Market Access & Trade
Connecting Kenya to Global Markets
Kenya Market at a Glance
Kenya serves as an economic, commercial, financial, and logistics hub in East Africa, with a proven track record of success in attracting foreign direct investment (FDI). In 2019, Kenya attracted US$ 351 million in capital costs and US$ 1.151 billion in FDI and other investment, demonstrating its strong appeal to international investors.
Kenya has significantly improved its ranking in the World Bank’s Ease of Doing Business (EODB) index, achieving 56th position globally and ranking as the 3rd most competitive country in Africa after Mauritius and Rwanda. The government remains committed to further regulatory reforms to enhance the business environment and attract more investment.
Kenya participates in various trade agreements and organizations that provide extensive market access. These include the Africa Growth and Opportunity Act (AGOA), World Trade Organization (WTO), EAC-EU Trade Agreement, East Africa Community (EAC) with a market of over 135 million people, Common Market for Eastern and Southern Africa (COMESA) with over 450 million people, and the African Continental Free Trade Area (AfCFTA) providing access to a market of 1.2 billion people with a combined GDP of over $2 trillion.
Key Economic Drivers
?Kenya has a population of about ~54.7 million and is growing at a rate of 2.3% p.a (World Bank 2020). Further, in 2020, the urban population increased by 28% of the country’s population compared to 9.8 % in 1969, leading to increased consumer demand for high-value goods. Investors investing in the Special Economic zones are therefore assured of a local market for their goods.
Kenya’s location makes it a gateway to East and Central Africa. With the Indian Ocean to its South-East, Kenya is bordered by Tanzania to the South, Uganda to the West, South Sudan to the North-West, Ethiopia to the North and Somalia to the North-East. Kenya has vast connections with neighboring and foreign countries as follows;
- Sea Connection
- Road Connection
- Air Connection
This strategic location makes Kenya desirable location for investors looking to invest in the Special Economic Zones as they can access the Eastern, Central and South Africa Markets.
Kenya is a member of trade arrangements and a beneficiary of trade promotion schemes that include Africa Growth and Opportunity Act (AGOA), World Trade Organization, and the EAC-EU Trade Agreement.
It is also a member of the East Africa Community (EAC) with a market with over 135 million people as well as the Common Market for Eastern and Southern Africa (COMESA) with a market of over 450 million people.
In March of 2018, Kenya became a signatory to the African Continental Free Trade Area agreement that paves the way for frictionless trade across Africa giving investors access to a market of 1.2 billion people with a combined gross domestic product (GDP) of more than $2 trillion.
Kenya has duty free and quota free access to a $40 trillion GDP market (USA, $19.4T, EU $17.4T, UK $2.62T, COMESA $735 BN) with a target market of approximately 1.7 billion people.
Further, the country has the trust of reputable global buyers with brands such as Levi’s, H&M, Vanity Fair, PVH, TCP, Wrangler, JC Penny and Otto already sourcing raw materials from Kenya. Investing in Kenya’s Special Economic Zones, therefore, translates to access to these established global supply chains and premium markets.