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 January 10, 2017
Kenya has been tipped to remain a hotspot for private equity (PE) with global deal makers expected to be attracted by an improved business environment.
Analysts at Cytonn see the financial services, information and technology sectors as some of the key areas set to interest investors on the back of good returns.
“We remain bullish on PE as an asset class given the abundance of global capital looking for opportunities in Africa, the attractive valuations in private markets compared to public markets and better economic growth in Sub-Saharan Africa compared to global markets,” it said a new outlook on Monday. Read more. Source | Business Daily
Published on January 09, 2017
Small holder farmers can reduce post-harvest losses and improve income by adopting better storage management practices and technologies. According to Food and Agriculture Organisations (FAO) about one third of the food produced globally is lost or wasted representing a loss of 1.3 billion tonnes of food per year.
In Tanzania, results from different research studies demonstrate that farmers lose up to 40 per cent of the harvest through post-harvest losses. It is from this backdrop that the Inter Region Economic Network (IREN) moved up to organise Post-harvest technology congress next year to address and reduce the level of loss that account for more than 30 per cent of the food produced for human consumption.
IREN’s Chief Executive Officer Mr James Shikwati said,
This competition will enable us to identify a range of technologies that have the potential to help the continent confront and counter the huge challenges in postharvest management.
IREN is coordinating the congress in partnership with the USAID East Africa Trade and Investment Hub and Syngenta. Read more. Source | Daily News
Published on December 07, 2016
The University of Nairobi is targeting a Sh500 million fund to finance innovators.
The fund will be used to help develop exceptional ideas that will be showcased during the third annual Nairobi Innovation Week, slated for March 2017.
“We hope also that we will use part of the money to reward the innovators,” said Industrialisation PS Julius Korir yesterday in Nairobi at the launch of 2017 event. Read more. Source | Daily Nation
Published on December 06, 2016
Kenyan floriculture firms are eyeing expansion to Rwanda due to favourable climate and government incentives aimed at boosting the sector.
Several Kenyan firms say the climate in Rwanda favours the growth of flower types attracting high demand on the international market. A number are already seeking partnerships in Rwanda.
Bright Harvest Ltd, which brings together investors from Rwanda and other East African countries but is based in Rwanda is among the new entrants in the floriculture sector, having entered the market at the end of 2015. Read more. Source | East African
Published on December 02, 2016
Kenya plans to revive its cotton industry, a major foreign-exchange earner until the 1980s, amid strong demand for lint from domestic mills and the potential to supply manufacturers exporting clothing and textiles to the U.S. under a preferential trade deal.
The government is planning training and credit facilities for farmers as part of a bid to restore production that peaked at 38,000 metric tons of seed cotton in 1984-85. Kenya currently produces 15,700 tons of seed cotton, creating about 5,240 tons of lint. Demand for the latter is about 37,000 tons, with the shortfall imported from neighboring countries, according to Fanuel Lubanga, a development manager at the state-run Agriculture and Food Authority. Read more. Source | Industry Week
Published on November 29, 2016
Kenya is looking to set up at least one Export Processing Zone in all the 47 counties to replicate the economic impacts the initiative has had in the regions they have been situated.
The country’s 56 EPZs attracted Sh48 billion in collective capital investments in 2015 as tax holidays wooed many to start manufacturing for export.
The EPZ Authority will soon also have larger units called Special Economic Zones to make it more attractive to investors seeking to carry out high capital ventures. Read more. Source | Daily Nation
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
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