ANNOUNCEMENT 21 Jul 2009In July 2009, the government of Kenya announced a changed incentive to localise business operations.
NUMBER OF INTERVENTIONS
A copy of the Strategic Plan can be found at http://www.tradeandindustry.go.ke/documents/Strategic_Plan_Final_2008_12.pdf
On 21 July 2009 the Kenyan Ministry of Industrialization announced its Strategic Plan (2008 - 2012). Overall this Plan seeks to create an enabling environment for industrialization in Kenya and is part of the broaderKenya Vision 2030 long-term national policy. This Plan has numerous implications for foreign commercial interests including:
1. Measures that over the longer term will have the effect of reducing the demand for imported raw materials. Page 17 of the Plan states "It is envisaged that through use of locally available raw materials, the local content of Kenya's products will increase significantly thereby contributing to the medium term goal of 2012 of reducing imports in key local industries by 25%." More generally, strengthening the local content of domestic manufacturers is a goal of the Plan (see, for example, page xiv).
2. Measures to restrict 25 percent of public procurement to micro, small, and medium sized enterprises (MSMIs). Page 34 of the Plan lists one of the activities to be undertaken as "Collaboration with stakeholders to implement the provision of 25% Government Procurement to MSMIs".
3. "Strategic objective 3" of the Plan is "Attracting Local and Foreign Industrial Investments" (see page 32ff).
4. Measures to reduce imported counterfeit products (the harm to the Kenyan economy is described on page 19).