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 September 20, 2017
Kenya recently approved freight tariffs for the standard gauge railway, as the government seeks to meet its target of transporting 40 per cent of cargo from Mombasa port by rail.
Kenya Railways Corporation (KPC) managing director Atanas Maina told The EastAfrican that the corporation has received approvals of the tariffs from the Ministry of Transport, which will be half the road haulage rates, and will now begin discussions with transporters. Read more. Source | East African
Published on September 14, 2017
Kenya Airways is eyeing New York as its first destination when it starts direct flights to the US next year.The national carrier sees the city as a convenient East Coast aviation hub to mark its entry into the US, before spreading its wings across the world’s biggest economy.
The airline, which last week received regulatory approval to operate direct flights to the US, also estimates that it will move 60,000 passengers in its first year of operation on the route.
“We are currently focusing on New York due to the importance of point to point traffic with Nairobi. However, we are also studying other options on the US territory as we may expand our network in the US in the near future,” Kenya Airways (KQ) Commercial Director Vincent Coste said in an interview. Read more. Source | Business Daily
Published on September 14, 2017
Starting a successful business is no mean feat. Right from coming up with an idea and turning it into a profitable company can be taxing even for a seasoned entrepreneur. It is much harder for someone who is starting out.
This is because the journey to success is fraught with challenges. However, knowing and anticipating the roadblocks you may encounter in your start-up journey could help you prepare, avoid common pitfalls and eventually break even.
Everybody talks about the role small businesses play in jobs creation, distribution of wealth and in growing economies. In Kenya, small businesses face a unique set of challenges. Read more. Source | Business Daily
Published on September 11, 2017
The United States government has granted Kenya Airways (KQ) a permit to operate direct flights to and from America.According to an order issued by the Department of Transportation, the permit became effective on Tuesday.
The US Department of Transportation had in June recommended that the Kenyan national carrier be allowed to access if there were no public objections. Read more. Source | The East African
Published on September 11, 2017
Tanzania and Kenya have agreed to end the trade barriers at the borders in afresh bid to improve bilateral cooperation and investment.
This was said on Saturday September 9, in Dar es Salaam by the Permanent Secretary in the Ministry of Industries, Trade and Investment, Prof Adolf Mkenda,at the end of talks involving senior leaders from the two countries. Read more. Source | The Citizen
Published on September 05, 2017
The Port of Mombasa got a major boost following the arrival of two ultra-modern diesel electric cranes. According to the Kenya Ports Authority’s (KPA), the acquisition of the equipment funded by TradeMark East Africa (TMEA) through the UK government’s International Climate Fund (ICF) facility.
The two $8.7 million portal harbour cranes are part of a comprehensive programme in supporting the port’s resilient port infrastructure initiatives, KPA added.
“These cranes are aimed at mitigating the negative effects on the environment,” the port authority said in the statement. Read more. Source | New Times
Published on August 29, 2017
t’s not every day you meet business owners that are profoundly connected to the international fashion community. Lucy and Herman Bigham of Tosheka Designs are shaping what it means to be sustainable in Kenya one eri silk worm at a time. Tosheka Designs is a fabric and textile company based in Philadelphia that manufactures home goods, accessories and purses by using sustainable resources and techniques in Nairobi, Kenya. Since early 2011, the duo have been working diligently to patent a unique process of producing cotton through the era silk worm. It is one of the only worms that you can extract silk from without killing it.
On the days leading up to the Kenyan election, I exchanged emails with the East Africa - based power couple about the ins and outs of their business and if the effect of the election would have any indication on their organization. It turns out that the Kenyan government supports their efforts despite all the unrest in their country currently taking place. Go inside our conversation. Read more. Source | Huff Post
Published on August 08, 2017
Kenyan and Tanzanian businesses are calling for the elimination of various non-tariff barriers that slow down trade between the two countries.
A consultative meeting held in Dar es Salaam last week between the Tanzania Private Sector Federation (TPSF) and the Kenya Private Sector Alliance (KEPSA) noted that Kenyan exporters of cement, edible oils, cigarettes and other products still encounter restrictions on entry into Tanzania while Tanzanian dairy traders are finding it difficult to export to Kenya.
“There is a need to facilitate administrative processes on the movement of goods, including clearance at border points,” the trade lobbies said in a joint communiqué after the meeting on Thursday. Read more. Source | The East African