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 October 28, 2016
The Hub will be participating in and sponsoring the upcoming Angel Fair Africa 2016 to be held November 10 - 11 in Nairobi. The event seeks to connect startups in the technology sector with angel investors. This will be the fourth edition of the annual event that has previously been held in Johannesburg, Lagos and Accra. Past events have resulted in several investments. For instance, at the 2015 event held in Accra, Ghana: Moneyboxx a financial technology company secured $20 million from a local investor and Zeepay a mobile money aggregator attracted $200,000.
Published on October 26, 2016
Kenya is pushing to increase its market share for coffee in the United States (US) as a means of improving the global visibility of the local commodity.
“Kenya has embarked on an aggressive marketing of her coffee globally. In view of this, the country is set to be the ‘portrait country (main feature)’ during the 2017 Specialty Coffee Association of America (SCAA) Exhibition in Seattle, Washington, US,” said Grenville Melli, interim head of the directorate during a briefing in Nairobi.
The SCAA event provides the largest coffee marketing avenue in the world, where producers meet buyers and consumers. Read more. Source | Business Daily
Published on October 18, 2016
The World Health Organisation (WHO) data shows that there are more than 39 million blind people worldwide. Up to 224,000 of them are Kenyans.
Somewhere in Machakos, 10 of these individuals have a story of focus and achievement to tell despite the disability.
The 10 are entrepreneurs making leather items, but which skill has also given them a strong step onto the global arena, touring countries like the United States, Zambia and Ethiopia for trade exhibitions sponsored by the government. Read more. Source | Business Daily
Published on October 17, 2016
Kenya is lobbying for strict enforcement of duties on sensitive products imported into the East African Community, saying frequent exemptions threaten the survival of local industries.
Trade officials said the country wants the Common External Tariff on items like sugar, wheat, rice, leather and textiles revised to a level that members would be comfortable with and which would not be subject to exemptions.
“Kenya is striving to have the CET rates for sensitive items reviewed; the partner states are always requesting the Council of Ministers to grant them exemptions or stay of application,” Kenya’s Principal Secretary in charge of Trade Chris Kiptoo told The EastAfrican. Read more. Source | East African
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
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.
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
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