Search

Sector-specific opportunities

The UK Department for International Trade (DIT) publishes over 1,000 business opportunities per month across all sectors and over 100 markets. Sign up to receive regular free international export opportunities alerts from its worldwide network, at: www.exportingisgreat.gov.uk

 

Automotive

Kenyan automotive sector – briefing

The Kenya Association of Manufacturers (KAM) is the representative organisation for manufacturing value-add industries in Kenya.

Established in 1959 as a private sector body, KAM has evolved into a dynamic, vibrant, credible and respected business association that unites industrialists and offers a common voice for businesses.

KAM provides an essential link for co-operation, dialogue and understanding with the government by representing the views and concerns of its members to the relevant authorities.

In pursuit of its core mandate of policy advocacy, KAM promotes trade and investment, upholds standards, encourages the formulation, enactment and administration of sound policies that facilitate a competitive business environment and reduce the cost of doing business.

KAM members are categorised into 14 sectors, 12 of which are in processing and value-addition while the other two offer essential services to enhance formal industry. Sub-sectors are defined by the type of raw materials companies import or the products they manufacture.

This way, members in a particular sector form a cohesive group of competitors but with common issues of concern, hence the need to prepare common policy positions for joint advocacy and negotiation with relevant government institutions in addressing issues of concern.

The Kenyan motor vehicle assemblers and accessories sector represents 6% of the KAM membership. It comprises two sub-sectors namely:

  • Motor vehicle accessories: manufacturers of various parts used during vehicle assembly and also for spare parts market.

  • Motor assembly: members include those in the manufacture, assembly, re-building and major alteration of complete motor vehicles such as passenger automobiles, commercial cars and buses, lorries and truck trailers.

For more information about the automotive sector in Kenya, or how KAM can help you, please contact KAM directly, at: www.kam.co.ke

[Source: Kenya Association of Manufacturers]  

 

Defence and security

The government has allocated over £701 million towards the enhancement of security.

Opportunities in this sector include:

  • supply of surveillance equipment

  • border control solutions

  • anti-poaching equipment

  • training of security personnel

  • forensics equipment

  • procurement of police aircraft

The Export Control Organisation (ECO) issues licences for the export of strategic goods. You must check your goods you are meeting legal requirements for export. See: www.gov.uk/government/organisations/export-control-organisation

Contact: emmanuel.maingi@mobile.ukti.gov.uk for more information on opportunities in the defence and security sector.

[Source: DIT/gov.uk/BCCK]

 

Education and training

In 2015-16 the government allocated approximately £109 million towards deployment of laptops to schools, development of digital content, and building capacity for teachers and rolling out computer laboratory, and approximately an additional £2.1 million for purchase of computers. There are opportunities for UK companies in:

  • development of digital content

  • training

  • building capacity and local content development in the oil and gas sector

  • supply of computers and ancillaries

Contact: christine.kimaru@mobile.ukti.gov.uk for more information on opportunities in the education and training sector.

[Source: DIT/gov.uk/BCCK]

The Kenyan Education Ministry – briefing

The Kenyan Ministry of Education, Science and Technology is responsible for national policies and programmes that help Kenyans access quality and affordable, school education, post-school, higher education and academic research.

The Ministry of Education, Science and Technology derives its mandate from the Constitution of Kenya, on children’s right to free and compulsory basic education, including quality services, and to access education institutions and facilities for persons with disabilities that are integrated into society, to the extent compatible with the interests of the person. This includes the use of sign language, braille or other appropriate means of communication, and access to materials and devices to overcome constraints arising from the person’s disability.

There are also provisions on access for youth to relevant education and training; access to employment; participation and representation of minorities and marginalised groups in governance and other spheres of life, special opportunities in educational and economic fields, and special opportunities for access to employment.

The rights of minorities and marginalised groups to reasonable access to water, health services and infrastructure are also enshrined, as it is incumbent upon government to develop a culture of human rights, promote gender equality and equity and facilitate gender mainstreaming in national development.

[Source: Kenyan Ministry of Education, 2016]

 

Energy

Oil and gas

Recent oil discoveries and high potential gas finds have created many opportunities. To support this growth, the related infrastructure will provide opportunities for its improvement.

Low carbon energy

The potential for geothermal energy is over 10,000 megawatts, coupled with the high potential for solar and wind energy development. The government has in the current budget allocated about £81 million towards geothermal development for 2015-2016.

In addition to this, there is high potential for solar and wind energy development.

Opportunities in this sector include:

  • education and training

  • local content development

  • supply of equipment

  • support services like camping facilities, transport

Contact: eric.mwema@mobile.ukti.gov.uk for more information on opportunities in the energy sector.

[Source: DIT/gov.uk/BCCK]

 

Financial services

The banking sector is undeveloped, with total assets dominated by loans amounting to nearly 30% of GDP.

Opportunities exist for companies to provide products and services from advisory and capacity building to technical support.

The primary industries with financial services opportunities are:

  • extractives

  • energy

  • agriculture

Contact: christine.kimaru@mobile.ukti.gov.uk for more information on opportunities in the financial services sector.

[Source: DIT/gov.uk/BCCK]

The Kenyan banking sector – briefing

The Kenyan banking sector remained stable and resilient in 2015 despite many challenges. Despite this, two non-systemic banks, Dubai Bank Limited and Imperial Bank Limited, were placed under receivership by the Central Bank of Kenya (CBK) in the second and third quarters of 2015.

The CBK said its actions were necessitated by unique circumstances in each of these banks. After the collapse, the CBK commenced efforts to upgrade its supervisory regime and human resource capabilities. External auditors of banks were also looped in to conduct additional work in assessing reliability of banks’ information, communication and technology systems.

In November 2015, CBK issued a temporary moratorium on licensing of new commercial banks to allow existing banks to review their business models and consolidate their operations while the CBK strengthened its supervisory regimes. This is expected to lead to a stronger and more resilient banking sector. The CBK is working towards ushering in a new normal in the banking sector underpinned by three key pillars of greater transparency, supported by accurate data; stronger governance with clear demarcation of responsibilities and greater accountability, fair market conduct and stronger supervision and effective business models, aimed at strengthening the resilience of banks, reducing costs and supporting innovation. This will in turn support Kenya’s aspiration of being an international financial centre.

[Source: Government of Kenya  www.mygov.go.ke]

During the fiscal year which ended 30th June 2016, the Kenyan banking sector comprised of 42 commercial banks, 1 mortgage finance company, 13 microfinance banks, 8 representative offices of foreign banks, 79 foreign exchange bureaus, 17 money remittance providers and 3 credit reference bureaus.

The banking sector registered an improved performance last year: assets increased by KSh 76.5 billion (2.1%) to KSh 3.7 trillion by the 30th June 2016 from KSh 3.6 trillion on the 30th June 2015. Loans and advances grew by KSh 100.4 billion (4.6%) to KSh 2.3 trillion by the 30th June 2016 compared to KSh 2.2 trillion on the 30th June 2015. The deposit base also expanded by KSh 53.4 billion (2.3%) to KSh 2.62 trillion, and profit before tax increased by 5.4% to KSh 81.2 billion at the end of June 2016.

[Source: www.centralbank.go.ke – Central Bank of Kenya 2015-2016 Annual Report]

The Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) has retained the Central Bank Rate (CBR) at 10%. This rate is expected to anchor in inflation expectations as the country faces severe drought and uncertainties in the global markets.

The MPC also suspended Kenya Bankers Reference Rate (KBRR) in the wake of the new law capping of interest rates. The committee which has retained the rate at this level since August 2016, said it will continue to closely monitor uncertainties in the domestic and global economies – ready to tackle them if they arise.

In a statement, CBK said the MPC’s decision to retain CBR at 10% was based on stable inflation and expectation. This, it said would remain within target due to improved current account deficit – estimated at 5.5% in 2016, confidence existing forex reserves and IMF credit facility that is adequate to manage forex volatility and table banking industry.

Overall market liquidity tightened in January 2017 with net liquidity injection standing at Ksh 12 billion against Ksh 24.2 billion in December 2016.

Analysts say with CBR remaining unchanged and CBK’s need to manage forex volatility will see current low market liquidity spare the market from aggressive tightening through open market operations.

[Source: Government of Kenya – www.mygov.go.ke]

In August of 2016, the President of Kenya signed into law an amendment to the 2015 Banking Bill which capped lending interest rates. The law caps the maximum lending interest rate at 4% above the base rate set by the Central Bank of Kenya. Interest rate spreads in Kenya in the past have been considered to be generally higher than that of its peers. The effects of the rate regulation remains to be seen and could vary from the intended affordable loans to the low income households and small businesses, to reduced profitability for the banking sector and increased charges on commercial bank products.

[Source: World Bank, Kenya Overview, Jan 2017]

 

ICT

Kenya ICT sector – briefing

The Kenyan Government is banking on universities to jumpstart the development of the planned Konza Technology City through the establishment of campuses for teaching, research and development.

Most significantly, the Korean Government committed KSh 10 billion for the establishment of the Kenya Advanced Institute of Science and Technology (KAIST), which will become the city’s anchor investor.

ICT Cabinet Secretary Mr Joe Mucheru said several Kenyan and foreign universities have pledged to invest in the planned techno city which is boasting a KSh 1.3 billion power line supplying power to the urban centre. The universities include the University of Nairobi, Kenyatta University, Multimedia University, Strathmore University, Jomo Kenyatta University of Agriculture and Technology, Technical University of Kenya and one of the universities from India as the institutions interested in the project.

There are more activities planned for 2017. “Konza Technopolis Development Authority (KoTDA) plans to bring on-board design consultants for the universities with construction not expected to begin until 2018. Over 24 parcels of land that have been set aside for investors ought to be finally allocated in early 2017,” he added.

The construction of the first phase of the smart city is taking shape in a 400-acre segment within the largest 5,000 acres that the government has set aside for Konza. The first phase of Konza project is expected to cost KSh 600 billion, with 10% of the funds being contributed by the government and is expected to be completed by 2020.

The Authority’s KSh 3 billion complex under construction will house early investors. So far, the government has received 66 expressions of interest from businesses that wish to take up space on the initial 24 parcels of land set aside for leasing.

The Konza project could rival other upcoming smart cities in Africa, such as Ghana’s Hope City and Tanzania’s planned technology park.

The integration of technology, internet, mobile connectivity, data analysis, artificial intelligence and machine learning in Konza Smart City and other Kenyan cities will therefore boost manufacturing and industrialisation.

Apart from bringing together demand and supply within the new shared economy, the digital platforms also bring about new types of services and pushes companies to rethink running businesses.

The game-changers in innovation are; machine and deep learning, artificial intelligence, block chain technology, senior technologies, internet of everything, robotics, augmented reality and virtual reality. Other than Konza Smart City, Kenya also needs to focus on comprehensive, credible and well thought-out industrial policy to support value-addition and local manufacturing.

Under Vision 2030, special economic zones are to be built in Mombasa, Kisumu, Lamu and Isiolo.

[Source: Government of Kenya  www.mygov.go.ke (Jan 2017)]

 

Infrastructure

Ports

The government has allocated approximately £11 million in 2015-16 towards:

  • constructing three new airports

  • upgrading two airports

  • replacing ferries (about £4.1 million)

There is also a project to develop a large port off the Indian Ocean coast in the Lamu area. The port will serve the northern part of Kenya which recently discovered oil, as well as serving landlocked South Sudan and Ethiopia.

Rail

The government increased its allocation from £132 million to approximately £733 million, towards standard gauge rail in 2015-2016. A further £23 million has been allocated towards an urban commuter rail system.

Contact: eric.mwema@mobile.ukti.gov.uk for more information on opportunities in the infrastructure sector.

[Source: DIT/gov.uk/BCCK]

 

Pharmaceutical and medical equipment sector

The Kenya Association of Manufacturers (KAM) is the representative organisation for manufacturing value-add industries in Kenya.

Established in 1959 as a private sector body, KAM has evolved into a dynamic, vibrant, credible and respected business association that unites industrialists and offers a common voice for businesses.

KAM provides an essential link for co-operation, dialogue and understanding with the government by representing the views and concerns of its members to the relevant authorities.

In pursuit of its core mandate of policy advocacy, KAM promotes trade and investment, upholds standards, encourages the formulation, enactment and administration of sound policies that facilitate a competitive business environment and reduce the cost of doing business.

KAM members are categorised into 14 sectors, 12 of which are in processing and value-addition while the other two offer essential services to enhance formal industry. Sub-sectors are defined by the type of raw materials companies import or the products they manufacture.

This way, members in a particular sector form a cohesive group of competitors but with common issues of concern, hence the need to prepare common policy positions for joint advocacy and negotiation with relevant government institutions in addressing issues of concern.

The pharmaceutical and medical equipment sector comprises three per cent of the entire membership. Members are classified into the following sub-sectors:

  • Drugs and medicines: Includes manufacturers of antibiotics, anti-malaria drugs, anti-amoebics, analgesics, anti-diarrheals, antacids, tranquilisers, antispasmodics, vitamins and anti-ulcers, intravenous solutions and plastic disposable syringes.

  • Manufacturers of medical equipment

For more information about the pharmaceutical and medical equipment sector in Kenya, or how KAM can help you, please contact KAM directly, at: www.kam.co.ke

[Source: Kenya Association of Manufacturers]  

 

Aid funded business (AFB)

The international aid agencies fund projects to improve prosperity in developing countries.

Find more information on the Department for International Trade (DIT)’s aid funded business service which helps you identify opportunities to supply products and services to the international aid agencies. See: www.gov.uk/guidance/aid-funded-business

[Source: Department for International Trade (DIT)/gov.uk]

 

The World Bank

The World Bank Group (WBG)’s strategy for Kenya is to support the government’s strategy of ending extreme poverty and increasing shared prosperity. WBG’s Kenya Country Partnership Strategy FY14-18 (CPS) focuses on improving the economy’s competitiveness and sustainability, protecting and helping the vulnerable to develop their potential, and building consistency and equity through devolution. During the CPS period, the WBG plans investment of US $1 billion a year, through the International Development Association (IDA), International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA).

The current International Development Association (IDA) portfolio amounts to US $6 billion in 29 national (US $4.7 billion) and seven regional (US $1.3 billion) projects. The biggest investments are in infrastructure namely; transport, energy, water, and urban development, followed by the social sectors (health and social protection). Other sectors comprise of: education; private sector development; ICT; agriculture; and justice, law and order, knowledge, and analytic work. 

International Finance Corporation (IFC)

IFC supports Kenya’s private enterprises through direct investments, advisory services and capital from global financiers.

Since it started operating in Kenya, IFC has invested US $1 billion in the country’s agribusiness, infrastructure, financial markets, health and education. IFC has invested in Kenya Airways, the Kipeto wind farm, Bridge International Academies, National Cement, AAR Healthcare and Vegpro.

IFC’s clients and partners are tackling pressing development challenges, including access to power, healthcare and food. Small businesses are engines for Kenya’s growth, creating jobs and providing essential goods and services, but entrepreneurs are often unable to access finance.

IFC’s Africa micro, small, and medium enterprise finance program helps banks increase business with the SME sector. IFC invests directly in banks to increase lending to entrepreneurs, and advises them on how to tailor their financial services for SMEs.

Its partners in Kenya include Equity Bank, Gulf African Bank, Bank of Africa, Diamond Trust Bank and Kenya Commercial Bank. IFC and the World Bank also work closely with the government to improve business regulation through reforms in registering businesses, getting credit and other areas.

Multilateral Investment Guarantee Agency (MIGA)

MIGA is providing investment guarantees of US $302 million in support of projects in Kenya’s infrastructure, power, agribusiness and service sectors. Working closely with the Bank and IFC, it helps to leverage financing for construction of privately operated power plants to diversify Kenya’s energy mix in line with the government’s least cost power development plan. MIGA is receiving increasing interest from other investors and sectors in the country.

[Source: The World Bank, October 2016]


 

comments powered by Disqus

Contact Form