Required Report - public distribution

**Date:** 11/14/2006

**GAIN Report Number:** KE6010

KE6010

**Kenya**

**Exporter Guide**

**Update**

**2006**

**Approved by:**

![](media/image1.wmf)Kevin N. Smith

U.S. Embassy, Nairobi

**Prepared by:**

Carol N. Kamau

**Report Highlights:**

This guide serves as a resource for U.S. companies seeking to export
high value consumer-oriented products to Kenya and the greater East and
Central African region. Kenya\'s geographical location, industrial
development and regional economic integration make it a major gateway to
trade. This guide provides practical tips on local business practices,
consumer characteristics, food standards and regulations, import and
inspection procedures. It also highlights opportunities and best
high-value product prospects.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Nairobi \[KE1\]

\[KE\]

# Section I. Market Overview

[Structure of the Economy]{.underline}: Kenya\'s gross domestic product
(GDP) in 2005 was \$16.3 billion - small by world standards, but a
heavyweight in the region. The economy remains predominantly
agricultural (25% of total GDP), but is diverse by regional standards.
Transport and communications, propelled by an ongoing boom in cellular
telephony and related services, now account for 11% of the economy.
Manufacturing and wholesale/retail trade also account for about 11%
each. Government accounts for 14% of the economy.

[Recent Economic Performance]{.underline}: Kenya\'s economy continues an
encouraging recovery that began in 2003. The economy grew by 5.8% in
2005, up from 4.9% the previous year. Growth was broad-based, but was
especially strong in telecommunications, tourism, and horticulture.
Overall inflation rose to 10.3% in 2005, driven by higher oil prices and
higher drought-related food prices. The economy is expected to grow in
2006 by as much as 6%. Inflation is expected to drop sharply to around
5% thanks to lower food prices.

[General Trade]{.underline}: Kenya's overall trade deficit grew 81% from
\$1.6 billion in 2004 to \$2.9 billion in 2005, and the current account
deficit also worsened to \$1.6 billion, up from \$375 million in 2004.
Tea, horticulture (including fresh cut flowers), coffee, and textiles
are Kenya main exports. Tourism, foreign assistance, and remittances are
other large sources of foreign currency earnings and inflows.

[Key Trade Partners]{.underline}: Kenya\'s biggest collective trading
partner is the European Union (EU), which accounted for over 37% of
Kenya\'s total external trade in 2004. Common Market for Eastern and
Southern African (COMESA) countries came second with over 23% of total
trade. The U.S. accounted for almost 5% and China 3.6%.

[Regional Trade]{.underline}**:** Kenya is a member of both the Common
Market for Eastern and Southern Africa (COMESA) and the East African
Community (EAC). In January 2005, the EAC launched a customs union, and
there are plans for harmonization of policies in investment, services,
food standards, and other areas. Under the EAC Customs Union\'s Common
External Tariff (CET), tariffs on almonds, a U.S. export to the region,
increased from 5 to 25 per cent.

# U.S. Market Position

U.S. agricultural and food exports over the last five calendar years
(2000-2004) have averaged \$32.2 million. The most important exports in
dollar terms are wheat, corn and vegetable oils, averaging nearly 80
percent of U.S. agricultural shipments over the same period. A
significant portion of U.S. exports to Kenya is food aid and monetized
shipments under Food For Progress, Title II, P.L. 480 and/or Section
416(b). U.S. imports of agricultural and food products from Kenya have
averaged \$44.0 million over the same period. Coffee, tea and tree nuts
account for over 60 percent of these imports.

## Consumer Market

Kenya has a relatively well-educated population estimated at 33.5
million (2004 est.) and a strong entrepreneurial tradition. With 44% of
its population under the age of 15 years, Kenya has a high dependency
ratio. Nairobi, the capital, is the largest city and has the highest
population density. Most of the population in Nairobi is young - 18 to
37 years. Socio-economic surveys have categorized urban consumers based
on their monthly earnings:

-   Lower Income - monthly earnings below Kshs. 10,000 (US \$ 125); 29%
    of the total urban working population.

Middle Income - monthly earnings between Kshs. 10,000 and Kshs.40, 000
(US \$

-   125-500); 59% of the total urban working population.

-   Upper Income- monthly earnings of Kshs. 40,000 (US \$ 500) and
    above; 12% of the total urban working population.

The growing middle class (5-10% of the total population) and the large
expatriate community account for the relatively high demand for high
value consumer-oriented food items.

[General Consumer Tastes and Preferences]{.underline}

The Kenyan market is very sensitive to price. Most of the consumers base
their buying decisions more on price than quality. A big share of the
food items (over 70 per cent) in the retail and food service sectors are
locally manufactured, though there are some imported foodstuffs (refer
to HRI and Retail Food Sector Reports). Consumers have a limited
awareness of U.S. brands and product range.

[Commercial Environment]{.underline}

Good prospects exist for U.S. food and agricultural high value products
in the East African market. There is a growing supermarket industry and
competition is intense. Agents and distributors remain the key to
developing export of U.S. consumer-oriented food items. The dominant
supermarket chains in Kenya (Nakumatt, Uchumi, Tusker Mattresses and
Ukwala) are offering American high value products (nuts, snack foods,
salad dressings, soups and sauces, canned and pet foods, etc.).

Establishment of a personal relationship with importers is essential to
selling food products in Kenya. There is no established direct presence
of American distribution companies in Kenya. Appointing a sole
distribution agent in Kenya may be a good strategy for some products.
Currently, some Kenyan companies buy from U.S. suppliers and handle all
the details of importing. It is important to have a knowledgeable Kenyan
company involved on the import side to address the special
characteristics of the Kenyan market.

+-----------------------------------+-----------------------------------+
| # Advantages                      | # Challenges                      |
+-----------------------------------+-----------------------------------+
| On going restructuring of the     | Erratic and unpredictable policy  |
| Kenyan economy and encouraging    | shifts pose major challenges to   |
| economic recovery could enhance   | the traders. Kenyan government    |
| free trade. Kenya's geographical  | officials are constantly revising |
| location, industrial development  | import standards.                 |
| and being a member of regional    |                                   |
| trading blocs (EAC and COMESA),   |                                   |
| makes it a major gateway for      |                                   |
| trade in Eastern and Central      |                                   |
| African region.                   |                                   |
+-----------------------------------+-----------------------------------+
| Imported products have a positive | Long distance to the Kenyan       |
| image in the local market. U.S.   | market keeps U.S. shipping costs  |
| food products are associated with | high, resulting in high product   |
| high quality. There is a growing  | pricing. There are no direct      |
| expatriate community and middle   | flights or shipping routes to and |
| class in Kenya.                   | from the U.S.                     |
+-----------------------------------+-----------------------------------+
| U.S. producers offer quality and  | Kenyan consumers, importers and   |
| a wide range of high value        | retailers are not aware of the    |
| consumer oriented food products   | wide range of U.S. high value     |
|                                   | products. Likewise, U.S.          |
|                                   | exporters have limited knowledge  |
|                                   | of the Kenyan/East African market |
|                                   | and its potential.                |
+-----------------------------------+-----------------------------------+
| An expanding modern retailing     | High tariff rates and bureaucracy |
| food sector (supermarkets and     | involved in clearing imported     |
| hypermarket) due to a growing     | foodstuffs discourage importers   |
| urban population and exposure to  | interested in U.S. food products  |
| the western lifestyle.            |                                   |
+-----------------------------------+-----------------------------------+
| Progressive and experienced       | Relative proximity of South       |
| business leaders, thriving sales  | Africa and Europe to the East     |
| through established and informal  | African market increases          |
| market channels, strong interest  | competitive posture vis a vis     |
| in business innovation, product   | U.S.                              |
| development and a desire to       |                                   |
| network, form linkages, and       |                                   |
| alliances with U.S. businesses.   |                                   |
+-----------------------------------+-----------------------------------+

# Section II. Exporter Business Tips

The principles of customary business courtesy, especially replying
promptly to request for price quotations and orders, are a prerequisite
for exporting success.

In general, Kenyan business executives are relatively informal and open.
The use of first or surname name at an early stage of a business
relationship is acceptable. Friendship and mutual trust are highly
valued and once this trust is earned, a productive working relationship
can be expected.

Like anywhere else in the world, negotiation is paramount. Early Indian
and Arab influences in Kenya introduced haggling at retail level refined
into bargaining at wholesale and distribution levels. Thus, Kenyan
businessmen usually drive a hard bargain.

Business gifts are not common but business entertainment like lunches,
golf and cocktails help finalize major deals and agreements.

Kenyan businessmen appreciate quality and service and are ready to pay
extra if convinced of a product\'s overall superiority. The market is
very price sensitive, however, care must be taken to assure that the
delivery dates are closely maintained and that after-sales service is
promptly honored. While there are numerous factors that may interfere
with prompt shipment, the U.S. exporter should allow for additional
shipping time to Kenya and ensure the Kenyan buyer is continuously
updated on changes in shipping schedules and routing. It is better to
quote a later delivery date that can be guaranteed than an earlier one
that is not

completely certain. Since Kenyan importers generally do a lower volume
of business than the U.S. exporters, U.S. exporters should be ready to
sell smaller lots than is the custom in the U.S.

The U.S. exporter should maintain close liaison with the importer to
exchange information and ideas. The importer should serve as a good
source of market information and as appraiser of product market
acceptance. In most instances, mail, fax or telephone

calls are sufficient but understanding developed through periodic
personal visits is the best way to keep the importers apprized of new
developments and to resolve problems quickly.

Prompt acknowledgment of correspondence by fax or email is recommended.

As is the case in most markets, vigorous and sustained promotion is
often needed to launch new products.

[Food Standards Regulations]{.underline}

Imported foodstuffs must comply with standards stipulated by Kenya
Bureau of Standards (KEBS). In absence of these, Codex Alimentarius
(international) standards apply.

In relation to the retail and food service sectors, the most important
standards are the \"Labeling of prepackaged Foods-KS -05-40 Parts 1-4\",
which has guidelines on nutritional requirements and claims. The
standards are available from KEBS at a cost. **According to the
guidelines, labeling must show manufacture and expiry dates**,
**brand/trade name and country of origin, among other requirements**.
The label must be in English and/or Kiswahili language. Weights and
measure indicators must be in metric and imperial forms.

KEBS is currently reviewing all food standards and harmonizing with
other standards in the East African region. Imported foods with
non-nutritive sweeteners (e.g. aspartame, potassium cyclamate, sodium
saccharine etc.) are restricted. If imported, KEBS must be informed.

There is no current requirement to label foodstuffs that may contain
genetically modified ingredients. A draft policy on biotechnology and
related aspects is in place and under discussion by relevant
stakeholders.

For further details on Kenya's food and agricultural import regulations,
refer to [**FAIRS** **Report KE5011. **]{.underline}

## Container Sealing Requirements

Sealing of full container loads is required during physical inspection.
Exporters are required to give advance notice to SGS of container
stuffing arrangements.

[General Import Procedures]{.underline}

Agricultural goods and products imported into Kenya from overseas
countries are all subject to Government regulations as implemented by
the Kenya Revenue Authority (KRA) Customs and Excise Department, Kenya
Bureau of Standards (KEBS), Kenya Plant Health Inspectorate Service
(KEPHIS) and Department of Veterinary Services (DVS).

The Customs and Excise Department collects taxes including import duty,
excise duty (both on imports and locally manufactured products), and
value added tax (VAT) on imports. KEBS

inspects all imported processed foods and non-food items, while KEPHIS
certifies all exports and imports of bulk, raw agricultural products and
planting materials to ensure that they are free from pests and diseases.
DVS is the regulatory institution that certifies imports of meat and
livestock related products among other duties.  

There is no import licensing except for a few items restricted for
security, health or environmental issues detailed in the Imports,
Exports and Essential Supplies Act (Cap 502).

All imports procured by Kenyan based importers must be insured with
companies licensed to conduct business in Kenya.

## General Inspection Procedures

Effective September 29^th^, 2005, Kenya Bureau of Standards (KEBS)
implemented the Pre-Export Verification of Conformity (PVoC) to
standards program as a conformity assessment and verification procedure
applied to imported products. The system has replaced pre-shipment
inspection for imported goods. The government through KEBS, appointed
Societe Generale de Surveillance (SGS) and Intertek to run the PVoC
program. The Americas (North, Central & South) & the Caribbean fall
under SGS'es zone of responsibility. Exporters should ensure that food
products meet regulations and quality requirements as stipulated by
Kenya before shipment by carrying out tests and/or obtaining the
necessary certification from the appointed PVoC partners. SGS is the
appointed inspection company for the U.S.

## Request for Certification 

The Electronic Import Declaration Form (IDF) data is obtained from KEBS.
The SGS office in the U.S. may contact the exporter and provide him with
a Request For Certification Form (RFC). The exporter must send the form
completed together with the pro-forma invoice providing details about
date and place of inspection.

With the new system exporters have three routes:

**Route A:** Consignment Inspection and Testing

Upon satisfactory inspection and testing SGS will issue a certificate of
conformity (CoC). The CoC is valid only for one consignment and lasts
for a maximum of 90 days from the date of inspection.

**Route B:** Product Registration, Inspection and Random Testing

For frequent exporter of homogenous products.

Involves self-declaration of compliance supported by substantiated
evidence (test reports, ISO certificates etc)

Issuance of Statement, which is valid for 1 year.

**Route C:**

Only for manufacturers (Diamond Mark Holders are eligible).

Audit of the manufacturing facility; however, random inspection and
testing will done to monitor continued compliance.

### PVoC Charges

Route A: 0.475 % of FOB value subject to a minimum of USD 180

Route B: 0.425 % of FOB value subject to a minimum of USD 180

Route C: 0.25 % of FOB value subject to a minimum of USD 135

Testing fee on a case-by-case basis

Product registration yearly fee

USD 375 per Statement of Registration per category (1-15 line item)

USD 20 for each line item above 15 line items

Product licensing yearly fee: on a case-by-case basis

#  Import Taxes

The East African Community (EAC) trading block, comprised of Kenya,
Tanzania, and Uganda has approved a Customs Union Protocol, which sets
zero duty on most goods traded between member nations. The Protocol took
effect January 1, 2005. In addition, the Protocol established a Common
External Tariff (tariffs on goods imported from markets outside the
block), which has resulted in a harmonization of import tariffs for all
three countries and a significant tariff reduction for most goods.
However, import tariff rates for some key agricultural products have
increased considerably.

A three-band tariff of 0 percent, 10 percent and 25 percent has been
established with the rates applying as follows:

Raw Materials 0%

Processed or Manufactured Inputs 10%

Finished Products 25%

TARIFFS ON SELECTED PRODUCTS

  --------------------------- ---------------- ---------------------------
  **Year/Commodity**          **2004 (%)**     **2005 (CET -- (%)**

  Maize/Corn                  25               50\*

  Corn Flour                  35               50

  Hard Wheat                  35               35\*

  Wheat Flour                 60               60

  Soya beans                  5                10

  Soya Bean oil               5                10

  Rice                        35               75

  Rice Flour                  15               25
  --------------------------- ---------------- ---------------------------

\*Corn seed -- 25 %

\*Durum Wheat -- 0 %

CET -- Common external Tariff

Value Added Tax (VAT) is levied on goods imported into or manufactured
in Kenya, and taxable services imported or provided. The standard VAT is
16%. Restaurant services are also taxable at 16%.

Excise duties are levied on fruit juices, beer, tobacco products,
matches, spirits, wines, mineral water and biscuits. The rates vary for
different products; for example, for fruit juices are 10%, biscuits are
Kshs.70 per kilogram (US \$ 0.875).

## Import Documentation

-   Suppliers invoice; the invoice provides the details of the goods
    such as description of the goods, price and quantity.

-   Packing list; provides the details of the contents of a particular
    package. Also, provided by the supplier.

-   Bill of Lading/airway bill; document evidencing a contract of
    carriage of goods between a shipper and a carrier of goods (ship or
    airline). The supplier will send the

-   importer the document after s/he has passed the goods onto the
    carrier for shipping and they have acknowledged receipt.

-   Import Declaration Form (IDF -- Form C-61) -- Issued by KRA --
    Customs Services offices and is required of all imports. A
    processing fee of Kshs 5,000 minimum or 2.75 per cent of CIF value
    is paid. The clearing agent who enters information such as the
    importers and exporter's names and contacts, invoice details,
    description and quantity of goods, etc completes the IDF.

-   Declaration of Customs value (Form C-52) -- Issued by KRA Customs
    Services Department. The importer is required to complete and sign
    it to show true and accurate value declaration of the imported
    goods.

-   Certificate of Compliance -- Processed as required by different
    authorities such as KEBS, KEPHIS, Department of Veterinary Service
    (DVS) e.g. certificate of conformity, phytosanitary certificate etc.
    Competent authorities in the supplier's country issue these after
    inspecting the goods. The supplier will then send you the relevant
    certificate to show that the goods comply with the local
    requirements.

-   Release Order -- issued by the port authority. This document allows
    the goods to be released to the importer or the agent after
    verification and payment of the storage and other charges that may
    have accrued.

## Section III. Market Sector Structure and Trends

Kenya's food retail, food service and food processing sectors are simple
but diverse.

Food wholesaling and distribution is relatively simple and direct. There
is limited direct importation from the United States. Most high value
food products from the US are imported via consolidators in Dubai
(United Arab Emirates) or suppliers in South Africa and Europe.

Importing companies or agents sell the goods directly to the
supermarkets and hotels and/or through appointed
distributors/wholesalers. In contrast to local manufacturers, importers
do limited promotional activities.

Locally manufactured goods are sold either directly to the supermarkets
and the food service sector and/or through appointed distributors.

Food service is a very important sector in the Kenyan tourism industry.
In 2005, Tourism was the country's leading foreign exchange earner at
\$647 million. An estimated 1.6 million visitors toured the country and
this number is expected to increase by 10 percent in 2007. The growth is
attributed to aggressive marketing campaign to tap new markets
especially, targeting the Far East. The industry has experienced a boom
reminiscent of the early 1990s and currently hotels are fully booked for
the December holiday season.

With the economic growth rate estimated at 6 percent in 2006, a positive
growth is also expected in the food industry.

**[NOTE]{.underline}**: *Please refer to Kenya's Retail Food Sector
Reports* *[**KE4014** and **KE6006.**]{.underline}*

##  Section IV. Best Consumer Oriented Product Prospects

Generally, a wide range of the dry groceries. Specifically,

-   Breakfast cereals

-   Snack foods (popcorn, sweets, etc.)

-   Confectioneries (candies)

-   Canned foods

-   Nuts and dried fruits (almonds, peanuts, hazelnuts, walnuts).

-   Salad dressings

-   Soups and sauces

-   Rice (brown long grain US rice and parboiled)

-   Bread Spreads (jams, jellies, marmalade, and butter)

-   Specialty wines

-   Energy Drinks

-   Processed fruit and energy juices

-   Infant Foods

-   Pet Foods

-   Frozen food products

-   Baking mixes and supplies

## Section V. Key Contacts and Further Information

## 

**[US Embassy, Nairobi]{.underline}**

Office of Agricultural Affairs

Unit 64114

APO AE 09831

Tel: 254-2-363 6340

Fax: 254-2-363 6349

Email: [AgNairobi@usda.gov]{.underline}

Website**:** [http://www.fas.usda.gov]{.underline}

Contact: Kevin N Smith, Agricultural Counselor

Foreign Commercial Service

Unit 64100

APO AE 09831- 4100

Tel: 254-2-363 0000

Fax: 254-2-363 6065

Email: <nairobi.office.box@mail.doc.gov>

###### Contact: Edward Yagi, Commercial Counselor

**[Government of Kenya]{.underline}**

Kenya Bureau of Standards

P.O. Box 54974

Nairobi, Kenya.

Tel: 254-20-600034/66 or 69028201/401/410

Fax: 254-20-609660/503293

Email: <info@kebs.org>

Website: [http://www.kebs.org]{.underline}

Contact: Eng. Dr. Mang'eli Kioko, Managing Director

Customs and Excise Department

Ministry of Finance

P.O.Box 30007

Nairobi, Kenya.

Tel: 254-20-715540

Fax: 254-20-718417

Website: [http://www.revenue.go.ke]{.underline}

Kenya Plant Health Inspectorate Service(KEPHIS)

P.O.Box 49592

Nairobi. Kenya

Tel: 254-20- 884545, 882933, 882387

Fax: 254-20- 882265

Email: <kephisinfo@kephis.org>

Website: [www.kephis.org](http://www.kephis.org/) and
[www.kenyapvoc.com](http://www.kenyapvoc.com/)

Contact: Dr. C.J. Kedera, Managing Director

Department of Veterinary Services

P.O. Private Bag. 00625, Kabete.

Tel: 254-20- 631383/2231/1287

Fax: 254-20-631273

Email: <cvfovetlabs@kenyaweb.com>

Contact: Dr. Joseph Musaa, Director

# 

# 

# APPENDIX - STATISTICS

  --------------------------- --- --- --- ----------- ---------- ---------- ---------- ---------- ----------
  **Table A: Key Trade and                                                                        
  Demographic Information**                                                                       

                                          **2002**    **2003**   **2004**   **2002**   **2003**   **2004**

  Agricultural Imports From               404         N/A        472        3%         0%         4%
  All Countries(\$Mil)/                                                                           

  U.S. market share(%)-1                                                                           

                                                                                                   

  Consumer Food Imports From              42          N/A        61         2%         0%         1%
  All Countries(\$Mil)/                                                                           

  U.S. market share(%)-1                                                                           

                                                                                                   

  Edible Fishery Imports From             2           N/A        5          0          3%         4%
  All Countries(\$Mil)/                                                                           

  U.S. market share(%)-1                                                                           

                                                                                                   

  Total Population                        33.5                                                     
  (Millions) - /                                                                                  

  Annual Growth Rate(%)-2005                          2.57%                                        
  est.                                                                                            

                                                                                                   

  Urban Population(Millions)              6                                                        
  /                                                                                               

  Annual Growth Rate(%)-3                             3.2%                                         

                                                                                                   

  Number of Major                         3                                                        
  Metropolitan Areas - 2                                                                          

                                                                                                   

  Size of Middle                          58%                                                      
  Class(Millions)/Growth Rate                                                                     
  (%)-3                                                                                           

                                                      3.0%                                         

  Per Capita Gross Domestic               1100                                                     
  Product (U.S. \$M) -2005                                                                        
  est.                                                                                            

                                                                                                   

  Unemployment Rate (%)\*                 30                                                       

                                                                                                   

  Per Capita Food                         240                                                      
  Expenditures (U.S. \$)-5                                                                        

                                                                                                   

  Per cent of Female                      30%                                                      
  Population Employed -4                                                                          

                                                                                                   

  Exchange Rate (US \$1 =                 72.9                                                     
  Kshs. )-                                                                                        

  Average Rate 2005                                                                                

                                                                                                  

  **Footnotes**                                                                                   

                                                                                                  

  1/ FAS\' web-enabled                                                                            
  UNTrade database(HS 6-digit                                                                     
  option; Import Market Share                                                                     
  BICO 3-Yr Format)                                                                               

  2/ Population in excess of                                                                      
  1,000,000                                                                                       

  3/Urban working population                                                                      
  earning a monthly income of                                                                     
  US \$ 125 and above                                                                             

  as as a percentage of total                                                                     
  urban working population                                                                        

  4/ Employed Females/Total                                                                       
  economically active Female                                                                      
  population (15 - 64 years                                                                       
  old)- formal employment                                                                         
  --------------------------- --- --- --- ----------- ---------- ---------- ---------- ---------- ----------

  ---------------------------------------------------------------- -- -- -- -- -- -- --
  5/Food comprises the largest share of 42.4 per cent of total                       
  consumption expenditure                                                            

  1994 Data on Urban Household Budget Survey                                         

  \* Data Source- Central Bureau of Statistics-GOK                                   

  Other analysts estimate the rate to be over 50% (15 - 64years                      
  old)                                                                               

  \*\*Urban Population: 2004 Estimates                                               
  ---------------------------------------------------------------- -- -- -- -- -- -- --

TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS

  ------------------------------ ----------- ------ ------ ----------- ------ ------ -------- ------ ------
  **Kenya Imports**              **Imports                 **Imports                 **U.S           
                                 From the                  from the                  Market          
                                 World**                   U.S.**                    Share           
                                                                                     %**             

  (In Millions of Dollars)       2002        2003   2004   2002        2003   2004   2002     2003   2004

  **CONSUMER-ORIENTED            42          NA     61     1           NA     1      2%       0      1%
  AGRICULTURAL TOTAL**                                                                               

  Snack Foods (Excl. Nuts)       3           NA     4      0           NA     1      0        0      0

  Breakfast Cereals & Pancake    1           NA     1      1           NA     1      1%       0      0
  Mix                                                                                                

  Red Meats,                     1           NA     1      0           NA     0      0        0      0
  Fresh/Chilled/Frozen                                                                               

  Red Meats, Prepared/Preserved  1           NA     1      0           NA     0      0        0      0

  Poultry Meat                   1           NA     1      0           NA     0      0        0      0

  Dairy Products (Excl. Cheese)  3           NA     3      1           NA     1      0        0      0

  Cheese                         1           NA     1      0           NA     0      0        0      0

  Eggs & Products                1           NA     1      0           NA     0      0        0      0

  Fresh Fruit                    2           NA     4      0           NA     0      0        0      0

  Fresh Vegetables               7           NA     1      0           NA     0      0        0      0

  Processed Fruit & Vegetables   2           NA     3      1           NA     1      1%       0      8%

  Fruit & Vegetable Juices       1           NA     1      1           NA     0      1%       0      0

  Tree Nuts                      1           NA     1      1           NA     1      28%      0      23%

  Wine & Beer                    6           NA     7      1           NA     1      2%       0      0

  Nursery Products & Cut Flowers 3           NA     9      1           NA     1      0        0      1%

  Pet Foods (Dog & Cat Food)     1           NA     1      0           NA     0      0        0      0

  Other Consumer-Oriented        18          NA     25     1           NA     1      2%       0      1%
  Products                                                                                           

                                                                                                     

  **FISH & SEAFOOD PRODUCTS**    2           NA     5      1           NA     1      3%       0      4%

  Salmon                         1           NA     1      0           NA     0      0        0      0

  Surimi                         1           NA     1      0           NA     0      0        0      0

  Crustaceans                    1           NA     1      1           NA     1      61%      0      73%

  Ground fish & Flatfish         1           NA     1      0           NA     0      0        0      0

  Mollusks                       1           NA     1      0           NA     0      0        0      0

  Other Fishery Products         7           NA     4      0           NA     0      0        0      0

                                                                                                     

  **AGRICULTURAL PRODUCTS**      404         NA     472    14          NA     19     3%       0      4%

  **AGRICULTURAL,FISH & FORESTRY 412         N/A    490    14          N/A    19     3%       0%     4%
  TOTAL**                                                                                            

                                                                                                      

                                                                                                      

  Source: FAS\' Global                                                                                
  Agricultural Trade System                                                                          
  using data from the United                                                                         
  Nations Statistical Office                                                                         
  ------------------------------ ----------- ------ ------ ----------- ------ ------ -------- ------ ------

TABLE C: TOP SUPPLIERS OF CONSUMER FOODS AND EDIBLE FISHERY PRODUCTS

  --------------------------------------- ------------- ------------ ------------
  **CONSUMER-ORIENTED AGRICULTURAL                                   
  TOTAL - 400**                                                      

  **Reporting: Kenya - Top 15 Ranking**   **Imports**                

                                          **2002**      **2003**     **2004**

                                          **Value**     **Value**    **Value**

                                          **1000\$**    **1000\$**   **1000\$**

  South Africa                            7515          0            9807

  United Kingdom                          5486          0            9059

  Netherlands                             3034          0            7038

  United Arab Emirates                    1648          0            3668

  Italy                                   2997          0            2512

  Egypt                                   1188          0            2460

  Areas NES                               19            0            2288

  Tanzania, United Republic of            617           0            2287

  France                                  1910          0            1531

  Ireland                                 1350          0            1515

  Switzerland                             539           0            1451

  Saudi Arabia                            557           0            1314

  Spain                                   696           0            1294

  China (Peoples Republic of)             392           0            1254

  Germany                                 2830          0            1218

  Other                                   11303         0            11803

  **World**                               42088         0            60533

                                                                     

  **FISH & SEAFOOD PRODUCTS - 700**                                  

  **Reporting: Kenya - Top 15 Ranking**   **Imports**                

                                          **2002**      **2003**     **2004**

                                          **Value**     **Value**    **Value**

                                          **1000\$**    **1000\$**   **1000\$**

  Spain                                   1414          NA           3909

  United States                           63            NA           180

  United Kingdom                          59            NA           174

  Tanzania, United Republic of            197           NA           128

  Namibia                                 98            NA           108

  Oman                                    0             NA           53

  Mauritius                               0             NA           52

  Norway                                  31            NA           50

  United Arab Emirates                    13            NA           37

  Hong Kong                               35            NA           26

  India                                   14            NA           22

  Italy                                   137           NA           16

  Thailand                                15            NA           16

  Yemen (Sanaa)                           0             NA           8

  Singapore                               6             NA           7

  Other                                   220           0            4

  **World**                               2308          0            4788
  --------------------------------------- ------------- ------------ ------------

Source: FAS Global Agricultural Trade System using data from the United
Nations Office