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Analysis

Increased exploration and new legislation benefits mining in Kenya
OBG
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Kenya’s most aggressive push to develop its mining sector dates back to 2013, when President Uhuru Kenyatta was recently elected and established the country’s mining ministry. While no major deposits are known to be ready for exploitation – as is now the case in the energy sector, where recent discoveries are likely to contribute a major new revenue stream – Kenya does have several small and…

Analysis

Horticulture in Kenya supports niche export products
OBG
plus

While much of Kenyan agriculture is comprised of subsistence and small-scale farming of crops like maise and sorghum, cash crops have become the country’s greatest foreign exchange earner. The country’s largest earners – tea and horticulture – had been in decline due to falling commodities prices and delays in arranging new trade treaties, but investment in processing facilities has created…

Analysis

A growing population and urbanisation feeds Kenya's cement industry
OBG
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The story of cement in Kenya in the last five years largely tracks that of the construction industry in general. As the government has announced a raft of infrastructure projects and the construction sector has experienced double-digit growth, so has the consumption of cement shot up. However, unlike many markets that are experiencing a construction boom, in Kenya there has been little pressure on…

Analysis

Recent reforms address Kenya's land acquisition challenges
OBG
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The land acquisition process in Kenya has been seen as an obstacle in the past, but is improving, following the April 2014 decision of the newly-established National Land Commission (NLC) to seek the Supreme Court’s opinion regarding its functions and responsibilities against those of the Ministry of Lands, Housing and Urban Development (MLHUD). The decision, which re-iterated MLHUD’s responsibility…

Analysis

Regional integration a focus for Kenya's government
OBG
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As the largest economy in East Africa, Kenya has long played an important role in regional politics and trade deals. It is a founding member of both the EAC and the Common Market for Eastern and Southern Africa (COMESA) and, as such, has also been a key player in the negotiations forming the Tripartite Free Trade Area (TFTA). The latter was officially agreed upon in 2015, but needs to be ratified…

Analysis

New hotels and venues in Kenya serve growing conference tourism
OBG
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Kenya has seen a steady rise in tourist arrivals for meetings, incentives, conferences and exhibitions (MICE) over the past few years. In 2015 the country hosted 117,630 foreign arrivals taking part in MICE activities, representing a 13% increase on the 2014 total, and 15.6% of all international tourist arrivals for the year. To boost the segment, in September 2016 Najib Balala, cabinet secretary…

Analysis

The EAC helps maintain growth in the region
OBG
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While efforts at regional integration on the continent have had mixed results, the EAC has been a standout success. The trading and Customs bloc has become an increasingly important driver of sub-regional growth and development, to an extent that far outstrips the performance of other African economic communities such as ECOWAS in West Africa or CEMAC in Central Africa. This is clear in terms of trade,…

Analysis

Doing business in Kenya starts with engaging local communities
OBG
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Ensuring clear frameworks for land rights, local content and legal authority are priorities for a variety of sectors in countries around the world. Kenya is no exception and authorities have been working to address these issues, which have come to the forefront as part of the current devolution process. Since the process was first legislated in 2010 — and began in earnest in 2013 — the devolution…

Analysis

Bonds fund large-scale infrastructure projects in Kenya
OBG
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In 2014 Kenya sold its maiden eurobond, raising $2.8bn in the process. It was an important step forward as accessing dollar-based credit has been crucial to scaling up infrastructure spending and has helped diversify funding sources. Current State As of late 2016 the total amount of debt as a percentage of GDP was well within manageable ranges, and Kenya’s sovereign credit ratings are among the…

Analysis

International deals move Kenya forward
OBG
plus

Since assuming office in 2013, President Uhuru Kenyatta has been busy reaching out to old allies in the West, such as the UK and the US, and strengthening relationships with rising powers, such as China and India. As the economic heavyweight of East Africa, the country has also played an important role in efforts at regional integration and at trying to resolve some of the transnational issues facing…