Course summary (Business in Kenya)
Kenya is one of the leading economy in East Africa. The strategic location
of Kenya and its well developed business infrastructure make
it a natural choice for foreign investors and international companies.
The economy of Kenya has revealed a marked growth making its way up the
recuperate path since 2002. Under the Economic Recovery Strategy for Wealth and Employment
Creation (ERSWEC), various reforms have been affected and these have had an total positive effect on
the economy of Kenya.
While the rise in global energy and food prices in 2008 and a slowdown in global
economic growth owing to the world
financial crisis will have a negative effect on the Kenyan economy, high
local food prices
set great defiance to recent poverty reduction
gains. The Vision 2030 provides the total policy framework
that should lead Kenya to attain the status of a newly industrialized nation by the year 2030.
The agricultural sector of Kenya contributes 24% of Gross domestic
product (GDP) and 19% of the formal wage employment. 60% of all households are
occupied in farming activities, and 84% of rural households keep livestock.
The Manufacturing industry hit 4.1%, Construction industry, 3.5%, Wholesale and Retail Trade, Repairs, 9.5%, Tourism and Hotels, 15.1%
and
Transport and Communication
at 9.7%.
The manufacturing sector of Kenya contributes 10% of Gross domestic
product (GDP) and
accounts for 14% of wage employment, mainly in: food and wood processing, beverages, textiles
and garments, furniture and fabricated metal.
Kenya exports textiles and garments to the United States under the
African Growth and Opportunity Act (AGOA)
preferential
International trade arrangement. Most of produced exports of
Kenya go to the regional market of Common Market for Eastern and Southern Africa (COMESA), particularly to Uganda,
Tanzania and
Rwanda.
Top export market destinations of Kenya: COMESA countries, European Union, Eastern Europe, Middle East, America, Far East, Australia, and South East Asia.
The
African region is the major export market destination followed by
Europe.
Example of the course doing business in Kenya:
Kenya is a member of the United Nations and the World Trade Organization (WTO)
and has multiple Regional international trade agreements. As a result, Kenya has undertaken substantial Trade liberalization initiatives within the
World Trade Organization (WTO) framework, including reduction of the Most Favoured Nation (MFN) tariffs, removal of quantitative restrictions,
optimization of the business environment and International trade facilitation.
At the regional level, Kenya is signatory to the
Cotonou Partnership Agreement in 2000, which provided for non-reciprocal trade between the European Union (EU) and the
Africa Caribbean and Pacific (ACP)
countries.
The Cotonou Agreement has been succeeded by a World Trade Organization (WTO) compatible reciprocal trade arrangement, the Economic partnership agreements (EPAs) beginning January 2008.
In addition, Kenya is a member of the
Common market for Eastern and Southern Africa (COMESA) and the
East Africa Community (EAC)
and the
Inter-Governmental Authority on Development (IGAD).
Kenya is a beneficiary of a number of preferential schemes
of international trade, including the Generalized System of Preferences (GSP) with a number of industrialized countries, the International Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunity Act (AGOA) with the United States.
General Motors East Africa is placed in Nairobi (Kenya) and serves the Eastern Africa region covering the countries of
Burundi,
Ethiopia,
Malawi, Mozambique, Rwanda, Somalia, Tanzania,
Uganda, Zambia and Zimbabwe.
The biggest Sisal fibre manufacturer in Africa, the
REA Vipingo Group is a well established agricultural business, headquartered in Nairobi, Kenya.
The company is listed on the Nairobi Stock Exchange (NSE) and owns and operates a flourishing sisal business, whose activities include:
- cultivation,
- manufacture,
- spinning and
- export of sisal fiber and sisal
products.
Borders of Kenya: Ethiopia, Somalia, Tanzania, Uganda and
Sudan.
