Political –Economic Dynamics and Kenya-Thailand Bilateral Trade Relations, 2013- 2025

Abstract

The study specifically explored the influence of tariffs and trade agreements on Kenya-Thailand Bilateral relations. The study was anchored on two interconnected theories namely; World System Theory and Dependency Theory. World Systems Theory described the Kenya-Thailand trade relationship within a hierarchical global system in which there are Structural Inequalities (unequal power relationships), Unequal Exchange (unequal terms of trade) and how middle-power economies influence peripheral trade outcomes. Dependency Theory explained how the Kenya-Thailand trade relationship may create or maintain structural dependence through unequal exchange, lack of value addition to products traded and reliance on manufactured imports thereby limiting Kenya’s long-term industrial transformation. A descriptive research design was employed for this investigation. The study target population included officials from the Thailand High Commission, Ministry of Foreign and Diaspora Affaires, Ministry of Trade, Investments and Industry, the Kenya National Chamber of Commerce & Industry (KNCCI) and traders from both Thailand and Kenya. Both qualitative and quantitative data collection methods were applied in this study. This study purposively selected a total of 65 respondents. This included officials from the Thailand High Commission (5), Ministry of Foreign and Diaspora Affaires (5), Ministry of Trade, Investments and Industry (5), the Kenya National Chamber of Commerce & Industry (KNCCI) (10) and traders from both Thailand and Kenya (20). Data collected was analysed and interpreted qualitatively and quantitatively. The findings established that Tariffs restrict trade, but preferential agreements, negotiations, and tariff reductions enhance market access, investments, and economic diplomacy. This study recommended the strengthening of political and diplomatic cooperation to support economic relations, promotion of economic diversification and industrial cooperation to address structural imbalances and deepening and rationalization of trade agreements to reduce tariff barriers and enhance market access between Kenya and Thailand.