Kenya Industry

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Being better integrated than many African markets into global trade flows has brought opportunities and challenges for Kenya. As it looks to increase regional integration through the East African Community (EAC) in the hope of expanding opportunities for exporters, the country has to balance this against a sometimes competing priority of boosting trade with the EU....

A rarity for many African markets, home-grown businesses form a significant proportion of Kenya’s modern retail sector. With consumption levels rising, a number of outlets are using growth in the domestic market as a platform for regional expansion. Competition is tight and the informal market continues to play a big role, but the sector is dynamic.

Kenya’s government is currently considering the final iteration of a bill that would establish three special economic zones (SEZs) within the country. The SEZs will allow lower levels of taxation and fewer regulatory hurdles, and will focus primarily on industrial activity, in particular textile production. The SEZ bill is part of a broader initiative to boost the manufacturing sector, diversify the country’s exports and encourage the creation of up to 1m industrial jobs annually.
A nascent mining industry is forming in Kenya, with the first large-scale mining project expected to begin exports this month, although a spate of changes to the regulatory framework over the past 18 months has made for a tighter operating environment for producers.

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