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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

Kenyan farmers to benefit from insurance scheme

Published on October 11, 2016
Farmers in Kenya have a reason to smile after the government announced that it had introduced a crop insurance scheme to cushion them from adverse weather conditions. President Uhuru Kenyatta made the announcement on Wednesday when he officiated the official opening of the Agricultural Society of Kenya fair at Jamhuri Grounds.  Farmers in Kenya have been suffering from severe shocks such as droughts and floods in the last few years due to unpredictable weather patterns. The scheme is designed to assist farmers to improve their financial resilience to the challenges and adopt improved production processes to help break the poverty cycle of low investment and low returns. Read more. Source | East African Business Times
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Improving data reporting for food security through enhanced trade

Published on October 06, 2016
One of the key constraints to regional trade in agricultural commodities and policy development is a lack of reliable data on food production, consumption and trade flows. In the absence of valid data, policy makers are often at a loss on how to develop sound policy interventions to support food security through trade. The private sector is also disadvantaged by not having an accurate indication of supply and demand data. To solve this, the Hub has embarked on an effort to bring together relevant East African Community (EAC) Partner State ministries to harmonize, and publish on a regular basis, production estimates of key staple foods - maize, dry beans, rice and sorghum - for the 2016/2017 season. The Hub held the first of these meetings this week at its Nairobi headquarters with participation from Kenya, Uganda and Tanzania.
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Kenya formalizes trade partnership with US

Published on September 28, 2016
Corporate Council on Africa (CCA) and the Ministry of Trade, Industry and Cooperatives of the Republic of Kenya has signed a Memorandum of Understanding to formalise a partnership to promote U.S.-Kenya trade and investment.  The MoU signed by Adan Mohamed, Cabinet Secretary in the Ministry of Trade, Industry and Cooperatives, and CCA President and CEO, Stephen Hayes in Washington D.C aims at promoting trade and investment. “This MOU is a great opportunity for us to work more closely to promote trade and investment in Kenya. The Corporate Council has always been a champion for U.S.-Kenya business and we look forward to doing even more with them,” said Hon. Adan Mohamed. Read more. Source | Standard Digital
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Nairobi calls for strategies to improve access to U.S. market

Published on September 27, 2016
Kenya Foreign Affairs Cabinet Secretary, Ambassador Amina Mohamed, has called for the implementation of strategies that will enable Kenya, among other Sub-Saharan countries, benefit fully from the African Growth and Opportunity Act (AGOA) that offers preferential trade access to the United States market. Kenya Foreign Affairs Cabinet Secretary, Ambassador Amina Mohamed said, AGOA eligible African countries need to take effective steps to address the challenges that impede their ability to exploit the huge market access offered by AGOA. Read more. Source | Citizen Digital
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Maiden EAC entrepreneurship conference to focus on women

Published on September 15, 2016
Funding of entrepreneurial ventures will feature prominently in the maiden East African Business and Entrepreneurship Conference and Exhibition, which is slated for October 10 in Nairobi, Kenya. The three-day event, organised by the East African Business Council, in partnership with national investment agencies in the East African Community, will also throw a special look on women entrepreneurs, according to Angelika Farhan, EABC’s business development manager. “There are numerous programmes that  promote women entrepreneurs. Many women have an extraordinary entrepreneurial spirit but with limited access to financing,” Farhan said last week. Read more. Source | New Times
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What Africa must do to boost farm outputs, feed itself

Published on September 13, 2016
African farmers will in the next couple of years be looking to see whether the billions of dollars that governments, development banks, the private sector and international donors promised to invest in agriculture will not only materialise but also trickle down to their farms. Commitments of more than $30 billion were made at the African Green Revolution Forum, to transform agriculture on the continent over the next decade -— said by organisers to be the largest package of financial commitments to Africa’s agriculture sector to date. Kenyan President Uhuru Kenyatta pledged $200 million to help 150,000 young farmers and agricultural entrepreneurs gain access to markets, finance and insurance in the next five years — making one of the boldest promises that tipped the scales across the continent. Read more. Source | Business Daily 
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AGOA Market Specialty Food Enterprises Mapping Report - Kenya, Madagascar and Mauritius

Published on September 08, 2016
AGOA Market Specialty Food Enterprises Mapping Report is a publication of USAID East Africa Trade and Investment Hub. It highlights the U.S. – Africa trade relations and gives the country analysis on specialty food for Kenya, Madagascar and Mauritius. The report introduces the specialty products, and discusses the U.S. specialty food market highlighting the statistics and facts. It also details the general requirements for food import into the U.S.; gender based buying trends, and the potential market connections available for women from AGOA eligible countries. The publication further gives the current exports details from Africa to the U.S., outlining the potential products to be exported to the U.S. The report is a useful resource in the identification of sectors with export potential to U.S. in selected Sub-Sahara African countries.
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Agriculture can shape Africa’s development path, says Kagame

Published on September 08, 2016
President Paul Kagame has said putting agriculture sector at the centre stage of the continent’s development has the power to shape Africa’s economic future. President Kagame was speaking, yesterday, at the African Green Revolution Forum (AGRF)  in Nairobi, Kenya, during a panel session alongside Kenyan President Uhuru Kenyatta and Rhoda Tumusiime, the African Union commissioner for rural development and agriculture.  Kagame said African countries ought to view the agriculture sector not only as a sector in their economies but as the backbone of their economies and agent for transformation. Read more. Source | New Times
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