Business and Politics of Eastern Africa

A Review of the Evolution of Economic Relations between Kenya and Uganda, 1962 to 2014

Abstract

This article underscores a history of economic relations between Kenya and Uganda from 1962 to 2024. This is due to the fact that Uganda, Tanzania, Rwanda, Sudan, Zaire, Somalia, Burundi, and Ethiopia are the most important business partners for Kenyan exports. The article reviews various literatures and a major gap has been identified. Theoretically, it adopts a bureaucratic theory, as was propounded by Max Weber in 1921. Methodologically, the article embraces a historical research design, as it helps in evaluating and relating the past occurrences in order to establish the causes, effects or trends of those occurrences with the aim of utilising the data to understand and explain the past, present and future anticipated events. In its findings, four eras of Kenya presidents are discussed. These includes: Jomo Kenyatta era, Daniel Arap Moi era, Mwai Kibaki era and finally Uhuru Kenyatta era. Based on the aforementioned eras, the article found out that; first the promise of democracy, a good life, and freedom was punctuated throughout the pronouncements that marked the formative years of the Kenyatta state. Secondly, this article discovered that, in 1990, when Moi was in power, the rhetoric of the KANU party suggested that African traditions were particularly well-suited to a one-party democracy environment. One of the traditions that were mentioned was the practice of making decisions through consensus rather than through competition. Lastly, during Kibaki era, Informal trade thrived due to bureaucratic hurdles and corruption at border points between Uganda and Kenya. In Conclusion, the rise of informal cross-border trade, particularly during times of political instability, has significantly influenced economic interactions between the two countries.