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
Published on May 03, 2017
Foreign Affairs Cabinet Secretary Amina Mohamed has urged the US to help Kenya improve its economic and security situation, arguing that it will be in the interest of both nations.
In a series of meetings with top US officials last week, Ms Mohamed said that President Donald Trump’s ‘America-first’ policy can still be achieved with increased trade between Washington and Nairobi.
"Kenya values the longstanding partnership and cooperation with United States and is keen to explore new avenues and possibilities of strengthening the relationship as the new ‘America first policy’ takes shape and crystallizes," she said in Washington. Read more. Source | Daily Nation
Published on May 02, 2017
The ailing textile sector has been handed a lifeline, with the proposed increase in the amount of goods that manufacturers based in the special economic zones can sell locally.
President Uhuru Kenyatta said that the apparel manufacturers operating from the export processing zones (EPZs) will now be allowed to sell up to 40 per cent of their goods locally, a significant improvement over their current local market quota.
“We want to increase the current quota of 20 per cent that is allowed for the local market up to 40 per cent so that the local apparel manufacturers can employ more Kenyans,” Mr Kenyatta said. Read more. Source | Business Daily
Published on April 25, 2017
The initiatives being pursued have therefore boosted farmers’ morale to increase production and quality in order to earn premium prices in the global market. The industry for the last four production years has witnessed increased production, area under coffee and high prices as well.
According to the Economic Survey 2017 launched recently, the price of a kilogram for unroasted coffee for the last four years at the international market has increased by almost 30 percent to reach 4.7 U.S. dollars in 2016 compared to 3.3 dollars earned in 2013 production year. Total coffee earnings increased to 213 million dollars in 2016 from 205 million dollars in 2015 registering a 3.9 percent increase.
Currently a team of Kenyan coffee value chain players under the leadership of agriculture cabinet secretary Willy Bett are in Seattle, United States for an exhibition where Kenya is the portrait country. This is expected to enhance the exposure of Kenyan coffee. Read more. Source | Coast Week
Published on April 19, 2017
Nairobi has been named as one of the leading regional destinations for companies establishing international headquarters.
Kenya’s capital appears on the Fortune 500 list alongside Dubai, Johannesburg, Casablanca, Lagos and Cairo, as one of the destinations with the highest appeal.
According to a new report released by Infomineo, a global business research company specialising in Africa and the Middle East, Nairobi is the leading destination for Fast Moving Consumer Goods (FMCG) companies. Read more. Source | Daily Nation
Published on April 19, 2017
The Middle East Africa (MEA) region has become increasingly important for the majority of global Fortune 500 companies, according to a new report released by Infomineo (www.Infomineo.com), a global business research company specialising in Africa and the Middle East.
The report focuses on multinationals looking at entering, or already present, in the Middle East and Africa region. Overall, there was a 17% increase in the number of Fortune 500 companies in MEA in 2016 compared to 2015, with Johannesburg being the leading destination for Africa.
The Infomineo analysis includes the regional footprint of multinationals in the MEA region, the most commonly chosen cities, and the factors which influence the selection of a region, country and city - each element revealing the dynamic growth patterns within the region and a clear trend of Fortune 500 companies establishing presence in MEA. Read more. Source | Africa Newsroom
Published on April 12, 2017
An additional Ksh. 450 Million has been set aside to revamp of Rivertex East Africa, which was once Kenya’s textile powerhouse. This is good news for local manufacturers of textile because it focuses the growth of the sector to meet the local demand for affordable and quality clothing.
The 2017- 2018 budget has also proposed other tax measures aimed at growing local industry and enhancing our competitiveness as a country. To cushion the local manufacturers of pesticides imput the government has proposed to exempt this products from VAT, and to include I6 % tax on all pest control imported products. Read more. Source | East African Business Times
Published on April 12, 2017
Kenya’s purple tea received a major boost last week after it debuted at a major US trade fair meant to increase sales of the beverage in the global market.
Kenya has recently become a major source of the tea variety and one of the few countries that grow it. But lack of awareness among potential consumers has kept sales growth in check.
Mr Martin Kabaki, a US-based Kenyan and the chief executive of Kenya Purple Tea, LLC is changing that with direct contracting of Kenyan growers and finding markets for the produce in the US. Read more. Source | Daily Nation
Published on April 03, 2017
The Kenyan diaspora is the biggest sender of digital remittances to mobile accounts, according to a new report by WorldRemit, a global online money transfer service provider.
The report indicates that transfers to mobile money accounts make up 93 per cent of WorldRemit transactions to Kenya presently, a development that shows that Kenyans continue to be early adopters of innovative technology, even when abroad.
Mobile money has played a key role in the growth of WorldRemit’s Kenyan customer base, attracted by the low price, speed and convenience of sending instant remittances from the app or website directly to a mobile phone in Kenya. Read more. Source | New Times