# Presentation: 290627

## U.S. & Foreign Commercial Service

**Nairobi, Kenya**

## Our job:
    Promoting exports to Eastern Africa from the U.S. and protecting U.S. business interests in the same

-     Promoting exports to Eastern Africa from the U.S. and protecting U.S. business interests in the same

**U.S. Commercial Service, Nairobi**

## Doing Business in Kenya
GDP: USD 16.1 Billion, Per Capita: USD 480
Economic, commercial, and logistical hub of Eastern Africa
Economic growth of 6.1% in 2006
Total Imports of USD 5.7Billion, with U.S. having 9.8%, Middle east 24%
Key sectors: Telecommunications equipment, Education services,  construction equipment, Medical Equipment, Electric Power Systems

- GDP: USD 16.1 Billion, Per Capita: USD 480
- Economic, commercial, and logistical hub of Eastern Africa
- Economic growth of 6.1% in 2006
- Total Imports of USD 5.7Billion, with U.S. having 9.8%, Middle east 24%
- Key sectors: Telecommunications equipment, Education services,  construction equipment, Medical Equipment, Electric Power Systems

**U.S. Commercial Service, Nairobi**

## Recommended Entry Strategies:
Establishment of a local representative, agent, or distributor
Alternatively, selling through established dealers
Establishing a full dealership, particularly for big-ticket items
Close communication with distributors and customers to exchange information and ideas on market trends
Replying promptly to requests for price quotations and orders, are a prerequisite for exporting success

- Establishment of a local representative, agent, or distributor
- Alternatively, selling through established dealers
- Establishing a full dealership, particularly for big-ticket items
- Close communication with distributors and customers to exchange information and ideas on market trends
- Replying promptly to requests for price quotations and orders, are a prerequisite for exporting success

**U.S. Commercial Service, Nairobi**

## 
Telecommunications equipment/services
180 Million Dollars in Size (8.3% Growth)
No significant local production of telecommunications equipment in Kenya
8 licensed, 4 operational Gateway providers
Over 6.5million mobile phone users in 6 years
Increased usage of CDMA technology
3 proposed Undersea Fiber optic cable projects

- Telecommunications equipment/services
- 180 Million Dollars in Size (8.3% Growth)
- No significant local production of telecommunications equipment in Kenya
- 8 licensed, 4 operational Gateway providers
- Over 6.5million mobile phone users in 6 years
- Increased usage of CDMA technology
- 3 proposed Undersea Fiber optic cable projects

**Kenya: Leading Sectors for U.S. Exports & Investments**

## 
Educational services
Over 33,000 African Students in U.S
5,526 (16.7%) originate from Kenya
Contribute $412 Million to U.S. Economy
7 public, 13 private universities in Kenya
Only accommodate 8% of high school graduates
Major destinations: U.S., UK, Australia, Malaysia
 Popular courses: business administration, IT, engineering, medicine aviation

- Educational services
- Over 33,000 African Students in U.S
- 5,526 (16.7%) originate from Kenya
- Contribute $412 Million to U.S. Economy
- 7 public, 13 private universities in Kenya
- Only accommodate 8% of high school graduates
- Major destinations: U.S., UK, Australia, Malaysia
-  Popular courses: business administration, IT, engineering, medicine aviation

**Kenya: Leading Sectors for U.S. Exports & Investments**

## 
Construction equipment
Market size is approx USD 98.2 Million
In 2004, USD 230 million in road construction programs were begun
Housing shortfall requires est. 150,000 units per year to meet demand
Proposed concession of Road Construction through Build – Operate – Transfer approach
Opening up of South Sudan strategically places Kenya as a base to access infrastructure opportunities

- Construction equipment
- Market size is approx USD 98.2 Million
- In 2004, USD 230 million in road construction programs were begun
- Housing shortfall requires est. 150,000 units per year to meet demand
- Proposed concession of Road Construction through Build – Operate – Transfer approach
- Opening up of South Sudan strategically places Kenya as a base to access infrastructure opportunities

**Kenya: Leading Sectors for U.S. Exports & Investments**

## 
Electric power systems
Market size est. USD 84 Million
America has 18.45%
Demand for Electricity expected to grow at 7% per year
Installed capacity 1235MW, with 1140MW effective (transmission loss of 7.7%)
Products: drilling rigs and associated equipment, electric and electrical cables, transformers, electric meters, electric poles, and switchgears

- Electric power systems
- Market size est. USD 84 Million
- America has 18.45%
- Demand for Electricity expected to grow at 7% per year
- Installed capacity 1235MW, with 1140MW effective (transmission loss of 7.7%)
- Products: drilling rigs and associated equipment, electric and electrical cables, transformers, electric meters, electric poles, and switchgears

**Kenya: Leading Sectors for U.S. Exports & Investments**

## 
Medical Equipment
Market size: USD 137 Million, with U.S. having 7.3%
Government spent $100Million in 2006 in a new initiative to re-equip public hospitals
Electro-medical sector expected to grow at 10% per year for next three years
Products include: CT Scanners,	Ultrasound units, X-ray, angiographies equipment
Significant demand for equipment from fast growing number of private hospitals

- Medical Equipment
- Market size: USD 137 Million, with U.S. having 7.3%
- Government spent $100Million in 2006 in a new initiative to re-equip public hospitals
- Electro-medical sector expected to grow at 10% per year for next three years
- Products include: CT Scanners,	Ultrasound units, X-ray, angiographies equipment
- Significant demand for equipment from fast growing number of private hospitals

**Kenya: Leading Sectors for U.S. Exports & Investments**

## Major Projects in Kenya:
Great opportunities with formalization and evolution of the East African Community
Expansion of Jomo Kenyatta International Airport in Nairobi -- upgrade to Category A (direct flights)
Expansion of the Port of Mombasa
Revival/privatization of regional railroads
Increased funding for road construction
Housing construction boom with demand estimated at 150,000 houses per year
Laying of undersea fiber optic cable

- Great opportunities with formalization and evolution of the East African Community
- Expansion of Jomo Kenyatta International Airport in Nairobi -- upgrade to Category A (direct flights)
- Expansion of the Port of Mombasa
- Revival/privatization of regional railroads
- Increased funding for road construction
- Housing construction boom with demand estimated at 150,000 houses per year
- Laying of undersea fiber optic cable

**Kenya: Leading Sectors for U.S. Exports & Investments**

## Major Events in Kenya:
October 2007East African IPR Conference, Dar Es Salaam Tanzania, American Chamber of Commerce Kenya;POC Ann.Njuguna@mail.doc.gov 
November 23 – 24, 2007 Proposed Second StudyUSA event, Nairobi, Kenya:POC: Tobias.Otieno@mail.doc.gov 

- October 2007East African IPR Conference, Dar Es Salaam Tanzania, American Chamber of Commerce Kenya;POC _[Ann.Njuguna@mail.doc.gov](mailto:Ann.Njuguna@mail.doc.gov)__ _
- November 23 – 24, 2007 Proposed Second StudyUSA event, Nairobi, Kenya:POC: _[Tobias.Otieno@mail.doc.gov](mailto:Tobias.Otieno@mail.doc.gov)_

**Kenya: Leading Sectors for U.S. Exports & Investments**

## Our Motto:

“The Lion’s Share of Opportunity”

When you’re in Africa, half the time all you can think of is getting away.
But when you’re away from Africa, the only thing you can think of is getting back.

- “The Lion’s Share of Opportunity”
- When you’re in Africa, half the time all you can think of is getting away.
- But when you’re away from Africa, the only thing you can think of is getting back.

**Commercial Service Eastern Africa**