CountryOverview

• An East African country bordering the Indian Ocean, located between Ethiopia, South Sudan, Uganda, Somalia, and Tanzania.

• heavily populated, especially along its western region, the capital city of Nairobi, and the southeast region along the Indian Ocean

Kenya’s Investment Environment

• Most advanced economy in the eastern and central African region.

• Human development index of 0.519

• Most industrially developed country in the African great lakes region

• World’s highest share (53.6%) of renewable energy generating sources of the total installed capacity

• Financial, economic and transport hub of Eastern Africa.

• GDP (5.8% (2016 est.)) growth rate of over 5%.

Kenya’s Investment Environment

• The service, industry and manufacturing sectors contribute 75% of Kenya’s GDP

• Kenya, Tanzania, and Uganda established the East African Community (EAC) and Customs Union Agreement

• Favorable tax measures, like the removal of duty on capital equipment and some raw materials.

• “Vision 2030” program: garment industry added to the list of its focus industries that will drive Kenya’s industrialization.

Kenya’s Investment Environment

• An industrial production growth rate of 6.5% (2016 est.), and 19.14 million (2016 est.) labor force

• FTAs: – East African Community, Common Market for

Eastern & Southern Africa (COMESA),

– Generalized System of Preferences (GSP),

– European Union-African-Caribbean-Pacific (EU-ACP) Cotonou Agreement,

– African Growth & Opportunity Act (AGOA).

Kenya’s Investment Environment

• Investment insurance

• Growing capacity and production efficiency

• Positive foreign relations and political ties with China, India, Russia, the UK, and Brazil.

• Closest ties are with Uganda and Tanzania

• located on the East African Coast, and has the port of Mombasa, giving the country an access to the East and Central African Markets.

Challenges faced by the Kenyan Apparel Industry

• Lack of Local Upstream Industry

• Higher labor costs: monthly wage ranges from $120 to $150

• High energy costs

• Inefficient Infrastructure

• Compliance Issues

• Overdependence on AGOA

• Limited Availability of Skilled Employees

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