USA-Kenya Chamber of CommerceUSA-Kenya Chamber of Commerce

OVERVIEW

www.uskcc.org

JUNE 2008

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VISION: Enhance mutual partnership and investment between the USA and Kenya.

Mission Strategy

Enhance investment partnerships between US & Kenyan businesses.

Build a network of business professionals

Build familiarity with Kenya and the US & related business climates & opportunities

Encourage foreign investment in Kenya.

Create awareness about the Kenyan economy, political stability, business opportunities and support, business policies and regulations

Illuminate existing business opportunities in Kenya and the US.

Build awareness of business opportunities amongst potential & existing investors.

Foster idea exchange about current and potential markets for goods and services.

Identify markets in the US for Kenyan goods & services and vice versa.

Build relationships with regional US and other country chambers of commerce

Build relationships with US government officials

Build relationships with US big businesses

Build relationships with marketing firms (initially one in Kenya, one in US)

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VISION: Enhance mutual partnership and investment between the USA and Kenya.

Mission Strategy

Foster networks between Kenyan and US business professionals.

Identify common areas of business interest and gaps.

Influence business policy making to support and facilitate business ventures.

Influence incentives that drive & support economic development in Kenya.

Influence, contribute to and participate in policy making.

Attract investors who will improve Kenyan infrastructure.

Provide guidance, information and support needed to expedite investment in Kenya.

Build Kenya specific knowledge that will expedite investment in Kenya.

MESSAGE TO ALL INVESTORS

Africa is geographically advantaged having rich natural resources with huge potential and will be the new development frontier of the 21st Century. The continent has its centre of stability and progress and Kenya is one of them.

INTRODUCTIONINTRODUCTION

Your Ultimate Investment PartnerYour Ultimate Investment Partner

The Republic of Kenya is in East Africa and neighbours Ethiopia, Somalia, Tanzania, Uganda, Sudan.

Size:582,646 sq kms.Population:36.1 million (2006)GDP:$20 billion(2005Per capita:$3,000

Kenya is a member of UN, AU, EAC, COMESA, ACP, Non Aligned Movement, and WTO among others. It hosts headquarters of UNEP and Habitat. Kenya is also a regional headquarters for numerous international and NGO Agencies. It also hosts regional offices of World Bank, IMF, IFC, WHO, UNDP, UNHCR, UNESCO, East African Development Bank, Eastern and Southern African Trade and Development Bank (PTA Bank) among others. 

Economic Growth

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2002 2003 2004 2005 2006 2007

GDP

INDICATORS Tourism Growth by

over 1.6 Million Visitors –Yr 2006 with earnings increasing to Kshs 56.2 Billion. International arrivals have hit over 1.6 million in 2006 with US surpassing Germany in terms of arrivals and second after UK.

INDICATORS

Nairobi Stock Exchange (NSE) Capitalisation of the Nairobi Stock Exchange has grown

tremendously and further growth is expected with new IPO’s ie Safaricom and Telkom

TAX INCENTIVES AVAILABLE IN KENYA

Tax incentives are mainly in place to promote investment or exports. Major tax incentives available include:

Investment Deduction Allowances (IDA): introduced in 1991 to encourage new investment,

Industrial Building Allowance: granted on cost of construction of buildings used for manufacturing purposes and also hotel premises,

Capital Expenditure on agricultural land: targeted at farmers who incur capital expenditure in the course of their operations

Mining deduction allowance: granted to businessmen involved in mining,

Import duty set off: allows import duty paid on import of capital equipment to be set off against income tax payable

TAX INCENTIVES AVAILABLE IN KENYA

Export Processing Zones: allow for duty and VAT free importation of inputs for production of export products within specified zones. Incentives include 10 year tax holiday, exemptions from stamp duty, non liability on income tax for non resident employees, etc,

TAX INCENTIVES

Manufacture under bond: also allow for duty and VAT free importation but require that corporation tax be paid,

Tax Remissions Export Office: TREO primarily involves VAT refunds since duty on most of their inputs is already at 0%

KNOWLEDGE BASED INDUSTRIES

Research & development Biotechnology Science & Industrial parks Information Technology enabled services Assembly lines

Technology & Opportunities Fibre Optic cable Telecommunications Information and Communication Business process Oportunities

Fibre Optic cable eCommerce legislation (2009) Back office operations and call centers Software development and consultancy Internet services, web development Hardware assembly and repairs

Privatization of telecommunication providers Provision of Information and Communication Training for growing market Provision of fixed telephone services Development of broad band Infrastructure Investment in digital radio and television    Alternative energy       

TRADE AND INVESTMENT OPPORTUNITIES- For Who?

Foreign Investors Importers Kenyans in the Diaspora Development Partners International Institutions etc

KENYA- AN INDUSTRIAL AND SERVICES HUB IN THE EA REGION

Barclays Bank

British American Tobacco

Nation Media Group

Shell

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Technology & Opportunities Function of USKCC

Networking opportunities Workshops Updates on major projects impacting business Updates on policies impacting business Policy

Areas of interest Technology Infrastructure

Fiber Optic – track progress Telecommunications – key for BPO

Alternative energies Link a minimum of 2 companies to Kenya Enhance partnerships leading to:

pilot projects on green energy Commercialization of green energy

Training [programming languages, help desk support, analysis, data entry etc.]

Recent USKCC May 31st Event

Recent USKCC Event Business opportunities in the US & Kenya

3.5% growth even after post-election violence Ex-Im lending (comparison btw. China & other

regions of the world). AGOA (%age of oil export from Africa vs. other

goods and services). Health and existing gaps and opportunities. US Dept. of Commerce & services.

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Upcoming Events August 21st 2008: AGOA Workshop August 22nd 2008: Q3 report on African Trade and

Investment Opportunities (presented by Harambe group after visits to Kenya, Ghana, Nigeria, Tanzania and Ethiopia)

September 26th 2008: USKCC Annual Golf Classic. (co-sponsored by Ex-Im bank)

November 14th 2008: Business and Health Forum

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Questions?

Visit us at uskcc.org

For more information don’t forget to get a brochure