Kenya Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kenya, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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In 2023, the Ruto administration introduced significant reforms to the business environment in Kenya, including:  1) removing the domestic equity requirement for ICT-licensed companies operating in Kenya; 2) committing to maintain the national Tax Policy for a minimum of three years; 3) committing to pay all verified tax refund claims within six months or providing for offsets on the next year’s tax bill 4) removing the tax on unrealized gains on employee-allocated shares for startup companies; 5) amending the Special Economic Zone and Export Processing Zone laws to remove impediments to attracting new local and foreign investors; 6) announcing its intention to align with the OECD’s two-pillar inclusive framework on digital service taxes once finalized; and 7) announcing its intention to align with global best practices on data protection and localization.  These reforms, most of which have been implemented in practice, led to major investments by U.S. companies. 

The primary U.S. exports to Kenya are aircraft parts, liquefied butanes, plastics, medicinal and pharmaceutical products, machinery, and cereal/wheat. The most promising commercial opportunities in Kenya are in agriculture and agro-processing, aviation parts, infrastructure services, education, energy storage and transmission, financial services, ICT hardware and software, healthcare equipment, safety and security technologies, and e-services. In 2022, the strongest performing sectors of the economy included manufacturing (6.9%), wholesale and retail trade (7.9%), real estate, (6.7%), transportation and storage (7.2%), and financial and insurance activities (12.5%) (KNBS).

Factors that indicate strong market opportunities for U.S. businesses include ongoing U.S.-Kenya Strategic Trade and Investment Partnership (STIP) negotiations, Kenya’s position as a regional logistics, finance, and tech hub,  an electricity grid operating with about 90 percent clean energy sources, and a talented, English-speaking workforce. Additionally, Kenya serves as a springboard for international firms looking to enter the region and remains the commercial hub of the region. Linkages from Kenya to other parts of the continent will only be strengthened with increased integration of the EAC and the AfCFTA. Currently, Kenya Airways operates a direct non-stop, daily Nairobi-New York flight and daily flights to 42 African, Asian, and European destinations.  Several other global airlines also service Kenya through the Jomo Kenyatta International Airrport.

According to the EIU, the services sector  is a key driver of economic growth and will continue to grow. For instance, the ICT sector  maintained an average growth of 7.4 % per year between 2018 and 2022.  Further growth opportunities include a sustained rise in e-commerce and e-banking alongside other digital services such as online healthcare and logistics. According to Statista’s Kenya Country Report, in 2023, digital revenues totalled $3.8 billion. Key contributors included e-commerce (89.4%), digital media (10.3%), e travel (5.0%) and e-services (4.8%).

Additional information on opportunities can be found in this report’s, “Leading Sector for U.S. Exports and Investment” section, as well as various market intelligence briefs, which can be found here.

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Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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