|
| |
Main economic indicators
|
Population |
32.16m (2003) |
| Real GDP
growth (%) |
1.75 (2003) |
Consumer
Price Inflation
(Average annual) |
9.72 (April
2004) |
| Average
Exchange rate
K.Sh./US$
K.Sh/£ |
76.39 (Mar 2004)
142.6 (Mar
2004) |
Performance of the Kenyan
Economy
Kenya
embarked on a comprehensive programme of
economic reforms designed to deregulate the
economy and put it on the path of rapid
employment generating growth.
Sustained effort by the government to tighten
fiscal and monetary policies since mid 1993 has
been effective in stabilizing the economy and
contributing to the revival of economic growth.
Annual inflation has been contained to a single
digit. Tight control on the budget has been
accompanied by tax reforms aimed at reducing the
tax rates and broadening the tax base.
0n
structural reforms, the government has since
mid-1993 made significant strides. It has
eliminated exchange controls including
restrictions on inward portfolio investments and
removed all trade restrictions, except for a
short list of a few products controlled for
health, security and environmental reasons.
Stable
macro-economic conditions, liberalised markets,
and more operations of the strategic public
enterprises are expected to enhance the level
and the efficiency of private investment, and
result in increased income and job creation.
The government is supporting the Private Sector
and especially export-oriented industrialization
with a longer term objective of achieving the
status of a Newly Industrialised Country (NIC)
by the year 2020.
Direction of Trade
African
countries continue to be the major market for
Kenya’s exports followed by EU. In 2002 the
market share of total exports to African
countries and EU stood at 48.9% and 28.5%
respectively. Among the EU countries UK
continues to be the leading market for Kenyan
exports with a market share of 39.6% of exports
to the region. UK was Kenya’s second leading
destination for Kenyan exports after Uganda.
Source
of Imports
European
Union continues to be the leading source of
Kenya’s imports. In the Common Market for
Eastern and Southern Africa (COMESA), Uganda,
Tanzania and Egypt continue to be Kenya’s major
trading partners.
|
Exports to: |
%
of total |
Imports |
%
ot total |
| Uganda |
18.5 |
UK |
8.2 |
| UK |
11.6 |
UAE |
11.3 |
| Tanzania |
8.3 |
USA |
5.7 |
| Egypt |
4.0 |
Japan |
6.7 |
| Germany |
2.6 |
South Africa |
2.7 |
| EU |
28.5 |
EU |
34.5 |
| COMESA |
48.9 |
COMESA |
8.5 |
|
Principal Exports |
Principal Imports (2002) |
| Tea |
Industrial &
electrical machinery |
| Horticulture |
Refined petroleum
products |
| Coffee |
Motor vehicles and
chassis |
| Petroleum products |
Crude petroleum |
| Fish and fish
products |
Iron & steel |
| Cement |
Vegetable oils & fats |
| Soda Ash |
Resins & Plastics |
| Pyrethrum extract |
Pharmaceuticals |
| Sisal |
Wheat |
| Fluorspur |
Maize |
| Wattle |
Sugar |
| |
Fertilizers |
| |
Paper and paper
products |
Economic Regional Affiliation
Kenya is an active member of the following:
 |
Common Market for Eastern and
Southern Africa (COMESA)
|
|
East African Community (EAC)
|
|
Inter-governmental Authority
on Development (IGAD), while exports from
Kenya enjoy preferential market access under
the following arrangements:
|
|
EU market under -ACP (EU
Cotonou Agreement)
|
|
US under African Growth and
Opportunity Act (AGOA) and
|
|
Generalised System of
Preferences (GSP)
|
Business & Investment
Environment
The government encourages
investment and the Kenyan economy remains open to
foreign investors. There are no restrictions on
foreign investment, foreign ownership, and
repatriation of profits or capital.
Investment in the Export
Processing Zones (EPZs) and Manufacturing Under-Bond
(MUB) enjoys a 10 year tax holiday followed by 25%
tax rate for the next 10 years and exempt from
import duties, VAT, and Sales Tax.
Foreign ownership in listed
Kenyan companies is generally restricted to 40% in
the aggregate and 5% for each individual investors.
| There is
manufacturing - Under Bond Scheme in operation.
|
|
The Export Processing Zones Authority (EPZA)
operates in 39 Zones, (37 private, 2 public). |
Investment opportunities
Investment opportunities
exist in nearly all the sectors and especially in
agro based industries, machinery and building
materials, furniture and paper products, garments
and textiles, jewellery and watch manufacture, food
processing, cosmetics, pharmaceuticals, electronic
goods, solar technology products; IT/Data
processing, tourism, banking and financial services,
housing, roads, ports, railways and energy sector.
Guarantees to investors
The Kenya constitution
guarantees against expropriation of private property
except for purposes of public use or security and
guarantees prompt and fair compensation in the event
of such expropriation.
|
The Government guarantees repatriation of
capital and
|
|
Profits after payment of the necessary taxes.
|
|
Kenya is a member of Multilateral Investment
Guarantee
Agency (MIGA), a World Bank affiliate.
|
|
Kenya is also a member of International Centre
of
Settlement of Investment Disputes (ICSID). |
Taxation
Corporate tax presently
stands at 30%. Withholding tax on dividends is 5%.
However inter-corporate dividend payments between
closely held companies are exempt from withholding
tax. Dividends received by financial institutions as
trading income are not subject to tax.
Value Added Tax (VAT) is
levied on the supply of goods imported into or
manufactured in Kenya and taxable services imported
or provided in Kenya. The standard VAT rate is 16%.
Restaurant services are taxable at 16%.
Unprocessed agricultural
products are exempt from VAT. Inputs into health
care, education and agricultural sectors are zero
rated. All exports of goods and services are zero
rated.
Excise duties are levied on
beer, tobacco products, matches, spirits, wines,
mineral water and biscuits (confectioneries).
Personal tax is charged on
the income earned in Kenya by any person resident in
Kenya. Individual income tax is taxable at rates
graduated to 30%. Tax allowances are provided for
all individual taxpayers. Taxable income includes
all business income, employment income, dividends,
interest and property income.
Privatisation
Privatisation and
restructuring of parastatals and other state owned
companies has progressed well since 1994 and is
almost complete.
The government has reduced
its share holdings from the Kenya Commercial Bank,
National Bank of Kenya, Serena Hotels and Kenya
Airways.
Restructuring and
reforming of key public enterprises like the Kenya
Ports Authority (KPA), Kenya Railways (KR) the Kenya
Power and Lighting Company (KPLC) and Kenya Posts
and Telecommunications Corporation (KPTC) have
already taken place, and as a result we have the
Kenya Electricity Generating Company (KemGen) and
the Kenya Power and Lighting Company (KPL)
respectively and for telecommunications we have
Postal Corporation of Kenya, Telkom Kenya Ltd. and
the Communication Commission of Kenya (CCK).
Contact
addresses in London
Contact
addresses In Kenya
Depart of External Trade,
Ministry of Trade & Industry,
P.0. Box 43137,
NAIROBI
Tel: 00254-20-315001/331030710923
Fax: 00254-20-315011
e-mail:
kextrade@africaonline.co.ke |
Export Processing Zones
Authority (EPZA)
Export Promotion Council
(EPC)
Investment
Promotion Centre (IPC)
Kenya
Bureau of Standards
Kenya
Revenue Authority
Cotecna
International
|
3rd
Floor, Holdsworth House,
65-73 Staines Road,
Hounslow, Middlesex.
TW3 3HW
Tel. : 020 8277 7700
Fax.: 020 8277 7801/7809 |
Other
Important Addresses
|
Fresh Products Exporters Association of
Kenya (FPEAK)
P.0.Box 40312,
NAIROBI
NAIROBI
Tel: 00254-20-827260/1/2
Fax: 00254-20-827264
e-mail:
fpeak@form-net.com
Horticultural Crops Development Authority
(HCDA),
P.0. Box 4260l,
NAIROBI
Tel: 0025420 827260/1/2
Fax: 0025420 827264
Website:
http://www.hcda.or.ke
Federation
of Kenya Employers (FKE),
Waajiri House,
Argwings Kodhek Road, Milimani,
P.0.Box 48311,
NAIROBI
Tel: 00254-20-711929/48/49/52
Fax: 00254-2-721990
e-mail:
fke@arcc.or.ke
Website:
http://www.fke-kenya.org
Capital
Markets Authority (CMA)
Re-insurance Plaza, Taifa Road,
P.0.Box 74800,
NAIROBI
Tel: 00254-20-221910/221869
Fax: 00254-20-228254
e-mail:
corporate@cma.or.ke
Website:
http://www.cma.or.ke/
Nairobi
Stock Exchange (NSE)
Nation Centre, 1st Floor, Kimathi Street,
P.0.Box 43833,
NAIROBI
Tel: 00254-20-230692
Fax: 00254-20-224200
Website:
http://www.nse.co.ke
Kenya
Association of Manufacturers (KAM)
Peponi Road, Westlands,
P.0. Box 30225,
NAIROBI
Tel: 00254-20-746005/7, 746021/22
Fax: 00254-20-746028, 746030
E-Mail:
kam@iconnect.co.ke
Website:
http://www.kenyamanufacturers.org
Kenya
National Chamber of Commerce and Industry
(KNCCI)
Ufanisi House,
Haile Selassie Avenue,
P.0.Box 47024,
NAIROBI
Tel: 00254-20-228016/334413
Fax: 00254-2-334293
e-mail:
kncci@swiftkenya.com
Pyrethrum
Board of Kenya
P.0. Box 420,
NAKURU
Tel: 211567, 211572
Fax: 45274
Kenya Sisal Board,
P.0. Box 41179,
NAIROBI
Tel: 0025420- 223457, 336931, 337766
Fax: 0025420- 240091
Tea Board of
Kenya,
P.0.Box 20064,
NAIROBI
Tel: 0025420-572421/572497/574445/6
Fax: 0025420-562120
e-mail:
teaboardk@kenyaweb.com
Website:
http://www.teaboard.or.ke
Central Bank
of Kenya,
P.0. Box 60000,
NAIROBI
Tel: 0025420-226431/246000
Fax: 0025420-340192
e-mail:
info@centralbank.go.ke
website:
http://www.centralbank.go.ke
|
|
|
|
|
|
