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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 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
Published on March 09, 2017
Kenyan millers and traders are set to take up 87 per cent of the 275,000 metric tonnes of grain that East African regional countries have agreed to import from Ethiopia.
The deal, which was facilitated by Eastern Africa Grain Council (EAGC) and USAid’s East Africa Trade and Investment Hub will see traders import 240,000 metric tonnes of maize and pulses from Ethiopia, part of 51 contracts worth Sh5.5 billion that have been agreed with regional countries.
The deal was inked during a regional grain trade facilitation forum co-hosted by Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) in Ethiopia this week. Read more. Source | Business Daily
Published on March 01, 2017
The local leather industry has received a shot in the arm after the establishment of a Sh130 million revolving fund to help SMEs in the sector scale up production.
Industry, Trade and Co-operatives secretary Adan Mohamed said the Kenya Industrial Estates (KIE) would manage the fund from which the SMEs would borrow at low-interest rates.
“PTA Bank has provided Sh30 million while the government has set aside Sh100 million for the kitty. Read more. Source | Business Daily
Published on February 28, 2017
Trade between East Africa and the United States is set to increase after the latter’s Federal Aviation Administration granted Kenya’s Jomo Kenyatta International Airport a Category One status, finalising a pact that heralds the beginning of direct flights to America from Nairobi.
By attaining the highest International Aviation Safety Assessment status, Nairobi can now cement its position as the region’s aviation hub for both passengers and cargo.
Kenya’s Transport Cabinet Secretary James Macharia said national carrier Kenya Airways and other interested local operators will fly directly from Kenya to the US once the necessary approvals and last point of departure (LPD) rights are granted. Read more. Source | East African
Published on February 24, 2017
When Lupita Nyong’o, an Oscar award winner, graced the red carpet in US three years ago, the focus was on her one-shoulder dress which was paired with a Sh350,000 Chesneau Heltzel python leather box clutch. The timeless python skin bag was made in Kenya and Rudolf Heltzel, a world renowned fashion house from Ireland bejewelled it.
Later that year, Michelle Dockery, another actress and singer donned a similar clutch. Only 12 pieces were made and they sold out fast.
Kenya has had many moments in the high-fashion sun with designers showcasing on international runways and now made-in-Kenya bags that have a hint of the wild are finding space in international luxury shops and creating a celebrity gold rush. Read more. Source | Business Daily