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Why Kenya

Why Kenya

Kenya has a domestic market of over 50 million people. and is a leading economy in sub-Saharan Africa. The top reasons companies should consider doing business in Kenya are :

  1. it is a market-based economy.
  2. Kenya is the economic, commercial, financial, and logistics hub of East Africa.
  3. it has a young, growing and educated English-speaking population with a high fluency in technology.

Kenya has built strong bilateral and multilateral trade relationships. Kenya is a member of the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), and the Africa Continental Free Trade Area (AfCFTA). In July 2022, the United States and Kenya announced the STIP, which identifies ten areas for the development of high standard commitments. The objectives of STIP include increasing investment; promoting sustainable and inclusive economic growth; benefiting workers, consumers, and businesses (including micro-, small-, and medium-sized enterprises); and supporting African regional economic integration.

Kenya : Preferred Destination

Kenya imports most of its textile engineering and technology requirements, its imports were highest in FY2018 recording purchases worth US$ 41.88Mn where spinning machinery was alone accountable for 28% of purchases followed by weaving and processing machinery. Whereas in 2021, The imports of US$ 18.53Mn showed more inclination towards import of garmenting 35% share and processing machinery having a share of 31%. Spinning machinery one of the promising sector accounted for 5% share.

In FY2021, the Majority of the machines around 44% were imported from China. India was the second highest importer of textile machinery with a share of 29% showing the strong presence of the Indian textile engineering sector in the Kenyan market.

In FY2021-22 Kenya reported exporting 433.7Mn US$ worth of articles of textiles & apparel. The textiles & apparel export in FY2021 has grown by 5% as compared to FY2017 however its imports in FY2021 have also increased by 10%. It has an abundance of presence in vegetable fibers, especially in Coconut, abaca (Manila hemp or Musa textiles Nee), and ramie. It exported fiber worth US$ 55.2 Mn in FY 2021 of which more than 90% of the share was from vegetable fibers.

Political Stability : The recently concluded general elections have set the stage for Kenya’s next development chapter. The country has made significant political and economic reforms that have contributed to sustained economic growth, social development, and political stability gains over the past decade.