Business in Kenya

EENI- School of International Business

Subject: Doing Business in Kenya, Nairobi, and Mombasa. Syllabus:

  1. Introduction to the Republic of Kenya (East Africa)
  2. The Economy of Kenya
  3. The Kenyan international trade
  4. The Port of Mombasa
  5. The Foreign Direct Investment (FDI) in Kenya
  6. Business Opportunities in Kenya:
    1. Agro-Processing
    2. Horticulture
    3. Manufacturing
    4. Knowledge Industry
    5. Infrastructure
  7. Doing Business in Nairobi and Mombasa
  8. Case Study: Kenyan Businessman
    1. Naushad N. Merali
    2. Bhimji Depar Shah
  9. Case Study: Kenyan companies
    1. General Motors East Africa
    2. REA Vipingo
    3. The East African breweries
  10. Introduction to Swahili
  11. Access to the Kenyan Market
  12. Business Plan for Kenya

The purposes of the subject “Foreign Trade and Doing Business in the Republic of Kenya” are the following:

  1. To analyse the Kenyan economy and foreign trade
  2. To evaluate the business opportunities in the Republic of Kenya
  3. To explore Kenya's trade relations with the country of the student
  4. To know Kenya's Free Trade Agreements
  5. To examine the profile of the Kenyan business people and companies
  6. To develop a business plan for the Kenyan Market
The subject “Doing Business in Kenya” is studied...
  1. Doctorate in Business in Africa (Online)
  2. Course: East Africa
  3. Masters: Africa, Frontier Markets, and International Business

Recommendations for the Kenyan Students

Course learning materials in English or French Kenya Portuguese Quenia Spanish Kenia

  1. Credits of the subject “Foreign Trade and Doing Business in Kenya”: 3 ECTS Credits
  2. Duration: three weeks

EENI in swahili: Shule ya biashara

Sample of the subject - Doing Business in Kenya:
Naushad N. Merali Kenyan Businessman

Port of Mombasa (Kenya)

We Trust in Africa

Description of the Subject: Doing Business in Kenya.

Kenya: an African frontier market, one of the African economic engines, and the largest East African Economy.

  1. Borders of the Republic of Kenya: Ethiopia, Somalia, Tanzania, Uganda, South Sudan, and Sudan
  2. Kenyan Population: 44 millions of people
  3. Area: 582,650 square kilometres
  4. The capital of Kenya: Nairobi (4 million)
  5. The official languages: English and Swahili
  6. Currency: Kenyan shilling (KES)
  7. The Government type: Presidential Republic
  8. Kenya became independent from the United Kingdom (December 1963)
  9. Abolition of the slavery in Kenya: 1907

Religion in Kenya:

  1. Christians (83%) - Protestant (48%), Catholic (23%)
  2. Islam (11%, 4 millions of people) - Fiqh (Islamic Jurisprudence): Shafi
  3. Hinduism: 1% of the population

Kenya belongs to the East African Economic Area of the African Civilisation.

  1. Bethwell Allan Ogot
  2. Ali Al'amin Mazrui

Bhimji Depar Shah Kenyan Businessman

The Kenyan Economy

  1. Kenya is one of the leading economies in East Africa
  2. Kenya is an African frontier market
  3. The strategic location of Kenya and its well-developed business infrastructure make it a natural choice for foreign investors and international companies
  4. The largest source of revenue: tourism
  5. The main Kenyan crops are tea and coffee (30% of GDP)
  6. The Port of Mombasa is the largest in the region
  7. Kenya is the financial and logistical hub of East Africa
  8. Kenya is one of the drivers of the African growth
  9. The Kenyan GDP growth: 4.9% (2013), 5.7% (2014)
  10. Under the Economic Recovery Strategy for Wealth and Employment Creation, various reforms have been affected, and these have had a total positive effect on the economy of Kenya
  11. While the rise in the global energy and food prices and a slowdown in the 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
  12. The vision 2030 of the Kenyan Government provides the entire Policy Framework that should lead Kenya to attain the status of a newly industrialised nation by the year 2030.
  13. The Kenyan agricultural sector contributes 24% of the gross domestic product and 19% of the formal wage employment
  14. 60% of all households are occupied in farming activities, and 84% of rural households keep livestock
  15. The Kenyan 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%.
  16. The Kenyan manufacturing sector contributes 10% of the gross domestic product and accounts for 14% of wage employment, mainly in food and wood processing, beverages, textiles and garments, furniture, and fabricated metal

General Motors East Africa is placed in Nairobi (Kenya) and serves the East African region covering Burundi, Ethiopia, Malawi, Mozambique, Rwanda, Somalia, Tanzania, Uganda, Zambia, and Zimbabwe.

The largest 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 and owns and operates a flourishing sisal business, whose activities include:

  1. cultivation
  2. manufacture
  3. spinning and
  4. export of sisal fibre and sisal products.

The Foreign Trade of Kenya.

  1. Kenya exports textiles and garments to the United States under the African Growth and Opportunity Act preferential international trade arrangement
  2. Most of the Kenyan exports go to the regional market of the Common Market for Eastern and Southern Africa (COMESA), particularly to Uganda, Tanzania, and Rwanda
  3. Top Kenyan export market destinations: The European Union (EU), Eastern Europe, the Middle East, America, Far East, Australia, and Southeast Asia
  4. The African region is the largest export market destination followed by Europe

Kenya Vipingo

Trans-African corridors:

  1. Northern Corridor
  2. Cairo-Kenya-Gaborone Corridor
  3. Lagos-Mombasa (Kenya) Corridor

Kenya's Institutions and Agreements:

Kenya is a member of the United Nations and the World Trade Organisation and has multiple regional trade agreements. As a result, Kenya has undertaken substantial trade liberalisation initiatives within the World Trade Organisation framework, including the reduction of the Most-favoured-nation tariffs, removal of the quantitative restrictions, optimisation 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 and the Africa Caribbean and the Pacific countries.

The Cotonou Agreement has been succeeded by a World Trade Organisation cooperative reciprocal trade arrangement, the Economic partnership agreements beginning January 2008.

Furthermore, Kenya is a member of the Common Market for Eastern and Southern Africa and the East Africa Community and the Intergovernmental Authority on Development.

Kenya is a beneficiary of preferential schemes of the international trade, including the Generalised System of Preferences with some industrialised countries, the International Trade and Investment Framework Agreement and the African Growth and Opportunity Act (AGOA) with the United States.

  1. Common Market for Eastern and Southern Africa (COMESA)
  2. COMESA-EAC-SADC Free Trade Agreement (FTA)
  3. Intergovernmental Authority on Development (IGAD)
  4. East African Community (EAC)
  5. Indian-Ocean Rim Association (IORA)
  6. Africa-European Union Strategic Partnership (Cotonou)
  7. African Growth and Opportunity Act (US AGOA)
  8. East African Community-US Agreement

COMESA Custom Union

Bethwell Allan Ogot (Kenya)

Kenya is a member of:

  1. Nile Basin Initiative
  2. International Conference on the Great Lakes Region
  3. African Union (AU)
  4. New Partnership for Africa (NEPAD)
  5. African Development Bank
  6. Economic Commission for Africa (ECA)

Samples - Business in Kenya

East African Community (EAC)

COMESA Customs

East African Rules Origin

Kenya Business

Indian-Ocean Rim Association IORA

Lagos-Mombasa Trans-African Corridor

COMESA-EAC-SADC Tripartite Agreement

Swahili

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