The Commercial Service at the U.S. Embassy in Nairobi also provides counselling services for visiting U.S. businesspeople. It is therefore the least understood and practiced of the channels of distribution. Other than for the multinational Coca Cola Co., franchising in general has not been successful in Kenya. The main impediments include infringement of the franchise agreement and lack of commitment by the franchisees coupled with incompetent management. The distance between the U.S. and Kenya has made franchisee supervision and training difficult.
Local businesspeople lack knowledge about, and exposure to, franchising.
To successfully enter the Kenyan market, U.S. franchisors will need to reassess franchising terms with a view to accommodating local conditions. Local inquiries for such franchises as McDonald's, Burger King, Pizza Hut, etc., would seem to indicate some interest in these types of franchises. U.S. businesspeople can subscribe to these sources through their nearest U.S. Department of Commerce District Office. While the Nairobi U.S. Commercial Service office recommends joint ventures or licensing as a practical arrangement for entering the Kenyan market, because it combines local marketing expertise and U.S. manufacturing competence, we caution that such arrangements should only be finalized through a local attorney. As indicated above under franchising, there is a tendency in Kenya for local businesspeople to infringe on product and other rights and more so where those rights may not be specifically protected by Kenyan laws.