

(c) The farmers also have only little access to improved agricultural technology aimed at increasing farming methods and yields. The structural adjustments programs of the World Bank and International Monetary Fund forced the Government to reduce and privatize agricultural extension services. This has impacted negatively to small-scale farming.

(d) Land tenure system also inhibits agricultural production of small-scale farming. Most families own too little land that besides has been sub-divided into small pieces of land for homes and production of individual members of families. Little land is left for production.

(e) Land tenure and poor technology also contributes to erosion of the soil and environment that leads to soil infertility and low yields.

(f) There is too much dependency on inputs such as fertilizer and insecticides that not only increase the cost of production, but ruin the soils in the long run.

(g) Preservation and storage facilities are hindrance to agricultural production. A lot of grains and crops are lost during, just before harvesting, during harvesting and after harvesting.

(h) Too much dependence on seasonal rainfall. The effects of climatic change are ruining small-scale farming producing hunger and starvation. Small-scale farming is now unable even to meet subsistence needs.

This type of farming that is also export oriented with more emphasis on cash-crop production than food-crop production is encouraged by the agricultural reforms that were imposed by the World Bank and International Monetary Fund. Even progressive individuals and organizations often romanticize peasant based agriculture and believe that it ought to be reformed and not transformed. Yet with this type of farming, the lives of the peasants hardly change for the better. On the contrary they tend to become worse and more so now following the effects of climate change that is ruining agricultural activities in the country. Many peasants are forced to migrate from the countryside to urban areas where they are confronted with the harsh reality of urban life of the capitalist system.

Responding to a meeting held in Rome on agrarian reforms and rural development in 1979, Babu, ibid. captured the production challenges of small-scale farmers.

The present hunger in Africa is not a problem of land reform or lack of political power by the peasants. It is a problem of peasant agriculture – small-scale, patriarchal – and it engenders capitalism daily, hourly, spontaneously and on an expanded scale. The natural economy of the peasants tends to perpetuate the old processes of production and repeats them on the previous scale and often on previous technical basis. Its economic units exist for centuries without changing in size and character, each isolated from the other. This isolation and seclusion has resulted in the notorious narrowness of the intellectual and political life of the peasants which the elites, to whom the “Rome Declaration Group” are opposed, exploit to the advantage.

8.2.4.3. Market challenges

Small-scale farmers are faced with many market challenges that are based on the nature of peasantry agriculture, poverty and underdevelopment. The challenges include the following:

(a) Geographical proximity to markets-urban areas. Those farmers, like the surrounding areas of Nairobi for example, who are near urban areas and shopping centers have more access to markets for their produce. The farther the farmers are away from urban and shopping centers, the less access they have to markets from their produce.

(b) Population density of the area where production takes place. The greater the population near agricultural production, the more is the demand for farm produce. The converse also applies.

(c) Increasing unemployment and poverty. Food is in the market, people are hungry and starving yet they cannot afford it. There is little home market for agricultural produce, despite food insecurity in the country.

(d) Many farmers lack information about how to market their produce and are exploited by middlemen and market-women. As a consequence the middlemen and market-women gain more profit from the agricultural produce than the farmers who actually produced it.

(e) Intense competition due to the chaotic nature of the economy which is not planned. Most farmers plant and harvests similar crops and the same time and take them to the markets at the same time competing to sell same similar products. This creates a lot of wastage nationally.

(f) Unfair competition, imported agricultural goods find their way to the market without paying taxes. Due to trade agreements within the East African Community, goods – including agricultural produce – from the Tanzania, Uganda, Rwanda and Burundi enter Kenyan markets without paying tariffs. Yet Kenyan products have to pay tariffs to access the markets of other member countries.

(g) Bad infrastructure leading to markets increases transportation costs to the markets.

(h) Low prices for agricultural goods, due to intense competition, especially food crops.

(i) Small scale farmers cannot access export markets, they have to pass through large scale farmers who take advantage of the situation to exploit them.

(j) Numerous barriers, tariffs and rules made by the European Union, Japan and USA to regulate agricultural imports, especially food produce, from Kenya are major market constraints to Kenyan small-scale farmers.

(k) Kenyan small-scale farm produce is ill prepared to compete in the liberalized global food markets dominated by large – scale farmers, multinationals and transnational.

(l) Lack of policies and measures to protect local agriculture from the dumping of foreign agricultural produce impact negatively on small-scale farmers.

The market challenges of small-scale farmers are also summarized by Babu, ibid. in the following words:

Peasant productivity cannot be improved dramatically in a way that is necessary for extended reproduction. Conversely, because of their subsistence agriculture they do not have the purchasing power essential for the development of a viable home market which is the only means of extricating ourselves from dependency and set in motion development process. Without development we cannot wage our three prolonged struggle against nature, exploitation and archaic mode of production. Without production, furthermore – well, starvation.

Many years later since Babu wrote these words, which were a sort of early warning to Africans, there is l hunger and starvation in Kenya more often than not.

8.2. 5. Artisanal fisher folk

8.2.5.1. Introduction: definition of artisanal fisher folk

Artisanal fisheries are normally carried by small-scale fishing units, often consisting of groups of relatives, friends or people coming from the same village or locality. Artisanal fisher folk mostly use small boats – mitumbwi, ngalawa etc. and sometimes powered small boats or non at all. The fishing activity is often part-time, and household income maybe by other non-fishing activities such as small-scale or subsistence farming.

“Payment to fishermen is often on share basis and vessels and gear are usually owner operated. Gear is normally operator assembled and requires minimal or non-machine assistance to operate. Investment levels are relatively low, with capital often borrowed from those who market the catch. Catch most often does not enter large markets, but sold at dispersed points of landing. And part or all the catch is operator or family consumed”. (Hersoug & Tvedten, 1992: 11).

Today, artisanal fishery, which is an intricate and complex culture, is increasingly being globalized and commercialized and is no longer only for subsistence (Lindqvist & Mölsä, 1992:194; Madala, 9.3.13. in this report; Havnevik & Hårsnar, 1999:59- 65). Market oriented artisanal fishery is observed throughout the Coast in Lamu, Malindi, Kilifi, Mombasa South Coast; Lake Victoria: Kisumu, Homa Bay, Port Victoria; Lake Turkana; Lake Jipe and Lake Chala in Taveta and even Sagana in Central Province. Fish farming is also growing in Central Province and other parts of Kenya. All this is caused by the large demand for fish in rural and urban areas and also for export abroad.

8.2.5.2. Production challenges

8.2.5.2.1. Domination of fishing by large-scale fishing

Amidst all this, artisanal fisher folk face a lot of challenges from large-scale fisheries, particularly at the Coast and Lake Victoria. Large – scale fishery is characterized by the use of motorized canoes and boats of up to fifteen meters in length; crew of 15 – 20 people employed as full time fishermen; highly sophisticated gear including purse seines and trawls; seasonal or semi-permanent migration to main fishing sites and markets; intense and extensive involvement in capital markets exchange (Hersoug & Tvedten, 1992: ibid., Havnevik & Hårsmar, 1999: 59 – 74).

Most artisanal fisher folk rely on productive means that are produced outside their local context (Hersoug & Tvedten, 1992: 12). Only in rare places, such as in creation flood plain and river fisheries will all means of production be produced locally. Otherwise both fishing-gear (nets, hooks, lines, etc.) and boats, sails, outboard motors, ice, salt and sometimes even bait often have to be acquired through external channels. For motorized production groups, moreover, oil and gasoline also have a defining influence on productive capacity. Outboard engines from United States and Japan, nets and lines from China and Korea and hooks from Norway are found in the remotest fishing villages.

As a result of all this, fishing in Kenya is increasingly being dominated by rich fish traders who control production, pricing and marketing from a distance away in Nairobi and other urban areas and even from abroad. This is at the expense of small-scale fishery that has been the part and parcel of the culture of the people around Lake Victoria and the Coast for many centuries.

8.2.5.2.2. Lack of capital

Most artisanal fisher folk do not have capital to invest in sophisticated fishing gear or fish processing plants. Many fisher folk are forced to be employed as fishermen of rich fish traders who own the sophisticated fishing gear. Employed fisher folk have no right to the fish they catch that is the automatic property of their employers. As a result, although fishing is a very lucrative business today, it is hardly benefiting the fisher folk that are increasingly being alienated from their culture and becoming poorer by the day.

8.2.5.2.3. Exposure to the dangers of the waters

Fishing is a dangerous work and reports of boats capsizing, disappearances and deaths of fisher folk tend to be part and parcel of fishing culture.

8.2.5.2.4. Overfishing

Due to the lucrative trade, fishing has now attracted all sorts of players who want to make plenty and cheap money from the trade and export of fish. This has caused overfishing and the depleting of fish stalks by the invasion of fish breeding places. This happens at the expense of the fisher folk who have always lived around the lakes and the Sea and to whom fishing with conservation of fish has been a culture.

8.2.5.2.5. Lack of implementation of fishing policies and regulation

Fishing is now taking place in liberalized markets that operate chaotically under free for all atmosphere. The government does not protect the fisher folk from unfair competition and exploitation from fish traders. Neither does it help the fisher folk to develop and manage fishing in the liberalized markets. It watches as the fisher folk are reduced into the life of poverty and slavery as rich local and foreign traders continue to prosper (Madal, ibid.)

8.2.5.3. Market challenges

Most fishermen, who produce for subsistence and for commercial purposes, rely on some external market of exchange for sale of their fish, either directly or through intermediaries. The prices in normal cases fluctuate due to processes beyond the control of the individual fishermen such as national supply and demand, government decisions, changes in consumer preferences, etc.

Industrial fleets influences all maritime artisanal fisheries and also some of the larger inland artisanal fisheries such as Lake Victoria. The influence is both direct through industrial vessels’ impact on the resource situation (overfishing) and price levels of fish, and directly through their physical presence in waters used by artisanal fleet. Trawlers too close to the shore (i.e. inside the 3 mile limit normally being defined) ravage catch, destroy gear and even endanger the lives of artisanal fishermen.

Artisanal fisher folk are exploited by the rich fish traders and exporters who not only own sophisticated fish gear but also cooling and possessing facilities. When they come to the shores with the fish after fishing overnight, they meet the rich fish traders who determine the price. The fisher folk have to sell at the price set by the rich fish traders or their fish perish since they cannot preserve it.

The external dependency is currently clearly demonstrated through the impact of structural adjustment programs that continue to be implemented in the country. Common austerity measures such as import restrictions (on outboard engines, gear and gasoline, etc.), export incentives (often on exportable such as shrimp) as well as liberalization of prices and the creation of a generally more commercial economic environment, are now profoundly changing artisanal fishery adaptations (see also Havnevik & Hårsmar, ibid.). This is robbing fisher folk of the traditional livelihoods and escalating food insecurity and poverty. As fish production and marketing is increasingly controlled by large scale traders fish is now more expensive around Kisumu and the shores of Lake Victoria than in Nairobi and other areas where it is exported to.

8.3. The level of engagement in the trade negotiation process of the trade stakeholders

8.3.1. Legislatures

Legislatures have hardly been engaged in trade negotiations on foreign trade under the multilateral system of WTO. Yet given their role they have a right and duty to engage in trade negotiations. The legislatures or Parliamentarians are the elected representatives of the people whose duty is:
(a) To make policies and enact laws, including on trade. In this case they should be involved in debating various national policies and laws including on trade. However, how effectively they can do this depends on their knowledge of the subject, ideological positions and commitment towards national interests. Many times both the two leave a lot to be desired.
(b) To represent the people, including all the stakeholders of trade, such as small-scale farmers, artisanal fisher folk and small-scale traders. As the representatives of the stakeholders of trade, some of who are their constituents, they have a right and duty to negotiate about policies and laws favorable to their constituents and nation. They can and must claim to participate in the formulation of relevant trade policies and access to information regarding international bilateral and multilateral trade policies, treaties and agreements signed by the Government on behalf of the nation. They also should demand to know about what international treaties and agreements have been signed by the Executive on behalf of the country and their implications to the economy and wellbeing of the country. They could raise the concerns of the stakeholders of trade through questions to the Executive in Parliament, contributions to relevant motions and bills in Parliament. They could even refuse to enact and ratify undesirable treaties and agreements signed by the Government on behalf of the nation and without their participation. How effective they can do this also depends on their commitment and capacity to comprehend national and international trade issues. This is mostly limited and many times relevant questions are not asked in Parliament and the legislatures end up being used as rubber stamps of ratifying bilateral and multilateral treaties and agreements signed by the Government many of which are not comprehended albeit they have far reaching implications to the economy, freedom and sovereignty of the nation.
(c) To make budgets. Through the budget process, they can force a reluctant Minister of Trade to account for the national and international policies of the Government on trade. They can even force him or her to rescind undesirable trade policies signed by the Government with bilateral and multilateral partners.
(d) To ensure that the various Government Ministries function in accordance with the law and the constitution and that public funds/taxes (budget) are managed properly. This is done through various parliamentary committees that are enshrined in the national constitution. Through the Departmental Committee for Finance, Planning and Trade, legislatures can influence Government policies and negotiations on trade. The Committee is charged with the duties of scrutinizing the functioning of the Ministry of Trade, national laws on trade, bilateral and multilateral agreements between Kenya and others on trade, etc. The Departmental Committee can and should engage with other legislatures and Civil Society Organizations including NGOs and other stakeholders to scrutinize, comprehend and make relevant recommendations regarding trade agreements and negotiations on behalf of the country.
(e) Finally, under multiparty system, legislatures are members of political parties and come to parliament through their political parties. Legislatures can and should be engaged about their political party’s trade policies, including national and foreign trade. Legislatures can influence policies and negotiations on trade through pushing their political party’s policies on the same. However, the level of engagement of political parties in trade and economic matters are limited hitherto. As such political parties hardly influence Government policies as they are used as mere vehicles towards acquiring elective positions. Their manifestoes hardly find place in Government policies made by bureaucrats who are yet to comprehend and appreciate in theory and practice the meaning of multiparty democracy.
8.3.2. Small-scale traders, small-scale farmers and artisanal fisher folk
Small-scale traders, small-scale farmers and artisanal fisher folk are not involved in trade negotiations at the global level that remains the domain of the Executive arm of Government. However, the stakeholders are daily involved in trade negotiations among themselves, with customers, with Local Government authorities and the Government. Some small-scale farmers, like those involved in dairy, tea, coffee, pyrethrum and sugarcane production and farming are organized in cooperatives. Trade negotiations take place within the cooperatives among members and the leadership of the cooperatives. It also takes place between the cooperatives and other stakeholders, including with the Government and large-scale traders and companies that buy the produce. Conflicts between the small-scale agricultural producers with private and state parastatals and the leadership of the cooperatives, especially over corruption and pricing, take place more often than not. The same applies to small-scale traders and artisanal fisher folk.
8.4. The level of dialogue and consultation between legislatures, small-scale traders, small-scale farmers and artisanal fisher folk and other stakeholders in trade negotiations

There is hardly any formal (organized) dialogue and consultation between legislatures, small-scale traders, small-farmers and artisanal fisher folk and the Government in trade negotiations. People just trade, unaware of the global trade dynamics and the neoliberal economic policies that impact upon them. The legislatures who are also best placed to initiate dialogue and consultation are themselves also not aware of their right and obligation to do so. Yet the stakeholder’s consultation at the grassroots could be a good sources of ideas about what and how to negotiate about trade with bilateral and multilateral institutions in the interests of the country.

8.5. Constraints of effective engagement of the four stakeholders with other stakeholders in trade discourse and ways of addressing these gaps.

The constrains of effective engagement of legislatures, small-scale traders, small-scale farmer’s, artisanal fisher folk and other stakeholders in trade discourse include the following:

(a) A Government that is not interested at mobilizing popular support against imperialism for fear that this will turn against their own local class interests based on the capitalist political and social system.

(b) Lack of understanding and appreciation by the stakeholders of the fact that Kenyan trade and economic problems are caused by both internal and external factors. In this regard, the stakeholders hardly appreciated the fact that the Government is often forced to adopt trade and economic policies determined by the multilateral system under World Trade Organization and other imperialist’s institutions.

(c) Alienation of the Government from the stakeholders and other citizens. Years of bad governance that include dictatorship, corruption and violations of human rights has created the conditions where leaders and the Government are not trusted by the people. People have no faith in the leaders and Government that are seen as part and parcel of the problem of the political and economic problems. All this has led to the naïve belief by Kenyans that the problems of the country will be solved by foreigners and foreign policies, institutions and ideologies.

(d) Most Kenyan Civil Society Organizations, including Non-Governmental Organizations, depend on foreign donor funding of the imperialist nations. As the old adage says, “he who pays the piper sets the tone”, the ideology and world view of most CBOs and NGOs is that of the donors many of which would not wish to contradict the policies of their Governments. Under these circumstances, the role of Kenyan CBOs and NGOs in creating awareness among Kenyans on the role of the impact of the imperialist system upon trade, economy and development is limited by the fear of losing donor funding. There are, however, few NGOs that are brave enough to challenge imperialism in the country.

(e) Enough work has not been done to provide information to the legislatures, small-scale farmers, small -scale traders, artisanal fisher folk and other stakeholders of trade about the nature and working of the neoliberal trade and economic system under World Trade Organization and its impacts upon Kenya. There is hardly any information about the world trading and economic system spearheaded by WTO in Kiswahili that is spoken by the majority of the Kenyan people.

(f) The Government is accused of hiding information to the public and even legislatures about bilateral and multilateral agreements that it has signed on behalf of the country and its impact to the country. It is even reluctant to share even such information as the status of Kenya’s external debt. Rather than seek the support of its citizens to deal with the pressures of the neoliberal trade and economic policies such as those of the World Bank and International Monetary Fund that have produced negative social and economic impacts, the Government instead chooses to give in, collaborate and surrender and in the process compromise national freedom and sovereignty.

(g) The false belief that neoliberal globalization is good, inevitable and that there is no alternative to it. The leadership of the country, which comes from the comprador class that believes its interests are related to those of imperialism, preaches that there is no alternative way of development to that of capitalism. The media and the Government bureaucracy are dominated by persons who believe in the inevitability of market forces and neoliberal globalization. Many CBOs and NGOs are led by persons who believe that the capitalist and imperialist system can only be reformed but cannot and need not be transformed.

(h) Research done by scholars and intellectuals, including those from universities and institutions of research and higher learning is ignored by the Government and is not used to formulate policy on trade and economy. Besides, knowledge in the country’s universities and other institutions of learning has succumbed to the market force of capitalism. Knowledge has become a commodity to enrich individuals who have it and not to increase human security, knowledge and national freedom and development. Most university authorities and lecturers at the universities no longer think for the country but only for money and parochial interests. Education has been privatized and the right to good quality education is often denied the children of the poor who are the majority of citizens. There is therefore lack of alternative policies and ideas from those who are supposed to generate knowledge.

(I) Poverty. Small-scale traders, small-scale farmers, artisanal fisher folk and other poor stakeholders are too involved in the day to day struggle for survival to find time to reflect about issues of internal and external trade and economy. The legislatures who ought to inform and involve the stakeholders in the trade and economic matters either lack the capacity to do so or are too preoccupied with issues of amassing more wealth for themselves and retaining positions of power.

9. Recommendations and suggestions of specific activities

The recommendations are based on the realization that trade and economy of the country is influenced by both internal and external factors. At the era of neoliberal globalization, the Government of Kenya is often forced to sign and commit the country to bilateral and multilateral trade and economic agreements that often impact negatively on the development of the country. Various stakeholders of trade are forced to live with the impacts of the trade policies and agreements signed upon by the Government without their participation. These imperialist policies continue to be an impediment to Kenya’s development, social and national liberation. In the era of imperialist globalization, therefore, the need to unite all democratic and progressive forces for anti-imperialist struggle is more relevant than ever before. The struggle should assert itself more in the interest of freedom and liberation from imperialism and its institutions, policies, rules and agreements that are imposed upon Kenya, Africa, Third World Countries and the poor and exploited of the World. Generally, the research findings and constraints identified in 8.5. above should be discussed and used as the basis of devising strategies and tactics of liberating the country from the neoliberal system of trade.

9. 1. The need for research

As insinuated in section 7 in this report, there is the need for detailed research about the relevant themes identified as objectives in section 3 of this report. Further research that is aimed at documenting organizations of small – scale traders, small – scale farmers and artisanal fisher folk, finding out about their needs, views and how they can be united and mobilized to struggle for their interests at the national and international levels is required. Such research together with that already done by SEATIN Kenya, for example, should be published and disseminated to the stakeholders in simple language (such as that of Tandon, 2002) and in Kiswahili.

9. 2. Capacity building seminars, workshops and meetings

Progressive NGOs and CSOs concerned with trade issues such as SEATIN Kenya should develop programs, including capacity building seminars, workshops and meetings, aimed at creating awareness among parliamentarians, small-scale farmers, small-scale traders, artisanal fisher folk and other stakeholders about the multilateral system of trade and its implications to them and the country. The programs should provide information about the alternative to the neoliberal economic and trade policies. They should also discuss the tactics and strategies of struggling against the imperialist trading system while providing information about the global movements against imperialist globalization and for the alternative globalization based on human solidarity, social justice and socialism.

9.3. Networking and Organization

The NGOs and CSOs in 8.6.2. in this report should identify and document all organizations dealing with issues of trade in the country with the view of creating a united front of forcing the Kenyan Government to involve Kenyans in discussing bilateral and multilateral agreements before signing them. This will also help the Government to deal with the external pressures. The struggle against the imperialist multilateral system of trade should be connected with the global struggle against imperialism and for socialism.

9.4. Advocacy

Progressive NGOs, CSOs (social movements) should intensify their advocacy activities for a just and equitable global trading system and the need for people’s participation in deciding about the country’s commitment to global bilateral and multilateral trade policies and agreements. Clear alternative policies should always remain an embodiment of the advocacy strategies. The relevant Parliamentary Committees should remain major targets of the advocacy activities. As most of the Clerks who advise the Committees are hardly aware of the functioning of the neoliberal multilateral system of trade, relevant seminars should be organized for them.

9.5. Lobbying

Progressive NGOs and CSOs such as SEATIN Kenya should lobby for alternative policies for Kenya away from neoliberal globalization. It should also organize other stakeholders dealing with issues of trade and the imperialist multilateral system to discuss about strategies and tactics of lobbying the Government including Parliament1; CSOs and NGOs and other key stakeholders about the need for people’s participation in deciding about major bilateral and multilateral trade and economic agreements. Lobbying should also be aimed at forcing the Government to reject implementing imperialist economic policies and adopting alternative ones rooted from among the people.

9.6. Knowledge and literature

Progressive NGOs and CSOs such as SEATIN Kenya should always be aware of their key role of generating and disseminating knowledge on trade and related issues in the era of neoliberal globalization. As Fidel Castro often emphasizes, this is also the era of intensification of the battle of ideas between the reactionary forces of capitalism and the progressive forces of socialism. In this regard, it should also always be remembered that without revolutionary ideas there cannot be a revolutionary movement. At the same time revolutionary ideas become a revolutionary force once they reach the masses. That is why we must ensure that the knowledge that is generated does not remain in printed materials for intellectuals and elites of sorts but that it actually reaches the masses at the grassroots in their own languages.

Knowledge about the working of the neoliberal multilateral system of trade and its effects particularly to Kenya, could also be disseminated through the growing radios (especially FMs), TVs and the internet. FMs radio station enjoy popular hearing among the ordinary people in urban and rural areas and could be a means not only of disseminating the knowledge but also soliciting the views, wishes and aspirations of the popular masses about trade and economic matters and the battle against capitalism and imperialism.

Information Technology (IT) in Kenya faces many challenges. Many areas in the country, particularly rural ones, have no access to electricity and therefore the IT services. Class and geographical differentiations and the prevalence of poverty and illiteracy in the country means that IT remains the domain of the elites and educated young persons, mostly in urban areas. Nevertheless, IT is growing very rapidly in the country and is a very popular mode of communication. Anti – imperialist activists as individuals and organizations should therefore enhance their activities by utilizing IT for the struggle of just trade.

9.7. Targeting religious organization

Religious organizations led by genuine religious leaders too play a very important role in Kenyan society. Although belated, still they played a significant role in the struggle against the Moi – KANU dictatorship that culminated in multiparty democracy in 1992. Since then religious organizations have continued to play significant role in calling for greater democracy, human rights, peace, justice, transparency, accountability and good governance. They have also been involved in the call for debt relief. For these reasons, it is important to target religious leaders and organization in the advocacy and lobbying work about involving the Kenyan people to participate in the struggle for fair trade. Information about the working of the neoliberal multilateral system of trade and its negative impacts to the development of the country and the alternatives to the system should be disseminated to religious organizations through seminars and other methods. Religious leaders enjoy huge influence in the country as Kenyan society is still very religious. Appeal to them on moral grounds about the need for a just world order and globalization based on humane values of friendship, solidarity and the desire to do good to the world, will find fertile ground. Religious organizations could also, in turn, add pressure to the Government to find strength in struggling imperialist’s trade and economic reforms imposed upon the country.

9.8. Direct citizen actions

In a democracy, citizens have a right and duty to use all lawful and peaceful means possible to air their views and demand solutions from authorities. In fact, democratic freedoms including the right to peaceful demonstrations and picketing are entrenched in the Constitution of Kenya. Efforts should therefore be made by progressive NGOs and CSOs to educate the masses on this right and about various methods of mass actions for a just economic system that include demonstrations, petitions, boycotts and demanding accountability from their elected representatives. In so doing, emphasis should also be put in increasing awareness about mass struggles in other places of the world and the global movement against neoliberal globalization.

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