Population (Millions)

49.7

2017

GDP (Billion)

$74.94

2017

GDP Growth

6%

2017

Inflation

8.0%

2017

country brief

Kenya

Country Context &
Overview.

Kenya is a major gateway to East Africa and a regional hub for trade, finance, communication and transportation services. The Mombasa Port serves over 200 million people as a critical node for trade for the Northern Corridor and it also serves northern Tanzania, DR Congo and Ethiopia. Evidence shows that many Kenyan businesses are still not sufficiently competitive to take full advantage of this emerging trade opportunities, particularly in terms of the capacity to export. The country, through Vision 2030 aims to transform into industrialising middle-income status with an annual economic growth rate of 10% driven by an exported development strategy. Kenya’s key challenge is creation of more productive jobs for an increasing youth population and attracting private investors who can drive innovation and entrepreneurship. Thus, it is imperative for Kenya to reduce the cost of doing business, which is necessary for a robust private sector.

Continuity and Innovation in
TMEA Strategy 2:

Kenya’s economic reforms, characterised by a high economic growth rate, have not benefitted the whole populace. Increased terrorism has had significant impact on the tourism sector, which constitutes 25% of GDP and employs over 500,000 people. Over 40% of Kenyans live on less than US$1.21 a day. Further, inequality that mostly affects women, youth and rural populations remains a challenge that can only be addressed through inclusive economic growth and sustainable job creation.

In Strategy 2, TMEA will continue to support increased trade for job creation and improved livelihoods by reducing barriers to trade. This will be done through infrastructure development, removal of Non-Tarriff Barriers, standards improvement and adoption of ICT for Trade to increase efficiency and transparency. TMEA will also support business to enhance their productivity and competitiveness.

OUTCOME 1: REDUCING BARRIERS TO TRADE

Improved efficiency and capacity of transport and logistics networks

DETAILS EXPECTED RESULTS BY 2023

Mombasa Resilient Infrastructure 20% reduction in Diesel Particulate Matter and nitrogen oxide from OGVs docking in Mombasa port. KPA passes the ISO 14001 environmental standards audit
Mombasa West Integrated Urban Road 50% reduction in traffic congestion intensity around the port of Mombasa and increased % of berth moves per hour

Improved standards and NTBs

DETAILS EXPECTED RESULTS BY 2023

SPS certification and traceability systems for agricultural products 50/50 targeted companies comply with HACCP certification (food safety standards; Increase by X% (or actuals) in certified agriproducts exports);90 per cent of cotton sold to market meets organic certification standards
NTB Identification, Registration, prioritization and elimination 100% of NTB along the main corridors in EAC and EATN reported, prioritized & regularly monitored; 60% of NTBs reported at the EAC/EATN border resolved through NRS; Up to 10 complex NTBs resolved per year 40% reduction in tariff equivalent of the NTM class

Improved and more transparent trade processes and systems

DETAILS EXPECTED RESULTS BY 2023

Integrated Trade Management Systems Weighted Average: less than 2 days
Customs Efficiency Enhancements Weighted Average: >15%; Mombasa to Malaba = 5 days 12 hrs; Mombasa to Nairobi: 2days 12hrs

Improved regulatory environment for trade

DETAILS EXPECTED RESULTS BY 2023

Implementation of WTO Agreements 75% of the National Trade Facilitation Committee work plan actions implemented
Trade Policy Trade development bill and trade remedies enacted and 20% of action plan implemented; agribusiness policy and legislation implemented; regulatory and legislative reforms for textiles and apparel manufacturers developed and implemented

OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE

Better private sector-led advocacy for trade

DETAILS EXPECTED RESULTS BY 2023

Developing Private-Public Dialogue (PPD) dialogue platforms for PSO/CSOs 35 in total

Increased efficiency in private sector logistic service

DETAILS EXPECTED RESULTS BY 2023

Capacity Development for Logistics Industry 30% reduction in price of logistics services

Increased export capacity of East African businesses

DETAILS EXPECTED RESULTS BY 2023

Export Growth for Export-ready businesses 30% increase in volume; up to $ 60 million; 80,000 SMEs

Greater inclusion of women and small businesses in trade

DETAILS EXPECTED RESULTS BY 2023

Capacity Building for Women Traders and producers % number of women traders increased

Increased Physical Access to Markets

DETAILS RESULTS TO DATE
Mombasa Port modernisation and upgrade • Contributed to reduced average time to import goods through the port from 11 days to 6.5 days and export of goods from 11 days to 6.8 days • TMEA’s investment at the Port has also catalysed over US$225 Million from a multilateral donor fund for berth upgrades to enable the port to handle larger vessels
One Stop Border Posts at Malaba, Busia and Taveta
  • Taveta OSBP completed and launched in Feb 2016
  • Busia OSBP completed and handed over.
  • Malaba OSBP expected to be completed and handed over by end of June 2016

Enhanced Trade Environment

DETAILS RESULTS TO DATE
Support ICT trade systems and procedures within the public sector to improve the trade environment, increase efficiency, transparency and predictability of trade processes
  • Trade facilitation measures have led to the simplification of trade clearance procedures, transit and border formalities resulting in a reduction in turn-around time on the Northern Corridor from 18 to 6 days
  • Increase in revenue will be realised after on-going upgrade of the KRA customs system
Upgrade Kenya Bureau of Standards to support exports
  • Technical regulations, policy and Standards Bill drafted
  • Upgraded accuracy in testing for laboratories in order to access EU markets

Improved Business Competitiveness

DETAILS RESULTS TO DATE
Roll out of best agriculture practice for smallholder horticulture farmers 700 small-scale horticulture farmers received East Africa Good Agricultural Practices (EAGAP) certification, to enhance their compliance to Good Agricultural Practices (GAP) Standards and improve competitiveness and market access for their produce

Our Impact Stories

all impact stories

Ahmed Farah

Country Director, Kenya Country Programme at TradeMark East Africa (TMEA)

Ahmed has 20 years demonstrable experience working with illustrious institutions in providing advisory and assurance services on strategy, policy and operational matters relating to economic development.

Ahmed is an international development practitioner who possesses an MA in International Development (Poverty, Conflict and Reconstruction) from University of Manchester, UK, and a Bachelor of Commerce (Accounting) from Kenyatta University. He is also a member of Institute of Certified Public Accountants of Kenya (ICPAK), a member of the Institute of Internal Auditors (IIA), and associate member of Certified Fraud Examiners (CFE).

Stay updated

Our Projects are transforming Eastern Africa.

Learn More

Quick Contacts

Our Global Donors