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Kenya

The Hub's accomplishments in Kenya to Date:  

  • To date the Hub has supported 294 firms and associations to increase their export competitiveness
  • 81 firms have been supported to participate in various trade shows resulting in 615 business linkages
  • Hub facilitated AGOA exports as at June 30 2017 stood at $125,817,038
  • Exports to other market destinations as a result of Hub support are $86,180
  • 3,464 new full time equivalent (FTE) jobs have been created, 73% of which are for women
  • Facilitated $30,633,968 new private sector investments in the ag and non ag sector
  • Supported successful ratification of the SPS Protocol
  • Advocated for the review of the Companies Act to conform with the provisions of the EAC Common Market Protocol
  • Supported successful implementation of ePing electronic alert system
  • Supported the adoption of a notification submission systems for technical barriers to trade (TBT) sanitary and phytosanitary measures (SPS)
  • Supported use of ISOlutions which allows Kenya to effectively participate in international standardization process

USAID grant signed to create 2,000 new jobs for youth in the apparel industry

Signed a new grant with Generation Program Kenya Limited, a local subsidiary of the McKinsey Social Initiative. Working hand-in-hand with Kenya’s Ministry of Industry, Trade and Cooperatives, the Kenya Association of Manufacturers and apparel companies, the program will set up and equip seven training centers throughout Kenya, provide over 100,000 hours in skills development and train 2,000 Kenyan youth, preparing them for full-time sewing machine operator jobs in the industry.  The grant is a part of the Hub’s larger “East Africa Cotton, Textile and Apparel Workforce Development Initiative,” a collaboration between the Hub and the American Apparel and Footwear Association that will ensure U.S. brands and retailers’ goods are manufactured in accordance with best business practices and operations in East Africa, producing a win-win for trading partners.

Kenyan woman-owned home-décor company enters mainstream U.S. market

Supported a Kenyan home decor producer to ship her largest-to-date U.S. order. Valued at $200,000, the deal is as a result of the Hub-organized Cost Plus World Market Trade Mission. (see success story at the end of this report) The profit from this order will go to the nearly 400 artisans who contributed to each hand-carved piece and will help finance her next big export to the U.S., which shouldn’t be far off given her now proven capacity for high-volume supply.

Read more here

The Hub supports increased investments in the upcoming Kenya Leather Park

On June 30, the Hub’s leather advisor completed his contract, during which he facilitated $9 million in total investment commitments for the upcoming Kenya Leather Park and a trade deal between Bata Shoes Kenya, Kenya Defense Forces and the Kenya Prisons Services to supply a total of $1.9 million in new sales of officer’s boots and shoes. Also in the leather sector, the Hub supported an India-based ‘trainer of trainers’ session that provided new eco-friendly technologies for best practices in leather finishing and production for five Kenyan tanneries and leather companies.

The Hub facilitates $36M new private sector investments

The Hub has facilitated $30,633,968 new private sector investments in the ag and non ag sector in Kenya. The Hub offers transaction support services. Eligible investors include private equity funds, commercial banks, impact funds, and development finance institutions. The Hub’s transaction team acts as a neutral intermediary to provide: opportunity validation market intelligence, fundraising support, due diligence, deal structuring, financial analysis and modelling. 

The Hub has helped financially close $51m of investments over the life of the project, $33.9 million in the agricultural and food chain sector and $17.4 million in the non-ag sector. There are $165 million of deals under review in the Hub’s investment pipeline. Over 

Product development excellence training for SMEs

Facilitated training on product development excellence for selected SMEs in the sector, in collaboration with Kenya Leather Development Council (KLDC). The training covered a wide range of topics in product development, including: product development planning, product development process, managing cross-functional teams and how to generate superior value products.

Helped leather enterprises develop innovative products that can compete globally, with a focus on company owners and senior management – those who can implement the concepts on which they were trained.

Trade and export facilitation through “Buy Kenya Build Kenya” strategy

Facilitated Kenya’s leading player in the formal footwear sector and the largest buyer of raw leather, Bata Kenya, to access opportunities for supplying Kenya Defense Forces with military boots and shoes.

Linked Bata Kenya to SMEs who have since started sourcing specialized finished leather for manufacture of leather goods, resulting in approximately $1.9 million in new sales.

Introduced MAS Tannery, a company established in 2004 that specializes in tanning (wet blue), to new markets in Turkey, India and Egypt. This allowed the company to increase exports to new clients  by approximately $500,000 per month.

Investor mobilization for the Kenya Leather Park

 

 

Supported Kenya’s Ministry of Agriculture to purchase 50,000 MT of maize from Ethiopia for the Kenyan Strategic Grain Reserve, bringing the total maize trade facilitated by the Hub between Ethiopia and the East African region to $100 million in the current season. 

Related Blogs and Resources

Coffee price jumps 75pc on high quality beans

Published on February 22, 2018
Coffee prices at the weekly Nairobi auction have risen 75 per cent since the first sale of the year following an increase in high quality beans. The average price of a 50-kilo bag rose to a high of Sh38,784 in Tuesday’s auction from Sh22,119 in the first sale of this year. The value of the Kenyan coffee has been consistently on the rise since the beginning of the year with Nairobi Coffee Exchange (NCE) saying the series of good prices should continue up to next month. Read more. Source | Daily Nation
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Use value addition to cut post-harvest losses

Published on February 22, 2018
The manufacturing pillar must revolve around minimising post-harvest losses and utilising local resources through value addition at county level. Everything has a value if people are willing to find a way to make it useful through value addition. But although value addition has become a buzzword in this part of the world, few realise that local farmers can play a major role towards the development of the manufacturing industry by simple value addition exercise on the locally available produce and resources around them or further upgrading of their cottage industries. Read more. Source | Business Daily
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Kenyans import $31.2m maize from the region to meet demand

Published on February 21, 2018
Kenya will next month waive duty to allow millers to import maize from Uganda and Tanzania. Kenyan traders imported more than 77,500 tonnes of maize worth $31.2 million since January from its neighbours. This is the highest amount of imports in the past five years as drought and the effects of the fall armyworm manifest in the country’s staple. Outgoing Agriculture Cabinet Secretary Willy Bett said that the government would, through the Foreign Affairs Ministry, formalise importation of maize. Read more. Source | East Africa
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Rail cargo movement increases in East Africa

Published on February 21, 2018
The East African Community member states’ appreciation of rail transport has increased, a trend experts think is good for doing business because it reduces on time.This trend, according to the experts, does not only ease doing business in the region but also it is cost effective because of its turnaround. Latest report from the Kenya Ports Authority (KPA) published this month shows that containers delivered up-country by rail from the Port of Mombasa recorded 671 twenty-foot equivalent unit (TEUs) registering an increase of 233 TEUs compared to the previous week. Read more. Source | Daily Monitor
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Kenya bets on ancient form of preservation to cut food losses

Published on February 08, 2018
Kenya is placing a big bet on hermetic storage bags, one of the oldest forms of food preservation in the world, to reduce post-harvest losses which claim up to 30 per cent of annual maize production. Hermetic bags are designed to insulate cereals from heat, air and moisture. The airtight bags deplete oxygen, thereby getting rid of insects without use of pesticides. Data produced by the United States International Agency (USAID) shows about 1.5 million hermetic bags had been sold in Kenya by end of 2017 following a nationwide campaign by agriculture ministry to popularize the bags among small scale farmers. Read more. Source | Daily Nation
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Kenya ranked 112 globally on key economic metrics

Published on February 01, 2018
Kenya has been ranked 112 globally on macroeconomic stability, institutional strength, openness and human capital and remains behind 11 other African countries. Mauritius, Botswana and Rwanda are the top-most in Africa in terms of future growth promise on account of the measured indicators, according to a newly released report by audit and financial advisory firm KPMG titled Growth Promise 2018. Read more. Source | East African
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Kenya AGOA stakeholders set target of doubling 2016 value of AGOA exports to the United States by 2025

Published on January 22, 2018
The United States Agency for International Development (USAID) Hub in east Africa and the Kenyan ministry of industry, trade and cooperatives recently joined Kenya’s private sector to review and validate a new Kenya National African Growth and Opportunity Act (AGOA) strategy that aims to double its 2016 figure of exports to the United States by 2025. Kenya nearly doubled its exports to the United States under AGOA from $225 million in 2010 to $389 million in 2016. Apparel is mainly exported under AGOA. Read more. Source | Fibre to Fashion
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Kenya to review strategy to boost exports to United States

Published on January 22, 2018
Kenya plans to review its trade strategy to boost exports to the United States, officials said on Thursday. Chris Kiptoo, Principal Secretary in the Ministry for Trade, told a media briefing that the first African Growth and Opportunity Act (AGOA) strategy for Kenya was developed in 2012. “We are conducting an in-depth review of the current strategy in order to take stock of its implementation and success as well as to suggest interventions to boosting exports to the United States,” Kiptoo said. “Furthermore, within the new dispensation of devolved system of government, the strategy will collaborate with the county governments, as appropriate, to exploit the potential market,” he said during the validation workshop on the national AGOA strategy review. Read more. Source | CoastWeek
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