TRADE AND INVESTMENT
Source: Kenya National Bureau of Statistics Economic Survey 2020
Kenya-Israel Trade and Economic Cooperation
Bilateral Trade between Kenya and Israel has been increasing steadily over the years. In 2018, the average value of Kenya’s export to Israel stood at slightly above Kshs. 1.4 Billion while imports were Kshs. 6.8 Billion with a trade balance of Kshs. 5.5 Billion in favour of Israel. Kenya’s main exports to the State of Israel are agricultural based while main imports from Israel consists of manufactured goods, farm implements including fertilizers, chemicals and high technology goods. Trade relations between the two countries have been on an upward trajectory.
Israel’s export to Kenya in 2018 fell from $72 M the previous year to $54 Million while imports from Kenya rose from $7 M to $11M. The exports from Israel to Kenya include Machinery (electrical equipment), Machinery (mechanical equipment), Plastics, chemical products and fertilizers while Israel imported Fish, fruits and nuts, straw products, vegetable preparations as well as coffee and tea.
Source: Kenya National Bureau of Statistics Economic Survey 2020
GOOD REASONS TO INVEST IN KENYA
- A Range of Tax Treaties and Investment Promotion and Protection Agreements
- A Stable Pro-Investment Government
- Business Friendly Regulatory Reforms
- Large Pool of Skilled English Speaking Enterprising Workers
- Strategic Location as a Regional Financial, Communication and Transportation Hub
- Well Developed Social and Physical Infrastructure
- Fully Liberalized Economy
- Preferential Market Access within the Region the European Union (EU) Americas and Asia
- Well Established Local and Foreign Private Sector
INVESTMENT OPPORTUNITIES IN KENYA
Agriculture
Agriculture is the mainstay of the economy, providing livelihood to approximately 75 per cent of the population. There is considerable scope for diversification and expansion in the agricultural sector through accelerated food crop production and increase of non-traditional exports. There are also opportunities for improvement in technological infrastructure such as packaging, storage, and transportation. Intensified irrigation and additional value added processing are marketable areas for investments.
Investment opportunities also exist in seed production, manufacture of sprayers and pesticides, veterinary services, construction of dams and bore holes, installation of irrigation systems and services. Opportunities also exist in support services, such as cold storage facilities and refrigerated transport for horticultural and other perishable products.
INVESTING IN KENYA
Enabling Business Environment
In order to create an enabling business environment for investors, the Government of Kenya has taken various steps including the following:
- Nurturing democracy by upholding of the rule of law by promoting a sense of inclusiveness in government policies and decisions, enhancement of national security through judicial and police reforms.
- Dedication of higher budgetary allocation to the infrastructure sector development including roads, schools and hospitals,
- The government has divested in non-core Parastatals (State Corperations),
- To address the issue of climate change, the country is keen on moving to green energy.
- In order to reduce bureaucracy, a one stop shop has been set up at the Kenya Investment Authority.
- The government has also established a Public Private Partnership (PPP) Committee chaired by Kenya’s Prime Minister.
- The government is working to stamp out cases of corruption in the country once for all through the revamping of Kenya Anti Corruption Commission (KACC).