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 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
Published on March 29, 2017
Kenyans living abroad are the largest senders of remittances to mobile money accounts, a new study shows.
WorldRemit, an online remittance service that allows subscribers to send money using computers, smartphones or tablets said: “Transfers to mobile money accounts make up 93 per cent of WorldRemit transactions to Kenya now — showing that Kenyans continue to be early adopters of innovative technology, even when abroad.”
The revelation comes as the pioneer mobile money service M-Pesa celebrates 10 years since launch on March 6, 2007. “Kenya is famed for leading Africa’s digital transformation, and today its Kenyans abroad who are at the forefront of digitising international money transfers,’’ WorldRemit founder and CEO Ismail Ahmed said. Read more. Source | Business Daily
Published on March 29, 2017
Local clothing manufacturers plan to have a "mega sale" of their products this week in Nairobi.The event has been dubbed the first-ever super sale of local clothing brands in the country.
Going under the hashtag #BuyKenyaSuperSale on Twitter, the sale will run for three days starting Wednesday at the Kenyatta International Conference Centre, (KICC). Prices will range from Sh50 to Sh600.The sale has been organised by the Ministry of Industry, Trade and Cooperatives to promote local brands. Read more. Source | Daily Nation
Published on March 22, 2017
Panelists for the East Africa Postharvest Technologies Competition 2017 have selected 46 innovators, from over 200 applicants, to undergo accelerator training on how to package and pitch their technologies to investors. The training will help the innovators expand their opportunities for scaling up and disseminating their technologies to a wider market. The training will take place in Tanzania on April 4-6, 2017.
Applicants are competing for the best technological solutions to address post-harvest losses. They hail from Kenya, Uganda, Tanzania, Rwanda and Burundi.
The Inter Region Economic Network (IREN) is conducting the inaugural East Africa Postharvest Technologies Competition 2017 through a grant from the Hub. The objective is to spur the development of innovative technologies that reduce food loss and waste in Africa.
Published on March 16, 2017
Rwandan High Commissioner to Kenya H.E James Kimonyo has unveiled new incentives to Kenya businesses wishing to establish or grow business in the country. “With just 12 per cent of inter-country trade among African nations there is so much opportunity and room for growth between us,” he said at the second edition of the Rwanda Business Forum at a Nairobi Hotel.
The envoy unveiled new incentives to investors planning to invest in the country that together with Kenya are among the top ten fastest growing economies in the World. Read more. Source | Standard Digital