Keproba says Africa is a “priority” market for expansion of Kenya’s factories, which have in recent years struggled to grow or protect market share on the continent.
The outbreak of coronavirus has hurt inflow of cheaper imports into the region after China put factories on a near lockdown to contain the contagious disease.
Kenya’s key export market, Europe, has on the other hand become the epicentre of new infections, threatening market access for the country’s agricultural produce.
Kenya will facilitate the setting up of distribution outlets for her manufacturers in Africa to reclaim lost turf in the wake of disrupted supply chains, the exports agency has said.
The Kenya Export Promotion and Branding Agency (Keproba) says Africa is a “priority” market for expansion of Kenya’s factories, which have in recent years struggled to grow or protect market share on the continent.
The outbreak of coronavirus has hurt inflow of cheaper imports into the region after China put factories on a near lockdown to contain the contagious disease.
Kenya’s key export market, Europe, has on the other hand become the epicentre of new infections, threatening market access for the country’s agricultural produce.
“Kenya seeks to establish distribution channels in Africa to promote win-win exports strategies for the advancement of our country. It’s about buy Kenya, build Africa,” Keproba chief executive Peter Biwott said.
“Kenya already is a front-runner in championing regional trade. Africa remains the most lucrative market … (and) is also endowed with human and natural resources which is why it remains a priority for expansion of the manufacturing sector.”
The Kenya Private Sector Alliance (Kepsa), the umbrella body for businesses, said last week rising shutdowns of trade and travel channels in major global markets, especially China, present a growth opportunity for Kenyan firms.
Majority of Kenyan factories, Kepsa’s head of policy research analysis and public-private dialogue Victor Ogalo said, have in the last decade been operating at suboptimal capacity, having lost their grip on the East African Community market to cheaper imports especially from China.
Mr Biwott cited value added products such as edible oils, milk, shoes, textiles, assorted products and food supplements as the low-lying fruits for Kenyan firms seeking new markets on the continent.
“Investing in the continent is a form of export that assists to overcome trade barriers and is a way to achieve increased trade and job creation in Africa. It’s a win-win strategy that will enhance shared growth on the continent,” Mr Biwott said.
Kepsa has asked the government to give targeted incentives such as tax breaks and release of value added tax refunds to manufacturers to help them expand capacity and substitute some imports.
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