eBizGuides Kenya by eBizGuides

eBizguides

KENYA Second Edition

eBizguides Kenya

CREDITS It is always good to know who worked hard for this guide. Many talented people and many wonderful stories have gone into making it. Here is the list of those involved:

PRODUCTION Producer: Pascal Belda Regional Project Director: Frederic Van de Vyver Post Project Production Director: Melanie Rose Hardiman Local Project Director: Melanie Rose Hardiman Associate Production: Wendy Fleury Research and Market Development: Nicholas Bruneau Advertising Agency: Lowe Scanad Kenya, Managing Director: Sameer Ambegaonkar

EDITION We appreciate the support and information provided by Deloitte Consulting (Kenya) Ltd, Kenya Tourist Board and Tatjana Blanckenstein.

Written and edited by: eBizguides Design and layout: Elisa Lopez Fuentes Photographs: eBizguides (unless otherwise stated)

ACKNOWLEDGEMENTS We would like to thank the following people for their collaboration and support:

H.E. Moody Awori, Vice-President of the Republic of Kenya; H.E. Joseph Muchemi, The Kenyan High Commissioner to Great Britain; Hon. Prof. P. Anyang’Nyong’o, Minister of Planning and National Development; Hon. Dr Mukhisa Kituyi, Minister of Trade and Industry; Hon. Eng. Raila A. Odinga, Minister of Roads and Public Works; Hon. Simeon Nyachae, Minister of Energy; Hon. Kirupto Arap Kirwa, Minister of Agriculture; Hon. Morris Dzoro, Minister of Tourism and Wildlife; Dr Alfred Mutua, Public Communications Secretary; Ambassdor Francis Muthaura, Minister of State for Public Service. We would also like to thank the heads of the following companies for their sponsorship and support, without which this eBizguide would not have been possible: Deloitte Consulting (Kenya) Ltd; Express Kenya Ltd; Lowe Scanad; ZEP-RE PTA Reinsurance Company; Gilgil Telecoms Industries Ltd; Safaricom; Kenya Bureau of Standards. We also thank our many friends in Kenya, especially: Tatjana Blanckenstein, Karim Dhalla, Karim and Ally Manji, Judy Maguru, Tierry Marmouget, Stephen Munyambu and Ammar Shamji

DISCLAIMER While every effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither eBizguides nor for any related entity shall have any liability to any person or entity who relies on the information contained in this publication. This publication is not a substitute for professional advice on services, and it should not be acted on or relied on or used as a basis for any decision or action that may affect you or your business. Any such reliance is solely at the user’s risk. World Investment News Ltd Fourth Dollard House Wellington Quay Dublin 2 Ireland Customer Service: Tel: + 34 91 345 66 25, Fax: +34 91 787 38 89 Email: info@ebizguides.com, www.ebizguides.com

Printed by: IM.Roal in Spain, EU Legal Deposit: ISBN: 84933978-7-3

eBizguides Kenya

How to use this guide? The goal of eBizguides is to offer extensive economic and

at the countryâ&#x20AC;&#x2122;s investment and legal framework, and the

investment information on a country, with a focus on the

countryâ&#x20AC;&#x2122;s economy itself. Through personal interviews

top companies, while offering the best tourism and lei-

with the most important business people in the country,

sure information for your spare time. With this, we

we then provide our readers with privileged information

believe that our readers can get fully acquainted with the

and sector analysis, including introductions written by

country, before investing in it long term.

key decision-makers in the sector, such as government ministers.

This book comprises three major sections, which deal with general information, the countryâ&#x20AC;&#x2122;s economy and lei-

You will also find fact files of all the major corporations,

sure.

outlining their business activities, key projects and any investment opportunities. We consider this to include

General Information

some of the most invaluable information for business glo-

Background information on the country is coupled with

betrotters.

the main business resources available to you. Leisure Kenyan Economy

For you to fall in love with the country, we also showcase

This section of the book starts off with an in-depth look

the best spots to visit, essential areas to discover, the top hotels and restaurants, and much more.

Icons

Legends

eBiz Recommended These companies were particular favou-

Proverbs

rites of our team during their stay; this

These local phrases will help you to understand the

stamp is mostly given to restaurants,

popular culture in the country better. Perhaps you can

hotels, and so on.

even use them yourself.

eBiz Recommended Partner

Top Companies

Our team has been interviewing the

This is a listing of the top companies that eBizguides

heads of many companies; when they

encountered during their time in the country.

choose to allocate this stamp to a company, it is because they themselves have

Blue boxes

received reliable service from the com-

This is useful insider information that will help you to

pany.

assess the country, do business and enjoy your stay.

Notice This indicates that the information is important and something to take notice of when planning, or during, your stay.

eBizguides Kenya

Contents Did You Know?.............................................................................................................7 Kenya Fact File.............................................................................................................9

General Information...................................................................................................11 Business Resources....................................................................................................37

The Kenyan Economy.......................................................................59 to 232 Investment & Legal Framework.................................................................................59 Economy.......................................................................................................................87 Agriculture................................................................................................................101 Energy........................................................................................................................123 Finance......................................................................................................................139 Industry & Trade......................................................................................................159 Public Works.............................................................................................................179 Tourism.....................................................................................................................195 Transport & Communication...................................................................................211

Leisure...........................................................................................233 to 286 Travel Agencies.........................................................................................................279 Bibliography and useful websites.............................................................................281 Company Index............................................................................................277 and 278

eBizguides Kenya

Did You Know? That with this famous sentence “I had a farm, in Africa”, Karen Blixen, also known by her pseudonymous, Isak Dinesen, started her bestselling book Out of Africa? Karen Blixen spent 17 years of her life in Kenya. When her marriage failed, she took Denys Finch-Hatton (portrayed by Robert Redford in the film) as her lover. On returning to her native Denmark she wrote her memoirs, which would project her into the hall of fame. Today there is a museum, coffee garden and district of Nairobi named after her. That a zebra’s markings are as unique as the human fingerprint? That Kenya was one of the British Empire’s colonies that Princess Elizabeth visited during her honeymoon world tour in 1952? While at Treetops, a famous lodge in the Aberdare National Park, the then Princess of Wales was informed of the death of her father, King George VI. Kenya had the honour of proclaiming her Queen Elizabeth II on its soil. That Nairobi is known by the Maasai as Nyrobi, which means “the place of the cool waters”? That the Maasai mostly wear red, not for any symbolic reason, but simply because they like the colour? On the other hand, nearly all of the beadwork jewellery they wear has significance. That Swahili comes from the Arabic word for coast? Kiswahili, meaning the language of the Swahili people, was developed between the early Arab merchants and the coastal people of Kenya and Tanzania. That every July and October, up to a million zebra and wildebeest pass through southern Kenya on their annual migration? That the death of the Earl of Erroll and Constable of Scotland, Josslyn V. Hay, in 1941 made headlines all over the world? He was considered to be the leader of the Happy Valley crowd, a bunch of upper-class aristocrats notorious for their sexual escapades. As a well-known womaniser, he had seduced the attractive young wife of Sir Jock Broughton. After their elopement, Sir Broughton had finally accepted his defeat and made a toast to their happiness with champagne. That very same night, Jossyln Hay was found in the outskirts of Nairobi with a bullet in his head. James fox immortalised this crime of passion in his 1982 book, White Mischief, later turned into a motion picture. That Joy Adamson, of Born Free and Living Free fame, was also an excellent artist who was commissioned to paint a series of tribal portraits known as “The Peoples of Kenya”? She painted over 600 portraits, some of which can be seen in the National Museum, Nairobi. That the word “safari” comes from the Kiswahili meaning “journey”? That Mount Kenya gave its name to the country and not the other way round? In fact the mountain was named “Kiranyaga” by the Kikuyu, which means “the place with ostriches”. The tribe had originally thought that the mountain was covered in ostriches, owing to the black and white patches on the mountain, but in fact there are no ostriches there at all.

eBizguides Kenya

Kenya Fact File Land Area:

582,750km2

Population:

32.6 million (as at October 2004)

Population in: Nairobi (capital)

1,500,000

Mombasa

465,000

Kisumu

185,000

Nakuru

163,000

Machakos

117,000

Eldoret

105,000

Population Growth Rate: Capital: Other Main Cities: International Airports:

Approx 2.8% per year Nairobi Mombassa, Kisumu, Nakuru, Eldoret Nairobi (Jomo Kenyatta International Airport) and Mombassa (Moi International Airport)

Main Port: GDP: GDP Per Capita: Inflation: Government System:

Mombassa US$15,740 million US$483 11.6% (2004 average) Democratic Republic, with an elected president and directly elected parliament, modelled on the British system

Head of State:

President Emilio Mwai Kibaki (NARC) since 30th December 2002

Official Languages: Climate:

English and Kiswahili (Swahili) Ranges from tropical along the coast, to arid in the interior

Weather in Nairobi (altitude 1,820 m): Hottest Month:

February

Coldest Month:

July

Driest Month: Wettest Month: Measures: Fiscal Year: Time:

August (24mm average rainfall) April (266mm average rainfall) Metric 1st July to 30th June GMT +3 hrs

Electricity:

240V system

Currency:

Kenyan shilling (KSH)

eBizguides Kenya

G E N E R A L

I N F O R M A T I O N

â&#x20AC;&#x153;We have not inherited this land from our ancestors; rather we have borrowed it from our childrenâ&#x20AC;? Kenyan proverb

G E N E R A L I N F O R M AT I O N

eBizguides Kenya settle on the coast, on the virgin soil of what is now

BACKGROUND INFORMATION

known as Kenya. They eventually intermarried with the Africans, resulting in relatively affluent and Islamicinfluenced towns, which acted as entry points for the

INTRODUCTION

crossing Indian Ocean trade. Even today, Kenya’s richest history can be felt in the coastal towns.

Beautiful and wild, Kenya brings together diversity and contrasts in all senses. From its different landscapes to its

• Portuguese Invaders – The Portuguese decided that

mix of people, Kenya has long been a country for lost

they would back expeditions to this part of Africa, in the

souls and those eager to learn about life on the African

hope that they would break the Ottoman Turks’ grip on

continent.

trade with the Far East. The rule of the Portuguese was a combination of economic exploitation and drives to

People flock to Kenya from all over the world. They are

convert

all excited and searching for something of their own;

Nevertheless, by the 1720s their bitter hand was no

yearning for and thinking that it will be in the bush, in

longer felt, and their rule came to an end.

the

local

population

Catholicism.

the nakedness of nature, that they will find it. Some come as adventurers camping in the middle of the bush,

• British Colonialism (19th and 20th centuries) –

looking out for their long desired encounter with the

With the whole of Africa being combed by European

king of beasts; others come as romantic colonialists wan-

explorers, Kenya wasn’t going to escape the fate of its

ting to retreat back in a time when life seemed uncom-

neighbours.

plicated and rich. Whatever the reasons, these people

were able to negotiate a treaty with their former warrior

are all taking a break from themselves, or are running

enemies, the Masai, and construct the Mombasa to

away from an all too familiar life, to begin a new one, in

Uganda railway through the heart of the Masai grazing

what some Kenyans call the New Frontier.

There was internal strife, and the British

Old architecture meets new in Nairobi

The frontier spirit that emerges, among the Kenyans and visitors alike, stems from the fact that there is an enormous space still to be discovered. One can only speak of this “space” here in Kenya. It is so vast and seemingly infinite that people get an eerie feeling of being exposed to the bareness of nature. It is a nice feeling compared to that of packed city centres with honking horns and rude, pushy people, some would say. From the Northern Desert to the deserted islands lining the coast, from the largest lake in the world to the largest wildlife reserve in Africa, there is always something more in store and more to discover in this land of great riches.

HISTORY • Islamic Influence – Well known as excellent traders, Muslims came to East Africa (from the 8th century onwards) for what they knew best: commerce. They sailed with their dhows from the Arabian Peninsula to

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

lands. • Independence – On 12th December 1963, Kenya

KISWAHILI

ENGLISH

finally became an independent state, free from British

Ee Mungu nguvu yetu

O God of all creation

hands, and chose Jomo Kenyatta as the first elected

Ilete baraka kwetu

President.

Haki iwe ngao na mlinzi

NATIONAL SYMBOLS

Natukae na undugu

Bless this our land and nation Justice be our shield and defender May we dwell in unity

Amani na uhuru The National Flag – The colours on the Kenyan flag are all symbolic.

Peace and liberty

Raha tupate na ustawi

Plenty be found

The black embodies the colour and the

within our borders

pride of the Kenyan people; the red represents the blood

Amkeni ndugu zetu

that was lost in the fight for independence; the green

Tufanye sote bidii

Let one and all arise With hearts both strong and true

Nasi tujitoe kwa nguvu Service be our earnest endea vour

Nchi yetu ya Kenya

And our homeland of Kenya

Tunayoipenda Tuwe tayari kuilinda

heritage of splendour Firm may we stand to defend

Natujenge taifa letu

Let all with one accord

Ee, ndio wajibu wetu symbolises the beauty of the country; and the white sig-

Kenya istahili heshima

nifies the hope for peace among the people.

Tuungane mikono

In common bond united Build this our nation together

Pamoja kazini Kila siku tuwe na shukrani

The spears and shield in the centre of the flag form a

And the glory of Kenya the fruit of our labour Fill every heart with thanksgiving

“harambee”, which represents the concept of community self-help, pulling together for the greater good,

attempted coup from the Kenyan Airforce, and other

which is the cornerstone of Kenyan ideology.

minor conspiracies were recurrent. Nevertheless Kenya The National Anthem – The music of the Kenyan

under Moi’s government was considered to be stable,

national anthem comes from an African song, which is

compared with many of its neighbours. Moi served one

heard in the Pokomo country of Kenya. It is a traditional

five-year term, then was re-elected in 1988, ‘92 and ‘97.

tune sung by mothers to their children. Emilio Mwai Kibaki – After the elections on 27th

GOVERNMENT

December 2002, Kibaki won the elections, having run against Uhuru Kenyatta (son of the former President).

Jomo Kenyatta - Elected in May 1963 and ruling until

Kibaki – a member of the National Rainbow Coalition

his death in August 1978, Jomo Kenyatta was the first-

(NARC) – became the third democratically elected

ever elected President.

President of Kenya, ending KANU’s 40-year hold.

Under his Presidency, Kenya

developed into one of Africa’s most stable, prosperous and peaceful nations.

Government Structure

Daniel Arap Moi – As Vice-President under Kenyatta’s

The supreme law in Kenya is the Kenya constitution,

regime Moi became Kenya’s second President, ruling

which has been under review for more than ten years,

Kenya from 1978 until 2002.

and sets out the form of government. The government

In 1982 there was an

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

has evolved considerably since the 1960s. In 1963 it had

Speaker of the National Assembly and the Attorney-

a bicameral semi-federal government structure, whose

General. Parliament itself consists of 222 members of

head of government was the prime minister and head of

whom 212 are democratically elected while 12 are nomi-

state the Queen of England; in the mid to late 1960s it

nated by their parties and appointed by the President.

was a single state multiparty mono-cameral government

Though, ordinarily, most acts of parliament (statutes) ori-

whose head of state and government was the President;

ginate from the Cabinet, there is nothing to stop a non-

in the 1970s it became a de facto single party parliament;

cabinet MP from originating an Act in what is called a pri-

in the 1980s it became a de jure single-party parliament;

vate members’ bill. All laws in Kenya must be subjected

and in the 1990s it went back to being a multi-party par-

to three readings and Presidential assent before being

liament.

passed. Parliament may, however, pass a law without Presidential assent where the President refuses to give

The Kenyan Government operates under the principle of

such assent.

separation of powers with three independent arms of government – the executive, the legislature and the judi-

A law made by parliament does not come into operation

ciary.

until it has been published in the Kenya Gazette, but parliament may postpone enacting a law and can also make

The Executive

laws with retrospective effect. This is unlikely to occur, however, as the Judiciary would probably rule it uncons-

Ordinarily referred to as the cabinet, the Executive con-

titutional.

sists of the President, Vice-President and the ministers. Assistant ministers do not form part of the cabinet and

The constitutional life of parliament is five years after

do not sit in for the ministers. The Vice-President is also

which all MPs have to be re-elected in a general election.

ordinarily a minister, though there are no specific requi-

Bi-elections are held every time a MP loses his seat, ordi-

rements that he should be one. The prime responsibility

narily due to death or loss of support from the party that

of the executive is to execute the laws passed by parlia-

sponsored him to parliament.

ment and to ensure the effective running of the country. All treaties negotiated by Kenya need to be ratified by All members of the cabinet are appointed by the

parliament and made part of Kenya’s domestic law

President and can be removed by the President at any

before they become operational.

time. All cabinet ministers must be members of parliament (MP). The tenure of the President’s term is five

The Judiciary

years for a maximum of two terms and every adult above The

The Kenyan judiciary consists of two major courts namely

President cannot legally be removed before the expiry of

the Kenya Court of Appeal and the High Court. Both

his term unless parliament passes a motion of no-confi-

High Court and Appellate Court judges are appointed by

dence against the government. Such a motion requires

the President on the recommendation of the Judicial

the support of a majority of the parliament and affects

Service Commission. They enjoy security of tenure and

the whole parliament as all MPs automatically lose their

cannot be removed by the President without the approval

seats.

of the Judicial Service Commission. Due to a shortage of

the age of 35 years is eligible for Presidency.

judges, there are a number of commissioners of Assize

The Legislature

who have been appointed to assist in the High Court; such commissioners have the same powers and privileges

Parliament is the supreme law-making organ in Kenya

as the judges, only their tenure is for a limited period.

and forms part of the National Assembly, which is made

The head of the judiciary is the Chief Justice who is also

up of the parliament and two ex-officio members: the

a judge of the High Court. Plans are under way to esta-

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

Ministry of Agriculture

blish a Supreme Court for the East African community.

Kilimo House, Cathedral Road, Nairobi There are other subordinate courts usually referred to as

Tel: +254-20-2718870

Magistrates’ Courts, which have jurisdictions limited by Magistrate Courts is the District Magistrate Court, and

Ministry of Education Science and Technology

the highest jurisdiction is the Chief Magistrate Court.

New Jogoo House B, Harambee Ave, Nairobi

The Kadhi’s court has responsibility for Islamic law mat-

Tel: +254-20-334411

geography and subject matter. The lowest jurisdiction of

ters – its jurisdiction is limited to religious and personal law matters. The Court Martial tries most military issues

Ministry of Energy

and its jurisdiction is limited to matters scheduled in the

Nyayo House, Kenyatta Ave, Nairobi

Armed Forces Act and the Cantonment Act.

Tel: +254-20-330048

Matters

affecting African customary issues, especially on marriage and divorce, may be dealt with by a council of elders.

Ministry of Environment and Natural Resources

The High Court, as the superior court of record, has unli-

Maji House, Ngong Road, Nairobi

mited original criminal and civil jurisdiction in all matters,

Tel: +254-20-2716103

including constitutional matters. In practice, most matters commence in the Magistrates’ Courts unless the sub-

Ministry of Finance

ject matter is above the jurisdiction of such courts. The

Treasury Building, Harambee Ave, Nairobi

High Court has powers to review the proceedings in the

Tel: +254-20-338111

lower courts.

Ministry of Foreign Affairs In upholding the law, the courts are in the first instance

Old Treasury Building, Harambee Ave, Nairobi

expected to make reference to the constitution as the

Tel: +254-20-334433

supreme law.

All other written laws rank below the

titution. The written laws may either be acts of parlia-

Ministry of Gender, Culture and Social Sports

ment (statutes) or subsidiary legislation (regulations,

Jogoo House A, Taifa Road, Nairobi

rules, by-laws, notices and proclamations made in line

Tel: +254-20-228411

constitution and need to be in compliance with the cons-

with specific statues). There is a body of unwritten law that is applicable in Kenya, which includes English custo-

Ministry of Health

mary law and principles of equity, African customary

Afya House, Cathedral Road, Nairobi

laws, Hindu marriage laws, and so on. Most written laws

Tel: +254-20-2717077

are limited by statutory provisions.

Ministry of Home Affairs

GOVERNMENT OFFICES

Jogoo House A, Taifa Road, Nairobi Tel: +254-20-228411

Office of the President Harambee House, Harambee Ave, Nairobi Tel: +254-20-227411

Ministry of Labour and Human Resource Development Social Security House, Bishop Road, Nairobi

Office of the Vice-President

Tel: +254-20-2729800

Harambee House, Harambee Ave, Nairobi Tel. +254-20-227411

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

Ministry of Lands and Housing

gest peak in the African continent, and it is traversed by

Ardhi House, Ngong Road, Nairobi

a number of rivers, notably the Tana and Athi rivers, and

Tel: +254-20-2718050

the Galana River and the notorious Mara River, which run through the Masai Mara reserve.

Ministry of Livestock and Fisheries Development

Kenya also houses some incredible lakes, such as the wild

Kilimo House, Cathedral Road, Nairobi

Bogoria (said to be the home of more than 1 million fla-

Tel: +254-20-2718870

mingos) and Lake Baringo/Naivasha (home to the noto-

Lake Turkana (home of the cradle of humankind), Lake

rious “happy valley set”) to mention only a few.

Ministry of Local Government Jogoo House A, Taifa Road, Nairobi

The country is mostly known for its flat, vast and wild

Tel: +254-20-217475

savannah country, but its terrain ranges wildly from deserts in the north, to bush land in the South, coastal

Ministry of Roads and Public Transport

areas in the east, and the fertile lands west, while central

Ministry of Works Building, Ngong Road, Nairobi

Kenya houses luscious highlands.

Tel: +254-20-2723101

NATURAL RESOURCES Ministry of Tourism and Wildlife Utalii House, Uhuru Highway, Nairobi

Kenya’s natural resources include gold, limestone, soda

Tel: +254-20-313010

ash, salt barites, fluorspar, rubies, garnets, wildlife and hydropower.

Ministry of Trade and Industry

WILDLIFE

Telposta Towers, Kenyatta Avenue, Nairobi Tel: +254-20-331030

Kenya is known not only for its wildlife – especially the

Ministry of Transport

“big five” – but also for its great birdlife. The wildlife

Transcom House, Ngong Road, Nairobi

varies across regions. Depending on where you are, you

Tel: +254-20-2729200

can see black or white rhinos, the Maasai, Rediculated or Rothschild’s giraffes, different types of ostriches and

Ministry of Water Resources

zebra, guinea fowls and many other animals.

Maji House, Ngong Road, Nairobi The “big five” are buffalo, elephant,

Tel: +254-20-2716103

leopard, lion and rhino.

GEOGRAPHY On a lucky day in a park you can find all sorts of animals The Republic of Kenya occupies an area of 580,367

– elephants, giraffes, lions and cheetahs, hyenas and jac-

square kilometres. It lies on the Equator and is bisected

kals, rhinoceros and hippopotamuses, zebras, gazelles

lengthwise by the Great Rift Valley, which runs from

and gerenuks, warthogs, dik-diks, hartebeests and wilde-

Jordan in the north to Mozambique in the south. Kenya

beests, kudus and elands, buffalos and many more. For

shares borders with five other nations: to the east with

more specific information on each park, check the Kenya

Somalia and the Indian Ocean, to the north with Ethiopia

Wildlife Service website, www.kws.org.

and Sudan, to the west with Uganda and Lake Victoria, and to the south with Tanzania.

If you are a novice bird-watcher, Kenya is an excellent place to start. There are over 1,000 species in Kenya, the

Kenya is home to Mount Kenya (5,199m), the second lar-

second highest country bird-list in Africa (after the

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

Congo). This compares with there being no more than

the central highlands (around Mount Kenya) can be cool,

300 species in the UK and 600 species for the USA. For

verging on cold, during Kenya’s winter (July–August),

more information, check www.kenyabirds.org.uk.

while in the north and northeast (close to the Sudanese border) the days are dry and very hot.

The underwater world in Kenya is also very spectacular. If

As it is on the equator, day and night are almost equal in

you are a diver, be prepared to see some great places and

Kenya the whole year around; sunrise is 6–6.30am and

species. From sharks to tortoises, to lion and crocodile

sundown 6.30–7pm. Even though the climate is benign

fishes. On the south coast you can also find the specta-

during the day, it is wise to use a pullover in the evenings

cular whaleshark.

since temperatures drop considerably at night.

For general information on the nature in Kenya, go to

Over most of the country there are two major rainy sea-

www.naturekenya.org.

sons. The short rains normally occur from late October to November and the long rains from late March to early

CLIMATE

June. July and August are the coolest months; November to February are the hottest.

The variations in altitude and terrain in Kenya create sharp contrasts in climate. The coast (Mombasa, Malindi, Lamu) is hot and often humid. Mornings and evenings in

The Equator line passes through Kenya

G E N E R A L I N F O R M AT I O N

PEOPLE AND LANGUAGES

eBizguides Kenya (not dialects) are spoken in Kenya. Most Kenyans speak three languages: their tribal language, also called their mother tongue, Kiswahili and English. Kiswahili (meaning

Kenya has a melting pot of different nationalities, tribes

Swahili language) is widely spoken in Kenya as well as in

and ethnic groups, making it a tolerant, accepting and

other east African countries like Tanzania, even if some

colourful country. It currently has a population of about

words can be different between the Swahili spoken in the

30.7 million people, which include over 70 tribal groups.

coast and the one spoken in Nairobi. English is the official language and most Kenyans living in big cities speak

The main tribal groups are the Bantu, Cushites and

it.

Nilotes and the main ethnic composition of the tribes of Kenya is formed from these groups:

As Kenya has a large Asian population, descendants of

• The Bantu group includes the Embu, Gikuyu, Kamba,

workers who arrived to build the railway from Mombasa

Kisii, Luhya and Meru.

to Kampala, various Indian languages are still spoken.

• The Cushite group includes the Borana, Somali, Orma

Nevertheless they are not considered official languages as

and Rendille.

they are only spoken within the Indian community.

• The Nilote group includes the luo, Kalenjin, Maasai, Samburu and Teso.

Sheng is the language of Kenyan youth and is a mix of Swahili and English – be sure that you, and many Kenyan

Each group has its own language and some 45 languages

elders, will be unlikely to understand it!

Masai warriors from Kenya’s best known tribe

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

RELIGION

Islam: The Arab influence is mostly felt on the coastline, where mosques can be seen almost on every corner and

Considering the mix of peoples, histories and ethnic

most women wear veils, but in a more relaxed manner

groups, it is no wonder that there is a great variety of reli-

than in any strictly Islamic country. Islam was brought by

gions in Kenya. As a result there is a very open and non-

Arab traders, and firmly established, thanks to the strong

biased society, which is rare in today’s intolerant world.

influence of the sultanate of Oman and Zanzibar. The Sunni branch of Islam is the predominant one in Kenya.

Christianity: The British brought with them the monotheistic religion, which they imposed onto the Kenyan

Hinduism: The Indians brought to Kenya by the British to

peoples, sending increased numbers of missionaries.

construct the Mombasa–Uganda railroad have become a

Today Christianity is the main religion in Kenya and is

prominent community in the country.

very much present in the everyday life of Kenyans. A

their traditions they have also brought their own mille-

large percentage of them are Catholic, but other

nary cults. There are a number of beautiful traditional

Christian creeds (Anglican, Lutheran, Seventh Day

Hindu temples in the main urban areas of the country.

Together with

Adventists, Evangelical and so on) are also prominent. A number of Christian sects are deeply rooted in Kenya – it

Sikhism: Started as a spin-off of Hinduism, Sikhism cele-

is not an uncommon sight to see groups of newborn

brated the 300th anniversary of its creation in 1999.

Christians rapt in singing on Sundays either on the streets

Together with the Hindus, a number of Sikhs came to

or in public parks.

Kenya at the turn of the century to help construct the

Around 30% of the population of Kenya is Muslim

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

railroad. There are fewer Sikhs than Hindus, but their

• 1st June (Madaraka Day)

economic importance is considerable.

• 10th October (Moi Day) • 20th October (Kenyatta Day)

Judaism: Judaism is not very prominent in Kenya, but

• 12th December (Independence Day)

there are a few synagogues in Nairobi; the Israeli

• 25th December (Christmas Day)

embassy deals with religious holidays and festivities.

• 26th December (Boxing Day)

Other: Those who are not part of any specific religion

In most of the cases, if a holiday falls

and perform alternative practices can find centres that

on a Sunday, the public holiday will be

deal with many sorts of alternative beliefs.

postponed to Monday.

PUBLIC HOLIDAYS

BUSINESS WORKING HOURS

There are three variable-date public holidays: the

Public

Christian Good Friday and Easter Monday, and the

Monday–Friday: 8am–5pm. For banking hours see

Muslim Eid al Fitr. The fixed-date public holidays are:

“Banks” below.

and

• 1st January • 1st May Picturesque Anglican church in Limuru

private

sector

working

hours

are

eBizguides Kenya

G E N E R A L I N F O R M AT I O N • Monday–Friday: 8.30am–5pm

MONEY MATTERS

• Saturdays: 9–11am on the first and last Saturday of the month only

CURRENCY Many banks have different opening hours, depending on The local currency is the Kenyan shilling (KSH), also

their branches. Check with the bank for details. ATM ser-

known locally as a “bob”. US dollars (USD), pounds ster-

vices are offered by the major banks to enable customers

ling (GBP) and euros (EUR) can be exchanged in most

to withdraw cash 24 hours a day.

places in town. See the Business Resources section (page 000) for bank The KSH breaks down into notes of 1,000, 500, 200, 100

listings.

and 50; and coins of 20, 10, 5, 1. The exchange rate in February 2005 was KSH80 for US$1

FOREX BUREAUS

and KSH102 for 1. Banks offer foreign currency exchange services, and there

BANKS

are also private “Forex” bureaus dotted all over Nairobi and beyond. The Forex bureaus tend to give better rates

Banks are mainly open:

than the banks, but it is worth checking the rate in advance and any commissions that may be charged. The The city of Nairobi has more than 3 million inhabitants

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

daily exchange rates for the main bureaus in Nairobi are

CREDIT CARDS

published in the Daily Nation. When changing money, be sure to calculate the money you expect to receive and to

Credit cards (mainly Visa and MasterCard) are accepted

count it completely. At no point should you feel rushed

in all main hotels, restaurants and shops, but you should

to complete the transaction.

always have cash with you.

US dollars, euros and

pounds sterling are the preferred currencies for exchange. It is worth bearing in mind that larger deno-

COMMUNICATIONS

mination notes, like US$100, often receive a better exchange rate than the smaller notes, such as US$10.

FIXED LINES

See the Business Resources section (page 000) for Forex

Telkom Kenya is the only company providing landlines in

Bureau listings.

the country.

Telkom Kenya Kenyatta Avenue

SOME INDICATIVE PRICES

Tel: +254-20-323-2000 Fax: +254-20-251071 Web: www.telkom.co.ke

• Bottle of beer: KSH65 (supermarket) KSH100 (bar

• 1 litre bottle of water: KSH60 (supermarket)

Standard prices (per minute) from Kenya to:

KSH100–150 (bar or restaurant)

• COMESA countries: US$1.44

or restaurant)

• Packet of cigarettes: KSH80 • Good meal: KSH1,500–4,000 per person (including wine) • One night at a 4/5 star hotel: US$100–150

• the rest of Africa, Europe, USA, India, Australia, U.A.E: US$1.50 • the rest of the world: US$1.99 The country code for Kenya is: 254

• Car rental per day: KSH4,000–9,000 (depending on model – saloon or 4X4)

Main area codes:

• Petrol per litre: KSH68

• Nairobi: 020

• Rent a house per month: KSH50,000–100,000

• Mombasa Central: 041

(four bedroom, depending on area)

• Diani: 040

• Hair cut: KSH800 (men) and KSH1,200 (women)

• Eldoret: 053

• Taxi fare: KSH200 (short trips) to 500KSH (longer

• Embu: 068

trips around Nairobi)

• GilGil : 049

• Domestic flight Nairobi to Mombasa: KSH9,000–10,000 • DVD rental: KSH200 • Newspaper: KSH35 • Driver’s salary: KSH6,000–8,000 per month • Security guard’s salary: KSH5,000 per month (pri-

• Kericho: 052 • Lamu and Malindi: 042 • Naivasha: 050 • Nakuru: 051 If you phone from abroad, you have to dial the following to get a Nairobi number: +254-20-123456 (drop the first 0 of the area code).

vate) or KSH9,000 per month (company) • Housekeeping salary: KSH5,000 per month

If you call from around Kenya or from a Kenyan cellular phone to a landline, you have to dial the full area code,

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

INTERNATIONAL CALLING CARDS

for example: 020-123456. If you are in the same area code as you are dialling, dial only the number wanted, for example 123456.

One of the best international calling cards is from SEMA,

If you want to call abroad from Kenya, you have to dial

and they are available all over the city. This card works

the “0” three times before the country code wanted, for

on the usual principle – buy a card for a set denomina-

example: 000 + country code + area code + phone

tion, which gives you your pin number. To make your call

number. If you want to call the UK, dial: 000 44 + area

you dial a local (Nairobi) number and follow the prompt.

code + phone number.

Call costs with SEMA are as little as KSH10 per minute to call the UK, France, Germany, Spain, USA, Canada,

As a result of the continuous expansion of landlines, tele-

Australia and many other destinations. For up to date

phone numbers have been changing very often in recent

information on rates, go to www.semacard.co.ke.

times. For the latest information, call Telkom Kenya Information on 991 or 992, or check on the web at

MOBILE PHONES

www.yellowpageskenya.com. There are two cellular phone companies in Kenya, Safaricom and Celtel; both are doing very well and together have more cellular lines working in Kenya than lan-

With the Free Primary Education programme, more children can attend school

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

dlines. Many shops sell SIM cards from these two com-

Website: www.thuraya.com

panies as well as scratch recharge cards. The SIM cards are around KSH300, and the recharge cards are available

INTERNET SERVICES

in a variety of denominations. These pre-paid scratch cards are the most common and efficient way of calling

Internet access is growing. There are a sizable number of

within Kenya. Both companies offer a variety of prepaid

internet cafe springing up in major towns across Kenya,

tariffs to suit your calling needs.

although many rural areas are not yet connected.

Celtel

See the Business Resources section for ISP listings.

Tel: +254-20-69010000 Website: www.celtel.com

BEFORE AND AFTER YOU ARRIVE

Safaricom Tel: +254-20-4272100

HEALTH AND SAFETY

Email: customercare@safaricom.co.ke Website: www.safaricom.co.ke

SATELLITE PHONES

Before You Arrive Before entering Kenya, make sure that all your vaccinations are up to date. Your family doctor can best advise

Telemedia Communication

you on which vaccinations are recommended, however it

Tel: +254-20-575630/1/2

is essential that you have the yellow fever vaccination, as

Email: thuraya@telemedia-ke.com

you may be asked to present the certificate of vaccination

Safaricom is the leading mobile operator in Kenya

on arrival in Kenya. It is also worth considering having vaccinations or boosters for polio, typhoid, tetanus, hepatitis A and B and cholera. All travellers should visit their personal doctor or a travel health clinic 4–8 weeks before departure. Malaria is endemic to Kenya and you should take an antimalarial prophylactic, especially if you are travelling to the coast or to some game parks. There are a variety of options available, and the choice will depend on your length of stay, how soon you need to travel, your medical condition and so on. Some anti-malaria drugs like Lariam (Mefloquine) only need to be taken once a week, but many people have reported them to have neuropsychiatric side-effects. Doxycycline is an antibiotic prophylaxis that is taken daily, and only needs to be started one day before you travel. It is also widely available in the pharmacies locally, and can also protect you against travellers’ diarrhoea. However, in a few cases it can increase your skin’s sensitivity to the sun. A new drug, Malarone, can also be started the day before you travel, and is currently recommended by many doctors, as it does not have the

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

side-effects of the others. However, it is the most expensive option. Ask your doctor for exact information or

ENTRY VISA REQUIREMENTS AND EXTENSIONS

have a look at the Kenya Malaria Information Service All persons entering Kenya must possess a valid passport,

website, www.kmis.org.

which must also be valid at least six months beyond the

On Arrival

end of your stay in Kenya. An entry visa is mandatory to enter Kenya. You can obtain a visa in advance from any

It is recommended that you have your accommodation

Kenyan embassy, high commission or consulate.

booked before you arrive. If you are staying at a hotel you can arrange for a driver to collect you from the airport;

Requirements for Visa at Kenyan Embassies, High

write your name on a placard so you can be identified

Commissions and Consulates

easily.

The following items are required when applying for a visa to enter Kenya:

If you travel around the country a lot, it may be worth

• An international passports valid for at least six months

taking out a special membership of the Flying Doctor

• four recent passport photographs

Emergency Service. There are temporary memberships

• return tickets

for tourists, US$15 for 14 days or US$25 for up to two

• evidence of availability of enough maintenance funds

months. These cover you up to 500km from Nairobi. For

or proof of other satisfactory arrangements for support

more specific information contact The Flying Doctors

while in Kenya

Society of Kenya, tel: +254-20-604651, email: flying-

• supporting letter from applicant’s firm or business asso-

docs@amrefke.org or website: www.amref.org.

ciates in Kenya (where applicable). • a letter of invitation from Kenya (where applicable)

Health Services

• copies of hotel reservations and/or itinerary (tourists only)

There are private clinics in almost all towns. In major

• copies of onward tickets and visas, sent to their desti-

cities, hospitals offer good facilities in comparison with

nations (applicants for transit visas).

neighbouring countries. As in many countries, the cost of medical services or hospital care must be paid in cash.

As requirements tend to change and

Most places will accept payment by the patient’s private

vary from country to country, we

health insurance, although there are exceptions to the

strongly advise you contact your nea-

rule. Pharmacies (drug stores) abound in Kenya, and are

rest Kenyan mission for all entry requi-

open during normal trading hours. Some open even on

rements.

Sundays. In case of a serious medical emergency, it is recommended that you contact your embassy. The Aga

See the end of this chapter for the listings of the Kenyan

Khan Hospital in Nairobi has a 24-hour casualty service;

embassies abroad.

reach them on Tel: 020-374-0000. You can also obtain a single entry visa on arrival in Kenya See the Business Resources section (page 000) for hos-

at the airport. A single entry visa costs US$50. A double

pital and pharmacy listings

or multiple entry costs US$100. If you stay less than 24 hours in Kenya, you can apply for a transit visa that will

Emergency Calls

cost you just US$20.

In the event of an emergency call:

It is important to note that a single entry visa allows re-

• Police or ambulance – 999 • Police HQ in Nairobi – 020-240000

entry to Kenya after visits to Tanzania and Uganda (assuming you have a visa for these countries).

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

Tourist visas are issued for a maximum three-month

ago, and today Kenya Airways has become one of the most

period, but you can extend it another three months by

reliable African airlines. It has purchased several new planes

going to Immigration. The Immigration Office in Nairobi

in the last four years and is expanding further.

is on at Nyayo House, on the corner of Kenyatta Avenue

Air Kenya and Safari Link, on the other hand, are small local

and Uhuru Highway. To extend your visa you will need

airlines, but with incredible service and reliability. They fly to

to fill in a form, bring two passport-sized photographs,

all major cities in Kenya as well as to the various game parks

and pay a fee.

and lakes.

For exact details call the Immigration Office:

AIRPORTS

Tel: +254-20-222022 Fax: +254-20-220731

Jomo Kenyatta International Airport – Nairobi

CUSTOMS

Tel: +254-20-822111 Most international flights arrive at this airport, which is only

The usual regulations apply to what you can bring into

30 minutes from the Nairobi city centre. During the rush

the country in terms of cigarettes, alcohol, perfume and

hour (6.30–9am and 4.30–7pm) it can take one hour or

so on. All pornographic material is banned in Kenya.

more to get into town or to get to the airport.

Customs duties will be charged on items imported in commercial quantities. If they are your personal belon-

Moi International Airport – Mombasa

gings, it is up to you to convince the officials of that.

Tel: +254-41-433211 This airport operates local and international flights. It is

There are very strict laws concerning

situated about 30 minutes from Mombasa city centre.

what you can take out of Kenya. Any

Check-in can take a long time, so be aware of that if you do

products made from elephant, rhino or

not want to miss your flight.

sea turtle are banned.

Coral and

ostrich eggs are also not allowed,

If you travel to the south coast, you will have to use the

unless you can prove that the latter

Likoni Ferry, which can add up to one hour to your trip.

were bought from a certified ostrich

Wilson Airport – Nairobi

farm.

Tel: +254-20-603260 You are allowed to take up to KSH100,000 out of the

This is a small airport from which most local flights depart.

country.

Taxis are available at the airport.

GETTING THERE AND AROUND

AIRLINES

International BY AIR

The following international airlines fly to Kenya. For further information on flights, please check with a travel agency in

Most international airlines fly to the Jomo Kenyatta

your country.

International Airport in Nairobi as well as to Moi International Airport in Mombasa. Flights within the country

Air India

or region are likely to be with either Kenya Airways or Air

Jeevan Bharat Building, Harambee Ave, Nairobi

Kenya or Safari Link. Kenya Airways is Kenya’s national

Tel: +254-20-313300-07

carrier, which has a strategic alliance with KLM.

Fax: +254-20-340582

It has

improved dramatically, considering its status five to six years

Email: airindianbo@form-net.com

eBizguides Kenya

Air Madagascar

G E N E R A L I N F O R M AT I O N Email: reservationsnbo@emirates.com

Hilton Hotel (Mezzanine Floor), Nairobi Tel: +254-20-225286

Ethiopian Airlines

Fax: +254-20- 218393

Bruce House, Muindi Mbingo St, Nairobi

Email: mdnbo@africaonline.co.ke

Tel: +254-20-217558 Fax: +254-20-219007

Air Malawi

Email: nboet@net2000.com

International House (Mezzanine Floor), Nairobi Tel: +254-20-317113

Kenya Airways / KLM

Fax: +254-20-340212

Barclays Plaza Building, Nairobi

Email: airmalawi@africaonline.co.ke

Tel: +254-20-32074740 Fax: +254-20-32074711

Air Mauritius

Email: reservation@kenya-airways.com

International House (Mezzanine Floor), Nairobi Tel: +254-20-229166

SN Brussels

Fax: +254-20-221006

Bandari Plaza, Nairobi

Email: kutwa@airmauritius.co.ke

Tel: +254-20-4440735 Fax: +254-20-4441147

Air Tanzania

Email: infoke@brusselsairlines.com

Chester House, Nairobi Tel: +254-20-336224

South African Airways

Fax: +254-20-214936

International Life House, Nairobi

Email: airtanza@wananchi.com

Tel: +254-20-229663 Fax: +254-20-227488

Air Zimbabwe

Email: saa@africaonline.co.ke

Sasini House, Loita Str., Nairobi Tel: +254-20-316066

Swiss Airlines

Email: airzim@swiftglobal.com

Caltex Building, Limuru Road, Nairobi Tel: +254-20-3744045

British Airways

Fax: +254-20-3746663

International Life House, Nairobi

Email: swift@africaonline.co.ke

Tel: +254-20-3277000 Fax: +254-20-217437

Local

Email: britishairways@swiftkenya.com

The following airlines fly to local destinations:

Egypt Air

Air Kenya

Hilton Hotel (Ground Floor), Nairobi

Wilson Airport, Langata Road, Nairobi

Tel: +254-20-226821

Tel: +254-20-604323

Fax: +254-20-213198

Fax: +254-20-602951

Email: egyptair@africaonline.co.ke

Email: info@airkenya.com Flies from Wilson Airport

Emirates View Park Towers, 20th Floor, Nairobi

Kenya Airways

Tel: +254-20-212990

Barclays Plaza Building, Nairobi

Fax:+254-20-224271

Tel: +254-20-32074740

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

BY ROAD

Fax: +254-20-32074711 Email: reservation@kenya-airways.com Flies from J.K. International Airport

Buses

Safari Link

This is the cheapest form of transport and one of the

Wilson Airport, Langata Road, Nairobi

most popular. If you want to travel to Arusha (Tanzania),

Tel: +254-20-600777, 600787

take a Davanu Bus. If you are staying in a hotel in town,

Fax: +234-20-6000039

someone will pick you up without extra cost, otherwise

Email: res@safarilink.co.ke

the buses leave from Windsor House, next to the central

Flies from Wilson Airport

police station. The trip takes four to five hours and costs KSH1,000 one-way for Kenyan residents and US$25 for

BY CAR

non-residents. Tel: +254-20-316929, Fax: +254-20-316931.

Driving Your Own Car

For travel between Nairobi and Mombasa, the best bus services are with Coast Bus. There is a day and night service

Before driving into Kenya, check with the Kenyan embassy

and the price ranges from KSH900 one-way on an “execu-

in your country the papers you need to show at the border.

tive bus” to KSH1–500 in a “large luxury” bus. The buses

Lots of documents are required, especially if you drive into

leave from Mombasa Road, after the Nyio Stadium rounda-

Kenya at one border and leave from another. In many bor-

bout and you should allow nine hours for the trip.

ders you will not be able to get a visa, so it is better to obtain

Tel: +254-20-675-0103/217592, Fax: +254-20-556709.

it from the appropriate embassy before travelling. If you want to travel up country, you have to go to the

Renting a Car

Machakos Bus Station in town (locally known as Machakos Airport!). There are several offices there where you buy your

To rent a saloon car for one day costs approximately

tickets before entering the bus.

KSH5,600, while the cost of hiring a 4x4 car can range from KSH11,000 to KSH15,000. If you don’t want to drive your-

Matatu

self, most car rental companies provide drivers – add up to KSH1,200 per day. For car rental companies please check

The name comes from the Swahili for “three” (tatu),

the Business Resources section (page 000) under “Rent a

because when they started working they matatu cost only

Car”.

KSH3. This is the transport that the majority of the local people travel on. They are usually colourful minibuses, with

Driving Licence and Permits

loud music blaring out of the windows. The matatu network can take you almost anywhere you want to go; nevertheless it is a notorious mode of transport, known for its wild drivers

A foreign licence may be used for up to six months, after

and frequent accidents. That being said there is now a new

which time a Kenyan driving licence must be obtained. The

law that requires the matatu driver not to drive over

first Kenyan licence you are issued is valid for one year, after

80km/h.

which it can be renewed for a period of three years.

Taxis Taxis are probably the safest form of transport within Nairobi. There are various types. In some cases one can bargain the price with the driver; sometimes the taxis have fixed prices. The latter, which are the black British taxis, can

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

usually be found in front of hotels and in other tourist areas. The former can be found all over town, and usually have

EMBASSIES

little, wooden, removable signs stating “Taxi” on top of the roof of their white cars. Taxis can also be called by tele-

Kenyan Embassies Abroad

phone. The most serious taxi companies are Kenatco and Jatco:

Australia

(See taxis information at Business Resources section)

6th Floor, O.B.E. Building 33–35 Ainstie Ave, Canberra Tel: +61-02-624788

Mini-buses

Fax: +61-02-62474311

This form of transport is used mostly for safaris; either priva-

Other accredited countries: New Zealand

tely or for groups. They are safe and reasonably comfor-

Austria

table.

Neulinggasse, 29/8, 1030 Vienna

BY TRAIN

Tel: +43-1-7123919 Fax: +43-1-7123922

Kenya Railways operates over 2,630km of track. Comfortable sleeper services exist between Nairobi and

Belgium

Mombasa, and Nairobi and Kisumu. Unfortunately taking

Avenue Winston Churchill 208, 1180 Brussels

the train is a long and tedious process, sometimes taking

Tel: +32-2-3401040

more than 13 hours. Passenger service is only performed

Fax: +32-2-3401051

nightly. Mount Kenya is the second highest peak in Africa at 5,199m

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

Other accredited countries: Luxembourg, Shengen

Other accredited countries: Austria, Bulgaria

countries

India Canada

E-66 Vasant Marg, 10057 New Delhi

415 Laurier Avenue East, Ottowa, Ontario

Tel: +91-11-6146538

Tel: +1-613-5631773

Fax: +91-11-6146550

Fax: +1-613-2336599 Other accredited countries: Bangladesh, Sri Lanka

China 4xi Liu Jie, San Li Tun, 100600 Beijing

Iran

Tel: +86-10-65323381

46 Golshar Street, Tehran

Fax: +86-10-65323325

Tel: +98-21-2057479 Fax: +98-21-2053372

Other accredited countries: Philippines, Thailand

Israel Congo, Democratic Republic

15 Rehov Abba Hillel Silver, 3rd Floor, Ramat Gan 52522, Tel

4002 Avenue Louganda, Kinshasa

Aviv Tel: +972-3-5754633

Egypt

Fax: +972-3-5754788

20 Boulos Hanna Street, Dokki, Cairo Tel: +20-2-3453628

Italy

Fax: +20-2-3442400

Via Archmede 164, 00197 Rome Tel: +39-06-8082714

Other accredited countries: Algeria, Morocco, Tunisia

Fax: +39-06-8082707

Ethiopia

Other accredited countries: Greece, Malta, Poland

Fikre Mariam Road, Addis Ababa Tel: +251-1-610033

Japan

Fax: +251-1-611443

No.224-3 Yakumo, 3-Chome, Meguro-Ku, 152 Tokyo Tel: +81-3-37234006

Other accredited countries: Djibouti, Organisation of

Fax: +81-3-37234488

African Union countries

Malaysia France

2304 Level 23, Menara Lion, 165 Jalan Ampang, 50450

3 rue Freycinet, 75116 Paris

Kuala Lumpur

Tel: +33-1-56622525

Tel: +60-3-2629005

Fax: +33-1-47204441

Fax: +60-3-2629007

Other

accredited

countries:

Yugoslavia

Portugal,

Spain,

Namibia 134 Leutwein Street, Windhoek Tel: +264-61-225900

Germany

Fax: +264-61-226836

Max Grafen Str. 63, 10969 Berlin Tel: +49-30-2592660

Netherlands

Fax: +49-30-2592650

Nieuwe Parklaan 21, 2597 The Hague

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

Tel: +31-70-3504215

Tel: +249-11-460386

Fax: +31-70-3553594

Fax: +249-11-472264

Other accredited countries: Czech Republic, Slovakia

Sweden Birger Jarlsgatan L 37, 2nd Floor, 10395 Stockholm

Nigeria

Tel: +46-8-218300

52 Yinkan Abayomi Drive, Lagos

Fax: +46-8-218309

Tel: +234-1-682768

Switzerland

Fax: +234-1-685532

1–3 Avenue de la Paix, 1202 Geneva Other accredited countries: Benin, Cote d’Ivoire,

Tel: +41-22-412656

Ghana, Liberia, Sierra Leone, Togo

Fax: +41-22-7312905

Pakistan

Tanzania

House No.10, Street No. 9, Sector F-7/3, Islamabad

NIC Investment House, 14th Floor, Samora Avenue, Dar Es

Tel: +92-51-279540

Salaam

Fax: +92-51-279541

Tel: +255-22-112955 Fax: +255-22-113098

Russia 7 Bolshaia Ordinka, Moscow

Uganda

Tel: +7-095-2374702

Plot No 41, Nakasero Road, Kampala

Fax: +7-095-2302340

Tel: 041-258235 Fax: 041-258239

Rwanda P.O. Box 1215 Kigali

United Arab Emirates

Tel: +250-82774

P.O. Box 3854, Abu Dhabi

Fax: +250-86234

Tel: +971-2-666300 Fax: +971-2-652827

Other accredited countries: Burundi

United Kingdom Saudi Arabia

45 Portland Place, London

Riyadh 11693, Riyadh

Tel: +44-20-7636271

Tel: +966-1-4882484

Fax:+44-20-73236717

Fax: +966-1-4882629 Other countries accredited: Ireland Other accredited countries: Bahrain, Iraq, Kuwait, Yemen

United States of America 2249 R. Street N.W., 20008 Washington D.C.

South Africa

Tel: +1-202-3876101

302 Brooks Street, Melo Park, 0081Johannesburg

Fax: +1-202-4623829

Tel: + 27-12-3622249 Fax: +27-12-3622252

Other countries accredited: Mexico, Colombia

Sudan

Zambia

Street 3, Amarat, Khartoum

5207 United Nations Avenue, Lusaka

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

Tel: +260-1-250722

Embassy of Belgium

Fax: +260-1-25389

Limuru Road, Muthaiga P.O. Box 30461, Nairobi

Other countries accredited: Botswana, Malawi

Tel: +254-20-7122166 Fax: +254-20-7123050

Zimbabwe

Email: ambabel@kenyaweb.com

95 Park Lane, Harare Tel: +263-1-704637

Botswana Consulate General

Fax: +263-1-723040

Riverside Drive, Nairobi P.O. Box 754, 00606 Nairobi

Other countries accredited: Lesotho, Mozambique,

Tel: +254-20-444-7735

Swaziland

Fax: +254-20-444-9782 Email: botswanagovt@mitsuminet.com

FOREIGN EMBASSIES IN KENYA

Embassy of Brazil Eagle Court, 2nd Floor, Nairobi

Embassy of Algeria

Tel: +254-20-375-3268

Ngong Road, Nairobi

Fax: +254-20-376-6442

Tel: +254-20-565173

Email: kenbrem@africaonline.co.ke

Fax: +254-20-337286

British High Commission Embassy of Argentina

Upper Hill Road. P.O. Box 30465, 00100 Nairobi

House No.3, Kitisuru Road, Nairobi

Tel: +254-20-2844000

Tel: +254-20-7183119

Fax: +254-20-2719082

Fax: +254-20-7121585

Email: bhcinfo@iconnect.co.ke

Email: ekeny@bidii.com

Embassy of Burundi Australian High Commission

Development House, 14th Floor, Moi Avenue, Nairobi

ICIPE House, Riverside Drive, Nairobi

Tel: +254-20-575249

Tel: +254-20-4445034

Fax: +254-20-575113

Fax: +254-20-4444718

Canadian High Commission Embassy of Austria

Limuru Road, Gigiri, Nairobi

City House, 2nd Floor, Wabera Street, Nairobi

Tel: +254-20-3663000

Tel: +254-20-319076

Fax: +254-20-3663900

Fax: +254-20-342290 Email: nairobi-ob@bmaa.gv.at

Embassy of Chile James Gichuru Road, Nairobi

Bangladesh High Commission

Tel: +254-20-577658

Ole Odume Road, off Arkwings Kodhek, Nairobi

Fax: +254-20-4349707

Tel: +254-20-570701

Email: echile@echile.co.ke

Fax: +254-20-574133 Email: bdken@iconnect.co.ke

Embassy of The Peopleâ&#x20AC;&#x2122;s Republic of China Woodlands Road, Nairobi

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

Tel: +254-20-2726851

Email: ethioemb@kenyaweb.com

Fax: +254-20-2726402

Embassy of France

Email: embcn@africaonliine.co.ke

Barclays Plaza Building, 9th Floor, Loita Street, Nairobi

Embassy of Colombia

Tel: +254-20-339783

International Life House, 8th Floor, Mama Ngina St, Nairobi

Fax: +254-20-217013

Tel: +254-20-246770

Email: ambafr@iconnect.co.ke

Fax: +254-20-246772 Email: emkenia@colombia.or.ke

Embassy of the Republic of Germany Riverside Drive 113, Nairobi

Embassy of the Democratic Republic of Congo

Tel: +254-20-4262100

Electricity House, 12th Floor, Harambee Ave, Nairobi

Email: ger-emb@kenyaweb.com

Fax: +254-20-4262129

Tel: +254-20-229771 Fax: +254-20-334539

Embassy of Greece

Email: ambrdcon@africaonline.co.ke

Nation Centre, 13th Floor, Nairobi Tel: +254-20-340722

Cyprus High Commission

Fax: +254-20-216044

Eagle House, 5th Floor, Kimathi St., Nairobi

Email: embgr@kenyaweb.com

Tel: +254-20-220881 Fax: +254-20-331232

Indian High Commission Jeevan Bharat House, 2nd Floor, Nairobi

Embassy of the Czech Republic

Tel: +254-20-222566

Embassy House, Harambee Avenue, Nairobi

Fax: +254-20-334167

Tel: +254-20-210494

Email: hcindia@form-net.com

Fax: +254-20-223447 Email: zamini.cz@net2000ke.com

Embassy of Israel Bishops Road, Nairobi

Danish Royal Embassy

Tel: +254-20-2722182

HFCK Building. Kenyatta Avenue

Fax: +254-20-2715966

P.O. Box 40412, Nairobi

Email: israemb@futurenet.co.ke

Tel: +254-20-331088 Fax: +254-20-331492

Embassy of Italy

Email: nboamb@um.dk

International Life House, 9th Floor, Mama Ngina St, Nairobi Tel: +254-20-337356

Embassy of Egypt

Fax: +254-20-337056

Kingara Road, Nairobi

Email: italdipl@ambnair.org

Tel: +254-20-570360 Fax: +254-20-570383

Embassy of Japan

eMail: egypte@yahoo.com

ICEA Building, Kenyatta Ave, Nairobi Tel: +254-20-332955

Embassy of Ethiopia

Fax: +254-20-216530

State House Avenue, Nairobi

Email: embjap@wananchi.com

Tel: +254-20-2732050 Fax: +254-20-2732054

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

Embassy of Korea

Royal Norwegian Embassy

Anniversary Towers, 15th Floor, University Way, Nairobi

International Life House, 1st Floor, Mama Ngina St, Nairobi

Tel: +254-20-333581

Tel: +254-20-341420

Fax: +254-20-217772

Fax: +254-20-216009

Email: emb-ke@mofat.go.kr

Email: emb.nairobi@mfa.no

Embassy of Kuwait

Pakistan High Commission

Muthaiga Road, Nairobi

Church Road, Westlands, Nairobi

Tel: +254-20-2730573

Tel: +254-20-4443911

Fax: +254-20-3765032

Fax: +254-20-4443803

Email: kuwait@kenyaonline.com

Email: prepnairobi@wananchi.com

Libyan Peopleâ&#x20AC;&#x2122;s Bureau

Embassy of Portugal

Jamahiriya House, Loita Street, Nairobi

Re-Insurance Plaza, 10th Floor, Taifa Road, Nairobi

Tel: +254-20-250380

Tel: +254-20-338990

Fax: +254-20-243730

Fax: +254-20-214711

Email: jamahiriyanbi@wananchi.com

Email: portugal@kenyaweb.com

Consulate of Madagascar

Embassy of the Russian Federation

AACC Building, Waiyaki Way, Westlands, Nairobi

Lenana Road, Nairobi

Tel: +254-20-4450432

Tel: +254-20-2722462 Fax: +254-20-2721888

Embassy of Mexico

Email: russemb@swiftkenya.com

Kibakare Way, Loresho Tel: +254-20-583009

Embassy of Rwanda

Fax: +254-20-581500

International Life House, 12th Floor, Mama Ngina St, Nairobi

Email: mexico@embamexiken.com

Tel: +254-20-317400 Fax: +254-20-317403

Mozambique High Commission

Email: rwanemba@wananchi.com

Bruce House, 3rd Floor, Standard St, Nairobi Tel: +254-20-221979

Royal Embassy of Saudi Arabia

Fax: +254-20-222446

Muthaiga Road, Opp Muthaiga Country Club, Nairobi

Email: mozhicom@swiftkenya.com

Tel: +254-20-3762781 Fax: +254-20-214527

Royal Embassy of the Netherlands

Email: saudi@wananchi.com

Riverside Lane, Nairobi Tel: +254-20-4447412

South African High Commission

Fax: +254-20-4447416

Roshanmaer Place, 3rd Floor, Lenana Rd, Nairobi

Email: nlgovnai@africaonline.co.ke

Tel: +254-20-2827000 Fax: +254-20-2827236

Nigerian High Commission

Email: sahc@africaonline.co.ke

Lenana Road, Kilimani, Nairobi Tel: +254-20-562805

Embassy of Spain

Fax: +254-20-575871

International Life House, 3rd Floor, Mama Ngina St., Nairobi

Email: nigken@todays.co.ke

Tel: +254-20-342228/342232/336330

eBizguides Kenya

G E N E R A L I N F O R M AT I O N

Fax: +254-20-246009

Tel: +254-20-228735

Email: embespke@mail.mae.es

Fax: +254-20-217388 Email: sdc@nai.rep.admin.ch

Embassy of the Republic of Sudan Tel: +254-20-2720883

High Commission of the United Republic of Tanzania

Fax: +254-20-2710612

Re-Insurance Plaza, 9th Floor, Nairobi

Email: sudanemb@africaonline.co.ke

Tel: +254-20-219961

Minet ICDC Building, Mamlaka Road, Nairobi

Fax: +254-20-218269

Embassy of Sweden

Email: tanzania@africaonline.co.ke

Lion Place, 3rd Floor, Waiyaki Way, Nairobi Tel: +254-20-4234000

Thai Royal Embassy

Fax: +254-20-4234070

Ambassador House, Rose Ave, Nairobi

Email: ambassaden.nairobi@sida.se

Tel: +254-20-2715796 Fax: +254-20-2715801

Embassy of Switzerland

Email: thainbi@form-net.com

International Life House, 7th Floor, Mama Ngina St, Nairobi The Masai are reknowned for their beautiful beadings

G E N E R A L I N F O R M AT I O N

eBizguides Kenya

Uganda High Commission Riverside Paddoks, Nairobi Tel: +254-20-4445420 Fax: +254-4443772 Email: ugacomnrb@todays.co.ke

Embassy of the United States of America United States Ave, Gigiri, Nairobi Tel: +254-4443028 Fax: +254-3636157

Embassy of Venezuela International Life House, 1st Floor, Mama Ngina St, Nairobi Tel: +254-20-340134 Fax: +254-20-337487 Email: embavene@swiftkenya.com

Embasy of Yemen Ngong/Kabernet Road, Nairobi Tel: +254-574650 Fax: +254-574680

Zambian High Commission Nyerere Road, Nairobi Tel: +254-20-2724796 Fax: +254-20-2718494 Email: zambiacom@swiftkenya.com

Zimbabwe High Commission 2 Westlands Close, Westlands Road, Nairobi For those countries not featured, please contact the Ministry of Foreign Affairs in your own country for updates on the honorary consul who represents you in Kenya.

B U S I N E S S

R E S O U R C E S

â&#x20AC;&#x153; A parentâ&#x20AC;&#x2122;s blessings are better than their inheritanceâ&#x20AC;? Kenyan proverb

BUSINESS RESOURCES

eBizguides Kenya Fax: +254-20-271-7610

ADVERTISING AGENCIES

Email: info@ogilvy.co.ke

Saatchi & Saatchi Lowe Scanad

Ideas House, Muthithi Road

The Chancery, Valley Road

P.O. Box 41305, Nairobi

P.O. Box 34537, Nairobi

Tel: +254-20-374-8070

Tel: +254-20-271-0021/9

Fax: +254-20-374-8148

Fax: +254-20-271-8772

Email: mcl@mcl-saatchi.co.ke

Email: emily.mutua@scanad.com

Tequila Kenya McCann Erickson

Film Studio Complex, Jamhuri Road

General Mathenge Drive, off Lower Kabete

P.O. Box 47279, 00100 Nairobi

P.O. Box 48541, 00100 Nairobi

Tel: +254-20-576616

Tel: +254-20-445-0260-63

Fax: +254-20-576524

Fax:+254-20-445-0262

Email: info@tequilakenya.com

Email: mccann@africaonline.co.ke

AIR CHARTERS Ogilvy & Mather Kolobot Gardens

African Sky Charters

P.O. Box 30280, Nairobi

Wilson Airport

Tel: +254-20-271-7748

P.O. Box 40813, 00100 Nairobi

eBizguides Kenya

BUSINESS RESOURCES

Tel: +254-20-601467

Fax: +254-62-32787

Fax: +254-20-506997

Email: tropic@africaonline.co.ke

Email: africansky@africaonline.co.ke

Website: www.tropicair-kenya.com

East African Air Charters

BANKS

Wilson Airport P.O. Box 42730, 00100 Nairobi

Tel: +254-20-603858

Monday–Friday, 9am–3pm, and some-

general

banks

Fax: +254-20-605862

times on Saturday mornings. Please

Email: eaaircharters@bidii.com

check with your local branch.

Phoenix Aviation

Bank of Africa

Wilson Airport

Re-Insurance Plaza, Taifa Road

P.O. Box 49493, 00100 Nairobi

P.O. Box 69562 , 00400 Nairobi

Tel: +254-20-605835-7

Tel: +254-20-211175

Fax: +254-20- 604049

Fax: +254-214166

Email: phoenix@kenyaweb.com

Email: bkofafrica@boakenya.com

Tropic Air

Bank of Baroda

P.O. Box 161, Nanyuki

Tom Mboya Street

Tel: +254-62 32890/32891

P.O. Box 30033, 00100 Nairobi Small aircraft often ferry passengers to the Game Parks and Reserves

are

open

BUSINESS RESOURCES

eBizguides Kenya

Tel: +254-20-337611

P.O. Box 30691, 00100 Nairobi

Fax: +254-20-333089

Tel: +254-20-2710514

Email: barodabk_ho@form-net.com

Fax: +254-20-2713391 Email: fabk@fabk.com

Barclays Bank of Kenya Barclays Plaza, Loita Street

Kenya Commercial Bank

P.O. Box 30120, 00100 Nairobi

Kencom House, Moi Avenue

Tel: +254-20-313405

P.O. Box 48400, 00100 Nairobi

Fax: +254-20-331969

Tel: +254-20-250820

Email: elisabeth.njoroge@barclays.com

Fax: +254-20-210564 Email: kcbhq@kcb.co.ke

Central Bank of Kenya Haile Selassie Avenue

National Bank

P.O. Box 60000, 00200 Nairobi

National Bank Building, Harambee Avenue

Tel: +254-20-246000

P.O. Box 72866, 00200 Nairobi

Fax: +254-20-340192

Tel: +254-20-226471 Fax: +254-20-330784

Citibank

Email: info@nationalbank.co.ke

Citibank Building, Upper Hill Road P.O. Box 30711, 00100 Nairobi

National Industrial Credit Bank

Tel: +254-20-2711221

Masaba Road, off Uhuru Highway

Fax: +254-20-2714811

P.O. Box 44599, 00100 Nairobi Tel: +254-20-2888000

Commercial Bank of Africa

Fax: +254-20-2718232

CBA Building, Wabera/Standard Street

Email: info@nic-bank.com

P.O. Box 30437, 00100 Nairobi Tel: +254-20-228881

Stanbic Bank Kenya

Fax: +254-20-335827

Stanbic Building, Kenyatta Avenue

Email: cba@cba.co.ke

P.O. Box 30550, 00100 Nairobi Tel: +254-20-311997

Co-operative Bank of Kenya

Fax: +254-20-310601

Co-operative House, Haile Selassie Avenue

Email: stanbic@africaonline.co.ke

P.O. Box 48231, 00100 Nairobi Tel: +254-20-32076100

Standard Chartered Bank

Fax: +254-20-227747

Stanbank House, Moi Avenue

Email: customercare@co-opbank.co.ke

P.O. Box 30003, 00100 Nairobi Tel: +254-20-32093000

Diamond Trust Bank Kenya

Fax: +254-20-214994

Nation Centre, 8th floor, Kimathi Street

Email: talk.to.us@ke.standardchartered.com

P.O. Box 61711, 00200 Nairobi Tel: +254-20-210988

CARGO

Fax: +254-20-214525

Aerologistics First American Bank

Uganda House, 5th floor, Kenyatta Avenue

First American Bank Building, Nyerere Road

P.O. Box 5660, 00200 Nairobi

eBizguides Kenya

BUSINESS RESOURCES

Tel: +254-20-313949

Tel: +254-20-822156

Fax: +254-20-215950

Fax: +254-20-822157

Website: www.aerologistics.org

CATERERS Air France Cargo Centre, JKIA

All the main hotels have an outside catering facility, just

P.O. Box 30159, 00100 Nairobi

call the banqueting department of the hotel of your

Tel: +254-20-822355

choice for more information. For hotel listings see

Fax: +254-20-352380

‘Leisure’ section.

Astral Aviation

Muthaiga Caterers

Rhapta Road, Westlands

Parklands Road, Muthaiga

P.O. Box 594, 00606 Nairobi

P.O. Box 65783, 00607 Nairobi

Tel: +254-20-4444869

Tel: +254-722-724009

Fax: +254-20-4441214

Fax: +254-722-775989

Website: www.astral-aviation.com

Party Perfect Services British Airways

Purvi House, Mpaka Rd, Westlands

Cargo Centre, JKIA

P.O. Box 8695, 00100 Nairobi

P.O. Box 19073, 00100 Nairobi

Tel: +254-20-4440668

Tel: +254-20-822144

Fax: +254-20-4440669

Fax: +254-20-822929

Prime Cuts Emirates SkyCargo

Village Market, Gigiri

Cargo Centre, 1st floor, JKIA

P.O. Box 58871, 00200 Nairobi

P.O. Box 40993, 00100 Nairobi

Tel: +254-20-7122633

Tel: +254-20-824017

Fax: +254-20-7122635

Fax: +254-20-823957

Kenya Airways / KLM

CONFERENCE FACILITIES

Nairobi Cargo Center, JKIA P.O. Box 19142, 00501 Nairobi

All the main hotels have conference facilities available,

Tel: +254-20-32822200

with a variety of packages. Call the sales department of

Fax: +254-20-822808

the hotel of your choice for further information. For more

website: www.klmcargo.com

hotel information, see ‘Leisure’ on page 000. There are conference facilities at the following centres:

Lufthansa Cargo Nairobi Cargo Center, 5th floor, JKIA

Amref International Training Centre

P.O. Box 30320, 00500 Nairobi

Langata Road, Opp. Wilson Airport

Tel: +254-20-825365

P.O. Box 27691, 00506 Nairobi

Fax: +254-20-825372

Tel: +254-20-605220 Fax: +254-20-609518

Swissport Cargo Services

Email: amrefitc@amrefhq.org

Nairobi Cargo Centre P.O. Box 19225, 00500 Nairobi

BUSINESS RESOURCES

Kenyatta International Conference Center (KICC)

eBizguides Kenya

COURIER EXPRESS

Harambee Avenue, City Centre P.O. Box 30746, 00100 Nairobi

The Kenyan postal service is cheap and relatively reliable. At the

Tel: +254-20-247290/214535

majority of post offices you will also be able to send letters and par-

Fax: +254-20-310223

cels cheaply through EMS. If you want something a little faster and more securely try the one of the following express courier services:

CONFERENCE ORGANISERS

DHL DHL House, Industrial Area

ECO

P.O. Box 67577, 00200 Nairobi

Exhibition and Conference Organisers

Tel: +254-20-6925120

(Contract Stand Builders & Event Managers)

Fax: +254-20-536803

97 James Gichuru road, Lavington

Email: booking@nbo.co.ke.dhl.com

P.O. Box 47768, Nairobi

Website: www.dhl.co.ke

Tel: +254-20-4446862 Email: charlescc@eventsafrica.com

Securicor Courier Airport North Road

Golf Plus

P.O. Box 30242, 00100 Nairobi

(Corporate golf events organisers, PR consultants

Tel: +254-20-823041

and publishers of Golf Plus magazine)

Fax: +254-20-821931

P.O. Box 6864, Nairobi

Email: maureen.kendi@courier.securicor.co.ke

Tel: +254-721-235138 Email: info@golfplus.co.ke Kenya International Conference Centre

Skynet Worldwide Express Mansour Complex, Witu Road, Industrial Area P.O. Box 40545, 00100 Nairobi Tel: +254-20-536833/4/5 Fax: +254-20-537089 Email: skyinfo@skynetexpress.co.ke

TMX Express Vision Plaza, 3rd floor, Mombasa Road P.O. Box 4630, 00506 Nairobi Tel: +254-20-828054 Fax: +254-20- 828647 Email: info@tmxexpress.com Website: www.tmxexpress.com

TNT International Express Kiambere Road P.O. Box 41520, 00100 Nairobi Tel: +254-20-2716970 Fax: +254-20-2723077 Email: info@tntkenya.com Website: www.tnt.com

eBizguides Kenya

BUSINESS RESOURCES

United Parcel Service (UPS)

FOREX BUREAU

Airport North Road, Nairobi P.O. Box 46586 , 00100 Nairobi Tel: +254-20-32821600 or 252200

Amex Forex Bureau

Fax: +254-20- 823124

IPS Building, Ground Floor, Standard Street

Website: www.ups.com

Nairobi Tel: +254-20-246469/243495/245157

DENTAL CLINICS

Mobile: +254-722-230391/733-561938 Email: info@amex.co.ke

Dr Lubna Khawaja Unga House, Westlands, Nairobi

Aristrocrats Forex Bureau

Tel: +254-20-3748578

Kenindia House, 2nd floor, Loita Street

Fax: +254-20-3748804

Tel: +254-20-228080 Email: aristoforex@nbi.ispkenya.com

Swedish Dental Clinic Othaya Road, Lavington, Nairobi

Euro Dollar Bureau de Change

Tel: +254-20-566438

Mpaka House, Ground Floor, Mpaka Road,

Fax: +254-20-565556

Westlands, Nairobi Tel: +254-20-4448501/4448502.

DRY CLEANERS

Mobile: +254-721-533440/734-619916 Email: info@eurodollar.co.ke

All major hotels have an outside dry-cleaning facility. Itâ&#x20AC;&#x2122;s the safest. Otherwise you can try:

Forex Bureau Afro Jamia Plaza, Ground Floor, Kigali Street,

Micos Dry Cleaners

City Centre, Nairobi

Gigiri Shopping Centre, Nairobi

Tel: +254-20-250676/247047/222950

Tel: +254-20-522965

Mobile: +254-722-271709 Email: info@amex.co.ke

Tintoria Village Market, Gigiri, Nairobi

Gigiri Forex Bureau

Tel: +254-20-7122984/4448664

Gigiri Shopping Centre, Ground Floor, United Nations Avenue, Gigiri, Nairobi

White Rose Drycleaners (branches all over Nairobi)

Tel: +254-20-521515/520498/6752850

Riverside Drive, Westlands, Nairobi

Email: info@amex.co.ke

Mobile: +254-721-884932/254-734/520851

Tel: +254-20-224000/444-0661

Glory Forex Bureau Windsor Dry Cleaners

Norwich Union Building, Opp. Hilton Hotel, Nairobi

Mobile Plaza, Muthaiga, Nairobi

Tel: +254-20-243115

Tel: +254-20-3764435

Maxfair Forex Bureau Standard Building, Ground Floor, Wabera Street, Nairobi Tel: +254-20-226212 Email: maxfair@swiftkenya.com

BUSINESS RESOURCES

Muthaiga Forex Bureau

eBizguides Kenya Tel: +254-20-3742752/733-602467

Muthaiga Shopping Centre, Limuru Road, Nairobi Tel: +254-20-3748883

Institut de Beaute

Email: muthaigaforex@hotmail.com

Riverside Lane, off Riverside Drive, Nairobi Tel: +254-20-4446804/722-528580

Village Market Forex Bureau Village Market, Opp. Food Court, Nairobi

Narcisse Hair Salon

Tel: +254-20-7122901

Sarit Centre, 2nd floor, Nairobi

Email: vmfb@africaonline.co.ke

Tel: +254-20-35743804/722-521027

Yaya Centre Exchange Bureau

Queens Hair Designers

Yaya Centre, 2nd Floor, Nairobi

Standard Building 2nd Floor, Standard Street, Nairobi

Tel: +254-20-569097

Tel: +254-20-214088

HAIR AND BEAUTY

HEALTH CLUBS

Beauty Quest

All the major hotels have a health club and there are the

Sarit Centre, 2nd floor, Nairobi

following independent clubs:

Tel: +254-20-3740435/3750535

Body Heaven Danielles Hair Salon Muthaiga Shopping Market, Nairobi

Warwick Centre, Nairobi Tel: +254-20-7120787 Mombasa, the second business center of the country

eBizguides Kenya

Natural Therapy

BUSINESS RESOURCES Website: www.britak.co.ke

3rd Parklands Avenue, Nairobi Tel: +254-20-3750237

Co-operative Insurance Company Bima House, 6th floor, Harambee Avenue

The Arena

P.O. Box 59485, Nairobi

Sarit Centre, 2nd floor, Nairobi

Tel: +254-20-227008

Tel: +254-20-4449484

Fax: +254-20-311854 Email: cic@co-op-ins.co.ke

HOTELS See â&#x20AC;&#x2DC;Leisureâ&#x20AC;&#x2122; section

Website: www.co-op-ins.co.ke

Geminia Insurance Co Agip House, 3rd floor, Haile Salassie Avenue P.O. Box 61316, Nairobi

INSURANCE

Tel: +254-20-223377 Fax: +254-20-219338

Alico

Email: info@geminia.co.ke

Alico House, Mamlaka Road

Website: www.geminia.co.ke

P.O. Box 30364, 00100 Nairobi Tel: +254-20-2866000

Jubilee Insurance

Fax: +254-20-2718365

Jubilee Insurance House, Wabera Street

Email: alicogen.kenya@aig.com

P.O. Box 30376, 00100 Nairobi

Website: www.alico-kenya.com

Tel: +254-20-32081000 Fax: +254-20-32081150

AON

Email: jic@jubileekenya.com

AON Minet House, Nyerere Road

Website: www.jubileeinsurance.com

P.O. Box 48279, 00100 Nairobi Tel: +254-20-271-0053

Kenyan Alliance Insurance

Fax: +254-20-272-2437

Chester House, 1st floor, Koinange Street

Email: adm@aon.co.ke

P.O. Box 30170, 00100 Nairobi

Website: www.aon.co.ke

Tel: +254-20-241626 Fax: +254-20-217340

Apollo Insurance

Email: kai@kenyanalliance.com

Hughes Building, 6th Floor, Kenyatta Avenue

Website: www.kenyanalliance.com

P.O. Box 30389, 00100 Nairobi Tel: +254-20-223562

Old Mutual Life Assurance

Fax: +254-20-2862200

Old Mutual Building, Corner Mara/Hospital Road

Email: info@apainsurance.org

P.O. Box 30059, 00100 Nairobi

Website: www.apainsurance.org

Tel: +254-20-221187 Fax: +254-20-2722415

British American

Email: contact@oldmutualkenya.com

Mara/Ragati Road, Capitol Hill

Website: www.oldmutualkenya.com

P.O. Box 30375, 00100 Nairobi Tel: +254-20-2710927

Pan African Life Assurance

Fax: +254-20-2717626

Pan Africa House, Kenyatta Avenue

Email: britak@britak.co.ke

P.O. Box 44041, 00100 Nairobi

BUSINESS RESOURCES

eBizguides Kenya

Tel: +254-20-247600

Swift Global

Fax: +254-20-217675

Mombasa Road, Nairobi

Email: insurance@pan-africa.com

Tel: +254-20-69021000

Website: www.pan-africa.com

Email: sales@swiftkenya.com Website: www.swiftkenya.com

Royal Insurance Co of East Africa Ltd

Approx KSH3,500 for one month, unlimited web time

Royal Ngao House, Hospital Road P.O. Box 40001, 00100 Nairobi

Wananchi

Tel: +254-20-2712620

Loita House, Loita Street, Nairobi

Fax: +254-20-2717888

Tel: +254-20-224152

Email: general@nbi.royalinsurance.com

Email: sales@wananchi.com

Website: www.royalinsurance.com

Website: www.wananchi.com Approx KSH6,500 for six months, unlimited web time

Starlit Insurance Brokers Ltd Sclaters House, 1st Floor, Parklands Road P.O. Box 10778, 00100 Nairobi

LANGUAGE CENTRES

Tel: +254-20-3212212 Email: admin@starlit.co.ke

Alliance Franรงaise

Website: www.starlit.co.ke

Loita Street, City Centre, Nairobi Tel: +254-20-4349415

Trinity Life Assurance Company

Email: afmba@africaonline.co.ke

Reinsurance Plaza, 5th floor P.O. Box 12043, 00400 Nairobi

British Council

Tel: +254-20-244229

National Theatre Compound, Nairobi

Fax: +254-20-249835

Tel: +254-20-334855

Email: trinity@swiftkenya.com

Email: teaching.centre@britishcouncil.or.ke Website: www.britishcouncil.org

INTERNET SERVICE PROVIDERS

Goethe Institut Maendeleo House, Monrovia Street, Nairobi

Africa Online

Tel: +254-20-211381

Rahimtulla Towers, 15th floor, Upper Hill, Nairobi

Email: nbo-prog@goethe.or.ke

Tel: +254-20-243775

Website: www.goethe.de/nairobi

Email: info@africaonline.co.ke Website: www.africaonline.com

Language Centre

Approx KSH12 for one month, unlimited web time

Ndemi Road, Hurlingham, Nairobi Tel: +254-20-569531

Kenyaweb

Email: tlc@africaonline.co.ke

Finance House, 14th floor, Nairobi

Website: www.language-cntr.com

Tel: +254-20-245630 Email: info@kenyaweb.com Website: www.kenyaweb.com Approx KSH6 for one month, unlimited web time

eBizguides Kenya

BUSINESS RESOURCES

The East African

LEGAL ADVICE

Nation Centre, Kimathi Street, Nairobi Tel: +254-20-32088406

There are over two hundred advocates registered in

Email: eastafrican@nationmedia.co.ke

Nairobi. The main ones are:

Website: www.nationmedia.com/eastafrican

Ernst & Young

The Nation

Re-Towers, Upper Hill

Nation Centre, Kimathi Street, Nairobi

Tel: +254-20-2715300

Tel: +254-20-3288000

Email: info@ey.co.ke

Email: nation@users.africaonline.co.ke Website: www.nationmedia.com

Kaplan & Stratton Advocates Queensway House, Kaunda Street, Nairobi

The Standard

Tel: +254-20-32085000

Likoni Road, Industrial Area

Email: ks@kapstrat.com

Tel: +254-20-552510 Email: editorial@eastandard.net

Omar K. Amin Advocates

Website: www.eastandard.net

Hilton Hotel, Mezzanine floor, Nairobi Tel: +254-20-242443

MEDICAL SERVICES

Email: amin@iconnect.co.ke

Hospitals Omamo & Omamo Advocates Jubilee Insurance House, 4th floor, Nairobi

Aga Khan Hospital

Tel: +254-20-229680

3rd Parklands Avenue, Nairobi

Email: migiko@iconnect.co.ke

Tel: +254-20-3740000 Fax: +254-20-3741749

Raffman Elms & Virdee Advocates

Email: admin@akhksm.co.ke

Museum Hill Centre, Nairobi Tel: +254-20-3741450

Aga Khan Hospital

Email: email@rev.co.ke

Vanga Road, off Nyerere, Mombasa Tel. +254-41-312953

Wanjao & Wanjau Advocates

Fax: +254-41-313278

Standard Building, 2nd floor, Nairobi

Email: akhm@msa.akhskenya.org

Tel: +254-20-252874 Email: wawa@insightkenya.com

Gertrudeâ&#x20AC;&#x2122;s Garden Children Hospital Muthaiga Road, Muthaiga, Nairobi

MEDIA

Tel: +254-20-3763474 Fax: +254-20-3763291

The Coast Week

Email: info@gerties.org

Oriental Bldg, Nkrumah Road, Mombasa

Website: www.gerties.org

Tel: +254-41-230125/230130 Email: coastwk@africaonline.co.ke

Mater Hospital

Website: www.coastweek.com

Dunga Road, Industrial Area, Nairobi Tel: +254-20-531199 Fax: +254-20-534289

BUSINESS RESOURCES

eBizguides Kenya

Email: inform@materkenya.com Website: www.materkenya.com

Health Services

M P Shah Hospital

AAR Health Service

Shivachi Road, Parklands, Nairobi

Williamson House, 4th Ngong Avenue, Nairobi

Tel: +254-20-3742763

Tel: +254-20-2715319

Fax: +254-20-3746177

Fax: +254-20-2715328

Email: info@mpshahhosp.org

Email: info@aar.co.ke Website: www.aarhealth.com

Nairobi Hospital Argwings Kodhek Road, Nairobi

Acacia

Tel:+254-20-2722160/352101/2714400

General Accident House, 1st floor, Ralph Bunche Road

Fax: +254-20-2728003

Tel: +254-20-2711611

Email: hosp@nbihosp.org Website: www.nairobihospital.org

AMREF Flying Doctors AMREF House, Wilson Airport, Nairobi Nairobi offers excellent medical services

eBizguides Kenya

BUSINESS RESOURCES

Tel: +254-20-315454

Belladona

Fax: +254-20-601594

Village Market, Nairobi

Email: flyingdocs@amrefke.org

Tel: +254-20-7122141/47

Website: www.amref.org

Hic Pharmaceuticals

OFFICE SUPPORT

Diamond Plaza, Ground floor, 4th Parklands Road, Nairobi

Mitsumi Computer Garage

Tel: +254-20-3752423

(hardware, software and accessories in Nairobi and Mombasa)

Pekan Pharmacy

Muthithi Road, Westlands and Caxton

Jubilee insurance House, Mama Ngina Street, Nairobi

House, Standard Street

Tel: +254-20-223877

P.O. Box 32735, 80100 Nairobi Tel: +254-20-3741819/3745347/3751726

Westlands Medical Stores

Email: sales@mitsuminet.com or

Waumini House, Chiromo Road, Nairobi

salesmsa@mitsuminet.com (Mombasa)

Tel: +254-20-4446936

Office Technologies Ltd

Yaya Chemist

Victoria Towers, Upper Hill

Yaya Centre, Ground floor, Nairobi

P.O. Box 27574, 00506 Nairobi

Tel: +254-20-561582

Tel: +254-20-2731648 Fax: +25-20-2731651

The Nairobi Hospital

Email: info@officetechnologies.co.ke

Also has a 24-hour pharmacy, which is open seven days a week.

There are shops supplying office material in the main

Argwings Kodhek Road, Nairobi

shopping malls – “Text Book” in the Sarit Centre, and

Tel:+254-20- 2722160/352101/2714400

Yaya Centre, and many along Mama Ngina Street in the city centre.

PHOTOGRAPHY

PHARMACIES

There are places to buy and develop films in all the shopping malls. The best one in the city centre and Westlands

AAA Pharmaceuticals

is:

Woodvale Grove, Westlands, Nairobi

Expo Camera

Tel: +254-20-4451092

Mama Ngina Street, Nairobi

ABC Pharmacy

Tel: +254-20-221797

ABC Place, Waiyaki Way, Nairobi Tel: +254-20-442402

REAL ESTATE

Acacia

Haas Consult

General Accident House, 1st floor, Ralph Bunche Road,

ABC Place, 1st Floor, Waiyaki Way, Nairobi

Nairobi

Tel: +254-20-4446914

Tel: +254-20-2711611

Fax: +254-20-4447200 Email: info@haasconsult.co.ke Website: www.haasconsult.co.ke

BUSINESS RESOURCES

eBizguides Kenya

Knight Frank

Tel: +254-20-229117

Lion Place, Waiyaki Way, Westlands, Nairobi

Fax: +254-20-241160

Tel: +254-20-4440174

Email: tererbks@regent-mgt.com

Fax: +254-20-4440040

Website: www.regent-mgt.com

Email: info@knightfrank.co.ke

Sedco Consultants Ltd

Website: www.knightfrank.com

Maendelo House, 9th floor, Loita Street,Nairobi

Nwrealite Ltd

Tel: +254-20-217042

Chaka Place, 2nd floor, Argwings Kodhek Road, Nairobi

Fax: +254-20-214147

Tel: +254-20-2717384

Email: sedco@africaonline.co.ke

Fax: +254-2721380

REMOVALS

Email: info@nwrealite.co.ke Website: www.nwrealite.co.ke

AGS Frasers International Regent Management

Old Mombasa Road, Nairobi

Regent House, Upper Hill Road, Nairobi

P.O. Box 14061, 00800 Nairobi

Tented camps are one of the luxuries of Kenyan Safaris

eBizguides Kenya

BUSINESS RESOURCES

Tel: +254-20-823490, 823191

RENT A CAR

Fax: +254-20-823491 Email: agskenya@kenyaonline.com Website: www.ags-worldwide-movers.com

Avis College House, University Way, Nairobi

Worldwide Movers Kenya

Tel: +254-20-336704

Ring Road, Kileleschwa, Nairobi

Fax: +254-20-339111

P.O. Box 46748, 00100 Nairobi

Email: info@avis.co.ke

Tel: +254-20-4347281

website: www.avisworld.com

Fax: +254-20-4343377 Email: wwmke@africaonline.co.ke

Avis at Jomo Kenyatta Int. Airport

Website: www.wwmovers-africa.com

Tel: +254-20-827675

Avis in Mombasa Southern House, Moi Avenue, Nairobi Tel: +254-41-314950 Village Market, a popular retreat for all on weekends

BUSINESS RESOURCES Email: avismsa@wananchi.com

eBizguides Kenya Fax: +254 20 608871 Email: Ulinzi@wananchi.com

Budget Mombasa Road, Opp. MPPS, Nairobi

Pinkertons Security Services

Tel: +254-20-652144

Aarpee House, Lusaka Road

Fax: +254-20-652150

P.O. Box 56130, 00200 Nairobi

Email: carrental@budget.co.ke

Tel: +254-20-651443

Website: www.budget-kenya.com

Fax: +254-20-651440 Email: pinkerton@wananchi.com

Glory Hilton Hotel, Mama Ngina Street, Nairobi

Securicor Security Services Kenya

Tel: +254-20-214289

Witu Road, off Lusaka Road

Fax: +254-20-214290

P.O. Box 30242, 00100 Nairobi

Email: glorycarhire@bidii.com

Tel: +254-20-532360 Fax: +254-20-532380

Hertz

Email: info@securicor.co.ke

Hilton Hotel, City Centre, Nairobi

Website: www.securicor.com

Tel: +254-20-250000 Fax: +254-20-250099

Security Group

Email: info@hertz.co.ke

Mombasa Road P.O. Box 18670, 00500 Nairobi

Sunworld Safaris & Vehicle Renting

Tel: +254-20-531276

Riverside Lane, off Riverside Drive, Nairobi

Fax: +254-20-533045

Tel: +254-20-4445680

Email: info@securitygroupke.com

Fax: +254-20-4445673

Website: www.securitygrp.com

Email: sunworld@iconnect.co.ke

RESTAURANTS

SHIPPING Delmas Kenya / SDV Transami

See ‘Leisure’ section

Airport North Road, Embakasi P.O. Box 46586, 00100 Nairobi Tel: +254-20-823111

SECURITY SERVICES

Fax: +254-20-823195 Email: nairobi@delmas.co.ke

EARS Group

Website: www.delmas.com

Ndemi Road, off Ngong Road P.O. Box 59045, 00200 Nairobi

Maersk

Tel: +254-20-572091

International House, Mama Ngina Street

Fax: +254-20-562695

P.O. Box 43986 , 00100 Nairobi

Email: security@ears.co.ke

Tel: +254-20-828910-6 Fax: +254-20-828921-2

John Sutton and Associates

Email: nrbsalexp@maersk.com

Phoenix Aviation Hangar, Wilson Airport

Website: www.maersksealand.com

P.O. Box 24166, 00502 Nairobi Tel:+254-20-608868/78

eBizguides Kenya

Oceanfreight Rehani House, 6th floor, Koinange Street

BUSINESS RESOURCES

SHOPPING CENTRES

P.O. Box 43994, 00100 Nairobi Tel: +254-20-229601

Sarit Centre

Fax: +254-20-214319

Westlands

Email: ocenfrtnrb@nrb.oceanfreight.co.ke

Tel: +254-20-3747408/9 Email: info@saritcentre.com

P&O Nedlloyd

website: www.saritcentre.com

Panari House, Mombasa Road

Lots of shops, a health club, cinemas and a food hall

P.O. Box 49952, 00100 Nairobi Tel: +254-20-821201/821202

Village Market

Fax: +254-20-823177

Gigiri, Nairobi

Email: mml@africaonline.co.ke

Tel: +254-20-7122488/90

Website: www.ponl.com

website: www.villagemarket.net Shops, cinemas, restaurants, and plays host to the Masaai Market

PIL

on Fridays

Gateway Place, Milimani Road P.O. Box 40109, 00100 Nairobi

Yaya Centre

Tel: +254-20-2721240

Hurlingham, Nairobi

Fax: +254-20-2719589

Tel: +254-20-2713360

Email: customercare@nbo.pilship.com

Email: info@yaya.co.ke

Website: www.pilship.com

website: www.yaya-centre.co.ke Shops, bakery, restaurants, and plays host to the Masaai Market on Sundays Security Groupâ&#x20AC;&#x2122;s Dog Unit training facility

BUSINESS RESOURCES

eBizguides Kenya

SPORT ACTIVITIES

Flying

There are sports equipment shops in the major shopping

CMC Flying School

malls (Village Market, Yaya Centre, Sarit Centre, The

Wilson Airport, Nairobi

Mall). In the city centre go to the Nairobi Sports House on

Tel: +254-20-604495

Moi Avenue, Tel: +254-20-244626.

Kenya School of Flying

Bowling

Wilson Airport, Nairobi

Village Market, Nairobi

Tel: +254-20-607892

Tel: +254-20-7123141

Golf Carting

You donâ&#x20AC;&#x2122;t need to be a member of these golf courses,

On Langata Road, Carnivore Lane, Nairobi

but will just need to pay the green fee:

Tel: +254-20-608444

Royal Golf Club

Deep Sea Fishing

Ngong Road, Nairobi

There are some places very good for deep sea fishing,

Tel: +254-20-272-5769/272-4215

including the Hemingsways Hotel in Watamu and, in

Vetlab

Mombasa, the most professional is:

Approximately 35 minutes from the city centre

Seapower

Tel: +254-20-630324

Tel: +254-41-548-6225

Windsor Golf Club

Email: WalterBrun@wananchi.com

Approximately 50 minutes from city centre,

Diving

Tel: +254-20-862300

Buccaneer Diving

Horse Riding

Whitesands, North Coast, Mombasa,

Arifa Riding School

Tel: +254-41-475022

Marula Lane, Karen, Nairobi

Diving the Crab

Tel:+254-20-882937

Diani Beach, Mombasa Tel: +254-40-320-3400

Karen Riding School,in Karen

Nairobi Sailing & Sub Aqua Club, Langata Road, Nairobi,

Tel: +254-722-773/733-735259

Tel: +254-20-604142

Hunting Fishing

There are only a few birds you are allowed to hunt in

There are many places where you can fish in Kenya, inclu-

Kenya. Call KWS to get more information for a hunting

ding a fishing lodge in the Aberdares Park. Contact the

permit: Tel: +254-20-602345 or look at website:

Kenya Wildlife Service (KWS) for bookings: Tel: +254-20-

www.kws.org.

602345.

Mountain climbing The most famous mountain for climbing is, of course, Mount Kenya.

eBizguides Kenya

BUSINESS RESOURCES

Mountain Rock They can help you organise a climb

TAXIS

Tel: +254-20-242133 Email: mountainrock@intoafrica.co.ke.

Arcade Taxis Tel: +254-20-273-0050

Rafting Buz a Cab Savage Wilderness Safaris

Tel: +254-20-828585

Tel: +254-20-7121590 Website: www.whitewaterkenya.com

Jatco Tel: +254-20-4446096

Shooting Kenatco Taxis Kenya Regiment Rifle Club

Tel: +254-20-225123/221561

Langata Road, Nairobi

They operate in Nairobi as well as in Mombasa.

Tel: +254-20-675-2788

Nairobi Cabs & Tours Limuru Gun Club

Tel: +254-20-224320

Ruiru Tel: +254-20-564181

THEATRE

email guy@chlorideexide.com for more information

National Theatre

Skydiving

Opposite Norfolk Hotel, Nairobi Tel: +254-20-225506

Cap. Harro Tel. +254-20-884258

Phoenix Players

Email: skydive@africaonline.co.ke

Parliament Road, City Centre, Nairobi Tel: +254-20-212661

Swimming All major hotels have a swimming pool.

TRAVEL AGENCIES

Splash Water World

See ‘Leisure’ section

The biggest outdoor pool. Carnivore Lane, Nairobi Tel: +254-20-603777

Tennis Tennis Academy Hurlingham, Nairobi Tel: +254-20-568534

BUSINESS RESOURCES

eBizguides Kenya

I N V E S T M E N T

L E G A L

F R A M E W O R K

â&#x20AC;&#x153;Little by little, fills the potâ&#x20AC;? Kenyan proverb

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

point to most of the countries in East and Central Africa.

WHY DO BUSINESS IN KENYA?

Despite a number of problems in the recent past, Mombasa has still been in a position to handle significant levels of imports and exports in the region. With the

As it has an open market economy, Kenya proves “easy

development plans currently being implemented it is

access” for investors in various areas – there is lack of

expected that the flow of goods through the port will

government control, free movement of money and

become much smoother and faster.

people, and access to a competent human resource base. The Trans-African Highway, which links Mombasa to The communication sector has been progressively libera-

Kampala, and the wide road network are both being

lised and there are plans to have a second fixed-line ope-

upgraded; they make the movement of goods from the

rator as well as a third mobile-phone operator.

This,

port to the towns and cities in East Africa straightfor-

together with the liberalisation of bandwidth access,

ward. This is supported by a decent railway network

makes communication with the rest of the world much

together with a well-developed air transport system.

easier from Kenya. The financial sector in Kenya has a large and sophistiMombasa, East Africa’s main port since the days of the

cated banking and insurance industry with over 35 banks

Portuguese traders, has proved to be a major access

and over 30 insurance companies. The regulatory autho-

The Kenyan flag, flying high

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

rities (the Central Bank of Kenya and the Commissioner

of customs duties incurred in various investments against

of Insurance) have developed prudent management

income tax payable by the company.

systems for the sector to ensure stability and growth. The sector has also been active in developing ingenious

(v) Capital Allowances – Various capital allowances

products to cater for the various needs of investors, espe-

that include wear and tear allowances, investment

cially for risk management and the flow of money. The

deduction, farm-works deductions, mining allowances,

Nairobi Stock Exchange market, the largest in East Africa

hotel allowances, and so on. The tax allowances range

and one of the longest established in the continent, has

from 12.5% to 100% of the investment undertaken.

recently implemented the Central Depository System, which has greatly reduced the time taken in trading

(vi) Duty Drawback – Import duty drawback allows for

stocks and other financial securities. Plans are under way

the recovery of import duties paid for goods, which are

to establish the “over the counter market”, which is

subsequently exported in the same state. It allows inves-

intended greatly to assist companies that wish to make

tors to re-export goods that were not initially intended

public borrowing and have no desire to either quote or

for export.

issue commercial papers. The land tenure system, currently under review for furAs a member of the East African Community and the

ther development, allows for freehold as well as lease-

Common Market of East and Southern Africa (COMESA),

hold land. There is little restriction to non-Kenyans hol-

Kenya further proves to be a pivotal country for the trade

ding land. There is also little restriction on the use of

of goods in all the 23 countries that are members of

land. However, environmental considerations are para-

these trade unions. The tax structure is such that there

mount.

are a large number of tax incentives of which many investors can take advantage. These include:

Though the treaty network is not large, Kenya currently has double tax agreements with some of the major tax

The Export Process Zone (EPZ) – Established under the

partners. There are also numerous bilateral trade agree-

Export Processing Zone Act, the EPZ facilitates the manu-

ments between Kenya and most of the major trading

facture of goods for export.

partners.

Some of the benefits

accruing to EPZ companies include duty free import of goods and raw materials, exemption from income tax for

On the political front Kenya has proved to be a haven of

the first ten years of the company’s life and reduced

peace in the region. Not only has the country managed

income tax rates thereafter.

to sustain its stability in the light of difficult times, it has also been instrumental to the securing peace in countries

Tax Remission for Export Office (TREO) scheme –

such as Somalia, the Sudan, Uganda and Ethiopia.

This is also intended to assist industries that manufacture for export but are also involved in production for the

With peace in the region, a wide trans-

domestic market. The TREO scheme allows for tax-free

port network, a stable communication infrastructure, decent judiciary, sophis-

importation and purchase of goods that are used in

ticated financial market and wide human resource

manufacturing for export.

base, Kenya is clearly a country of choice in the (iii) Manufacture Under Bond (MUB) – Also intended

region with regard to investment.

to assist exporters, the MUB scheme allows for the securing of duties and VAT through bank bonds, which are subsequently cancelled on proof of export. (iv) Customs Duty Set-off – This allows for the set-off

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

Laws specifically intended for foreign investment include

DOMESTIC LAWS RELEVANT FOR BUSINESS IN KENYA

the Foreign Investments Protection Act and the Export Processing Zones Act, while that intended to protect intellectual property rights is contained in the Trademarks and Copyright Acts.

Business people and potential investors in Kenya must invariably consider the legal regime within which busi-

The Environmental Management and Coordination Act

nesses generally operate in Kenya, and those that speci-

exists to regulate the manner in which entities involved in

fically influence the type of engagements that businesses

activities that may have an impact on the environmental

would be involved in or, in the event of disputes, the

conduct their operations.

applicable law that may be used in adjudicating the matters arising. Various aspects of legislation are elaborated

There is law relating to the ownership, use and transfer

on in other parts of this publication. In this section we

of land in Kenya, which depends upon the specific legis-

provide an outline of important legislation that may be of

lation under which the land is registered. In addition law

interest when doing business in Kenya.

exists governing the control of ownership of land and planning.

The land laws also regulate the manner in

A wide range of legislation exists in Kenya relating to, in

which security can be taken on land in order to secure

the foremost, formation, management and dissolution of

money lent. On the other hand, raising funds from the

business associations. A business may in this regard be

public is regulated by the Capital Markets and Central

regulated by the legislation under which it is formed,

Bank of Kenya Acts.

such as the companies, partnerships and agency legislation, or as a cooperative, or by any of the industry spe-

The law pertaining to the raising of public finance is

cific legislations as the Banking and Insurance Acts.

found under the Income Tax, Value Added Tax, the recently enacted East African Customs Management Act

An investor will be interested in the law in relation to the

and other legislation meant to collect levies to support

human resources that may be engaged to carry out the

various specific objectives such as the Hotel levy, Road

activities of the entity. The law regulating employment is

and Fuel levy and the Stamp Duty Acts.

contained in the Employment, Regulation of Wages and Conditions of Employment, Trade Unions, Trade Disputes

Lastly, Kenya has a judicial system that allows for the

and the Workmanâ&#x20AC;&#x2122;s Compensation Acts.

resolution of disputes through a hierarchy of courts defined under the Judicature Act or resolution under the

A business entity will enter into contracts and other agre-

Arbitration Act.

ements with other entities. These may, depending on the

to protect consumers such as the Sale of Goods Act.

INVESTMENT LEGISLATION IN KENYA

In the event that the entity is involved in trade, various

Kenya has made major strides in establishing legislation

pieces of legislation may be relevant. Regulatory legisla-

to improve the investment climate in the country. Shortly

tion is applicable to standards, trade licensing, and

after independence, the Foreign Investment Protection

transfer of business, imports, exports and certain essen-

Act was enacted to provide protection against expropria-

tial supplies. There is also competition law in the name

tion of pre- and post-independence foreign investments.

of Restrictive Trade Practices and Monopolies and Price

In addition, this Act has been amended over time to

Control Acts.

ensure that foreign investors enjoy sufficient investment

nature of the agreement, be regulated by the Law of Contracts Act or by the various acts whose purpose it is

freedom.

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

To steer the investments, the Kenyan government has

To facilitate the mobilisation of investment capital from

established regulatory authorities or bodies in almost

the local and international financial markets, Kenya has a

every sector of the economy. The role of these authori-

well-defined capital market, which is regulated by the

ties is to license new entrants and develop rules and

Capital Markets Authority.

regulations to govern the respective sectors. This implies

amended in 1994 in order to permit local borrowing by

that before setting up any kind of investment, one has to

foreign controlled entities, and the Exchange Controls

identify the regulatory authority in the intended sector

Act was repealed in 1995 to remove restrictions on the

and make an application for a licence to operate in that

entry and exit of foreign currency either as capital or as

sector.

profits.

Where the intended investment cuts across a number of sectors, applications have to be made to different regulatory bodies for licensing. This has been a major bottle-

The Companies Act was

INVESTMENT INCENTIVES AND BENEFITS IN KENYA

neck in promoting investments owing to the delays in the processing the licences. To avoid this problem and acce-

Even without a structured investment incentive regime,

lerate foreign direct investments, the Kenyan govern-

there are several schemes that can broadly fall within the

ment established the Investment Promotion Centre (IPC)

definition of investment incentives and benefits.

to serve as a one-stop shop for investors. It helps foreign

main reasoning behind most of these schemes is to

and local investors to identify investment opportunities in

increase the level of exports out of, and flow of foreign

Kenya, evaluates investment proposals and issues inves-

direct investments into, the country. Ultimately, this

tment certificates. In addition, it provides assistance in

increases the level of employment in the country in ques-

the procurement of various licences from different regu-

tion.

The

latory authorities. The key schemes (as outline earlier) are as follows: In 1994, Kenya embarked on public sector reform, which was significantly characterised by rationalisation of

• Export processing zones (EPZs)

government spending through privatisation. However,

• Tax Remission for Export Office (TREO) scheme

this process was not smooth owing to the lack of legisla-

• Manufacturing Under Bond (MUB)

tion to coordinate and govern it. To address this pro-

• Accelerated capital allowances (investment deductions)

blem, the government has now drafted and presented to

• Various customs and administrative incentives.

parliament for debate the Privatization bill.

This is

expected to speed up the government’s divestiture process from the private sector. Once this bill is enacted

EXPORT PROCESS ZONE SCHEME

several investment opportunities are expected to arise for Established under the Export Processing Zones Act, this

both local and foreign investors.

scheme is available to companies engaged in manufactuAnother piece of legislation linked to the Privatization bill

ring, commercial and service industries solely for the

and currently pending in Parliament is the Investment

export market. Firms operating under this scheme have

Code. This legislation is aimed at establishing clear gui-

the following benefits:

delines for processing investment applications and upgrading the IPC to a fully fledged investment supermarket

• Exemption from all custom and excise duties on all

for Kenya. Further, to shorten the delays in the approval

imports for use in the eligible business activities of the

of investments the government has proposed in this bill

EPZ

to give the IPC power to issue all the licences currently

• Exemption from registration for VAT

being issued by various regulatory authorities.

• A ten-year income tax holiday, followed by a reduced

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

income tax rate of 25% in the following ten years

Commissioner of Customs and Excise on application, and

• A ten-year exemption from withholding taxes on divi-

a schedule of the permissible quantities that will be

dends and other payments made to non-residents to run

imported duty free will be maintained by the TREO office,

together with the above income tax holiday

Ministry of Finance.

• Exemption from stamp duty • Exemption from quotas or other restrictions or prohibitions on import or export trade with the exception of

MANUFACTURING UNDER BOND SCHEME

trade in firearms, military equipment or other illegal goods

While the EPZ is targeted at those whose activity is the

• Exemption from exchange controls

production of goods for export, the Manufacturing

• Exemptions from rent or tenancy controls

Under Bond (MUB) scheme also caters for those manu-

• No restriction on management or technical arrange-

facturers who sell a part of their products in the local

ment

market. However, when sold in the domestic market, an

• Single licensing processed through the EPZ authority.

additional surcharge is imposed. The keys incentives are:

THE TAX REMISSION FOR EXPORT OFFICE SCHEME

• Exemption from duty and VAT on imported plant, machinery, equipment, raw materials and other imported inputs.

Under the Tax Remission for Export Office (TREO)

• A 100% investment allowance on plant, machinery,

scheme, the following incentives to exporters are avai-

equipment and buildings.

lable: Unlike EPZs, there is no requirement for the MUB enter• Duty and VAT remission on raw materials (other than

prises to be stationed in designated areas.

fuels, lubricants) imported for use if the manufacture of goods for export or in the production of raw materials for

INVESTMENT DEDUCTIONS

use in export manufacture • A uniform import declaration fee (IDF) of KSH5,000

Investment deductions are a form of accelerated capital

(US$63) instead of the usual 2.75% on the (Free On

allowances that are granted to any one investing in:

Board) value • Buildings and machinery used for manufacturing purThe TREO scheme is also extended to goods imported for

poses

use in, or to be attached to, goods manufactured or pro-

• Hotel buildings

duced in Kenya provided that the goods produced:

• Electricity generations for the national grid.

• Are duty free under the First Schedule to the Act or are

For 2004 to 2008, the above investor is allowed a 100%

specified under the Essential Goods Production Support

deduction against the taxable income of the capital

Programme (EGPSP)

expenditure expended above.

• When imported would qualify for full duty remission • Are for official use by the Kenya Armed Forces.

OTHER INCENTIVES

Application for remission of duty is approved by the Tax

Other investment incentives include:

Remission for Exports Office, Ministry of Finance, on • No duties on capital goods and plant

application by the importer.

• For the new investor: remission of duty on capital Users of the TREO scheme will be gazetted by the

equipment; remission of VAT on factory expansion and

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

replacement, and 100% investment deduction on the

dividends, interest, management fees and any other legi-

buildings and equipment for manufacturing

timate ways of recouping gains from business.

• Indefinite carrying forward of losses

• Capital repatriation, but although this is generally

• Free, unhindered repatriation of profits and capital

allowed, from the wording of the Act it would appear

following the removal of exchange controls and the

that FIPA does not allow for repatriation of that part of

enactment of the Foreign Investment Protection Act

the capital investment that represents an increase in the

• A guarantee against expropriation of investment.

value of the investment. This means that only the face value of the capital indicated in the certificate can be

INVESTMENT GUARANTEES

repatriated. The Act also specifically mentions that any increase in the value of the asset shall not be deemed to be profits for the purposes of this Act. However, in prac-

Four decades after independence, modern private inves-

tice any restriction on repatriation of any capital of wha-

tment in Kenya is still weak, largely informal and unable

tever nature has not been experienced.

to compete in the world marketplace.

• The principal and interest of any loan specified in the

Many people

believe that perception of risk by investors and financiers

certificate is secured.

has been a major obstacle to investment. Investment guarantees are designed to encourage foreign inves-

In addition, the Kenyan constitution provides guarantees

tment critical to the country’s economic development.

against expropriation of private property, except in cer-

Although guarantees will not, by themselves, lead to a

tain circumstances, which include acquisition necessary in

boom in investment, they help catalyse the much-needed

the interest of defence, public safety, public order, public

international investment.

health, public morality, town and country planning, or the use of any property in such manner as to promote the

Risks associated with international investment that can

public benefit.

be mitigated through investment guarantees include, but are not limited to, foreign currency transfer restrictions

Parties aggrieved by any such acquisition are entitled to

that inhibit capital and profit repatriation, expropriation

prompt compensation and have a right of direct access to

of private property – acquisition of an enterprise or its

the High Court.

property by the government – and restrictions on privileges as a foreign national.

Kenya is also a member of the International Centre for Settlement of Investment Disputes (ICSID).

The provi-

In short, foreign investors require that their rights be gua-

sions of articles 18 to 24 of the ICSID convention, which

ranteed before they can put their money in the country.

confer certain immunities and privileges on ICSID, have

In Kenya, these rights are enshrined in both the Foreign

been adopted as part of the laws of Kenya.

Investments Protection Act (FIPA) and the constitution of Kenya.

ICSID provides facilities for conciliation and arbitration of investment disputes between the contracting states and

FIPA provides that a foreign national who proposes to

nationals of the contracting states in accordance with the

invest foreign assets in Kenya may apply to the Minister

provisions of the convention.

of Finance for a certificate. The certificate confirms that the enterprise in which the assets are to be invested is an approved enterprise for purpose of FIPA. Becoming an

INTERNATIONAL AGREEMENTS

“approved” enterprise provides the following guarantees Each country taxes income according to the rules

to a foreign investor.

outlined in its tax acts. However, the taxation rules of • After-tax profits can be repatriated; these may include

countries differ, and with the activities of modern entities

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

and individuals frequently spanning a number of diffe-

enter into tax agreements to reduce the incidence of

rent territories, the income they generate might be con-

double taxation by defining when each country has a

sidered as taxable in more than one country, or even not

right to taxation. In some circumstances, both countries

taxable at all.

are entitled to tax the same income, but the amount that can be withheld is capped in one of the countries. When

The issue of international taxation is covered, in the first

this happens, the treaty usually also provides relief from

instance, by a country’s own legislation. Countries will

double taxation, either through a tax credit or exemption.

normally tax income according to residence or source. Kenya has specific rules on who is a resident or non-resi-

The Organisation for Economic Cooperation and

dent for taxation purposes, but taxes both on their

Development (OECD) has developed a model tax treaty to

income sourced from Kenya.

This is a source-based

help standardise international taxation agreements and

system. The exception is for resident individuals, who are

to facilitate the implementation of new tax treaties bet-

taxed on worldwide employment income regardless of

ween nations. It is important to note that a double tax

where it is sourced. Uganda and Tanzania, on the other

treaty will take precedence over the domestic legislation

hand, tax on a residence-based system. Residents are

where the two conflict. However, treaties are normally

taxed on worldwide income, and non-residents only on

worded so that they do not create a new tax. This is the

income sourced in those countries.

case with Kenyan double taxation treaties. This means that while a tax treaty may grant Kenya taxing rights, a

Where a non-resident taxpayer has a fixed place of busi-

particular transaction will still not be taxable in Kenya

ness in Kenya, known as a permanent establishment, the

unless the domestic legislation actually imposes tax on

permanent establishment is taxed on its Kenyan sourced

that transaction.

income at the higher rate of 37.5%. Where the non-resident does not have a fixed place of business, forcing

The benefits a tax treaty imposes lead investors to go

them to lodge a return and pay tax becomes more diffi-

“treaty shopping” when determining how to structure a

cult. The Kenya Revenue Authority therefore ensures it

new investment into a new area. Kenya has treaties with

gets some tax from these persons by demanding resi-

the UK, Canada, Denmark, Germany, India, Norway,

dents paying specified income to that non-resident, with-

Sweden and Zambia. Countries with a wider treaty net-

holds tax at given percentage, and submits it to the

work have an advantage when it comes to finding a

Kenya Revenue Authority.

regional hub. Typically a double tax agreement covers the following

Where income is taxed in another jurisdiction, Kenya

areas:

allows for the foreign tax paid to be treated as an allowable deduction in computing the Kenyan tax payable

• Residency

on that income. This reduces the amount of double taxa-

• Associates and transfer pricing

tion on that income, but does not eliminate it. Other

• The taxation of permanent establishments and the

countries, like Uganda and Tanzania, allow for a foreign

taxation of their profits

tax credit, whereby foreign tax paid is offset against

• Dividends

domestic tax payable on that same income.

• Interest

In these

cases, the foreign tax credit allowed normally cannot

• Immoveable property

exceed the amount of domestic tax that would have been

• Royalties

payable on that income.

• Management and directors’ fees • Capital gains

The second level of international taxation involves double

• Dependent and independent personal services

tax agreements. Double taxation is effectively a barrier to

• Transporters, entertainers, students

trade and, to encourage international trade, countries

• Pensions

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

• Other income not specifically mentioned

that an entity bears, in comparison with its equity levels,

• Non-discrimination

is regulated to a commercially justifiable level. Interest

• Exchange of information

deductions on debt exceeding this level are disallowed.

• The provision of tax relief to eliminate double taxation,

This stops companies over-gearing to repatriate profit in

including a mutual agreement procedure between

the form of tax-deductible interest, as opposed to divi-

revenue authorities to eliminate double taxation and

dends for which no deduction is allowed.

resolve disputes.

TAXATION IN KENYA With income tax rates varying significantly from country to country, international taxpayers notice those countries in which it is more beneficial to be taxed than others.

TAXATION OF RESIDENT ENTITIES

Countries compete for investment, and an important factor is the favourability of their tax system. Typically, it

A company or other body of persons is regarded as a resi-

is those countries lacking strong resources or a strategic

dent in Kenya if it is incorporated under Kenyan law, if

position that compete the hardest, creating what are

the management and control of its affairs are exercised in

known as tax havens. Taxpayers develop international

Kenya, or if it is declared resident by the Minister of

structures making use of low tax jurisdictions, minimising

Finance in the official gazette.

their global tax expense. Alternatively, a foreign investor

income accruing in, or derived from, Kenya. When a resi-

may simply want to repatriate as much income as pos-

dent person partly within and partly outside Kenya carries

sible to the parent company’s jurisdiction with the

on a business, the whole of the profit of that business is

minimum tax leakage.

deemed to accrue in or be derived from Kenya.

In order to protect their revenue, countries enact anti-

Corporate Income Tax – The corporate income tax rate

avoidance rules designed to restrict artificial transactions

for residents is 30% and 37.5% for non-residents. The

removing income out of a country’s tax net, and shifting

corporation tax rate for newly listed companies with a

it to a more favourable jurisdiction. The anti-avoidance

listed capital of more than 20% of the paid-up capital

rules come in different forms. Kenya has a general anti-

will be reduced to 27% for a period of three years with

avoidance rule that allows the Kenya Revenue Authority

effect from 1sr January 2002 – following the year of lis-

to restate a transaction whose main purpose, or one of

ting. Companies listing from 1st January 2003 with 30%

the main purposes, is the avoidance or reduction of a lia-

of listed capital have a reduced rate of corporation tax of

bility to tax. This is the Kenya Revenue Authority’s most

25%.

Tax is charged on all

powerful tool in attacking artificial international structures or transactions that are tax driven, and not carried

Taxable Income – Taxable profits are based on profits

out for commercial reasons.

disclosed in the statutory accounts, which are adjusted for tax purposes. Business income, investment income

An important area of anti-avoidance, which has recently

(except for that of banks and financial institutions), rental

gained prominence in Kenya, is transfer pricing.

income and income from agricultural activities are

Essentially this states that related companies should use

assessed separately, and losses from any one of these

“arm’s length” prices when dealing with each other. The

sources can be set off only against profits from the same

aim of this is to prevent international taxpayers using pri-

source. The ordinary principles of commercial accounting

cing as a mechanism for shifting profits out of the

generally apply to the calculation of income.

country by being overcharged for expenses or being under-compensated for their sales by related entities. A

Inventory Valuation – Any method of inventory valua-

related anti-avoidance measure covers thinly capitalised

tion sanctioned by accounting principles is accepted, as

entities. In this case, the level of interest-bearing debt

long as it is applied consistently. However, this is an area

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

that the income tax authorities are closely monitoring as

exempt, as it is not derived from Kenya, except that for

they see it as a means of tax avoidance.

Kenyan branches of non-resident banks on Kenya based assets.

Dividend Income – Dividend income is not included in taxable profits. The dividend income of banks and other

Capital Gains – Capital gains are not taxable in Kenya.

financial institutions is exempt from tax, subject to a disa-

Dividends paid out of capital gains are subject to a com-

llowance of attributable expenses. Also exempt are divi-

pensating tax equivalent to 30/70 of the dividends paid,

dends received by a resident company from another com-

less any credits to the dividend tax account arising from

pany of which the resident company controls 12.5% or

income tax paid and 30/70 of any dividends received.

more of the voting power. Otherwise, dividend income Exchange Differences – Foreign exchange gains or

is subject to a final withholding tax.

losses resulting from a Kenyan business are treated as Foreign Source Income – The business income of resi-

trading receipts or deductible expenses if realized. No

dent companies is taxed on a worldwide basis where

distinction is made between capital or trading transac-

business is carried on or exercised partly within and partly

tions. No account is taken of foreign exchange gains or

outside Kenya. Double taxation is avoided where double

losses arising from transactions between a branch and its

tax treaty applies; otherwise, foreign taxes are treated as

head office. Restrictions are placed on the allowance of

an expense.

foreign exchange losses arising from loans by controlling

Foreign source investment income is

Important investment has been done in the industrial sector in Kenya

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

interests to thinly capitalised companies.

All eligible assets (single allowance):

Rate

• Up to 30th June 2000

60.0

Deductions – The general rule for deducting expenses is

• 1st July 2000 to 31st December 2001

100.0

that the expenses should be incurred wholly and exclusi-

• 2002

85.0

vely in the production of income and should not be of a

• 2003

70.0

capital nature. The Income Tax Act further lists specific

• 2004–2008

100.0

expenses that are allowable when incurred. Mining Allowances (on capital expenditure incurred in Capital Allowances – The Income Tax Act specifies rates

mining specific minerals):

for capital allowances deductible for tax purposes.

• Year 1

40.0

• Years 2–7

10.0

RATES OF DEPRECIATION • Shipping investment deduction (calculated on cost of a Types of Depreciation Allowance

new or used and refitted

40.0

Wear and tear allowance (calculated on cost, net of any investment deduction allowance on a reducing balance

Interest – Interest paid on borrowings incurred to gene-

basis):

rate investment income (excluding dividend income) is

Tractors and trucks heavier than 3 tons and similar heavy

deductible to the extent of investment income earned.

self propelled vehicles 37.5 (%)

Interest payments by a non-resident controlled company

• Computer hardware, calculators, copiers and

are not deductible, to the extent that loans made to that

duplicating machines

company exceed three times the sum of paid-up capital

• Aircraft

30.0 (%)

25.0 (%)

and revenue reserves – thin capitalisation.

• Motor vehicles (if not commercial, limited to a notional cost of KSH1 million • Ships

Management Fees – Management fees paid to some

25.0(%)

12.5(%)

non-residents are deductible only to the extent that the

• Plant and Machinery, furniture and fittings, and other

Commissioner of Income Tax considers them to be just

equipment 12.5(%)

and reasonable.

Industrial buildings allowance (calculated on cost, net of

Taxes – Direct Kenyan taxes are not deductible, but

any investment deduction allowance, according to the

other domestic taxes are deductible.

straight line method): • Industrial buildings • Hotels

Tax Treatment of Losses – Losses can be carried for-

2.5(%)

4.0(%)

ward indefinitely and set off against income from the

Farm works allowance (calculated on cost, according to

same source but cannot be set off against the income of

the straight line method:

earlier years – except on liquidation.

• Structures (excluding machinery) necessary for proper

cannot be offset against income, and there is no provi-

operation of a farm

sion for transferring losses between companies.

33.3(%)

Investment deduction allowance (calculated on the cost of buildings and machinery used for manufacturing pur-

Capital losses

TAXATION OF NON-RESIDENT ENTITIES

poses and on hotel buildings): Non-residents are taxable on income accruing in or derived from Kenya.

Branches of non-resident companies are

taxed at a rate of 37.5%. Payments by residents to nonresidents of interest, dividends, management, professional

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

or technical fees, royalties, asset leasing, pensions shipping

ments are paid is due no later than the last day of the

or rents are deemed to be income derived from Kenya and

fourth month following the financial year-end.

are subject to a final withholding tax. A final return, accompanied by the taxpayer’s accounts

TAXATION OF GROUPS OF COMPANIES

and a computation of the tax liability, must be submitted no later than the last day of the sixth month following the financial year-end. No extension is possible. The

Kenya does not provide for the filing of consolidated

Commissioner can issue an estimated assessment if a tax-

returns or for the transfer of losses from one member of

payer fails to submit a final return.

a group to another. Transactions between a resident and

levied for failure to submit a return or to pay tax or for

a non-resident company under common control, if

the underestimation of tax.

Penalties can be

carried out at artificial prices, can be taxed on the basis of the profits that would have accrued to the resident

Tax Treatment of Individuals. An individual is taxable

company if dealings had been at “arm’s length”.

on all income accrued in or derived from Kenya. Employment income of a resident individual is taxable on

TAX TREATMENT OF BRANCHES AND SUBSIDIARIES COMPARED

a worldwide basis. Income from other foreign sources is generally not taxable, since it is not derived from Kenya; however, pensions from foreign sources relating to service in Kenya are taxable. An individual is regarded as

The corporate income tax rates are 37.5% for branches and 30% for subsidiaries.

resident if he or she:

A 10% withholding tax is

levied on dividends paid by a subsidiary to a non-resident

• Has a permanent home in Kenya and was present in

parent. This withholding tax does not apply to branches.

Kenya for any period in a particular year of income under

Payments of interest, royalties or management fees by a

consideration; or

subsidiary to its parent are deductible (subject to deduc-

• Has no permanent home in Kenya but:

tion of withholding tax) if considered reasonable in

• was present in Kenya for a period or

amount. These payments are not deductible in the case

periods amounting in total to 183 days or more in that

of a branch. There are also differences in the treatment

year of income; or

of foreign exchange losses incurred by branches and sub-

• was present in Kenya in that year of income

sidiaries in dealing with their parents. Compensating tax

and in each of the two preceding years of income for

will apply in the case of subsidiaries but not to branches.

periods averaging more than 122 days in each year of income.

CORPORATE ASSESSMENTS AND PAYMENTS

Kenyan nationals with chargeable employment income derived from another country will be entitled to set off

The tax year is the calendar year, but a different accoun-

the tax paid in the other country against tax charged in

ting period is allowed for companies only. The taxable

Kenya on the same income. The credit should not exceed

income of a company for a year of income is the taxable

the Kenyan tax component.

income of its accounting period ending in that year. All income is self-assessed. Instalments are payable for the

The taxable employment income of a non-resident is that

current year. The instalments are payable quarterly, in

derived from employment with a Kenyan resident

equal sums, on the 20th day of the fourth month, the

employer or with the permanent establishment in Kenya

20th day of the sixth month, the 20th day of the ninth

of a non-resident employer.

month, and the 20th day of the twelfth month of the accounting period. Any balance owing after the instal-

Treatment of Families – A married woman may elect to

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

file her own income tax return for employment, profes-

Business Income – The business income of individuals is

sional and self-employment income. Where the income

calculated in the same way as that of companies.

of a wife is taxed jointly with that of her husband, in assessing the appropriate rates of tax a wife’s income

Capital Gains – Capital gains are not subject to tax in

from employment, from a specified profession or from a

Kenya.

business is assessed separately. Exempt Income – An employee is not subject to tax on Personal Income Tax Rates – The personal income tax

a passage between Kenya and any place outside Kenya,

rates for the 2005 year of income are:

that is paid for by the employer, provided that the employee is not a Kenyan citizen, was recruited from out-

KSH

Rate

side Kenya, and is in Kenya solely for the purposes of the

• 0–121,968

10%

employment. Exempt income also includes:

• 121,969–236,880

15%

• 236,881–351,792

20%

• The value of medical services provided by an employer

• 351,793–466,704

25%

for a full-time employee (excluding a director, but not a

• 466,705+

30%

fulltime service director) • Employers’ contributions to pension or provident funds;

All income of a resident individual is subject to tax at

with effect from 1st July 2004 employees of employers

these rates, with the exception of dividends (5%) and

not chargeable to tax will however be liable to tax on

interest from financial institutions (15%), interest on

contributions the employers makes to an unregistered

bearer certificates (25%), and income not exceeding

fund or on the excess contribution (contributions over

KSH300,000 per year from housing bonds (10%).

the set threshold) to a registered fund • The educational fees of an employee’s dependents or

Taxable Income – Taxable income is the aggregate of

relatives that are paid and treated as a non-deductible

various types of income, including business income,

expense by the employer.

employment income, rental and investment income, and income from pensions. Specified sources of income also

Deductions and Reliefs – Personal relief is deducted

apply such that a loss in one source can only be offset by

from tax liability. For 2005 year of income, the personal

income from the same source.

relief available to a resident individual is KSH13,944 per annum (in 2004 the relief was KSH12,672 per annum).

Employment Income – Taxable income from employ-

Mortgage interest is deductible from income up to

ment is widely defined and includes wages and salaries,

KSH100,000 per year on approved borrowings for the

commissions, bonuses and allowances. Travelling, enter-

construction or improvement of owner-occupied houses.

tainment and other allowances are taxable unless they

Contributions to registered pension funds are deductible,

represent the reimbursement of expenses incurred in the

subject to a monthly limit of KSH17,500.

production of income.

Benefits in kind are generally

taxable at the higher of cost to the employer or the fair

Personal Assessments and Payments – The tax year is

market value of the benefit.

the calendar year to 31st December. The rules regarding assessments and payments are generally the same as

Dividend and Interest Income – Dividend income and

those described for companies.

interest income received from financial institutions are

income is deducted by employers monthly on the pay-as-

not included in taxable income. They are instead subject

you-earn (PAYE) system. Individuals whose total annual

to final withholding taxes.

tax liability is less than KSH40,000 need not pay tax in

Tax on employment

instalments. Individuals are required to file returns by 30th June annually.

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

Withholding Taxes – The basic rates of withholding tax

• Pensions

on payments to residents and non-residents are shown

• Contractual

below:

• Consultancy and agency

–

2.5

10–30b

• Shipping Type of Income

Resident (%) Non-resident (%)

a = Exempt if the recipient is a bank or other finan-

• Dividends

cial institution or if the recipient owns 12.5% or

• Interest

more of the voting power of the payer

• Interest bearer certificates 25

b = Graduated rates of 10–30%

• Royalties

• Insurance Commission

–

• Insurance Commission – broker

credited against the recipient’s final tax liability; however,

• Management and professional fees

In the case of residents, the tax withheld can usually be tax withheld from dividends and from interest paid to individuals is final. For non-residents, tax withheld from

–

• Rents

–

• Equipment rents

–

any payment is usually final. Rates under Double Tax Treaties – The above table

Sunset in Lake Nakuru National Park

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

gives current non-treaty withholding tax rates for payments to non-residents. The general rate for non-residents is substituted with the treaty rate when lower.

SETTING UP COMMERCIAL COMPANIES

OTHER TAXES Commercial companies may be set up with private Value Added Tax (VAT) – VAT is levied on taxable

limited liability or public limited liability. Private compa-

goods and services in Kenya supplied in the course of fur-

nies may have between two and 50 members while

therance of business and on goods and services imported

public companies should have a minimum of seven mem-

into Kenya.

Persons whose annual turnover exceeds

bers. A private company must have at least one director

KSH3 million per year for the supply of taxable goods or

while the minimum for a public company is two. There

services must register for VAT purposes. The standard

are no restrictions on the nationality of the directors.

rate of VAT is 16%. A rate of 14% applies to restaurant and accommodation services. Exports and goods having

Establishment of banks, building societies, financial insti-

socioeconomic priority are zero-rated. Most foodstuffs

tutions and insurance companies require approval from

are either exempt or zero-rated.

the Ministry of Finance and are subject to minimum capitalisation. Public companies require approval from the

Fringe Benefits Tax – Fringe benefits tax is payable by

Capital Market Authority and the Nairobi Stock

an employer on low interest rate loans provided to

Exchange.

employees or directors. The taxable benefit is the difference between the actual interest paid and interest on

The procedure involved in setting up a company is first to

the loan calculated at the market interest rate published

seek approval and make a reservation of the proposed

by the Commissioner quarterly. The tax is charged at the

name of the company with the Registrar of Companies

corporate income tax rate.

pending the registration of the company. The reservation is valid for 30 days or such longer period not exceeding

Social Security Contributions – A contribution to the

60 days that the Registrar may allow.

National Social Security Fund (NSSF) is, in most cases, mandatory. The contribution consists of 10% of monthly

The purpose of seeking approval of a name is to make

income.

sure that the name is not similar or identical to the name

The maximum total contribution by the

employer and the employee is KSH400.

Half of the

of an existing company. The Registrar is empowered to

KSH400 contribution is paid by the employer and half by

refuse to register a name that in his opinion is undesi-

the employee.

A graduated monthly contribution of

rable. During the reservation period, the Registrar will

approximately 2% of income must also be made to the

neither approve nor register a company whose name is

National Hospital Insurance Fund; the maximum contri-

similar to the name already approved and reserved.

bution is KSH320. After the approval of the name, the approval letter togeMiscellaneous Taxes – Stamp duty is payable on a

ther with documents governing the operations of the

variety of instruments or transactions on the creation or

company are prepared and lodged with the registrar.

increase of capital, on stock transfers of non-quoted

These

companies, on leases, on debentures, and on property

Association and the Articles of Association, among

transfers. Other taxes include a single business permit

others.

documents

include

the

Memorandum

obtainable from the relevant local authority, property rates, customs and excise duties, export duties, an export

The Memorandum of Association sets out the following:

duty on coffee and tea, a refinery throughout tax and an air passenger service tax.

• Name of the company

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

• Its registered place of business

and their occupations. This list is normally provided in

• The objects for which the company is formed

Form 203 and must be signed by a director or secretary-

• A declaration showing that the liability of the members

designate.

are limited to the numbers of shares subscribed by them • Its share capital

Notice of Situation of Registered Office – This notice

• A signed declaration by the subscribers of the company

should accompany other documents for registration and

that they want to form into a company that sets out the

is made in Form 201. It states the physical and postal

names, addresses as well as shares taken by each subs-

address of the company and should be signed by a

criber.

director-designate or secretary designate.

The Articles of Association governs the management of

In addition to the above documents, public companies

the internal operations of the company and covers the

are required to lodge a Form 209 of consent to act as a

following areas:

director, which must be signed by each of the proposed directors showing the full names, addresses and occupa-

• Procedure for making calls

tions of such directors. The company that issues pros-

• Forfeiture of shares

pectus should also file Form 201 giving the company’s

• Alteration of shares

information.

• Rights of various classes of shareholders • Rules governing meetings

The documents are lodged with the Registrar together

• Appointment, powers and remuneration of directors

with the requisite fees. The Registrar, on being satisfied

• Common seal, its custody and use.

that all the requirements have been met, issues a Certificate of Incorporation.

The Certificate of

After preparation of Memorandum and Articles of

Incorporation gives a private company authority to com-

Association, various incorporation forms are prepared

mence business and exercise borrowing powers. In the

and signed by the relevant persons. They include the

case of a public company, a Certificate to Commence

following documents.

Business must first be obtained before commencement of business.

A Declaration of Compliance – Normally the services of advocate of the High Court are engaged in the formation

After registration, a company may commence business

of a company and the advocate is required to make a

after obtaining licence to do business from the local

declaration that the company has complied with the

authority (councils) of the areas in which the company is

requirements of the Companies Act. The declaration is

operating. The licence takes the form of single business

made in Form 208.

permit and is given on payment of the requisite fees.

A Statement of Nominal Capital – This is required for

Companies are required to make annual returns to the

purposes of determining the stamp duty payable on the

Registrar that include its financial statements. There are

nominal share capital and is charged at 1% of the autho-

also annual returns to be made of the members and

rised share capital. The collection of stamp duty, which

directors of the company that show the names,

used to be administered by the Lands Ministry, is now the

addresses, shareholdings as well remuneration received

responsibility of the Kenya Revenue Authority.

in form of fees by the directors. Failure to submit the annual return constitutes a ground for striking off a com-

Directors and Company Secretary List – The company

pany. In the past, this requirement has not been strictly

to be registered should also provide the list of persons

enforced but lately there has been a move to do so.

who have consented to be directors and the secretary of

Recently, the Registrar issued a notice threatening to

the company, giving details such as names, addresses

strike off companies that have not complied with the

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

requirement to file annual returns.

rates. Non-resident rates are generally higher than the resident rates.

The formation of a company is a relatively straightforward procedure, provided all the necessary documenta-

There is a general transfer pricing provision in the law

tion is correctly filed. Delays may be experienced in the

according to which the Commissioner has powers to

registration process due to the poor state of the Registry,

revise the taxable income of a local entity if it can be

which is currently not computerised.

shown that arrangements between the local entity and its foreign parent company or related party are such that

TRANSFER OF CAPITAL AND PROFITS

the local entity receives no profits or less than ordinary profits. Furthermore, thin capitalisation provisions restrict the

Given the Exchange Controls Act was repealed in 1995,

amount of interest deductible for tax purposes.

there are no restrictions placed on the repatriation of

applies where a company is in the control of a non-resi-

capital and profits. The Foreign Investment Protection

dent person (alone or together with four or fewer other

Act provides for unrestricted repatriation of capital and

persons) and the highest amount of all loans (including

profits in the form of dividends and interest after pay-

bank overdrafts and other liabilities on which interest is

ment of relevant taxes.

charged) exceed three times the share capital and posi-

This

tive revenue reserves. Depending on the nature of the capital or profit distribution, the Income Tax Act imposes certain taxes on the transfer of profits and capital.

IMPORT AND EXPORT RULES AND REGULATIONS

The corporation tax rate for non-resident companies (operating as a branch) is higher at 37.5% compared to

In the Kenya Customs and Excise Act Cap 472 of the

30% for resident companies, thereby reducing profit

Laws of Kenya “import” is defined as to bring or cause to

available for transfer. However, a resident company wis-

be brought into Kenya from a foreign country. “Export”

hing to distribute profits to a foreign parent in the form

means to take or cause to be taken out of Kenya. The

of dividends is subject to a withholding tax of 10%. The

import–export rules and regulations are formulated from

effective tax rate is therefore 37%, which is marginally

the provisions provided under the Act. Subsidiary legisla-

less than the corporate tax payable by a branch.

tion in the form of a legal notice made under the Act also

branch or permanent establishment of a non-resident

contributes to the applicable rules and regulations.

company is taxed on its Kenyan profits with no deduction granted in respect of royalties, interest, management and

Generally, import–export rules and regulations constitute

professional fees paid to its parent company, or foreign

those action areas that have to be followed when goods

exchange losses attributable to net assets or liabilities

are brought into Kenya from a foreign country or taken

between the permanent establishment and its parent

out of Kenya to a foreign country. The rules are clearly

company. In addition, costs incurred outside Kenya by a

spelt out and should be followed to ensure that the stan-

non-resident, including head office overheads, are not

ding provisions provided under the Act are not contra-

allowed unless it can be demonstrated that adequate

vened in any way.

consideration was received. Entry of goods is a key requirement under the Act. Payments made in respect of management and profes-

Goods are deemed to have been entered for

sional fees, dividends, interest and royalties attract with-

export–import when the entry under Form C.63 is pre-

holding tax at the applicable resident or non-resident

pared and signed by the owner and /or agent in the pres-

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

cribed manner. The customs entry (C.63) should also be

locally for a fee, which in the case of motor vehicles is

examined and approved by a customs officer to facilitate

20% of the assessed invoice value and 10% for all the

removal of the goods from customs control. The customs

other goods.

entry is a statutory declaration on exports and imports and assists both the trader and the Customs in determi-

Imported goods shall be entered within 21 days of the

ning the total taxes payable or determining the amount

commencement of the discharge from the importing

of customs security that may be required to ensure

vessel.

release of goods.

period shall be deposited in the customs warehouse and

At importation, goods can be entered for temporary use

rent would begin to accrue. The rent is however payable

(provisional entry), home use and warehousing. Customs

before delivery of goods from the customs warehouse.

Any goods that remain un-entered after that

entry forms (C.63) for temporary use and home use should be presented in quadruplicate and in quintupli-

Whereas import licensing was abolished in 1994, certain

cate when entered for warehousing elsewhere than at

products are either restricted or prohibited on importa-

the port of importation.

tion. Some of the prohibited imports include counterfeit currency notes, indecent or obscene prints (porno-

Duty shall be paid at the rate in force at the time when

graphy), paintings or books, used tyres, lethal weapons,

the goods liable to the duty are entered. Duty is charged

waste and sludge deposits and matches in the manufac-

on a specific or ad valorem rate depending on the tariff

ture of which phosphorous has been employed. The pro-

index used.

hibited imports are deemed to be harmful to both fauna and flora and also pose serious security threats.

Imported goods are subject to pre-shipment inspection by an agent appointed by the agent. Pre-shipment ins-

Restricted imports are those whose importation requires

pection is the examination of imported goods prior to

prior approval from a government department. Besides,

shipment in order to ascertain the description, quality,

the importation of those products is not encouraged.

quantity and value of the goods.

All goods with an

Some of the restricted imports include tear gas, franking

invoice value exceeding KSH5,000 are subject to pre-

machines, sound silencers and traps capable of killing any

shipment inspection. However, some goods are exempt

game animal.

from pre-shipment inspection, which includes among others:

On exportation, cargo loaded in vessel (for export) shall be entered in octuplicate under Form C.63. Exportation

• Motor vehicles which are duty free

of firearms and ammunition of all types is prohibited.

• Goods which are duty free under the Act

Exportation of articles having the appearance of lethal

• Goods destined to approved duty free shops and TREO

weapons exported by post is also prohibited. Restricted

operators

exports include all goods the exportation of which is

• Aircraft and aircraft parts

regulated under the Customs Act or of any law for the

• Electric current

time being in force in Kenya. Warehoused goods, goods

• Live animals

under drawback, goods for transhipment shall not be

• Currency notes, coins, travellers’ cheques and bullion

exported in vessels of less than 250 tons register.

• Parcel post excluding goods not imported for trade

Medicaments (including veterinary medicaments) not

• Gifts and supplies imported by accredited diplomatic

manufactured in Kenya and motor vehicle components,

and consular missions and United Nations’ missions for

parts and accessories not manufactured in Kenya are

their own use.

exported only after the written consent of the Permanent Secretary to the Treasury or the Financial Secretary has

Where goods subject to pre-shipment inspection are

been obtained.

imported before inspection, the goods are inspected

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK statistical code, product description, and the specific

CUSTOMS DUTIES

rates of duty as well as units of quantity.

The Act defines “duty” as including excise duty, import

EXCISE DUTY

duty, export duty, levy, cess, imposition, tax or surtax The Customs and Excise Act Chapter 472 Laws of Kenya

imposed on goods and services.

defines “excise duty” as a duty imposed on goods manuDuties are levied according to the tariff code of the pro-

factured in Kenya or imported into Kenya and specified in

duct. They can be charged as specific (specific standard

the Fifth Schedule. The Fifth Schedule lists all the goods

quantities) or as ad valorem (in terms of rates).

subject to excise duty with their respective tariff codes as well as the corresponding rates.

IMPORT DUTY According to the Customs and Excise Act, import duty means duty imposed on goods imported into Kenya and

NATURE AND CHARGEABILITY OF EXCISE DUTY

specified in the First Schedule. The First Schedule lists down all goods subject to import duty, their tariff codes,

Excise duty is an indirect tax levied on goods manufac-

Lamu Island is a World Heritage Site

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

tured in Kenya. The duty, though it becomes payable on

other excisable goods, liable to a higher rate of duty

the manufacture of goods, is collected at the time of

(whether specified or ad valorem), then the converted

removal of goods from the excise factory.

excisable goods shall only be liable to a duty at a rate equal to the difference between the higher rate of duty

GOODS ON WHICH EXCISE TAX IS LEVIED

and the duty originally paid thereon. The Act provides for arrangements for bilateral relief

Cigarettes, beer and spirits, mobile air-time, mineral

from duty between the Kenyan government and another

water and drinking juices including cordials, casino and

government with a view to mutual relief from duty. It is

gambling services, motor vehicles, soft drinks, petroleum

on this basis that the Kenyan government grants duty

products, perfumes, disinfectants and precious metals

concession to goods originating from COMESA and EAC

and jewellery.

member states.

EXPORT DUTY

Section 118 also allows the Minister to carry out such retaliatory imposition of duties, as he or she may deem

Though the act does not specifically define what export

necessary to protect Kenya’s interest, where the country

duty is, it defines “export” as to take or cause to be

of exportation practises unfair or restrictive trade prac-

taken out of Kenya. Export duty is therefore the sur-

tices such as dumping and subsidisation of goods.

charge levied on exports. Export duty is covered under the Fourth Schedule of the Customs and Excise Act.

The Act also allows the Minister to vary the rates of duty, but inhibits the Minister from increasing or decreasing

Generally, taxes are not charged on exports, but exports

rates by more than 100% of the prescribed rates for spe-

duties are charged on a few products to discourage their

cified goods such as maize, wheat, sugar, milk, rice or

exportation. These products are:

used clothing, unless during periods of civil strife, national disaster or calamity.

• Hides and skins of animals, whether processed or raw • Waste and scrap of iron or steel.

LABOUR PROVISIONS

The exportation of the above is discouraged so as to pro-

Legislation pertaining to labour and labour relations in

vide raw materials for the local industry, allow for value

Kenya is documented in various acts, which are updated

adding locally so as to export finished products which

as and when the need arises.

earn more revenue than raw materials, as well as to

Employment Act, Regulation of Wages and Employment

create employment locally.

Act, Trade Union Act, Trade Disputes Act and the

They include the

Factories and Other Places of Work Act. There is also an

THE SCHEDULES

Industrial Relations Charter, which is a tripartite pact among government, employers and a trade-union

1 First Schedule – Import Duties

umbrella organisation, which is voluntary.

2 Second Schedule –Suspended Duties, but these duties

collective bargaining are laid out in the Regulation of

were phased out in the 2004/2005 Finance Act

Wages and Employment Act (Cap 229).

Rules on

3 Fourth Schedule – Export Duties 4 Fifth Schedule – Excise Duties.

WORKING HOURS

The Act prevents double payment of excise duty on

The normal working week in Kenya is 40 hours and any-

goods and services by specifying that where excisable

thing beyond that is considered overtime and qualifies

goods on which duty has been paid are converted into

for overtime pay. The law governs overtime rates and the

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

requirement is to pay one and a half times the hourly wage rate during the working week and twice the hourly

TERMINATION OF EMPLOYMENT

rate on weekends and public holidays. The Employment Act of 1976 (Cap 226) governs job ter-

PUBLIC HOLIDAYS AND LEAVE

mination. Employees are protected against arbitrary dismissal without capacity or conduct related justification.

There are 11 official public holidays a year, and 21 days

The Employment Act stipulates the instances in which

of paid annual leave on completion of 12 consecutive

summary termination may occur on grounds of gross

months of employment. Employees are entitled to at

misconduct.

least one rest day a week. Maternity leave is two months year.

EMPLOYMENT OF FOREIGNERS

TRADE AND LABOUR UNIONS

For non-Kenyans to work in Kenya they are required to

paid, but if taken, annual leave must be forfeited for that

obtain a work permit from the Ministry of Immigration. The trade union umbrella body in Kenya is the Central

For the government to issue permits, it needs to establish

Organisation of Trade Unions, which oversees the activi-

that there is no suitable Kenyan to take up that role. In

ties of the different sectoral unions. Trade unions enter

professions such as auditing, foreigners are required to

into collective bargaining agreements (CBAs) either with

pass local examinations before they can practise.

the industry or with employers to agree on terms and conditions of their members.

In most instances the

industry level agreements enable employers to present a

ACCESS TO LAND IN KENYA

united front in devising an industry wage structure. CBAs usually last for two years. The labour movement is

Land is used to mean the soil, the subsoil, any subterra-

not very strong in Kenya, which could be attributed to

nean deposits beneath it, any body of water wholly con-

the emergence of several unions, thus weakening their

tained within or beneath any land, and the airspace

joint bargaining power.

immediately above it.

WAGES AND BENEFITS

According to the constitution, all land in Kenya belongs to the people of Kenya collectively as communities and as

Minimum wages are set either by a collective agreement,

individuals: “Land, being Kenya’s primary resource and

where in force, or by industry councils established to pro-

the basis of livelihood for the people, should be held,

tect the rights of their members. The minimum wage is

used and managed in a manner which is equitable, effi-

KSH,335 per month, and this tends to be reviewed

cient, productive and sustainable.”

annually during the Labour Day celebrations. Constitutionally, land should not be disposed of or otherMost organisations are phasing out fringe benefits,

wise used except in terms of legislation specifying the

which now attract taxes of at least 35%. The general

nature and extent of the rights in respect to the land in

trend is for organisations to provide medical cover and

question.

voluntary pension schemes in addition to the mandatory payment to the National Social Security Fund and

BACKGROUND

National Hospital Insurance Fund. Little about the functional layout and spatial distribution of Nairobi’s population changed with the coming of independence in 1963. The influx of Africans into the city

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

was so great that the existing services and job opportuni-

Colonialism brought with it a different system and a

ties were overwhelmed and survival in the city became a

power structure vested mainly in the state, not social

real struggle. This whole situation intensified the already

structures, and a system of government that mainly ruled

existing conflict and competition for existing services. In

people without consulting with them. No consideration

addition, land redistribution in rural and urban areas was

was given to people’s established systems and where

never dealt with, although areas that were initially out-

these interfered with the interests of the colonial govern-

side the city were brought within the jurisdiction of the

ment, they were destroyed and replaced with others.

city, but these informal settlements remained illegal in spite of being part of the city. Thus hardly any real ser-

A significant change from colonisation was urbanisation,

vices were provided on grounds that the land was illegal.

which until then had been mainly limited to costal areas.

This system of access to land and services was unjust

This new trend of urbanisation was mainly dictated by

since there was no framework for participation of those

labour relations, where the majority of the people came

being ruled. Participation of all would have assured iden-

to towns to work and were in town as temporary

tification of socio-political demands from all parts of

migrants. The housing provided then was for transient

society. As indicated, this situation persisted after inde-

migrants, and services were for employees and not their

pendence and those who took over power marginalised

families. African villages, where the majority of Africans

the poor. The politics of post-independence Kenya maxi-

lived, were established, and these were both illegal and

mised the power of bureaucracy and, further, the post-

lacked basic services. At the time of independence, large

independence politics depoliticised society.

African populations lived in areas without services.

The attendant political process was not participatory, for the single party politics tended to be dictatorial. This pro-

Movement to urban areas was pegged to employment

cess was reinforced by inherited colonial structures,

and those who did not have employment were not

which reinforced the class structure with the ruling elite

allowed to live in urban areas. All these contradictions

imposing their power on majority of the urban dwellers.

created a lot of conflicts in both land and services. The

This non-democratic behaviour of a single party state is

people living in unregulated areas had no legal status and

not just a Kenyan problem. The fist of colonial power

the government assumed no responsibility to provide ser-

that was the local state was tightened and strengthened.

vices in these settlements. Residents of these areas could

The more it centralised coercive authority in the name of

also not do much for themselves because they were only

development or revolution, the more it reinforced and

supposed to construct temporary structures. This discou-

deepened the gap between town and country and also

raged any meaningful development and left residents

between the “haves” and “have nots”. This seemed to

with a mindset that they do not belong to the city

be the case in Kenya where classes have been created

although some did not have land in the rural areas either.

which determine the level of access to competitive resources like land and public services. The “haves” had

After independence, restrictions on movement to urban

to access land in the urban areas while the “have nots”

areas were removed although very few services were pro-

could only squat on public land, especially in Nairobi.

vided for the newcomers. Instead of providing more ser-

This created a structure which justified provision of ser-

vices, the government concentrated on improving the

vices for the “haves”, a situation worsened by the high

existing units while the population continued to increase.

level of poverty among these “have nots” who could not

No supportive action was taken on unregulated land and

even access whatever available land or services.

these settlements continued to be demolished – a factor that further reinforced their temporary nature and gene-

LAND CONFLICTS

rated more conflict. Thus rapid urbanisation intensified conflict and competition for resources in urban areas.

Although conflicts existed before colonialism, an established mechanism of dealing with them was in place.

In Nairobi 55% of the residents live in informal settle-

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

ments and these occupy 5.98% of total residential land

difficulties and added costs associated with obtaining and

(Matrix Development Consultants, 1993). These settle-

maintaining rights of way and access for infrastructure,

ments are growing faster than the rest of the city crea-

which have to be provided post-hoc to unplanned settle-

ting serious problems of access to services. Access to land

ments. Road reserves have been encroached upon and

is closely related to provision of services because most

recently Kenyans have witnessed the destruction of houses

actors are unwilling to invest in services in informal set-

built on road reserves.

tlements because of insecure land tenure. The temporal nature of these settlements causes fear among residents

For the rural areas, the result has been individual, com-

and other outside actors to invest.

Thus even where

munal and ethnic conflicts, which have adversely affected

other actors would be willing to invest they are put off by

productivity levels leading to low, if any, economic deve-

the possibility of their developments being destroyed.

lopment.

This is particularly true of Nairobi where these settlements are located on prime land.

In August 2000, scores were injured in violent clashes in Nairobi city, between Muslim youths and hawkers at the

ISSUES AFFECTING ACCESS TO LAND IN KENYA

â&#x20AC;&#x153;Fuata Nyayoâ&#x20AC;? slums. A number of churches, an entertainment park and a mosque were also burnt in the violence. The clashes started when Muslim leaders in the

Kenya relied heavily on land laws and policies established

local mosque, who had acquired title to the disputed land

under the British colonial government, which in many

for expansion, ordered the hawkers to move or risk being

cases prevented the most disadvantaged groups from

evicted.

getting the land they needed to survive. There also is increasing concern in Kenya over lack of clear planning

Land problems in Kenya have also, since 1992, taken an

policies that would fit rural urban migrants into real

ugly ethnic turn, in which at least 5,000 people have been

estate, most of them perched up in crowded shanty dwe-

killed, property worth billions of Kenyan shillings destroyed

llings on government land. The land reforms that began

and thousands displaced from their homes.

in the year 2000 were an attempt to reverse this and ensure equitable access to land for all Kenyans.

Corruption of government officials has made the proper acquisition of land a trying, difficult and expensive process.

Over 80% of Kenyaâ&#x20AC;&#x2122;s landmass belongs to the Arid or

In the recent past, land has been given as grants to poli-

Semi-Arid Lands (ASAL). This leaves only 20% of the

tical elites not for the purposes of economic development

landmass as arable land, which 33 million Kenyans

and the nurturing of indigenous capital but principally for

struggle to share. That is the beginning of the challenge

the purpose of maintaining patronage relations and of

for sound land management practice.

securing political loyalty. Most beneficiaries do not use the land but turn their grants over to private developers.

Agriculture is the primary occupation and source of subsistence for up to 75% of Kenyans. Land has, therefore,

Security of tenure is another issue that has made access to

become the most sought after commodity, exposing it to

land in Kenya difficult. Different forms of land tenure with

speculation, which has pushed the price of land beyond

corresponding property rights such as private or public

ordinary people.

ownership, leasehold and common, communal, religious

In most parts of Kenya, customary land systems still pre-

or customary land tenure system exist.

vail and are considered to be an obstacle to the profitable use of the land, as customary land rights are related to

With rapid urbanisation and commercialisation, customary

social rather than commercial value.

tenure concepts have proved unable to meet the needs of people with low incomes, limited savings or without colla-

Unplanned land development in Kenya has also created

teral. Urban areas generally embody a wider range of

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

tenure options, thus making the land issue more politically

INVESTMENT DIRECTORY

contentious than in rural areas. Significant sections of the population in Kenya lack secucing diversified investment development or improvement.

African Project Development Facility of the World Bank

In squatter settlements, frequent harassment and evictions

International House, 6th floor, Mama Ngina Street

often accompany this lack of security. In urban areas,

P.O. Box 46534, 00100 Nairobi

these trends stultify residents’ investments in housing. The

Tel: +254-20-217370

population’s limited access to land has a negative impact

Fax: +254-20-219147

rity of land tenure, which denies them collateral for finan-

on the development and expansion potential of microenterprises, particularly where there are strict zoning regu-

Capital Markets Authority

lations.

Reinsurance Plaza, 6th floor, Taifa Road P.O. Box 74800, 00200 Nairobi

In urban areas the prices of land are astronomically high

Tel: +254-20-218886

and have resulted in increased difficulties for the urban

Fax: +254-20-228254

poor. Evictions now target land that was of little value pre-

Central Bank of Kenya

viously.

Central Bank Building, Haile Selassie Avenue In general both rural and urban land management needs

P.O. Box 60000, 00200 Nairobi

good policy on tenure, which would play a crucial role in

Tel: +254-20-226431

the supply of and demand for land. Responsibility for for-

Fax: +254-20-340192

mulating and enforcing rules of tenure and use of land

Central Bureau of Statistics

rests ultimately with the government.

Herufi House In conclusion, the acquisition of land in Kenya is difficult

P.O. Box 30266, 00100 Nairobi

for the following reasons:

Tel: +254-20-333970/6 Fax: +254-20-333030

• Land in urban areas is highly priced, and there is high demand of those pieces of land that are strategically

Coffee Board of Kenya

placed to natural resources and other services.

Coffee Plaza, 10th floor, Haile Selassie Avenue

• The history of land ownership in Kenya has made the

P.O. Box 30566, 00100 Nairobi

poor disadvantaged as the most arable land was owned by

Tel: +254-20-342358

white settlers, and soon after independence the educated

Fax: +254-20-311079

and well to do Kenyans followed suit, leaving the poor in the same position. This hasn’t changed much to date.

Communications Commission of Kenya

• “Land grabbing” occurs, which is when land intended

Waiyaki Way, Westlands

for research and/or public use was annexed and sold or

P.O. Box 14448, 00800 Nairobi

handed out to individuals by the state leadership as part of

Tel: +254-20-4242000

the political patronage of the last regime. This has made

Fax: +254-20-445-1866

land acquisition political and therefore difficult.

Deloitte Consulting Limited Land distribution in Kenya is inequitable and its access is

Kirungii, Ring Road, Westlands

much easier for the wealthy and politically connected.

P.O. Box 40092, 00100 Nairobi Tel: +254-20-4441344

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

Fax: +254-20-4448966

Jomo Kenyatta International Airport P.O. Box 42601, 00100 Nairobi

Export Processing Zones Authority

Tel: +254-20-827260

Athi River EPZ, Viwanda Road, off Nairobi/Namanga

Fax: +254-20-827264

Highway Tel: +254-45-26421/6

Industrial and Commercial Development Corporation

Fax: +254-45-26427

Uchumi House, Aga Khan Walk

P.O. Box 50563, 00200 Nairobi

P.O. Box 45519, 00100 Nairobi

Export Promotion Council

Tel: +254-20-229213

Anniversary Towers, University Way

Fax: +254-20-317456

P.O. Box 40274, 00100 Nairobi Tel: +254-20-228534

Industrial Development Bank

Fax: +254-20-218013

Bima House, Harambee Avenue P.O. Box 44036, 00100 Nairobi

Horticultural Crops Development Authority

Tel: +254-20-337079/69/221377 Fax: +254-20-217918 View over the Rift Valley

INVESTMENT & LEGAL FRAMEWORK

eBizguides Kenya

Investment Promotion Centre

Kenya Anti Corruption Authority

National Bank Building, 8th floor, Harambee Avenue

Integrity Centre, Milimani/Valley Road

P.O. Box 55704, 00100 Naiorbi

P.O. Box 61130, 00200 Nairobi

Tel: +254-20-221401

Tel: +254-20-2719555

Fax: +254-20-243862

Fax: +254-20-2717805

Kenya Agricultural Research Institute

Kenya Association of Manufacturers

Kaptagat Road

Peponi Road, Westlands

P.O. Box 57811, 00200 Nairobi

P.O. Box 30225, 00100 Nairobi

Tel: +254-20-583720

Tel: +254-20-746021

Fax: +254-20-583344

Fax: +254-20-746028

Kenya Airports Authority

Kenya Broadcasting Corporation

Jomo Kenyayta International Airport

Broadcasting House, Harry Thuku Road

P.O. Box 19001, 00501 Nairobi

P.O. Box 30456, 00100 Nairobi

Tel: +254-20-825400

Tel: +254-20-318823

Fax: +254-20-822078

Fax: +254-20-229658 Entrance to Athi River Export Processing Zone

eBizguides Kenya

INVESTMENT & LEGAL FRAMEWORK

Kenya Bureau of Standards

P.O. Box 43706, 00100 Nairobi

Bellevue Area, Off Mombasa Road

Tel: +254-20-607714

P.O. Box 54974, 00200 Nairobi

Fax: +254-20-607268

Tel: +254-20-602350 Fax: +254-20-609660

Kenya National Chamber of Commerce and Industry

Kenya Civil Aviation Authority

Ufansi House, Haile Selassie Avenue

Jomo Kenyatta International Airport

P.O. Box 47024, 00100 Nairobi

P.O. Box 30163, 00100 Nairobi

Tel: +254-20-220867, 334413

Tel: +254-20-824557

Fax: +254-20-318367, 334293

Fax: +254-20-824716

Kenya Orchards Ltd Kenya Coffee Growers Association

Kitui Road, off Kampala Road

Wakulima House, 4th floor, Haile Selassie Avenue

P.O. Box 45065, 00100 Nairobi

P.O. Box 44781, 00100 Nairobi

Tel: +254-20-553765

Tel: +254-20-311234

Fax: +254-20-543323

Fax: +254-20-251894

Kenya Ports Authority Kenya Dairy Board

Port of Mombasa, Kipevu

NSSF Building, 10th floor, Bishops Road

P.O. Box 59009, GPO Mombasa

P.O. Box 30406, 00100 Nairobi

Tel: +254-41-312211/221211

Tel: +254-20-310559

Fax: +254-41-311867

Fax: +254-20-244064

Kenya Railways Corporation Kenya Flower Council

Haile Selassie Avenue

Gitanga Road

P.O. Box 30121, 00200 Nairobi

P.O. Box 56325, 00200 Nairobi

Tel: +254-20-221211

Tel: +254-20-560612

Fax: +254-20-340049

Fax: +254-20-576597

Kenya Revenue Authority Kenya Industrial Property Office

Times Towers, Haile Selassie Avenue

Weights and Measures Building

P.O. Box 48240, 00100 Nairobi

P.O. Box 51648, 00100 Nairobi

Tel: +254-20-310900/315553

Tel: +254-20-602210

Fax: +254-20-316872

Fax: +254-20-606312

Kenya Roads Board Kenya Industrial Research and Development Institute

Kenya Re Towers, off Ragati Road

Lusaka Road/Dunga Road, Industrial Area

Tel: +254-20-2722865

P.O. Box 30650, 00100 Nairobi

Fax: +254-20-2723161

P.O. Box 73718, 00200 Nairobi

Tel: +254-20-535966 Fax: +254-20-540166

Kenya Sisal Board Old Mutual Building, 2nd floor, Kimathi Street

Kenya Institute of Management

P.O. Box 41179, 00100 Nairobi

Management Centre, Kapiti Road, off Mombasa Road

Tel: +254-20-223457

INVESTMENT & LEGAL FRAMEWORK Fax: +254-20-240091

eBizguides Kenya

National Social Security Fund NSSF Building, Bishops Road

Kenya Sugar Board

P.O. Box 30599, 00100 Nairobi

Sukari Plaza, Upper Kabete, off Waiyaki Way

Tel: +254-20-2729911/2710552

P.O. Box 51500, 00200 Nairobi

Fax: +254-20-2710957

Tel: +254-20-631880 Fax: +254-20-630853

National Water Conservation and Pipeline Corporation

Kenya Tea Development Agency

Commercial Street/Workshop Road, Industrial Area

Chai House, Koinanage Street

P.O. Box 30173, 00100 Nairobi

P.O. Box 30213, 00100 Nairobi

Tel: +254-20-531044/6/556600/5

Tel: +254-20-221441/4

Fax: +254-20-531049

Fax: +254-20-211240

Postal Corporation of Kenya Kenya Tourist Board

Kenyatta Avenue

Kenya Re Towers, 7th floor, off Ragati Road

P.O. Box 34567, 00100 Nairobi

P.O. Box 30630, 00100 Nairobu

Tel: +254-20-243434

Tel: +254-20-2711262

Fax: +254-20-246156

Fax: +254-20-2719925

PricewaterhouseCoopers Kenya Tourist Development Corporation

Rahimtulla Towers, 7th floor, Upper Hill Road

Utalii House, 11th floor, Uhuru Highway

Tel: +254-20-2855000

P.O. Box 42013, 00100 Nairobi

Fax: +254-20-2855001

P.O. Box 43963, 00100 Nairobi

Tel: +254-20-229751 Fax: +254-20-227815

Kenya Wildlife Service Nairobi National Park, Langata Road P.O. Box 42076, 00100 Nairobi Tel: +254-20-600800 Fax: +254-20-603792

National Hospital Insurance Fund NSSF Building, Eastern Block, Bishops Road P.O. Box 30442, 00200 Nairobi Tel: +254-20-2723255 Fax: +254-20-2714806

National Housing Corporation NHC House, Aga Khan Walk P.O. Box 30257, 00100 Nairobi Tel: +254-20-331205 Fax: +254-20-311318

K E N Y A N

E C O N O M Y

“What is today’s, do today” Kenyan proverb

K E N YA N E C O N O M Y

eBizguides Kenya rency of government procurements and reduce the govern-

OVERVIEW

ment payroll. In July 2000, the IMF signed a US$150 million Poverty Reduction and Growth Facility (PRGF), and the

In July 1997, the government of Kenya refused to meet

World Bank followed suit shortly after with a US$157 million

commitments made earlier to the IMF on governance

Economic and Public Sector Reform credit. The Anti-

reforms. As a result, the IMF suspended lending for three

Corruption Authority was declared unconstitutional in

years, and the World Bank also put a $90-million structural

December 2000, and other parts of the reform effort fal-

adjustment credit on hold. Although many economic

tered in 2001. The IMF and World Bank again suspended

reforms put in place in 1993â&#x20AC;&#x201C;94 remained, Kenya needed

their programmes. Various efforts to restart the programme

further reforms, particularly in governance, in order to

in mid-2002 were unsuccessful.

increase GDP growth and combat the poverty that afflicts more than 57% of its population.

Under the leadership of President Kibaki, who took over at the end of December 2002, the government of Kenya

The government of Kenya took some positive steps on

began an ambitious economic reform programme, and

reform, including establishing the Kenyan Anti-Corruption

resumed its cooperation with the World Bank and the IMF.

Authority in 1999, and measures to improve the transpa-

The new National Rainbow Coalition (NARC) government

A lot of companies are relocating to the Upper Hill area in Nairobi

eBizguides Kenya

K E N YA N E C O N O M Y

enacted the Anti-Corruption and Economic Crimes Act and

trained personnel. A wide range of foreign firms maintain a

Public Officers Ethics Act in May 2003 aimed at fighting

regional branch or representative office in the city. In March

graft in public offices. Other reforms, especially in the judi-

1996, the presidents of Kenya, Tanzania and Uganda re-

ciary and public procurement, have led to the unlocking of

established the East African Cooperation (EAC). The EAC’s

donor aid and a renewed hope at economic revival. In

objectives include harmonising tariffs and customs regimes,

November 2003, following the adoption of key anti-corrup-

improving regional infrastructures, and the free movement

tion laws and other reforms by the new government, donors

of people. In March 2004, these three East African countries

re-engaged as the IMF approved a three-year $250 million

signed a Customs Union Agreement.

Poverty Reduction and Growth Facility and donors com-

boost to investor confidence.

ECONOMIC GROWTH AND REFORM STRATEGY

However, the government’s ability to stimulate economic

Kenya’s political stability and improvement in governance

demand through fiscal and monetary policy remains fairly

remain crucial to future macroeconomic stability. It is thus

limited, while the pace at which the government is pursuing

imperative that the referendum, scheduled for late in 2005,

reforms in other key areas remains slow. The Privatization

resolves the constitutional impasse.

mitted US$4.2 billion in support over four years. The renewal of donor involvement has provided a much-needed

Bill is yet to be enacted and civil service reform has been limited despite the government’s assertion that reforms

The outlook for economic growth in the next few years has

would be undertaken. The main challenges include building

improved as the new government has managed to restore

consensus within the loosely bound NARC government,

crucial budgetary assistance from multilateral creditors as

taking candid action on corruption, enacting anti-terrorism

well as secure debt rescheduling by bilateral creditors. The

and money laundering laws, bridging budget deficits, reha-

achievement of objectives according to the Poverty

bilitating and building infrastructure, maintaining sound

Reduction and Growth Facility (PRGF) of the IMF will secure

macroeconomic policies, and addressing structural reforms

some debt relief, a measure that will go a long way in easing

needed to reverse slow economic growth.

Kenya’s external debt constraint. Domestic demand will remain buoyant during 2005, boosted by increasing

Kenya’s key economic challenge in the next few years is to

domestic investment as well as higher government spending

increase its real GDP growth rate. High and sustained eco-

on infrastructure development, education and health.

nomic growth is essential if Kenya is to address its high

Activity in the agricultural sector will benefit from favourable

unemployment rate and widespread poverty. Achieving

global commodity markets, while the manufacturing and

high growth will, however, depend on improved economic

services sectors should build on their 2004 performance.

governance. In May 2003, the government enacted two

Rising exports to the US under the African Growth and

anti-corruption laws, and the new government’s commit-

Opportunity Act (AGOA) will continue to support textile

ment to fight corruption has improved the country’s image

manufacturers.

with investors and donors. In June 2003, the government published the Economic Recovery Strategy for Wealth and

However, diversification of exports is necessary to maintain

Employment Creation 2003–2007. The Strategy is centred

momentum in the coming years. Rising outputs of tea,

around strengthening institutions of governance, rehabilita-

coffee and horticultural goods will boost exports – Kenya is

ting and expanding physical infrastructure and increased

now the largest supplier of cut flowers to the European

investment in human capital with a special focus on the

Union. The increase in imports of machinery and transport

poor.

equipment – mainly industrial machinery – indicates inves-

Nairobi continues to be the primary communication and

tment in production capacity. This will contribute to a pick

financial hub of East Africa. It enjoys the region’s best trans-

up in growth in the coming years. Imports of telecommuni-

portation linkages, communications infrastructure, and

cations equipment has also increased strongly, reflecting

K E N YA N E C O N O M Y

eBizguides Kenya

strong growth in that sector, particularly the mobile phone sector. The good performance in the tourism sector will also

GDP

spill over into 2005, with expected growth in tourist numbers from countries such as China, stimulated by an aggres-

Economic growth picked up during 2004 but was lower

sive marketing campaign. Recent reports indicate that tou-

than expected. Real GDP was up by 2.4% during the first

rism earnings rose by 66% to more than KSH42 billion in

ten months of the year; however, this was less than the anti-

2004 as arrivals increased by 28%. The outlook for eco-

cipated growth rate. The Central Bank of Kenya (CBK) attri-

nomic growth has improved over the past year, supported

buted the slower than anticipated growth rate to the

by the resumption of foreign budgetary assistance as well as

drought experienced between May and September 2004,

the relatively stable macroeconomic environment characte-

high global oil prices and the slower than anticipated disbur-

rised by falling inflation and a stable exchange rate. Key

sement of balance of payments support by both multilateral

short-term interest rates are likely to trend downwards this

and bilateral donors. Output growth in the agricultural

year as inflation and government borrowing eases.

sector was up 2.4% over the first ten months of 2004, with outputs of tea up 10.6%, horticulture up 19.6% and sugar up 9.5%. However, coffee deliveries were down by 20.3%. Manufacturing activity rose by 1.8% on the back of higher

Bata Shoes employs more than 900 Kenyans

eBizguides Kenya

K E N YA N E C O N O M Y

output of processed sugar (up 16.9%) and cement (up 3.4%), while growth in the transport and communication sector was up by 3.9%. During 2005, we expect the improvement in the macroeconomic environment, characterised by declining inflation, low interest rates and a relatively stable exchange rate, to support growth. Rising private sector credit extension will boost economic activity further, while more conducive weather conditions and firmer global commodity prices will add further impetus. government spending, mainly higher social spending and rehabilitation of infrastructure, will rise following the disbursement of foreign budgetary assistance. We thus forecast real GDP growth to rise to 3.1% in 2005 from a projected 2.5% in 2004. (Source: Stanbic Bank and CBK)

excludes food and energy prices and is the CBK’s monetary policy variable – increased to only 3.5% from 2.7%. The

CONSUMER INFLATION & COST OF LIVING

outlook for inflation remains dependent on developments in food prices – due to food’s large weight in the CPI index (50.5%). Improved rainfall will dampen food inflation, while exchange rate stability will contribute to lower inflation. The

The overall inflation rate edged up marginally, averaging

risk will be posed by high global prices, which have exerted

11.6% in 2004 from 9.8% in 2003, mainly on the back of

upward pressure on domestic energy prices. (Source:

higher non-food inflation. Adverse weather conditions from

Stanbic Bank, CBK)

May to September impacted negatively on food supplies, with the food inflation rate averaging 15.8% in 2004 from 15.3% the previous year.

EDUCATION AND EMPLOYMENT

Non-food inflation jumped to 10.4% in December 2004

The education sector experienced the

compared with 2.6% at the end of 2003. The new Public

most dramatic change in 2003. The

Sector Vehicle regulations resulted in a sharp increase in

government made primary school edu-

public transport fares early in the year, and this combined

cation absolutely free. This was to

with higher fuel prices pushed transport and communication

fulfil some of the NARC pledges and promises to

inflation higher, which as a result contributed around 1.2

Kenyans during the political campaigns leading to

percentage points to the overall inflation rate during 2004.

the 2002 general elections. As a result of this policy

However, the average underlying inflation rate – which

action, the total enrolment in primary schools incre-

K E N YA N E C O N O M Y

eBizguides Kenya

BALANCE OF PAYMENTS Kenya’s balance of payments position weakened during the 12 months to September 2004, with the overall surplus declining to US$34.8 million from US$284.1 million in September 2003. A current account deficit was recorded over the period as higher exports were offset by expansion in imports as well as lower service receipts and current transfers. The trade deficit widened to US$1,637 million from US$1,129 million. Export performance benefited from the acceleration in global growth and higher commodity prices, with exports of textiles continuing to benefit from AGOA (the African Growth and Opportunity Act). In 2003, Kenya’s exports to the US reached US$249.2 million from US$188.6 million in 2002. 95% of textile and apparel exports complied with AGOA provisions. In the next few years, textile exports to the US will continue to benefit from the extension of the third-party yarn sources provision to 2007. In the longer term, however, the end of quota restrictions (the global multi-fibre agreement) poses a risk as China is expected to ased by 17.6% in 2003. This will help create and

dominate global trade in textiles. AGOA exports must there-

develop more human capital in Kenya, a prerequi-

fore focus on coffee and other goods in which the country

site for the attainment of sustained economic

has a relatively higher comparative advantage. Rising

growth and development.

domestic demand boosted imports, which expanded by 21.5% for the 12 months to September 2004, with oil

Kenya has a large supply of relatively inexpensive labour,

imports rising by 28.1%. While higher global oil prices

with many workers being employed in the informal sector,

added to the import bill, volumes of imported oil products

which plays a crucial role in absorbing people who are

also increased in line with higher imports of machinery and

unable to get formal employment. One of the most notable

transport equipment (up 24.4%). Imports of chemicals and

of NARC’s election promises was that if they came to power

manufactured goods also picked up during the period.

they would ensure that about 500,000 jobs would be cre-

Tourism receipts increased by 18% over the period, while

ated in the economy in order to alleviate open unemploy-

income transfers fell. However, a sharp fall in current trans-

ment and absorb surplus labour. It seems that the NARC

fers resulted in net service receipts dropping to US$975

government has confounded its critics by doing just as had

million from US$1,191 million. The capital and financial

been promised. This is because in 2003 the informal sector

account balance increased to US$695.6 million from

created some 458,800 jobs constituting 94.3% of all new

US$222.3 million, pushed up mainly by a sharp rise in short-

jobs created outside small-scale agriculture. In addition the

term capital inflows. Lower project grants, net repayment of

modern sector created some 27,900 new jobs. Thus the

government’s foreign debt, net private sector medium and

total number of jobs created by the economy was 486,700

long-term outflows, as well as an increase in commercial

or approximately 0.5 million just as the NARC government

banks’ holdings of foreign exchange, were recorded. Short-

had promised.

term financial inflows surged to US$871.7 million from

eBizguides Kenya

K E N YA N E C O N O M Y

US$81.6 million. Improvements in trade-related and other inflows have thus boosted the level of foreign exchange reserves (US$1,983.43 in October 2004 from US$1. 712.44 in October 2003) and we expect this to continue during 2005. Exports will increase further as global commodity markets remain favourable, while rising imports of capital goods point towards higher exports of manufactured goods. The capital account should recover, boosted by higher foreign aid grants (following the release of foreign aid in December 2004), while net investment flows, albeit of a short-term nature, should remain high, taking advantage of high returns in local markets. The impact of the government’s rising foreign debt will be tempered by debt rescheduling and likely debt forgiveness in the coming years, as macroeconomic and social objectives are met. (Source: Stanbic Bank, CBK)

SOURCE AND DESTINATION FOREIGN TRADE Kenya’s trade regime has been fundamentally liberalised since 1995. The government, in addition to introducing

ding highly successful exports of flower products to

reforms to the exchange rate and external payments

European and Middle Eastern markets. Broadly speaking,

systems, has abolished import licensing (except for a short

Kenya’s merchandise exports can be divided into seven

negative list of goods prohibited for health, security or envi-

groups: coffee, tea, horticulture, oil products, processed

ronmental grounds), reduced the number of tariff bands,

foods and vegetables, manufactured products, and other

reduced the top and average ad valorem tariff rate, and

products. In 1995 and 1996, manufactured products held

removed suspended duties (except on oil products).

the largest share of exports of goods, followed closely by other products, which include soda ash and pyrethrum.

A comprehensive tariff reform strategy, which aims to

Coffee exports, as a share of total visible exports, fell signifi-

improve Kenya’s external competitive position and facilitate

cantly from 15% in 1995 to 8.7% in 2000 and just 3.8 per

duty collection through a simpler and more uniform tariff

cent of total merchandise receipts during from January to

structure, was formulated in mid-2001 and the first phase

August 2002. The decline initially reflected a fall in US dollar

incorporated into the FY 2001 budget. The tariff reform

value terms owing to low world coffee prices and, increa-

aims to cut the top tariff rate incrementally over the next

singly, a decline in export volumes due to successive

four years to 25% and the number of tariff bands had gra-

droughts in 1999 and 2000 and bottlenecks and inefficien-

dually been reduced to four by 2004.

cies in the sclerotic state Coffee Board of Kenya, slated for extensive restructuring in the near future, and coffee coope-

EXPORTS

ratives. Tea’s share in total visible exports has gradually risen, replacing manufactured products as Kenya’s largest source

Kenya has seen significant shifts in the composition of its

of merchandise, and indeed other external receipts.

exports of goods since the mid-1990s, particularly away

Manufacturing exports have recovered markedly since 2001,

from one of its traditional exports, coffee, and towards

thanks to robust textile and apparel exports from Kenya’s

other (non-traditional) products such as horticulture – inclu-

Export Processing Zones (EPZs) to the US.

K E N YA N E C O N O M Y

eBizguides Kenya

ment. In its 2003/2004 budget statement, the government waived import duties on timber and cottonseeds to discourage massive logging and to revive cotton growing. To encourage production of cheaper animal feeds, the VAT on inputs was reduced from 18% to zero. The Kenyan government continues to carefully control imports of seed corn by subjecting hybrid varieties to a certification process that effectively restricts trade. Until a seed variety is fully registered (a process that can take three to four years), the Ministry of Agriculture The African region is the major destination of Kenyan

restricts cereal seed imports by setting quantitative ceilings.

exports, which were at 46.2% in 2003 followed by the

However, once a variety is certified, the quantitative restric-

European Union at 28.5%.

tions are lifted. The standard VAT was reduced from 18% to 16% in June 2003. Discriminatory application of the VAT

IMPORTS

has in the past distorted trading in some commodities, especially sugar and maize.

The composition of Kenya’s merchandise imports has also changed dramatically since 1995. Consumer goods, as a

The Middle East is Kenya’s main source of imports. This is

share of total imports, rose from 12.9% in 1995 to 14.7%

due to the importation of aeroplanes and petroleum pro-

by 1999. Intermediate goods maintained a roughly constant

ducts totalling about KSH2.3 billion in 2003.

share, while imports of capital goods fell over the same period, before rebounding to 32.4% of total imports in 2000 (at the expense of consumer imports) due to the

PRIVATISATION PROCESS

severe drought in that year which, in turn, required large imports of energy-related equipment. The move away from

Private ownership and competition are the hallmarks of a

investment-related (capital) imports toward consumer goods

liberalised market economy, the path that Kenya’s own eco-

in recent years is consistent with sluggish economic growth.

nomy has been steered towards since the 1980s. Reform

Hydrocarbon imports remain a heavy drain on Kenya’s

and liberalisation in Kenya have been characterised by the

foreign exchange resources, accounting for about a quarter

withdrawal of the state from business activity. In Kenya, as

of total merchandise imports in 2000. Imports rose by 9.4%

in many other developing countries, privatisation came to

in 2003 and the major component of imports were petro-

symbolise this withdrawal and the increased participation of

leum products, industrial machinery and transport equip-

the private sector in economic activity. The Minister for

eBizguides Kenya

K E N YA N E C O N O M Y

Finance, while launching the budget public hearings, said

many loss-making companies. Second, privatisation was

that a Public Enterprises Privatization Bill has been intro-

seen as a means for government to raise additional revenue,

duced to the cabinet and once passed by parliament, â&#x20AC;&#x153;a pri-

especially when this involved the participation of a foreign

vatization commission will be put in place to oversee and

strategic investor, as was the case with KLM, the Dutch air-

implement all privatization transactionsâ&#x20AC;?.

line in the Kenya Airways divestiture. Boosting the fiscal

The objectives of privatisation in Kenya can be classified

position therefore has always been, and will continue to be,

under the following three headings: fiscal, ownership and

an explicit goal of privatisation.

efficiency.

OWNERSHIP FISCAL PERFORMANCE As has been known in Kenya, public ownership, especially in Treasury has always seen privatisation from the perspective

the absence of competition, undermines performance for

of fiscal performance in two regards. First, privatisation mini-

two main reasons. First, bureaucrats running enterprises

mised the amount of financial resources (in terms of trans-

normally do not have profits in mind. Indeed, profits have

fers, deferred tax payments and debt guarantees) that the

often been sacrificed for patronage. Second, public owners

government has had to put up with because of owning too

have few incentives to be efficient because, unlike private

State of the art dairy factory

K E N YA N E C O N O M Y

eBizguides Kenya

companies, they don’t have shareholders’ pockets to fill, an

The NSE, which was formed in 1954 as a voluntary organi-

image to protect and their job security is more or less gua-

sation of stockbrokers, is now one of the most active capital

ranteed. As far as efficiency is concerned, the objective is to

markets in Africa. The administration of the NSE is located

get the highest return from every single shilling used in

at: Nation Centre, 1st floor, Kimathi Street, Nairobi.

public expenditure. Efficiency arguments also hold that competitive markets are better at allocating resources than state-

As a capital market institution, the NSE plays an important

dominated economies.

role in the process of economic development. It helps mobilise domestic savings thereby bringing about the reallocation

EFFICIENCY

of financial resources from dormant to active agents. Longterm investments are made liquid, as the transfer of securi-

Statistics show that companies that have been privatised for

ties between shareholders is facilitated. The Exchange has

at least a year have had a 378% increase in exports, 143%

also enabled companies to engage local participation in their

increase in turnover and a 241% increase in pre-tax profits.

equity, thereby giving Kenyans a chance to own shares.

Use of private companies to provide basic community ser-

Companies can also raise extra finance essential for expan-

vices are also rising, with the government actively searching

sion and development. To raise funds, a new issuer

for commercial and private based solutions to the problems

publishes a prospectus, which gives all pertinent particulars

of providing efficient and cost-effective community services.

about the operations and future prospects and states the

Blazing the trail are such towns such as Eldoret, Nyeri and

price of the issue. The stock market also enhances the inflow

Wajir whose privatisation is focused on water sewerage

of international capital and can be useful tools for privatisa-

systems.

tion programmes.

In light of this, the government will divest 30% of its stake

The NSE is at present made up of 18 stockbroking firms all

in Kenya Electricity Generating Company (KenGen) through

based in Nairobi. These members of the NSE transact busi-

an initial public offer. The board Chairman, Titus Mbathi,

ness mainly on the Nairobi market, with a limited proportion

said the move would accord Kenyans an opportunity to own

of business conducted in foreign securities through overseas

KenGen shares. Kenya Railways Corporation will also be

agents. The stockbrokers act as financial advisers to their

handed over to a private operator by 15th December 2005.

clients and also carry out their orders.

The Corporation will be privatised with or without the enact-

The NSE deals in both variable income securities and fixed

ment of the Privatization Bill. The signing of the concession

income securities. Variable income securities are the ordi-

contract between the government and the private firm took

nary shares, which have no fixed rate of dividend payable as

place in June 2005. The privatisation would follow a time-

the dividend is dependent on the profitability of the com-

table set by Uganda and Kenya governments for joint con-

pany and what the board of directors decides. The fixed

cession of railways. The bidders conference and submission

income securities include treasury and corporate bonds, pre-

of technical and financial bids took place in spring 2005. The

ference shares, debenture stocks – these have a fixed rate of

entire network of 1,920 kilometres and most of the 7,000

interest or dividend, which is not dependent on profitability.

rail workers were set to be taken over by the private ope-

INVESTOR PROFILE

rator.

THE STOCK EXCHANGE (NSE)

Current statistics show that around 450,000 to 500,000 Kenyans invest in the market, which is a paltry 2% of the Kenyan population. It is the objective of the NSE to raise this

The mission statement of the Nairobi Stock Exchange (NSE)

number to 1.5 million and above over the next five years to

is: “to develop and operate an efficient and transparent

strengthen the domestic market.

securities market to the best international standards for the benefit of all stakeholders”.

eBizguides Kenya

K E N YA N E C O N O M Y

THE NAIROBI STOCK EXCHANGE AGENDA

settlement as we enter an electronic environment • Revised management and membership rules governing the admission and management of members.

A new dawn is emerging in Africa. It is a period of reawakening for the people of Kenya. In particular, the stock

The long-term stability, credibility and growth of the capital

exchange is now keen, more than ever before, to rise up to

markets within a competitive global environment, consti-

the challenge and manage its own destiny. Its agenda can

tutes the critical pillars of the regulatory policy and objec-

be summarised under three headings: systems, innovation

tives.

and compliance. • Systems Automation – Technology drives growth today.

NEW LISTINGS – REVIEW OF MARKET STRUCTURE

The power of the Internet and the World Wide Web is set to change the world in the next 10 years more than any other

The structure of the Stock Exchange has witnessed tremen-

technology has in the last 50 years. Failure to embrace tech-

dous transformation during the last ten years, which has

nology will marginalise economies and institutions from the

seen its operating environment and trading systems improve

global marketplace. To be on the cutting edge of global

as part of measures aimed at improving market transpa-

competition, the NSE is adopting cutting edge technology as

rency and efficiency.

an integral part of the entire transaction chain. Automation of the trading system, clearing and settlement system, and

The single biggest challenge at the moment is to attract new

corporate communications is the primary focus of attention.

listings to the Exchange. The number of listed companies has remained below 60 for a long time. Following consulta-

• The Central Depository System and Electronic

tions with stakeholders in the capital markets industry, the

Trading – The implementation of the central depository

NSE intends to undertake fundamental reform of the

system will shorten the registration process, boost liquidity in

current market structure. Specifically, the reforms will focus

the market, increase market activity, reduce market risk,

on the need to create alternative markets to cater for the

attain international standards and deliver the NSE’s mission

specific needs of different issuers and investors.

statement.

The market has been, and will continue to be (reorganised) into four independent market segments, each with its spe-

• Compliance – Technology on its own cannot create a safe

cific index, namely:

and transparent system. To ensure the confidence and trust of investors, the NSE will make compliance with rules and

• The Main Investments Market Segment (MIMS) – This

regulations a key component of the strategic focus. The

is the main quotation market, with more stringent listing

Compliance Department of the Exchange has been rede-

requirements similar to the current structure of the

fined to inform and monitor the market proactively through

Exchange. This market segment adapts the current listing

sophisticated systems and procedures. The NSE is dedicated

requirements of the NSE, with appropriate modification, to

to developing, implementing and reviewing its systems to

take into account the reorganised market. Eligibility criteria

monitor compliance among listed companies, investors and

for companies currently listed at the NSE, which do not

members of the NSE. This will be done by:

satisfy the requirements of the MIMS, are re-categorised and listed on the Alternative Investments Market Segment.

• Revised listing rules that will define the regulatory environment for listed companies and establish minimum require-

• The Alternative Investments Market Segment (AIMS)

ments for listing

– AIMS is aimed at providing access to the capital markets

• Revised disclosure standards embodying continuing listing

for small and medium-sized companies with high growth

obligations

potential. This provides an alternative method of raising

• Revised trading rules to govern trading and delivery and

capital to those companies that find it difficult to meet the

K E N YA N E C O N O M Y

eBizguides Kenya

more stringent listing requirements of the MIMS. This is par-

market at the Exchange. The segment also lists other short-

ticularly necessary in order to respond to the changing needs

term financial instruments such as treasury bills and com-

of issuers and to provide access to the capital markets to

mercial papers. The money market presents wide opportu-

younger innovative companies with high growth potential.

nities that are yet to be taken up by specialist money market

AIMS also facilitates liquidity to companies with a large sha-

players. Expertise in this area has grown rapidly over the

reholder base through the process of “introduction”. This is

years, as investment advisors have had to meet the cha-

the process by which existing shares are listed for the pur-

llenge of designing solutions to the problems currently

pose of marketability and not for the purpose of raising

facing Kenya’s financial markets, and arranging securities

capital. AIMS also offers investment opportunities to institu-

customised to meet the specific needs of our economy.

tional investors and high net worth individuals to diversify

Bond markets are relatively underdeveloped in Africa’s

their portfolios and access high growth sectors of the eco-

financial markets, yet they have the potential of mobilising

nomy. This market segment has its own eligibility and listing

significant amounts of capital. They can also give African

requirements.

stock exchanges a tremendous boost in turnover, as bonds are usually more attractive to investors than stocks.

• Fixed Income Securities Market Segment (FISMS) – The Exchange has a special trading window for fixed income

• Futures and Options Market Segment (FOMS) – The

securities, called the Fixed Income Securities Market

FOMS has not yet taken effect but it will provide a mecha-

Segment (FISMS), which is aimed at providing a separate

nism to market participants to hedge against the risk asso-

independent market for fixed income securities such as tre-

ciated with market volatility. The market segment will be

asury bonds, corporate bonds, preference shares and

developed and implemented after further research on the

debenture stocks. FISMS will expand the existing bond

necessary operational systems.

Down town Nairobi

A G R I C U L T U R E

â&#x20AC;&#x153;He who works with the hoe, does not die of hungerâ&#x20AC;? Kenyan proverb

101

AGRICULTURE

eBizguides Kenya petitive sector by reforming the legal framework, rese-

OVERVIEW

arch and extension, access to credit, inputs and markets.

Natural resources form the foundation of much of the

The horticultural sector is one of the fastest growing sub-

Kenyan economy today. Agriculture in particular is a cor-

sectors. The main export products are cut flowers, French

nerstone of the countryâ&#x20AC;&#x2122;s economy, employing over 80%

beans, pineapples, mushrooms, asparagus, mangoes,

of the population. In fact, more than 50% of export ear-

avocados, passion fruits, and melons. Tea continues to

nings are attributed to agricultural products, with cash

provide the largest agricultural profit for Kenya. The pri-

crops of coffee, tea, tobacco, cotton, sisal, pyrethrum,

mary food crops are beans, cassava, potatoes, maize,

and cashew nuts leading the way. The total available area

sorghum and fruit. As in the early days of the republic,

for sustainable agriculture is about 17%, which is carried

these crops are mainly harvested as subsistence farming

out in the medium and high potential areas of the

today.

country. The rest of the country is classified as arid and semi-arid land (ASAL). Despite this low percentage, agri-

Both agricultural productivity and population density are

culture continues to remain the largest contributor to

influenced by rainfall. The majority of Kenya receives less

GDP, accounting for 24% of the value added. To this end

than adequate rainfall needed to support crop cultiva-

the government, under a ten-year strategy for revitalising

tion. As a result, the highland areas and Lake Victoria

agriculture, plans to transform agriculture into a more

boast the most intensive agriculture and a greatest con-

profitable, commercially viable and internationally com-

centration of people. Pastoral farming dominates the

Agriculture accounts for 24% of the GDP

eBizguides Kenya

AGRICULTURE

remaining drier regions of Kenya. Camels are common in the arid desert areas while cattle, sheep, and goats domi-

side government subsidies on inputs. The high cost of

nate the rest of the country.

inputs is due, among other factors, to inefficiency, corruption, poor management, and high cost of equip-

The agricultural sector has strong forward and backward

ment. Total production of sugar in Kenya remained

linkages with the manufacturing sector providing most of

slightly above 450,000 metric tons. This is lower than the

the basic raw material inputs to local agro-industries.

total country demand for 610,000 tons, creating a deficit

Most of the manufacturing work in Kenya is linked to the

of 160,000 tons. Unfortunately the imported sugar

processing of agricultural products. There are meat pro-

exceeds this deficit, flooding the market with the cheap

cessing and dairy industries as well as leather, paper, tex-

imports.

tile, and sugar production. Approximately 5 million people depend on sugar cane The real agricultural sector GDP grew by 1.5% in 2003,

farming in Kenya, either directly or indirectly.

which was the highest growth in five years, due to increased production of maize, wheat, coffee, cotton, tea and

Since 2001 the Kenya Sugar Board, along with the

dairy produce.

Ministry of Agriculture, have implemented reforms to streamline the sector. The new industry strategic plan

SUGAR

aims at reducing the production costs and improving the productivity of the sector. Strong emphasis has been put

In the sugar sub-sector, an improvement was recorded in

on infrastructure, irrigation, privatisation ethical marke-

cumulative cane deliveries, which increased by 9.6%

ting strategies and import controls. In order to protect

during the first eight months of 2004 to 2,797,261 tons,

the local sugar industry, the government of Kenya suc-

following a decline of 15.5% in a corresponding period

cessfully negotiated for a four-year non-renewable

of 2003. Increased cane delivery resulted from increased

COMESA safeguard period from import of cheap sugar in

production of processed sugar by 25.4% to 331,662 tons

2003.

from 364,443 tons in the first eight months of 2003.

TEA Despite this improvement the sugar industry continue to face a lot of challenges, especially from cheap imports,

Kenya is a major tea producer, with more than 110,000

which continue to affect the sales of local sugar. As local

hectares of land devoted to tea. In Kenya, tea is grown in

industries do not yet enjoy full economies of scale, their

the highland areas, which has the adequate rainfall and

prices seem to be higher than the imported sugar whose

low temperatures needed. The main tea-growing area is

manufactures enjoy immense economies of scale along-

in the Kenyan Highlands, west of the Rift Valley, at alti-

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AGRICULTURE

eBizguides Kenya

tudes between 5,000 and 9,000 feet. Tea is a major foreign exchange earner, and the main source for 1720% of Kenya’s total export revenue. Small-scale farmers market their produce through the umbrella Kenya Tea Development Authority (KTDA), which is in charge of the collection, processing and selling of processed leaves. Unlike small-scale farmers, large-scale growers are responsible for processing and marketing of their own crop. The majority of the Kenyan tea production is sold through the Mombasa auction, with Pakistan, the UK and Egypt being the biggest buyers. The Kenya Tea Development Authority and Association of Tea Growers develop and market Kenyan teas worldwide. These organisations’ aims are to promote recognised standards and

that were characterised by well-distributed rainfall parti-

certification for the industry in general. They have made

cularly in tea growing regions and increased processing

outstanding contributions to the Kenyan economy

capacity particularly in the smallholder sub-sector.

through excellence, innovation and quality in exporting overseas. They also provide a market for the 314,875 far-

During the year, tea sales in the local market grew by up

mers who depend on tea growing as a livelihood.

to 8%, reaching 13,626,019.58kg compared to

Established under an Act of Parliament (Cap. 343) in June

12,651,133kg sold the previous year. This impressive

1950, the Tea Board of Kenya licenses tea growers’

growth was largely attributed to a generic promotion

manufacturing and exports. The board also carries out

campaign being undertaken by the Board since October

research on tea through the technical arm, the Tea

2002, which aims at popularising tea-drinking culture in

Research Foundation of Kenya, which is composed of the

the country.

government, Kenya Tea Development Authority, Kenya Tea Growers Association, Nyayo Tea Zone, Development

COFFEE

Corporation and East Africa Tea Trade Association. Kenya’s production is almost exclusively CTC manufac-

Kenya works diligently to assure quality in all beans that

ture (cut, twist and curl). This type of manufacture pro-

are exported. The coffee is cultivated on small farms, and

duces strong-liquoring teas, which yield a high number of

the growers are rewarded with high prices for quality

cups per kilo, when brewed loose and in teabags. The

beans. The main growing region in Kenya extends south

bushes are harvested throughout the year, with the best

of 17,000ft Mt Kenya to near the capital of Nairobi.

quality being produced in January and February and Kenyan coffee is wet-processed and sold by the size of

again in July, during the drier periods of the year.

the bean, with AA signifying the largest beans, followed In 2004 the tea industry continued to hold its top spot as

by A and B. The best Kenyan coffee, called Estate Kenya,

the country’s leading foreign exchange earner, following

can cost twice as much as regular AAs, but is worth the

impressive production and trading results. For the first

price. The tremendous body, astounding winy acidity,

time in the history of the industry, tea production in 2004

blackcurrant flavour and aroma make Estate Kenya one

surpassed 300 million kg – 324,608,570kg. The produc-

of the finest coffees in the world.

tion was well above the industry’s own estimate of 320 million kg, an impressive 10.5% increase on estimated

In the coffee sub-sector, there was a decline in 2004 on

production. The unprecedented increase in production

the overall performance with a fall in deliveries from

was largely attributed to favourable weather conditions

44,527 tons to 38,667 tons in first eight months of 2003

104

eBizguides Kenya

AGRICULTURE

and 2004, respectively. This drop was attributed to a drop in international prices alongside inefficient marke-

HORTICULTURE

ting strategies. Consequently many farmers stumped their crop to pave the way for more profitable alternative

In Kenya, horticultural exports have demonstrated huge

crops. President Mwai Kibakiâ&#x20AC;&#x2122;s government has promised

potential in terms of both growth rates and overall

to streamline the industry and write off farmersâ&#x20AC;&#x2122; huge

demand, generating jobs that directly support a half

debts.

million workers, small farmers, and their families. Small farmers have proved to be effective suppliers for horticul-

Germany has remained a leading importer of Kenyan

tural products such as French beans or avocados, when

coffee accounting for 30% of all exports. There is

satisfactory contracting arrangements are established

however some hope as good trends in the crop prices

with an exporter or processing firm. Large farms have

and Kenyan shilling depreciation is expected to benefit

been more conducive to the cultivation of other crops,

the farmers. Coffee production is also expected to

notably cut flowers, but have generated thousands of

benefit from the recent preferential access to US market

jobs for labourers who own little or no land. Working

under the AGOA. Kenya exported 48,050 tons of coffee

conditions vary but evidence shows that these employees

in 2002. The coffee fetched an average of KSH115

and farmers are better off than their peers outside the

(US$1.54) at the Nairobi auction.

industry. Although French beans, Asian vegetables, Cattle as farmed for meat and dairy products

AGRICULTURE

eBizguides Kenya

canned pineapple, and avocados dominate Kenya’s

exporter of flowers in the world (after Colombia), and the

exports, Kenyan traders now export 30 different fruits

second largest developing-country supplier of vegetables

and 27 vegetables. In spite of increased competition from

to the European Union (after Morocco). Approximately

Cameroon, Côte d’Ivoire, Morocco, South Africa and

135,000 people are now directly employed in the sector.

Zimbabwe, Kenya continues to be the most important

Most are poor Kenyans, for whom the industry has made

supplier of vegetables to the European Union. The flexi-

an important difference to their lives.

bility and responsiveness of Kenya’s private traders have sustained this steady upward momentum. The Kenyan

In the last decade in Kenya, fresh fruit and vegetables

horticultural industry shows what can be achieved.

and flowers have seen impressive growth, which appears to have accelerated since 2000. The value of fresh fruit

Horticultural products have accounted for two-thirds of

and vegetable exports increased from US$29 million in

all growth in agricultural exports and recently surpassed

1991 to an estimated US$164 million in 2002, while cut

coffee to become the second largest merchandise export,

flower exports expanded from US$39 million to US$175

after tea, and the third largest source of foreign

million over the same period. Total horticulture exports

exchange after tourism and tea. Kenya is the second lar-

were estimated to exceed US $350 million in 2003, or

gest horticultural exporter in Sub-Saharan Africa (after

35% of all Kenyan agricultural exports. Factors in the

South Africa), the second largest developing-country

growth and success of horticultural exports include a rea-

3 million kenyans derive their livelyhood from tea

eBizguides Kenya

AGRICULTURE growth of flowers. The two industry lobby groups, the Kenya Flower Council (KFC) and the Fresh Produce Exporters’ Association of Kenya keep an eye on production and ensure that high standards are met and observed. This has attracted substantial support from international development and trade institutions in funding and capacity building.

PYRETHRUM Pyrethrum plants grow wild on the Dalmatian coast of Yugoslavia. In 1929, Captain Gilbert Walker, who was the first planter to grow pyrethrum commercially in listic exchange rate, stable policies, a good investment cli-

Kenya, imported some seed from Yugoslavia and planted

mate, competitive international transport connections,

it on his farm in the highlands near Nakuru town. With

institutional and social links with markets in Europe, and

the outbreak of the Second World War, Kenya became

continual experimentation with the market institutions to

the leading producer of pyrethrum, a position it still

link farmers and exporters. Smallholder participation is

retains, and Nakuru remains the centre of production.

encouraged by farmer training and extension schemes,

Pyrethrum has been used effectively to control insects for

investment in small-scale irrigation, and assistance in

decades and is non-persistent, and decomposes rapidly in

establishing links with exporters. Many of the lessons of

the environment. This rapid degradation of pyrethrum

Kenyan horticulture can be applied elsewhere in Africa.

has resulted in little known cases of insect resistance

Indeed, Kenya faces increasing competition from neigh-

making it an excellent choice for the control of agricul-

bouring countries trying to replicate its success.

tural pests. Today Kenya and Tasmania are the largest pyrethrum growing and producing countries.

FLORICULTURE Pyrethrum is a perennial herb with white-yellow flowers How many people know that there is a

that grows to a height of about 60cm. In Kenya it is

high probability that in Europe most

grown by more than 100,000 small-scale farmers at alti-

flowers given to loved ones on St

tudes between 1,500m and 3,000m. Pyrethrins are con-

Valentine’s Day come from Kenya? Since the

centrated in the flowers to a level of 1-2% of dry weight,

country’s independence in 1963, and especially in

however pyrethrin content is larger at higher altitudes.

recent years, floriculture has emerged as one of

The pyrethrum plant is propagated by seeds or vegetati-

Kenya’s great economic success stories.

vely by splitting parent plants. In the early days pyrethrum was exported from Kenya as baled dried flowers and con-

Flowers picked in the morning reach the markets in

tained a minimum of 1.3% pyrethrins. Pyrethrum flowers

Amsterdam by evening. At a time when most foreign

are now processed by the Pyrethrum Board of Kenya and

investors are wary of committing money in Kenya, flori-

marketed as an extract containing 25–50% pyrethrins.

culture is one of the few industries that continues to

Present production in Kenya is about 10,000 tons of

attract foreign investment. However, floriculture does

dried flowers per annum, roughly 50% of the world pro-

not need to be the only shining star of Kenya’s global

duction. The largest importers of pyrethrins are the USA

economic success. The floriculture industry’s success is

and Europe.

attributed to its being largely private-sector driven – with the government playing a facilitative role – coupled with Kenya’s tropical climate, which greatly favours the

107

AGRICULTURE

eBizguides Kenya 2004. This performance resulted from favourable wea-

LIVESTOCK AND FISHERIES

ther conditions experienced during the year, alongside the expanded market with the revival of Kenya Co-operative Creameries (KCC). It is worthy to note that milk

Investment opportunities exist in the rearing of livestock

delivery to the KCC improved from 40,000 litres per day

for meat and dairy products. The dairy industry has been

in 2003 to 350,000 litres per day May 2004. The industry

liberalised, providing new investment opportunities in

is expected to grow further with good future prospects.

milk processing for local and regional markets. Non-conventional livestock farming for example, of ostrich and crocodile farming, represent an exciting new area of investment. Bee keeping and honey processing are an untapped potential in Kenya. The dairy sub-sector is perhaps the one that recorded most impressive performance during the year. Milk deliveries in the formal industry increased by 40.8% from 131,359 million litres in 2003 to 184,939 million litres in

Kenya is one of the largest producers of pineapples

eBizguides Kenya

AGRICULTURE

Beef farming is very important in Kenya today and 90%

Kenya’s sheep population stands at 4 million, and the

of beef cattle in Kenya are in the hands of subsistence

Maasai alone are thought to have 1 million. The greater

farmers and pastoralists. Today’s cattle population

percentage of Kenya’s sheep is indigenous, doing well in

exceeds 10 million heads and the large-scale livestock

the drier areas, whilst the exotic breeds are found in

farmers keep animals both for commercial (meat, milk)

cooler, wetter highlands in Molo, Timau and Nyandarua.

and subsistence purposes. The distribution of beef cattle

Most of Kenya’s sheep are for the production of meat

in Kenya is influenced by rainfall patterns. Most animals

(mutton) but particularly for nomadic people. Milk and

are kept in ranches in the Rift Valley province – Nakuru,

skin play a vital role, too, as is wool, which is produced

Trans Nzoia, Kajiado. Larger ranches are found in parts of

mainly in the highlands.

Kilifi and Kwale in the Coast province. Beef cattle can tolerate harsher climatic conditions than

Pig farming is another form of livestock farming. It can be

dairy cows. Small-scale beef farming is carried out in

practised as a speciality or as a part of mixed farming

most parts of Kenya. Before meat is sold, a public health

operations. As with dairy cattle, food can be grown on

officer, who declares it either fit or unfit for human con-

the farm especially to feed the livestock and they can also

sumption, must inspect it. The canning and freezing

feed on a variety of crop remains. The Farmers Choice

plants for beef are found in Nairobi, Thika and Nakuru

Company in Kenya deals in pigs and pig products such as

and the canned meat is sold to some African and over-

sausages, ham, bacon and salami.

seas countries. 2004 Sugar Conference in Nairobi

109

AGRICULTURE

eBizguides Kenya

Fish exports in Kenya are now worth more than KSH4

more aggressive marketing, value addition in handling

billion, following a lifting of a European Union ban on

produce, and encouraging more players in the field in the

imports from Kenya. Kenya has also been taking steps to

areas of packaging and processing.

protect the local fishing industry by ensuring that heavy fines are imposed on those boats fishing without a valid

MAIN COMPANIES

licence. Kenya’s water resources of the Indian Ocean and Lake Victoria provide vast fishing potential. At present,

BROOKSIDE DAIRY LTD

deep sea fishing, prawn and trout farming are in their infancy but growing rapidly. Opportunities also exists in

Mr Heath

fish processing (filleting and fishmeal production), as well

Group General Manager

as fisheries-support infrastructure (refrigerated transport,

P.O. Box 236-232, Ruiru

cold storage, and so on).

Tel: +254-67-54010/54465/54107 Tel: +254-67-54101

NEW DEVELOPMENTS

Emai: maziwa@brookside.co.ke Website: Website: www.brookside.co.ke

The government is prepared and willing to work hand in hand with the private sector, so that agriculture in Kenya

Kenya is one of the biggest producers of milk in Africa. Brookside

continues to develop and grow, creating more opportu-

Dairy Ltd was established in 1993 and has risen to become the

nities for investment and employment. There is also a

leading milk processor in the country. With over 40 dairies in

direct move to improve the horticulture sub-sector by

Kenya, the competition is stiff, but Brookside is by far the market

Kenya’s flowers are shipped to be sold in Amsterdam’s auctions

110

eBizguides Kenya

AGRICULTURE

leader with 40% share of the processed milk market and 70,000

tion. The company has also adopted a new food safety manage-

small scale farmers supplying milk to Brookside (over 300,000

ment system, hazard and critical control procedures (HACCP),

litres of milk processed per day). The milk is collected in seven dif-

standards for production, stock control and efficiency monito-

ferent cooling centres all over the country and is then brought

ring.

back to Brookside to be processed. The company is currently expanding its production facilities in Brookside Dairy has developed an extensive and reliable distribu-

Ruiru and is constructing new cooling plants in other milk collec-

tion network and offers the widest range of processed milk and

tion areas in Kenya.

dairy products in East Africa for the local and export market. The company produces fresh milk (standard, whole, skimmed), Long-

“The culture of milk in Kenya is very strong, but 90% of

life milk (flavoured, whole and low fat), fermented products

the milk consumed is still ’unprocessed’. We have deve-

(fruit-filled yoghurts, drink yoghurt and Lala) and cream products

loped youth education programmes in order to enlighten

(butter, whipping cream, double cream and ghee), available in a

the consumer on the benefits of processed milk and edu-

wide range of packaging from plastic bottles to Tetra Briks.

cate the younger generation on the nutrition values.”

Brookside products are available in over 15,000 retail outlets in Kenya, as well as in Tanzania, Uganda, Rwanda and Burundi.

Mr Heath Group General Manager

Brookside Dairy has invested in state-of-the-art technology equipment and production systems and has ISO 9001 certificaTea is fast becoming the national drink in Kenya

AGRICULTURE

eBizguides Kenya

COFFEE BOARD OF KENYA

growers are involved in the coffee cultivation. Coffee contributes 20% to the foreign exchange earning of Kenya.

Mr Waweru Managing Director

Coffee Board of Kenya is the regulator and service pro-

Coffee Plaza Exchange Lane,

vider to all the stakeholders of the industry, thereby crea-

Off Haile Selassie Av,

ting opportunity for growth through partnerships and

P.O. Box 30566, 00100 Nairobi

alliances.

Tel: +254-20-332896/7/8 Fax: +252-20-330546

The Board formulates policies and rules to regulate and

Email: coffee@arcc.org

develop the coffee industry, and carries out the registration and licence of coffee nurseries, pulping stations,

Kenyan Arabica is grown on rich volcanic soils in the high-

millers, marketing agents, buyers, roasters, packers and

land 1,400â&#x20AC;&#x201C;2,000 metres above sea level. The finest

auctioneers. The Board is also in charge of collecting,

Arabica coffee is grown in Kenya, which provides a per-

analysing data and maintaining a database on the coffee

fect climate for the crop. Kenya produces 1 million bags

industry. The Board is the arbitrator when there are dis-

per annum with 170,000 hectares cultivated. 700,000

putes in the industry.

The dairy sector

112

eBizguides Kenya

AGRICULTURE

The Coffee Board of Kenya is also in charge of the pro-

ISO 9002 and Social Accountability (SA) 8000 certifica-

motion of the industry. The Board identifies opportunities

tions and is in the process of acquiring ISO 14001 and

and threats and advices the stakeholders. The Board

ISO 9001.

analyses market trends, and has developed country and consumer profiles in existing markets as well as emerging

Del Monte has developed an eco-friendly production

markets to guide the industry’s marketing efforts. The

management. A system for water treatment has been

Board

built, and no part of the pineapple is wasted.

works

collaboration

with

the

Coffee

Associations of Eastern Africa in the promotion of Kenyan coffee and participates in international trade fairs

Most of the production is exported, mainly to the

and exhibitions.

European market, and a small percentage of the cans produced is marketed locally under the Del Monte or

DEL MONTE KENYA LTD

Kengold brand. The company has developed a container terminal that can handle dry cargo and refrigerated con-

Mr Carlos Mejia

tainers and dispatches over 5,000 containers per year.

Managing Director

Del Monte was the first local company to provide this

Oloitiptip Road, Thika

door-to-door type of services to its customers in Europe.

P.O. Box 147, 01000 Tel: +254-67-21601

The COMESA market is providing increasing market

Fax: +254-67-31424

opportunities. The company has recently set up a fully

Email: nanasi@delmonte.co.ke

fledged marketing department to establish the “Del

Website: www.delmonte.com

Monte” brand as leader in the region and in Africa.

Established in 1965, Del Monte Kenya has been opera-

HOMEGROWN (KENYA) LTD

ting in Kenya for over 35 years and is Kenya’s largest exporter of pineapple products, processing over 250,000

Mr Richard Fox

tonnes annually and earning Kenya over KSH4 billion in

Managing Director

foreign exchange.

Nairobi Business Park Unit B, Ngong Road, Nairobi P.O. Box 10222, 00400 Nairobi

With over 6,000 employees and 5,500 hectares under

Tel: +254-20-573800/574193

cultivation, Del Monte is one of the most respected

Fax: +254-20-574838

names in the food industry and is reputed for the quality

Email: admin@homegrown.co.ke

of its products. Del Monte has become a brand leader in

Website: www.flamingoholdings.co.ke

the canned fruit and fruit juice market sectors. Homegrown is part of the Flamingo Holding Group of Del Monte cannery processes over 1,500 tonnes of pine-

Companies. With an annual turnover of £200 million,

apples daily which account for over 3,7 million cases and

Homegrown is one of Kenya’s biggest agricultural suc-

70,000 drums of pineapple products a year. The com-

cess stories and was ranked as the most respected East

pany supplies over 40% of the world’s canned pineap-

African company in the agriculture industry by Nation

ples.

and PricewaterhouseCoopers’ business survey in 2004.

The production of canned pineapple is conducted under

Homegrown employs over 9,000 people in Kenya and

the strictest hygiene conditions, conforming to the latest

exports over 19,000 tonnes of fruits, vegetables and cut

standards. The company has invested in state-of-the-art

flowers to UK retail outlets per year. These products are

facilities and machineries to achieve and maintain the

grown on Homegrown’s farms in Naivasha and Timau by

best quality standards. The company has acquired the

over 1,000 small-scale outgrower farmers.

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The business practice policy of Homegrown places a high

Last but not least, the HCDA is in charge of the promo-

priority on worker welfare, maintenance of safe and

tion of the sector and the commercialisation of extension

healthy workplace, preservation of the environment, and

services. The institution undertakes demonstrations and

minimisation of risks from operations.

trials of technologies that are beneficial to the industry, and organises groups of small-scale growers for produc-

HORTICULTURAL CROPS DEVELOPMENT AUTHORITY

tion and marketing of local and export crops.

KENYA FLOWER COUNCIL Dr Wilson Songa Managing Director

Mrs Jane Ngige

Old Airport Road,

Chief Executive Officer

JKIA Cargo Terminus roundabout

P.O. Box 56325, 00200 Nairobi

P.O. Box 42601, 00100 Nairobi

Tel: +254-20-3860612

Tel: +254-20-827260/1

Fax: +254-20-3876597

Fax: +254-20-827264

Email: kfc@wananchi.com

Email: hcdamd@wananchi.com

Website: www.kenyaflowers.co.ke

Website: www.hcda.or.ke The horticultural sector (including fruits and vegetables) The Horticultural Crops Development Authority (HCDA) is

is the second largest contributor to the Kenyan economy

a parastatal company established in 1967 under the

and the second foreign exchange earner after the tea

Agriculture Act with the aim of revitalising the horticul-

sector, generating over US$350 million annually. Kenya is

tural industry.

the leading exporter of cut flower (60% of roses) to the EU with 25% market share and 60,000 tonnes exported

The HCDA, in collaboration with other government and

each year (69% sold to the auctions). The industry

private institutions, local and international agencies,

employs 100,000 people, and the sector supports 2

assists in training, advising and promoting key players in

million people indirectly.

the sector, and helps producers and exporters understand and apply international regulations and quality

The Kenya Flower Council was established in 1996 by the

requirements.

leading growers, as a voluntary organisation, to regulate, organise and promote the interests of the flower sector

The HCDA has an advisory role for producers and expor-

by harmonising the industry standards, lobbying and pro-

ters regarding technical issues (use of certified planting

moting the image of the sector.

materials and seeds, post-harvest handling techniques, use of inputs and pesticides), as well as on marketing

The Kenya Flower Council is the “enquiry point” for the

issues (identifying local and export market outlets, packa-

sector. The Council works closely with the “Fresh

ging, transportation and distribution).

Produce Exporters Association of Kenya” to liaise, on behalf of the members, with governments, development

The HCDA also acts as the watchdog of the industry: the

agencies and media. The Council cooperates with other

institution is in charge of the registration and licensing of

stakeholders and organisations to create an enabling

horticultural exporters, horticultural crops nurseries, and

environment for the floriculture industry locally and

the inspection of the planting materials and facilities for

abroad.

certification. The HCDA monitors the prices in the local and export markets and implements standards for locally

The Council has 42 members (over 70% of the flower

marketed produces.

exporters), including 30 “Silver Standard certified members” and two “Gold Standard certified members”. To

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eBizguides Kenya

AGRICULTURE

achieve the certification, the Council’s members must

production. In 2004, exports from Kenya were 20,000

comply with local and international standards and regu-

metric tonnes valued at KSH826 million. China is the hig-

lations on traceability, agricultural practices, protection

hest importer followed by Spain, Saudi Arabia, Indonesia

of the environment, crop protection strategy, health,

and Belgium.

safety regulations, training, worker welfare and so on

The Kenya Sisal Board was established in 1946 as a statu-

The |Council has developed corporate social responsibility

tory government organisation operating under the ministry

programmes such as health, security and water provision

of Agriculture and Livestock Development.

for the farmers, day care centres, and local education initiatives.

The Board’s mission is to cater for and promote the welfare and advancement of the sisal industry. The Board is a faci-

The Council intends to broaden the membership in

litator and regulator of the sector, and supports technical

future, to include the small to medium flower growers,

and market research. The Board regulates the registrations

so that it will become an all-inclusive and representative

for plantations, fibre processors, trade marks, appoints fibre

national organisation. The Council is also developing the

marketing agents and licenses various operations in the

“direct retail” channel (out of the auction system) to pro-

sector.

mote the export of value-added products (bouquets) to supermarkets and retailers.

In order to fight against the stiff competition of the synthetic fibres, the Board and the Food and Agricultural

“We are working toward trade, not aid.”

Organisation (FAO) have developed a project on product

Mrs Jane Ngige

and market development of sisal and henequen products.

Chief Executive Officer

The project underlines alternative use of raw fibre such as high quality paper, and puts a lot of emphasis in improvement of sisal production and techniques. A fully operational

KENYA SISAL BOARD

sisal tissue culture laboratory has been established in collaboration with Kenya Plant Health Inspectorate (KEPHIS) to

Mr Charles Kagwimi

produce and supply sisal farmers with high-quality planting

Managing Director

material to improve production.

2nd floor Old Mutual Bldg, Kimathi Street, 00100

The Board is seeking to increase the local consumption of

P.O. Box 41179, Nairobi

sisal: the replacement of synthetic maize packing by sisal

Tel: +254-20-248919

fibre packing would increase sisal production by 12,000

Fax: +254-20-240091

metric tonnes per year.

Email: kensisal@coopkenya.com

KENYA SUGAR BOARD The commercial production of sisal started in 1907, with the first plantation near Thika district. By 1965, 54 plan-

Eng J.O. Nyarotho

tations were producing around 68,000 metric tones of

Chairman

fibre annually, on 120,000 hectares of land. The industry

P.O. Box 51500, 00200 Nairobi

was hard hit by competition from synthetic fibres, and

Tel: +254-20-831880/642

the world total annual production has dropped by 65%

Fax: +254-20-630797/853

to about 280,000 metric tons.

Email: ksb@africaonline.co.ke

Total production in the last five years averaged 23,000

The sugar industry in Kenya dates back to 1952, when the

metric tonnes with a 14% increase of production bet-

Miwani Sugar Company was established. In the 1990s,

ween 1999 and 2004. Kenya exports 80% of the sisal

sugar factories were gradually privatised, and the Kenya

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AGRICULTURE

eBizguides Kenya

Sugar Board was established (replacing the parastatal com-

achieve, unlike in other countries like Mauritius where

pany Kenya Sugar Authority), in 2001, to regulate, develop

large-scale farming has been promoted.

and promote the sugar industry. Since 2001, the Kenya Sugar Board and the Ministry of The sugar sector is the second contributor to agricultural

Agriculture have implemented reforms to streamline the

gross domestic product after tea, and supports over 6

sector. The new Industry Strategic Plan aims at reducing the

million Kenyans. The average production of sugar is

production cost and improving productivity. The plan is

450,000 metric tonnes per year for a total demand of

focusing on the improvement of irrigation, the maximisa-

610,000 tonnes. The deficit is therefore compensated by

tion of economies of scale, as well as the development of

imports of sugar from the Comesa market. Kenya has been

early yielding cane varieties. Strong emphasis has been put

affected by the import of cheap sugar from the region. The

on infrastructure, irrigation privatisation, ethical marketing

sugar sector was penalised for high production costs

strategies, and import controls. The Board has also nego-

caused by inefficiency, mismanagement, the high cost of

tiated safeguard measures with the COMESA to protect the

equipment, huge debts and poor access to credit. 90% of

sector from import of cheap sugar until 2008. This will

the cane is grown in small plots of less than 2 hectares by

allow the industry to restructure itself and develop suffi-

small-scale farmers, and economies of scale are difficult to

cient capacity to compete favourably.

Horticulture is strong in Kenya and plants and flowers are frequently sold on the streets of Nairobi

eBizguides Kenya

AGRICULTURE

In 2004, the sugar production increased up to 530,000

The Agency operates an annual fertiliser credit scheme

tonnes following a decline of 15% in 2003, and self-suf-

that provides fertiliser to the farmers on credit and at rea-

ficiency should be attained in 2008.

sonable prices. Currently, 65,000 metric tonnes of fertiliser are provided annually making it the largest single pri-

KENYA TEA DEVELOPMENT AGENCY

vate fertiliser credit program to farmers in Kenya. KTDA contributes to 63% of the national tea sales. The

Mr Tiampati

Agency sells 75% of the tea production on behalf of

Managing Director

small-scale tea growers, through the Mombasa Auction.

Farmer’s Building, Moi Avenue 00100

The rest of the production goes to direct oversea and

P.O. Box 30213, Nairobi

local sales and to KETEPA (Kenya Tea Packers Ltd). The

Tel: +254-20-3227000

Agency handles the entire tea marketing for all the small-

Fax: +254-20-210636

holder tea factory companies, for an annual turnover of

Email: info@ktdateas.com

over US$320 million.

Website: www.ktdateas.com The Agency sources for external loan capital for expanKenya Tea Development Agency Ltd (KTDA Ltd) was esta-

sion of existing factories and construction of new tea fac-

blished in 1964 as a parastatal company and was incor-

tory projects and coordinates repayment. It also receives

porated in June 2000 as a private tea management

and invests tea sales proceeds on behalf of the factories,

agency with the mandate of providing effective manage-

makes payments to growers and performs accounting

ment services to the tea sector for efficient production,

and internal audit services for the tea factory companies.

processing and marketing of high-quality tea for the

The Agency provide IT-related services and also holds cus-

benefit of farmers and other stakeholders. KTDA is the

tody of data, information and statistical reports, commu-

single largest producer and exporter of tea in Kenya, and

nication and related activities.

accounts for 28% of Kenya’s exporting earnings. KTDA is the second largest exporter of black tea in the world.

MUMIAS SUGAR COMPANY

The

Mr Evans Kidero

Agency

manages

Kangaita,

Kagochi

and

Michimikuru tea estates, which achieve some of the hig-

Managing Director

hest production levels in the country. KTDA also manages

P.O. Box 57092, 00200 Nairobi

54 affiliated operational tea-processing factories with an

Tel: +254-20-2712317/8

annual installed processing capacity of 780 million kilo-

Fax: +254-20-2712316

grams of green leaf. The factories are spread in all the

Email: pnjeri@mumia-sugar.com

tea-growing areas of Kenya. Besides serving the 400,000

Website: www.mumias-sugar.com

small-scale tea growers, these factories also process leaf from the Nyayo Tea Zone Development Corporation

Mumias Sugar Company was formed in June 1971, as a

estates.

partnership between the government of Kenya and Booker Agriculture International (B.A.I.), in an attempt to

To enable streamline tea processing, the Agency coordi-

meet growing sugar demand and reduce Kenya’s gro-

nates the logistics of green leaf collection from the field

wing importation of foreign sugar. By 1979, Mumias was

to the factories through fleets of leaf carriers.

providing Kenya with 45% of the national supply and the government no longer needed to import sugar from

KTDA employs 871 people, and about 15,000 more

abroad.

employees for the various companies under its management.

Today, Mumias Sugar is the biggest of the six sugar factories in Kenya, and is East Africa’s largest sugar com-

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pany. Mumias is an agriculture giant, producing approxi-

aspect being the social and ethical welfare of Oserian

mately 60% of Kenya’s sugar. With over 4,000 hectares

employees. The farm provides medical health, housing,

of cane planted, Mumias Sugar has a production capacity

education, entertainment and full varied training to its

of 300,000 tonnes per year and a turnover of over KSH11

4,700 employees, as well as support of a further 7,000

billion.

family members. Oserian is also a major participant in Naivasha community projects.

The company was privatised in 2001 and is listed on the Nairobi Stock Exchange. The government owns 40% of

Oserian has an utmost concern for the environment, and

the company. Since the privatisation, Mumias Sugar

has implemented environmental measures including land

Company has launched a major cost-cutting programme

management, only using chemicals that have been

aimed at improving the firm’s profitability and the com-

approved by the World Health Organization, water

pany has realised major investments to upgrade the fac-

management and establishing a wetlands project. The

tory and improve its crushing capacity and expand the

company’s conservation efforts also include conservation

area under cane production.

of the lake, active membership of LNRA and LNNG (the Lake Naivasha Riparian Association and the National

Mumias Sugar Company exports to Uganda and Somalia

Laboratory for Scientific Comparation), respect of ripa-

and has started milling brown sugar for export to the

rian land, as well as a forestry project and a tree nursery.

European Union market. The company had secured an order of 11,000 metric tonnes of sugar for export to the

The Company supports the Oserian Wildlife Sanctuary

EU.

and the conservation of three game corridors. Oserian is constantly researching and developing environmentally

OSERIAN DEVELOPMENT COMPANY LTD

friendly processes such as geothermal heating, carbondioxide recovery in greenhouses, hydroponics systems

Mr Ron Fasol

and improved water management.

Managing Director Moi South Lake Road, Naivasha

Oserian has invested considerable amounts of capital in

P.O. Box 209, Naivasha, or P.O. Box 43340, Nairobi

technology by establishing its own tissue culture labora-

Tel: +254-50-2030210

tory in the early 1990s and more recently by developing

Fax: +254-50-2021035

independent projects of two geothermal wells, one of

Email: info@oserianflowers.com

which is for heating and carbon-dioxide recovery for

Website: www.oserian.com

flower greenhouses. This is now the largest heated greenhouse project in the world.

Oserian Development Company Ltd is one of the largest floriculture companies in Kenya. Established in 1969, the

PYRETHRUM BOARD OF KENYA

company has over 200 hectares of land in flower production of main crops such as roses, carnations, statice,

Mrs Polyne J. Sego

lisianthus and gypsophila. With over 350 million stems a

Managing Director

year exported to markets in Holland, England and other

P.O. Box 420, Nakuru

European countries, the company is rated as one of the

Tel: +254-51-2211567

largest single specialist flower units in the world, and the

Fax: +254-51-220466

world’s largest grower of statice and carnations, flowers

Email: pbk@pyrethrum.co.ke

in great demand for floral arrangements.

Website: www.kenya-pyrethrum.com

Oserian is one of the most highly accredited farms in the

Pyrethrum is a plant that contains active insecticidal com-

country adhering to strict conditions, protocols, one key

ponents, the pyrethrins, formed by the combination of

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AGRICULTURE

two carboxylic acids and three kato alcohols found in the

SASINI TEA AND COFFEE LTD

flower head. Pyrethrum has been grown in Kenya since 1928 and the

Mr Peter W. Muthoka

Pyrethrum Board of Kenya (PBK) was established in 1934

Managing Director

to oversee all activities related to the production, proces-

Sasini House, Loita Street, Nairobi

sing and marketing of pyrethrum for the benefit of gro-

P.O. Box 30151, 00100, Nairobi

wers and consumers.

Tel:+254-20-342166, 342171/2 Fax: +254-20-316573

Kenya has become a major source of pyrethrum, accoun-

Email: info@sasini.co.ke

ting for more than 65% of the global supply, and

Website: www.sameer-group.com

Pyrethrum Board’s products are registered in the USA, Canada, all European countries, Japan, Australia, India

Sasini Tea and Coffee Ltd (member of the Sameer Group

and elsewhere. Pyrethrum is an important foreign

of Companies) was incorporated in 1952. Over the years

exchange earner and a significant contributor to the eco-

the company has grown to be one of the biggest tea and

nomy.

coffee growers and producers in the country. It is quoted on the Nairobi Stock Exchange with some 1,500 share-

About 200,000 families in Kenya are engaged in the cul-

holders.

tivation of pyrethrum, which supports an estimated 1 million people who derive their livelihood directly or indi-

The company’s core business is growing and processing

rectly from this cash crop.

tea and coffee, supplemented by interests in livestock, dairy operations, horticulture, tourism, forestry, fish far-

The Board has made substantial investments in the deve-

ming and crops of medicinal value (Artemisia Annua).

lopment of appropriate machinery and other physical

Sasini owns two tea factories, Kipkebe and Keritor, in

inputs and PBK operates the largest extraction and refi-

western Kenya and operates warehousing and storage

ning plants in the world. Plants are selected through rese-

facilities in Mombasa. In its coffee operations, Sasini

arch into the content of pyrethrin, annual yield per acre,

owns eight estates in central Kenya, each with its own

resistance to diseases and other environmental factors.

pulping and wet-processing facility. It also carries out

PBK makes viable seeds and seedlings available to far-

essential trading activities through its wholly owned and

mers and offers extension services on growing and mana-

licensed trading arm, Aristocrats Coffee and Tea

gement practices.

Exporters Ltd. The company has 911 hectares (2,250 acres) under coffee cultivation and 1,354 hectares (3,344

Quality assurance tests are conducted at all stages of pro-

acres) under tea cultivation, producing some of the finest

cessing to certify the quality of the products. The PBK is

coffees and teas in the country.

currently pursuing the process of quality assurance The company employs over 5,000 permanent employees

system ISO 9000 certification.

and provides the families with essential primary schooThe Board is currently seeking to diversify its target mar-

ling, housing and health care, a reflection of the com-

kets as the European and America markets are saturated.

pany’s commitment to social responsibility.

Market opportunities in Asia, the Far East and Africa are very important as pyrethrum is the most viable insecticide

Sasini in its quest for setting higher standards is certified

in the fight against malaria, in the control of pests of hor-

by Utz Kapeh, Eurepgap and the National Environmental

ticultural crops including cutflowers, vegetables and

Management Authority.

fruits, and in the control of pests associated with animals such as ticks, fleas and flies.

In the future, the company expects to export tea and coffee through its trading arm Aristocrats Coffee and Tea

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eBizguides Kenya

Exporters Ltd, and is planning to venture into private treaty agreements for its farmsâ&#x20AC;&#x2122; produce. Sasini is currently investing in a modern coffee milling plant to enhance quality and efficiency in its coffee marketing systems, and add value to the tea and coffee for local, regional and international markets.

WILLIAMSON KENYA LTD Mr Nigel Sandy Lumsdaine Managing Director Williamson House, 9th Floor 4th Ngong Avenue P.O. Box 42281, 00100 Nairobi Tel: +254-20-2718737 Fax: +254-20-2718737 Email: nigel@williamson.co.ke Established in 1952, Williamson Tea Kenya, is owned by Williamson Tea Holdings plc based in the UK. The company operates on over 3,000 hectares in four tea estates, and produces 12 million kilograms of tea annually, exported mostly to Europe (40%), North Africa (20%) and Pakistan (20%). The company is also diversifying in real estates and manages residential properties in Kenya. Williamson Tea has a market share of 5% in a highly competitive market that has been affected by problems of oversupply in the past. Despite the lowering prices that have affected many producers, the production and prices of Williamson Tea have been increasing in the past year, and outlook for the years to come is very good. Williamson Tea Kenya Ltd prides itself on the quality of its product, has undertaken a re-forestation programme including developing nurseries and planting a wide variety of indigenous trees to improve the environment quality of the plantations, and the company is currently renewing the machinery to improve its productivity.

122

E N E R G Y

â&#x20AC;&#x153;An ocean is not crossed by swimmingâ&#x20AC;? Kenyan proverb

123

ENERGY

eBizguides Kenya

OVERVIEW Kenya is mainly dependent on petroleum, electricity and wood fuel as sources of energy. Petroleum is Kenya’s major source of commercial energy, accounting for about 80% of the country’s commercial energy requirements. Electricity is the third largest source of energy in Kenya, but the second as a source of commercial energy. Biomass is also a very important source of energy, as 80% of the population depends on wood fuel for domestic use in rural areas in the form of firewood, and charcoal in urban areas. With demand growing at an average rate of 6% per annum, and around 16% losses in transmission and dis-

Source: IEA Energy Statistics (www.iea.org)

tribution, there is great pressure to enhance available

responsible for the generation of electricity, and the

power capacity

Kenya Power and Lighting Company (KPLC) is responsible for the transmission and distribution of electricity to more

The current policy objectives emphasise the need for

than 600,000 throughout Kenya.

energy to be accessible at cost-effective prices, and for it to support sustainable socio-economic development

KenGen is responsible for the generation of electricity

while protecting and conserving the environment. Other

through hydropower (597.5MW), thermal power

strategies include increasing competition in the petro-

(212.5MW) and geothermal power stations (127MW).

leum sub-sector as well as encouraging and promoting alternative energy technologies to supplement traditional

The parastatal company is in direct competition with four

sources.

independent power producers (Iberafrica Power (Kenya), Westmont Power (Kenya), OrPower 4 and Tsavo Power Company Ltd), which produce about 186MW or 18% of

Source: IEA Energy Statistics (www.iea.org)

the country’s electricity supply.

ELECTRICITY The Electricity Regulatory Board (ERB) approves power Electricity is the second largest source of commercial

purchase agreements between KPLC and power genera-

energy in Kenya. It is produced through hydropower

tors, and is charged with reviewing and adjusting tariffs

(64%), thermal (23%) and geothermal (13%) sources.

for power consumers. The Board also enforces environ-

The demand for electricity in Kenya stands at around 825

mental and safety regulations in the sub-sector, lastly

megawatt (MW). However, the country has a generating

independent power producers (IPPs) who are private

capacity of more than 1,200MW inclusive of the 30MW

investors who generate power.

imported from Uganda every year. Whereas the total national generation capacity is meeAs part of the restructuring process of the electricity sub-

ting the local demand, the price of electricity has

sector, the Electric Power Act of 1997 established the

remained high and fluctuating, dependent on the wea-

separation of the generation function from the transmis-

ther and oil price on the international market. The retail

sion and distribution functions. Under the reorganised set

price of electricity in Kenya has remained high compared

up, Kenya Electricity Generating Company (KenGen) is

with neighbouring countries. However, the new Bulk

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eBizguides Kenya

ENERGY

Power Purchase Agreement negotiated between KPLC and KenGen, resulted in a KSHS0.60 reduction of the

HYDROPOWER

average KenGen tariff from KSH2.36 per kWh to KSHS Hydropower is the leading source of power in Kenya. KenGen

1.76 per kWh.

has an installed capacity of 677.3MW (73% of the companyâ&#x20AC;&#x2122;s With only 10% of the population linked to the electricity

installed capacity), located mainly on the Tana River. Turkwel

supply network, most non-commercial users are still

Hydropower station (105MW) generates 20% of the national

without power. The government has started unbundling

electricity supply. The major hydroelectric power stations are

the electricity sector, with KPLC currently undergoing

the Seven Fork hydro stations (on the lower part of Tana River)

corporate restructuring with a view to privatising it over

including Masinga (40MW), Kamburu (94.2MW), Gitaru

the medium term and ending its public monopoly over

(225MW), Kindaruma (44MW) and Kiambere (144MW).

the distribution of electricity. Sondu-Miriu, with an expected output capacity of 60MW, is under construction and expected to be commissioned by 2006.

Cyclone separator in Olkaria I geothermal power station

ENERGY

eBizguides Kenya

THERMAL The biggest thermal power stations are optimally located in Mombasa. Kipevu thermal power station, one of the projects in the Least Cost Development Plan, was commissioned in 1955 with two steam units. The station expanded gradually with five more units installed between 1961 and 1976. Currently, five units have been retired due to aging.

GEOTHERMAL Geothermal production began in Kenya at Olkaria with commissioning of the first 15MW generating unit in June 1981 and the second 15MWs in November 1982. The third unit was commissioned in March 1985 raising the

Geothermal well linked to the cyclone separator

eBizguides Kenya

ENERGY petroleum products for its local consumption (4% of the GDP is spent in the importation of petroleum products). The demand for petroleum is projected to growth by 3–5% annually, and petroleum prices remain the major drivers of the country’s inflation. High international oil prices prevailing in the year 2004 have led to lower consumption of domestic energy. Overall consumption in the country declined by 6.1% from 2.7 million tons of oil equivalent in 2002 to 2.5 million tons in 2003 (Economic Survey 2004). The imported crude petroleum is processed at the Kenya Petroleum Refineries owned by the government (50%) and thereafter sold into the local market. The oil pipeline of 890km, owned by the government, provides a network into the interior of Kenya passing through Nairobi and leading westwards to Kisumu and

total installed capacity at Olkaria 1 to 45MW.

Eldoret. The other geothermal generation capacities are Olkaria II, which is currently producing 70MW. An additional unit

The marketing and distribution of oil products is orga-

of 35MW will be installed in Olkaria II to optimise use of

nised through several petroleum companies, five of

Olkaria I and II steam fields. The unit is expected to be

which are affiliated to multinational oil companies, by far

commissioned by the end of 2007. Olkaria III, which is

the largest players in the sub-sector despite the liberalisa-

owned by an IPP, is currently producing 12MW though

tion of the industry, which allowed more players to enter

plans are under way to increase its production to 48MW.

the market. Shell/BP is the market leader in almost all the

However, it is estimated that Kenya’s rift valley geo-

products with an average share of 25%. The numerous

thermal field has the potential to support electric power

small size players account for one-third of the market

generation of over 2,000MW of electricity.

share.

This clean energy is expected to replace fuel oil based

Before the liberalisation of the sector, the importation of

conventional thermal plants. By 2017, Kenya plans to

refined petroleum was subject to government approval.

generate 25% of its electricity from geothermal energy.

Since 1994, the procurement, distribution and pricing of petroleum products have been liberalised with a view to

PETROLEUM

enhancing operational efficiency of the industry and also attracting private capital.

Petroleum is the major source of commercial energy in the country providing about 80% of the country’s requi-

Since liberalisation, many new companies have been

rements. Petroleum provides approximately 67% of the

licensed by the government to engage in petroleum tra-

industrial and commercial energy needs in Kenya: the

ding, especially import and export, wholesale and retail

transport sector consumes more than half of the petro-

of petroleum products. Currently, ten new entrants are

leum fuels used in the country, and the industry con-

actively trading with a dismal market presence of less

sumes some 31% of petroleum fuels. The country is

than 10% of the market share due to tariff and non-tariff

highly dependent on imported crude oil and refined

barriers to entry. The Restrictive Trade Practices,

127

ENERGY

eBizguides Kenya

Monopolies and Price Control Act needs to be reviewed to

Lamu basin along the coast. Some 128,864 square kilome-

enable the Monopolies Commission to curb uncompetitive

tres of land within the basin have been demarcated into 12

trade practices in the petroleum sector. There is a need to

blocks for exploration purposes.

institutionalise functions of the free market to promote standards and effective regulation in the petroleum industry.

GAS

OIL EXPLORATION

The use of LPG is mainly used in homes and not in industry, but its use is growing rapidly in Kenya with recent increases

There is renewed interest in oil exploration in Kenya, amid

of 6% per year in urban areas. Distribution outlets and

reports that oil could be struck in the Lamu Basin. An official

mechanisms have expanded, including petrol stations,

of an Australian company which is exploring was confident

supermarkets and other agencies and distributors. Recently,

that Kenya could hit oil and gas reserves on the north coast

Baby Meko (3kg) and Nova (4kg) bottles have become avai-

after rock analysis gave positive indication of its presence.

lable, which together with savings and credit facilities are increasingly accessible for low-income families in urban and

The government has given the greenlight to two interna-

some rural areas.

tional prospectors to start petroleum exploration in the Kenol petrol station in Nairobi

eBizguides Kenya

ENERGY

FURTHER DEVELOPMENTS

NEW DEVELOPMENTS Kenya is working to develop further cross-border inter-

LEAST COST DEVELOPMENT PLAN

connectivity, with Tanzania and with South African Power Pool, and seeks to upgrade the link between Kenya and Uganda to enable access to more power from

Kenya maintains a power sector least-cost planning

Uganda.

system, which has a 20-year horizon. The planning process involves examining all available resources, conside-

Kenya is promoting energy substitution in terms of wind

ring their financial, technical, environmental and social

and solar energy. In addition, a fast-tracking coal explo-

merits, and ranks alternatives, primarily according to

ration programme in the Mui Basin of Mwingi and Kitui

cost-benefit. The plan is updated annually at KPLC. It is a

districts is aimed at identifying alternative energy sources

priority to develop indigenous sources of power.

within Kenya. The resource will be used in substituting for oil in local industries. The Ministry has also enhanced

Kenya is promoting additional geothermal power, and

the exploration for fossil fuels particularly hydrocarbons

plans to commission at least six geothermal power plants,

through sub-division of exploration acreage into smaller

with a combined capacity of 3,894MW, by 2006. By

blocks and collection of additional geological data to

2017, Kenya plans to generate 25% of its electricity from

attract more oil prospecting companies, while developing

geothermal energy.

small-scale indigenous energy resources to meet the needs of consumers and local communities.

The government has also identified the northern Kenyan town of Marsabit as a potential instal wind-powered

Kenya is also working on the extension of the Pipeline to

electricity generation site, which would add 4,400MW to

Kampala, at a cost of US$100 million. An LPG bulk

the national grid.

import handling and storage facility in Mombasa will be constructed and associated facilities upcountry on a fast-

ENERGY SECTOR RECOVERY PROJECT

track basis as well as standardisation of the LPG valves and regulators. While in Nairobi the Arusha Power interconnector will finally be connected to the SAPP at a cost

The Energy Sector Recovery Project, which was esta-

of US$80 million.

blished in July 2004 with the World Bank, aims to enhance the policy, institutional and regulatory environ-

MAIN COMPANIES

ment for private sector participation and sector development. It will do this by supporting efficient expansion of

CALTEX OIL (K) LTD

power generation capacity to meet the economyâ&#x20AC;&#x2122;s projected supply deficits by 2006/07, and by increasing

Mr Raymond Ndieffe

access to electricity in urban, semi-urban and rural areas,

Regional Manager

while improving the efficiency, reliability and quality of

Caltex Plaza, Limuru Road

electricity services to current consumers. The main deve-

P.O. Box 30061, 00100 Nairobi

lopment objective is to support investments needed to

Tel: +254-20-3668350

improve the quality and efficiency of power system ope-

Fax: +254-20-3668396

rations; meet power demand through implementation of

Email: nnmaina@chevrontexaco.com

economic options; and improve access to electricity to

Website: www.chevrontexaco.com

the urban poor. The project has an estimated financing cost of US$242.4 million.

Caltex Oil (K) Ltd was established in 1932 when Texas Company (SA) Ltd commissioned the Mombasa Terminal.

129

ENERGY

eBizguides Kenya

In 1940, the Texas Company (SA) Ltd changed into Caltex

Southern Africa. Petronas and Sasol will each have a

Africa (SA) Ltd and in 1961 Caltex Oil was officially incor-

37.5% interest and BEE partners will hold a combined

porated and registered in Kenya as a 50–50 joint venture

25% interest.

between Chevron Corporation and Texaco. From the merger of Chevron and Texaco in 2001, Caltex became a

The core business of the company is the refining of crude

wholly owned regional subsidiary of ChevronTexaco, a

oil, the marketing of primary refined petroleum products

leader in the global integrated energy business and active

and the provision of convenience services through its

in more than 180 countries.

retail network of over 1,250 service stations and 450 Quickshops. Engen Petroleum Ltd owns and manages a

Caltex Oil (K) Ltd offers a full range of products including

135,000 barrel per day crude oil refinery and a state-of-

unleaded and leaded fuels, diesel, kerosene, liquid petro-

the-art lubricants blending plant in Durban.

leum gas (LPG), and quality oils under various brands names such as Havoline and Delo. Caltex Oil has refining

Engen Holdings Ltd is the holding company for opera-

and manufacturing interests with Kenya Petroleum

tions conducted outside South Africa in 13 countries

Refinery Ltd, Mombasa and a lubricants blending plant

including Botswana, Burundi, the Democratic Republic of

based at the Caltex Deport in Mombasa.

the Congo, Ghana, Kenya, Lesotho, Mozambique, Namibia, Swaziland, Tanzania, Uganda, Zambia and

In order to remain a leading energy company, Caltex is

Zimbabwe.

committed to delivering high-quality products in a socially responsible and ethical manner. As part of its cor-

Engen Kenya Ltd has been operating in both the retail

porate social responsibility, the company has adopted a

and the consumer markets since 1994. Following the

policy to protect the safety and health of people and

deregulation of the petroleum pricing in 1994, Kenya has

environment and has developed a health, environment

become a very competitive market and Engen Kenya Ltd

and safety policy that enables the assessment and mana-

is striving to be recognised by its customers and business

gement of risks posed to employees, contractors, the

partners as the preferred supplier. Engen products and

public and the environment within a certain framework.

services always conform to the best international practices of health, safety, environment and quality stan-

ENGEN KENYA LTD

dards.

Mr Thierry Marmouget

Engen’s unique bitumen plant in Mombasa enables the

Managing Director

company to participate actively in the development of

4th floor, Victoria Towers Kilimanjaro, Upper Hill

Kenya’s road network, which has been identified as a

P.O. Box 10278, 00100 G.P.O. Nairobi

priority for the country’s economic recovery.

Tel: +254-20-2729195/2724414 Fax: +254-20-2715209

Engen has eight retail outlets in Nairobi, Mombasa and

Email: thierry.marmouget@engenke.com

Nakuru and is looking to expand its network in the

Website: www.engen.za

country. As the hub of East Africa, Kenya is a strategic base for Engen to expand to the Lake Region.

Engen is a South African based company, subsidiary of PETRONAS, the Malaysian Oil Company. Engen has deve-

“The new structure will gives us a new dynamic,

loped black economic empowerment (BEE) goals, and

new blood. We want to play in the big lead. Engen

20% of its shareholding was sold to Worldwide African

is the only African-based oil company with black

Investment Holdings (Pty) Ltd (Worldwide). In 2004,

empowerment. Engen, Proudly African.”

Petronas signed agreements with Sasol Ltd to combine

Mr Thierry Marmouget

their respective downstream and liquid fuels interests in

Managing Director

130

eBizguides Kenya

ENERGY

KENYA ELECTRICITY GENERATING COMPANY (KENGEN)

Kamburu (94MW), Kindaruma (44MW) and Kiambere (144MW). The Sondu Miriu hydro power project has been commissioned and should be operational in 2006.

Mr Edward Ngoroge Managing Director

KenGen also produces electricity through diesel thermal

Stima Plaza Phase III, Kolobot Road, Parklands

power plants. Kipevu I diesel plant has a capacity of

P.O. Box 47936, Nairobi

73MW. Two gas turbines have been installed at Kipevu

Tel: +254-20-3666000/3741190

with a total capacity of 63MW.

Fax: +254-20-248848

KenGen owns two geothermal power plants, Olkaria I

Email: comms@kengen.co.ke

and Olkaria II in Naivasha. Currently, the Olkaria

Website: www.kengen.co.ke

Geothermal Power stations have a combined generation capacity of 115MW with more than 50 wells drilled.

In 1997, as a direct result of the new reforms being

Projects on track are the implementation for both Olkaria

undertaken in the energy sector, the generation function

third unit.

was separated from the transmission and distribution functions and the management of Kenya Power

Kenya has a potential of over 2,000MW geothermal

Company was separated from Kenya Power and Lighting

energy resource located in various sites within the Rift

Company. In 1998, Kenya Power Company was re-laun-

Valley. This clean energy is expected to replace fuel oil

ched under a new name and corporate identity, The

based conventional thermal plants. By 2017, Kenya plans

Kenya Electricity Generating Company Ltd, KenGen.

to generate 25% of its electricity from geothermal energy.

Under the reorganised set up, Kenya Power and Lighting Company (KPLC) is responsible for the transmission and

The company has engaged in ISO 9001 certification and

distribution

in 2005, the state-owned company should sell 30% of is

electricity,

and

Kenya

Electricity

Generating Company (KenGen) is responsible for the

stake on the NSE through an IPO.

generation of electricity through hydropower (64%), thermal power (23%) and geothermal power stations

KOBIL PETROLEUM LTD / KENOL

(13%). Mr Jacob Segman KenGen is in direct competition with four independent

Managing Director

power producers, and supplies about 80% of the power

ICEA Building, Kenyatta Avenue

available on the national grid through KPLC. With

P.O. Box 44202, Nairobi

decades of experience and a well-trained staff of over

Tel: +254-20-249342

1,500 people, KenGen intends to maintain leadership in

Fax: +254-20-230967

the liberalised electric energy sub-sector in Kenya and the

Email: kenkob@kenkob.co.ke

Eastern Africa Region.

Website: www.kenolkobil.com

Power generated from hydro sources currently forms

Kobil Petroleum Ltd (Kobil) is a locally incorporated com-

72.3% of the total electricity output. The companyâ&#x20AC;&#x2122;s

pany established in 1984 after the acquisition of the

hydropower stations have a total installed capacity of

assets of the then Mobil Oil in Kenya.

677.3 megawatts (MW). The power stations comprise the Seven Forks hydro stations, the mini hydro stations and

In 1987, Kobil entered a Joint Management Agreement

Turkwel Power Station which produces 20% of the elec-

with Kenya Oil Company (Kenol). Kenol and Kobil trade

tricity supply of the country (106MW).

under their individual brand names, and their overhead

The Company also operates hydropower stations in

costs are shared.

131

ENERGY

eBizguides Kenya

The two companies market white and black oils, lubri-

Kobil–Kenol has a wide retail network of over 200 service

cants, LPG and other specialised petroleum-related pro-

stations and employ a direct joint workforce of 400

ducts. Kenol and Kobil are major suppliers of aviation gas

employees.

to various international airlines, through re-fuelling facilities at the Jomo Kenyatta International Airport in Nairobi

The company has expanded rapidly into the East and

and the Moi International Airport in Mombasa.

Central Africa region, after the successful establishment of subsidiaries in Rwanda, Uganda, Tanzania and Zambia.

The companies have oil processing agreements with the

The expansion plan has influenced very positive growth

Kenya Petroleum Refineries Limited (KPRL) for the refi-

for the company.

ning of their products. Kobil Petroleum Ltd has recently developed a new busiKobil–Kenol’s operations in Kenya have attained ISO

ness line, the African Trading Desk, to supplement dwin-

9001:2000 quality management system for refining,

dling inland volumes and establish markets within African

blending, storage, distribution and marketing of petro-

countries, especially those that have no refining facilities

leum products, lubricants and special products processes.

for petroleum products. The market includes Angola, Ethiopia, Malawi, Mauritius, Mozambique, Namibia and

Geothermal well in OlkariaI power station

eBizguides Kenya

ENERGY

Sudan. The African Trading Desk (ATD) trades bulk with

In 2004, the Company recorded remarkable performance

governments and other bulk suppliers. The establishment

with profits exceeding the state corporation’s target of

of the ATD has increased the volumes, as the company’s

KSH1 billion. The company recorded 10.3% overall

Trading Desk moves over 2 million cubic metres of petro-

growth during the period. It transported 855 million litres

leum products per year.

of petroleum products through its pipeline, against a targeted 816 million. The growth results from the additional

KENYA PIPELINE COMPANY (KPC)

booster pump station at Morendat, on the line between Nairobi and western Kenya.

Mr George Okungu

THE KENYA POWER AND LIGHTING COMPANY (KPLC)

Managing Director P.O. Box 73442, 00200 Nairobi Tel: +254-20-342160/1 Fax: +254-20-342107

Eng. Jasper Oduor

Email: sylvia.Mwichuli@kpc.co.ke

Managing Director

Website: www.kenyapipeline.com

Central Office Stima Plaza, Kolobot Road, Parklands P.O. Box 30099 Nairobi 00100

The Kenya Pipeline Company Ltd (KPC) was established

Tel: +254-20-32013201, 3644000

25 years ago as a parastatal company, with the core

Fax: +254-20-310336

mandate of storing and transporting petroleum products

Email: comms@kplc.co.ke

including motor spirit premium, motor spirit regular,

Website: www.kplc.co.ke

automotive gas oil, illuminating kerosene and aviation jet turbine fuel, through the pipeline system from Mombasa

The Kenya Power and Lighting Company is a limited lia-

to the hinterland for distribution to the end users

bility company responsible for the transmission, distribu-

through oil marketing companies within Kenya and

tion and retail of electricity throughout Kenya. KPLC

beyond.

owns and operates the national transmission and distribution grid, and is responsible for the scheduling and dis-

The company operates a pipeline network covering 896

patch of electricity to more than 700,000 customers

kilometres and has major storage facilities in Eldoret,

throughout Kenya.

Kisumu, Nairobi and Nakuru. Plans are at an advanced stage to extend the pipeline to Kampala in Uganda. To

Since 1997, Kenya’s power sector has gone through a

cope with the rising demands, KPC has upgraded its sto-

major restructuring and the functions of generation have

rage facility at Kipevu, Mombasa.

been split from transmission and distribution: KenGen manages and develops all public power electricity gene-

In addition, KPC has installed an additional pump station

rating facilities and sells electricity in bulk to KPLC. KPLC,

on its Western pipeline to increase pumping capacity

which owns all transmission and distribution assets, buys

from 160 cubic metres to 220 cubic metres per hour. It

electricity in bulk from generating companies (KenGen

has also planned to install additional pump stations along

and Independent Power Producers) for transmission, dis-

the Mombasa–Nairobi line that will double the flow rate

tribution and retail to customers. This electricity is gene-

from the current 400 cubic metres to 800 cubic metres

rated from hydro-power, gas/diesel, geothermal (steam)

per hour.

and wind sources. The demand for electricity in Kenya stands at around 885MW. However, the country has an

In 1999 KPC established an environmental health and

installed generating capacity of 1,083MW.

safety (EHS) policy to guide the implementation of environmental, health and safety issues to comply with appli-

In the past years, the company had to face numerous

cable EHS standards, rules and regulations.

challenges including inadequate energy supply capacity,

133

ENERGY

eBizguides Kenya

declining sales and trading margin, high bulk power

keter, and provides 60% of the countryâ&#x20AC;&#x2122;s demand for

tariffs, high power system losses and heavy operational

LPG, most of the fuel oil (except for low sulphur fuel),

costs.

and 65% of the countryâ&#x20AC;&#x2122;s demand for motor gasoline, kerosene and diesel fuel. The balance is imported by the

In continuation of recovery and performance improve-

oil marketers.

ment initiatives, KPLC has implemented a five-year strategy to achieve world class performance. The plan aims

In the period following the deregulation of the sector,

tp improve the transmission and distribution system effi-

the operational performance of the company declined

ciency to reach an optimal technical level above 85%,

and product yields did not match basic data. In 1997, the

increasing the supply availability and reliability to 98%,

company launched a programme to improve its perfor-

and lowering the distribution line breakdowns to fewer

mance. Significant improvements have been achieved in

than three per customer per month.

terms of reliability and safety, and costs have been tightly managed enabling the refinery to maintain a constant

KPLC is also in the process of restructuring organisational

processing fee despite the inflation. In 2004, the upgra-

and business processes and renegotiating bulk power

ding of the catalysts has been completed to increase the

tariffs with suppliers; the new Bulk Power Purchase

octane number of the heavier components.

Agreement negotiated between KPLC and KenGen, resulted in a KHS0.60 reduction of the average KenGen

Current initiatives include the construction of fuel oil loa-

tariff from KSH2.36 per kWh to KSH1.76 per kWh.

ding facilities in the refinery to enable distribution to marketers without their own terminal. KPRL is currently invi-

The Company maintains a policy commitment of integra-

ting competitive bids from consultants to carry out the

ting environmental and social considerations into its

design for extension of the refinery LPG storage to 8,000

general business and that its business is conducted in

cubic meters capacity and a pipeline to a new loading

compliance with Kenyan legislation on environmental

arm on the Kipievu jetty in the port. This project will

protection applicable to World Bank guidelines.

enable the importation of larger parcels of LPG contributing to higher availability and lower supply cost for LPG.

KENYA PETROLEUM REFINERIES LTD (KPRL)

With the need to introduce unleaded gasoline and the move toward lower sulphur diesel fuel, investments are

Mr Chris House

required to meet the new specifications. It has become

Managing Director

difficult for the refinery to compete with prices of

Refinery Road, Mombasa

imported products. In addition to investments required

P.O. Box 90401, Mombasa.

for cleaner fuels the refinery is simultaneously processing

Tel: +254-41-433511

a proposal to upgrade its facilities. The project includes

Fax: +254-41-432603

the construction of a gas turbine, additional LPG storage,

Email: Odhiambo.Ooko@kprl.co.ke

water treating facilities, and a desulphurisation unit. As a

Website: www.kplc.co.ke

result of the investment, the refinery will be able to produce 93 octane unleaded gasoline, and diesel oil with a

Kenya Petroleum Refineries is jointly owned by the

sulphur level of 0.05% weight. The company will be in a

government (50%) and BP, ChevronTexaco and Shell,

better position to compete with imported products.

and operates the refinery situated in Mombasa.

Foster Wheeler Energy Ltd has been contracted to carry out an analysis of the refinery to identify the optimum

KPRL provides crude oil processing and product storage

investments. The project should be completed by 2009.

services for oil marketers. The company processes about 1.6 million tons of crude oil per annum for 20 oil mar-

134

eBizguides Kenya

MOBIL OIL KENYA

ENERGY With a strong brand name, Mobil is renowned for the quality of its products and services. However, what really makes

Mr Robert Paterson

Mobil successful is the unique offer of fast-food chains and

Managing Director

convenient stores associated to the stations. Mobil is affi-

Mobil Plaza, 2nd Floor, Muthaiga Road

liated to the very well-known fast food chain Nandos, Pizza

P.O. Box 64900, Nairobi

Inn, Chicken Inn and Creamy Inn and has been working on

Tel: +254-20-3622000

“creating a retail station as a destination”. The company has

Fax: +254-20-767575

been very successful in creating a customer habit and

Email: robert.d.paterson@exxonmobil.com

addressing the sophisticated Kenyan market, as the average

Website: www.exxonmobil.com

Mobil customer pays three visits per week to the station.

Mobil has been operating in East Africa since the 1980s. In

Over the years, Mobil has been committed to a number of

1997, Mobil purchased Esso’s Kenyan operations. With 73

corporate social responsibility programmes. The company is

service stations across the country and over 200 employees,

committed in the Mukuru Promotion Center. The company

Mobil Kenya is the second market leader in Kenya, with a

supports the construction of schools, libraries, and sponsors

market share of 17%.

high school and university students.

The company has a strong focus on the retail market and aims at reaching the number one position on the retail sale segment. KPLC is responsible for the transmission, distribution and retail of electricity in Kenya (Min En)

ENERGY

eBizguides Kenya

NATIONAL OIL CORPORATION OF KENYA (NOCK)

offers a comprehensive range of car motor oils, heavy duty diesel engine oils, two stroke engine oils, tractor oils, automotive gear and transmission fluids, superior hydraulic oils,

Mrs Mary Kimotho Mâ&#x20AC;&#x2122;Mukindia

greases and industrial lubricants through its recently con-

Managing Director

cluded lubricants strategic alliance with ChevronTexaco.

Kapiti Rd, off Mombasa Rd

PETROLEUM INSTITUTE OF EAST AFRICA (PIEA)

P.O. Box 30120, Nairobi Tel: +254-20-608070 Fax: +254-20-606596 Email: mdnock@nockenya.co.ke

Mr George M. Wachira

Website: www.nockenya.co.ke

General Manager Bruce House 4th floor, Standard Street, Nairobi

National Oil Corporation is a wholly owned state corpora-

P.O. Box 8936, 00200 Nairobi

tion incorporated in 1981 to coordinate oil exploration acti-

Tel: +254-20-249081/313046

vities in Kenya and to undertake the caretaker role among

Fax: +254-20-313048

the oil marketing companies on behalf of the government.

Email: gmp@petroleum.co.ke Website: www.petroleum.co.ke

Although there have been no recent oil discoveries in Kenya, one of the main activities of the corporation is oil explora-

The petroleum institute of East Africa was established in

tion. NOCK has the best oil exploration laboratory in the

1999 by companies, agencies and individuals with direct or

region and many of the surrounding countries send their

indirect involvement and interest in the oil sector. The crea-

data to be analysed.

tion of the Institute followed the liberalisation of the oil sector in 1994, which created a need for self-regulation ins-

NOCK is offering petroleum exploration and investment

titution so as to maintain a free and competitive oil market.

opportunities to international companies who wish to

PIEA is a technical, non-partisan, non-profit member organi-

explore for hydrocarbons. Kenya has four sedimentary

sation of the oil and gas industry in East Africa, focusing on

basins namely Lamu, Anza, Mandera and Tertiary Rift basins.

legislation, standards, and policies affecting the industry.

Currently exploration activity is concentrated in offshore PIEA counts over 50 members across East Africa, and orga-

Kenya where drilling is expected in late 2005/early 2006.

nises technical meetings, conferences, workshops and make National Oil was originally mandated to supply 30% of the

available technical and non-technical materials.

countryâ&#x20AC;&#x2122;s crude petroleum requirements but this role ceased

The Institute offers comprehensive training programmes:

in 1994 when the country de-regulated the oil sector.

From a basic petroleum course to environmental health and

Currently, in the downstream sector, the corporation ope-

safety administration and professional development needs,

rates like any other oil company acquiring products through

PIEA provide members and non-members with a compre-

the oil tender system (OTS). National Oil is competing with

hensive array of targeted local and international courses.

the other oil marketers in supplying local bulk petroleum products in the retail, reseller and consumer market seg-

The Institute also organises monthly informal talk forums

ments.

lead by expatriates, and experts on the issues under discussion, as well as quarterly forums on general economical

In 1996, National Oil embarked on a major project of esta-

issues.

blishing a service station network around the country.

Last but not least, the Institute publishes material to guide

Today, National Oil Corporation has six fully operational ser-

the industry on a number of sectoral issues: Petroleum

vice stations in Eldoret, Kisumu, Nairobi, Nakuru and Sotik,

Insight is distributed free of charge quarterly and books on

with plans for expansion to other areas. The corporation

petroleum sub topics are also on sale.

136

eBizguides Kenya

ENERGY

SHELL KENYA LTD

of the four independent power producers in Kenya. Caltex Oil was awarded a five-year contract for the supply of fuel.

Dr Ian Geoffrey Bromilow Country Chairman, Managing Director

Tsavo Power Company operates the Kipevu II diesel power

Shell and BP House, Harambee Avenue

plant set in Mombasa. The power station entered commer-

P.O. Box 43561, 00100 Nairobi

cial operation in 2001 with an ISO 14000 compliant system.

Tel: +254-20-210722/229222

The 74MW station has increased thermal generation capa-

Fax: +254-20-338173

city of Kenya by almost 25%, injecting a much needed

Email: shellkenya@ksl.shell.com

stable source of energy into the national power grid.

Website: www.shell.com The power plant is modelled on the Wartsila Power Master Shell was established in Kenya in 1900 with operations in

system, and operated on a fully computerised, highly effi-

Mombasa. In 1961 operations were taken over by newly

cient turn-key power plant with low maintenance require-

formed companies namely, Kenya Shell Ltd and BP Kenya

ments, low fuel consumption, low emissions and a proven

Ltd on 50–50 ownership under the management of Kenya

long-term reliability track record. The plant is the first to be

Shell Ltd.

constructed and operated under Kenya’s new environmental legislation. The station reduces Kenya’s reliance on

Kenya Shell Ltd owns two large terminals in Mombasa and

hydro-electricity and alleviates its vulnerability to drought

Nairobi, a depot in Kisumu as well as an oil blending plant

and adverse weather conditions. TPC brings to Kenya some

in Mombasa. Kenya Shell owns aviation sites at Jomo

of the worl’s leading technological expertise in the provision

Kenyatta International Airport, Moi International Airport

of power solutions.

Mombasa, Wilson Airport, Moi Air Base Eastleigh, Malindi Airport, Kisumu Airport and Eldoret Airport.

The power purchase agreement signed between the IPP Tsavo Power Company and KPLC has a term of 20 years

With a market share of 22%, Kenya Shell Ltd is the leading

with no government guarantee, setting a benchmark for

supplier of the manufacturing and agricultural sector and

future IPPs. Kipevu II Power Plant represents Kenya’s first

the leading distributor of lubricants and LPG. The company

openly bid private venture independent Power Producer

also supplies aviation fuels, marine fuels and oils as well as

financed on a non-recourse basis. This US$86 million project

bitumen products in Kenya.

represents one of the largest single direct foreign investments into Kenya, demonstrating a promising high level of

TSAVO POWER COMPANY (TPC)

international business confidence.

Mr Michael R. Fox Chief Executive Officer 13th floor, Nation Center Kimathi Street P.O. Box 10727, 00100 Nairobi Tel: +254-20 318969/70 Fax: +254-20-214598 Email: ceo@tsavopower.com Tsavo Power Company was established in 1998 as a specialpurpose corporate entity, following the creation of a consortium of international investors to provide debt and equity financing for development of the project. TPC signed the power purchase agreement with KPLC and is counted one

137

ENERGY

eBizguides Kenya

138

F I N A N C E

â&#x20AC;&#x153;A thousand, begins at oneâ&#x20AC;? Kenyan proverb

139

FINANCE

eBizguides Kenya Africa. The country boasts an extensive network of com-

OVERVIEW

mercial banks, both locally and foreign-owned, serving most of Kenya’s urban areas; as a result many Kenyans

Kenya’s basic unit of currency is the Kenyan shilling

are comfortable with and knowledgeable of bank instru-

(KSH). All currency is issued by the Central Bank of

ments, thus reducing the country’s total dependence on

Kenya, which was established in Nairobi in 1966. The

coins and notes.

average exchange rate for December 2004 was KSH77.34 to US$1. Kenya has long possessed the largest and most technically advanced financial system in East I&M Bank Tower in Nairobi

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THE KENYAN BANKING SYSTEM Kenya has one of the most developed banking industries in Africa, which it inherited at independence. This consisted of a currency board, a commercial banking system wholly dominated by two major British banks, a Post Office Saving Bank and a small number of non-bank financial institutions (NBFIs) providing mortgage finance, insurance and other near-bank financial services. Since then the sector has become substantial, sophisticated and complex. Recent years have witnessed a restructuNairobi Stock Exchange is a hive of activity

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ring of the sector through liquidations and mergers

sector is essentially dominated by four major commercial

brought about by a declining client base and non-perfor-

banks. However, the NBFIs have recently exhibited an abi-

ming loans as well as overall poor management of small,

lity to compete with the commercial banks, due to the

indigenous banks. Today the sector comprises:

less restrictive regulatory framework within which they operate. On paper, the NBFIs were to operate as mer-

• The Central Bank of Kenya (CBK)

chant or investment banks, but in June 1994, the Central

• 43 domestic and foreign commercial banks with bran-

Bank instructed the NBFIs to operate as commercial

ches, agencies and other outlets throughout the country NBFIs with an excellent branch network in Kenya’s major cities • 4 building societies • 42 insurance companies • 2 mortgage finance companies • the Post Office Savings Bank, which has a large network of branches around the country • 48 forex bureaus • over 1,500 savings and credit unions. In spite of the number of established banks, the banking

Financial Centre of Kenya

eBizguides Kenya

FINANCE

banks taking deposits and making short-term loans. So

There is a need to stimulate local and foreign investor

far, 27 NBFIs have become banks and 20 merged with

confidence following four years of low growth, a banking

parent commercial banks. Kenya, already a regional

system weakened by nonperforming loans, and a difficult

leader, is expected to develop one of the largest commer-

fiscal position that was putting pressure on monetary

cial banking industries in Africa. The financial services

policy to provide the necessary stability via the mainte-

sector has proved that it will remain competitive in the

nance of relatively high real domestic interest rates that

future, as consumers are becoming more demanding and

crowds out private sector borrowing. This has recently

sophisticated.

forced the government to undertake serious liberalisation and infrastructure adjustments in order to give some

MONETARY POLICY

impetus to economic development and financial stability. There is some evidence that these measures have stimu-

The government has achieved a measure of macroeco-

lated a positive change in terms of economic growth,

nomic stability, with subdued inflation and a relatively

financial management, and the well-being of the society

stable exchange rate with an aim of inflation rates below

as a whole.

5%. To achieve this target, broad money growth is targeted to increase at an annual average rate of about 8% between 2005/06 and 2007/08. This will be achieved through the use of indirect monetary instruments targeted at containing the growth of reserve money at about 6.5% a year over the same period. Kenyatta Avenue is the heart of the city centre

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INTEREST RATES

CAPITAL MARKETS Short-term interest rates generally increased during 2004 as tighter fiscal conditions continued to determine mone-

The Nairobi Stock Exchange (NSE) is the only licensed tra-

tary conditions. The yield on the 91-day Treasury Bill tou-

ding exchange in the country. The NSE originally started

ched 8.65% during December 2004 (its highest level

as a private association, but is now a fully fledged stock

since mid 2002) from 1.5% in January, while the inter-

market. In 2005 there are 51 companies listed. The stock

bank lending rate rose to 10.92% from 1.2%. The com-

market is a major component of the capital market. It has

mercial bank lending rate declined marginally to 12.21%

been proven that stock market development causes eco-

in November 2004 from 13.74% in December 2003, with

nomic growth and vice versa. The NSE is an important

the spread between lending and deposit rates at 10.9

component of the capital market in Kenya, as provides a

percentage points from 12.4 percentage points. The

useful environment for domestic resource mobilisation

increase in short-term interest rates occurred during the

and allocation.

fourth quarter as higher government domestic borrowing and inflation exerted upward pressure. Expanding private

The industry regulator is the Capital Markets Authority.

sector demand for credit, increased demand for liquidity

The mission of the Capital Markets Authority is to pro-

in the domestic financial market as well as market expec-

mote the development of dynamic capital markets in

tations of higher interest rates also contributed.

Kenya within a framework that facilitates innovation through regulation for the maintenance of investor con-

EXCHANGE RATE POLICY AND RESERVE COVERAGE

fidence and safeguards the interest of all market partici-

The government will continue its policy of allowing the

The NSE is fully computerised and recently installed an

exchange rate to be market-determined. Central Bank of

electronic central depository system (CDS). This is a com-

Kenya interventions in the foreign exchange market will

puter system that facilitates the holding of securities in

be limited to smoothing short-term volatility, and achie-

electronic accounts, and the faster and easier processing

ving its target for net international reserves.

of transactions at the NSE. One does not have to wait for

pants.

the issue of certificates before trading again as the shares International reserves coverage is expected to remain

are credited to oneâ&#x20AC;&#x2122;s account five days after the date of

broadly unchanged in the medium-term at about three

trade.

months of the following yearâ&#x20AC;&#x2122;s forecast imports of goods and services. The current account deficit is projected to

The Central Depository and Settlement Corporation

widen from 2% of GDP in 2003/04 to 5.6% in 2006/07,

(CDSC) is an independent company that hosts the central

as import growth exceeds that of exports; the deficit is

depository system. Its mandate is to automate the Nairobi

projected to narrow thereafter to about 4% of GDP in

Stock Exchange through developing and implementing

2007/08. A more rapid expansion of exports can be

the organised registration and delivery of securities.

achieved provided that the implementation of the struc-

CDSC is an affiliate of the Nairobi Stock Exchange. This

tural reforms in support of enhanced international and

means that NSE and CDSC complement each other in

regional competitiveness is accelerated. The overall

terms of the nature of trading, registration and delivery

balance deficit is projected to be covered primarily by the

of the securities listed. However, the CDSC is run by an

rescheduling of debt service payments.

independent board of directors, and a separate management team. The NSE is represented in the board of the CDSC. The strengthening of the Capital Markets Authority, the exchange regulator, through revised legislation in 1994 and the June 1996 budget measures,

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helped in the growth of the exchange. With the right macroeconomic framework, it has the potential of joining the ranks of other strong emerging markets. Despite the existence of a relatively developed and sophis-

PROJECT FINANCING AND VENTURE CAPITALISM

ticated financial system, Kenya’s capital market is still in its infancy. Treasury bills and bonds dominate the market for

Each year Kenya receives significant project financing

short-term securities. There is relatively light trading in

assistance from donors. There are three sources of

commercial paper, and there now exists a secondary

external assistance: multilateral, bilateral and private

market in government and commercial paper.

voluntary organisations (PVOs). The first category can further be divided into United Nations organisations and

In 2003 the capital market experienced a burst of activity,

non-United Nations multilateral institutions. Bilateral

as there was improved performance at the Nairobi Stock

donors lead in providing project financing, followed by

Exchange (NSE) in all the key market indicators. These acti-

the multilaterals and PVOs. In 2002, external assistance

vities saw the NSE 20 share index double up to close at

to Kenya was estimated at $349 million, excluding PVOs.

2.738 points in December 2003, up from 1.363 points in December 2002. In December 2004 the NSE closed up

In December 1991, multilateral and bilateral donors tem-

again at 2.928 points. The market capitalisation also incre-

porarily suspended balance of payments assistance to

ased from KSH112 billion in December 2002 to KSH318

Kenya. However, there was no interruption of project

billion in December 2003, then down to KSH306 billion in

financing flows to Kenya as a large amount of aid goes

December 2004. The turnover also increased considerably.

to NGOs for projects, instead of directly to the govern-

The increased activity can be explained by improved

ment of Kenya for balance of payment support or for

investor optimism, and preferred capital gain return, rela-

government infrastructure projects.

tive to the falling risk free treasury bill rates (Economic The largest overall multilateral donor is the World Bank.

Survey, 2004).

The private lending arm of the World Bank Group,

INSURANCE INDUSTRY

International Finance Corporation (IFC), provides substantial amounts of finance to the private sector, particu-

In the 40 years since independence, Kenya’s insurance

larly those investments with a potential of generating

industry has flourished, and by 2003 had 41 registered

foreign exchange. The African Development Bank (AFDB)

insurers: 15 transacting general insurance business, two

and African Development Fund have not had their con-

transacting life businesses, while 24 were composite insu-

cessionary lending facility adequately replenished. Thus,

rers (transacting both life and general insurances). Other

the only AFDB funded projects were those already

insurance intermediaries include 187 licensed brokers,

funded and in the pipeline. It is anticipated that the AFDB

1,507 licensed insurance agencies and a number of loss

will recommence concessionary lending operations in the

assessors, risk surveyors, loss adjustors and risk managers.

near future. International firms also should examine the

Kenya’s insurance industry leads within the East African

possibility of using the private sector window established

community, and is a key player in the COMESA region. The

at the AFDB.

industry employs over 10,000 people, underwrites well over 300 million in premiums, and pays over 120 million

Entrepreneurs in Kenya are also supported by venture

per annum in claims. The largest ten insurers handle over

capital firms, which lend money for business ideas, after

70% of the motor business with a similar number handling

the presentation of business plans and proposals.

well over 90% of the property business in the market.The

Alongside these, there have emerged micro finance insti-

insurance industry has recorded an average growth of

tutions (MFIs), which are alternative financial intermedia-

8.6% in the last five years; this success has been attributed

ries that bridge the gap between the demand and supply

to the industry’s structure and competitiveness.

of financial services to the poor. To many beneficiaries,

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this industry is delivering concrete benefits in the form of

Website: www.britak.com

savings, credit and insurance services, leading to the formation of assets and increased incomes among the low-

British–American Insurance Company Kenya Ltd (Britak) is a

income earners and poor of Kenya. The government is in

member of the British–American group of companies

the process of preparing a Micro Finance Bill to provide a

founded in 1920. The company started its operations in

legal framework for regulation and supervision of micro

Kenya in 1965 and is today the fifth largest insurance com-

finance institutions.

pany and the largest for ordinary life insurance (25% market share).

NEW DEVELOPMENTS With turnover of KSH1.6 billion and over 600 employees, In 2004 the Capital Markets Authority continued to

Britak is one of the fastest-growing insurance companies in

implement its strategic plan for the period 2002–2005,

the Eastern Africa region. It is committed to providing its

which aims at broadening and deepening the equity

clients with the most modern, appropriate and competitive

market in Kenya, and in the region, to become a leading

products and prides itself on having one of the largest distri-

financial centre.

bution network in Kenya: 12 branches and over 500 career agents over the country. The company is also well known for

In the insurance industry, a sessional paper was intro-

its product range and its performance Internet based IT

duced in 2003 on universal healthcare for all Kenyans. It

system.

proposed the formation of a National Health Insurance Fund (NSHIF) and the bill was introduced in parliament,

British American Insurance benefits from a strong brand and

by the health minister the Hon. Mrs Charity Ngilu. It is yet

offers excellent financial security. The company has a

to be approved by the president, and has an estimated

number of major local companies and multinationals for

budget of KSH70 billion.

clients, including Kenya Airways, Magadi Soda.

There is greater corporate governance awareness in the

The company plans to expand regionally and diversify its

country, and dissemination of information is being

product range and has opened a sister company dedicated

carried out by the Kenya Centre for Corporate

to asset management.

Governance. The financial market has realised the need to promote corporate governance through the banking

CENTRAL BANK OF KENYA (CBK)

system, development finance institutions and private equity investment, as well as through the equity markets.

Dr Andrew Mullei Governor

MAIN COMPANIES

P.O. Box 60000, Nairobi Tel: +254-20-246000/226431

BRITISH AMERICAN INSURANCE COMPANY (KENYA) LTD

Fax: +254-20-2716556 Email: akmullei@centralbank.go.ke Website: www.centralbank.go.ke

Mr Ben I Wairegi Managing Director

The Central Bank of Kenya was established in 1966 through

Britak Center Junction of Mara and Ragati Roads,

an Act of Parliament, as a direct result of the desire among

Upper Hill

the three East African states to have independent monetary

P.O. Box 30375, 00100 Nairobi

and financial policies.

Tel: +254-20-2710927 Fax: +254-20-2717625

The first principal objective of CBK is to formulate and imple-

Email: bwairegi@britak.co.ke

ment monetary policy directed to achieving and maintaining

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FINANCE

stability of prices in order to foster economic growth. To

Last but not least, CBK holds official foreign exchange

maintain price stability, the Central Bank of Kenya operates

reserves of the country for the purposes of repaying and ser-

in a way that restricts the growth of the total money stock,

vicing the countryâ&#x20AC;&#x2122;s public external debt; and intervening in

through open market operations, discount window opera-

the interbank foreign exchange market to maintain the shi-

tions and reserve requirements.

lling exchange rate stability.

The second principal objective of the bank is to foster the

The Central Bank is required to support the general eco-

liquidity, solvency and proper functioning of a stable market

nomic policy of the government and to advise the govern-

based financial system. The CBK is responsible for formula-

ment on monetary and fiscal policy and other economic

ting and executing monetary policy, supervising and regula-

issues that may have important ramifications on the Bankâ&#x20AC;&#x2122;s

ting depository institutions, assisting the governmentâ&#x20AC;&#x2122;s

monetary policy. Since the amendment of the Central Bank

financing operations and serving as government banker.

of Kenya Act in April 1997, the Central Bank operations have been restructured to conform to ongoing economic

The Central Bank of Kenya is also entrusted with the

reforms, and the monetary autonomy of the bank has been

making, issuing and withdrawing worn out notes and coins

increased.

in Kenyan shillings. Since 2003 the Central Bank has implemented a complete The Central Bank provides commercial banks with clearing

overhaul of the operations of the currency department by

facilities, and supervises commercial banks in order to

equipping it with new technology. In 2005, the CBK will

ensure efficient and sound financial system in the interest of

launch the Central Bank Rate. The rate will be used to

depositors and the economy as a whole.

appropriately benchmark the structure of interest rates in

Dr Andrew K. Mullei, Governor of the Central Bank

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the economy. The establishment of a monetary policy advi-

CFC FINANCIAL SERVICES (CFCFS)

sory committee will then follow. Mr M. Soundararajan â&#x20AC;&#x153;I have confidence in Kenya. It is a lovely place, it is our pride. Kenya remains competitive and has a magnificent future.â&#x20AC;? Dr Andrew Mullei Governor

Managing Director CFC Centre, Chiromo Road, 00100 P.O. Box 44074, Nairobi Tel: +254-20-3741861/3752900/4 Fax: +254-20-3752900 Email: soundar@cfccgroup.co.ke Website: www.cfccgroup.co.ke CFC Financial Services Ltd (CFCFS), the first licensed Investment bank in Kenya, is focused on the provision of investment banking services and products to multinational subsidiaries, medium- to large-sized private-owned businesses, public sector entities, and international pla-

The Central Bank of Kenya

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FINANCE

yers seeking business opportunities in East Africa.

and acquisition transactions in Kenya – acquisition of

CFCFS is part of CFC Group including CFC Bank Ltd, and

ALICO Kenya Ltd by CFC Holdings Ltd, and the merger of

sister companies, The Heritage A.I.I. Insurance Company

the general insurance businesses of Pan Africa Insurance

Ltd and ALICO Kenya Ltd.

Holdings Ltd and Apollo Insurance Company Ltd to create APA Insurance Company Ltd.

CFCFS’s range of services can be categorised into five broad areas – corporate finance, structured finance, dea-

The Stock Broking Division, established in 2002, ranks

ling/market making, stock broking and fund manage-

amongst the top five stock broking operations. Since its

ment services.

inception, the division has traded over KSH5 billion on the Nairobi Stock Exchange and has played key

The Corporate Finance and Dealing Division has success-

advisory/sponsoring stockbroker roles for Kenya Airways,

fully arranged innovative and custom designed funding

Mabati

programmes in excess of KSH2.1 billion since its incep-

Newspapers Group, Mumias Sugar, Safaricom, Kenya

tion in 2000. The unit has also been the transaction

Commercial Bank, National Bank of Kenya and Express

advisor in connection with two major landmark merger

Kenya Ltd.

Rolling

Office of a large banking corporation in Nairobi

Mills,

CMC

Holdings,

Standard

FINANCE

eBizguides Kenya

CAPITAL MARKET AUTHORITY (CMA)

international practices and the creation of an integrated East African Capital market.

Mr Edward Ntalami Chief Executive Officer

In order to attract new companies on the capital market,

Reinsurance Plaza, Taifa Road, 00200

the Authority has developed a series of incentives for

P.O. Box 74800, Nairobi

newly listed companies such as lower taxes, reduced

Tel: +254-20-221910 / 221869

withholding tax on dividend income, tax deduction for

Fax: +254-20-228254

the expenses related to issuing shares, exemption of

Email: corporate@cma.or.ke

stamp duty charges, ten-year tax holiday for venture

Website: www.cma.or.ke

capital funds, increased investment ceiling, and so on.

The Capital Markets Authority (CMA) was established in

The Authority has also implemented attractive policy

1989 as a regulatory authority responsible for promoting

measures designed to attract foreign investors, who can

and facilitating development of capital markets in Kenya.

now acquire shares freely in the stock market subject to

The mission of the Authority is to promote the develop-

a minimum reserved ratio of 25% for domestic investors

ment of orderly, fair, efficient, secure, transparent and

in each listed company.

dynamic capital markets in Kenya within a framework which facilitates innovation through an effective but fle-

CO-OPERATIVE BANK OF KENYA LTD

xible system of regulation for the maintenance of investor confidence and safeguards the interest of all market par-

Mr Gideon Muriuki

ticipants.

Managing Director Bima House, Harambe Avenue

The Authority licenses or approves and regulates market

P.O. Box 53678, Nairobi

intermediaries including securities exchange, central

Tel: +254-20-32076100

depository and settlement system, investment banks,

Fax: +254-20-227746

stockbrokers, fund managers, investment advisers, stock

Email: coopbankmd@form-net.com

dealers, collective investment schemes, authorised depo-

Website: www.co-opbank.co.ke

sitories, venture capital funds and rating agencies. The Co-operative Bank of Kenya Ltd was established in The Authority also reviews existing policies and makes

1968 with a prime objective of being a specialist bank for

recommendations to the government on new policy

the cooperative movement in the country. The bank the-

issues that could promote and enhance capital market

refore filled a critical vacuum in the financial sector, and

development. CMA operates a compensation fund to

its impact on wealth generation and economic develop-

protect investors from financial loss arising from the fai-

ment in Kenya has been tremendous.

lure of a licensed broker or dealer to meet his contractual The bankâ&#x20AC;&#x2122;s focus is to provide banking services to the

obligations.

national market through the established and self In its pursuit to oversee sustainable development of

governed co-operative movement system. The coopera-

capital markets in Kenya, the Authority is aiming to bro-

tive movement in Kenya employs directly 5 million per-

aden and deepen the capital markets and making Kenya

sons and influences the life of over 20 million people. Co-

a leading financial centre in the region. The main focus is

operative Bank of Kenya is in a unique position where its

development of new financial products, modernisation of

biggest customer also happens to be the biggest share-

market infrastructure, strengthening institutional and

holder.

professional capacity of market players, establishment of a sound regulatory framework that conforms to best

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Over the years the bank has developed an innovative

network and advance technology, to guaranty sustai-

relationship based model where cooperative societies are

nable customer access.

facilitated to sell the bank services to their membership. Saving and credit companies (SACCOS) are now able to

DELOITTE

trade in bankersâ&#x20AC;&#x2122; cheques, unsecured personal loans, and engage the multi-billion shillings international money

Mr Daniel Ndonye

transfer business through links supported by the bank.

Senior Partner Kirungii Ring Road, Westlands

In1994, the bank started to diversify, and became a fully

P.O. Box 40092, G.P.O. 00100 Nairobi

fledged commercial bank offering a broad range of

Tel: +254-20-4441344/05â&#x20AC;&#x201C;12

financial services. Co-operative Bank of Kenya has grown

Fax: +254-20-4448966

to become one of the leading commercial banks in Kenya

Email: dndonye@deloitte.co.ke

offering a full range of over 36 products through 30

Website: www.deloitte.com

interconnected and centralised branches spread throughout the country.

In East Africa, Deloitte & Touche is the member firm of Deloitte Touche Tohmatsu. Deloitte is one of the leading

With 800 employees, customer deposits of KSH17 billion,

professional services firms in the region providing audit,

and total assets of over KSH23 billion, the Bank has a

tax, consulting and financial advisory services.

robust base on which to continue developing innovative financing solutions to its customers.

In East Africa, Deloitte employs over 300 employees and 11 partners, and operates in Kenya (Nairobi, Mombassa),

The bank is currently investing in a larger customer reach

Uganda and Tanzania. Established in Kenya in 1907,

FINANCE

eBizguides Kenya

Deloitte is the oldest and the second biggest consulting

arm of the integration arrangement.

firm in the country. As the largest firm of accountants and business consultant in Africa, Deloitte is committed

The main mission of the Bank, as drawn from its charter,

to providing superior, value added service and to delive-

is to act as a tool or a vehicle for contributing towards the

ring innovative solutions to complex business issues

socio-economic development of its member states

worldwide.

through promoting intra-COMESA trade and the economic integration of the COMESA sub-region.

Deloitte is not only an auditor but an advisor that provides its national and international clients with a com-

PTA Bank has developed into a strong organisation with

plete range of multi-disciplinary services. The firm has the

a well-established network in partner financial institu-

largest number of Nairobi Stock Exchange listed clients,

tions and export credit agencies, giving the business

and provides auditing, taxation and consulting services

community in member countries access to the interna-

for the top companies of the country, such as Kenya

tional money markets.

Airways, CFC Banks, NIC Bank, Bamburi Cement, Mumias Sugar and numerous other prestigious local

The Bank provides project and trade financing facilities

clients. These cover human resources, risk management,

ranging from US$500,000 to US$13.5 million, although

information technology, e-business planning, corporate

loans exceeding the upper limit can still be considered

finance and have particular skill experience in donor

with a special board dispensation.

funded work. PTA Bank has recently been seeking to expand its memThe firm also has a business development services unit

bership to countries outside of the African continent. The

deducted to the particular needs of the owner-manage-

Republic of Seychelles recently signed a deed of acces-

ment business. Last but not least, the company offers

sion becoming the 19th member, joining 16 African

secretarial and registration, insolvency, company care

countries, the People’s Republic of China and the African

and liquidation services.

Development Bank (ADB) as shareholders of the bank.

EASTERN AND SOUTHERN AFRICAN TRADE AND DEVELOPMENT BANK (PTA BANK)

“Our goal is to be an organisation that understands the needs of business in eastern and southern Africa, one that has diverse experience in different markets and one that will be guided by the

Dr Michael Gondwe

unique business requirements of our members.”

President

Dr Michael Gondwe

NSSF Building: 22nd and 33rd Floors, Bishops Road,

President

P.O. Box 48596, 00100 Nairobi

JUBILEE INSURANCE COMPANY LTD

Tel: +254-20-2712250 Fax: +254-20-2711510 Email: official@ptabank.org

Mr K. Mohamed

Website: www.ptabank.org

Managing Director and CEO Jubilee Insurance House, Wabera Street

The

Eastern

and

Southern

African

Trade

and

P.O. Box 30376, 00100 G.P.O., Nairobi

Development Bank (PTA Bank) was established in 1985

Tel: +254-20-32081001

following the provisions of the Treaty of 1981 establis-

Fax: +254-20-32081150

hing the Preferential Trade Area (PTA), which has since

Email: jic@jubileekenya.com

been transformed into the Common Market for Eastern

Website: www.jubileeinsurance.com

and Southern African States (COMESA), as a financial

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FINANCE

Established in 1937, Jubilee Insurance is one of the oldest

1896 when its predecessor, the National Bank of India,

composite insurance companies in Kenya, and one of the

opened a small branch in the coastal town, Mombasa. In

two insurance companies listed at the Nairobi Stock

1970, the government of Kenya acquired 60% sharehol-

Exchange. Jubilee has one of the largest networks of

ding in National and Grindlays Bank, which had merged

offices spanning Kenya, Tanzania and Uganda and has

with the National Bank of India and renamed it the Kenya

grown to be one of the leading insurance companies in

Commercial Bank. The government has over the years

the region with a solid emphasis on Information

reduced its shareholding in the Bank to the current 35%

Technology, a strong capital base, and superior customer

with the public owning the remaining 65%.

service.

Currently, the Kenya Commercial Bank Group is one of the leading institution in Kenyaâ&#x20AC;&#x2122;s banking and financial

Jubilee has the largest holding of shareholder funds in

sector with an asset base of over KSH74 billion (US$1

the region. With a blue chip status, and a proven inves-

billion). KCB Group has the widest network of outlets in

tment track record, the clients are assured of maximum

the country comprising 95 full-time branches and 35

security for their investments.

satellite branches. This represents over 55% of the total banking outlets in Kenya. As a player in the global finan-

With Gross Premium Income of the Group over KSH1.8

cial market, the group maintains working arrangements

million and long-term business funds exceeding KSH3

with over 400 correspondent banks throughout the

billion, Jubilee insurance provides its clients with a large

world. All branches provide a whole range of retail ban-

range of services in general and life insurance. The com-

king and financial services apart from acting as agents of

panyâ&#x20AC;&#x2122;s medical insurance business has grown by 50% in

development.

2004. Jubilee Insurance is constantly developing customised demand-driven products to meet unique regional

Since inception, the Kenya Commercial Bank Group has

market needs.

endeavored to provide quality and customer friendly services geared towards meeting the ever-changing cus-

Over the past couple of years, Jubilee has been working

tomer needs. This has ensured consistent growth in cus-

on a programme to improve the turnaround time for set-

tomer deposits that have, in turn, provided a strong

tlement of insurance claims. It has also been implemen-

reservoir for steady growth in customer borrowings every

ting an ambitious restructuring and IT programme to

year.

transform it into a one-stop financial services company. The strategy is to transform Jubilee Insurance into a pro-

KCB is in the process of refurbishment of 45 branches

fitable, dynamic, innovative and growth oriented insu-

and upgrading of the IT system to transform KCB into a

rance-based financial services group.

one-branch bank.

KENYA COMMERCIAL BANK

The bank owns several subsidiaries: Savings and Loan Kenya Ltd specialising in mortgage finance for the pur-

Mr Terry Davidson

chase and development of residential as well as commer-

Managing Director

cial properties and Kenya Commercial Bank (Tanzania)

Kencom House, Moi Avenue

Ltd, which provides comprehensive financial and com-

P.O. Box 48400, Nairobi

mercial banking services in Tanzania. With the advent of

Tel: +254-20-250820

the East African Cooperation, it is strategically placed to

Fax: +254-20-338006

facilitate cross-border trade within the East African

Email: kcbhq@kcb.co.ke

region.

Website: www.kcb.co.ke The history of Kenya Commercial Bank dates back to

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eBizguides Kenya

NAIROBI STOCK EXCHANGE

years to strengthen the domestic market. In 2004, the NSE has successfully implemented the cen-

Mr Chris Mwebesa

tral depository system (CDS) and the transformation of

Chief Executive Officer

paper shares certificates into electronic form. This has

1st Floor Nation Center, Kimathi Street

allowed investors to transfer listed securities without the

P.O. Box 43633, 00100 Nairobi

need for certificates. The new system is expected to

Tel: +254-20-230692

improve the liquidity of the market, and increase trade

Fax: +254-20-224200

activities. The transfer of shares which used to take up to

Email: info@nse.co.ke

14 days has been reduced to five days. By the end of

Website: www.nse.co.ke

2005, the NSE will have completed the automation of the trading system to interface with the CDS.

The Nairobi Stock Exchange was constituted in 1954 as a

Over the past years, the NSE has been working on incre-

voluntary association of stockbrokers. The business of

asing the number of investors. For the years to come, the

dealing shares was then confined to the resident

NSE is aiming at increasing the number of domestic com-

European Community, since Kenyans were not permitted

panies listed on the market, and create awareness on the

to trade in securities until independence in 1963.

supply side with an objective of five new companies listed per year.

In 1984, the Capital Markets Authority was established to assist in the development of capital markets. The first pri-

“We want to change the way to do business and

vatisation under the NSE was realised in 1988 with the

create a vibrant market. Foreign investors are wel-

sale of 20% of the government stake in Kenya

come and good returns can be made in Kenya.”

Commercial Bank. The largest share issue in the history of

Mr Chris Mwebesa

NSE was with the privatisation of Kenya Airways in 1996.

Chief Executive Officer

The biggest challenge for NSE is to enhance market

NATIONAL BANK OF KENYA (NBK)

access. The number of listed companies is still low (50) and the NSE has therefore undertaken fundamental

Mr Marambii

reforms of the market structure. The market has been

Managing Director

reorganised into three independent market segments,

National Bank Building, Harambe Avenue

namely the Main Investment Market Segment (MIMS)

P.O. Box 72866, 00200 City Square, Nairobi

with more stringent listing requirements similar to the

Tel: +254-20-226471

current structure of the exchange, the Alternative

Fax: +254-20-330784

Investment Market Segment (AIMS) designed to provide

Email: managingdirector@nationalbank.co.ke

access market to small and medium enterprises with high

Website: www.nationalbank.co.ke

growth potential, and the Fixed Income Securities Market Segment (FISMS), a separate independent market for

National Bank of Kenya Ltd (N.BK) was incorporated in

fixed income securities such as treasury bonds, corporate

1968 as the first “Kenyan Bank” (fully owned by the

bonds and debenture stocks.

government), with the objective of enabling Kenyans to get access to credit and control their economy after inde-

The NSE and the Capital Markets Authority has also intro-

pendence.

duced various incentives to attract investors (including foreign investors) on the capital markets. There are

Over the years, the government reduced its shareholding

around 500,000 investors in the NSE, which accounts for

down to 22,5%. The rest of the shares are currently

2% of the Kenyan population. The NSE aims at increasing

owned by National Social Security Fund (48.06%), and

the number of investors to 1.5 million within the next five

the General Public (29.44%).

154

eBizguides Kenya

FINANCE

In 2003, the Bank increased its share capital by KSH6 billion (from KSH3 billion to KSH9 billion) through the

NATIONAL SOCIAL SECURITY FUND (NSSF)

creation of 1,200 million non-cumulative preference Mr Naftali Mogere

shares of KSH5 each.

Managing Trustee With 31 outlets across the country, and over KSH27

Social Security House

billion in deposit, NBK is one of the largest commercial

P.O. Box 30599, 00100 Nairobi

banks in the country. Besides offering traditional financial

Tel: +254-20-2729911

services and products, NBK has taken a leading role in

Fax: +254-20-2711615

issuing and promoting modern delivery and payment

Email: japhethmutunga@yahoo.com

systems. The Bank has also been involved in the stock market, playing multiple roles as an arranger, underwriter

The National Social Security Fund (NSSF) was established

and placing agent. NBK is an appointed fiscal agent,

in 1965 by an Act of Parliament with the objective of pro-

registrar and market maker in the secondary market.

viding workers who were not covered by the civil service pension scheme or other schemes approved by the

NBK operates one subsidiary company; Natbank Trustee

Ministry of Labour, with some form of financial support

and Investment Services Ltd, which has a share capital of

on retirement. The Fund became a compulsory savings

KSH10 million.

scheme to which all employers pay statutory monthly contributions for every employee, while the employee in

In the past few years, the Bank has been involved in

return pays a half of the statutory contribution. The Fund

various recovery programmes including debt recovery,

pays a lamp sum benefit to members or their depen-

ICT centralisation, cost control, capacity building and

dants, usually on retirement or death of the contributor.

rationalisation of its branch network. As a result, the Bank has managed to report overall positive net trading

Registration of employees and employers commenced in

and improved performance for the past two years. The

December 1965 and on 1st July 1966, NSSF received the

bank has put strong emphasis on improvement of infor-

first contribution of male workers who had been regis-

mation, management, communication and reporting

tered as members. Registration of female workers started

systems to connect all the outlets across the country and

in 1975 and on 1st January 1977 they started remitting

reach a “branchless” status.

contributions.

In 2003, NBK redefined its vision and strategy in order

In 1987, the amendment of NSSF Act transformed the

refresh the overall corporate image of the bank and

Fund into an autonomous state corporation under the

develop its position as the local bank of choice: “The

management of a board of trustees.

Bank where you belong”. A weakness in the provident fund system is that the The redefinition of NBK market and customer focus has

benefits payable as lump sum is not geared towards

been followed by the improvement of products and ser-

income replacement and is often used to meet short term

vices on offer. The bank has significantly increased its

needs rather than provide a basis for an income through

market share.

out life in retirement. The NSSF has 2.9 million members but only about 1 million of them pay contributions. Less than 15% of the total labour force is covered by social security systems as 70% of the population work in the Jua Kali (informal) sector and 80% of Kenyans work in rural areas, mainly in small-scale farming and crop growing.

155

FINANCE

eBizguides Kenya

The Fund is therefore converting from a social security

With gradual implementation of the new system, plan-

fund into a pension insurance scheme. The new legisla-

ners foresee eventual compulsory health coverage that

tion should be operational in 2006. Players in the Jua Kali

would extend beyond formal sector workers and include

sector can no longer be ignored if Kenya has to meet the

the self-employed, unemployed and the poor, as well as

projected growth targets for employment creation,

non-Kenyan permanent residents. The ILO will be suppor-

income generation and at the same time prepare this

ting the implementation process for the new health

country for technological take-off.

scheme through joint activities carried out with the World Health

With time, the new insurance scheme aims at guarante-

Organization

(WHO)

and

the

German

Development Agency (GTZ).

eing every citizen the right to access basic necessities of life including food, Medicare education and shelter. It will

PTA REINSURANCE COMPANY (ZEP-RE)

ensure that all workers in both formal and informal sectors are provided with basic income replacement support

Mr Shadreck M. Lubasi

mechanisms based on the solidarity principle. The new

Managing Director

scheme will extend membership to any person with a

8th & 9th floors, ZEP-RE Place, Longonot Road, Upper Hill

monthly or seasonal income. The new benefits will

P.O. Box 42769, 00100 Nairobi

include life-time old-age, invalidity and survivorsâ&#x20AC;&#x2122; pen-

Tel: +254-20-212792

sions, a maternity grant and a funeral grant. In addition,

Fax: +254-20-224102

the reform aims at supporting the high number of people

Email: slubasi@zep-re.com; mail@zep-re.com

suffering from HIV/AIDS. The ILO estimates that 6.7% of

Website: www.zep-rep.com

the countryâ&#x20AC;&#x2122;s labour force is HIV positive. PTA Reinsurance Company (ZEP-RE) (PTA Reinsurance

eBizguides Kenya

FINANCE

Company) is a specialised institution of the Common

130 branches in 13 countries. The bank is acknowledged

Market for Eastern and Southern (COMESA) established

global leader in foreign currency services in over 50 coun-

in 1992 with its head office in Nairobi. The objectives of

tries worldwide and is specialised in the so-called

the Company are the development of the insurance and

‘’exotic’’ African currencies.

reinsurance industry in the sub-region, promotion of regional underwriting and retention capacity and support

Established in 1911, SCB has a network of 30 branches

of regional economic development. The Company’s ope-

strategically located in Eldoret, Kisumu, Mombasa and

rations are guided by the mission “to provide first class

Nairobi.

security and quality services to all clients”. Standard Chartered Kenya focuses its marketing efforts ZEP-RE transacts reinsurance business through treaty and

primarily on global and domestic corporates. The bank

facultative cessions in the following classes: Fire & Allied

has also developed a wide range of tailor-made business

Classes, CAR Engineering, Marine Hull and Cargo,

and financial services for small- to medium-sized business

General Accident and Motor, Aviation, and Life. In 2003

customers. With a solid presence and network in East

the Company wrote over US$25 million in premiums and

Africa, Standard Chartered has also developed specia-

currently ranks among the leaders in the region. ZEP-RE

lised products and services for non-government organisa-

has a strong reputation of expertise and knowledge of

tions and development institutions.

the local market, and has based its success on high quality standards and professionalism. The Company

SCB has centralised the back office operations of all its

currently holds national credit rating of “AA” and an

branches in one central location with a real-time accoun-

international credit rating of “BBB-”. ZEP-RE transacts

ting system for streamlined processes, improved service

business in over 47 countries within and outside the

levels, increased efficiency and a standardized approach

African region.

to their product offering. SCB was the first has Kenyan bank to receive ISO 9002 certification in technology

The Company’s vision is to become a “World Class

systems.

Reinsurer”. To this end efforts are being made to augment its capital base by broadening equity participation

The Bank is the largest dealing room in Kenya and there-

by regional institutions in the private and public sectors

fore the market maker for the Kenyan shilling. SCB was

and governments of the region including Djibouti, Kenya,

named “Best Foreign Bank in Kenya” in 1999 and 2000,

Mauritius, Rwanda, Sudan and Zambia.

by Euromoney Magazine, and was ranked the 5th “Most Respected Company in East Africa” in 2000 by

STANDARD CHARTERED BANK OF KENYA (SCB)

PricewaterhouseCoopers and Nation Media Group

Mr Mike Hart

STARLIT

Survey.

Managing Director Stanbank House

Mr Karim Dhalla

P.O. Box 30003,00100 Nairobi

Regional Director

Tel: +254-20-32093000/330200

Sclaters House, 1st floor Parklands Road

Fax: +254-20-214086

P.O. Box 10778, 00100 Nairobi

Email: Khadija.Mohamed@ke.standardchartered.com

Tel: +254-20-3212212

Website: www.standardchartered.com/ke/

Fax: +254-20-3747374 Email: admin@starlit.co.ke

The Standard Chartered Bank of Kenya (SCB) has a

Website: www.starlit.co.ke

strong presence in Sub Saharan Africa, with more than

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FINANCE

eBizguides Kenya

Starlit was established in 1993 as an insurance broker.

nary product in the auto insurance industry. StarTrack

Over the years, the company has grown to be a respected

combines a comprehensive insurance coverage with a

and key player in the industry servicing a wide range of

vehicle tracking device at no extra cost. This unique and

clientele of corporates and individuals from its Nairobi

revolutionary product has boosted the company among

and Mombasa offices.

the key players of the industry, with one of the fastest growth rate of the market.

The company has gradually diversified into providing financial services and medical insurance cover. The com-

In the near future, Starlit will open branches in Kissumu

pany provides its clients with a wide range of products

and Eldoret. The company is also considering whether to

and services in general insurance, health insurance, life

expand into the region and opening branches in Uganda

insurance and investment plans.

and Tanzania in line with its vision of becoming a leading provider of insurance, risk management and financial ser-

Starlit prides itself for its service provision and is well

vices in East Africa.

known in the industry for its ability to get the most optimal and cost-effective risk solutions for both ints invidual and corporate clients. In 2004, Starlit launched â&#x20AC;&#x153;StarTrackâ&#x20AC;?, a new revolutioKenyan notes

I N D U S T R Y

T R A D E

â&#x20AC;&#x153;Trade does not quarrelâ&#x20AC;? Kenyan proverb

159

I N D U S T RY & T R A D E

eBizguides Kenya The textile industry is unique in that it has links with far-

OVERVIEW

mers, scientists, engineers, chemists, textile technologists, transporters and many others. It is thus a very good

Kenya is the most industrially developed country in East

medium to bring about economic and industrial develop-

Africa. The sector is diverse and boasts a comparatively

ment. It is therefore not surprising that the government

wide range of manufacturing industries, with food pro-

of Kenya selected it as one of the sub-sectors to be pro-

cessing being the largest single activity. However, the

moted in the first phase of its national industrialisation

sector faces a number of difficulties, notably a weak

programme.

infrastructure, rising costs and import competition. During the 1990s the government’s industrial policy

THE ARTS AND CRAFTS INDUSTRY

shifted away from import substitution and protectionism towards liberalisation and privatisation. In practice, this

Many of us are familiar with the beautiful Kenyan car-

has led to the gradual removal of tariff barriers, encoura-

vings of animals, people, dishes and other items that can

ging competition and recognising the role of the informal

be bought in many craft and fair-trade outlets, including

“Jua Kali” industrial sector. The public sector plays a rela-

in Europe and North America. Woodcarving in Kenya is

tively minor role in industry in Kenya.

one of the forest-related enterprises and an industry with a fascinating history, dating back to 1919. Since then,

INDUSTRY

the industry has gradually expanded to be one of the largest handcraft industries in Kenya, supporting over

THE TEXTILE INDUSTRY

60,000 full-time carvers and providing a means of livelihood to an estimated 400,000 dependants, with the

Kenya has a population of about 32 million people and

export earnings worth more that US$20 million per year.

this number is growing at about 3.5% per annum. It is

The woodcarving industry is established in a well-orga-

estimated that the total fabric demand by these people is

nised structural setup comprising wood producers, car-

at least 225 million square metres annually. There are 52

vers and marketing agents, all of whom are mostly bound

fabric manufacturers and 110 large-scale garment manu-

by close ties of extended families and clans of the Kamba

facturers registered with the Registrar of Industries. The

tribe.

mills have a combined installed capacity of 115 million square metres while the garment manufacturing sector has a combined capacity to process fabric into garments

THE FOOD PROCESSING INDUSTRY

with a total installed manufacturing capacity equivalent to 85% of the total national demand. The actual number

Due to its geographical location and industrial develop-

of small-scale garment manufacturing units has never

ment (small but sophisticated), Kenya is the trade hub for

been documented, but it would be safe to state that the

East and Central African region. Kenya has a relatively

total capacity to make garments in the country is well

well-developed agro-processing industry ranging from

above the demand. This feature has not induced expan-

processing staple food and fruits, to beverage and

sion in the weaving sector on account of two main fac-

tobacco production for both domestic and foreign mar-

tors:

kets. However, this sector is capital intensive and relies on imported inputs. Food and beverages make up over half

• importation of large volumes of new and used ready

of Kenya’s exports mainly to the neighbouring countries.

made garments along with finished fabric, all of which

Traditional suppliers from European Union are the main

sell at low prices

source of Kenyan imports supplying over 32%. The

• high pricing of locally manufactured garments, which

industry faces increasing competition from imported

reduces demand for them.

substitutes both in price and quality. The sector is cons-

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I N D U S T RY & T R A D E

trained by power shortages and failures, unreliable water

smelting, hot rolling, the manufacture of wire and wire

supply, deteriorated infrastructure, high interest rates for

products, galvanised and cold-rolled steel products and

short- and medium-term borrowing, excessive govern-

pipes. These sub-sectors are interrelated, as they depend

ment regulation and red tape, to mention a few. Hence,

upon each other for the supply of inputs.

the increased cost of doing business in Kenya. The Kenyan metals industry is relatively old, the first firm Kenyaâ&#x20AC;&#x2122;s food and beverage processing industry comprises

having been established in 1948. The industry is today

more than 1,232 businesses. Agro processing is the lar-

dominated by a few Kenyan Asian-owned firms, which

gest manufacturing sub-sector accounting for 13% of

have extensive links in India and a number of other

total manufacturing output (2002). The businesses range

African countries.

from small family-owned businesses, to large businesses listed on the Nairobi Stock Exchange, and subsidiaries of

The base metals industry started by manufacturing

foreign or multinational businesses. Major multinationals

mainly nails, then gradually integrated backwards into

have established operations in Kenya as foreign compa-

wire drawing, followed by galvanising, hot-rolling and re-

nies or as joint ventures with Kenyan shareholding to

melting, cold-rolling, galvanised sheeting and pipe manu-

supply the domestic and neighbouring markets. These

facture. The technology in the metals industry is largely

include Nestle, Unilever, Cadbury, Coca-Cola and

embodied in the equipment and requires considerable

Wrigley. The companies produce the same high standard

skill for maintenance. There has been a conspicuous

of their products that are well known around the world.

absence of indigenous Kenyans in the ownership, except

Most businesses serve very localised markets while a few

for the minority shareholding they have acquired in a few

medium to large businesses dominate the market on a

firms recently. The firms rely partly on imported equip-

nationwide.

ment and expatriate technicians but have built up considerable local know-how and skilled manpower.

Kenyaâ&#x20AC;&#x2122;s food and beverage industry is composed of the following key production sectors: dairy and meat pro-

MANUFACTURING

ducts, bakery goods, grain milling, edible fats and oils, beverages, fruits and vegetables processing, fish proces-

Kenya has followed a mixed economy development stra-

sing, wines and spirits.

tegy since independence. While the respective roles of the public and private sectors have evolved over time, the

THE PLASTIC INDUSTRY

country has experienced remarkable continuity in its underlying economic development strategy. However,

There are more than 70 plastic industries in Kenya with

there is a shift recently in the emphasis from public to pri-

capacities ranging from 1,000 to 8,000 tons a year. Most

vate investment. In this context, market-based reforms

of these industries are located in Nairobi and Mombasa,

have been introduced and incentives for both local and

with a few in Eldoret, Kisumu, Nakuru and Thika. The

foreign private investments provided.

plastics industry sub-sector has benefited from the new technological changes that have occurred in the manu-

The manufacturing sector accounts for about 13% of the

facturing industries combined with the positive shift in

GDP and employs about 240,000 persons. In 2003 the

demand for plastic products. The overall result has been

sector grew by 1.4% compared with growth of 1.2% in

increased production and huge demand for plastic pro-

2002. The factors that contributed to this improved per-

ducts.

formance include zero rating of excise duty and related taxes for majority of inputs, government intervention in

THE METAL INDUSTRY

promoting export opportunities for manufactured products, enforcement of anti-dumping measures to protect

The main sub-sectors in Kenyaâ&#x20AC;&#x2122;s metal industry are steel

local industries and increased investor confidence.

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I N D U S T RY & T R A D E

eBizguides Kenya planned. Since May 1993, importers in Kenya are no longer required to obtain import licences and the singlecolumn tariff is based on the Harmonised Commodity Description and Coding System. Liberalisation has led to an influx of imported products, which has created stability in prices and eliminated shortages of essential commodities. In external trade, the main destination of Kenya’s exports regionally is Africa followed by the European Union. In the regional and international market, Kenya has access to the Common Market for Eastern and Southern

To encourage manufacturing in Kenya for world markets,

Africa (COMESA), the East African Community (EAC), the

the government has established an in-bond programme

Inter-Governmental Authority on Development (IGAD),

open to both local and foreign investors. Enterprises ope-

the African Caribbean Pacific-European Union (ACP-EU),

rating under the programme are offered the following

the African Growth and Opportunity Act (AGOA) and the

incentives:

World Trade Organisation (WTO)

• exemption from duty and VAT on imported plant,

IMPORTS

machinery and equipment, raw materials and other imported inputs • 100% investment allowance on plant, machinery, equipment and buildings; bonded manufacturing enterprises can be licensed to operate in Nairobi, Eldoret, Kisumu, Mombasa, Nakuru, Nyeri and Thika or within the immediate environs of these towns.

TRADE Kenya is strategically located within easy reach of export markets in the African region, the Middle East, Europe and Asia. In addition Mombasa, being the principal seaport of Kenya, services the EAC and COMESA market and provides connection to landlocked neighbouring countries. This makes Kenya an attractive location for inves-

Imports include automobiles, beverages, capital goods,

tments targeted at these markets. Kenya has also fully

consumer goods, crude oil, equipment, petroleum pro-

liberalised its economy and is keen to work towards

ducts, pharmaceuticals, professional and scientific instru-

removing barriers to trade, mobilising investments and

ments, and resins. Import and exchange allocation

creating a favourable environment for business and

licences are not required except for a few items that are

investments. Potential investors can now invest either

included on a negative list for healthy security and envi-

through direct investments or joint ventures with Kenyan

ronmental reasons.

entrepreneurs. Kenya’s top ten imports, by volume, in 2003 were: There are five Export Processing Zones: Athi River, Della

• petroleum and related products

Rue, Mombasa, Nairobi and Nakuru, and more are being

• wheat (unmilled)

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eBizguides Kenya

I N D U S T RY & T R A D E

• iron and steel

• plastics

• chemical fertilisers

• maize (unmilled)

• animal and vegetable fats and oils

• organic and inorganic chemicals.

• rice • sugar, molasses and honey Bata Shoes make the famous Kenyan “Safari Boots”

163

I N D U S T RY & T R A D E

eBizguides Kenya

EXPORTS Broadly speaking, Kenya’s merchandise exports can be divided into seven groups: coffee, tea, horticulture, oil products, processed foods and vegetables, manufactured products, and other products. In 1995 and 1996, manufactured products held the largest share of exports of goods, followed closely by other products, which include soda ash and pyrethrum. Coffee exports, as a share of total visible exports, fell significantly from 15% in 1995 to 8.7% in 2000 and just 3.8% of total merchandise receipts during January to

• tea

August 2002. The decline initially reflected a fall in the

• iron and steel

values of the US dollar, anaemic world coffee prices and

• essential oils

increasingly a decline in export volumes due to successive

• fluorspar

droughts in 1999 and 2000. Bottlenecks and inefficien-

• coffee

cies in the sclerotic state Coffee Board of Kenya, which is

• animal and vegetable oils

currently slated for extensive restructuring, also exacer-

• paper and paper board.

bated the situation.

MINING Tea’s share in total visible exports has gradually risen, replacing manufactured products as Kenya’s largest

Limited mining activity is centred on extraction of soda

source of merchandise. Aside from tea and coffee, horti-

ash from Lake Magadi, fluorspar and salt for export.

culture, particularly cut flowers, is Kenya’s other main

Gemstones and limestone are also exploited commer-

source of agricultural export receipts.

cially. Other minerals include silver, lead, gold, salt and chromites, but these are not yet commercially viable.

Kenya typically imports crude oil, refines it, and exports it

Mining employs only a small number of Kenya’s workers.

to neighbouring East African countries. In recent years,

The government is also seeking to exploit titanium and

however, external demand for oil refined in Kenya has

zircon deposits on the coast of the Indian Ocean.

fallen. In its place, particularly in 2000 and 2001, reexports of refined oil products have emerged. Oil pro-

MAIN COMPANIES

ducts enter the port of Mombasa and are re-exported to neighbouring countries. White oils are transported inland

AQUAMIST

mainly by the Mombasa–Nairobi–Eldoret–Kisumu pipeline, which belongs to the state-owned Kenya Pipeline

Mr Nazir Manji

Company. Hydrocarbon export receipts look set to grow

Managing Director

further as the pipeline is extended from Eldoret to

Rhapta Rd, off Waiyaki Way, Westlands

Uganda.

P.O. Box 66856, 00800, Nairobi Tel: +254-20-4443945/852

Kenya’s top ten exports, by volume, in 2003 were:

Fax: +254-20-4447970

• cement

Email: info@aquamistwater.com

• horticultural products • soda ash

Aquamist Company Ltd was established in 2000. The

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I N D U S T RY & T R A D E

company sources its water from the great Rift Valley and

gum boots, Tanga and the Trendy Miss World Kenya

has developed a fully fledged factory with a modern fil-

Collection; the DIP factory where injected Canvas Shoes

tration plant and a completely automated washing, rin-

like the Bata Ngoma and Sabatin are produced; and the

sing, filling and sealing machinery sourced from a leading

Thongs factory where the famous Pata Pata (slippers) are

U.S. manufacturing company, as well as state-of-the-art

produced.

bottling lines. Services and machinery are continually under review. This enables Aquamist to respond to the

Bata sells its shoes through four different distribution

rapidly changing needs of its customers in today’s highly

channels: retail sales (75 stores across the country), who-

competitive, technology driven work place.

lesale (depots and wholesalers), institutions, and export (25% of the production sold in the Democratic Republic

Aquamist prides itself with a top quality customer care.

of Congo, Ethiopia, Malawi and Rwanda, South Africa,

The company has a large fleet of trucks that provide icus-

Sudan, Uganda and Tanzania,).

tomers with door-to-door deliveries. The company serves a huge clientele including five star hotels, leading hospi-

Bata Shoe also imports some shoes that cannot be pro-

tals, schools, prominent health clubs, embassies, busi-

duced locally from its sister companies. In the coming

nesses as well as millions of private customers. The sizes

months, the company will implement internet sales for

available range between 300ml to 20 litres bottles.

the growing demand of Safari boots in North America.

Aquamist products are favourably priced to accommo-

Bata Shoe Company has developed a large range of

date the needs of every Kenyan.

shoes available at various prices to cater for different income groups. These are available in its stores that are

Aquamist has proved to be among the best mineral water

categorised as the “Flagship Store concept”, the “the

providers globally and has a vision to venture interna-

City Store concept”, “the Family Store concept” and

tional markets in the near future.

“the Mini Price Store concept”.

BATA SHOE COMPANY (KENYA) LTD

The company has developed more than 600 lines including the famous Bata Safari boots, the new “Miss World

Mr Fernando Garcia

Kenya collection” and the best-selling Pata Pata, and

Managing Director

prides itself on releasing a new product every week.

Limuru P.O. Box 23, 00217 Limuru

With a market share of 41% and 964 employees, Bata is

Tel: +254-66-71620, 71205

one of the strongest and most recognised brand names

Fax: +254-66-71145

in Kenya. The company faces strong competition from

Email: fernando.garcia@bata.com

second-hand shoes and independent dealers, but main-

Website: www.batakenya.com

tains very competitive prices ranging from below KSH100–3,000.

Bata Shoe Company (K) Ltd is part of Bata Organization, which was founded in 1884 in Czechoslovakia and incor-

Bata Shoe Company has recently opened an international

porated in Kenya in 1940.

franchise in Rwanda, and plans to open four more in 2005, and many more in the region in the coming years.

The Company manufactures and sells 16 million pairs of shoes per year. It has five manufacturing plants: the tan-

“Bata strives to provide the best to its customers:

nery where skins and hides are tanned into first class lea-

the right shoes, at the best price, at the right

ther; the leather factory where the finished leather is con-

moment. The customer is our boss.”

verted into shoes like the Safari boots; the plastic factory,

Mr Fernando Garcia

which produces all types of plastic shoes like the Sandak,

Managing Director

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I N D U S T RY & T R A D E

eBizguides Kenya

BIDCO OIL REFINERIES LTD

voted the â&#x20AC;&#x153;Most Respected Manufacturing Company in East Africaâ&#x20AC;? through a PricewaterhouseCoopers survey.

Mr Vimal Shah

Bidco has three manufacturing plants, in Kenya, Tanzania

Managing Director

and Uganda, and has recently started an integrated oil

P.O. Box 239, 01000 Thika

palm development project on 40,000 hectares in

Tel: +254-20-6730102

Uganda, along the shore of Lake Victoria.

Fax: +254-20-6730104 Email: sales@bidco-oil.com

Bidco has developed a large product range (30 brands) of

Website: www.bidco-oil.com

sunflower, corn and soya oils, yellow and white cooking fats, margarine and soaps. In 2002, Bidco acquired lea-

Bidco Oil Refineries Ltd was established in the early 1980s

ding Unilever edible oil brands (Kimbo, Cowboy, Veebol

as a soap manufacturing plant, and has grown to be the

and Tiger).

largest and fastest growing manufacturer and distributor of vegetable oils, fats, margarine, soaps and protein con-

With over 1,200 employees and a overall yearly turnover

centrates in East and Central Africa. In 2004, Bidco was

of US$150 million, Bidco has become one of the market

Escape from the city, and visit Lamu for some R&R

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I N D U S T RY & T R A D E

leaders in 14 countries throughout Africa. With affor-

Bio Food Products Ltd was awarded the Gold Seal Quality

dable pricing, reliable service and quality of product,

Award by the Kenya Bureau of Standards in 2002 and the

Bidco play an essential part in the daily lives of people

European Golden Award in 2003 and was also declared

throughout Africa and has become a household name

the most reliable and quality conscious supplier to NAS

with a very strong brand recognition.

the airline caterers based in Nairobi.

Bidco is strongly committed to the community and the

Bio Food Products exports 60% of its production and are

environment: All Bidco products are packed and deli-

contracted suppliers of pasteurised dairy products to the

vered in eco-friendly and fully recyclable packaging. The

UN peacekeeping forces currently in the Congo and

natural resources, oil seeds, such as maize germ, sun-

Burundi. The company also supplies major hotels, inter-

flower seeds and soybeans, are grown to world-class

national airlines and supermarket chains in Kenya.

agricultural standards, using eco-friendly farming techniques. Bidco has been the first edible oil company in Africa

With more than 100,000 litres of milk converted to value

to be certified ISO 9002 and has implemented a total

added dairy products each month, and an annual tur-

quality management programme.

nover of over US$2.1 million, Bio Food Products is the regional market leader in the niche market segment. The

In the next ten years the company will expend towards

company has embarked on construction of its new ultra

west and north Africa and aims at becoming the market

modern production facility in the outskirts of Nairobi with

leader in the African markets.

the intention of increasing its milk intake threefold and introducing a whole new range of functional dairy foods

“Bidco exists to serve daily consumer needs to

for the upmarket sector. The new plant will go into pro-

enhance Happy Healthy Living by Branding,

duction in the latter half of 2005.

Transforming, Distributing the Goodness Of Mother Nature. We will overcome challenges ethically and

COSMOS LTD

strive to make them a reality. Integrity is our Mr V. Patel

value.”

Technical Director

Mr Vimal Shah

Rangwe Road, Off Lunga Lunga Road, Industrial Area,

Managing Director

P.O. Box 41433, 00100 Nairobi

BIO FOOD PRODUCTS LTD

Tel: +254-20-550700–9 Fax: +254-20-550680

Mr Binoy Zachariah

Email: admin@cosmos-pharm.com

Managing Director P.O. Box 27623, 00506 Nairobi,

Cosmos Ltd is a pharmaceutical company incorporated in

Tel: +254-20-824465

Kenya in 1984. The founder chairman and managing

Fax: +254-20-824482

director for Cosmos, Dr P.K. Patel, a pharmacist, has

Email: bzach@africaonline.co.ke

drawn his experience from successful pharmaceutical retail outlets at Cosmopolitan and E.T. Monks.

Bio Food Products Ltd was established in 1991. The company started with a range of standard fruit yoghurts and

The vision for establishing a manufacturing entity was to

has gradually developed a large range of value-added dairy

make Kenya self-reliant in essential medicines according

products, ranging from regular stirred fruit yoghurts to for-

to the WHO and Kenya Government Essential Drug List.

tified, fat free, thermised and pasteurised yoghurts, as well

Kenya being a tropical country, and faced with disease

as sterilised flavoured milks to whipping and coffee cream,

and poverty, the focus was put on products for treatment

and jam and honey portion packs for hotels.

of malaria, tuberculosis, de-wormers, infections and

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other generic products for human and veterinary use,

been granted the right to distribute ARVs in Kenya,

such as Malaratab, Coscof, Wormicid and Wormita.

Tanzania and Uganda.

Cosmos produces 50% of veterinary products and has

From 2005 Cosmos will start producing and selling more

become one of the leaders on the market with a market

patented products to add value to its large range of

share of over 10%.

generics. The company is currently building a new state of the art factory complying with WHO standards.

Cosmos is making trends in the current management of combination therapy using fixed doses and is able to

C. DORMANS LTD (DORMANS COFFEE)

supply anti-malaria combination therapy (ACT), antiretrovirals (ARVs) and anti tuberculosis formulations.

Mr J. Block Managing Director

In 2004 GlaxoSmithKline granted a voluntary licence to

17 Milimani Road

Cosmos for the manufacture and sale of ARVs containing

P.O.Box 30147, 00100 Nairobi

Zidovudine and/or Lamivudine. Kenya has therefore

Tel: +254-20-2720660/1/2720445

become the second country after South Africa to manu-

Fax: +254-20-2714600

facture generics drugs to treat AIDS patients. Cosmos has

Email: jblock@dorman.co.ke

East African Packaging factory in Nairobi

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I N D U S T RY & T R A D E

Website: www.dorman.co.ke

100%

C. Dormans Ltd was founded in 1950 and has become

Industries, an international group with operations in

Kenya and Tanzania’s leading coffee roaster and

Britain, Caribbean and East Africa, EAPI provides its cus-

exporter. The company exports approximately 250,000

tomers with cost-effective and high-quality packaging

bags of green coffee each year, which accounts for about

solutions.

owned

Canadian

Overseas

Packaging

90% of the gross revenue. The trading operations are run from the Nairobi head office, where all the pre-auctions

With more than 400 employees, EAPI produces corru-

and post-auction quality controls are carried out.

gated cartons used by the tobacco and horticultural industries, and paper sacks used by the cement and tea

Its customer base covers most of the world’s roasters and

industries. EAPI operates a plant in Mombasa (paper

the company is particularly well respected in the specia-

sacks) and a plant in Nairobi (corrugated cartons).

lity sector. With state-of-the-art, gas flush, one-wayaroma-valve packaging, the company has become the

EAPI relies on the thriving fast growing horticultural busi-

leading coffee roaster in East and Central Africa, and the

ness, and a large domestic demand for paper sacks (tea

company fully supports traceability and sustainability.

and cement). EAPI is ISO 9001 and ISO 14001 certified. It also has HACCP certification for those customers in the

They have also recently ventured into the retail coffee

food and beverage sector.

shop business in partnership with the famous Tamarind Group, and currently has five coffee shops in Nairobi in

With a turnover of US$20 million, East African Packaging

prime locations, with more local and thereafter regional

Industries Ltd is a market leader in the region with multi-

expansion planned.

national reporters accounting for two-thirds of its customer base. In a highly competitive industry, EAPI has

In a unique development, the company has recently

proved to be the best quality provider in the region, with

opened the first coffee training centre in East Africa to

key customers like Bamburi Cement, Sher Agencies,

cater for not only its customers and sale staff but also to

Oserian Development Co, Uganda Leaf Tobacco, James

tourists.

Finlay, Unilever, and East African Portland Cement.

The company also provides a comprehensive after sales

EAST AFRICAN BREWERIES LTD (EABL)

service to customers including advice on equipment sourcing and maintenance, and on-the-job training for cus-

Mr Gerold Mahinda

tomer staff.

Managing Director P. O. Box 30161, 00100, Nairobi

EAST AFRICAN PACKAGING INDUSTRIES LTD (EAPI)

Tel: +254-20-864000 Fax: +254-20-861081 Email: kkariuki@eabl.com

Mr Cor Roest

Website: www.eabl.com

Managing Director Kitui Road, off Kampala Road

East African Breweries Ltd (EABL) is East Africa’s leading

P.O. Box 30146,00100; G.P.O. Nairobi

branded alcohol beverage business and has an outstan-

Tel: +254-20-530176/9

ding collection of beer and spirits brands. With brewe-

Fax: +254-20-652308

ries, distilleries, support industries and a distribution net-

Email: croest@eapi.co.ke

work across the region, EABL has an annual turnover of

Website: www.eapi.co.ke

Kshs 30 Billion and it has the largest share of the beer

Established in 1963, East African Packaging Industries Ltd

industry in the region. EABL is listed on the Nairobi Stock

(EAPI) is the largest paper converter in East Africa. It is

Exchange.

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The holding company owns the following subsidiaries:

EXPORT PROMOTION COUNCIL

Kenya Breweries, Uganda Breweries, Central Glass Mr Wabuyele

Industries and Kenya Maltings.

Chief Executive Kenya Breweries was incorporated in 1922 and produces

Anniversary Towers, 16th floor, University Way

a large range of high quality beers including Tusker (malt

P.O. Box 40247, Nairobi

lager and lager), Pilsner (ice light, ice, and lager), White

Tel: +254-20-228534–8

Cap, Allsopps, Kibo Gold, Bell lager, Guiness and Malta

Fax: +254-20-218013

Guiness (the only non-alcoholic drink in the portfolio).

Email: chiefexe@epc.or.ke

Four of Kenya breweries’ beers have won gold medals at

Website: www.epckenya.org

the prestigious 2004 Monde Selection beer awards in Brussels. The company is also the distributor of spirit

The Export Promotion Council (EPC) is Kenya’s premier

brands such as Vodka Smirnoff, Johnnie Walker, Richot

institution for the development and promotion of export

and Bond 7.

trade. Established in 1992, EPC addresses bottlenecks that exporters and producers of export goods and ser-

Kenya Breweries Ltd has invested KSH600 million into

vices are facing, and coordinates and harmonises export

new manufacturing equipment for its brew house. The

development and promotion activities in the country,

new vessels will see improved energy use through heat

with a view to increasing the performance of the export

recovery and energy storage. The new brew house equip-

sector. Today, EPC is the focal point for export activities

ment with increased level of automation will replace the

in the country.

existing ones and improve on material handling. Kenya Breweries has recently invested KSH200 million into a

To ensure maximum impact, the Council has organised

new waste-water treatment plan to reduce effluent emis-

its operations in sectors (agriculture and horticulture, tex-

sions by the brewery, and has invested KSH1.4 billion

tiles, commercial crafts and SMEs, fish and livestock pro-

into a new bottling line.

ducts and services). Each sector has a champion designated to understand its needs and address them in terms

In 2005, EABL has signed a strategic partnership with the

of product and market development.

Dutch brewer Heineken International to launch Heineken Lager Beer in the Kenyan Market. EABL will be the sole

The Council collects and disseminates business informa-

import partner in Kenya and Uganda.

tion on existing and potential markets to support the business community. Prospective exporters may also visit

EABL has been awarded the accolade of the “Most

the Council for business counselling services.

Respected Company in East Africa”, five years in a row (2000–2004)

survey

conducted

PricewaterhouseCoopers and the Nation Media Group.

EPC is also in charge of export market development, and undertakes market research, organises trade missions, promotional programmes, buyer–seller meetings, trade fairs and exhibitions. EPC has developed a product development and adaptation programme, and undertakes studies and interventions in branding, product design, styling and packaging for value addition at firm level. Last but not least, the Council undertakes training programmes for exporters to enhance their skills and enable

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them to respond more effectively to opportunities in the

Kenya has doubled, from 17 to 40 and there are now

market place. Through the Centre for Business

more than 80 companies. With an aim of 25 new com-

Information in Kenya (CBIK), EPC tries to create aware-

panies each year in all sectors (pharmaceutical, IT,

ness on the importance of the export trade. The Centre

bitumen, fresh produce, packaged tea, construction and

renders business counselling services and provides accu-

so on), the EPZs employ over 40,000 Kenyans.

rate information that can be useful to new and existing exporters. It also publishes guides to assist prospective

The Kenya government has undertaken an economic libe-

exporters.

ralisation and reform programme to promote trade and investment. Kenya being the hub of East Africa is beco-

“We have to encourage the investors to come to

ming a transhipment and re-export transit hub for the

Kenya. Kenya, the hub of East Africa, gives the

East and Central African Regional trade (COMESA) and

investors access to a wide market. It is also a stable

the EPZ Authority is the organisation charged with the

country which has developed many incentives for

responsibility of facilitating this process.

foreign investors and is blessed with natural resources.”

“We welcome new investors to come and operate

Mr Wabuyele

from our EPZs. The AGOA program and the

Chief Executive

COMESA market offers huge opportunities for investment. The country offers better security and

EXPORT PROCESSING ZONES AUTHORITY

stability to investors compared to most African countries.” Mr Albert Gumo

Mr Albert Gumo

Chief Executive

Chief Executive Athi River EPZ Viwanda Road, off Nairobi-Namanga

FIRESTONE EAST AFRICA

Highway P.O. Box 50563, 00200 Nairobi

Dr. S.K. Chatterji

Tel: +254-45-26421–6

Managing Director

Fax: +254-45-26427

Enterprise / Mombasa Rd. Junction

Email: info@epzakenya.com

P.O. Box 30429, 00100 Nairobi

Website: www.epzakenya.com

Tel: +254-20-530722/559922 Fax: +254-20-532989/533440

The Export Processing Zone Authority was established in

Email: info@ firestone.co.ke

November 1999 to offer an appealing investment climate

Website: www.sameer-group.co.ke

to investors looking to target the export market. Established in 1969, Firestone East Africa is a major The investors come from all over the world (mostly

manufacturing company in Kenya. The company’s factory

Europe and Asia) and benefit from numerous fiscal and

currently manufactures over 550,000 tyres, and a similar

tax advantages (ten-year tax holidays, stamp duty exemp-

number of tubes per year. The company also manufac-

tion, perpetual duty and VAT exemption on raw materials

tures flaps for use with heavy-duty tyres.

and machineries, facilitation of licensing and easier procedures etc.), as well as superior industrial and business

Firestone has developed the widest product range in the

infrastructure (ready factory buildings, water, sewage

region with products ranging from tube type and tube-

and electricity supply services, customs offices).

less passenger car and light commercial vehicle tyres to radial and bias truck and bus tyres. The range also

In six years the number of export processing zones in

includes tractor and grader tyres.

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Firestone is associated with the Bridgestone Corporation

(ICDC) is a key financial institution, wholly government-

and together the two have developed high-quality tyres

owned institution established in 1954. The corporation

suited for the East African weather, road and driving con-

consolidates and supports national economy through

ditions. A vast amount of tyre manufacturing technology

extending short-, medium- and long-term credit facilities

has also been transferred to the local professionals, who

to both private and public sectors, along with direct

have now learned the skills of the trade.

equity funding of several big projects. The corporation mandate includes provision of venture capital and equity

The characteristic bright red and white branding has

finance, corporate large loan scheme, small and medium

become synonymous with a tyre shop in East Africa and

loans and consultancy services.

remains one of the most recognised brands in East Africa. ICDC in partnership with both local and foreign private Firestone currently exports nearly 30% of its production

investors has played an important role as a provider of

to the East African and the larger COMESA market. The

investment capital to industrial and commercial ventures.

liberalisation of the East African economies has increased competition in the tyre market with nearly all tyre brands

In partnership with other promoters, ICDC has co-

now being available in Kenya. However, with the unique

invested in various leading commercial and industrial ven-

mix of the highest international tyre standards, the

tures in Kenya. Accordingly, this has enabled the

wealth of local experience and internationally reputed

Corporation to harness the resources and expertise of

quality management systems, the company continues to

multi-national organisations in the promotion and finan-

lead the way in quality tyre production with an overall

cing of joint-venture projects.

market share of more than 50% in value and a turnover of KSH3.2 billion. The company is ISO 9001:2000 Quality

The Corporation’s equity investment portfolio has been

Management System and ISO 14001 Environment

undertaken through joint ventures with local and foreign

Management System certified.

partners. ICDC has invested in a cumulative total of 105 companies in its equity portfolio.

Firestone has recently invested KSH150 million in stateof-the-art tubeless radial truck and bus tyre assembly

The projects financed include some of Kenya’s well-esta-

machine. The company is also investing heavily in moder-

blished companies such as Uchumi Supermarkets, AON

nising the existing production facilities and increasing the

Minet Insurance Brokers, Eveready Batteries, Kenya Wine

production capacity to cater for the anticipated high

Agencies, Industrial Development Bank, Development

growth in the export business.

Bank of Kenya, Kenya National Trading Corporation (KNTC), Rivatex, Kenatco Taxis and General Motors (K)

INDUSTRIAL AND COMMERCIAL DEVELOPMENT CORPORATION (ICDC)

Ltd. In line with the current Government’s privatisation pro-

Mr Munene

gramme, the Corporation has fully or partially divested

Managing Director

from 35 subsidiary and associate companies. Some of the

Uchumi House

companies that the Corporation has divested from

P.O. Box 45519, 00100 Nairobi

include EAI (now Unilever Kenya), Firestone, Milling

Tel: +254-20-29213

Corporation of Kenya, Kenya Cashew nuts, Kenya

Fax: +254-20-333880

Industrial Plastics, etc.

Email: icdcexe@africaonline.co.ke Website: www.icdc.co.ke

Through

its

branch

network

countrywide,

the

Corporation has assisted over 15,000 small- and The Industrial and Commercial Development Corporation

medium-sized enterprises distributed in all regions of the

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country and covering diverse sectors of the economy. The

of investors. In this regard, investors will no longer be

cumulative amount disbursed to these enterprises is in

subjected to long and tedious procedures in processing

excess of KSH2 billion.

their applications for them to do business in Kenya.

As Kenya progresses toward the Newly Industrialized

The main aim of the investment law is to harmonise rules

Country (NIC) status, substantial investments in the

and regulations pertaining to investments as they

industrial sector are required. Credit availability and allo-

currently exist in various statutes. The law will make it

cation to the private sector is essential. ICDC through co-

simple for an investor to know what is offered in terms of

financing, plays a key role in flow to projects, indigenisa-

benefits, incentives, security of investment and guaran-

tion of business, capital formation, regional dispersion,

tees.

and therefore economic development of the country. The investment law has created a National Investment

INVESTMENT PROMOTION CENTER (KENYA INVESTMENT AUTHORITY)

Council. This Council has been established to ensure that investment issues are discussed at very high levels and the president or a minister designated by him heads it.

Mr Luka Obbanda

The investment law no doubts underscores the impor-

Ag. Managing Director

tance of the promotion of an enabling investment envi-

Harambee Avenue, National Bank Building, City Square

ronment in Kenya.

8th Flr

KENYA BUREAU OF STANDARDS (KEBS)

P.O. Box 55704, 00200 Nairobi Tel: +254-20-221401–4 Fax: +254-20-243862

Eng. John Masila

Email: info@investmentkenya.com

Managing Director

Website: www.investmentkenya.com

Off Mombasa Rd, on Kapiti Rd P.O. Box 54974, 00200 Nairobi

IPC was established in 1986 with the main objective of

Tel: +254-20-605490/69028000

promoting private investments in Kenya. It has been res-

Fax: +254-20-609660/604031

ponsible for facilitating the approval and licensing of new

Email: jmasila@kebs.org

investment projects. On achieving project approval, the

Website: www.kebs.org

Centre has been issuing a Certificate of General Authority that allowed investors immediate implementa-

The Kenya Bureau of Standards (KEBS) was established in

tion of their projects while processing other required

1974 with the objective of protecting Kenyan consumers

licences.

against substandard goods. Since its inception, KEBS has coordinated the development of over 4,000 Kenya

In 2004, the Kenya Investment Act was passed. This law

Standards, which have created confidence on the quality

provides for the transformation of Investment Promotion

of Kenyan goods.

Centre (IPC) to Kenya Investment Authority (KIA). KIA will now be the focal point for purposes of registering and

Kenya Standards are formulated by technical committees

facilitating investments in Kenya. Thus KIA will operate a

constituted from experts representing various interests

“one stop” office for prompt acquisition of permits, cle-

such as producers, consumers, technologists, research

arance, approvals and registrations as may be required by

organisations and testing organisations, in both the pri-

investors.

vate and public sectors.

It is envisaged that the Investment law will reduce bure-

Beside its primary function of regulation, KEBS is a trade

aucratic constraints that have in the past stood in the way

facilitator. The aims and objectives of KEBS include pre-

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paration of standards relating to products (measure-

tructuring process. The Bureau has revamped its vision,

ments, materials, processesâ&#x20AC;Ś), and their promotion at

developed a new strategic plan, streamlined its structure,

national, regional and international levels. KEBS assists in

and refocused on its core functions for better efficiency

the implementation of quality management systems in

and improved customer service.

the industry and commerce by certifying industrial products, assisting in the production of quality goods, ins-

KEBS has opened new regional offices, established a ser-

pecting the quality of imports at ports of entry, improving

vice standards department to develop standards for the

the measurement accuracies and disseminating informa-

service sector, opened a counterfeit office, increased the

tion relating to standards. KEBS also provides its clients

volume of standards developed, and worked on the har-

with training and consultancy services in standardisation

moniszation of standards at the East African Community,

of goods or services.

COMESA, and international levels. Last but not least, the Bureau has established a Kenya National Accreditation

KEBS provides both product and management system

third party service, to ensure national benchmarking of

international certification, such as ISO 9001 (Quality

Kenyan conformity assessment service providers (labora-

Management Systems), ISO 14000 (Environmental

tories, inspection bodies, calibration) and management

Management System), HACCP (Hazard Analysis Critical

systems certification services, to facilitate acceptance of

Control Point) and OHSAS (Occupational Health and

Kenyan exports internationally.

Safety). KEBS has also developed the Diamond Mark of Quality Scheme, which assures consumers that the pro-

In July 2005, KEBS will undertake Pre-Shipment

ducts bearing the Mark have been tested and certified

Verification of Conformity to Standards (PVoC) for all

and may be purchased with assurance of quality.

imports at the Country of origin to ensure the quality of

Over the past two years KEBS has undergone a major res-

goods entering Kenyan markets.

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I N D U S T RY & T R A D E

In the fore coming years, KEBS intends to focus on food

KENYA NUT COMPANY

safety with the radiation inspection of food entering and going out the country. KEBS will also partner with the pri-

Mr Sato

vate sector to ensure that environmental standards for

Managing Director

motor vehicles are implemented. In that context, KEBS

Industrial Road, Thika

has developed a Petrol Monitoring unit to ensure the

P.O. Box 52727, Nairobi

quality of fuels entering the country and at petrol sta-

Tel: +254-20-218200

tions.

Fax: +254-20-217824

“The Kenya Bureau of Standards intends to rise up

Email: kenyanut@africaonline.co.ke

to the challenges to meet the expectations of our customers and serve them effectively.”

The Kenya Nut Company (KNC) was established in 1974

Eng. John Masila

and presently ranks among the top five macadamia pro-

Managing Director

cessors in the world. It is the backbone of the macadamia industry in Kenya. With over 4,000 employees, the company operates seven farms on over 8,000 acres. Over 50,000 small-scale farmers are organised through the company’s own field operation network, which involves over 100 field officers Tusker, Kenya’s favourite beer!

I N D U S T RY & T R A D E

eBizguides Kenya

and 18 field offices. KNC operates a complete production

Email: info@magadisoda.co.ke

system, from seedlings to ready-for-sale products and a

Website: www.magadisoda.co.ke

worldwide market networking. The Magadi Soda Company was established in 1911 and KNC has been developing the industry with the intention

is now part of the Brunner Mond Group Ltd.

of establishing Kenya as one of the world’s leading nut processors. Roasted macadamia nuts have become a

Magadi Soda Company is a producer of high quality

popular snack everywhere, and can be found in hotel

sodium carbonate and salt, used in many areas such as

mini-bars and top supermarkets. The company has diver-

glass manufacture, detergent manufacture, industrial

sified its production to include chocolates, cookies and

chemical, leather tanning and paper manufacture.

ice-cream toppings, thus creating a greater demand for macadamia nut products worldwide.

The operations at Lake Magadi are situated 120km southwest of Nairobi. The trona deposit in Lake Magadi

The KNC group has now diversified its operations to

is constantly renewing itself by natural means. Rainfall in

include cashew nut processing, tea packing, coffee and

the Rift Valley drains underground and is heated geother-

wine production. Coffee and macadamia are comple-

mally. The hot water dissolves chemical compounds of

mentary crops as they share the same fields and their

sodium, which occur in the underground rock strata. The

peak production seasons do not overlap. KNC grows

solution comes to the surface in the form of hot, mildly

100% Arabica coffee and macadamia trees together on

alkaline springs, which can be found all around the edge

its farms. It also produces coffee and macadamia see-

of the lake. The company recovers trona from the surface

dlings for its own use and for distribution to out-growers.

deposit and converts it into sodium carbonate (soda ash).

Ripe coffee berries grown on the KNC farms are pro-

Product is transported by rail to Mombassa for onward

cessed in the Thika Coffee Mills, one of the group com-

shipping to the markets. Over 90% of the company pro-

pany, with a milling capacity of 20,000 metric tons of

duct is exported to its principal markets of South East

parchment coffee per year per shift. The coffee is sorted,

Asia, Indian sub-continent, Africa and the Middle East.

milled, and packed for export and local market.

With over 450 employees, the Magadi Soda Company is Africa’s largest manufacturer of soda ash and one of

KNC also roasts and packages its own blends of coffee

Kenya’s leading export earners.

under its trade mark “Out of Africa”. The existing soda ash plant has a capacity of 350,000 The Company’s philosophy is to provide a superior qua-

tonnes p.a. and a total of 40,000 tonnes of industrial salt

lity product through careful cultivation and modern pro-

is produced every year. A new plant commissioned in

cessing techniques. Macadamia nuts and coffee from the

2006 will be built to produce a product free of sodium

company’s farm are certified organic and the processing

fluoride.

of all “Out of Africa” products is done in a HACCP environment.

SAMEER GROUP OF COMPANIES

MAGADI SODA COMPANY

Mr Meraldi Group Executive Chairman

Mr James Mathenge

P.O. Box 55358, 00200 Nairobi

Managing Director

Tel: +254-20-4449/872

Lake Magadi

Fax: +254-20-4441492

P.O. Box 1, Magadi

Email: info@sameer-group.co.ke

Tel: +254-20-6999000–9

Website: www.sameer-group.com

Fax: +254-20-6999358

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I N D U S T RY & T R A D E

Sameer Group is a holding company that stands as one

tion technology), Celtel (mobile communication),

of the foremost economic forces in Kenya with major

Firestone, Ryce Motors and Yansam Motor.

investments and successful operating companies in all key sectors of the economy.

Sameer Group companies have in common a dynamic culture, striving for strong performance in their respec-

The Group has a strong presence in the fields of trans-

tive sectors, as well as a strong commitment in corporate

port, agriculture, construction, finance, energy and

social responsibilities.

power, information technology and mobile telecommunications in East Africa.

In 1999, Sameer Group opened the Sameer Industrial Park, Kenya’s first multi-factory export processing zone

The diverse individual businesses that operate in these

(EPZ).

areas under the stewardship of Sameer Investments include Sasini Tea and Coffee Ltd, H. Young & Co (cons-

The companies currently operating in Kenya’s first multi-

truction), Ever Ready and Ryce Engeenering (Energy), First

factory EPZ, Sameer Industrial Park enjoys ten year’s total

American Bank of Kenya, Equatorial Commercial Bank

exemption from corporate tax, exemption from duty and

(Finance), OEL Sysnet, Swift Global, KDN, ICL (informa-

VAT on imports of capital and raw materials, exemption

The Kenyans are natural entrepreneurs at all levels

I N D U S T RY & T R A D E

eBizguides Kenya

from VAT on locally sourced inputs and from foreign

recently undertaken a fundamental restructuring strategy

exchange control regulations. These are no restrictions

to put Uchumi back on its feet.

management

agreements

ownership.

Preferential access to European and USA markets and

The company has sold all the non-essential assets on its

large local markets via PTA and COMESA is another

books and has closed ten loss-making outlets which were

major benefit.

not strategically located. Uchumi is also in the process of raising KSH1.5 billion through a rights issue.

During the last decade, companies from Kenya, Hong Kong, the Philippines, Korea, India, the Middle East,

Uchumi has also undertaken the complete revamping of

France and the UK have set up facilities in the Sameer

its stores with European style in-store bakeries and deli-

Industrial Park. Sameer is planning to expand its present

catessen set up in each outlet and is launching a new

facilities to cater for increased demand.

marketing strategy to strengthen the brand image.

“Sameer Group is the perfect partner for any busi-

On a third phase, Uchumi is planning to develop a fran-

ness interested in the last great land of opportu-

chise business model. The franchisees will take advantage

nity. With 30 years of experience in the very heart

of Uchumi distribution network, as well as the supplier

of Kenya’s industrial and commercial development,

relationships. Uchumi will help its franchisees in many

the Sameer Group is in a unique position to offer

ways including selecting a site, negotiating the lease, set-

advice and practical help to all those who wish to

ting up the store, initiating the marketing programmes to

invest in the future of Africa.”

introduce the new store to the targeted customer base

Mr Meraldi

and so on. In return, Uchumi will benefit by being present

Group Executive Chairman

in several locations without the operating costs.

UCHUMI

Once the consolidation period over, Uchumi has longterm plans of regional expansion through franchises in

Mr John Masterten-Smith

East Africa.

Managing Director Head Office, Yarrow Rd, Off Nanyuki Rd, Industrial Area,

“We are looking to achieve World Class Stores with

P.O. Box 73167, Nairobi

World Class standards. Let the consumer vote with

Tel: +254-20-650707/550200

its pocket.”

Fax: +254-20-554717

Mr John Masterten-Smith

Email: jsmith@uchumi.com

Managing Director

Uchumi was established in 1976 and has grown to become Kenya’s first supermarket chain with 17 branches across the country (and one in Uganda) and 900 employees. With an estimated market share of 35%, Uchumi remains the favourite brand in Kenya. Uchumi means “economy” in Kiswahili; indeed, the philosophy of the chain is to support the local economy, and Uchumi sources 90% of its products locally through 500 local farmers and producers. Over the past few years, the supermarket chain has gone through difficult times. The new management has

178

P U B L I C

W O R K S

“If you do not fill up a crack, you will have to build a wall” Kenyan proverb

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eBizguides Kenya falls under the Ministry of Environment and Natural

ROADS

Resources. In general, each agency involved in the roads sub-sector – the three government ministries, local

In Kenya, as in most of sub-Saharan Africa, roads are

authorities, and Kenya Roads Board (KRB) – has its own

managed by government departments. The Ministry of

objectives and funding sources.

Transport (MOT) has nominal overall responsibility for Kenya’s policies involving planning, designing and mana-

Although extensive compared with its East African neigh-

gement of rail, road, air and maritime transport. In prac-

bours, Kenya’s road network has become increasingly

tice, however, the MOT has very little involvement in the

dilapidated in recent years. This has been partly due to

roads sector. The Roads Department of the Ministry of

tight constraints on the government’s capital works pro-

Roads and Public Works is responsible for planning,

gramme owing to the suspension of donor finance,

designing, constructing and maintaining the classified

which has become a serious impediment to export per-

network, over 63,000km of roads. The Kenya Wildlife

formance because many products need to be transported

Service (KWS) is in charge of roads in the national parks.

from the agricultural areas to the main shipping and dis-

The rest of the network is administered by either munici-

tribution areas of Mombasa and Nairobi. Kenya’s total

palities or county councils, which are under the Ministry

road network is nearly 150,000km long and connects

of Local government, or the Forest Department, which

most parts of the country. Over 80% of Kenya’s total

33% of the road network requires rehabilitation

eBizguides Kenya

PUBLIC WORKS

passenger and freight traffic use road transport, although

and upgrade international trunk roads. The KRB will also

many feeder roads in rural areas need serious attention.

facilitate the construction of bypasses to reduce congestion, especially on classified roads, and designate and

In order to deliver a better road infrastructure, the

enforce appropriate parking bays in urban areas and sto-

government proposes to improve the management of

pover places on major highways. Other priorities will

interventions in the roads sub-sector through the KRB

include co-operating with other stakeholders to install,

and district roads committees (DRCs). The KRB will

rehabilitate and maintain traffic lights and road signs,

oversee the maintenance of all major roads, rehabilitate

and constructing footpaths and footbridges along roads

Modern buildings are abundant in the capital

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eBizguides Kenya

leading to, and out of, densely populated areas and

a reasonable amount of time. However, in the last two

pavements for use by the disabled.

decades, the urban housing scene in Kenya has deteriorated as a result of Kenya’s poor economic performance,

The district roads committees will oversee the mainte-

resulting in a serious housing deficit. This has led to the

nance and upgrading and construction of rural access

proliferation of informal settlements, poor standards of

roads, footpaths and bridges. In all of this local commu-

construction of housing units, construction of unautho-

nities will be actively involved in the design and imple-

rised extensions in existing estates, and more conflicts

mentation of roads projects. Other priority areas in the

between tenants and landlords especially in low-income

sub-sector include the intensification of measures to

areas. While in the 1980s the housing shortfall was about

enhance quality control and service delivery and dedica-

60,000 units per annum, the number has recently incre-

ting more resources to research and development. Axle

ased to about 150,000 units per year. To satisfy its urban

load limits will be strictly enforced, and the education of

housing needs, the government plans to adopt innova-

stakeholders intensified. Appropriate appraisal methods

tive and proactive strategies to meet its pledge to build

in maintenance and construction of roads will also be

150,000 housing units per year, which translates to an

enforced and delays in auditing and accounting for road

average of 410 units per day.

maintenance funds will be minimised. It is against this backdrop that the government convened Investment in road construction and maintenance has

a two-day high level “Urban Housing Workshop” in

continued to increase with the creation of the Road Levy

2004. The objectives of the workshop were to provide

Fund, which requires the payment of about 10% of the

input for the Urban Housing Development Program for

fuel pump price to the fund. Funding for roads was fur-

the period 2003–2007 and to formalise the urban hou-

ther accelerated in 1995 when the IMF and World Bank

sing section of the Draft National Housing Policy.

set aside funds for repair of roads destroyed by the El

Officially opened by President Mwai Kibaki and attended

Nino rains (Economic Survey, 1996).

by Kenya’s Minister for Roads, Public Works and Housing, and Kenya’s Minister for Local Government, the workshop targeted high ranking officials from these two ministries in addition to housing developers, contractors, members of the Institute of Engineers of Kenya, surveyors, architects, Kenya’s Housing Finance and building societies. Representatives of development partners, donor agencies, UN Habitat and the World Bank were also in attendance. Kenya’s long-term vision is to provide individuals and families with adequate and affordable shelter, and the necessary infrastructure and basic services to support such shelters. One crucial and common shortcoming in the housing sector is the inadequacy and limitation of housing

HOUSING

finance mechanisms. The fact that conventional housing finance usually works in favour of middle- and high-

Quality, reasonably priced residential and office accom-

income groups is reflected in Kenya’s highly segmented

modation is readily available in Nairobi and Mombasa.

housing markets. The poor-, low- and even middle-

There are new housing developments, mostly with ade-

income populations have no access to conventional hou-

quate utilities. Utility connections – telephone, fax, telex

sing finance systems and therefore build their own

– to existing office space can usually be accomplished in

houses progressively over long periods of time. In an

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effort to meet housing finance needs, the government intends to establish a housing levy similar to the National

CONSTRUCTION

Social Security Fund (NSSF) to enable the National Housing Corporation to support the construction of

The composition of construction output has changed.

middle and low-cost housing. This will include the deve-

Under the structural adjustment programmes (SAPs),

lopment of the legal and institutional mechanisms for the

which began in the late 1980s, government development

establishment of a secondary mortgage market, to raise

expenditure was heavily curtailed as part of the austerity

long-term finance through mortgage-backed securities,

measures required by the donors (Economic Survey

and review the taxation rates on building materials to

2000). Investment in buildings was particularly affected,

reduce construction costs, as building materials consti-

as there are numerous stalled projects that have

tute a large component of housing construction costs.

remained unfinished for over ten years. The public sector is no longer a major client in the building sub-sector.

PUBLIC WORKS

Repairs and maintenance have also been affected, with

The Ministry of Roads and Public Works is charged with the responsibility of planning, designing, implementing and maintaining public roads. In addition, such essential services as materials research and testing, mechanical and transport operations, staff training for roads and building sectors, provision of electrical services, inventory of government property and supplies, fall within the Ministryâ&#x20AC;&#x2122;s jurisdiction. The mission of the Ministry is to facilitate provision and maintenance of quality infrastructure, mainly in roads and other public works, so as to promote and sustain socio-economic development.

Cement Plant in Athi River

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eBizguides Kenya

very minimal public works tenders being awarded for

there was a need to make some drastic changes in the

these tasks. Private sector clients now predominate in the

administration of the force. This led to the replacement

building construction market. By 1999, the private sector

of the expatriate officers in the senior ranks by Africans.

accounted for more than 90% of building construction.

Since then, the Force has had tremendous achievements in various fields of operation. Among them, due to the

SECURITY ISSUES

increase in criminal activities and in line with the police resolve to deal effectively with security threats and to

From independence up to the mid-1980s, Kenya was one

bring down crime to minimal levels, various specialised

of the most political stable countries in the East African

units have been formed. They include the Anti-Stock

region. The stability of the country attracted foreign

Theft Unit, the Anti-Motor Vehicle Theft Unit, the

investment and assured a steady economic growth.

Tourism Police Unit, the Anti-Corruption Police Unit, the

Unfortunately a wave of criminal activity shot up, attribu-

Presidential Escort Unit, and the Anti-Terrorism Police

table to the quest for pluralistic politics, unemployment

Unit. The Kenyan Police Force was established to main-

and poverty. Violent tribal related conflicts took place in

tain law and order, preserve peace, protect life and pro-

the early 1990s with an estimated 2,000 people losing

perty, prevent and detect crime, apprehend offenders,

their lives. Some tribes have organised terror gangs such

and enforce all laws and regulations with which it is

as the infamous “Mungiki”, a sect that in the recent past

charged.

caused chaos and unrest.

PRIVATE SERVICES The new government has been committed to creating a competent police force free from political interference

The dissatisfaction with the police force has led to the

and capable of protecting and serving all Kenyans. Given

proliferation of alternative forces, which have now

the escalating problem of international terrorism, security

assumed responsibility for maintaining security and

continues to be given uncompromising attention by the

order. Today, most investors employ a 24-hour guard,

government.

which adds significantly to the cost of services. The main security companies offer a variety of complimentary ser-

POLICE

vices from the provision of ambulances, rescue services, guard dogs and so on. Middle income Kenyans employ

The Kenya Police has its small beginnings in the period

private guards – “Askaris” – to watch their houses.

between 1887 and 1902, tracing its foundation on the Imperial British East Africa Company (IBEA Company) and

NEW DEVELOPMENTS

businessman Sir William McKinnon, who in the interest of his business found it necessary to provide some form

An ambitious KSH61 billion Police Reform Project was

of protection (security) for his stores along the coastline

unveiled by the government in 2005. The radical adminis-

of Kenya.

trative and policy changes were aimed at improving service and image, and making the force more “customer-

It is from this origin that the concept of creating a real

friendly”. The changes – targeting both the Kenya Police

police force was formed in Mombasa. Generally, police

and the Administration Police – will be implemented over

activities centred on the protection of the business of the

a five-year period. A new scheme of service will be put in

IBEA Company, where the strength was mainly of Indian

place to define career structures and duties for officers.

origin with a skeleton staff of some Africans, otherwise

After this, Kenya Police will change its name to Kenya

referred to as “Askaris”. During these early stages of the

Police Service – with emphasis on “service”.

small police force, its duties were negligible. Other proposals include the establishment of a police After Kenya gained independence from Britain in 1963,

academy and centre of excellence, with a modern curri-

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culum for middle and top management staff. With these

in Kenya’s tourism industry. Under the umbrella of the

measures there should be a gradual improvement of the

Kenya Tourism Federation (KTF), the Kenyan government

current police–population ratio, through the annual

has taken the issue of tourist safety very seriously and

recruitment of more officers in the next five years. This

formally constituted the Tourist Police Unit (TPU) to func-

increased recruitment should be matched by the develop-

tion as a distinct and separate force within the police

ment of housing, office space and equipment. The police

force.

will be required to lease, encourage lease buying and construct more houses in order urgently to address the accommodation crisis facing the department. The overall goal is to make Kenya a safe country for citizens and investors. In addition Kenya will install Tourist Police. Officials from the Kenya Tourist Board (KTB) announced in March 2005 that, “Security is a primary consideration for any person, • and this also applies to holidaymakers worldwide. Recent global events have heightened security awareness among international travellers and the tourism industry stakeholders in general.” The latest move, according to the KTB, comes as a result of appeals from the stakeholders Kenya has a total road network of around 150,000km

PUBLIC WORKS

eBizguides Kenya industry and industrial minerals.

MAIN COMPANIES ARM is setting up a Sodium Silicate Plant in South Africa,

ATHI RIVER MINING (KENYA) LTD (ARM)

which was commissioned to start commercial production by July 2004.

Mr Pradeep Paunrana

BAMBURI CEMENT

Managing Director Chiromo Road, Westlands P.O. Box 41908, Nairobi

Mr Didier Tresarrieu

Tel: +254-20-744617

Managing Director

Fax: +254-20-744648

6th floor, Kenya Re-Towers, Upper Hill, Off Regati Road,

Email: arm@swiftkenya.com

P.O. Box 10921, 00100, Nairobi

Website: www.armkenya.com

Tel: +254-20-2710459/487/510 Fax: +254-20-2710581/2

Athi River Mining (Kenya) Ltd (ARM) was established in

Email: didier.tresarrieu@bamburi.lafarge.com

1974 as a mineral extraction and processing company

Website: www.bamburi.lafarge.com

and is now a public limited company quoted on the Nairobi Stock Exchange. ARM is in the business of the

Founded in 1954, Bamburi Cement celebrated its golden

manufacture of cement, quick and hydrated lime, sodium

jubilee in 2004. The company, a subsidiary of French-

silicate, industrial minerals, special cements and building

based Lafarge, the world’s leading manufacturer of buil-

products and fertilisers. ARM Ltd has two plants in

ding materials-cement, gypsum, aggregates and con-

Kenya: Kaloleni Plant – manufacturing lime and cement,

crete, has become East Africa’s biggest producer of

and Athi River Plant – manufacturing industrial minerals,

cement and building materials with a yearly production

silicate, special cements and fertilisers.

of 2.3 million tonnes. Bamburi, is the market leader in cement sales (57% market share) and one of the largest

The cement division is currently producing 5,500 tonnes

manufacturing export earners in Kenya (28% of the pro-

of cement per month. The cement is sold under the

duction is exported to the Comoros, the Congo,

brand name Rhino Cement and rapidly gained market

Madagascar, Mauritius, Reunion, Seychelles, Sri Lanka

acceptance. Rhino Cement now accounts for approxima-

and Uganda).

tely 5% of the Kenyan cement market and comprises The company first started operations in Mombasa

approximately 60% of the Company’s turnover.

(second largest cement plant in sub-Saharan Africa) and With a yearly turnover of US$16 million and 700 direct

has recently built a clinker grinding plant in Athi River

employees, the company has grown to become a key

(Nairobi).

player of the industry. The company exports over 30% of its products to countries in the sub-Saharan African

The East African market is small, and the cement con-

region and is the only ISO-certified manufacturer of

sumption is significantly low (40 kg per capita per year

cement and lime in Kenya.

compared with 200kg in South Africa), but Bamburi is taking advantage of the high development potential of

ARM has signed a joint venture agreement for setting up

Kenya (development of concrete roads, paving blocks,

a lime plant in Mali with a capacity of 50 tonnes per day.

low cost housing and soil stabilisation) and the COMESA

This is to service the gold mines which are essentially the

market. Although competition with the Egyptian cement

same as those being serviced by ARM in Tanzania. ARM

manufacturers is stiff, Lafarge plans to consolidate its

owns 67% of ARM (Tanzania) Ltd, which has a plant in

position and presence in Africa and the growth of

Tanga that manufactures lime for the gold mining

Bamburi and Hima in Uganda are key to this strategy.

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As part of a realignment strategy, Bamburi has adopted

Rwanda, and supplies a number of major companies in

the international standards set by the Lafarge group on

Europe, Japan and Australia, as well as a number of local

production processes, safety, product quality, and effi-

clients such as governments, NGOs, farms, hotels and

ciency, which make Bamburi a very profitable company

individuals.

despite local constraints (high power costs). With a turnover of over US$12 million, and a growth rate Bamburi also aims to be a “fair player”, and has deve-

of over 30% in 2003, Davis & Shirtliff is the market leader

loped “best practices”. The company has implemented

in the region and aims to expand to new geographical

various initiatives to help communities, and promotes

areas (Central and sub-Saharan Africa).

sustainable development through quarrying rehabilitation and biodivesity conservation (Haller Park initiative on

The company is renowned for its high-quality standards

the coast).

and excellent customer support services, and has been recently certified ISO 9000. Davis & Shirtliff has been

“There is a need for more focused and shared pri-

designated “Company of the Year” in 2002 and 2003,

vate sector initiatives through promoting entrepre-

and currently ranks as the seventh best company in

neurship and innovative solutions. Competition has

Kenya.

become international and only the players benefi-

EAST AFRICAN PORTLAND CEMENT

ting from a level playing field will grow.” Mr Didier Tresarrieu

Mr Mapelu

Managing Director

DAVIS & SHIRTLIFF

off Namanga Road, Athi River P.O. Box 40101, 00100 Nairobi

Mr David Gatende

Tel: +254-45-20627, 22777

General Manager

Fax: +254-45-20406

Dundori Road

Email: info@eapcc.co.ke

P.O. Box 41762, 00100 Nairobi

Website: www.eaportlandcement.com

Tel: +254-20-558335 Fax: +254-20-536901

The company was established in Kenya in 1933 with one

Email: gatende@dayliff.com

small cement mill. The Initial production capacity was

Website: www.dayliff.com/

60,000 tons of cement per annum.

Davis & Shirtliff Group, founded in 1946, is the leading

Today, EAPCC has a production capacity of 600,000

water supply equipment specialist in East Africa, and dis-

tonnes and isone of the leaders on the local market.

tributes high quality equipment for Pumps (70% of the

Portland cement is sold under the brand name Blue

activity), water treatment, swimming pools and solar.

Triangle Cement, a brand of choice throughout Kenya and the entire COMESA region. The Blue Triangle Brand

Davis & Shirtliff’s main activity is the distribution of water

is known all over Kenya as a symbol of quality and relia-

pumps; the company sources from the world leader

bility. East African Portland Cement Products has built

manufacturers all over the world and distributes a com-

the foundations of housing, education, health, tourism,

prehensive range of pumps for borehole, booster, irriga-

transport and communication, and hydro-electric power

tion, drainage, sewage and domestic applications.

projects throughout Kenya. The company provides highquality cement products suitable for all construction pur-

Davis & Shirtliff operates in Kenya (five branches),

poses with high standards of service and support.

Tanzania (two branches), Zambia (two branches) and

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After the announcement of the governmentâ&#x20AC;&#x2122;s new

H. YOUNG & CO.

expansion plans in road construction and housing, the cement industry is anticipating a period of growth in the

Mr Schwartzman

cement market. With three key players in the cement

Managing Director

industry in Kenya, plans are under way to expand the

Funzi Road, Off Enterprise Rd, Industrial Area

production capacity to meet the new demands. East

P.O. Box 30118, Nairobi

Africa Portland Cement has also ramped up sales and

Tel: +254-20-530145, 530150

marketing activity to tap into new markets.

Fax: +254-20-531056 Email: hyoung@hyoung.co.ke

The rationalisation of tariffs within the East African

Website: www.sameer-group.com

Community also gives EAPCC a foothold in the East African region. Over the last eight months, EAPCC has

H. Young & Co. was originally established in England in

managed to expand the sales in Uganda by 25%. This is

1880 and began operating in East Africa in 1951 as a

playing a major role in the expansion plans for the region

structural steel fabricating company. Over the years, H.

beyond East Africa: Rwanda, Burundi and Congo â&#x20AC;&#x201C; which

Young has grown to be one of the largest civil, electro-

EAPCC is eyeing as potential markets.

mechanical and structural engineering companies in East Africa. With a yearly turnover of US$23 million, H. Young employs over 1,400 people and has the capacity to produce 4,800 metric tonnes of structural steel and up to 65,000 cubic metres of concrete per year. Largescale construction project in Nairobi

eBizguides Kenya

PUBLIC WORKS

The decision to invest in electro-mechanical technology

cations and GSM networks), electro-mechanical installa-

and in the Civil Works Division propelled the company

tions (installation of process equipment, high-pressure

into the field of integrated engineering contracting and

steam piping, high-pressure pipe work for geothermal

turnkey projects. In response to an era of invention,

fluids in geothermal power stations, heavy crane age and

based primarily on electronics and information techno-

water-tube boiler installations).

logy, the company has attained international recognition and awards in the application of engineering IT packages.

The current projects include the rehabilitation of roads in Uganda, infrastructure for GSM networks on 52 sites in

Through joint ventures and alliances with international

Kenya, the construction of a seven-storey building in

companies, H. Young has gained technological superio-

Nairobi, the construction of the Sondu-Miriu Hydro

rity and undertaken contracts in highly specialised areas

Electric Power Station and the expansion of Mumias

such as construction of power stations, sugar factories,

Sugar.

gold mines, cobalt mines, cement factories and telecommunication infrastructure.

The company has invested heavily in in-house process quality control and quality assurance. This includes inves-

The company has executed projects of considerable mag-

tments in non-destructive testing equipment such as

nitude in various field such as civil works (heavy earth-

radiography, ultrasonic testing and liquid/dye penetrate

works and excavations, heavy foundations for process

and in the employment of qualified control and quality

equipment, power station turbines and power houses,

assurance managers.

go-downs, foundations for tank farms, factory buildings), structural steel works (supply, fabrication and installation of all structural steel for factories, go-downs, fuel and water storage tanks, towers and masts for telecommuniKenyaâ&#x20AC;&#x2122;s dirt roads are popular with rally car races

PUBLIC WORKS

eBizguides Kenya

INSTARECT LTD

Email: info@kroadsboard.go.ke Website: www.krb.go.ke

Mr Peter Hays Managing Director

The Kenya Roads Board (KRB) was established in 2001

P.O. Box 44053, Nairobi

with the mandate to develop and manage the road

Tel: +254-20-551270

infrastructure in the country, oversee the maintenance of

Fax: +254-20-551277

all major roads, rehabilitate and upgrade international

Email: phays@africaonline.co.ke

trunk roads and facilitate the construction of bypasses to

Website: www.instarect.com

reduce congestion on classified roads. The Board has faced various challenges including lack of adequate fun-

Instarect Ltd was established in 1991 with the aim of pro-

ding, diversion of funds meant for road maintenance,

viding quality perimeter protection. The company now

poor workmanship, overloading by heavy duty commer-

offers the widest range of security and perimeter protec-

cial transporters.

tion products in the country (concrete walls, electric fencing, razor wire, palisade steel fencing and so on). With

Kenya’s new administration has pledged to rehabilitate

more than 700km of fencing installed in Kenya, peri-

Kenya’s dilapidated road network and construct new

meter protection is Instarect’s core business (60%). The

roads network in order to accelerate the transport and

company has also developed automatic gate system to

distribution of goods and jump-start Kenya’s economic

complement the perimeter protection range.

growth. Kenya’s road network comprises 9,000km of bitaminised road, 27,000km of murram all-weather

Instarect has recently diversified in a leisure product line

roads, and 27,000km of non-classified roads. Its mainte-

with a shade range (shade netting, shade ports, umbre-

nance and management has huge market potential.

llas and shade sails), along with swimming pools and Jacuzzis.

The government and the Kenya Roads Board have started on the path of reforms that seek to enhance the availabi-

With over 140 employees, Instrarect is one of the market

lity of adequate resources to support road infrastructure

leaders, well known for the excellent quality of its pro-

construction,

ducts and after sales service.

enhance availability of adequate financial resources to

maintenance

and

management.

support road infrastructure management, private sector The company is currently diversifying in low-cost housing,

participation through concessioning is being introduced

which addresses a major issue in Kenya. The buildings are

for the first time in Kenya’s roads sector.

suitable for offices, residential houses and classrooms, and cost less than 2,800 to build in less than ten days.

The northern corridor route from Mombasa to

Instarect works with Bamburi Cement and Mabati Rolling

Nairobi–Kisumu–Malaba has been identified by the

Mills to construct buildings funded by private organisa-

government for concessioning. There are several roads

tions, NGOs and governments.

construction projects in the pipeline with donor funding already identified and others still without financial spon-

KENYA ROADS BOARD (KRB)

sorship.

Dr Frank N. Nyangaga

Kenya Roads Board has undertaken feasibility studies on

Managing Director

the possibilities of using soil stabilisers for road construc-

Kenya Re Tower

tion in Kenya.

P.O. Box 73718, 00200 Nairobi Tel: +254-20-2722865 Fax: +254-20-2723161

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PUBLIC WORKS

KNIGHT FRANK

Construction) was incorporated in Kenya in 1981 as an African-owned private limited liability company. The com-

Mr Ben Woodhams

pany is today one of the largest building and civil engine-

General Manager

ering contractors in East Africa, able to undertake cons-

Lion Place, Waiyaki Way, Westlands, Nairobi

truction works of almost any size and type.

P.O. Box 39773, 00623 Nairobi Tel: + 254-20-4440174/5/6

With an average annual turnover in the region of US$65

Fax: + 254-20-4440040

million, Mugoya has branches in Tanzania and Uganda,

Email: ben.woodham@knightfrank.co.ke

and has successfully carried out a number of outstanding

Website: www.knightfrank.co.ke

and large scale projects in East Africa.

Knight Frank, a UK-based company, was established in

Mugoya Construction has completed the construction of a

Kenya in 1996 and provides its commercial and residen-

38-storey building, the Times Tower, in Nairobi which now

tial clients with a wide range of services, such as commer-

stands as the tallest building in East Africa. The company

cial and residential management, valuation, forecasting,

was also commissioned for the construction of the new

consultancy services, and management of large portfo-

American embassy, the new Canadian embassy, and the

lios. Property management accounts for about 50% of

refurbishment of the Co-operative Bank House in Nairobi,

the business.

Mugoya Construction is currently in the construction of bridges in Machakos, the construction of 5,000 housing

Knight Frank has established itself as a leader in Kenya,

units for the NSSF (National Social Security Fund) on Nyayo

and major companies and institutions (embassies,

Housing Estate, the repair and resealing of 38 kilometres

Safaricom,

Barclayâ&#x20AC;&#x2122;s,

of bituminous surfaced road for the Ministry of Roads and

PricewaterhouseCoopers and so on) have entrusted

Public Works, the reconstruction of the hardstandings of

Knight Frank to provide them with customised solutions

SDV Transamiâ&#x20AC;&#x2122;s depot near Nairobi International Airport,

and independent advice.

and the construction of new offices at Nairobi South

Kencel,

Citibank,

Power Plant for Ibera Africa. The real estate market in Kenya has recently been suffering from oversupply and high interest rates (due to the

Mugoya has developed a revolutionary new construction

banks attitude towards risk); weak demand and high

product, Xenex Paving Systems. The system allows for

supply levels have led to decreased rental values, but the

maximum traffic of heavy loads with minimum impact or

market is on the rebound since the beginning of 2004.

wear on paved areas. With easy, low-cost mechanical paving, and a longer life, the Xenex system is a great

MUGOYA CONSTRUCTION AND ENGINEERING CO.

money saver. Mugoya has now introduced Xenex and has

Mr James Isabirye

NATIONAL HOUSING CORPORATION

used the system in the new Transami depot in Nairobi.

Managing Director Physical Prudential Building, 3rd floor, Wabera Street,

Mr Abok Odera

P.O. Box 67011, 00100 Nairobi

Managing Director

Tel: +254-20-228471

Aga Khan Walk

Fax: +254-20-214430

P.O. Box 30257, 00100 Nairobi

Email: maina@mugoya.com

Tel: +254-20-312147/9

Website: www.mugoya.com

Fax: +254-20-311318 Email: info@nhc.co.ke

Mugoya Construction and Engineering Co. (or Mugoya

191

PUBLIC WORKS

eBizguides Kenya

The National Housing Corporation (NHC) first came into existence in 1953 under the British Colonial government,

NATIONAL WATER CONSERVATION AND PIPELINE CORPORATION

and was established in 1966 as a parastatal company. Eng. Shikalo The Corporation was given the mandate to promote

Managing Director

construction of affordable accommodation and low cost

P.O. Box 4099, 00100 Nairobi

houses for the middle- and low-income segment of the

Tel: +254-20-531044/6

market, assist in housing research, provide rural housing

Fax: +254-20-531049

loans to Kenyans, and set standards to other developers. Water supply and distribution is a critical requirement for Since its inception NHC has constructed more than

the development of Kenya. There is an urgent need to

40,000 housing units at a cost of over KSH4 billion.

address the institutional system in order to put in place effective institutional structures and processes for rural

For more than two decades NHC was the market leader

and urban poverty eradication. Access to water for

in the housing industry. However, since the early 1990s

human consumption, agricultural and livestock use is a

its market share and overall performance significantly

major problem in rural areas. There is currently little regu-

decline due to high interest rates affecting the housing

lation and water quality, availability and price varies subs-

industry. The cost of building inputs rose significantly

tantially.

while mortgage finance was beyond the reach of most Kenyans due to high interest rates. The housing industry

The Ministry of Water Resources is the lead actor in the

in Kenya has become more competitive with the entry of

management of most urban water supplies and all public

private sector developers, and NHC has been getting

rural water supplies. In 2005 the Ministry ran 67 urban

ferocious competition in its core markets from private

water supplies spread all over the country. In 1988 the

developers also focusing in low cost housing solutions for

government established the National Water Conservation

Kenyans.

and Pipeline Corporation (NWCPC) as a state corporation with the mandate to take over the management of

In order to create a competitive advantage, the

government-operated water supply systems that could be

Corporation has revised its corporate strategy to adapt to

run commercially.

the changing environment, and has adopted a more cusAll the water utilities are able to meet only a part of the

tomer focused strategy.

total water demand within their jurisdiction. The range As a result of the demand for housing in Kenya urban

varies between 39% and 88% and the rest of the consu-

centres, there is a backlog of 750,000 units, which the

mers have to go without adequate water or find alterna-

government intends to wipe out in five years by cataly-

tive water sources. Nairobi City, in spite of its inability to

sing the building of 150,000 units annually. In this effort

account for more than 50% of its waters, is still able to

the NHC aims to contribute 43,000 housing units (for

serve 88% of the residents. About 40â&#x20AC;&#x201C;70 % of the water

Nairobi) annually by 2009 at a cost of KSH10 billion per

produced is lost during transmission and distribution

annum. In order to fund the project, NHC has ventured

because of old pipes that are neither properly maintained

into the capital market to raise investment capital, and

nor replaced; and illegal connections.

has issued infrastructure housing bonds geared towards funding low cost housing. In 2005 NHC had seven pro-

In 2005 the National Water Conservation and the

jects under construction â&#x20AC;&#x201C; two in Nairobi for the cons-

Pipeline Corporation managed 30 urban water utilities

truction of 330 housing units, and two in Mombassa â&#x20AC;&#x201C;

serving a population of 2.3 million people, and 14 large

and projects in Eldoret and Kissumu.

water supplies in rural areas, serving a population of 1.5 million people. NWCPC administers eight regional offices

192

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PUBLIC WORKS

and 43 branch offices with about 1,500 employees for a

Security Group Kenya provides its clients with tailor-

total service area is 9,124 square kilometres.

made, cost-effective, efficient services. Major companies and institutions have entrusted Security Group Kenya,

National Water Conservation and Pipeline Corporation,

including 12 embassies, five banks and more than 60

on behalf of the Minister, carries out the development of

major corporate clients and Industries in Kenya.

state schemes that provide bulk water for use by licensees and other water services providers.

SECURITY GROUP KENYA Mr Niklas Brian Rogers General Manager, Kenya P.O. Box 18670, 00500 Nairobi Tel: +254-20-531276/82 Fax: +254-20-533045 Email: info@securitygroupke.com Website: www.securitygrp.com Security Group Kenya is a multinational security organisation with operations in Kenya, Tanzania and Uganda. With 33 years of experience and over 8,000 employees in East Africa, Security Group Kenya offers a large range of security services, such as central station monitoring, electronic security systems, perimeter protection and access control, radio alarm response services, static guards, dog patrols, cash services, satellite tracking systems, fire alarms and community security integration. Security Group Kenya also runs an ambulance and fire brigade unit. Guards are professionally trained in the Security Group Training School in accordance with an approved curriculum and formalised training programme that follows the recommendations of the South African Security Officers Board. The Security Group also operates the largest dog section in East Africa. Dogs are fully trained in attack at the dog training and kennel facility. Specialist capability such as tracking and sniffer dogs can also be provided. Security Group Kenya operates a documented quality assurance programme in accordance with ISO 9000 and is a founder member of the Kenya Security Industry Association (KSIA), the South African Security Association (SASA), and the British Security Industry Association (BSIA).

193

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eBizguides Kenya

194

T O U R I S M

â&#x20AC;&#x153;A journey is one stepâ&#x20AC;? Kenyan proverb

195

TOURISM

eBizguides Kenya Africa’s savanna and forests. The safari is a popular pro-

INTRODUCTION

duct, which has enabled the country to continue recording remarkable growth in the volume of visitors.

In spite of increased competition from other destinations,

Tourism is the fastest growing sector of the nation’s eco-

Kenya is still one of the foremost tourist destinations in

nomy and is currently the first foreign exchange earner,

Africa: Kenya tourism represents 5% of the tourist trade

KSH42 billion in 2004, accounting for about 4% of the

in Africa and about 28% of that of Eastern Africa.

GDP.

Tourism in Kenya is mainly based on natural attractions,

Tourism plays an important role in the socio-economic

which include wildlife in its natural habitats as well as

development of Kenya. It is a major source of employ-

idyllic beaches. Approximately 10% of the country has

ment as it is estimated than over 136,000 Kenyans are

been set aside for the conservation of wildlife and biodi-

directly employed in the sector and 1.5 million Kenyans

versity. Game viewing is a very popular pursuit since most

indirectly derive their income through tourism. In 2004

visitors to Kenya are predominantly interested in seeing

tourism and allied sectors absorbed 59% of the total

“the big five” – the elephant, rhino, lion, buffalo and leo-

number of persons employed in the informal sector.

pard – not to mention other lesser and unique game in

Right at the equator Mount Kenya Safari Club

eBizguides Kenya

TOURISM

Until recently Kenya’s strategy for developing tourism was to pursue high volume, low yield tourism. This strategy had worked well in the past, but the industry has faced an increasing number of pressing problems: competition from the Far East and South Africa increasingly draws tourists away and, since Kenya’s tourism industry relies largely on visitors from Europe and America, it was vulnerable to economic fluctuations and travel ban advice in those regions. Between 2001 and 2003 the industry recorded low figures with the number of tourists dropping to fewer than 500,000 visitors in 2002. British Airways had suspended its flights to Kenya and it had been estimated that Kenya was losing at least US$1 million every day

rivers, mountain climbing, ice climbing and so on),

because of the decline in tourism.

“Scenic Safaris” (promoting the diversity of climate and ecosystems and therefore the diversity of landscapes in

Since 2003 the industry has gone through a major res-

Kenya) and “Specialist Safaris” (honeymoons, incentive

tructuring strategy, however. Kenya is beginning to

packs, bird or snake safaris, culinary safaris and so on).

develop alternative forms of tourism, which contribute to the conservation of the environment and respond to

The new products developed (such as incentive pac-

changing patterns of consumer demand, building a plat-

kages), have boosted the arrival of business travellers,

form for multi-destination travel within the region.

and business trips to Kenya have increased by 35% (compared with a 28% increase for holidays) since 2003.

A strategic analysis of the sector was undertaken in 2003 to underline the challenges and the way forward for

Kenya Tourist Board also identified new target markets,

industry. The stakeholders realised that Kenya had been

especially Asia, to diversify from its traditional target mar-

relying too much on wildlife safaris and beach safaris:

kets and tap in to different seasonality schemes. In 2003,

60% of the parks were underexploited (especially in

KTB opened a representative office in Hong Kong and the

Northern and Western Kenya, and from a conservation

government signed a protocol on Approved Destination

point of view the Masai Mara was overexploited). In

Status that allowed Chinese tour operators to send tou-

2003, Kenya Tourism Board (KTB) implemented a new

rist to Kenya.

strategy for the sector based on diversification: diversification of destinations within Kenya (promotion of unde-

In 2003 the Tourism Recovery Fund was created and the

rexploited national parks and so on), diversification of

Kenyan government, along with the European Union,

sources (attracting tourists from new markets to lessen

allocated KSH500 million to sustain and revive the sector.

the dependence on Europe and USA) and diversification

The money was allocated to launch an international

of products (value-added products and packages).

advertising campaign targeting the primary source markets in the UK, Germany, France and Italy. The campaign

KTB developed a marketing strategy to promote new

comprised advertising, public relations, trade fairs, pro-

types of safaris: “Wildlife Safaris”, “Beach Safaris”,

duction of new collateral, special promotions (on televi-

“Cultural Safaris” (42 tribes, Arab heritage, colonial heri-

sion, airlines, bill boards, the UK Underground and inter-

tage), “Sports Safaris” (golf, dhow racing, altitude trai-

national media), developing corporate activities with

ning, rhino charging and so on), “Adventure Safaris”

industry stakeholders and partnerships with tour opera-

(camel and horse safaris, foot safari, rafting on inland

tors, in order to boost the image of Kenya as a tourism

197

TOURISM

eBizguides Kenya

destination and increase its visibility in the marketplace as

who visited the country rose by 2%. Increasing domestic

a safe and diverse place for people to visit.

tourism is a long process: mentalities have to be changed as tourism is still seen as very expensive for Kenyans.

These campaigns ran in the prime holiday decisionmaking month for Europe from January to March. In the

This campaign has come to fruition with the increase by

UK, an outdoor poster campaign throughout the London

30% of the number of visitors (compared with 2002),

Underground was used, followed by TV campaigns on

with 623,854 arrivals in the country in 2004. With the

Channel 4, 5 and Sky News. In France, Germany and

international tourist arrivals just under 700,000 in 2004,

Italy, full-colour advertising was specifically targeted at

tourism earnings recorded a remarkable increase of 66%

popular consumers and travel trade publications.

from KSH25 billion in 2003 to KSH42 billion.

The planning and execution of the Tourism Recovery

The opportunity for growth is still huge as Kenya has the

Marketing Plan was carried out in very close partnership

ability to accommodate 3.2 million tourists; in 2004, the

with the private sector, government and Tourism Trust

average occupancy was estimated at 23%. Kenyaâ&#x20AC;&#x2122;s tou-

Fund.

rism is estimated to have the capacity to earn up to KSH72 billion when in full capacity, given the current

Domestic tourism was also defined as a key strategic

available 72,665 beds, average length of stay pegged at

target at the time. In 2003, domestic tourism had sus-

8.4 days and average visitor expenditure of US$300.

tained the sector when the international tourists had deserted the country. In 2004 the number of Kenyans

The new marketing plan for 2004â&#x20AC;&#x201C;2006 repositions

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Kenya as a destination in line with the ever changing

One of the challenges facing the industry is air capacity.

industry trends. The Ministry of Tourism and Wildlife

The government is working to increase airline access and

through the Kenya Tourist Board will continue to increase

seat capacity.

its expenditure on tourism marketing both internationally and locally. The Tourist Board will sustain the strategy of

Kenya Tourist Board also seeks to develop local tourism.

attracting the upper end and high-value tourist market

The Kenya Tourist Board has received KSH14.5 million

segments and at the same time diversifying the source

from the government and the European Union to fund

markets. In its effort to increase the yield, KTB will also

domestic tourism promotion campaigns in 2005. The

develop value added and exclusive products to attract the

money will be used to create hype around new circuits in

high money spenders from the traditional markets, along

western and central Kenya (Kitum Caves in Mount Elgon

with visitors from Africa (Nigeria, South Africa) and the

where the elephants live, rock climbing in Mount Kenya,

Middle East – but the industry has to move slowly and

bull fighting in western Kenya, the Aberdares National

carefully as standards have not yet been adapted.

Park, the high altitude training camps for athletes around Eldoret, and ecotourism). KTB intends to raise the profile

Relax and have fun at Sun ‘n’ Sand in Mombassa

TOURISM

eBizguides Kenya

of domestic tourism and has targeted a 10% rise in the number of visitors.

MAIN COMPANIES

Tourism has boosted the Kenyan economy, creating jobs

GAMEWATCHERS SAFARIS â&#x20AC;&#x201C; PORINI

and enhancing the development of other sectors of the economy such as roads, water, air and general transport,

Mr Jake Grieves-Cook

the manufacturing sector, construction industry, general

Managing Director

infrastructure, curio shops, boat operators, fish and

Village Market

beach trade, and fruit and vegetable vending. However,

P.O. Box 388, 00621 Nairobi

tourism is responsible for various negative impacts on

Tel: +254-20-7123129

natural, social, cultural and economic development in

Fax: +252-20-7120864

Kenya. This awareness has focused attention on the need

Email: info@gamewatchers.co.ke

to have a tourism industry that recognises its responsibi-

Website: www.porini.com/gamewatchers/

lity to the environment, and that strives to embrace the principles of sustainable development.

Gamewatchers Safaris has been operating in Kenya for over 14 years and offers a range of safaris to some of the

Windsor Golf and Country Club is famous for its international standard course

eBizguides Kenya

TOURISM

best wildlife reserves and parks in Africa with an

HERITAGE HOTELS

emphasis on personalised and exclusive smaller camps, 4x4 safari vehicles for game drives in preference to vans,

Mr David Stogdale

and the option of air transfers as an alternative to driving

Managing Director

by road between the parks.

Heritage House, David Osieli Rd, off Waiyaki Way, Westlands

Gamewatchers also runs a small and exclusive safari

P.O. Box 74888, 000200 Nairobi

camp in a private wilderness reserve adjacent to

Tel: +254-20-4446651/47929

Amboseli: the Porini Camp in the Selenkay Conservancy,

Fax: +254-20-4446533

where clients can escape from the crowds and experience

Email: info@heritagehotels.co.ke

the African wilderness without the presence of other tou-

Website: www.heritage-eastafrica.com

rist vehicles. Heritage Hotels is a hotel and leisure operator that proPorini Camp is part of Porini Ecotourim Ltd, a registered

vides a complete and wide-ranging “beach-and-bush”

company involved in the development of wildlife conser-

adventure in the East African region. The group provides

vation areas on land owned by rural communities adja-

its guests with high-quality safari products, personal

cent to national parks in Kenya. The company enters into

attentive service flexible options and sophisticated extras

lease agreements with landowners in order to establish a

demanded by today’s discerning traveller.

“conservation area” on their land and then develops the infrastructure (access roads, network of game-viewing

Heritage has developed a wide range of holiday packages

tracks, culverts, waterholes, campsites, tourist facilities

adapting to every lifestyle and every budget. For this, the

and so on) to enable ecotourism activities to be operated.

company has developed three banners: The “Voyager”

The community is thus assisted in using the land and wil-

brand incorporates heritage resorts, camps and lodges

dlife as a resource and receives economic benefits (such

(eight properties ranging from a high-value “three-star-

as income and employment opportunities) as a result of

plus”) in Mombasa and Tsavo). The “Intrepids” brand

conserving wildlife and the natural habitat.

incorporates three camps in Samburu, Naivacha and the Maasai Mara (four-star safari camps and resorts). The

The camp complies with basic ecotourism guidelines

“Explorer” brand offers a more personal and intimate

given by the Eco-Tourism Society of Kenya. The company

encounter with nature with a five-star retreat on the

has opted for a green solar power system. The Camp has

Arabian isle of Lamu and a luxury safari camp in the

implemented a recycling system for all waste. No bush

Maasai Mara Game Reserve. The two Explorer properties

charcoal is used in the camp and conservation area, as

have recently been linked with 20 other luxury camps and

Kenya has a massive problem with deforestation for char-

retreats in Kenya and Tanzania to form the Explorer

coal fuel, and has opted for a safe, responsible, environ-

Collection, a selection of exclusive safari properties from

mentally friendly “green charcoal” briquette.

which travellers can design their own five-star beach and bush itineraries.

Selenkay Conservation Area is well off the beaten track and has not been visited by many tourists. It lies in the

Heritage has also developed special holidays for adventu-

heart of Maasailand and the animals are truly wild and

rous families, with its “Adventurers’ and Young Rangers

not yet habituated to the presence of vehicles. The num-

safari clubs”, offering dynamic programmes of events

bers of tourist visitors are limited to a maximum of 12 per

and activities, educational games and cultural exchanges

day to retain the wild and unspoilt nature of the area and

for children and young people.

to minimise the impact on the environment.

201

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HILTON NAIROBI

meeting and banqueting facilities for up to 500 people, 24 hour room service, four restaurants, satellite television,

Mr Olivier Vetter

health club and heated swimming pool, business centre

General Manager

with Internet access and electronic room locks and safes.

Mama Ngina Street P.O. Box 30624, 00100 Nairobi

The hotel has a total of 287 rooms, comprising contract

Tel: +254-20-250000

rooms, Hilton guest rooms and deluxe, pool-side rooms with

Fax: +254-20-250099

private verandas, alcove rooms and deluxe suites. There is

Email: hilton@africaonline.co.ke

also an Executive Floor as well as non-smoking rooms.

Website: www.hilton.com

The hotel chain also has worldwide corporate agreements with major travel agencies, tour operators, airlines and inter-

Established in 1969, Hilton Nairobi was one of the first major

national companies. The Hilton Honors programme allows

international chain hotels to open in Kenya. Only 20 minutes

members to earn hotel and airline frequent flyer miles for

from the airport, the hotel is located in central Nairobi in the

the same stay through a partnership with over 25 major air-

heart of the business district and shopping areas. The hotel

lines.

has all the facilities you need, from shuttle service from the airport to the hotel, club lounge and executive floors, large

The promotion of Kenya as a destination for business and

Cristal clear waters, fringed with white beaches and shady palms, heaven!

eBizguides Kenya

TOURISM

tourism has been enhanced by the strategic alliance of

Email: info@kenyatourism.org

Hilton International and Hilton Hotels Corporation. This

Website: www.magicalkenya.com

global partnership focusing on joint sales and marketing as well as information technology has united the Hilton name

The tourism sector is Kenya’s second largest foreign

worldwide. With 350 welcoming and dedicated employees,

exchange earner after agriculture and the biggest contri-

the Hilton brand is synonymous with hospitality and its mis-

butor to the economy. 1.5 million Kenyans derive their

sion is to ensure that its guests experience service and qua-

income from tourism.

lity standards at the level they expect and deserve: “It happens at the Hilton”.

Established in 1997, the Kenya Tourist Board (KTB) is charged with the promotion of Kenya as a domestic and

KENYA TOURIST BOARD

international tourist destination.

Dr Ongong’a Achieng

Over the past four years, the tourism sector has been

Managing Director

recording low figures and the number of visitors had signi-

Kenya Re Tower, 7th floor

ficantly decreased, dropping down to less than 500,000

P.O. Box 30630, 00100 Nairobi

visitors in 2002. In 2003, the Tourism Recovery Fund was

Tel: +254-20-2711262

created and the Kenyan government and European Union

Fax: +254-20-2719925

allocated KSH500 million to sustain and revive the sector. Traditional mud huts, these are from the Kikuyu

TOURISM

eBizguides Kenya

Kenya Tourist Board has allocated this money to launch

KENYA WILDLIFE SERVICES

an international advertising campaign (on television, airlines, bill boards, the UK Underground, and international

Dr Julius Kipngetich

media), develop corporate activities with industry stake-

Managing Director

holder, and partnerships with tour operators, in order to

P.O. Box 40241, 00100 Nairobi

boost the image of Kenya as a tourism destination. KTB

Tel: +254-20-600800

has been diversifying from its traditional target markets

Fax: +254-20-603792

(Europe and USA) to attract new visitors from Asia (China

Email: kws@kws.org

and Japan). In 2003, KTB opened an office in Hong Kong

Website: www.kws.org

and an Approved Destination Status was signed with the Government of China. This campaign has come to frui-

Wildlife is one of the country’s most precious national

tion with the increase by 30% of the number of visitors

and international heritage and Kenya has over 30 diffe-

(compared to 2002), with 668,134 arrivals in the country.

rent parks and reserves (including marine pars). Kenya Wildlife Service (KWS) is charged with the protection and

Kenya Tourist Board also seeks to develop local tourism.

conservation of the country’s bio-diversity as presented

In 2003, domestic tourism has sustained the sector, and

by its fauna and flora.

in 2004, the number of Kenyans who have visited the country rose by 2%. The Kenya Tourist Board has

KWS has developed programmes which have yielded very

received KSH14.5 million from the government and the

successful results in regard to saving endangered and

European Union to fund domestic tourism promotion

threatened species such as the sable, hirola and roan

campaigns in 2005. The money will be used to create

antelopes, rhinos, elephants, giant sea turtles and so on.

hype around new circuits in western and central Kenya

KWS conservation programmes and services include

(kitum caves in Mount Elgon where the elephants dwell,

coordinating research, ecosystems monitoring, planning,

rock climbing in Mount Kenya, bull fighting in Western

project management using an ecosystem management

Kenya, the Aberdare national park and the high altitude

strategy, conservation and management of wildlife

training camps for athletes around Eldoret, and ecotou-

resources outside protected areas in collaboration with

rism). KTB intends to raise the profile of domestic tourism

the stakeholders, providing security and veterinary ser-

and has targeted a 10% rise in the number of visitors.

vices.

In its effort to increase the yield, KTB will also develop

KWS also contributes to policy and legal framework

value added and exclusive products to attract the high

development on conservation and sustainable use of

money spenders from the traditional markets, along with

natural resources and at the same time advises on issues

visitors from Africa (Nigeria, South Africa) and the Middle

relating to international conventions, treaties and agree-

East.

ments as concerns conservation and natural resource management.

“Kenya is one of the two countries in the world to have all the ecosystems. Enjoy the mountain, the

The Kenya Wildlife Service Training Institute (KWSTI) is

coast, the savannah, the desert, the wildlife and be

one of the training units of the Kenya Wildlife Service

guided by nice welcoming people. Kenya is the last

based in Naivasha. It was established in 1985 with the sup-

paradise.”

port of the World Bank and was originally known as the

Dr Ongong’a Achieng

Naivasha. KWSTI currently serves the nation as a medium-

Managing Director

sized comprehensive tertiary institute dedicated to excellence in all its programmes and operations. It is a bio-diversity conservation and management centre in which knowledge is sought as well as taught. All its sections recognise

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the importance of scholarship and service, the intrinsic value

integrated conference rooms, spacious workspaces, pri-

of research, and the significance of a primary commitment

vate boardrooms and adaptable audiovisuals. The incen-

to quality instructions and operations. The Institute offers

tives programme offers a selection of high-achiever

basic, specialised and refresher courses for KWS staff and its

incentives including high-profile adventure sports, 18-

partners, training and conducting research in natural

hole golf, deep-sea fishing, international SSI dive school,

resource management in an effort to enhance conservation,

extensive water sports, cultural tours, tailor-made spor-

management and sustainability of Kenya’s wildlife resources

ting safaris, team-building workout programmes, classic

and their habitats, and hospitality services.

safaris and inspirational dining options.

LEOPARD BEACH SAFARI HOTEL

LONHRO HOTELS

Mr Chris Modigall

Mr J.F. Lee

Managing Director

Diani Reef South Coast, Mombassa

P.O. Box 58581, 00200 Nairobi

Tel: +254-40-3202721

Tel: +254-20-216940

Fax: +254-40-3203424

Fax: +254-20-216796

Email: leopardb@africaonline.co.ke

Email: sales@lonrhohotels.co.ke

Website: www.leopardbeachhotel.com

Website: www.lonrhohotels.com

The Leopard Beach Hotel, located on the famous Diani

Lonrho Hotels is part of Lonhro Africa Plc. The Group’s

beach 34 km south of Mombasa, is one of the most spa-

principal activities are the operation of hotels and lodges.

cious, stylish and cosmopolitan resort in Kenya. Built in

The Group operates eight hotels and lodges in Kenya,

Swahili style, the hotel has recently emerged from world-

Ghana and Mozambique, and imports, sells and provides

class renovations which place the resort ahead of the com-

services for motor vehicles, motorcycles. It is engaged in

petition and leads the field in East Africa’s coastal resorts.

cotton ginning, timber and food processing. Hotels accounts for 55% of revenues. Lonrho Hotels own and

The resort boasts 114 standard rooms and 35 superior

manage properties in five unique locations, each with its

rooms, most of which enjoy panoramic ocean vistas and pri-

own distinctive character and personality yet all bound by

vate terraces. The six master and honeymoon suites also

the same high standards.

offer such additional luxuries as power-showers-for-two and sunken Jacuzzis.

The Mount Kenya Safari Club offers a spectacular view of Mount Kenya. Nestled on the slopes of Mweiga Hill in a

The Leopard’s range of first-class guest services includes: an

1,300 wildlife sanctuary is the Aberdare Country Club. The

adventure centre and dive school, extensive beach sports

Ark is set in a thick woodland at the heart of Aberdare

and an adjacent 18-hole golf course, an exclusive hair and

National Park. It has numerous viewing decks, balconies

beauty salon, relaxation massages, a full laundry and valet

and lounges, which allow uninterrupted viewing of animals

service, baby sitting, doctor-on-call and a wide range of

visiting the waterhole and sola-lick. On the ox-bow of the

shopping options.

Mara River in the world famous Masai Mara game reserve

The resort also offers its clients specialised packages for

is the Mara Safari Club. Surrounded on three sides by the

weddings and honeymoons pre- and post-wedding enter-

river, all tents enjoy their own private river frontage. The

tainments, traditional and alternative wedding feasts and

calling address in Nairobi is the Norfolk Hotel.

an entirely “headache-free” wedding planning service. Travel and Leisure magazine has issued awards for the 500 Leopard Beach Hotel provides its corporate clients with

best hotels in the world 2004; Lonrho Hotels claimed the

conference centre facilities, a multi-faceted selection of

lion share, with four Lonrho Hotels awarded out of the six

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TOURISM

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hotels to receive the awards from Kenya. The Norfolk Hotel, which has just celebrated its 100th birthday, was the only

POLLMAN’S TOURS AND SAFARIS – APR GROUP

Nairobi hotel to be nominated. The results are based on nearly 425,105 evaluations from the most discerning trave-

Mr Khalid Shapi

llers. The hotels featured earned the highest average ratings

Managing Director

from readers in five categories: rooms and facilities, location,

P.O. Box 84198, 80100Mombasa

service, restaurants and food and value.

Tel: +254-11-229082 / 5 Fax: +254-11-228935

PALACINA RESIDENTIAL HOTEL

Email: info@arpsafaris.com Website: www.arpsafaris.com, www.pollmans.com

Mr Tony Sawe Assistant General Manager

The APR Group was established in the 1950s, when small

Kitale lane off Denis Pritt Road

groups of German clients arrived in Nairobi to participate in

P.O. Box 48728, Nairobi

specialist photographic safaris. As Kenya’s tourism industry

Tel: +254-20-715517/8

expanded, APR developed new safari products and started

Fax: +254-20-717991

operations in Tanzania and Zanzibar.

Email: palacina@form-net.com Today, APR has grown to become one of the longest operaLocated 10 minutes from the city centre in a quiet and safe

ting travel companies in East Africa, globally recognised as a

neighbourhood, Palacina Residential Hotel was established

leading destination management company.

four years ago as a family owned and run property. Palacina is a unique hotel combining the comfort of home with the

APR’s expertise now extends well beyond East Africa’s bor-

convenience of a five-star hotel with personalised service.

ders. With extremely well-travelled staff, the company can

Palacina offers a bar and a restaurant as well as conference

also arrange tailor-made safaris to Botswana, Malawi,

facilities opened for non-residents.

Namibia, Seychelles, South Africa, Zambia and Zimbabwe.

Palacina provides its residents with fully furnished and ser-

The Group includes Alpha Travel (UK), Ranger Safaris

viced apartments (three one-bedroom, five two-bedrooms,

(Tanzania) and Pollman’s Tours and Safaris (Kenya), and has

three three-bedrooms) ranging from US$2,100 to US$3,600

developed a wide range of scheduled or tailor-made safari

(monthly rate), available to rent daily or monthly. Palacina

products including luxury mobile camping, fly-in safaris,

Residential Hotel is the home away from home perfectly

island breakaways, walking safaris, day and night game

suited for medium- or long-term rental, for people (expa-

drives, walking and climbing, ballooning, photography,

triates, diplomats and so on) coming to Kenya for a few

canoeing, fishing and boating, dhow trips, island hopping

months or families coming to visit.

and diving, camel and horse riding, and exotic train journeys.

Palacina is currently expanding and upgrading, with the construction of Nairobi’s premier boutique hotel, a new an

Over 40 years of experience, the Group has developed a

exclusive concept in Kenya, to be located next to the hotel.

solid infrastructure based on long-term reliability, competi-

The new hotel will be opened in 2005, and will include 14

tive prices and responsible environmental business practices

new beautiful hotel suites, along with several bars and mee-

with a modern fleet of safari vehicles. APR has an interna-

ting rooms, a private lounge for residents, a fitness center, a

tional sales and marketing representative office in London

spa and treatment centre, an Internet café and a business

and is a member of the “World of TUI” group of companies.

centre.

Pollman’s Tours and Safaris has been established in Kenya in 1957 with its head office in Mombasa and offices in Nairobi for assisting arrivals and departures. The company has the

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TOURISM

technology, infrastructure and experience to handle any

movements and modern vehicles, ranging from large 40–47

package or tailor-made safari with computer network, lin-

seater transfer buses, 18–25 seater coaches, 4x4 vehicles

king Pollman’s, Ranger and Alpha, for monitoring all safari

and nine-seater safari cruisers.

The eco-lodge concept is designed to respect the wildlife

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SAROVA HOTELS

SERENA HOTELS

Mr Sandy Vohra

Mr Mahmud Jan Mohamed

Managing Director

Pan African Building

Williamson House, 4th Ngong Avenue

P.O. Box 30486, 00100 Nairobi

P.O. Box 48690, Nairobi

Tel: +254-20-2716688

Tel: +254-20-2711077/8

Fax: +254-20-2715566

Fax: +254-20-2718102

Email: marketing@sarovahotels.com

Email: md@serena.co.ke

Website: www.sarovahotels.com

Website: www.serenahotels.com

Sarova Hotels is one of Kenya’s leading independent hotel

Serena Hotels was established in the early 1970s. The

groups. The chain consists of the Stanley Hotel in Nairobi,

Group is owned and managed by Tourism Promotion

the Panafric Hotel in Nairobi, the Whitesands Hotel in

Services, a subsidiary of the Aga Khan Fund for Economic

Mombasa, Sarova Mara Tented Lodge in the Maasai Mara

Development (AKFED). Operating under the “Serena”

Game Reserve, Sarova Shaba Lodge in Shaba Game

brand name, Tourism Promotion Services owns and

Reserve, and Sarova Lion Hill Lodge in Lake Nakuru National

manages 15 hotels in East Africa and Asia. AKFED’s invol-

Park. The group also operates three establishments in

vement in East African tourism now extends to Tanzania. In

London and the south UK. Each establishment is indivi-

its most recent phase of development, TPS’s Kenyan hol-

dually themed and has distinctive attributes.

ding company (TPS Ltd) has floated its shares on the Nairobi Stock Exchange.

For the leisure traveller, Sarova offers a host of diverse experiences; game drives, sports and water sports, health clubs

Serana operates five safari loges in Kenya, five lodges in

and cultural as well as contemporary entertainment.

Tanzania, two hotel resorts in Kenya, two hotel resorts in Tanzania, one in Zanzibar one in Uganda, one in

For the visiting executive, state of the art meeting facilities

Mozambique, six hotels in Pakistan and one hotel in

feature throughout the group, and enable every event from

Afghanistan.

a small business meeting to an international conference to be accommodated with consummate ease and style.

Located in some of East Africa’s most exquisite and exotic

Sarova Hotels provide up-to-date business facilities as well

settings, Serena Hotels boast a range of luxury resorts,

as conference and seminar venues.

safari lodges and hotels. Indigenous designs and material are integrated with the most modern amenities and com-

Sarova Hotels offers its clients specialised packages inclu-

plemented by exceptional service.

ding a “Wedding Package”, “Honeymoon Package”, “Beach Breakaway Package”, “Magestic Mara Package”

Serena safari lodges and hotels have come to be recognised

and “Born Free Package”. Sarova Hotels can also tailor-

as leaders for the quality of their services, attention to

make a door-to-door package depending on the number

details, quality of service, architecture and ecological res-

particular areas of interest and duration of travel.

ponsibility. As an ecotourism pioneer, Serena Hotels has initiated various important environmental programmes to protect the region’s wildlife and fragile habitats. Serena has developed a wide range of holiday products from “Serena Active” (personalised programmes for clients seeking activity and adventures), “Serena Leisure”, “Serena Safari”, “Serena Meeting” (conference facilities in exotic

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locations) and “Serena Incentives” (tailor-made itineraries

gement of large groups, Somak organises venues for cor-

for incentive programmes).

porates. The venues include exotic bush and beach as well as city facilities. Somak’s expertise includes the handling of

In 2004, Serena Hotel Group was voted East Africa’s most

cruise ships docking in Mombasa.

respected company in the hotel and tourism sector. Somak has a fleet of over 100 microbuses, backed up by

SOMAK TRAVEL LTD

4x4 Landcruisers, and offers unrivalled access and flexibility to all parts of Kenya. To ensure the utmost reliability for

Mr Suresh Raman

road transport, Somak has set its own workshops for main-

Managing Director

tenance. No other company has such resources.

Mombasa Road P.O. Box 48495, Nairobi

Somak has established a relaxation and recuperation

Tel: +254-20-535500–3

lounge in Nairobi, for travellers coming off safari, before

Fax: +254-20-533854

undertaking their onward journey. Refreshments and sho-

Email: admin@somak-nairobi.com

wers are provided for Somak clients. Somak is the only

Website: www.somak-nairobi.com

Destination management company to offer this facility to its customers.

Somak was established in 1968 and has become one of the leading destination management company. For over 30

TAMARIND GROUP

years Somak has made a total commitment to tourism in Mr Martin Dunford

East Africa.

Executive Chairman Aside from traditional holiday options (wildlife safaris,

P.O. Box 74493, 00200 Nairobi

diving and so on), Somak has developed a wide range of

Tel: +254-20-2728090/1/3/4

safari options, adapting to clients’ individual needs and

Fax: +254-20-2724209

requests: camel safaris, horse-riding safaris, walking safaris,

Email: mhdunford@tamarind.co.ke

balloon safaris, mountain treks, bird-watching, adventure

Website: www.tamarind.co.ke

safaris, golfing safaris, mountaineering, whitewater rafting, gliding, paragliding, hang-gliding, deep-sea fishing and

The Tamarind Group was founded in Mombasa in 1972

more.

and operates some of the most successful restaurants and leisure operations in Africa.

With over 175 multilingual (ten languages) experienced professionals, Somak receives guests from all over the

In Mombasa, the Group owns the Tamarind Restaurant,

world transiting through the Nairobi hub or one of the

one of the finest seafood restaurants in Africa, built in Arab

seven Somak associated offices. Somak boasts a 24-hour

style and offering a blend of French, Asian and African cui-

turnaround time on quotations and gives a personal service,

sine. Customers can also depart for a cruise on the creeks

selecting hotels and, in the case of safaris, routes and

on the “Tamarind Dhow”, to enjoy the fine Tamarind sea-

lodges according to customers’ preferences. Response is

food. The Group also has a share in the leading casino in

swift and once confirmed arrangements are set in place.

Mombasa located in the Tamarind Restaurant.

Somak’s buying power is reflected in quotes, large and Tamarind village is a luxurious collection of 55 apartments

small.

available for rent in Mombasa. Somak has also become one of the leading players of the incentive and conference market. With dedicated confe-

In Nairobi, the sister restaurant, Tamarind, offers city dwe-

rence venues in major centres, and expertise in the mana-

llers a fine taste of the sea with fresh seafood brought

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TOURISM

eBizguides Kenya

everyday from the coast. Tamambo Bar & Grill has become

capacity of 248), and prices range between US$140 and

one of the trendiest African brasseries, combining interna-

US$362.

tional cuisine and African dishes. With its unique 18 holes championship golf course, Last but not least, the Tamarind Group is the proud owner

Windsor Golf and County Club is the only African golf club

of the famous Carnivore Restaurant, which has grown to

to be a member of the “Great Golf Resorts of the World”.

become “Africa’s Greatest Eating Experience” and was

The Windsor Golf Hotel and Country Club boasts reciprocal

twice voted among the world’s 50 best restaurants. With

partnerships with leading golf clubs in the world and sets

400,000 meals served per year and a seating capacity of

an entirely new standard for resort hotels in Kenya, and is

420, the Carnivore has struck the rare balance of catering

unbeatable for a golfing holiday.

for a cosmopolitan blend of local residents while becoming a must-see stop off for tourists. Since its creation in 1980,

Windsor is also a top class venue for conferences, seminars

Carnivore has provided its 2 million customers with the

or conventions. It provides its corporate customers and

widest range of exotic game meat, cooked to perfection

business travellers with more than eight conference rooms

until defeat is declared. In addition, the restaurant incorpo-

(three conference rooms and five break-out rooms) and

rates a nightclub and an informal restaurant, the “Simba

numerous customised business services.

Saloon”, as well as a top concert and event venue (the Carnivore Gardens) with a capacity of up to 20,000. The concept of the Carnivore is so successful that the Tamarind Group has opened a franchise in South Africa. Carnivore Johannesburg, opened in 1993, has received the “Traditional Restaurant of the Year” award. The future is looking very good for the Tamarind Group. A further expansion of the entertainment side of the Carnivore by adding an exhibition and concert hall is planned. The Group is also looking at developing its presence in East Africa (Zanzibar) and the Middle East (Dubai).

WINDSOR GOLF AND COUNTRY CLUB Mr Mike Machira General Manager Ridgeways Road P.O. Box 45587, 00100 Nairobi Tel: +254-20-862300 Fax: +254-20-802322 Email: mmachira@windsor.co.ke Website: www.windsorgolfresort.com Located a 30 minutes drive from down town Nairobi in a beautiful rural setting, the Windsor Golf and Country Club was established in 1992 in its own 210 acres ground. It has 130 rooms (20 studio suites, 80 deluxe rooms, and bed

210

T R A N S P O R T & C O M M U N I C A T I O N S

â&#x20AC;&#x153;Having a good discussion is like having richesâ&#x20AC;? Kenyan proverb

211

T R A N S P O RT & C O M M U N I C AT I O N S

eBizguides Kenya

from Mombasa through Nairobi to the Ugandan border,

TRANSPORT

with a branch to central Kenya. Another branch connects Kenya to Tanzania through Taita–Taveta. The total

Transport contributes 6% of the country’s GDP and con-

railway network consists of 2,765 km and the system has

sumes 6.3% of the public resources as a proportion of

an annual capacity of more than 6 million tons.

GDP.

A significant constraint to competitiveness in

Kenya Railway Corporation, however, only handles bet-

Kenya arises from deficiencies in the country’s physical

ween 2.4 and 3.2 million tons per year. South African

infrastructure (power, water and roads) and their impact

Railways currently provides ten 1,200-ton haulage capa-

on costs. The manufacturing sector is particularly vulne-

city locomotives for lease for cargo shunting between

rable to power supply outages and transport inefficien-

Nairobi and Mombasa.

cies (Economic Survey 2003). In the 1990s, the deterio-

Kenya Railway a strategic parastatal company, implying

ration of both the classified and unclassified roads led to

that only the Corporation’s maintenance services will be

high production costs, consequently discouraging inves-

privatised; while Kenya Railway will rehabilitate and

tment.

modernise locomotives, railway line, wagons and other

The

The government designated

equipment, commercialise the operations of railway Kenya serves as the hub for the East, Central and Indian

transport, and concession gulf marine services.

Ocean areas and offers transit and refuelling facilities for

International Finance Corporation, the private sector len-

north–south and east–west air traffic. Air transport is

ding arm of the World Bank, has been selected as the

perceived by private investors as being much less of a

adviser for this process.

The

problem than road transport. In the cost and quality of air transport services in Africa, Kenya received a middle

AIR

ranking in the Africa Competitiveness Report, although its international and domestic air transport infrastructure

Kenya has three international airports: Nairobi’s Jomo

is the most developed in East Africa and, indeed,

Kenyatta International Airport (JKIA), Mombasa’s Moi

amongst the best continent-wide.

International Airport and Eldoret International Airport, which opened in 1997.

RAIL

Other airports are Wilson

(Nairobi), Malindi, Kakuma (for emergency food relief to southern Sudan and northern parts of Kenya) and

Kenya Railway Corporation, a parastatal company,

Kisumu; however, there are over 300 airstrips throughout

manages Kenya’s single-track railway system, which runs

the country. In 2005 over 30 international airlines ope-

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T R A N S P O RT & C O M M U N I C AT I O N S

rated into and out of JKIA. Wilson Airport handles light

tion system, and the divestiture of towing, dry-docking

aircraft and general aviation, and is one of the busiest in

and stevedoring services to the private sector was sche-

Africa, although Kakuma airport has of late registered a

duled for completion in 2003. The efficiency of the port

surge in air traffic. The volume of passengers handled at

operation has been affected by the limited capacity of

the airports rose from 2.77 million in 1994 to almost 5

the container terminal, high management turnover, poor

million in 2003. Freight handled rose from 23,000 tons

and near obsolete equipment, poor maintenance of

in 1994 to 217,955 tons in 2003. Kenya Airways is the

equipment and poor links to the hinterland due to the

national air operator and is partially owned by KLM, follo-

poor performance of Kenya Railways and the poor state

wing the partial divestiture of the airline in 1999. The air-

of roads. To correct this situation the government has

line is successful and profitable.

been working on refurbishing and expanding the existing container terminal facilities, improving and strengthening

SEA

the management and operations of the ports, and privatising certain operations of the Kenya Ports Authority.

Marine transport facilities in Kenya consist of port facilities in Mombasa – the best and most important deep-

COMMUNICATIONS

water port in East Africa – and minor ports along the coast, inland water transport and inland container depots

For many years, problems in the telecommunications

at Nairobi, Kisumu and Eldoret. The country’s ports fall

sector have led to long waiting times for telephone main-

under the jurisdiction of the Kenya Ports Authority (KPA).

lines and a relatively low number of telephone mainlines

The port of Mombasa serves the hinterland countries of

per employee, indicating that the quality of telecommu-

eastern and central Africa. It has a rated capacity of 22

nications services in Kenya is low. However, the govern-

million tons annually while the cargo handled has for

ment plans to increase the total telephone exchange

several years been much less than the capacity. A private

capacity from 446,302 in 2001 to 943,000 in 2008, while

international firm manages and operates the container

the number of public payphones has also been desig-

terminal in Mombasa on a contractual basis, while KPA

nated for expansion to 24,600 by 2008 – an increase of

manages the remainder, plus the inland container depots

25% on levels in 2005. However, the cost of a local call

in Nairobi, Eldoret and Kisumu.

has remained below the average of other African countries.

In contrast to the poor state of the fixed-line

Selected operations performed by the KPA are scheduled for

system in Kenya, mobile phone licensing, of which two

privatisation

the

have been issued thus far, has been successful at creating

build–operate–transfer (BOT) concepts. KPA is also currently

a competitive market environment in that industry; as a

moving from manual operations to an integrated informa-

result, user fees have recently come down. In addition,

the

near

future

under

213

T R A N S P O RT & C O M M U N I C AT I O N S

eBizguides Kenya

phone sector have contributed largely to the growth in the communications sector of more than 22%. The 2.8 million mobile phone users in Kenya today are currently shared between Celtel (previously Kencell, Celtel acquired a 60% stake at a price of KSH18 billion in 2004) and Safaricom, while landline subscribers are estimated at only 330,000. Prior to the restructuring of Safaricom in 1999 (it was fully owned subsidiary of Telkom Kenya with a paltry 20,000 subscriber base) and after Vodafone, the world largest telecommunication company, acquired 40% stake in May 2000, the subscriber base began to soar. The entry of Kencell in 2000 has seen the sector Kenya also has about 30 internet service providers (ISPs).

continue to grow by over 270% annually. By 1st June

The Communications Commission of Kenya (CCK) is

2004, Safaricom had hit the 1.6 million subscriber mark

charged with the responsibility of licensing and regula-

with Celtel at 1.2 million. Safaricom is now more profi-

ting telecommunications, radio communications and

table than any other company on the Nairobi Stock

postal services in Kenya. The Commission is the govern-

exchange. In the year ending March 2004, the company

mentâ&#x20AC;&#x2122;s designate representative to all international inter-

announced a KSH5.1billion after tax profit, chalking up

governmental organisations in matters dealing with tele-

KSH2 billion increase from the previous year.

communications, radio-communications and postal affairs.

The two operators have aggressively expanded their coverage

FIXED LINES

and

upgraded

network

infrastructure.

Safaricom intends to invest a further KSH8 billion to upgrade its network. Last year it spent the 7.7 billion on

Telkom Kenya Ltd was established as a public telecom-

the same mission.

munications operator under the Companies Act. Telkom

from 2005 to 2008.

Celtel plans to invest KSH8 billion

Kenya, which is wholly owned by the government, had exclusive rights and a monopoly in local telephone (Nairobi only), national long distance telephone services,

INTERNET SERVICE PROVIDERS

international telephone services and internet backbone. Today Bell Western

The internet first became available in Kenya to a small

Communications Ltd operates fixed telecommunications

group of technical enthusiasts in 1993. The only means

services in the North Eastern Province of Kenya in compe-

of accessing the internet then was through a service

tition with Telkom Kenya Ltd.

known as Gopher, which offered access to text-based

This monopoly ended in 2004.

information. The African Regional Centre for Computing

MOBILE TELECOMMUNICATION SERVICES

(ARCC), a NGO based in Nairobi, became the first provider of web-based internet services. It did this by providing its subscribers with the first-ever web browser software, called Mosaic.

Kenya is considered as the most lucrative mobile tele-

The connection to the global

internet backbone was via an analogue leased line.

phony market in East Africa, the number of mobile phone subscribers is now estimated at 2.8 million.

About

The first commercial ISP, Formnet, began operating in

KSH156 billion (US$1.95 billion is expected to be

1995.

pumped into the sub sector by 2015, according to

three other ISPs. All the ISPs would lease analogue or

government estimates). The growth trends in the mobile

digital data lines from Kenya to the US to access the

214

Soon competition increased with the entry of

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

internet backbone. The CCK was formed to regulate the

currently operates the express courier arm of the post

sector. The ISPs, which had never been officially ackno-

office.

wledged, were now authorised to operate after obtaining a licence from CCK.

However, Telkom Kenya,

NEW DEVELOPMENTS

formed from the telecommunications arm of the former KPTC, was allowed a monopoly to operate an internet

According to government analysis, the current market

backbone for five years.

demand for telephony in Kenya is between 4.7 million

With the liberalisation, the

number of ISPs has grown to 31 with 20 more awaiting

and 9.4 million.

licensing.

Communications estimates that there will be some 2.4

The Ministry of Information and

million lines in urban centres and 1.5 million lines in rural

POSTAL NETWORK

areas by 2015 (four lines for every 100 people). The target for mobile services is estimated to be 11 million.

Postal Corporation of Kenya (Postal) was established as a

Mobile telephony is now the preferred mode of commu-

public postal licensee with specific role to ensure uni-

nication in Africa making it the first continent where the

versal access of postal services. The corporation has a

number of cell phones has over taken the number of

national network of 890 post offices spread out to divi-

fixed

sions and locations. Stamps can usually be bought at

Telecommunication Union’s statistics, mobile subscribers

post offices, stationers, souvenir shops and hotels. EMS

have increased by over 1,000% between 1998 and 2003

lines.

Colourful “matatus” are common sights in Kenya

According

International

T R A N S P O RT & C O M M U N I C AT I O N S

eBizguides Kenya

to reach 51.8 million, surpassing those of fixed lines, which stood at 25.1 million at the end of 2003.

MAIN COMPANIES

To stimulate further growth in the telecommunications

CELTEL KENYA LTD

sector, Kenya is in the process of licensing a third operator mobile operator, Econet Wireless.

Although the

Mr Gerhard May

competition between Celtel and Safaricom has pushed

Chief Executive Officer

prices down by 98% over the last three years, the cost of

Parkside Tower, Mombasa Road, City Square

airtime is still high for the majority of users. The third

P.O. Box 73146, 00100 Nairobi

operator is expected to increase competition while alig-

Tel: +254-20-69010000

ning prices downwards and creating more affordable

Fax: +254-20-69011114

mobile services.

Email: customercare@ke.celtel.com www.ke.celtel.com/en Celtel Kenya Ltd is Kenyaâ&#x20AC;&#x2122;s second mobile operator. In 2004, Celtel International invested US$250 million to acquire 60% equity in Kencell Communications from

Buses make up a large percentage of Kenyaâ&#x20AC;&#x2122;s public transport

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

Vivendi Telecom International.

enquires, SMS information services), Celtel has introduced a

The new brand “Celtel” was (re)launched in Kenya in

number of new innovative services such as “me2u” allowing

November 2004. Celtel is focused on embracing the multi-

pre-paid customers to transfer unused airtime to other

cultural diversity of Africa in urban and rural environments,

Celtel customers, and low denomination top-up airtime.

and the Kencell logo “yes” has been abandoned for the “Making life better” slogan of Celtel.

Celtel is currently developing electronic airtime distribution. Over 21,000 dealers have already been recruited and are

With over 5 million customers in 13 countries, and 1.4

currently trading in the electronic top-up system through

million subscribers in Kenya, Celtel is one of the fastest gro-

out the country.

wing brand in the mobile telephony sector in the world, and the first and only telecommunication network operating in

Celtel Kenya is also a leader in social and community service

the three East African countries.

projects in the country. The company supports various projects ranging from health, education, sports and poverty

To complete its wide range of services (prepaid plans, inter-

alleviation donating more than KSH$3 million in 2004.

national roaming, local and international text messages, 24hour customer care centre, internet access, directory

Celtel recently took over Kencell, and is the second largest mobile phone operator

T R A N S P O RT & C O M M U N I C AT I O N S

COMMUNICATION COMMISSION OF KENYA

eBizguides Kenya

ITC sector has achieved its full liberalisation in 2004 with Telkom Kenya losing exclusivity in the provision of telecommunication services.

Mr Sammy Kirui Director General and CEO

The Commission is the gateway that encourages private

Waiyaki Way Opp Kianda School

investment in the sector and provides for the rights and obli-

P.O. Box 14448, Nairobi

gations of operators and consumers. CCK liaises between

Tel: +254-20-4242000

consumers, operators and service providers to ensure that

Fax: +254-20-4348216

standards of quality are maintained in the service and equip-

Email: skirui@cck.go.ke

ment provided, and it ensures that public service obligations

Website: www.cck.go.ke

are carried out while guaranteeing the protection of consumers’ and investors’ interests.

Kenya’s communication market began to be liberalised in 1999 and the Communication Commission of Kenya (CCK)

The Commission also assigns frequencies to all licensed tele-

was established as an independent regulatory authority, to

communications operators and broadcasters using wireless

license and regulate the communications sector in Kenya.

technologies in the provision of their services.

Since 1999, CCK has played a critical role in the liberalisation of Kenya’s postal and telecommunication sectors. The

CCK has recently licensed a third mobile operator to com-

The entrance to the longest rail tunnel in East Africa

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

pete with Safaricom and Celtel, and the new operator,

DHL House, Witu Road, off Lusaka Road

Econet, is set to roll out in the first half of 2005. The licen-

P.O. Box 67577, 00200 Nairobi

sing of a second national operator to compete with Telkom

Tel: +254-20-6925100/120

Kenya in the provision of the fixed communication services

Fax: +254-20-536673

is also on course.

Email: howard.goldfield@dhl.com Website: www.dhl.co.ke

Last but not least, the Commission is in the process of developing a universal access strategy and plan to accelerate the

With more than 1 billion shipments to 120,000 destinations

deployment of communication services in the unserved and

in over 220 countries, DHL is the leading international cou-

underserved areas of the country. CCK aims to increase the

rier and logistic service provider. The company is now part

service penetration from the present 0.16 lines to one line

of the Deutsche Post World Net (DPWN) family. In recent

per 100 people in rural areas, and from four lines to 20 lines

years, DPWN has acquired a number of major international

per 100 people in urban areas by 2015.

express and transportation firms, including Danzas, Airborne Express and Securicor, all of whom have been fully inte-

DHL

grated across the four main business divisions of the DHL Brand â&#x20AC;&#x201C; DHL Express, DHL Danzas Air & Ocean, DHL

Mr Howard Goldfield

Solutions and DHL Freight.

Area Commercial Manager, Equatorial Africa

Communications Commission of Kenya is housed in this modern building

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

DHL Express Kenya was established in 1981 and has grown

Website: www.expresskenya.com

to become the market leader with over 60% market share in the express sector. With over 180 employees, a fleet of

Established in 1914, Express Kenya is the oldest transport

17 vehicles and its own dedicated aircraft flying 12 weekly

company in Kenya, providing its clients with sea freight, air-

flights within the East Africa Region, DHL is the only interna-

freight, and packing and removal services.

tional express company with a direct investment in the

Flowerwings Cargo BV, a neutral airfreight broker specia-

country.

lised in the transportation of general cargo and perishables,

Owned by

Express Kenya has three main areas of business: travel, DHL Kenya provide its client (75% corporates) with a com-

freight and flowers.

prehensive range of products and services, and integrated logistics projects complying with the international DHL stan-

The Express Travel Group (ETG) is a destination manage-

dards of reliability, speed and innovation. DHL Kenya ope-

ment company based in Nairobi. Founded in 1918, it is one

rates nine service centres in Nairobi, Mombasa, Nakuru and

of Kenya’s oldest and most experienced travel companies, as

Kisumu.

well as one of East Africa’s premier tour operators.

In line with the worldwide integration, DHL Danzas Air and Ocean joined the DHL Express Unit in Kenya in offering

Express Kenya’s freight category handles all aspects of

international air and ocean forwarding services, along with

import and export, including sea freight, warehousing and

DHL’s traditional courier air express.

airfreight operations, transport and logistics, and packing and removals. Express Kenya counts among the freight

DHL has recently opened the largest air express facility in

giants in East Africa, and prides itself with a high level of cus-

Kenya to be the transport hub for East and central Africa.

tomer service and on time reliability. In its seafreight activi-

As one of the three hubs in Africa, the DHL–JKIA hub will

ties, Express Kenya promises high frequency sailings,

also resort shipments arriving from the USA, Europe and

optimum transit times, scheduled reliability and negotiable

Asia and redistribute them to the DHL network in the

bills of lading. The company also guarantees intermodal

region. The new facility includes state of the art track and

transport, door-to-door deliveries and a worldwide service.

trace system, and online linkage with the in-house Kenya Custom and Excise Department. DHL customers account for

Express Kenya is able to provide its clients with highly spe-

up to 12% of the tax and duties paid at the airport everyday.

cialised logistics services, such as transportation of large

DHL has 24/7 services at the new hub handling all inbound

volumes for Kenya Breweries to upcountry depots.

and outbound service requirements for Kenyan importers and exporters.

Flowerwings Cargo BV is a neutral airfreight broker that specialises in the transportation of general cargo and perishable

In the years to come, DHL Kenya is planning to increase its

goods from Africa at a competitive price, as a result of the

distribution capabilities across East Africa and strongly focus

sheer volume of transport facilities it is able to offer.

on the domestic market.

Combined with almost daily flight frequencies, and its facilities at Nairobi and Schiphol-Zuid close to Amsterdam

EXPRESS KENYA

Airport, Flowerwings is able to transport and distribute cargo with speed and efficiency.

Dr C. Obura Chairman

The company commands an extended network that covers

Head Office: Road A, off Enterprise Road, Industrial Area,

all the main airports on the African continent. It has a wide

P.O. Box 40433, 00100 Nairobi

range of transport and warehousing facilities to ensure the

Tel: +254-20-531123/12

safe and speedy delivery of door-to-door shipments at many

Fax: +254-20-530372

popular destinations.

Email: cobura@expresskenya.com

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T R A N S P O RT & C O M M U N I C AT I O N S

eBizguides Kenya

GILGIL TELECOMS INDUSTRIES

nication sector.

Mr Onyango

With over 350 employees and a turnover of KSH100 million

Managing Diector

per annum, the company has developed a wide product

Gilgil Town, 120km northwest of Nairobi on the

range including treated timber products (telephone and

Gilgilâ&#x20AC;&#x201C;Naivasha Rd

power poles, fencing posts and cross-arms), PABX, tele-

P.O. Box 250, 20116 Gilgil

phone sets and personal computers, assorted metallic and

Tel: +254-50-4002011

wooden furniture for office and domestic use, telephone

Fax: +254-50-4015405

booths, letter boxes and other assorted metallic products.

Email: gticom@africaonline.co.ke Gilgil Telecoms Industries has many clients in the region, Gilgil Telecoms Industries was established in 1991 as the lea-

such as Tanzania Telecommunications Company Ltd.,

ding provider of high quality electronic, metallic and wood

Uganda Posts and Telecommunication, NEC Europe for pro-

products. The company is a wholly owned subsidiary of

jects in Tanzania, and government institutions (Telkom

Telkom Kenya Ltd, and supplies transmission and switching

Kenya, Postal Corporation of Kenya), schools and colleges

equipment and provides repair services for the telecommu-

(for electronic and furniture products), flower farms and wil-

Gilgil Telecoms Industries office is located in Gilgil, close to Nakuru

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

dlife parks (for fencing and electric posts).

on London and Amsterdam routes and selected African destinations) has spurred growth in Kenya Airways’ passenger

The company forecasts a sales revenue growth of 15% per

numbers. Since 2003 passenger numbers within Africa

annum with intensified marketing activities in the East

(excluding Kenya), grew by 15% with over than 240,000

African region, especially in the COMESA member countries.

passengers.

In line with technology transfer, GTI has previously esta-

Kenya Airways is listed on the Nairobi Stock Exchange,

blished joint ventures with AT&T of Ireland, Ericsson of Italy

Uganda Securities Exchange and since October 2004 has

and Huawei of China for the assembly and installation of

been trading on the Dar es Salaam Stock Exchange. Kenya

different technologies of electronic equipment, and GTI is

Airways has recently integrated KenKargo Ltd into the com-

willing to continue its collaboration with other companies

pany’s commercial department under the new identity of

for relevant business interests.

Kenya Airways Cargo and transformed the cargo organisation worldwide positioning it to compete with some of the

KENYA AIRWAYS GROUP

larger players in the industry.

Mr Titus Naikuni

In the next 10 to 20 years, Kenya Airways aims to grow into

Group Managing Director and Chief Executive Officer

the dominant carrier in Africa with a notable presence in

Head Office and Base, Airport North Road, Embakasi,

Asia, Europe and the Americas, while operating a modern

P.O. Box 19002, 00501 Nairobi

fleet of 30 to 40 aircraft. Kenya Airways intends to forge

Tel: +254-20-6422000

strong partnerships and be a respected member of a global

Fax: +254-20-823488

airline alliance.

Email: info.corporate@kenya-airways.com Website: www.kenya-airways.com

“Kenya Airways has opened many new routes to connect all the citizens of Africa.”

Kenya Airways is today the leading regional carrier to Africa

Mr Titus Naikuni

operating from its Jomo Kenyatta International Airport hub

Group Managing Director and Chief Executive Officer

in Nairobi. Established in 1977, Kenya Airways underwent a commercialisation and privatisation process in 1996,

KENYA PORT AUTHORITY

attracting a strategic partnership with KLM Royal Dutch Mr Brown

Airlines, to become Africa’s first privatised flag carrier.

Managing Director KLM currently owns 26% of the stakes, and the joint ven-

P.O. Box 95009, Mombasa

ture runs ten weekly flights to London Heathrow and seven

Tel: +254-41-312211

weekly flights to Amsterdam Schiphol.

Fax: +254-41-311867 Email: info@kenya-port.com

Kenya Airways also operates 22 destinations in Africa in 18

Website: www.kenya-ports.com

countries, and two destinations in the Middle East. Since 2003, Kenya Airways has added four destinations (Djibouti,

The port of Mombasa is the main gateway for Kenya inter-

Hong Kong, Bangkok and Lubumbashi) and plans to open

national trade and a transit gateway for Uganda, Rwanda,

new routes to Maputo, Dakar, Freetown and Istanbul in

Burundi, the eastern part of the Democratic Republic of

2005, when routes to China will also be opened.

Congo and Southern Sudan, among others.

Kenya Airways has gone through a number of major

In 2004 the port handled over 12 million tons of cargo inclu-

changes since 2003; the introduction of new routes, impro-

ding 2.4 million tons of transit goods, with a 19% increase

vement of traffic connections and the modernisation of the

in traffic since 2000. The port of Mombasa is one of the

fleet (with the introduction of the new Boeing 777-200ER

world’s biggest ports of call for cruise liners on international

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T R A N S P O RT & C O M M U N I C AT I O N S itineraries.

eBizguides Kenya

KPA has recently revised the port layout to allow different types of cargo to be handled in different areas for greater

The port handles a wide range of cargoes including dry bulk,

efficiency. The Kenya Port Authority has also invested in a

liquid bulk, bagged products and containerised cargo (70%

phased programme of information technology that will

of cargoes). With a modern container terminal, adequate

cover all the ports operations from cargo tracking to custom

facilities for general cargo, Kenya Port Authority, the

clearance to management of shore side equipments.

government organisation that manages the port, offers a

Through more efficient use of space and improved handling

diverse range of services including pilotage of ships, ber-

facilities, KPA aims to reduce average dwell time to one to

thing of ships, stevedoring, shore handling of cargo, deve-

five days.

lopment and management of inland container depots,

KPA is currently investing in a new container berth at a

which extend port services closer to users.

second terminal nearby and has plans to convert berth 1 and

Kenya Port

Authority has developed third-party services for bunkering

2 into an ultra modern cruise complex.

to ships, ship handling as well as clearing, forwarding and warehousing services. Container services are provided by

Kenya Port Authority is planning to create an export proces-

liner vessels while other types of cargo are carried by liner

sing zone or possibly a free trade zone outside the main port

and tramp vessels. There are regular feeders services bet-

area of Mombasa. Such a zone would allow the port of

ween Mombasa and Dar-Es-Salaam, Durban, Mogadishu,

Mombasa to be more directly involved in value added activi-

Djibouti and Dubai.

ties such as cargo processing and logistics. Rush hour can cause congestion in cities

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

KENYA RAILWAYS CORPORATION

Under the arrangement, the operator will pay the government a lump sum in exchange of exclusive rights to operate

Eng. Vitalis Ong’ng’o

on the main line and the principal branch line to Kisumu.

Managing Director

The concession will provide non-exclusive rights to operate

Haile Salassie Av

on the additional existing branch lines and allow other

P.O. Box 30121, 00100 Nairobi

potential operators to negotiate commercial arrangements

Tel: +254-20-201211

with the concessionaire for using the branch lines. The agre-

Fax: +254-20-224156

ement with the winner was be signed on 26th August 2005.

Email: mdkrc@insightkenya.com

MULTICHOICE DSTV KENYA Kenya Railways Corporation is a government parastatal Mr Peter Fauel

company established in 1978, providing the only train ser-

General Manager

vice in Kenya for freight and passengers. Railway is the second most important mode of transport in the country

Karuna Road, Westlands

after road.

P.O. Box 60406, 00200 Nairobi Tel: +254-20-4449000

Kenya Railways operates a fleet of about 156 locomotives

Fax: +254-20-4446768

and 6,407 wagons for the main line, branch line and shun-

Email: pfauel@kenya.multichoice.co.za

ting. The rolling stock operates along the 1,876 km routes

Website: www.dstv.com

over 150 stations.

The mainline runs from Mombasa MultiChoice Kenya, the official agent of MultiChoice Africa

through Nairobi to Malaba on the border with Uganda.

in Kenya, was established in 1995 as a joint venture betKenya Railways plays a major role in passenger movement in

ween MultiChoice Africa and the Kenya Broadcasting

the country with over 4.7 million passengers per annum.

Corporation. MultiChoice Kenya was established to provide

The operations are classified into “commuter service”, “long

subscriber management services for DStv subscribers in

distance passenger trains” and “happy valley steam excur-

Kenya.

sion”. MultiChoice Kenya is part of the DStv offering, which has Kenya Railways provides freight services within the country

improved the standard and scope of African television enter-

and handles transit traffic to and from land-locked countries

tainment by providing subscribers with a choice of over 40

like Uganda, Rwanda, Burundi, DRC and Comesa countries.

world-class television channels and over 20 audio channels

The Corporation moves about 2.3 million tonnes of traffic a

to satisfy the different language, cultural, informational and

year.

entertainment needs of African subscribers.

The main commodities ferried include cement, coffee, containers, soda ash, sugar, salt, fluospar, petroleum products,

In the nine years since incorporation, the company has incre-

grains, paper, timber, agricultural goods and dairy products

ased the number of subscribers from 2,000 to over 18,000

among others. KRC handles 30% of the traffic of the port

active viewers.

of Mombasa and has adopted the use of block trains to improve the transit time and the wagon turnaround. KRC

MultiChoice is very active in the local community: the com-

also operates container-carrying trains (railtainers) between

pany promotes local industries and funds several initiatives

Mombasa and Nairobi.

such as the Famine Fund, the Elephant Orphanage and the

Kenya Railways is currently implementing a streamlining

famous Rhino Charge, and has been an active supporter of

strategy to cut costs and improve overall efficiency. In the

the Kenyan National Olympics team.

long run, the government is seeking to privatise Kenya Railways through a long-term concession to an operator.

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POSTAL CORPORATION OF KENYA

eBizguides Kenya

Website: www.posta.co.ke

Mr Dan K. Ameyo Postmaster General/CEO

Postal Corporation of Kenya was established in 1999, follo-

Posta Road, off Kenyatta Avenue

wing the liberalisation of the communication sector.

P.O. Box 34567, 00100 Nairobi

1999, the Kenya Posts & Telecommunications Corporation

Tel: +254-20-243434

(KP&TC) was split into three entities: Telkom Kenya Ltd,

Fax: +254-20-246156

Postal Corporation of Kenya (Posta) and Communications

Email: pmg@posta.co.ke

Commission of Kenya (regulator). Postal Corporation of Kenya has a national network of 890 post offices

226

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

Postal Corporation of Kenya has a network of nearly 900

Corporation of Kenya has a great focus in the improvement

post offices countrywide, and offers a wide range of com-

of quality of service, provision of universal services, better

munication and financial services including money transfers,

management of its resources and improving profitability. To

international and domestic mail and parcel handling, EMS

this end, the Corporation is undertaking structural and

Kenya Worldwide Courier, as well as communication solu-

management changes that will enhance better performance

tions such as a business reply service, premium agency ser-

and greater economic contribution.

vices, direct mail marketing and philately. The mail and cou-

The Postal Corporation of Kenya has recently set up a V-SAT

rier departments offer customised services including pos-

system and related installations covering nearly 400 outlets

tpaid mail for bulk mailers, pre-paid cash and franked mail,

throughout the country, to facilitate a platform for provision

same-day EMS deliveries and overnight EMS deliveries. EMS

of e-based products and services such as internet access

delivers to over 3,000 destinations worldwide.

(postasurf), e-mail and electronic money transfer. PCK aims at being the leading organisation in the country to facilitate

Since the postal sector reform started, public postal utilities

access to the information superhighway for the greater

have been exposed to competition from the private sector,

majority of the Kenyan people, particularly in rural areas.

and the post is currently faced with unprecedented competition from new modes of communication.

Postal

Other developments in the area of new technologies include

The current market demand for telephony in Kenya is between 4.7 and 9.4 million telephones

eBizguides Kenya

T R A N S P O RT & C O M M U N I C AT I O N S

track and trace for international EMS service, and automa-

which provides daily agricultural commodity prices through

tion of business operations and managements systems.

SMS.

Safaricom also provides its corporate clients with

unique range of tailor-made services such as recently launThe corporation is also working with the Communications

ched “Moneyline” service, which provides daily updates on

Commission of Kenya to establish a universal service fund to

share prices on the Nairobi Stock Exchange and daily foreign

help in the roll-out of communications services to remote

exchange rates from leading banks and forex bureaus.

and rural areas.

Safaricom is currently the only network with GPRS and GPRS Roaming and is set to launch new products that will provide

SAFARICOM

business and personal solutions to its growing Kenyan subscribers.

Mr Michael Joseph Chief Executive Officer

Since its inception, Safaricom has been dedicated and com-

Safaricom House, Waiyaki Way

mitted to contributing positively to the economic develop-

P.O. Box 46350, 00100 Nairobi

ment of Kenya and its local communities.

Tel: +254-20-4273102

Safaricom Foundation in association with Vodafone Group

Fax: +254-20-4272507

Foundation and as part of its passion for the world around

Email: mjoseph@safaricom.co.ke

us, the company contributes by investing on projects ran-

Website: www.safaricom.co.ke

ging from primary health care and education to human wildlife conflict management.

Through

In the field of education,

With a growing subscriber base of 2.5 million and a market

Safaricom has developed the “Telecommunications Award

share of 70%, Safaricom Ltd is Kenya’s leading mobile tele-

for Academic Excellence”, which seeks to motivate and

phone operator and one of the largest and most profitable

reward top university students from all the local universities.

companies in Kenya. Safaricom was formed in 1997 as a

The company has also launched the “Total War on AIDS”

fully owned subsidiary of Telkom Kenya. In May 2000,

scratch card campaign, and is the sponsor of many sporting

Vodafone Group Plc, acquired a 40% stake and manage-

events such as the Kenya Sportsperson of the Year Awards

ment responsibility for the company.

and Safaricom Marathon run in a wildlife game reserve.

The company prides itself with having the biggest network

“A significant part of the economy is informal and is

coverage in Kenya and the widest distribution network in

being facilitated by the mobile phone sector.

the country. Distribution dealers and sub-dealers can be

Safaricom promises to transform communities in

found at every corner . With its strong customer focus and

Kenya so that the mobile phone should no longer be

high quality of service, Safaricom has become one of the

a status symbol but a business and

leading brand names in Kenya rivaling well-established

personal tool.”

FMCG companies. The company will continue to grow with

Mr Michael Joseph

the market that is expected to reach 7 million subscribers in

Chief Executive Officer

the next five years. Safaricom provides its subscribers with the largest range of postpaid and prepaid tariffs. The prepaid tariffs “Jambo”, “Tariffic”, “Taifa”, “Traveller” and “Sema” are adapting to every lifestyles and every pocket. Safaricom leads in introducing innovative products adapted to the Kenyan market such as “Simu Ya Jamii”, the community phone concept that has revolutionalised accessibility of mobile telephony among the lower-income population, which cannot afford a handset.

Another ingenious product is “SMS Sokoni”,

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SAFARILINK

eBizguides Kenya

Corporation of Kenya. TKL commenced business in July 1999 and granted nine licences to provide and operate

Mr J. Buckley

various telecommunications services.

Managing Director ALS Building, Wilson Airport

In 1999 Telkom Kenya was granted a five-year exclusivity in

P.O. Box 41937, 00100 Nairobi

the provision of certain segments of telecommunication ser-

Tel: +254-20-600777/87

vices such as the operation of local systems and provision of

Fax: +254-20-600039

local services, the operation of long distance systems and

Email: admin@safarilink.co.ke

provision of long distance services, the operation of interna-

Website: www.safarilink.co.ke

tional system and provision of international services, the operation and provision of VSAT services, the provision of

SafariLink is a new Kenyan company providing air services to

internet back-bone services and facilities, the provision of

the local tourism industry. The company’s main shareholder

GMPCS services, the provision of customer premises wiring,

is Aircraft Leasing Services Ltd (ALS) Ltd, which has been

terminal equipment and maintenance and repair workshop

operating air services and providing aircraft to the local avia-

services, the operation of radio systems and provision of

tion industry for many years.

radio services and the operation of value added services.

SafariLink offers a network of scheduled services that cover

Telkom Kenya’s exclusivity rights ended in 2004 and the

the main safari tourist destinations – Amboseli, Tsavo,

company is now competing with various players in the com-

Chyulus, Nanyuki, Lewa Downs, Samburu and the Masai

munication sector including 30 active ISPs, two mobile ope-

Mara. SafariLink also runs charter flights within Kenya and

rators, three local loop operators, and six public data net-

throughout East Africa to meet the specific requirements of

work operators. The new licensing framework provides for

its clients.

the licensing of additional internet backbone and gateway operators, broadcast signal distributors and commercial

Safarilink operates a five-seat Baron, 10- and 13-seat

VSAT operators on a first come first served basis. Currently

Caravans, an 11-seat KingAir and 19-seat Beechcraft

Kenya has one internet backbone operated by the incum-

B1900s. The engineering section of ALS Ltd carries out

bent, and two commercial VSAT operators, run by Telkom

maintenance of the aircraft under the approval of the

Kenya and Gilat Alldean.

Kenyan Civil Aviation Authority. All the aircrafts are insured in the London market through Marsh Aviation.

With over 18,000 highly skilled, professional and experienced staff, and a yearly turnover of KSH22 billion, Telkom

TELKOM KENYA

Kenya will keep being a key player of the sector, through its strong brand, its countrywide network infrastructure and

Eng. John Waweru

existing collaboration with regional and international opera-

Managing Director

tors.

Teleposta Tower, Kenyatta Av, Nairobi

Telkom Kenya is digitalising all the exchanges and introdu-

Tel: +254-20-232433/247833

cing new services such as VOIP that will enable customers to

Fax: +254-20-251071

make call over the internet protocol at a much reduced rate,

Email: mdtelkom@telkom.co.ke

broad band services to connect customers through fibre for

Website: www.telkom.co.ke

a better quality services at high speed. Last but not least, Telkom Kenya is developing a CDMA phones service which

Telkom Kenya (TKL) was registered as a limited liability com-

allows customers to be connected to wireless phones.

pany in 1997 following the liberalisation of the sector and the split of Kenya Posts & Telecommunications Corporation into two independent entities: Telkom Kenya and Postal

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T R A N S P O RT & C O M M U N I C AT I O N S

TNT INTERNATIONAL EXPRESS

WANANCHI ONLINE LTD

Mr Samuel Gichohi

Ms Njeri Rionge

Country Manager

CEO

TNT Building, Kiambere Rd

Loita House, First Floor, Loita Street

P.O. Box 41520, 00100 Nairobi

P.O. Box 10286, 00100 Nairobi

Tel: +254-20-2718782

Tel: +254-20-313985–9

Fax: +254-020-2717990

Fax: +254-20-313922

Email: sgichohi@tntkenya.com

Email: info@wananchi.com

Website: www.tnt.com

Website: www.wananchi.com

TNT Express is one of the leading providers of business-to-

Wananchi Online Limited is one of Kenya’s Leading internet

business express delivery services. With a fleet of 43 jet

service provider. Launched in 2000, the company offers fast

freighter aircraft and 20,000 road vehicles, TNT provides on-

and affordable connectivity to the internet for individual

demand time-definite and day-certain door-to-door delivery

consumers and businesses. Wananchi has created “Kenya’s

services for documents, parcels and freight.

most affordable and radical pricing policy for internet connectivity” making access to the internet affordable and

Established in 1946 TNT Express is now a global integrator

accessible to the Kenyan market. The company provoked a

and offers a range of international express delivery services

paradigm shift for the competitors and the market at large.

in more than 200 countries. After just five years of existence, the company has been the TNT was established in Kenya in 1981 and has grown to

first ISP in Kenya and East Africa to receive the ISO 9001 cer-

become one of the leading business-to-business (B-to-B)

tification and has been ranked the leading web hosting

express delivery service provider with a market share of 20%

company and domain name local internet registrar.

and over 50,000 tons of documents and parcels delivered

Wananchi is also among the top 5% domain hosting

every year. As the specialist of b-to-b deliveries, TNT counts

Ccompanies worldwide and has achieved a market share of

a number of big corporates and institutions among its

23% in Kenya.

clients; for instance, TNT organises the shipment of all material of Kenya Tourist Board to the international trade and

The company offers a wide range of services all packaged

tourist fairs in the world.

either as Tunda (dial-up) or Xplore (corporate service, leased line). The company has over 17,000 Tunda customers and

TNT prides itself on providing a high quality of service. Its

150 Xplore customers, including Kenya Revenue Authority,

personalised service, reliability and efficiency have boosted

Nairobi Stock Exchange, Ernst & Young, American Embassy

the company to achieve an annual growth rate of 20%. The

and Galileo Kenya.

company has a strong emphasis on customer satisfaction and has been investing in workforce training and infrastruc-

The company has recently rebranded and repackaged its

ture to offer the best services to its customers. TNT expects

products to better satisfy and suit the specific needs of its

to increase its market share to 30% in the forecoming years.

customers from the largest corporates, small- and mediumsize companies to the individual internet user. Technologies such as wireless and mobile internet and WAP, accelerated dial, access to information for business executives, policy makers and leaders and voice over IP are in advanced stages of development and will constitute added value services to existing and new customers.

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232

eBizguides Kenya

L E I S U R E

â&#x20AC;&#x153;Look at where you will be going before you get thereâ&#x20AC;? Kenyan proverb

233

LEISURE

eBizguides Kenya Nyama choma is different kinds of barbecued meat.

INTRODUCTION

Kenyans mostly eat goat or beef, and sometimes pork. Kuku (chicken) is also common. Samaki (fish) is mainly

Welcome to exotic Kenya, the land that presidents, celebri-

eaten at the coast. The most popular fish in Kenya is the

ties, royals, businessmen or tourists have chosen to visit.

red snapper, kingfish, sea-perch, jumbo prawns, crabs,

Kenya, a land where you can find everything that you are

oysters and sailfish. In the Lake Victoria region, tilapia

looking for. From the sandy desert in the north, to the

and Nile perch are the most common catches.

white beaches along the coast; from national parks to marine parks, from archaeological sites to developed cities.

Ugali is the most well-known Kenyan dish. It is a kind of

Kenya offers some of the finest natural attractions in the

mash made from ground maize flour served steaming

world, which combined with a network of the outstanding

hot. It is eaten by rolling it into a small ball, so you can

hotels and game lodges give visitors great value for money.

use it to scoop up the sauce or gravy of the meat or fish

In terms of sights, sounds and smells, Kenya is the ultimate

stew.

fantasy destination, and the flora and fauna are spectacular Irio is the most popular dish. It is made out of beans, spi-

to see and discover.

nach, maize and potatoes, all cooked and mashed togeKenya has 59 national parks, game reserves, and marine

ther. Sukuma wiki is a kind of local spinach, although it

parks and reserves, which account for approximately 11%

is a little bit more bitter than the European variety. It is

of Kenya’s surface area. There are seven designated major

served chopped fine and stir-fried with tomatoes and

tourist circuits, and seven other minor circuits. Each circuit

onions.

is made up of a number of national parks and game reserves and is home to wildlife that is unique to that par-

Githeri is a traditional Kikuyu dish, which is served

ticular habitat. No matter at what time of the year you

nowadays nationwide.

come, you fill always find the “space” that Kenya has to

maize mixture to which is added onions, carrots, toma-

offer.

toes, spinach and occasionally diced meat.

FOOD AND DRINK

Cheese is produced by Brown’s cheese company, which

It consists of a red bean and

makes very good Camembert, Brie, Stilton, Gouda, goat

KENYAN FOOD

cheese and other cheeses; though Kenyans are not very big cheese eaters.

Traditional food is not one of Kenya’s highlights, but those who venture into the world of Kenyan food will find it

KENYAN DRINK

filling, plentiful, and tasty. Kenya’s traditional food consists mainly of protein, complex carbohydrates, and high fibre

Tea: The national beverage is chai (tea). Kenya’s tea

and iron foodstuffs.

It is mostly vegetable-orientated,

industry dates back to 1903 when production started.

although you will invariably find signs for barbecued meat

Known throughout the world for its consistently high

all over the country. As in many parts of Africa it is custo-

quality, the tea comes mostly in bags, but Kenya also has

mary to eat only with the right hand, as the left is consi-

at least one producer of instant tea (African Highlands).

dered “dirty”. For breakfast, most Kenyans have tea with

For Kenyans, the tea breaks during work are very impor-

bread; for lunch and dinner they mash from ground maize

tant, as they are the time for employees to get together.

flour, beans, spinach, maize and potatoes, spinac or red

They mainly drink their tea with lots of milk and sugar.

beans, maize and vegetables served with meat or fish. Coffee: Kenya is also a large coffee producer. Its coffee These are some of the most common foods eaten in Kenya:

is much sought after and well known worldwide for its quality and flavour. The especially rich volcanic soil of

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Kenya’s Highlands coupled with the equatorial climate, a

Other Alcoholic Drinks: Kenya also produces local gin,

light use of fertilisers and insecticide, and hand picking,

vodka or the very well-known Kenya Cane (white rum),

enable Kenya to produce its high-acidity yet mild Arabica.

but we do not recommend drinking it unless you don’t

In the past coffee companies have opened coffee houses

mind having a headache the next day. There is also the

like Java House (Website: www.nairobijavahouse.com),

famous Kenya Gold, which is a safer option and is really

which now has several establishments in Nairobi, and

quite good.

Dormans (Website: www.dormans.com). See the list of Dawa: Dawa is a famous drink, originally served in the

restaurants on p.000 for locations.

Carnivore. It is made out of vodka, lime, honey and Other Hot Drinks: Hot chocolate drinks (Milo, Bournvita

crushed ice, like a Caipirinia, but as no one could agree

and Cadbury) are also widely available.

on how to spell it, the Carnivore management decided to call it Dawa, which is the Swahili word for medicine.

Beer: The most widespread alcoholic drink is lager beer,

Since then, the Dawa has almost become the national

which is brewed locally and generally pretty good. The

cocktail.

most famous and most widely sold ones are Tusker, Tusker Malt, Pilsner and White Cap. If you ask for a beer

Water: There are several water companies in Kenya that

in a bar or restaurant, specify if you want it chilled, as

sell still and sparkling water. We recommend you not to

Kenyans often drink their beer warm.

drink water from the tap even if it is reputed to be safe. The most well known manufacturers of bottled water are

Wine: Although Kenya produces some wine it is of indif-

Aquamist, Keringet, Kilimanjaro and Mayers.

ferent quality. Upper-range restaurants and bars serve a selection of mostly French, Italian, South African,

Sodas: You will find all possible soft drinks in Kenya,

Australian and Chilean wine. Wine can be bought in

including Coca-Cola, Fanta, Sprite, Bitter Lemon, Vimto,

supermarkets, at reasonable prices.

tonic water and even Dasani water. Soft drinks can be

Traditional Recipes IRIO Potatoes • Spinach • Yellow or white maize kernels • Kidney beans • Chopped onion • Butter Soak the kidney beans overnight, and then cook them for a very long time (at least 1.5 hours). Alternatively, canned kidney beans can be used. Peel, cook and mash the potatoes, then add the spinach and season with salt and pepper. Fold the onion into the spinach and mash mix, add the maize and the beans with a little butter, and re-cook until the maize is soft. Once soft, roughly mash again and serve with meat stew or tomato sauce.

DAWA Vodka Ice Limes (cut in pieces) • Honey • A wood stick (a lollypop stick will do) Put the ice and lime pieces into a glass. Using the stick crush the limes a little so that they give up some of their juice. Pour on the vodka. Use the stick, covered in a generous amount of honey, to stir and sweeten the drink. It is also nice served with a twist of whisky. Not for the faint hearted as the rhyme goes: “One Dawa, Two Dawa, Three Dawa, Floor…!”

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purchased for KSH30 a bottle but this can go up to

some tapes with Kenyan music that you can find, for

KSH100 in exclusive places. Aquamist has also started a

example, “Gonda Traditional Entertainment”, “Bomas of

line of fruit-flavoured sparkling waters, called Vital,

MALAIKA’ MALAIKA’

which are popular.

(traditional (traditional song) song) Juices: Del Monte is the biggest company selling juices, but all over Kenya most establishments supply their own

Malaika, nakupenda Malaika

Angel, I love you

Malaika, nakupenda Malaika

Angel, I love you

Angel

fresh juices, ranging from KSH40 to KSH130 a glass. An interesting and highly nutritious drink to be tested by visi-

Angel

tors is fresh coconut juice, made from the green coconuts (soft ones) sold by street vendors particularly along the

Nami nifanyeje, kijana mwenzio? And me, what shall I,your boyfriend do?

coast. Nashindwa na mali sina wee

If I weren’t struggling

Ice: As in all African countries, be

for money

careful with ice. Try always to get your

Ningekuoa malaika

drinks chilled, so ice is not necessary.

Nashindwa na mali sina wee

I would marry you Angel If I weren’t struggling for money

Ningekuoa malaika

I would marry you Angel

KENYAN MUSIC Pesa zasumbuwa roho yangu

Money is the source

Pesa zasumbuwa roho yangu

Money is the source

Compared with other African countries, like Congo or Cameroon, Kenya is not known for its music. Although

of my heartache

Kenya has a rich musical tradition, you hardly hear about any Kenyan “pop stars”. However, when travelling, espe-

of my heartache Nami nifanyeje, kijana mwenzio? And me,

cially if you visit game lodges or hotels on the coast, you will encounter many tribal dancing spectacles. There are

what shall I, your boyfriend do? Nashindwa na mali sina wee

If I weren’t struggling for money

JAMBO BWANA’

Ningekuoa malaika

(traditional song)

Nashindwa na mali sina wee

I would marry you Angel If I weren’t struggling for money

Jambo, jambo Bwana Habari gani ?

Hello, hello Mister How

are

Kidege, hukuwaza kidege Very well

Wageni, mwakaribishwa Visitors, you are wel-

Hakuna matata Kenya ni nchi nzuri Hakuna matata Nchi ya kupendeza

Little bird, I’m always dreaming of you little bird

Kidege, hukuwaza kidege

comed Kenya yetu

I would marry you Angel

you

doing? Nzuri sana

Ningekuoa malaika

Little bird, I’m always dreaming of you little bird

in our Kenya

Nami nifanyeje, kijana mwenzio? And me,

There are no problems Kenya’s a beautiful country

what shall I, your boyfriend do? Nashindwa na mali sina wee

There are no problems A pleasing country

Hakuna matata

There are no problems

Nchi ya maajabu

A country of wonders

Hakuna matata

There are no problems

If I weren’t struggling for money

Ningekuoa malaika Nashindwa na mali sina wee

I would marry you Angel If I weren’t struggling for money

Ningekuoa malaika

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I would marry you Angel

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Kenya”, “Folk Music of East Africa”, “Muziki Wa Kiasili”

almost equal nights and days all year round. The sun

and “Traditional Musical Instruments of Kenya”.

rises around 6–6.15am and sets around 6.30-7pm.

There are two songs in Kiswahili that everybody, tourist

There are two main rainy seasons, the first one from late

or businessman, will hear at least once during their stay

March to early June and the second from late October

in Kenya (see yellow boxes).

through November. In the past year Nairobi has seen some rainfall in January although it is not common;

NAIROBI AND ENVIRONS

otherwise it has unbroken sunny weather.

July and

August are the coolest months and the days are often overcast, but the rain does not interfere with safaris, as

Nairobi, the capital of Kenya, is a young, modern and

all the roads remain passable when it rains.

dynamic city established one century ago. Before that, until the 1890s, this was just an isolated swamp. It has

Security in Nairobi has worsened in the past few years

about 2.5 million people at present, with a downtown

and many people call the town “Nairobbery” – be careful

area that has become a cosmopolitan district with high-

if you want to walk in and around town. Do not walk

rise offices, hotels, cinemas, apartments and much more.

around with jewellery or valuables exposed to the public.

Nairobi is one of the biggest cities in Africa after Cairo,

If you want to walk in Nairobi, make sure you ask the

Lagos and Johannesburg.

hotel porters or friends where the safe roads are.

Nairobi is well known for its pleasant climate. During the

Nairobi has a lot to offer even if it has a bad reputation.

day it can get very warm, but at night it is cool and dry.

There are a large number of hotels, restaurants, bars,

Due to its location, not far from the Equator, Nairobi has

sports facilities, galleries, parks and museums. Nairobi

This is Nairobi!

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also has a big conference centre (KICC), and the mee-

vidual small ones you find in the shopping malls, you will

tings of many international companies and the United

be able to find all kinds of European or Asian products.

Nations are held here.

There has been continuing improvement on imported goods from Europe and Asia. If you go to the big local supermarkets like Nakumatt, or Uchumi, or even the indiMr Dawa and his wonderful cocktail

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WHERE TO STAY

Fairview Bishops Road, Upper Hill

Hotels

Tel: +254-20-2711321 Fax: +254-20-2721320

There are a large number of hotels in Nairobi. Depending

Email: book@fairviewkenya.com

on your budget and/or required location, you will be able

Website: www.fairviewkenya.com

to find something appropriate. Grand Regency Since late 2004 business in Nairobi has

Loita Strret/Uhuru Highway, City Centre

picked up; conferences are frequently

Tel: +254-20-211199

held in the city and tourism has also

Fax: +254-20-217120

accelerated strongly. We therefore recommend that

Email: gregency@africaonline.co.ke

you book your hotel room in advance, well before

Website: www.grandregency.co.ke

arriving in Nairobi, as you risk not finding one if you leave it too late.

Hilton Mama Ngina Street, City Centre

Standard rooms vary in cost at between US$60 and

Tel: +254-20-250000

US$250, all taxes included.

Fax: +254-20-250099 Email: hilton@africaonline.co.ke Website: www.hilton.com Unwind after work with a tropical sundowner (Sun â&#x20AC;&#x2DC;nâ&#x20AC;&#x2122; Sand)

LEISURE

eBizguides Kenya

Holiday Inn/Mayfair

Fax: +254-20-229388

Parklands Road, Parklands

Email: reservations@thestanley.sarova.co.ke

Tel: +254-20-3740920

Website: www.sarovahotels.com

FaxÂ¨+254-20-3748823

Old British style

Email: mayfair@africaonline.co.ke Website: www.holiday-inn.com/nairobikenya

Apartments to rent

Intercontinental

There are more and more opportunities to rent apart-

City Hall Way, City Centre

ments in short or long term in Nairobi. Most of the apart-

Tel: +254-20-32000000

ments consist of one to four bedrooms and are already

Fax: +254-20-213806

furnished. Monthly rents are KSH50.000â&#x20AC;&#x201C;170,000.

Email: reservations@interconti.com Website: www.sixcontinents.com

Chania Apartments Chania Ave., Kilimani

Jacaranda Hotel

Tel: +254-20-229117

Waiyaki Way, Westlands

Fax: +254-20-241160

Tel: +254-20-4448713

Email: info@regent-mgt.com

Fax: +254-20-4445817 Email: jacarandahotel@aol.co.ke

The Gables

Website: www.jacarandahotel.com

East Church Road, Westlands Tel: +254-20-4444630

Norfolk

Fax: +254-20-4444631

Harry Thuku Road, City Centre

Email: info@the-gables.com

Tel: +254-20-250900

Website: www.the-gables.com

Fax: +254-20-250200 Email: norfolkreservations@lonrhohotels.co.ke

Mimosa Court Apartments

Website: www.lonrhohotels.com

Mucai Drive, off Ngong Road Tel: +254-20-2726591

Safari Park Hotel

Fax: +254-20-2715724

Kasarani, off Thika Road

Email: info@mimosacourt.com

Tel: +254-20-3633137

Website. www.mimosa.kenyaweb.com

Fax: +254-20-861584 Email: sales@safariparkhotel.co.ke

Njema Court Executive Apartments

Website: www.safaripark-hotel.com

12, Rhapta Road, Westlands Tel: +254-20-4445117, 4442576

Serena Hotel

Fax: +254-20-4443468

Kenyatta Avenue, City Centre

Email: faburex@iconnect.co.ke

Tel: +254-20-2711077 Fax: +254-20-2718103

Palacina Residential Hotel

Email: cro@serena.co.ke

off Denis Pritt Road, Hurlingham

Website: www.serenahotels.com

Tel: +254-20-2715517 Fax: +254-20-2715519

The Stanley

Email: palacina@form-net.com

Kenyatta Avenue, City Centre

Website: www.palacina.com

Tel: +254-20-333233

Riverside Park

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Chiromo Road, Westlands

chains including Nando’s, Pizza Inn and Chicken Inn. All

Tel: +254-20-4446551

the restaurants below are good, and come recom-

Fax: +254-20-4445289

mended, but some carried more weight with our team:

Email: riverside.park@knightfrank.co.ke African Heritage Yaya Apartments

Libra House, Mombassa Road, Nairobi

Argwings Kodhek, Hurlingham

Tel: +254-20-890528/530055

Tel: +254-20-2713360

Self-service restaurant in a large indoor handicraft

Fax: +254-20-561902

market. Good for lunch.

Email: aptments@africaonline.co.ke Alan Bobbe’s Bistro

Website: www.yaya-apartments.com

Cianda House, Koinange Street, City Centre

WHERE TO EAT

Tel: +254-20-336952 Excellent French food, set in a traditional French bistro.

Apart from the usual traditional Kenyan Nyama Choma restaurants, and hotel restaurants, Nairobi has a number

Café Latino

of pleasant restaurants offering a variety of the world’s

Village Market, Gigiri

cuisines.

Tel: +254-20-7122661

There are also some well-known fast-food

Nairobi’s markets are great for picking up souvenirs of your trip

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Italian restaurant in a great open air mall, like in the USA.

Westlands, Mpaka Road,

Beautiful setting.

Tel: +254-20-4445661/6144/5939 Well-known Chinese restaurant, good food. Carnivore Off Langata Road

Chow Paty

Tel: +254-20-602775

Highridge (next to Nakumatt Highridge)

One of the best meat restaurants in the

Tel: +254-20-3755050

world serving the usual and exotic.

Excellent vegetarian restaurant, serving Indian food. A

Good fun.

must, even for meat eaters.

There is a disco and pub

attached (Simba Saloon), which is very lively on Wednesdays and at weekends.

Garden Terrace Inside the French Culture House, Loita Street, City Centre

Cedars

Tel: +254-20-219095

Lenana Road, Hurlingham

Typical French dishes, nice for a lunch at the terrace.

Tel: +254-20-710399 Nice Lebanese restaurant, serving the usual mezze.

Gipsyâ&#x20AC;&#x2122;s (Bar Tropicana) Waiyaki Way, opp. Barclays Bank, Westlands

China Plate

Tel:+254-20-4440836 / 964

Chancery Building, Valley Road,

Hot tapas, TexMex and hamburgers.

Tel: +254-20-2719194/2727627

atmosphere.

The Giraffe Manor Hotel

Cosmopolitan

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Haandi

great Teppanyaki!

The Mall, Westlands Tel: +254-20-4448294–6

Moonflower

The best Indian restaurant in Nairobi.

Inside the Palecina Hotel

There is also a Haandi in London and

Tel: +254-20-2715518

Kampala.

Beautiful atmosphere, excellent food. Enough said.

Haveli

Nairobi Java House

Capital Centre, Mombassa Road

ABC Place, Tel: +254-20-4451978

Tel: +254-20-651933 / 531607

Adams Arcade, Tel: +254-20-573583

Sister restaurant of Haandi.

Mama Ngina St, Tel: +254-20-313565 J.K.I.Airport, Tel: +254-20-827600

Karen Coffee Garden

Gigiri, Village Market, Tel: +254-20-7122153

Next to the Karen Blixen Museum, Karen

From breakfast to dinner, great coffee, nice food, no

Tel: +254-20-882138

alcohol.

Set in a nice garden, it also has jazz music and Nyama Nihonjin Restaurant

Choma at weekends.

Kayahwe Road, off Argwings Kodhek, Hurlingham Kodeta

Tel: +254-20-571106

Bogani Road, off Langata Road, Karen

Traditional Japanese restaurant, popular with the local

Tel: +254-20-891759

Japanese community. Excellent Sushi.

Good food in a nice environment, great for families too Osteria del Chianti

as they have a nice play area for children.

Lenana Street, Hurlingham Le Rustique

Tel: +254-20-2723173

General Mathenge Drive, Westlands

Pleasant Italian restaurant, with a nice atmosphere. The

Tel: +254-20-3753081

pizzas are the best here.

Great for lunches, but only opens one day a week for dinner (Wednesdays at the time of writing).

It also

houses a great little deli counter and craft shop.

Pavement Westview centre, Westlands Tel: +254-20-4441711

Lord Erroll

They have everything you need – restaurants, bar, and

Runda Estate, off Limuru Road, near Village Market

disco. Good mix of quality cuisine, and always in fashion

Tel: +254-20-7121308

since it opened.

Swiss–French cuisine, very nice.

Racecourse At the racecourse, off Ngong Street

Mediterraneo

Tel: +254-20-566108

Pamstech House, Westlands

Great on racecourse days but very nice also for dinner.

Tel: +254-20-4447494 Rusty Nail

The best traditional Italian restaurant in town

Dagoretti Road, Karen Misono

Tel: +254-20-882461/3891

Lenana Street, Hurlingham

Set in a beautiful house, with a very nice

Tel: +254-20-4168959

terrace. The food is very good, and the

Very good Japanese food with nice atmosphere; serves

setting lends itself well to lunches.

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A DRINK OR TWO IN NAIROBI

Salumeria Valley Arcade Tel: +254-20-575226

There are several places to go out and have a drink.

Another excellent restaurant in Nairobi

Depending on your taste, if you want to go where all the Spice Roots

expats are, or if you prefer to mingle with the local

Masari Road, Parklands

people, you have a wide choice. Our favourites were:

Tel: +254-20-3752658/4443015/3754861 There are two eating options – the restaurant or book a

Casablanca

“Banda” where the staff provide all the fresh ingredients

Lenana Road, behind Osteria del

and you cook for yourselves, or they cook for you. Great

Chianti, Hurlingham

fun if you are in a group, and the food is excellent.

Tel: +254-20-2723173 Very nice setting where you can smoke

Talisman

a sheesha and drink cocktails. Packed at

320 Ngong Road, Karen

weekends, but equally good for a quiet

Tel: +254-20-883213

drink during the week.

Nice fun atmosphere for lunch and dinner, great food. Florida 2000 Tamambo

Commerce House, Moi Avenue

The Mall, Westlands

Tel: +254-20-229036

Tel: +254-20-4448394

Very well-known disco where you find more escort ladies

The “African Bistro”. Elegant setting

than clients.

with very good food. Gipsy’s (Bar Tropicana) Tamarind

Waiyaki Way, opp. Barclays Bank, Westlands

National Bank Building, City Centre

Tel: +254-20-4440836/964 Fun place where lots of expats, as well as Kenyans, go for

Tel: +254-20-338959 Beautiful, with delicious seafood.

If you can’t go to

a drink, Friday is the night.

Mombasa try this one. Jockey Pub Tokyo

Mama Ngina Street, City Centre

Village Market and in Raphta Road, Westlands

Tel: +254-20-250000

Tel: +254-20-336952/4444651

Inside the Hilton hotel, there is a new theme every night.

Excellent for Sushi. Mercury Lounge Trattoria

ABC PLace, off waiyaki way

Standard Street, City Centre

Tel: +254020-4451875

Tel: +254-20-340855

Tapas and Cocktail bar, with live jazz every Saturday

Very good Italian restaurant, serving an array of Italian

night

cuisine. Tuesdays and Fridays are their “bouillabaisse” days.

Pavement Waiyaki Way, Westlands (Across the road from Gypsys) Tel: +254-20-4441711 They have a nice restaurant, bar and disco. Many expats go there.

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Safari Bar

Simba Saloon (Carnivore)

City Hall Way, City Centre

Off Langata Road

Tel: +254-20-32000000

Tel: +254-20-602775

Inside the Intercontinental hotel; salsa night three times a

The disco and bar is very lively on

week.

Wednesdays and weekends. the concerts are held there.

Nairobi offers a wide variety of cuisine

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Soho’s

Tel: +254-20-602345

Parklands Road

Email: kws@kws.org

Indoor and outdoor area. Good ambience, attracts local

Website: www.kws.org

well to do Kenyans and expats.

The first step towards Kenya’s wildlife. You can take a nice walk during which you can see lions, cheetahs,

WHAT TO SEE AND DO

hippos and other animals. Great for children. The brave among you can even request entry into the cheetah’s pen

There are several interesting things to see in and around

at the Orphanage to pet them.

Nairobi. We have divided them into three different categories: nature, culture, galleries and shops, and cinemas.

Butterfly Africa

Take the time to visit some of the most known places to

256 Dagoretti Road, Karen

get an in-depth impression on Kenya.

Tel: +254-20-884972 Email: collinsabri@iconnect.co.ke

Nature

Website: www.african-butterfly.org

Animals are involved in most of these places, and are

A great place to go and learn more about moths and but-

great for children and adults alike to visit.

terflies.

You can even enter the enclosure and be

surrounded by beautiful butterfly varieties. Also very well Animal Orphanage and Safari walk

explained for children.

Langata Road, KWS Headquarters The Karen Blixen House where the famous character of “Out of Africa” lived

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David Sheldrick Wildlife Trust

Website: www.sheldrickwildlifetrust.org

off Magadi Road

The David Sheldrick Wildlife Trust is a small, flexible cha-

Tel: +254-20-891996

rity, established in memory of David Sheldrick, famous

Email: rc-h@africaonline.co.ke

naturalist and founder warden of Kenyaâ&#x20AC;&#x2122;s giant Tsavo

Butterfly Africa where you can even enter into the enclosure and be surrounded by beautiful butterfly varieties

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East National Park in which he served from 1948 until

Website: www.giraffecentre.org

1976. Since its inception in 1977 the Trust has played an

This centre is the creation of the Kenyan conservation

extremely significant and important role in Kenyaâ&#x20AC;&#x2122;s con-

organisation the African Fund for Endangered Wildlife,

servation effort. The orphan elephants and rhinos are

which was founded in 1979.

just some of the many wildlife commitments they are

Centre came from Jock Leslie Melvile, who saw the need

involved in. The Trust does not solicit funds and relies

to create an educational institution in conjunction with

entirely on donations. Go and see its great work first

rescuing the endangered Rothschild giraffe.

hand, and watch them work with the baby orphaned ele-

centre you can hand-feed the giraffes, which is a great

phants and rhinos, as they prepare them for their ulti-

unique experience for young and old, as well as learn

mate release into the wild. Only open 10â&#x20AC;&#x201C;11am.

more about these animals themselves.

Giraffe Centre

Nairobi National Park

Koitobus Road, off Langata Road

Langata Road

Tel: +254-20-891658

Tel: +254-20-602345

Email: info@giraffecentre.org

Email: kws@kws.org

Take some time out and relax on Lamu

The vision behind the

At the

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Website: www.kws.org

Email: bomas@africaonline.co.ke

Created in 1946, and 117 square kilometres in size, this

Kenyaâ&#x20AC;&#x2122;s folkloric art and dance is on display daily. It is an

park is the oldest one in Kenya. The main entrance is on

interesting tourist attraction where one can appreciate

Langata Road and there are six other gates.

the different tribal cultures that exist in the country.

Lions,

giraffes, zebras, rhinos and many other species make their home there, however you will not see elephants.

Karen Blixen Museum

There are also nice picnic sites if you want to bring your

Karen Road

lunch.

Tel: +254-20-882130 Visit the house where the famous Karen Blixen of Out of

Culture

Africa lived, and where they filmed the movie with Meryl

If you donâ&#x20AC;&#x2122;t have much time in Nairobi, try to see at least

Streep and Robert Redford. It is a quaint little house brin-

the famous Karen Blixen Museum.

ging together great nostalgia and historical facts under one roof, but mostly it is remnants of the film.

Bomas of Kenya Langata/Forest Edge Road

National Archives

Tel: +254-20-891801

Moi Avenue, City Centre The Peponi Hotel is tastefully decorated in the Arabic style that characterised Lamu

LEISURE

eBizguides Kenya

Tel: +254-20-228959

Railway Museum

Located in front of the Hilton hotel, this is a very interes-

City Centre

ting place to visit if you want to get to know the history

Tel: +254-20-221211

of Kenya better.

This museum is located just behind Nairobi Central Station, where you can find a lot of information about

National Museum

the history of Kenyan railways.

Museum Hill, Westlands Tel: +254-20-3743808

Galleries and Shops

Email: info@kenyamuseumsociety.org

There are lots of galleries around Nairobi. In the city

Website: www.kenyamuseumsociety.org

centre you will find them just by walking around, but the

Visiting the National Museum is a great way to get to

nicest and most original ones are:

know this country better. It is a pleasure to see the paintings of tribal peoples by Joy Adamson (of Born Free

Aranibar

fame). Once a year the Museumâ&#x20AC;&#x2122;s society organises some

Gigiri Road

courses with lectures about Kenya.

Tel: +254-20-7120330 Email: aranibarmkt@iconnect.co.ke Unspoilt beaches

eBizguides Kenya

LEISURE Kitengela Hot Glass

Very nice wooden items.

Mbagathi Home Gallery

Tel: +254-45-24117

No 272, Runda Road, Runda Estate, off Limuru Road,

Email: anselm@kitengela.com

near Village Market

Website: www.kitengela-glass.com

Tel: +254-20-7122766

The place is a mixture of Gaudi’s wild architecture and an

Mob: +254-722-703264/511871 and +254-734-545180

enchanted house. Have a look at this magic place where

Website: www.african-tribal-arts.com

old glass becomes a masterpiece.

Email: homegallery@africaonline.co.ke Pitched as a location to pick up African tribal arts and

Kazuri Beads

ethnic textiles, this place also sells great pashminas and

Karen Road, off Langata Road, Karen

other cashmere items. Call in advance.

Tel: +254-20-884058 Kazuri, which means “small and beautiful” in Swahili,

House of Treasures

began over 25 years ago as a tiny workshop experimen-

70 Dagoretti Road, Karen

ting in making hand-made beads. Its founder started

A great shop for African artefacts, from furniture to ori-

with two African women and soon discovered that there

ginal jewellery and clothes, which is well worth a visit.

were many other women in the area, mostly single

Travel around the coast on the traditional dhow

LEISURE

eBizguides Kenya

mothers, who needed regular employment, and so the

Website: www.sandstormbags.com

project grew. Today they sell a wide range of beautiful

Makers of beautiful leather and hide travel bags, and

hand painted jewellery and ceramics.

safari equipment

Matbronze

Utamaduni

Kikaru Lane, Karen

Bogani East Road, off Langata South Road, Karen

Tel: +254-20-891251

Tel: +254-20-891798

Email: matbronze@iconnect.co.ke

Email: utamaduni@kenyaweb.com

This is a wonderful foundry and shop selling beautiful

Website: www.utamadunicrafts.com

pieces, from jewellery to large pieces for the home.

A big crafts centre where you can find everything you

Really fantastic.

want without the need to bargain.

Sand Storm

Watatu Gallery

Off Ngong Road

Lonrho House, Standard Street

Tel: +254-20-567568, 570484

Tel: +254-20-228737

Email: sandstorm@africaonline.co.ke

This is well worth a visit if you are in city centre.

Some of the more touristy beaches also offer camel rides

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LEISURE

Suggestion: If you have only one day in Nairobi, go to

finding a bed or a seat. Most major hotels at the coast

Karen area and follow this itinerary: visit David Sheldrick

accept credit cards. There are several banks in Mombasa

animal orphanage (10–11), then head to Matbronze and

and the other towns on the coast where you can with-

Utamaduni for some retail therapy and a coffee, then

draw cash.

continue to the Giraffe Centre; have lunch at the Karen Coffee Garden, Kodeta, Rusty Nail or Talisman then go to the Karen Blixen Museum, and stop at Kazuri Beads

RESORTS ALONG THE COAST

before getting back.

LAMU

Cinemas Take a step back in time and visit Lamu. This is a beauThere are several cinema complexes in Nairobi:

tiful ancient Swahili island with a mainly Muslim popula-

• Fox Cineplex in the Sarit Centre (four screens)

tion. There is an airstrip on the opposite island from

• Nu-Metro cinema in Village Market (four screens)

which all the hotels will pick you up; the main form of

• Nu-Metro Prestige Plaza inside Nakumatt in Ngong

transport to Lamu itself is the traditional dhow. Try to go

Road (two screens). In 2005 it was planned that another

at least once to experience this great and different

Nu-Metro cinema would open soon at The Junction,

atmosphere, where men still wear the full-length white

Dagoretti Corner, Ngong Road

robes and women the traditional kangas. Be aware that

• Kenya Cinema, in Mama Ngina Strret, City Centre (two

outside the main hotels they do not serve alcohol.

screens). Cinema programmes are listed daily in “The Nation” and

WHERE TO STAY

“The Standard” newspapers. Island Hotel

THE COAST

Tel: +254-42-633290 Great hotel in Shela town, reputedly excellent rooftop

INTRODUCTION

restaurant

The Kenyan coast stretches some 480 kilometres (300

Kijani House

miles) from Somalia in the north to Tanzania in the south.

Tel: +254-42-633235

The coast is famous for its long white beaches and the

Email: kijani@africaonline.co.ke

coral reef that runs much of its length (230km), from

Website: www.kijani-house.com

Malindi in the north to Vanga in the south. Inside the

Charming house hotel on Shela Island.

reef, in sheltered lagoons, you can encounter magical marine plants and vividly coloured fish. There are several

Kipugani Explorer

marine parks along the coast, in Shimoni, Mombasa,

Tel: +254-42-633432

Malindi and Watamu, which protect these reefs and the

Managed by Heritage hotels group, this is a great hotel

waters they embrace. These are great places to snorkel

at the southwest end of Lamu.

and scuba dive among fish, plants and wrecks. The coast is also famous for its deep-sea fishing. From Bonitos to

Peponi Hotel

Rainbow runners, tuna or sailfish, the Kenyan coast is a

Tel: +254-42-33421, 633154

dream for fishermen.

Email: peponi@africaonline.co.ke Website: www.peponi-lamu.com

You will find a myriad of hotels along the coast. In high

Very nice hotel on Shela Island with delicious food.

season, we advise you to book your travel arrangements and hotel in advance, otherwise you run the risk of not

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Petley’s Inn

Italian resort with beautiful Swahili-style decor.

Tel: +254-42-33107 Scorpio Villas

Situated in Lamu town next to the Lamu Museum.

Tel: +254-42-20194

THINGS TO SEE

Close to a beautiful beach, and set in beautiful gardens.

If you want to explore the ancient town, visit the Lamu

THINGS TO SEE

Museum, the Swahili House Museum, the Lamu Fort, the German Postal Museum and the Donkey Sanctuary, as

Overlooking the marine park is the Vasco da Gama Pillar,

donkeys are still the main form of transport on Lamu.

a cross fashioned from Lisbon stone, which the navigator raised next to what was the Sultan of Malindi’s palace in

There are no beaches on Lamu Island itself, so if you wish

January 1499. Not far away is the Birdland Aviary, which

to walk on the white sands, you have to go to Shela

contains about 1,000 birds covering some 230 species.

Island, a ten-minute dhow trip from Lamu.

There is also a snake park north of the town, which has monkeys and tortoises.

MALINDI MOMBASA North of Mombasa, Malindi was where Vasco da Gamma first set foot in East Africa in 1498. It is effectively two

Mombasa is the gateway to Kenya’s coast and the

towns in one, a historic Swahili township with a pedigree

country’s second largest city after Nairobi. The town has

going back to the 12th century, and a modern town with

a recorded history going back more than two thousand

luxury hotels and resorts.

Since author Ernest

years and is still the major port of East Africa, with a har-

Hemingway arrived to game fish in the 1930s, Malindi

monious mixture of the ancient and the modern. Fort

has become the location of most of Kenya’s big game fis-

Jesus from the 16th century and the old town, which lies

hing tournaments.

next to the old port, are worth seeing.

WHERE TO STAY

Mombasa is an island, split between Mombasa town, the north and south coasts, and can be reached by air or

Coral Key Beach Resort

road. Many local and international charter flights land in

Tel: +254-42-30717/8

Moi International Airport in Mombasa, officially opened

Large, lively tourist resort. Well equipped.

by President Moi in August 1979. Kenya Airways and Regional Air fly several times daily to Mombasa from

Driftwood Beach Club

Nairobi.

Tel: +254-20-20155 Nice, low key resort, and unlike the Coral Key it caters

Famous for its long white beaches and its coral reef,

Mombasa has a very hot and humid climate that will take

for

individual

travellers.

a day or two to get used to. If you go for a weekend or Eden Rock Hotel

longer, there is a large choice of places to stay.

Tel: +254-42-20480 Email: edenrock@africaonline.co.ke

WHERE TO STAY

One of the oldest hotels, with a nice atmosphere. Manson Hotel Kilili Baharani Resort

Tel: +254-41-222419

Tel: +254-42-20169

This is a good option, set in a quite area of Mombassa.

Email: kilili-resort@africaonline.co.ke

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Royal Court Hotel

the north coast. If you stay on this side of the coast,

Tel: +254-41-223379

don’t miss making a visit to the Mamba village (crocodile

Email: royalcourt@swiftmombasa.com

farm) and to the Bamburi Cement trail.

Close to the station with swimming pool and two restaurants.

WHERE TO STAY

Tamarind Village

Nyali Beach Hotel (Nyali Beach)

Tel: +254-41-474600

Tel: +254-41-471551/68

Email: village@tamarindmsa.co.ke

Big hotel, with good facilities on a nice beach.

Website: www.tamarind.co.ke Beautiful complex looking over the harbour, also houses

Serena Mombassa (Kikambala Beach)

the best fish restaurant in Kenya.

Tel: +254-41-5487220–9 Email: mombasa@serena.co.ke

NORTH COAST

Website: www.serenahotels.com The best hotel on the north coast.

There are several pleasant locations to stay and visit on View from Sun ‘n’ Sand

LEISURE

eBizguides Kenya Sun ’n’ Sand Beach Resort

Restaurant is also worth a visit for its delicious food.

(Kikambala Beach)

WATAMU

Tel: +254-41-32621/008/127 Email: admin@sunnsand.co.ke Website: www.sunnsand.co.ke

Watamu is about 24km south of Malindi, another place

Set in 18 acres, and along 200 metres

with plenty of popular beach resorts, white beaches and

of beach, this is a popular hotel with

great deep-sea fishing. Offshore is the southern part of

tourists and Kenyans alike.

Recently

Malindi Marine Reserve, and the unspoilt forests of

fully refurbished, they offer an excellent

Arabuko Sokoke Forest Reserve and the Swahili Ruins of

all-inclusive rate.

Gede.

For more information look at Website:

www.watamu.org. Voyager Beach Resort (Nyali Beach)

WHERE TO STAY

Tel: +254-41-471470 Boat themed hotel, with good facilities.

Part of the Blue Bay Village

Heritage Group of hotels.

Tel. +254-42-32626 Whitesands (Bamburi Beach South)

Email: bluebay@africaonline.co.ke

Tel: +254-41-5487323

Mainly Italian clientele, with nice villas set in the garden.

Email: gm@whitesands.sarova.co.ke Website: www.sarovahotels.com

Hemingways

Nice hotel with a huge swimming pool, lots of waters-

Tel: +254-42-32624

ports facilities, and several restaurant options, good all

Email: hemingways@swiftmalindi.com

round location.

Website: www.hemingways.co.ke Beautiful hotel, good for deep-sea fishing.

SOUTH COAST THINGS TO SEE Diani Beach is the south coast haven for tourist and residents, with several top-class hotels, as well as many out-

The Gede Ruins are 4km from Watamu, just off the

door marine sports such as deep-sea fishing, scuba

Malindi–Mombasa Road, and they are one of the prin-

diving, wreck diving, golf, etc. The Aga Khan Hospital is

cipal historical monuments on the coast.

on this coast.

have uncovered Ming Chinese porcelain and glass and earthenware from Persia.

WHERE TO STAY

Excavations

Within the compound are

ruins, mosques and the regal ruins of a Swahili palace. Outside the Gede Ruins is a butterfly farm.

Leisure Lodge

WHERE TO EAT

Tel: +254-40-3202620 Email: leisure@africaonline.co.ke Website: www.leisurelodgeresort.com

If you don’t want to have dinner at your hotel, you have

The sea on one side, and golf on the other…Perfect.

the following possibilities:

Leopard Beach Hotel

Ali Barbour’s

Tel: +254-40-3202721

South Coast, Diani Beach

Email: leopard@iconnect.co.ke

Tel: +254-40-3202033 Dinner in a cave at the beach, nice atmosphere.

Website: www.leopardbeachhotel.com A beautiful hotel with all the comforts.

The Chui

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Aniello’s Restaurant

a dhow boat.

South Coast, Diani Beach Tel: + 254-733-740408 Beautiful place and delicious food, built by the famous

A DRINK OR TWO ON THE COAST

Mario Scianna.

In Diani: Aquamarine Nyali, North Coast

• The Forty Thieves Beach Bar in the

Tel: +254-41-5485248/738/6582–3

central area of Diani beach is a great

Great seafood and game meat, in a

place to go in the evenings.

beautiful setting.

Dhow cruises also • Bar on the Beach, very popular for party people.

offered.

• Bush Baby Nightclub, the place where the local girls Tamarind Restaurant

hang out, looking to be picked up.

Mombasa town

All of these places are well known to everybody in Diani, so if you mention the name to the taxi driver or ask at the

Tel: +254-41-471729 Has the best seafood in Kenya.

hotel porter, they will be able to direct you.

Aquamarine, also organises dinners on The Tamarind Mombasa is one of Kenya’s most famous restaurants

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eBizguides Kenya and locals, this club is located next to Bamburi. The com-

In Nyali and Mombasa

plex also houses several bars.

• Golden Key Casino (above the Tamarind Restaurant),

WHAT TO SEE AND DO

Tel: +254-41-471729. Has a nice atmosphere, good for a drink or two after dinner, and some fun with the chips.

Apart from the usual sun, sand, sea and pool activities,

• Mamba International Nightclub, Tel: +254-41-

there is a lot to do on the coast.

475180. The most popular nightclub for locals. Fort Jesus is Mombasa’s biggest tourist attraction. The Pirates,

+254-41-486020.

fort was built in 1593 by the Portuguese to enforce their

Popular restaurant, bar and club on the

rule over the coastal Swahilis. It changed hands at least

beach.

nine times between 1631 and 1875 before finally passing

•

Tel:

into the hands of the British. The museum is opened • Tembo Nightclub, Tel: +254-41-

daily, but check with the reception of your hotel for the

485078. Loud and popular with visitors

special evening events organised in Fort Jesus that are

Most restaurants in Kenya have a good wine list

eBizguides Kenya

LEISURE

worthwhile seeing.

entrance fee with a KWS smart card; at the reserves you

Another great experience is a dinner-cruise around the

pay cash at the gate.

harbour in a luxury dhow. Contact the Aquamarine or

ACCESS AND OPENING HOURS

Tamarind restaurants to get specific information. The Mamba Crocodile Village (Tel: +254-041-472803) is a strange combination of crocodile farm, animal park,

KWS Smart Card

sports bar and nightclub. During the day the crocodile farm is very interesting, as it has a range of crocodiles

If you have residency in Kenya you can obtain a resident

from newborns to six-metre-long adults.

Safari Card, which will allow you to get into the national parks at the residents’ rate, which is lower than what

The Baobab Adventure is located next to the Bamburi

non-residents are charged.

Cement Company and contains the Bamburi Forest Trails, where you can walk or cycle, and a butterfly pavilion. On

To get a Safari Card, go to the headquarters of Kenya

the other side is Haller Park, where there is a game sanc-

Wildlife Service (KWS) in Langata Road, Nairobi with your

tuary, crocodile farm, fish farm, reptile and snake park,

passport showing your residency status. It usually takes

and giraffe drive. Baobab Rockcraft and Nguuni Wildlife

around 15 minutes for staff to process the application

Sanctuary’s Ostrich Farm are also in the complex.

and give you the card. Then, in the office next door, you can charge your card with money. Check with KWS for

If you are around Diani Beach area, go to the

the exact information on payments required to enter the

Mwaluganje Elephant Sanctuary.

parks.

The Sanctuary is

2,400 hectares in size and the home of more than 150 elephants.

The parks are mainly open from 6am to 7pm. Park fees

Funzi Island, south of Diani, is a beautiful small island

vary according to category:

where you can take dhow tours. Ask your hotel to help

A: Aberdares, Amboseli, Nakuru

organise one.

B: Tsavo, Meru C: Nairobi, Shimba Hills

CINEMAS

D: All others except Arabuku Sokoke, Kakamega Forest, Impala Sanctuary

There are two cinema complexes in Mombasa. All parks: vehicles up to five seats cost KSH200 per entry; • Kenya Cinemas (one screen)

vehicles with 6–12 seats cost KSH500 per entry.

• Nyali Cinemax (five screens).

Daily fees per person: Cinema programmes are listed daily in “The Nation” and Park

“The Standard” newspapers and in “The Coastweek”.

Category A

THE NATIONAL PARKS

Kenyan Citizens KSH100

Residents KSH500

Tourists US$30

Category B

KSH100

KSH500

US$27

Category C

KSH100

KSH500

US$23

Category D

KSH100

KSH500

US$15

The Kenyan national parks and reserves are renowned and rated as some of the best in the world. The national

NATIONAL RESERVES

parks are controlled by the Kenya Wildlife Service (KWS), the national reserves by the local councils. At the parks

The entrance fees are approximately the same as for the

controlled by the KWS, you are required to pay the

national parks. The most famous national reserves are

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Kenya National Parks

Masai Mara and Samburu and Buffalo Springs. For more

TYPES OF TRANSPORT

specific information, contact the KWS in Nairobi, Langata Road.

Nowadays most people know the word safari. It conjures up an image of sitting in an open-air vehicle, in a far-reaching

KWS

park, watching the wildlife; but actually in Swahili safari

Tel: +254-20-602345

means journey or trip.

Email: kws@kws.org Website: www.kws.org

You can go on a business trip, and Kenyans will tell you: “have a nice safari”, but now, let’s have a look at the wil-

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dlife safari in Kenya.

If you drive yourself, make sure you find out before leaving where the petrol stations are on the way, and we

It is possible to drive to most of the national parks and

recommend you to take two spare tyres as punctures are

reserves, but most of the lodges in the main parks have a

very common in Kenya.

landing strip close by. Check with your travel agent, or with local airlines, to see if they fly to your destination. If

CENTRAL KENYA

you want to travel by car, be prepared for a long trip; the condition, slowing your journey.

ABERDARE NATIONAL PARK

Very often, if you book your trip via a travel agency, you

Situated in the Central Highlands, west of Mount Kenya,

will be provided the transport to go to the lodge from the

the Park covers 766 square metres and lies at an altitude

landing strip or park entrance. They mainly use Land

of about 2,140 up to 4,270 metres. It is home to the first

Rovers, but watch out if they want to squeeze you in a

tree hotel in Africa and harbours significant memories in

mini bus â&#x20AC;&#x201C; you will be shattered once you arrive.

the worldâ&#x20AC;&#x2122;s history. In 1952 Queen Elizabeth II learnt of

distance may not be very far, but roads are often in poor

View over Lake Nakuru

LEISURE

eBizguides Kenya

her accession to the British throne while she was guest at

Country Club organises check-in and travel to this hotel.

the Treetops Lodge following the death of her father, King George VI. There is great game viewing at the

Kiandongoro Fishing Lodge

Lodge, spectacular scenery and some beautiful water-

Tel: +254-20-510081

falls. As it is located only 160km from Nairobi, you can go

Good self-catering cottages that you book through the

there on a day trip or stay in a lodge overnight. Don’t

park headquarters; just don’t forget to bring your own

forget to take a jumper with you, as it can get very cold

wood for the fireplace.

the

evenings.

For

information

to Sangare Ranch

www.kws.org/aberdare.htm.

Tel: +254-20-572462

WHERE TO STAY

Small tented camp. Nice for a relaxed weekend.

The Ark

Treetops Lodge

Tel: +254-20-216940

Tel: +254-20-54078

Aptly named, this hotel is decorated on a nautical theme,

Historically this is one of the most famous lodges in Kenya,

with small “ships-cabin” type of rooms. The Aderdare

it is worth a visit, but be ready to expect small rooms and

The 180km2 soda lake is home to thousands of flamingos and pelicans

eBizguides Kenya shared bathrooms, great food though! The Nyeri Outspan

LEISURE

WHERE TO STAY

Hotel organises check-in and travel to this hotel. Both of the lodges (the Ark and Treetops) have watering

Island Camp

holes for prime game viewing. There are also animal

Tel: +254-518-50858

alert buzzers in the rooms, so that you do not miss a

Email: islandcamp@africaonline.co.ke

thing!

Beautiful tented camp in middle of Ol Kokwe Island, Island Camp boasts a big swimming pool and good food.

LAKE BARINGO

It is a great place to relax for a weekend. Be sure to secure parking before taking the boat to the island.

This freshwater lake is 170km2 big and lies between the two walls of the Rift Valley with the dramatic Kamasia

Lake Baringo Club

block in between. Scattered with islands, it is a great

Tel: +254-20-540780

weekend retreat, especially for bird watchers, as 450 of

Good hotel, with facilities available to non-members at a

Kenyaâ&#x20AC;&#x2122;s 1200 bird species have been spotted here.

fee.

The fastest animal in the world, the cheetah, makes its home on Kenyaâ&#x20AC;&#x2122;s plains

LEISURE

eBizguides Kenya

WHERE TO STAY

Soi Safari Lodge Tel: +254-20-242725 Email: safari-hotels@independent.co.ke

Elsa’s Kopje

New hotel on the shore at Kampi ya Samaki.

Tel: +254-20-603090 Email: safaris@chelipeacock.co.ke

LAKE BOGORIA

Website: www.chelipeacock.com Luxurious oasis. You will never want to leave and you will

From a topographical point of view, Lake Bogoria is quite

never forget that you have been there.

distinct from the other southern lakes, since it is shallower and located at the bottom of the valley with spec-

Leopard Rock Lodge

tacular precipices descending 600m. This soda lake is

Tel: +254-20-246982

situated in the Rift Valley, not far away from Nakuru. The

Renovated in 2002.

lake covers 30 square kilometres with a maximum depth of 9 metres. It is most famous for its hot springs on the western shore, but there are also leopards and klipsprin-

MOUNT LONGONOT AND HELL’S GATE NATIONAL PARK

gers living near the lake. It was also the new home of the flamingo and boasted a population of around 2 million

The Longonot Crater is a nice and easy mountain to walk

birds, but the population is dwindling as they move back

up, and many people who are training to climb Mount

to their original home at Lake Nakuru.

Kenya go there. It takes about one hour to climb up, three hours to walk around the crater (not necessary) and

WHERE TO STAY

45 minutes to walk down. Take something to eat and two litres of water and you will have a great day out. For

Lake Bogoria Hotel

more information go to Website: www.kws.org/lon-

Tel: +254-37-40748 , 020-249055

gonot.htm or Website: www.kws.org/hellsgate.htm.

Email: lbogoriahotel@wananchi.com

WHERE TO STAY

Website: www.bogoriasparesort.com Nice place to stay; the hot springs are not far away.

Longonot Ranch

MERU

Tel. +254-20-891168 Email: safunlim@africaonline.co.ke

This 870 square kilometre park is situated east-north-east

Nice old-style house, where you can do some horse

of Mount Kenya. Recently KWS has done a great job in

riding, should you decide to stay.

bringing lots of wildlife into Meru National Park and is well worth a visit, even though it is a long way by car

Hell’s Gate is one of the only parks that you can walk or

(350km from Nairobi). Therefore we recommend chec-

cycle through without a ranger or guide. The landscape

king with the lodges if they have an airstrip close by. The

is fantastic! Sometimes there are operas in the Park, set

park is best known as the place where Elsa, the lioness

against the natural dramatic scenery. You can access the

was returned to the wild (in Joy Adamson’s book Born

Park through Elsa Gate, from where you can walk or

Free).

This park presents the visitor with the widest

drive to Fisher’s tower (a 25-metre column of volcanic

variety of landscapes and habitats and is said to be one

rock), to the famous gorges (famous with climbers) and

of the most wonderful wilderness experiences one could

down to the lower gorge. Camping is allowed in the

ever have. For more information go to Website:

Park.

www.kws.org/meru.htm.

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MOUNT KENYA

Nice tented camp; great if you want to walk around the

This 5,199-metre mountain is the second highest in

lake.

Africa. There are several routes that you can choose to walk up – the most common are the Naro Moru route,

The Great Rift Valley Lodge

the Sirimon route and the Chogoria route. On the way

Tel: +254-20-4446651

up you will find elephants and buffalos. If you take a

Email: rvgolf@heritagehotels.co.ke

long weekend you can make it up to Lenana point, from

Website: www.heritage-eastafrica.com

where the views are fabulous. If you are an experienced

Great for golfers, you have a fantastic view on the Lake

climber you can even reach the highest peaks of Batian

from all the holes.

and Nelion.

For more information go to Website: Kongoni Game Valley

www.kws.org/mtkenya.htm.

Tel: +254-50-2021070

WHERE TO STAY

Email: kgvelley@iconnect.co.ke Website: www.kgvalley.com

Mount Kenya Safari Club

Beautiful country house with delicious food. Great for a

Tel: +254-20-216940

day trip or at weekends.

Email: reservations@lonrhohotels.co.ke Website: www.lonrhohotels.com

Malu

Right at the Equator, facing Mount Kenya; beautiful cot-

Tel: +254-50-2030181

tages, traditional and elegant.

malu@africaonline.co.ke Website: www.malu-kenya.com

Mountain Rock Lodge

Romantic cottages. You can also go horse riding and

Tel: +254-20-242133

mountain biking here.

Email: mountainrock@intoafrica.co.ke

NAKURU

Website: www.mountainrockkenya.com If you want to climb up Mount Kenya, contact the Lodge

Lake Nakuru National Park was established in 1961

in advance to organise it.

around the Lake itself. This 180 square kilometre soda

NAIVASHA

lake is situated in the Rift Valley at an altitude of 1,753–2,073 m. Created as a bird sanctuary, the Park

The area around Naivasha was one of the first settled by

features more than 400 species of birds, many from

the wazungu (whites) and was a favourite haunt of the

Europe and Asia. The Park was expanded in 1974 to

decadent Happy Valley set in the 1930s. You can go fis-

include a large area of savannah on the south. The sha-

hing and sailing in Lake Naivasha, a nice fresh-water lake

llow blue-green alkaline lake is famous for its flamingos.

of the Rift Valley, which covers around 170 square kilo-

Tilapia fish has been introduced to provide food for peli-

metres. As it is only 1.5 hours’ drive away from Nairobi,

cans, which also make their home at Lake Nakuru. Lake

Naivasha is a perfect destination for a day trip or wee-

Nakuru National Park has proved to be an excellent site

kend visit.

to see the Rothschild giraffe, black rhino, hippo, reedbuck, waterbuck, giraffes and, if you keep your eyes

WHERE TO STAY

open and are lucky, leopards.

Crater Lake Camp Tel + 254-50-2020613 Email: crater@africaonline.co.ke Website: www.prideofsafaris.com

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LEISURE

eBizguides Kenya

WHERE TO STAY

Samburu Interprids Tel: +254-20-4447929

Lake Nakuru Lodge

Email:info@heritage-eastafrica.com

Tel. +254-20-212405

Website: www.heritage-eastafrica.com

Email: lakenakuru@wananchi.com

Nice tented camp with swimming pool. They have a

Situated 3km from the southern end of the lake, this is a

beautiful sun-downer bar.

beautiful place where you can even go on some nature Samburu Serena

walks.

Tel: +254-20-2713443 Lion Hill Lodge

Email: cro@serena.co.ke

Tel: +254-20-2713333

Website: www.serenahotels.com

Email: sarovalionhill@africaonline.co.ke

This lodge is situated next to Buffalo Springs, it has a nice

Website: www.sarovahotels.com/lionhill

pool where you can relax between game drives.

Situated in the northern part of the Lake close to the flamingos, this hotel has a nice view of the lake.

TURKANA

NORTHERN KENYA

Previously known as Lake Rudolf, Lake Turkana is Kenya’s largest lake, and flows along the north–south axis of the

SAMBURU

Great Rift Valley. Turkana’s blue-green waters gave the lake its other name, the Jade Sea. Lake Turkana is also

Together with Buffalo Springs and the Shaba National

fed by the Omo, Ethiopia’s second largest river, which

Reserve, Samburu covers an area of 300 square metres,

discharges 20 billion cubic litres of water each year into

situated 344km away from Nairobi. It is an arid, hilly

East Africa’s fourth largest lake.

region with riverine forests at an altitude of 800–1,230

islands, the southern, central and northern island. There

metres along the Nyiro River. Doum palms, acacia bushes

are three main routes to the eastern side of the lake; the

(Acacia albida), woodland and scrubland create the vast

first is via Isiolo and Marsabit, the second is Nyahururu to

arid look of Samburu. The region is rapidly becoming

Baragoi via Maralal, the third from Isiolo to Maralal.

one of Kenya’s most popular stops after the Masai Mara.

Alternatively you can head north to Loyangalani via

The sight of the strangely branched doum palms creates

Nakuru and Lake Baringo. Once at Loyangalani you can

an unusual look to the region, and the light and vast ope-

make a loop through the Chalbi Desert. It’s a great expe-

ness creates a lonely panoramic beauty. The wildlife is

rience to drive up there, but you need to count three days

slightly different from that in the other parks and Somali

just for the journey.

The lake has three

ostrich, Grevy’s zebra, reticulated giraffe and gerenuks can often be seen.

WHERE TO STAY

Desert Rose Tel: +254-722-638774, satelite phone: +8737-621-

Bedouin Camp

33395

Tel: +254-20-884264

Email: desertrose@uuplus.com

Email: info@bedouin-camp.com

Website: www.desertrosekenya.com

Website: www.bedouin-camp.com

Fantastic lodge with amazing views on the mountains. It

A luxurious family-run tented camp; from each tent you

is the best stop on the way to Turkana.

can enjoy the beautiful river view. Kalacha Tel: +254-62 32890

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LEISURE

Email: tropic@africaonline.co.ke

from Nairobi to Maralal, so check whether it is safe to

Website: www.tropicair-kenya.com

travel before making detailed plans.

Very nice self-catering bandas in the middle of the Chalbi desert.

WHERE TO STAY

Loylangilani

Maralal Safari Lodge

Tel: +254-50-2021239, satellite phone: +8821-651-

Tel: +254-20-211124

117409

Email: maralalodge@yahoo.com

Email: rudolf@africaonline.co.ke

The only lodge in Maralal.

Website: www.bigfishkenya.com Lake Turkana, approximately 6km south of Loylangilani.

MARSABIT NATIONAL PARK

LAKE LAIKIPIA

Marsabit, situated east of the Chalbi Desert, is something

This houseboat is based on the southeastern shores of

of a tribal frontier town. The thickly forested hills around It’s a long way to drive, but very beautiful so well worth

here stand in great contrast to the desert plains on all

the effort of making the journey.

sides. The Park is centred around Mount Marsabit (1,700 metres).

For

information

WHERE TO STAY

www.kws.org/marsabit.htm.

Lewa Tented Camp

WHERE TO STAY

Website:

Tel: +254-20-600457 Email: info@bush-and-beyond.com

Marsabit Lodge

Website: www.lewasafaricamp.com

Tel: +254-69-2411

Very comfortable tents and excellent food.

This lodge overlooks the Crater Lake, where buffaloes and elephants often come.

Loisaba

SOUTHERN AND EASTERN KENYA

Tel: +254-20-604053 Email: safaris@chelipeacock.co.ke Website: www.chelipeacock.com Luxury lodge with beautiful views over Lake Laikipia.

AMBOSELI PARK

Many sporting activities are on offer. The “Garden of Eden” opened in 1948 and is situated Sabuk

along the Tanzanian border, covering an area of 392

Tel: +254-20-604053

square kilometres from the foot of Mount Kilimanjaro,

Email: safaris@chelipeacock.co.ke

the highest mountain of Africa (5,894 m). Its attraction

Website: www.chelipeacock.com

is twofold – big game and breathtaking landscapes. The

Beautiful lodge, which organises camel safaris.

main feature of the Park, apart from the overwhelming presence of the mountain, is Lake Amboseli, which is dry

Maralal

most of the year, and gives the Park its name. Amboseli

High in the hills above the Loroghi Plateau, Maralal is a

is a place of contrasts. Despite its dry and dusty appea-

good place to stop on the way to Lake Turkana. The best

rance, it has an endless water supply from Kilimanjaro’s

time to come here is during the Maralal International

ice cap. These underground streams converge into two

Camel Derby, which has races between July and October.

water springs in the heart of the park. During the dry

There have been some security problems on the road

season the shimmering dry lake bed is a curious feature.

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eBizguides Kenya

Amboseli is Maasai territory – the Maasai pastoral

popularised Tsavo, and Finch-Hatton was killed here. If

nomadic tribesmen have been grazing their cattle in

you must choose between the east and west side of the

these plains and swamps for centuries, in harmony with

Park, remember that Tsavo West has the most dramatic

the wildlife. All the main species of African fauna live in

scenery and for many makes the best choice. For more

this Park. According to the season and hour of the day,

information go to Website: www.kws.org/tsavoeast.htm

they can either be spotted in the shade of the acacia

or Website: www.kws.org/tsavowest.htm.

trees, on the open plains or in the mud of the marshes, and usually with Mt Kilimanjaro in the background. For

WHERE TO STAY

more information go to: Website: www.kws.org/amboFinch Hatton’s

seli.htm.

Tel: +254-20-604321

WHERE TO STAY

Email: finchhattons@iconnect.co.ke Website: www.finchhattons.com

Amboselli Serena

Very upmarket tented camp in Tsavo West. Don’t miss it.

Tel: +254-20-2711077 Email: cro@serena.co.ke

Kilaguni Lodge

Website: www.serenahotels.com

Tel: +254-20-2713443

Very well situated lodge.

Email: cro@serena.co.ke Website: www.serenahotels.com

Tortilis Camp

This lodge in Tsavo West has beautiful views of the

Tel: +254-20-604053

Chyulu Hills. If you stay there, don’t miss the chance to

Email: safaris@chelipeacock.co.ke

go to Mzima Springs to see the hippo pools.

Website: www.chelipeacock.com High-class tented camp with a view of the Kilimanjaro.

Taita Hills- Salt Lick Lodge

Don’t miss it.

Tel: +254-43-30270 Email: saltlick@africaonline.co.ke

TSAVO NATIONAL PARK

Website: www.saltlicklodge.com In Tsavo West, this lodge has rooms elevated on stilts and

Tsavo National Park was opened 1948 and is one of

the game comes right up to the lodge to drink. A must.

Kenya’s oldest and largest parks, divided into Tsavo West

Staff organise hot air balloon safaris from here.

and Tsavo East; together they comprise 21,000 square kilometres! Tsavo is 130km northwest of Mombasa and

Voi Safari Lodge

334km from Nairobi. It is accredited as being one of the

Tel: +254-147-30019

world’s leading bio-diversity strongholds; bushy grass-

Email: voilodge@kenya-safaei.co.ke

land and open plains alternate with semi-arid acacia scru-

Very nice lodge in Tsavo East.

bland and woodlands. North of Galana is a true wilderthe shaped water-worn rocks.

ARABUKO SOKOKE FOREST RESERVE

Tsavo is home to large herds of elephants, glowing red

The Arabuko Sokoke Forest Reserve is located in Kilifi

after dust baths in the laterite soil. Some 500 species of

District and opened in 1976. It is the largest surviving

birds have been recorded in the area, including ostrich

coastal tropical forest in East Africa and lies at an altitude

and some migratory kestrels. Tsavo was the original site

of only 198 metres. Together with the adjoining Mida

for the big game hunters in search of record setting ivory;

Creek, the forest boasts a great biodiversity, providing an

in fact Dennis Finch-Hatton and Baron Bror von Blixen

important habitat for its unique and endangered birds,

ness. Lugard Falls on the Galana River is remarkable for

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LEISURE

butterflies, amphibians, elephants, insects and plants. It

northerly portion of the great migration. Between July

is more than just a superb area for wildlife; in addition it

and October the reserve is home to a 250,000 zebras and

provides local communities with firewood, building

1.25 million wildebeests. It is also home to Kenya’s lar-

material, timber, carving wood, medicines, water and the

gest populations of lions.

resources for community butterfly farming.

It is only

100km north of Mombasa, so if you are staying in

WHERE TO STAY

Malindi or Watamu, you can get here easily for a day trip. Bateleur Camp

KISITE MARINE NATIONAL PARK

Tel: +254-20-3750780 Email: information@ccafrica.com Website: www.ccafrica.com

Kisite was established in 1978 in the Kwale District on the

Exclusive tented camp situated on the western border of

South coast, and is situated 90km from Mombasa and

the Masai Mara. Staff organise bush dinners and night

15km from Shimoni. It is also next to Wasini (28 square

game drives.

kilometres of park and 11 square kilometres of marine park). The special features include the most colourful

Governors Camp

coral gardens in East Africa, plus the nearby Pemba

Tel: +254-20-2734000

Channel fishing grounds are world-famous for marlin,

Email: info@governorscamp.com

tuna and shellfish. Colourful coral fish, dolphin, mackerel

Website: www.governorscamp.com

and bonito are also common. Many marine and land

The only luxury tented camp located in the prime game

birds – such as fish eagle, albatross, gulls, herons, storks

viewing area of the Masai Mara.

and ibis – are also common. And the historic caves used by slave traders are easily accessible. If you are staying in

Keekorok Lodge

Diani beach, this is a nice day trip adventure to do.

Tel: +254-20-540780 Choose from bungalows, cabins or cottages. This lodge

WESTERN KENYA

is the closest to the Tanzanian boarder, and boasts an onsite hippo pool.

MASAI MARA Mara Interprid This is undoubtedly the most popular national reserve of

Tel: +254-20-4447929

Kenya.

Email:info@heritage-eastafrica.com

The

1,510

square

kilometres

reserve

1,500–2,170 metres above sea level. The Mara, as it is

Website: www.heritage-eastafrica.com

called locally, is the grand finale of most safari itineraries.

Very nice tented camp next to the Talek River. Ask for

It tends to provide spectacular numbers of grazers as well

tents numbered 26 or 27.

as big cats and other hard to spot animals. The Mara River and the Siria–Oloololo escarpment act like natural

Mara Sarova

boundaries. The Mara is also ideal for photographers

Tel: +254-20-713333

with its gently rising flatlands, scenic gorges and dra-

Email: reservations@sarova.co.ke

matic escarpments. The last golden rays of the sun set-

Website: www.sarova.co.ke

ting will turn this reserve into one of the world’s most

Beautiful tented camp, also boasts a pool. Great game

dramatic tableaux.

viewing vehicles.

The abundance of predators and

wide-open spaces also make it one of the few places in Africa where you have a fairly reliable chance of seeing a

Mara Serena

kill, if you are patient. The Masai Mara is the premiere

Tel: +254-20-2711077

game preserve, and is also famous for being the most

Email: cro@serena.co.ke

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LEISURE

eBizguides Kenya

WHERE TO STAY

Website: www.serenahotels.com Situated on top of the hill, it has a fantastic view on the Masai

Shompole

plains. Staff organise hot air balloon safaris here.

Tel: +254-20-600457 Siana Spring

Email: info@bush-and-beyond.com

Tel: +254-20-4447929

Website: www.shompole.com

Email:info@heritage-eastafrica.com

When a dream comes true!

Website: www.heritage-eastafrica.com place.

MOUNT ELGON NATIONAL PARK

LAKE NATRON

Mount Elgon National Park is on the Kenyanâ&#x20AC;&#x201C;Ugandan

Tented lodge about 15km away from the gate. Very pleasant

border. You can go trekking up the peaks on top of the The lake is in Tanzania, but the Shompole Hills are worth seeing

mountain (4,187 m on the Kenyan side, and 4,321 m on

just for this lodge. You can also go on game drives there, but

the Ugandan side). Inside the crater at the top you will

once you arrive at the lodge, you will not feel going out! It will

find hot springs. The mountainâ&#x20AC;&#x2122;s biggest attraction is the

take you about 3.5 hours by car from Nairobi.

elephants, renowned the world over for their predilection Living in harmony

eBizguides Kenya

LEISURE

for digging salt out of the caves on the lower eastern

There is a high risk of malaria here, so if you are visiting

slopes. The elephants are such keen excavators that some

the area we recommend you to take a prophylaxis

people have been fooled into believing that they are

against it. It is also not recommended to swim in the

totally responsible for the caves. Four main caves are

lake, as bilharzia is prevalent there.

open to the visitor: Chepnyalil, Mackingeny (the most spectacular), Rongai and Kitum (the elephants are mostly

Today the Lake’s eco-system it is threatened by the thri-

here).

ving water hyacinths, which are covering the whole sur-

For

information

Website:

www.kws.org/mtelgon.htm.

face of the lake and suffocating its water life.

The best option here is to camp as there is no really worthwhile lodge. Call KWS (Tel: +254-20-602345) for

TOP RECOMMENDED ITINERARIES

information on camping. There are numerous options on where to go in Kenya

KAKAMEGA NATIONAL FOREST RESERVE

depending on your allotted time and budget. Here you will find some suggestions of routes, but for more specific information contact a travel agency.

Zoologists and botanists all over the world know the Kakamega Forest, a small remaining piece of rain forest.

FROM NAIROBI

Approximately 400 years ago the rain forest stretched over the entire continent all the way to the Atlantic. The

Day trip

virgin tropical forest, 420km from Nairobi, is home to

Nairobi National Park

many species of animals and plants, which, as far as East

Lakes Naivasha and Hells Gate National Park

Africa goes, exist only in this area. The forest is a living

Longonot Crater

remnant from the long Pleistocene period when great cli-

Nakuru and Thomsons Falls in Nyahururu

matic changes occurred throughout the world.

As a

result of increased rainfall in Africa during that time, the

Suggestion: drive early to Thomsons Falls, and then enter

great forests of west and central Africa expanded eas-

the Nakuru National Park to have lunch and see the fla-

twards to cover much of what is now Uganda and Kenya.

mingos and rhinos.

The park was opened in 1985, is 240 square kilometres and lies at an altitude of 1,210–2,120 metres. The main

Two days

attractions are that it is Kenya’s only tropical rain forest,

Aberdares National Park

it has excellent bird viewing (300 species of birds, from

Masai Mara (by air)

which 145 are unique to the forest), plus it is home to a

Amboseli (by air)

multitude of butterflies, colobus monkeys, blue- and red-

Mombasa (by air)

tailed monkeys, 30 species of snakes and the clawless Suggestion: choose your destination depending on whe-

otter, among others.

ther you want to see the sea or wildlife. During the

LAKE VICTORIA

annual wildebeest migration we would recommend the Masai Mara.

Lake Victoria is the world’s second largest freshwater lake, covering an area of 67,850 square kilometres, it is

Three days

shared between three countries: Kenya, Uganda and

Samburu (by air)

Tanzania. Unlike the lakes further west, Lake Victoria is

Tsavo west (by road)

not part of the Rift Valley, and is wide and shallow. It’s

Lamu (by air)

only 80m deep, compared to Lake Tanganyika’s 1,500m.

Masai Mara (by road)

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LEISURE

eBizguides Kenya

Suggestion: go to Taita in Tsavo West, then drive up across the park, stopping at Mzima Springs and have

Two days

lunch at a nearby lodge.

Tsavo East or Tsavo West National Park Lamu (by air)

Four days

Amboseli (by air)

Masai Mara + Nakuru (by road) Malindi + Lamu (by air)

Suggestion: try to go to Amboseli, famous for its ele-

Samburu + Mount Kenya (by road)

phants and the spectacular view of the Kilimanjaro,

Climbing up Mount Kenya

Africa’s highest mountain.

Suggestion: drive up to Samburu and on the way back

Three days

stop at the Mount Kenya Safari Club.

Finch Hattons Camp or Masai Mara (by air) Tsavo West and Amboselli (by road)

More than seven days Suggestion: try to combine Salt Lick Lodge and Finch With more time there are more possibilities, depending

Hattons tented camp.

on whether you want to travel by air or by car, if you want to go to the coast or visit some national parks, or

BOOK REFERENCES

all of the above. Check with a travel agent on what is There are lots of books published on Kenya. History, fic-

possible.

tion, poetry, literature and travel books and of course the However, there is something very special you can do by

nice coffee-table books. You will find most of them in

road if you have the time. Drive from Maralal up to Kobi

the main book shops around the country.

Fora (in front of the northern island), cross the Chalbi Desert through Kalacha and drive back down over

If you want to have a taste of the country and its people,

Marsabit and Samburu.

we would recommend the following books:

If you choose this option,

remember that you have to drive in a convoy of a minimum of three cars for security, and be sure to check

• Out of Africa, by Isak Dinesen (Karen Blixen)

all your equipment. Not only do you need two spare

• The Lunatic Express, by Charles Miller

tyres, but you also have to carry lots of water and petrol,

• Happy Valley, by Nicholas Best

especially if you cross the Chalbi Desert.

• The Life and Death of Lord Erroll, by Errol Trzebinski • White Mischief, by James Fox

FROM MOMBASA

• North of South, by Shiva Naipaul • Kenya Diary 1902-1906, by Richard Meinertzhagen

Every hotel on the coast has an information desk on tours

• Green City in the Sun, by Barbara Wood

and travel around the country. Check with them for the

• I Dreamed of Africa, by Kuki Gallman

most convinient arrangements.

• Swahili Culture and the Shungwaya Phenomenon, by James de Vere

Day trip

Allen

Wasini or Chale Island in the south Malindi and Gedi ruins in the north Shimba Hills National Park in the south Suggestion: if you stay in north coast, go to Malindi; if you stay in south coast go to Chale Island.

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TRAVEL AGENCIES Abercrombie & Kent Ltd

Private Safaris

Abercrombie & Kent House, Mombassa Road, Nairobi

Twinstar Tower, Mombasa Road, Nairobi

Tel: +254-20-6950000

Tel: +254-20-530601

Fax: +254-20-537173

Fax: +254-20-533854 Email: spiro@privatesafaris.co.ke

Bunson Travel Service Ltd Pan Africa Insurance Building, Ground floor, Standard

Richard Bonham Safaris

Street, Nairobi

Wilson Airport

Tel: +254-20-221992

Tel: +254-20-600457/605108/609745

Fax: +254-20-230872

Fax: +254-20-605008 Website: www.richardbonhamsafaris.com

Kobo Safaris Mugoiri Road, Kileleshwa, Nairobi

Somak Travel Ltd.

Tel: +254-20-570333

Somak House, Mombassa Road, Nairobi

Fax: +254-20-570332

Tel: +254-20-535500-03 Fax: +254-20-535172/5

Letâ&#x20AC;&#x2122;s go Travel Caxton House, Standard Street, Nairobi

Southern Cross Safaris

Tel: +254-20-340331

Symbion House, Karen Road, Nairobi

Fax: +254-20-336890

Tel: +254-20-884712-19

Email: info@letsgosafari.com

Fax: +254-20-884723

Muthaiga Travel

Sunworld Safaris

Muthaiga Shopping Centre, Nairobi

Riverside Lane, Nairobi

Tel: +254-20-3750036

Tel: +254-20-4445669

Email: info@muthaiga.co.ke

Fax: +254-20-4445673 Email: sunworld@iconnect.co.ke

Phoenix Safaris Village Market, Gigiri, Nairobi Tel: +254-20-522254 Email: info@phoenix-safaris.de

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BASIC SWAHILI VOCABULARY Pronunciation

Yes

Ndio, naam

Please

Tafadhali

“a” is pronounced like the a in car

Thank you

Ahsante

“e” is pronounced like the e in let

I live at the … hotel

Ninakaa katika

“i” is pronounced like the ee in meet

… hoteli

“o” is pronounced like the o in go

Go away

Nenda zako

“u” is pronounced like the oo in school

What is it called in Swahili?

Hii inaitwaje kwa

kis

Greetings

Salamu

wahili?

I wish to see a doctor

Nahitaji kumwona muuguzi (daktari)

Hello

Jambo

Goodbye

Kwa heri

Goodbye *(plural)

Kwa herini

Good day

Siku njema

Goodnight

Lala salama

How are you?

Habari yako

Waiter

Mwandishi, weita

I am well

Ni salama, vyema

Bread, butter

Mkate, siagi

I want a guide who speaks English

Nataka kiongozi

anayeongea kiigereza

Food and Drink

What is your name?

Unaitwa nani? Jina lako nani?

Salt, pepper

Chumvi, pilipili

My name is

Ninaitwa … Jina langu ni …

Coffee

Kahawa

Black coffee

Kahawa nyeusi

Tea

Chai

Animals

Wanyama

With milk, cream, sugar

Na maziwa, Na

Buffalo

Nyati

Cheetah

Duma

Meat

Nyama

Elephant

Ndovu, Tembo

Chicken

Kuku

Giraffe

Twiga

Potatoes

Viazi

Hippo

Kiboko

Rice

Mchele

Leopard

Chui

Lemon

Ndimu

Lion

Simba

Mango

Embe

Rhino

Kifaru

Pineapple

Nanasi

Zebra

Punda milia

Water

Maji

Currency

Sarafu

Numbers

Hesabu

Money

Pesa

One

Moja

Notes

Noti

Two

Mbili

Shillings

Shilingi

Three

Tatu

Cents

Senti

Four

Nne

Five

Tano

maziwa mazito, Na sukari

Common Phrases No

La, Hapana, Hasha

Six

Sita

Seven

Saba

Eight

Nane

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eBizguides Kenya

LEISURE

BASIC SWAHILI VOCABULARY Nine

Tisa

Ten

Kumi

Eleven

Kumi na moja

Twelve

Kumi na mbili

Thirteen Fourteen

Thousand

Elfu

Time

Wakati

Kumi na tatu

Yesterday, last night

Jana, jana jioni

Kumi na nne

Today, tonight

Leo, leo jioni

Fifteen

Kumi na tano

Tomorrow

Kesho

Sixteen

Kumi na sita

Seventeen

Kumi na saba

Days of the week

Siku za juma

Eighteen

Kumi na nane

Nineteen

Kumi na tisa

Saturday

Jumamosi

Twenty

Ishirini

Sunday

Jumapili

Thirty

Thelathini

Monday

Jumatatu

Forty

Arobaini

Tuesday

Jumanne

Fifty

Hamsini

Wednesday

Jumatano

Sixty

Sitini

Thursday

Alhamisi

Seventy

Sabini

Friday

Ijumaa

Eighty

Themanini

Week

Juma

Ninety

Tisini

Hundred

Mia

Two hundred

Mia mbili

BIBLIOGRAPHY eBizguides Kenya 2000 Lonely Planet Kenya, by J. Bindloss, T. Parkinson and M. Fletcher Thomas Cook Publishing Kenya, by Melissa Shales Out of Africa, by Isak Dinesen A Tourist Guide to Simple Swahili, by Alfred Banner Karibuni Kenya, 2002, by the Conseil Supérieur des Français de l’Étranger Economic Survey 2004, by the Central Bureau of Statistics

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USEFUL WEBSITES These are some of the main useful websites you need to travel or do business in Kenya

TOURISM Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website:

www.airkenya.com www.bush-and-beyond.com www.bwanazulia.com www.chelipeacock.com www.finchhattons.com www.geosafaris.com www.hilton.com www.hemingways.co.ke www.katokenya.org www.kenya-airways.com www.klm.com www.kws.org www.leopardbeachhotel.com www.letsgosafari.com www.lonrhohotels.com www.malu-kenya.com www.privatewilderness.com www.saltlicklodge.com www.sarovahotels.com www.serenahotels.com www.tamarind.co.ke www.tropicair-kenya.com www.vedic-expresskenya.com

COMMUNICATION AND MEDIA Website: Website: Website: Website: Website: Website: Website: Website: Website: Website:

www.africaonline.com www.celtel.com www.eastandard.net www.kentimes.com www.kenyaweb.com www.nationmedia.com www.postel.co.ke www.safaricom.co.ke www.telkom.co.ke www.yellowpageskenya.com

GOVERNMENT AND PARASTATAL COMPANIES Website: Website: Website: Website: Website: Website: Website: Website: Website: Website:

www.agriculture.go.ke www.cbs.go.ke www.cck.go.ke www.centralbank.go.ke www.energy.go.ke www.environment.go.ke www.homeaffairs.go.ke www.kebs.org www.kenya.go.ke www.ktdc.co.ke

Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website:

www.kws.org www.magicalkenya.com www.mfa.go.ke www.narc-kenya.org www.nationalbank.co.ke www.officeofthepresident.go.ke www.parliament.go.ke www.publicworks.go.ke www.revenue.go.ke www.statehouse.go.ke www.tourism.go.ke www.tradeandindustry.go.ke www.transport.go.ke www.treasury.go.ke www.vice-president.go.ke www.xkenya.com

LEISURE Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website: Website:

www.african-butterfly.org www.african-tribal-arts.com www.bestofkenya.com www.bigfishkenya.com www.buccaneerdiving.com www.divingthecrab.com www.divingsailing.com www.giraffecentre.org www.goingoutguide.com www.karibunikenya.org www.kenyabirds.org.uk www.kenya-golf-safaris.com www.kenyamuseumsociety.org www.kelele.com www.kitengela-glass.com www.mountainrockkenya.com www.naturekenya.org www.rhinochargers.org www.rotarynairobi.org www.saritcentre.com www.sheldrickwildlifetrust.org www.villagemarket.net www.yaya-centre.co.ke

OTHERS Website: Website: Website: Website: Website: Website:

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www.aarhealth.com www.amref.com www.kiberapaper.com www.knh.org.ke www.knightfrank.com www.ku.ac.ke

eBizguides Kenya

LEISURE

COMPANY INDEX AGRICULTURE & FORESTRY BROOKSIDE DAIRY LTD.................................................................................................................................page 110 COFFEE BOARD OF KENYA........................................................................................................................page 112 DEL MONTE KENYA LTD.............................................................................................................................page113 HOMEGROWN (KENYA) LTD......................................................................................................................page 113 HORTICULTURAL CROPS DEVELOPMENT AUTHORITY.................................................................................page 116 KENYA FLOWER COUNCIL........................................................................................................................page 116 KENYA SISAL BOARD.................................................................................................................................page 117 KENYA SUGAR BOARD..............................................................................................................................page 117 KENYA TEA DEVELOPMENT AGENCY.........................................................................................................page 119 MUMIAS SUGAR COMPANY......................................................................................................................page 119 OSERIAN DEVELOPMENT COMPANY LTD...................................................................................................page 120 PYRETHRUM BOARD OF KENYA................................................................................................................page 120 SASINI TEA AND COFFEE LTD.....................................................................................................................page 121 WiLLIAMSON KENYA LTD..........................................................................................................................page 122

ENERGY & MINING CALTEX OIL (K) LTD...................................................................................................................................page 129 ENGEN KENYA LTD....................................................................................................................................page 130 KENYA ELECTRICITY GENERATING COMPANY (KENGEN)...........................................................................page 131 KOBIL PETROLEUM LTD / KENOL................................................................................................................page 131 KENYA PIPELINE COMPANY (KPC).............................................................................................................page 133 THE KENYA POWER AND LIGHTING COMPANY (KPLC)..............................................................................page 133 KENYA PETROLEUM REFINERIES LTD (KPRL)...............................................................................................page 134 MOBIL OIL KENYA.....................................................................................................................................page 135 NATIONAL OIL CORPORATION OF KENYA (NOCK).....................................................................................page 136 PETROLEUM INSTITUTE OF EAST AFRICA (PIEA)..........................................................................................page 136 SHELL KENYA LTD......................................................................................................................................page 137 TSAVO POWER COMPANY (TPC)..............................................................................................................page 137

FINANCE BRITISH AMERICAN INSURANCE COMPANY (KENYA) LTD..........................................................................page 146 CENTRAL BANK OF KENYA (CBK)..............................................................................................................page 146 CFC FINANCIAL SERVICES (CFCFS).............................................................................................................page 148 CAPITAL MARKET AUTHORITY (CMA)........................................................................................................page 150 CO-OPERATIVE BANK OF KENYA LTD........................................................................................................page 150 DELOITTE...................................................................................................................................................page 151 EASTERN AND SOUTHERN AFRICAN TRADE AND DEVELOPMENT BANK (PTA BANK)..................................page 152 JUBILEE INSURANCE COMPANY LTD..........................................................................................................page 152

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COMPANY INDEX KENYA COMMERCIAL BANK.....................................................................................................................page 153 NAIROBI STOCK EXCHANGE......................................................................................................................page 154 NATIONAL BANK OF KENYA (NBK)............................................................................................................page 154 NATIONAL SOCIAL SECURITY FUND (NSSF)................................................................................................page 155 PTA REINSURANCE COMPANY (ZEP-RE).....................................................................................................page 156 STANDARD CHARTERED BANK OF KENYA (SCB)........................................................................................page 157 STARLIT.....................................................................................................................................................page 157

INDUSTRY & TRADE AQUAMIST................................................................................................................................................page 164 BATA SHOE COMPANY (KENYA) LTD.........................................................................................................page 165 BIDCO OIL REFINERIES LTD.........................................................................................................................page 166 BIO FOOD PRODUCTS LTD.........................................................................................................................page 166 COSMOS LTD............................................................................................................................................page 167 C. DORMANS LTD (DORMANS COFFEE).....................................................................................................page 168 EAST AFRICAN PACKAGING INDUSTRIES LTD (EAPI)...................................................................................page 169 EAST AFRICAN BREWERIES LTD (EABL).......................................................................................................page 169 EXPORT PROMOTION COUNCIL.................................................................................................................page 170 EXPORT PROCESSING ZONES AUTHORITY..................................................................................................page 171 FIRESTONE EAST AFRICA...........................................................................................................................page 171 INDUSTRIAL AND COMMERCIAL DEVELOPMENT CORPORATION (ICDC).....................................................page 172 INVESTMENT PROMOTION CENTER (KENYA INVESTMENT AUTHORITY)......................................................page 173 KENYA BUREAU OF STANDARDS (KEBS)....................................................................................................page 173 KENYA NUT COMPANY.............................................................................................................................page 175 MAGADI SODA COMPANY........................................................................................................................page 176 SAMEER GROUP OF COMPANIES...............................................................................................................page 176 UCHUMI....................................................................................................................................................page 178

PUBLIC WORKS ATHI RIVER MINING (KENYA) LTD (ARM)....................................................................................................page 186 BAMBURI CEMENT....................................................................................................................................page 186 DAVIS & SHIRTLIFF....................................................................................................................................page 187 EAST AFRICAN PORTLAND CEMENT...........................................................................................................page 187 H. YOUNG & CO.......................................................................................................................................page 188 INSTARECT LTD.........................................................................................................................................page 190 KENYA ROADS BOARD (KRB)....................................................................................................................page 190 KNIGHT FRANK..........................................................................................................................................page 191

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COMPANY INDEX MUGOYA CONSTRUCTION AND ENGINEERING CO....................................................................................page 191 NATIONAL HOUSING CORPORATION.........................................................................................................page 191 NATIONAL WATER CONSERVATION AND PIPELINE CORPORATION.............................................................page 192 SECURITY GROUP KENYA..........................................................................................................................page 193

TOURISM GAMEWATCHERS SAFARIS – PORINI..........................................................................................................page 200 HERITAGE HOTELS.....................................................................................................................................page 201 HILTON NAIROBI.........................................................................................................................................page 202 KENYA TOURIST BOARD............................................................................................................................page 203 KENYA WILDLIFE SERVICES........................................................................................................................page 204 LEOPARD BEACH SAFARI HOTEL..................................................................................................................page 205 LONHRO HOTELS.......................................................................................................................................page 205 PALACINA RESIDENTIAL HOTEL...................................................................................................................page 206 POLLMAN’S TOURS AND SAFARIS – APR GROUP..........................................................................................page 206 SAROVA HOTELS.......................................................................................................................................page 208 SERENA HOTELS........................................................................................................................................page 208 SOMAK TRAVEL LTD..................................................................................................................................page 209 TAMARIND GROUP....................................................................................................................................page 209 WINDSOR GOLF AND COUNTRY CLUB.......................................................................................................page 210

TRANSPORT & COMMUNICATION CELTEL KENYA LTD.....................................................................................................................................page 216 COMMUNICATION COMMISSION OF KENYA...............................................................................................page 218 DHL..........................................................................................................................................................page 219 EXPRESS KENYA........................................................................................................................................page 221 GILGIL TELECOMS INDUSTRIES.....................................................................................................................page 222 KENYA AIRWAYS GROUP............................................................................................................................page 223 KENYA PORT AUTHORITY...........................................................................................................................page 223 KENYA RAILWAYS CORPORATION...............................................................................................................page 225 MULTICHOICE DSTV KENYA........................................................................................................................page 225 POSTAL CORPORATION OF KENYA..............................................................................................................page 226 SAFARICOM...............................................................................................................................................page 229 SAFARILINK................................................................................................................................................page 230 TELKOM KENYA.........................................................................................................................................page 230 TNT INTERNATIONAL EXPRESS.....................................................................................................................page 231 WANANCHI ONLINE LTD............................................................................................................................page 231

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