Significance of Multinational Corporations in Shaping Foreign Policy: Case of U.S Foreign Policy towards Kenya between 1989 And 2016

Abstract:

players in international relations. The assets and financial wealth of the MNCs and their link with the power structures accord them great ability to influence the foreign policy of their home countries. The MNCs originating from the United States of America (USA) are some of the most significant shapers of the foreign policy of the USA. However, while some studies have investigated the effect of MNCs on US foreign policy few have investigated their influence on US foreign policy towards Kenya. The study sought to answer three questions; What is the connection between MNCs and the power structures in the US? What is the nature of US policy towards Kenya? And, in what ways have the US MNCs shaped US foreign policy towards Kenya? The study applied an explanatory research design and used secondary data. Both qualitative and quantitative data were collected. The study found that American MNCs such as Del Monte, Pfizer, Coca Cola, Woolworths, General Textile, American Textile, Microsoft, Erin Energy Corporation, Anadarko Petroleum Corporation and EHRC Energy Inc have shaped U.S foreign policy towards Kenya in a number of instances. It found that these MNCs lobbied the U.S Congress and President to take certain foreign policy stands towards Kenya, which favor them. The study found that American MNCs operating in Kenya are linked with the power structures in the U.S owing to their possession of knowledge, security, production and financial resources. It found that the U.S has defined its foreign policy towards Kenya based on security, economic and political considerations. The study makes the following recommendations; that the authorities concerned with economic and trade policy in Kenya need to understand the link between MNCs and the power structures in the U.S. Foreign policy decision-makers in Kenya including the executive need to understand that U.S foreign policy towards Kenya is in consistent flux and that MNCs are partly responsible for change in foreign policy. It further recommends that the GoK need to enact and promote policies which encourage U.S-based firms as well as MNCs from other countries to invest in the country.