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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

Mauritius firms splurge Sh5bn on Kenyan companies in one year

Published on November 29, 2016
Mauritian firms have injected more than Sh5 billion into the economy through acquisitions and investments in Kenyan companies, indicating tightening economic links between Nairobi and the Indian Ocean Island country.  The rush to Kenya by Mauritian firms is partly spurred by a double-taxation agreement signed two years ago. Financial services group SBM Holdings’ intended acquisition of Fidelity Bank for an estimated at Sh2.7 billion is so far the single-biggest publicly announced deal. Read more. Source | Business Daily
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Specialty coffee firm seeks local partners amid Kenya market entry

Published on November 28, 2016
Local farmers now have a new suitor in town after an Estonian high-end coffee firm began a manhunt for Kenyan partners for its gourmet coffee. Barista and founder of Coffee People Annar Alas said its entry to Kenya follows bilateral agreements signed between Kenya and Estonia enabling commencement of direct trade partnerships. “We have always purchased Kenya’s best coffees from vendors in European markets and thought it is time we established a presence in Kenya for direct purchases. We are visiting farms to collect samples that shall be subjected to thorough tests ahead of trade agreements’ signing for 2017 green coffee deliveries,” he said. Read more. Source | Business Daily
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Murang’a farmers to benefit from Sh100m fund

Published on November 22, 2016
Small-scale horticulture farmers in Muran’ga County will benefit from a Sh100 million programme to be introduced next month. The programme aims to help farmers maximise their returns by sinking 50 wells in the region’s seven sub counties and buying improved seeds and water pumps. Murang’a Governor Mwangi wa Iria said that the fund will also be used to offer the approximately 50,000 small scale horticultural producers subsidised fertiliser and build 20 collection centres for their produce. Read more. Source | Business Daily 
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Kenya to construct $164m leather park

Published on November 22, 2016
Kenya has rolled out plans to build a $164 million leather industry park to transform the underdeveloped industry into a key economic contributor. The EastAfrican has established that the government has spent about $5.7 million in preliminary works including feasibility studies, development of a master plan and conducting a strategic environmental impact assessment for the proposed park. Last week, the government embarked on phase two of the project after putting out tenders seeking a contractor to build a common effluent treatment plant at an estimated cost of $9.6 million. Read more. Source | East African
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Kenya’s coffee production set to increase, says official

Published on November 21, 2016
Coffee production is set to increase to 47, 000 MT this year compared to 45, 000 MT last year due to an expanded plantation area, a coffee directorate official has said. According to Interim Director in the Agriculture and Food Authority (AFA) coffee Directorate Grenivile Miili the provision of subsidised fertilizer to farmers has increased yields hence the enlargement of area under cultivation by farmers. “The land under coffee production has increased from 109,000 hectares to 114,000 hectares,” he said. Read more. Source | Daily Nation
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State bets on new pest proof storage bags to reduce maize wastage

Published on November 17, 2016
Grain farmers will benefit from new storage bags, which do not require the use of insecticides to prevent weevils and other pests’ invasion that have for years seen millions of bags of the produce go to wastage. The hermetic bags can store maize, beans and wheat for two years, making them disease and pest free for a longer time. This comes as a boost to Kenya’s food security. The new bags were launched Wednesday after years of trials to test their efficiency before being rolling out to farmers countrywide. Read more. Source | Daily Nation 
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Kenya to launch Nairobi International Finance Center in early 2017

Published on November 15, 2016
Kenya plans to launch the Nairobi International Finance Centre (NIFC) in early 2017 which will make the capital a regional financial hub, officials have said. Director General Budget, Fiscal and Economic Affairs in the National Treasury Dr Geoffrey Mwau told a media briefing in Nairobi that Kenya has already developed the legal and regulatory framework for the NIFC. "Once the NIFC is in place, it help mobilize finance from the international community into the East Africa region," Mwau said during the official launch of the sixth Global Islamic MicroFinance. Read more. Source | Coast Week
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Govt to revive cotton industry, Agriculture CS Willy Bett says

Published on November 15, 2016
Agriculture Cabinet Secretary Willy Bett has encouraged farmers to venture into cotton farming as the government is keen on reviving the industry. Speaking during a visit at Base Titanium Mining Company, which has established a cotton farming program for the local communities in Mwachande village in Kwale County, Mr Bett expressed government commitment to revive the sector. He lauded titanium company for reintroducing production of cotton as part of its Cooperate Social Responsibility to improve the livelihood of local communities. Read more. Source | Daily Nation
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