Read our Kenya Country Factsheet here.
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 27, 2015
Kenya shook off security threats perpetuated by the Al-Shabaab terror group to attract Sh115 billion in foreign direct investments in 2014, more than double what the country got the previous year.
This is according to the African Economic Outlook (AEO) 2015 launched by the African Development Bank (AfdB) on Monday in Abidjan, Ivory Coast. Read more. Source | Daily Nation
Published on May 26, 2015
Kenya and Tanzania have now joined Rwanda and nine other African countries committed to implementation of the World Trade Organisation Trade Facilitation Agreement (WTO TFA) by submitting their Category A notifications.
The other countries are Botswana, Cote d’Ivoire, Egypt, Gabon, Morocco, Nigeria, Republic of Congo, Senegal and Tunisia.
The trade agreement is expected to enter into force by the WTO’s 10th Ministerial Conference in Nairobi this December. Read more. Source | The East African
Published on May 22, 2015
Dear Mr. President:
Recently, the distinguished Harvard professor, Robert Rotberg, made the argument that your planned visit to Kenya in July is a “dumb” idea.
I couldn’t disagree more, and here is why:
One of Professor Rotberg’s central points is that your visit will exacerbate ethnic tensions in the country, as your father was a Luo, and Luos largely backed President Kenyatta’s opponents in the 2012 elections.
This is a misreading of Kenyan politics. While there are ethnic rivalries in Kenya, as in many African countries, the country is increasingly defined by its multi-ethnic private sector. In fact, in the 2013 elections, the private sector undertook an aggressive and comprehensive peace-building campaign that contributed significantly to a fair and free outcome. Given that you are going to Kenya to participate in the 2015 Global Entrepreneurship Summit, the first time it will be held in sub-Saharan Africa, your visit will be an important boost to Kenya’s private sector and its contributions to the country’s development. Read more. Source | Brookings
Published on May 21, 2015
Kenya’s cosy relationship with the U.S is seemingly growing by the day. Within a few months, two of the most important political figures would have visited the East African state—Secretary of State John Kerry was welcomed a few weeks ago, while the country is bracing up for President Obama’s visit in July. Kenya though will be hoping for more American visits, particularly from investors. Read more. Source | Ventures Africa
Published on May 19, 2015
Kenya’s economic growth is set to hit seven per cent next year, for the first time since 2007, on the back of increased foreign direct investment and improved balance of trade.
This is the view of the International Monetary Fund (IMF) as revealed in a new report focusing on sub-Saharan Africa. It says the local economy will also benefit from a lower current account deficit, which is the difference between imports and exports.
Growth in GDP is expected to be 7.2 per cent, an improvement from the estimate for this year, which the Bretton Woods institution has put at 6.9 per cent. In 2007, GDP growth was 7.0 per cent, but has since not returned to this level. Read more. Source | Daily Nation
Published on May 19, 2015
A stream of investors and trade experts will visit in Kenya starting this month until June, ahead of President Barrack Obama’s visit in July.The US Embassy in Nairobi recently confirmed that several trade delegations are expected in the country before Obama visits. US Ambassador to Kenya Robert Godec said private sectgor trade teams and senior government officials will be in the country as a continuous exercise to scout for investment opportunities and negotiating for deals. Godec said investors from America are more interested to invest in Kenya. Though he did give the number of investors expected in the country, Godec assured that many deals are likely to be signed when the investors arrive. Read more. Source | Standard Digital
Published on May 14, 2015
National Treasury Cabinet Secretary Henry Rotich (left) goes through the Economic Survey 2015 when he officially launched the 2015 Foreign Investment (FIS) Survey today at Hilton Hotel, Nairobi. Looking on are Prof T. C. I. Ryan (centre), the chairman of the Kenya National Bureu of Statistics (KNBS) and Zachary Mwangi, Director General, KNBS. The KNBS in collaboration with the Central Bank of Kenya (CBK) and the Kenya Investment Authority (KenInvest) will be conducting a Foreign Investment Survey (FIS 2015) from May to September 2015, the third after similar surveys in 2010 and 2013. Foreign Investment surveys are conducted with the aim of providing information to policy makers on the level and composition of private capital flows and stocks. Read more. Source| My Gov
Published on May 06, 2015
President Uhuru Kenyatta Tuesday launched the 10th World Trade Organization ( WTO) Ministerial Conference logo and websiteThe launch, which kicked off preparations for the WTO Conference that will be hosted by Kenya from December 15-18 this year, took place simultaneously with a similar ceremony by the WTO General Council in Geneva, Switzerland. Speaking at the launch at State House Nairobi, President Kenyatta said hosting of the conference is not only an honour to the Government and people of Kenya, but also to the region and the entire African continent. "This is the first time that the WTO Ministerial Conference is taking place on African soil," he noted. He said bringing the meeting to Kenya is further proof of the commitment the international community to integrate the African continent into the multilateral trading system (MTS) Read more. Source | Standard Digital