Download Investment Opportunities in Kenya

Embassy of the Republic of Kenya
ANKARA
Amb. Hon. Kiema Kilonzo
Tel. +90 312 491 45 08
1
Kenya at a Glance
12. COMESA
Exports (2013,
US$)
1.6 billion
1. Population
42 million (2013 est.)
with population growth
rate of 2.67 percent
3. GDP growth rate (2013)
5.7%
2. GDP at current US$
(2013)
US$ 55.2 billion
4. Political System
Unitary State with
Multiparty Democracy
5. Area
582,646 km2
11. Total
Exports (2013,
US$)
5.8 billion
6. Languages
Swahili and English are
official languages.
10. GDP per
capita (2013)
US$ 1,246
9. Inflation (January
2015)
5.5 %
8. Regional Hub
Strategic geographic location
with
Good infrastructure
7. Climate
Kenya lies on both sides of
the equator and enjoys a
varied climate ranging from
tropical to temperate
Kenya’s Competitiveness
9th largest economy in Africa
‘‘Nairobi ranked as the most intelligent city
in Africa’’, CNN
Eritrea
Djibouti
7th largest global geothermal producer
Ethiopia
‘‘7th most promising global investment
destination’’, Fortune Magazine
South
Sudan
Somalia
Uganda
Kenya
Kenya is the economic, commercial &
logistics hub in the region
Kenya is the gateway to EAC & COMESA
Rwanda
Burundi
Tanzania
Kenya has one of the seven wonders of the
world- “great wildebeest migration”
‘‘Diani Beach in Kwale County among the top
25 beaches in the world’’, Trip advisor
3
‘‘Kenya has been declared as third fastest growing economy at 6
percent in 2015’’
4
Nairobi hosts
UN
Africa
Headquarters,
UNEP & UNHabitat, hence
home of UN
agencies
outside the US
& Europe
5

Kenya is the economic, commercial
and logistical hub in East African
region (largest & most developed
economy),

Large pool of educated, skilled,
enterprising & English speaking
labor force(70% of the population is
under 35 years)

Well established and mature private
sector plus strong entrepreneurial
tradition,
6

Macroeconomic stability-stable exchange rate,low inflation, strong
growth, financial services hub.

Membership to regional trading blocs of COMESA & EAC,- market
of over 385m people (commitment & support to regional
integration),

Potential for exploration and exploitation of mineral & natural
resources (Major discovery of oil in Turkana & natural gas on
coastal areas.

Differentiated wages depending on location with minimum wage
being USD 100
7

Fully liberalized economy (no exchange controls hence guarantee on
repatriation of capital, profits and interests, residents and non-residents
can open foreign currency accounts with domestic banks),

Relatively well developed infrastructure,

Favourable weather,

Well developed Financial Sector.
8





Tax Benefits under Exports
Promotion Zone (EPZ)
Duty and VAT free importation of
inputs for production of export
products within specified zones,
10 year corporate income tax
holiday and a 25% tax rate for a
further 10 years thereafter (except for
EPZ commercial enterprises),
10 year withholding tax holiday on
dividends and other remittances to
non-resident partie(except for EPZ
commercial licence enterprises)
Perpetual exemption from payment
of stamp duty on legal instruments




100% investment deduction on
new investment in EPZ buildings
and machinery,
Manufacture under bond: Allows
for duty and VAT free importation
but require that corporation tax be
paid,
Tax Remissions Export
Office(TREO): TREO primarily
involves VAT refunds, since duty
on most of their inputs is already
at 0%
Perpetual exemption from VAT
and customs import duty on
inputs –VAT exemption also
applies on local purchases of goods
and services supplied by companies
in the Kenyan customs territory or
domestic market.
9

Key Business & Investment Opportunities available for direct investment,
joint ventures or Public Private Partnerships (PPPs) exist in:

Tourism & Hotel and Resort Sector

Agriculture;

Transport & Infrastructure;- regional infrastructure- LAPSSET

Manufacturing;

Information & Communication Technology;

Energy & mining; and

Building & Construction.
10
“To be a top 10 haul tourist destination with a high-end, diverse and
distinctive visitor experience aimed at increasing contribution to GDP”
An Elephant family-member
of the ‘big five’
Pride of African Lions: Kings
of the Jungle
11
Masai Mara National Reserve
7th wonder of the world
Earth’s GREATEST single movement of animals
12
Tourism is one of Kenya's leading
foreign exchange earner and third
largest contributor to the GDP after
agriculture and manufacturing

Kenya is naturally endowed
with:
Attractive Tourist Sites;
Rich Culture;
Striking geographical
diversity and landscapes
(Sandy Coastal Beaches,
Animal Parks);
Sportsmen & Women.
 Abundant wildlife including the
‘big five’ in their natural habitats
 Archeological Sites-Kenya ‘the cradle of mankind’
13
 Enormous





investment opportunities exist in:
Accommodation (Resort Cities, High end
international hotels & lodges in parks),
Sports Tourism (Sports facilities &
Stadia),
Recreation & Entertainment
facilities(Health Spas projects, amusement
parks),
Film Production,
Cruise Ship Tourism.
Tsavo National Park
Kenya Sandy Beaches
14
 As from January 2014,
Kenya,Uganda & Rwanda
launched a single tourist
visa to boost regional travel
and create opportunities for
tourists to explore the
diversity of East Africa!
Kenya Sandy Beaches
15
Maize Plantation
Farmers harvesting Tea
Agriculture is the mainstay of the Kenyan economy directly contributing
26 per cent of the GDP annually, and another 25 per cent indirectly &
accounts for 65% of Kenya’s exports.
16





Kenya produces and exports some of
the world’s best tea and coffee among
other agricultural products.
Massive opportunities exist in:
Production infrastructure
(Development of multipurpose dams
& irrigation Schemes);
Market infrastructure (post harvest
management facilities, cold storage
facilities as well as Warehousing
Receipting)
Value Addition (Tea, Coffee, Fruits,
e.t.c)
17

Kenya is a prime supplier of basic goods in East &
Central African markets and numerous opportunities
exist in:
 Agro-processing (processing fresh foods, fruits & vegetables);
 Hides, Skins & Leather (Leather processing, footwear & leather
products);
 Horticulture ( Facilities for freezing fruits & vegetables);
 Textile & Clothing (garments manufacture for exports to US
under African Growth Opportunity Act (AGOA) facility);
 Fertilizer & Pesticides Manufacturing;
 Cement Production;
 Tire manufacturing;
18
◦
◦
◦
◦
Plastics & Rubber Products;
Pharmaceutical Industry;
Motor Vehicle Component Manufacturing;
Iron & Steel Industry.
19

Electric Power supply in Kenya
falls far below the demand &
golden opportunities exist in:
Geothermal Development;
Renewable Energy (Solar, Wind,
Bio-Fuel);
Coal, Oil and natural gas
exploration;
Transformer Manufacturing.
Government to connect at least one
million new consumers in the next five
years
Wind Power Fans in Kenya
20


Kenya is endowed with a
wide range of mineral
resources.
Opportunities exist in:
Mineral exploitation(Soda
Ash, Limestone, Flourspar,
Gemstones, Titanium, etc);
Value addition through joint
ventures.
21

Opportunities in this sector exist in:
Development of Nairobi
Metropolitan mass transit
system(Bus Rapid System &
light rail system);
Construction of standard gauge
rail way (Nairobi-Malaba);
Construction & maintenance of
Roads via PPP;
Massive opportunities also exist
in the newly created Counties
22
LAPSSET CORRIDOR PROJECT
8 Project Components
 LAPSSET Corridor Project is a
‘Kenya Vision 2030’ flagship project
aimed
at
Building
Africas’
Transformative and Game Changer
Infrastructure to Deliver a Just and
Prosperous Kenya.
1 Lamu Port
2 Railway Line
3 Highway
4 Crude Oil Pipeline
Product Pipeline
 The LAPSSET Corridor Project
covers over half of the country with
a planned investment resource
equivalent to half of Kenya’s GDP
for the core investment alone.
Feasibility statistics shows that the
project will inject between 2% to 3%
of GDP into the economy.
5 Oil Refinery
6 Resort Cities
7 Airports
8 SUPPORT
INFRASTRUCTURE
High Grand Falls
--- Lamu Metropolis
23

Opportunities exist in the following
areas under Public Private
Partnership arrangement:
 Construction of ICT parks
 Software & Hardware
Development
 Business Process Outsourcing
services
 Call centres for both in bound
and outbound calls
24




The industry is well-developed with
quality engineering, building and
architectural design services being
readily available.
There is high demand of houses
particularly in the urban areas across
the country following re-habilitation
and reconstruction of roads and
bridges under the Kenya Urban
Transport Infrastructure Program
Massive opportunities exist in
construction of low cost houses.
Government targets to put up at least
250,000 housing units per year.
25
The scope includes provision of new infrastructure, and the
expansion and refurbishment of existing ones such as:
 Power generation plants and transmission/ distribution networks;
 Transport (ports, airports, railways, roads and bridges);
 Inland container depots and logistics hubs;
 Petroleum infrastructure, such as storage depots and distribution
pipelines etc.;
 Information technology systems;
 Water supply, treatment and distribution systems;
 Solid waste management; and
 Social infrastructure for housing, health care, prisons, and teaching
facilities
26
27