Kenya’s Best Prospects

Telecommunications Equipment

The demand for telephone receivers and cellular telephones is expected to continue growing at a high rate following the removal of all duties for these categories of products. Growth in Kenya’s mobile telephony sector since 1998 has been phenomenal (from just over 10,000 subscribers to about 11.2 million in 2007), and will continue to provide demand for telecommunication technologies. Best sales prospects include computers, data terminals, modems, payphone terminals, routers, broadband equipment, and VSAT equipment.

Agricultural Machinery & Equipment

Tea and coffee are the country’s primary agricultural foreign exchange earners. Following closely is Kenya’s lucrative, flourishing, and rapidly growing floriculture sector, which generated USD 617 million in 2007. Kenya is the leading exporter of fresh cut flowers to the European Union and further growth is taking place in exports to Japan and the U.S. The following products offer best opportunities for U.S. exporters: tractors and parts, farm implements such as disc ploughs, harrows, planters, tractor trailers, combined harvesters, irrigation equipment, dairy processing equipment, processing and packaging equipment, and greenhouses.

Computers & Peripherals

In April 2004, the GOK launched a comprehensive e-government strategy to introduce the use of information and communication technology in government operations. Initial funding was an estimated cost of USD 37.8 million (KSh 3 billion) with a completion date of 2010. A Directorate of E-government under the Office of the President is in place as well as plans for the creation of an e-security department within the directorate, with a program and a manual for operations. Local area networks (LANs) are still being installed. Some of the services to be integrated into the e-government strategy include the registration of persons, an integrated property and assets registration system, an electronic payment system of utilities such as water and electricity bills, and some administration of police operations.

Construction Equipment

Best prospects for U.S. exporters include the supply of new and used construction equipment (light and heavy earth-moving equipment, loaders, crawlers, tippers, excavators, compactors, graders, and quarry mining equipment), low-cost road maintenance options, and low cost housing construction technology and know-how.

Aircraft & Aircraft Parts

Kenya has no domestic production of aircraft or aircraft parts. Although the Kenyan tourist industry declined overall in the late 1990’s and early years of this decade, there has been a strong resurgence since 2004 in tourist numbers. Small aircraft operators, particularly those in the charter service sector, have indicated their intention to increase their fleets to meet growing demand, especially for regional tourism. U.S. firms are encouraged to maintain their marketing presence, as big-ticket items take many years before a purchase contract is signed. Nairobi's Wilson Airport is the busiest general aviation airport in Africa and serves as the regional small aircraft maintenance center.

Educational Services

Education is highly valued in Kenya, as can be seen in the rapid growth of the number of students in primary, secondary and post secondary educational institutions over the last decade. Of importance is that a large proportion of the investment has been undertaken by the private sector. At the post-secondary level, Kenya currently boasts six public and thirteen private universities, and many tertiary colleges offering various disciplinary courses. The estimated number of candidates sitting for university entrance examinations is 900,000 annually. However, the number of places available in public and private universities is only 90,000, and the tertiary colleges can only absorb about 200,000. This mismatch leaves 600,000 students who have to look for alternative avenues to pursue further education. Some of the major foreign destinations that Kenyans generally go to for further studies are Britain, India, Australia, the U.S., Canada, Malaysia, and South Africa.

Medical Equipment

The U.S. is in an excellent position to increase its share of this market due to its technical superiority. Kenyan users appreciate the quality and reliability of U.S. medical equipment -- although price is an issue. Leading private sector hospitals are very active in modernizing their medical equipment inventories, while public sector hospitals are expected to engage in a reequipping strategy following improved budgetary allocations.

Cosmetics

There is huge demand for products such as beauty soaps, face washes, shampoos, conditioners, body and skin lotions, toners, astringents, cold creams and other moisturizing formulations, perfumes, hair colors, dyes, powders, eye and face packs, skin treatments, slimming treatments, and massage products for use in spas and professional skin care salons to mention just a few. Each market segment also has its own sub-sectors with unique best prospects. While most markets cite anti-aging, skin-lightening, and sun-screen and sun-care products as the sectors with the best overall sales prospects, other strong sectors are said to be body scents for under 13-year olds, baby toiletries, depilatory products, and men's cosmetics.

Electrical Power Systems

Although installed capacity is relatively small (compared to 50,000 MW in the U.K. and 31,000 MW in South Africa, for example), Kenya is the leading generator in Eastern Africa. Access to electricity in Kenya is only about 16%, with much of rural Kenya without any electrical power whatsoever. KPLC has formal electricity supply contracts with only about 650,000 customers, of which only 80,000 fall under the rural electricity program. The country’s highest achieved annual sales were 3,801 GWh. The transmission network comprises about 3000 km of 220 kV and 132kV transmission lines, and 20,000 km of distribution lines on 66 kV, 40 kV, 33 kV and 11 kV. Low voltage lines operate at 240 V and 415 V total about 22,000 km. Best prospects for U.S. exporters include drilling rigs and associated equipment, electric and electrical cables, transformers, electric meters, electric poles, and switchgear.

Agricultural Sector

The agricultural sector is the major driver of Kenya’s economy. It directly accounts for about 24% of the country’s GDP, with a further indirect contribution of about 27% through its links to manufacturing, distribution, and service related sectors. It generates some 70% of total national employment and produces most of the country’s food requirements. The livestock subsector contributes about 10% of Kenya’s GDP and 30% of the farm-level value of agricultural commodities.