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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

Agribusiness, a high potential source of employment for Kenya's youth

Published on June 08, 2015
According to an FHI360 study of the labor market in Kenya, 66% of Kenya's youth lack basic education. As a result, the most accessible employment opportunities for them lie in the informal sector.
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Kenya leads East Africa peers in private equity inflows

Published on June 08, 2015
Kenya continued its dominance in the region’s private equity industry with the country accounting for more than 60 per cent of private equity deals recorded in the East African region.For the seventh year running, Kenya outpaced Tanzania, Ethiopia, Rwanda and Uganda to become the foremost preferred destination for investors, cementing the country’s position as a leading destination for foreign direct investment on the continent. The latest edition of the East African Private Equity Survey by consulting firms KPMG and the East Africa Venture Capital Association ( EAVCA), indicates that Kenya received investment deals worth Sh49.7 billion out of the Sh78.9 billion ($822 million) reported.Read more. Source | Standard Digital
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A glimpse into grain trade and storage in Kenya

Published on June 05, 2015
At the end of May, the Hub joined the Eastern Africa Grain Council (EAGC) to visit warehouses that they had recently graded. EAGC has defined four levels for warehouse grading; class A, B, C and D. Class D is the minimum grade and does not qualify for participation in the warehouse receipts program.  Classes A, B and C maintain improved warehouse standards with respect to the physical facility, mechanization, security, administration and operations. They are all eligible for warehouse receipts, which means that farmers and traders can use their deposited grain in these warehouses as collateral for loans with banks, significantly lowering their financing costs.
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Joint Border Committees: A look at Malaba Border, Kenya

Published on June 01, 2015
Joint Border Committees: A look at Malaba Border, Kenya. The East Africa (EA) Trade Hub worked to reduce barriers to trade in East Africa. A major component of this work has been promotion of coordinated border management through the establishment and support of Joint Border Committees (JBCs) at 16 border posts in East Africa. JBCs are working groups made up of government agencies and private sector stakeholders involved in cross-border trade. They promote coordination between government agencies and businesses to enhance efficiency at borders.
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Towards an East African Common Market: Why trade policy matters

Published on May 28, 2015
One of the key pieces of the East African Community's integration agenda is the establishment of a common market. Through The Protocol on the Establishment of the East African Community (EAC) Common Market ratified on July 1, 2010, the EAC Partner States - Kenya, Tanzania, Uganda, Rwanda and Burundi - seek to boost trade and investment in the region by ensuring free movement of goods, labor, services and capital.
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Regional Focus on Kenya – USAID East Africa Trade Hub Activities

Published on May 28, 2015
Regional Focus on Kenya – USAID East Africa Trade Hub Activities.The USAID East Africa Trade Hub (EATH) worked with regional public and private sector partners to develop systems and policies that improve competitive regional and international trade and food security in East Africa. The Trade Hub’s partners included regional economic communities (RECs) and regional trade associations (RTAs). Tanzania benefited both through direct programs and through our regional initiatives across the East African Community (EAC).
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Staple Foods Value Chain Analysis-Country Report - Kenya

Published on May 28, 2015
Staple Foods Value Chain Analysis- Country Report - Kenya. This study, which was commissioned by the USAID-funded COMPETE project, covered elevenstaples crops in Kenya (Maize, Wheat, Rice, Sorghum, Millet, Beans, Pigeonpeas, Cowpeas, Chickpeas, Cassava and Groundnuts). The study was undertaken by Stanley Karuga and Dr Alfred of Market Economies Development Ltd. The aim of the study was to conduct a market assessment of these staple foods in Kenya including a value chain analysis (VCA) to provide a framework for the development of a strategic plan to improve the value and or the volume of staple foods marketed in Kenya.
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Kenya Coffee Industry Value Chain Analysis

Published on May 28, 2015
Kenya Coffee Industry Value Chain Analysis.Kenya grows mainly Arabica variety. The predominant commercial cultivars are the SL28, SL34, K7 and Ruiru ll. Pockets of the Blue mountain and French mission however still exists in the older establishments. Coffee Board of Kenya [CBK] estimates the total area under coffee to be about 170,000 Ha. There are two harvesting seasons in a year, in Oct-Dec (main crop) and the May-July (early crop). CBK estimates that they are currently [2008/2009] over 700,000 small holders who market though about 450 Co-op Societies, 3,300 small to medium estates with farm size ranging from 5 to 10 hectares and 100 large estates with sizes of between 10 hectares and over 200 acres.
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