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PRESENTATION BY:
DR. CHRIS KIPTOO, CBS
PRINCIPAL SECRETARY FOR TRADE
Table Of Contents
Kenya at a glance
Why Kenya
Trade Overview
3rd most improved country in ease doing business 2016 World Bank
2015
2016
0 2 4 6 8 10
Series 1
Source: KNBS
Key sectors of the economy feed into the GDP, with the SME sector
making a significant contribution (28.5%) to the nationaleconomy
A griculture
Mining
Manufacturing
Construction
ICT
% contribution to GDP
Real Estate
Education
Health
Transport &Infrustructure
Hospitality
Finance
SME
Besides having a sizeable domestic market, Kenya has signed
preferential trade agreements with a total population of over 1.4
billion people and market value of $ 29 trillion
1,466
Population - Millions of people
500
324
150 492
Regional /global size with preferential agreements with Kenya – Billions, USD.
28,500
14,000
400 14,000
100
Total Duty Free
EAC COMESA US EU
Market
Kenya’s geostrategic location offers it preferential access to
regional and international markets
140
o Presidential roundtables address emergent
120
issues in the business arena
o A cabinet committee on ease of doing business 100
NO EXCHANGE CONTROLS
guarantees repatriation of
capital, profits and interests.
Signatory of several
Bilateral Investment
Treaties; Investment
Promotion and Protection
Agreements (IPPAs)
Trade Overview
KENYA'S TOP EXPORT PRODUCTS TO THE WORLD (2016)
Articles of apparel
Horticulture
Source: ITC database, 2017
Motor vehicles
Petroleum products
Source: ITC database, 2017
Top import products were; industrial machinery (17.7%), petroleum products (12.8%), road motor vehicles
(6%), iron and steel (5.3%), pharmaceutical products (4.2%), and plastics in primary form (4.1%), all
accounting for 50% of total imports in 2016.
Kenya- UK Trade Statistics
600
500
Amount in USD (Millions)
400
Exports
300 Imports
200 Balance of
Trade
100
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exports 287.89 379.77 384.96 402.11 471.1 406.3 376.13 358.68 406.68 375.81
Imports 294.23 280.82 368.85 377.23 431.6 438.49 490.2 470.37 429.7 334.87
Balance of Trade 6.337 98.964 16.108 24.881 39.495 32.182 114.08 111.69 23.016 40.942
Top Exports: Tea and mate, Fresh/chilled vegetables, Fruits, fruit juices and nuts, Coffee and coffee
substitutes, toys, games and sporting goods.
Top Imports: Medicaments, Motor vehicles, worn clothing and other textile articles, Rotating electric
plant and parts thereof, Paper and paperboard, printed matter, alcoholic beverages
Tourism Overview
L. TURKANA NATIONAL PARK MT. KENYA NATIONAL PARK HOME TO THE 8TH WORLD WONDER
Through vision 2030, Kenya has identified priority sectors that
double up as key economic drivers. Through the sectors, key o
pportunities have been identified.
OIL &
GAS
Investment opportunities in key sectors
Agriculture Only 16% of all exported agricultural Integrated Livestock Food processing hubs
output in Kenya is processed project in TARDA –TARDA
Tourism Tourism accounts for over 4.8% of Nairobi International Forest Luxury Lodges -
Kenya’s GDP and 4.1% of the country’s Conference & Exhibition KWS
employment Conference –Bomas of
Kenya
Opportunities exist to increase the
number of visitors from current figure of
1.5 million
Investment opportunities…Cont’d
ICT Kenya can gain a vital edge in ICT over its Konza Techno City National Spatial Data
competitors to earn USD 200 Million in Konza Technolopolis
GDP and create additional 45,000 jobs Development Authority
(KOTDA)
Due to:
-Competitive cost structure; 70% cost Digital Villages
advantage over UK and 50% over South Ministry of ICT
Africa
Oil & Gas Oil and Gas industry services such as The Nairobi Gold Refinery Development of LNG storage
drilling & maintenance are expected to Ministry of mines and facilities
grow by over 25% in the region each year Geology
and reach USD 3.5 billion by 2020
Garden City Mall is Kenya’s 1st integrated residential, retail & office (mixed-use)
development, offering over 400 apartments, duplexes & family villas, and
international shopping mall, 60,000 sq metres of office space, a modern
business hotel and state-of-the-art medical centre.
In this regard a number of incentives have therefore been put in
place to facilitate entry and expansion of investment..
General Incentives
EPZ Incentives
• Capital goods and raw materials are zero-rated;
• Plant, Machinery and equipment are duty exempt; • 10 year tax holiday;
• Some of the plant, machinery and equipment are • 25% corporate tax for another 10 years; 30% from
exempt from VAT; 21st year;
• Market access in COMESA & EAC markets with no taxes • Duty & VAT exemption;
• Single license;
• Investment allowance • Exemption from stamp duty; and
• 100% Nairobi, Mombasa and Kisumu cities; in the • Exemption for withholding tax
first year of use
• 150% - Those in other parts of the country
SEZ Incentives
Capital Market Incentives
• 10% corporate tax for first 10 years;
• Issuance of at least 40% of share capital- 20% tax • 15% corporate tax for subsequent years;
rate for 5 years
• Duty & VAT exemption;
• Issuance of at least 30% of share capital- 25% tax
• Single license;
rate for 5 years
• Exemption from stamp duty; and
• Issuance of at least 20% of share capital- 27% tax
rate for 3 years • Exemption for withholding tax
Establishing a company in Kenya has been made easy
especially with the setting up of a One Stop Center at KenInvest
Step by step
guide
Apply for statutory requirements:
Tax PIN/VAT registration
Once a company begins operation, visit www.kra.go.ke
KenInvest undertakes Register with the National Social
tracking services to ensure Security Fund (NSSF)
smooth project implementation Register with the National Hospital
Insurance Fund (NHIF)
Acquire a Single/Unified Business Permit
from the relevant local Authority
Key functions
Welcome to Kenya and be part of the success