THE IMPACT OF NEO-COLONIALISM ON COFFEE TRADING ACTIVITIES IN KENYA BY REBECCA M MAUNDU UNITED STATES INTERNATIONAL UNIVERSITY - AFRICA SUMMER 2017 THE IMPACT OF NEO-COLONIALISM ON COFFEE TRADING ACTIVITIES IN KENYA BY REBECCA M MAUNDU ID NO: 649337 A Thesis Report Submitted to the School of Humanities and Social Sciences in Partial Fulfillment of the Requirements for the Award of Master of Arts Degree in International Relations UNITED STATES INTERNATIONAL UNIVERSITY - AFRICA SUMMER 2017 DECLARATION This thesis report is my original work and has not been presented for a degree in any other institution. Signature: ……………………………… Date: ……………………………. REBECCA M MAUNDU (ID. NO: 649337) This thesis report has been submitted with my approval and justified as the university supervisor. Signature: ………………………………. Date: ………………………………. Dr. WELDON K. NGENO School of Humanities and Social Sciences (SHSS) –USIU -AFRICA Signature: ………………………………. Date: ………………………………. DR. TOM L. S ONDITI DEAN - School of Humanities and Social Sciences (SHSS) –USIU -AFRICA Signature: ………………………………. Date: ………………………………. AMB. PROF. RUTHIE. C. RONO DVC- ACADEMICS USIU -AFRICA ii DEDICATION I dedicate this work to my family for their entire support in my academic endeavor. The co-operation, inspiration and spiritual support from my workmates and fellow students have been invaluable. Special gratitude goes to my supervisor for the understanding, patience and guidance. May the Almighty God richly reward you! iii ACKNOWLEDGEMENT I’m grateful and highly indebted to many outstanding individuals without whom this work would not have been successful. Special gratitude to the Almighty God for the free provision of care, health, and strength he has accorded me, may abundant glory be to God. I’m equally grateful to my supervisor Dr. W. Ngeno for his personal commitment, encouragement, availability, patience and tolerance during the many discussions that immensely contributed to the success of the thesis. iv TABLE OF CONTENTS DECLARATION..................................................................................................................... ii DEDICATION........................................................................................................................ iii ACKNOWLEDGEMENT ..................................................................................................... iv LIST OF ABBREVIATIONS AND ACRONYMS ........................................................... viii ABSTRACT ............................................................................................................................ ix CHAPTER ONE ..................................................................................................................... 1 1.0 INTRODUCTION............................................................................................................. 1 1.1 Background of the Study .................................................................................................... 1 1.2 Statement of the Problem .................................................................................................... 9 1.3 Objectives of the Study ..................................................................................................... 10 1.4 Research Questions ........................................................................................................... 10 1.5 Research Hypothesis ......................................................................................................... 10 1.6 Justification and Significance of the Study ....................................................................... 11 1.7 Research Methodology ..................................................................................................... 13 1.7.1 Research Design..............................................................................................................13 1.7.2 Data Collection ...............................................................................................................14 1.7.3 Data Analysis ..................................................................................................................14 1.8 Operational Definition of Terms ....................................................................................... 15 1.9 Organization of the Study ................................................................................................. 17 CHAPTER TWO .................................................................................................................. 19 2.0 LITERATURE REVIEW .............................................................................................. 19 2.1 Introduction ....................................................................................................................... 19 2.2 Theoretical Framework Review ........................................................................................ 19 2.2.1 Dependency Theory ........................................................................................................20 2.2.2 World System Theory .....................................................................................................21 2.3 Empirical Studies .............................................................................................................. 22 2.3.1 The Concept of Neo-colonialism ....................................................................................22 2.3.2 Neo-colonialism and the Coffee Production ...................................................................25 v 2.3.3 Neo-colonialism and Coffee Marketing..........................................................................30 2.3.4 Neo-colonialism and Coffee Financing ..........................................................................35 2.4 Summary and Gaps to be filled by the Study ................................................................... 39 2.5 Conceptual Framework ..................................................................................................... 42 CHAPTER THREE .............................................................................................................. 43 3.0 DATA ANALYSIS-IMPACT OF NEO-COLONIALISM ON COFFEE PRODUCTION ..................................................................................................................... 43 3.1 Introduction ....................................................................................................................... 43 3.2 Neo-colonialism and Coffee Production ........................................................................... 43 3.2.1 Cost of Inputs and Farming Technology in Kenya .........................................................45 3.2.2 Quality of Product and Land Acreage in Kenya .............................................................49 3.2.3 Climate Conditions and their Impact on Coffee Production in Kenya. ..........................52 CHAPTER FOUR ................................................................................................................. 53 4.0 DATA ANALYSIS – NEO-COLONIALISM ON COFFEE MARKETING AND FINANCING ......................................................................................................................... 53 4.1 Neo-colonialism and Coffee Marketing Activities in Kenya ........................................... 53 4.1.1 Competition in Kenyan Coffee Trade. ............................................................................53 4.1.2 Costs of production and the Kenyan coffee trade ...........................................................55 4.1.3 Market Volatility and Neocolonialism on Coffee Trade in Kenya. ................................57 4.2 Neo-colonialism and the International Financial Systems................................................ 59 4.2.1 Capital, Financial Systems and Access to Credit and Neocolonialism in Respect to Coffee Marketing and Production in Kenya ............................................................................60 CHAPTER FIVE .................................................................................................................. 65 5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS................................... 65 5.1 Introduction ....................................................................................................................... 65 5.2 Summary of findings......................................................................................................... 65 5.2.1 Production .......................................................................................................................65 5.2.2 Marketing ........................................................................................................................67 5.2.3 Financial Systems ...........................................................................................................68 vi 5.3 Conclusion ........................................................................................................................ 69 5.4 Recommendations ............................................................................................................. 71 5.5 Suggestions for Further Studies ........................................................................................ 72 REFERENCES ...................................................................................................................... 73 APPENDICES ......................................................................................................................