Kenya
Presentation on Competitiveness
Strategies For Small States
Malta 23rd to 31st May,2011
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Outline
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Background
Key data
Resource Strength
Major Trading Partners
Membership of Trade Organizations
Key Factors which impact on
Competitiveness
• Strengths
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Outline Cont’
• Weaknesses
• Kenya’s Trading Environment and
Opportunities
• Export and Investment Schemes
• National Export Strategy
• Business Support Institutions
• Reforms
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Background
• Gained Independence on 12th December
1963
• Became a republic on 12th December
1964
• A Multi-party democracy, elections are
held after every five years.
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Key Data
• Total area: 582,650 sq km
• Population (2009 census): 40 m.
birth rate: 38.9/1000; infant mortality rate:
57.4/1000; life expectancy: 55.3; density
per sq mi: 168
• Under new Kenya has 47 counties
with Capital City: Nairobi
• Other cities: Mombasa, Kisumu
• Currency: Kenya shilling,( $=Kshs 85.00)
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Key Data cont’
• Languages: English (official),
Swahili (national), and 42 local
dialects(exploited by politicians to
pose cohesiveness challenges)
• Religion: Christians, Muslims,
indigenous beliefs, others
• Working hours: 8.00 a.m.5.00.p.m.
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Key Data cont’
• Economy
– Liberalized the Economy 1993- open
economy
• No foreign exchange controls
• Prices controls abolished, now determined by
market forces
• Divestiture from state owned enterprises
• Abolition of Import licensing
• Zero duty on imported capital equipment & Raw
materials
– GDP current (in $)- per capita $ 1600.
– GDP growth – 4.1%
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Key Data cont’
• Main Exports
– Horticultural products, tourism, tea, coffee,
transport, manufactured products- cement,
Iron & Steel, Plastics, Cigarettes, Soda ash,
Textile products, Fish and Livestock products
• Main Imports
– Machinery, petroleum products, consumer
goods, clothing, Medicaments, Veterinary
products, Electrical & Electronic equipments,
Motor Vehicles
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Resources Strength
• limestone, soda ash, salt, gemstones,
fluorspar, zinc, diatomite, gypsum, wildlife,
hydropower
• Natural sceneries
– The great Rift Valley
– Coastal beaches and coral reefs
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Major Trading Partners
• Uganda, UK, U.S.A.,
Tanzania, Netherlands,
DRC, Egypt, Pakistan, UAE,
Saudi Arabia, South Africa,
India, China, Japan.
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Membership of Trading
Organizations
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WTO
ACP/EU
COMESA
EAC
Others,
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Key Factors which Impact on
Competitiveness
• Physical Infrastructure ( roads, railways,
ports, power , ICT e.t.c.)
• Regulatory and Policy issues (laws,
licenses e.t.c.)
• Availability of Finance
• Development of human capital
• Access to markets
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Strengths
• Abundant skilled and highly educated
labour force
• Expanded access to business finance,
credit and bankability (Online banking,
cooperatives, FOSA)
• Fairly Developed Infrastructure Roads, 4
Inter. & numerous domestic airports,4
Sea and inland Dry port
• Laws protecting Investment and
repatriation of profits and capital
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Strengths Cont’
• R&D funding for Academia and research
institutions
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Weaknesses
• Cohesiveness Challenges
• Dependence on Agriculture and Tourism
• Largely Foreign and MNCs owned
Manufacturing, banking and Tourism
sector
• Corruption (economic governance)
• Political manipulation (transparency)
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Weaknesses Cont’
• Lack of managerial training and
experience
• Inadequate education and skills
• Lack of access to affordable credit
• Poor Infrastructure
• Scanty market information
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Trading Environment and
Opportunities
• Liberalizing Foreign Exchange
• Freeing the Schilling exchange rate to be
determined by the market forces
• Abolishing imports licensing
• Opening capital markets to foreigners
• Protection and promotion of investment
Agreements
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Trading Environment and
Opportunities Cont’
• Agro-processing, Infrastructural
development in roads,
telecommunications railways, and
Energy and power generation,
Manufacturing of electrical equipment,
Hard tools, Agricultural implements,
Tourist hotels and Lodges,
Accommodation, Recreation and
Entertainment facilities
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Trading Environment and
Opportunities Cont’
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Tourism
Building And Construction
Environment And Natural Resources
ICT
Energy _ solar, wind, Geothermal
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Export and Investment
Schemes
• Duty Remission for exports Office facility
(TREO )
• Exempts duty and VAT on imported raw
materials for export production
• (TREO)encourages business thro.
Remitting duty and VAT drawback on the
manufacture of goods for export
• MUB- encourages local and foreign
investors exempting them from paying d
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THE NATIONAL EXPORT STRATEGY
(NES)
• The NES was developed in 2003-2007
by the Ministry of Trade
• in consultation with other stakeholders
with the support of ITC.
• aimed at improving export performance
through increased competitiveness.
Business Support Institutions
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Kenya Investment Authority
Export Promotion Council
Kenya Institute of Business training
Kenya Association of Manufacturers
Kenya Chamber of Commerce & Industry
Industrial Commercial Development
Corporation
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Reforms
• Legal, administrative
• Further reduction and elimination of
lincences
• Further and far reaching political reforms
on the political landscape
THANK YOU AND WELCOME TO
KENYA
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