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Executive Report on Strategies in Kenya
ICON Group International, June 2007, Pages: 390


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How to Strategically Evaluate Kenya

Perhaps the most efficient way of evaluating Kenya is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
Framework for Prioritizing Countries

Demand/Market Potential Driven Firm







Relative Accessibility

Accessibility/Supply Averse Firm








Relative Accessibility
In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market - neither a market-driven nor a cost-driven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities.

Latent Demand and Accessibility in Kenya

This report provides an extremely detailed overview of factors driving latent demand and accessibility in Kenya. Latent demand is largely driven by economic fundamentals. But, latent demand only represents half of the picture. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks.

Chapter 2 deals with macro-accessibility. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Kenya:
Openness to Trade in Kenya
Openness to Direct Investment in Kenya
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks

Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are also covered in Chapter 2, which is presented from the perspective of an American firm, though it is equally applicable to most firms entering Kenya. This chapter has been authored by local offices of the U.S. Government. I have included a number of edits to clarify the provided information as it relates to the general strategic framework.

In Chapter 3, I summarize the economic potential for Kenya over the next five years for hundreds of industries, categories, and products. The goal of this chapter is to report my findings on the real economic potential, or latent demand, represented by Kenya when defined as an area of dominant influence. The data presented are the result of various spatial econometric and time-series forecasting models which, for each category presented, are applied to forecast and allocate latent demand across all countries of the world and major distribution centers or centers of dominant influence within each country. This is accomplished knowing that economic fundamentals (e.g. income) generally vary from one country to another within a given country over time. In this chapter, I report the allocation for each category for Kenya as an area of dominant influence in Africa and, potentially, the world.

The report concludes with trade indicators for Kenya. Often, the amount of trade flowing into and out of a country is a strong indicator of trading partners, trade openness, and related latent demand. Trade indicators are purely statistical in nature. Although international trade is not a direct measure of latent demand, it does provide an indicator of general market conditions with respect to trade flows and trade openness in Kenya.

As a whole, this report presents a strategic assessment of Kenya by considering an extremely broad set of factors affecting both latent demand and accessibility, as outlined in the following chapters.

MACRO-ACCESSIBILITY IN KENYA
Economic Fundamentals and Dynamics
Infrastructure Development

Transportation
Airports: Kenya has a well-developed international and domestic air transport infrastructure.  The country has three international airports: Nairobi’s Jomo Kenyatta International Airport (JKIA), Mombasa’s Moi International Airport and Eldoret International Airport, which became operational in 1997.  Other airports are Wilson in Nairobi, Malindi, Lokichogio (for relief food to Southern Sudan and northern parts of Kenya) and Kisumu.  There are over 300 airstrips throughout the country.  JKIA serves more than 30 airlines providing scheduled services to international cities.  In addition to passenger handling services, it has air cargo handling facilities, including chilling facilities for storage of cut flowers bound for Europe.  Wilson Airport in Nairobi handles light aircraft and general aviation, and is one of the busiest in Africa.  Kenya is participating in the U.S. Safe Skies for Africa Program (SSFA) and with FAA assistance is working to achieve ICAO category one status for safety standards and to meet international security standards.
Seaports: Mombasa is Kenya’s main seaport with a rated annual capacity of 22 million tons and serves most East and Central African countries.  It is a deep-water port with 21 berths, two bulk oil jetties and dry bulk wharves that can handle all size ships and cargo.  The port offers specialized facilities, including cold storage, warehousing, and a container terminal.  It serves most international shipping lines and has an average annual freight throughput of about 8.8 million tones, of which 72 percent are imports. Kenya Ports Authority (KPA) manages the port operations.  A private international firm manages and operates the container terminal in Mombasa on a contractual basis while inland container depots in Nairobi, Eldoret, and Kisumu are managed by KPA. 
Road Network: Kenya has an extensive road network of about 95,000 miles connecting most parts of the country.  Over 70 percent of Kenya’s total passenger and freight traffic use road transport.  Paved roads connect all major commercial centers. However, the lack of maintenance has caused severe deterioration of the road network. The sorry state of the roads is largely due to inadequate allocations to road maintenance and to substandard work done by contractors in collusion with government officials. 
Railways: Kenya Railway Corporation (KR), a parastatal, manages Kenya’s single-track railway system, which runs from Mombasa through Nairobi to the Ugandan border, with a branch to central Kenya.  South African Railways provided on a lease-hire basis ten 1,200-ton haulage capacity locomotives for cargo shunting between Nairobi and Mombasa.  GOK has designated KR as a strategic parastatal, meaning that only the corporation’s maintenance services are to be privatized.  However, the GOK is looking at opening up the railways to private sector participation through commercialization and concessionary leasing.
Pipeline: Kenya Pipeline Company, a designated “strategic” parastatal, operates a UK- funded white petroleum products pipeline.  The pipeline runs between the refinery at the Port of Mombasa, through Nairobi to Kisumu and Eldoret in Western Kenya.  Kenya’s roads are used to haul petroleum products to and from neighboring land-locked countries and parts of Tanzania.

Banking Services
The range of services offered by banks includes: mail and cable fund transfer, export and import finance, letters of credit, and purchase and sale of shares and stocks, among other services.  Most of the banks are competent in international banking practices and provide merchant banking services. However, most banks often lack up-to-date information technology.  Financial and management consultancy has not picked up but is ripe for development.

Health Services
The country has a widespread health service network.  Services are concentrated mainly in urban areas; they are sparsely available in rural areas.  Sophisticated medical treatment is only available in Nairobi and Mombasa, where most of the qualified medical practitioners reside.  Hospitals lack modern equipment and highly trained medical support staff.  Nairobi Hospital and Aga Khan Hospital in Nairobi provide some of the most modern medical services in the country, but their resources are over-stretched.

Housing and Office Space
Quality and reasonably-priced residential and office accommodations are readily available in Nairobi and Mombasa.  Utility connections can usually be obtained, though delays are common.  Residential telephone and fax lines are becoming harder to obtain due to the limited number of fixed lines.

Political Risks

Kenya has had an elected civilian government since independence in 1963.  It became a de facto oneparty state not long after attaining self-rule and was a de jure oneparty state between 1982 and 1991.  On December 2, 1991, multiparty politics were reintroduced.

The United States has maintained friendly relations with the Government of Kenya since just before independence, and the United States has given Kenya substantial amounts of development and military assistance.  Good bilateral relations reflect, in part, the relative stability that Kenya has achieved since independence, while most of its neighbors have been involved in serious domestic or international conflict.  Kenya and the United States have cooperated in providing emergency assistance to Somalia, southern Sudan, and Rwanda.  The U.S. maintains a military access agreement with the Government of Kenya and Kenya is a participant in U.S.-originated programs to promote Africa-based military cooperation in the areas of peacekeeping and disaster relief.

Internal politics influence the Kenyan business climate.  High-level corruption was pervasive under the previous government.  Politically motivated appointments to ministries, parastatals, and financial institutions often rendered these institutions less effective.  Tenders were often awarded on the basis of political connections. 

The United States, in cooperation with the Government of Kenya, has implemented a special assistance program to promote government accountability; a responsible, effective Parliament; and strong, independent institutions within civil society.

There is a significant ethnic dimension to Kenyan politics.  Political battles for the support of the largest of Kenya’s 42 major indigenous ethnic groups (the Kikuyu, Luhya, Kalenjin, Luo, Kamba and Kisii) have been particularly intense.

Ethnic differences, coupled with land pressures and other factors, produce significant violence.  Between September 1991 and September 1994, over 1,000 Kenyans died in “ethnic-land” clashes, largely precipitated by election-related violence.  Many more were injured or maimed and tens of thousands were displaced, mainly from the Rift Valley.  There have been further, if smaller scale, outbreaks of ethnic violence each year since 1997.  On average, about 50 Kenyans are killed each month in ethnic conflicts.  Ethnic factors play a role in periodic instability along Kenya’s borders with Uganda, Sudan, Ethiopia and Somalia, where cattle rustling and tribal conflict, combined with the introduction of high-powered firearms, increasingly leads to loss of life.

Often neglected in this context is the small, but crucial, community of South Asian origin that dominates Kenyan business and is linked internationally to other South Asian businesses (as well as businesses in the UK, Canada, Australia and the U.S.).  This group tends to avoid politics and to operate behind the scenes.  Although resentment against this group has never resulted in major anti-Asian outbreaks, appeals to incitement against this community took place in September 1994.  The community was also targeted during the 1982 coup attempt.

The Political System

Centralized, originally modeled on British pattern, but modified since independence to enhance the powers of the President.  Central government administrative control over the eight provinces and 69 Districts exercised through a system of commissioners appointed by the President.  Kenya is a member of the Commonwealth.

Legislature
Unicameral.  Consists of 222 voting members, including 12 nominated according to political party representation in the National Assembly.  Attorney General and Assembly Speaker are ex-officio, non-voting members.  Procedures generally follow British pattern.  Legislative term is a maximum of five years.

Political Parties
The main parties in Parliament are the ruling National Rainbow Coalition (131seats in Palriament), which is itself a coalition of 14 parties; the Kenyan African National Union  (67); and Ford-People (15).  Also represented in Parliament are the smaller parties of Ford-Asili, Sisi Kwa Sisi, Safina and Shirikisho, who total seven members.

Electoral System
Universal suffrage exists for all citizens over 18.  Voting is by secret ballot.  Voters cast separate ballots for President and their local Member of Parliament (MP).  To be elected, a presidential candidate must obtain a plurality of the votes, plus at least 25 percent of the vote in five of the country’s eight provinces.  MPs merely require a plurality of the vote in their constituency district to be elected.  The Electoral Commission of Kenya, which is appointed by the government, supervises elections. 

Marketing Strategies

Kenya continues to offer good prospects for U.S. goods and services especially as the economy begins to show signs of recovery.  The country is the economic/commercial hub for the region with a reasonably good communications network.  The market is increasingly sophisticated with a large expatriate community supplementing an equally large number of Kenyans who have been exposed to the Western lifestyle.  Standard international marketing and distribution methods are widely used in Kenya.  The country has well established marketing channels with a sizeable and experienced group of wholesalers and resellers with experience in representing international manufacturers and service providers.  Local advertising agencies and affiliates of international advertising agencies and market research companies complement the marketing channels.  The media provide advertising opportunities for manufacturers and international exporters.

Distribution Channel Options

The Kenyan market is increasingly competitive and demanding.  The government has opened up the market to more entrants.  Product representation is crucial for effective market coverage.  This representation may be achieved through one or a combination of the following methods:
Establishing a local representative/distributor.
Selling through an agent or distributor who can cover the entire region, including the neighboring countries of East Africa.
Selling through established dealers.
Establishing a dealership (especially common for big-ticket items).

Although the Kenyan market presents no particular marketing problems for U.S. suppliers, its long distance from U.S. manufacturers requires that the local dealer or distributor be positioned to stock higher than normal levels to cater for longer freight time.  Price and compatible technical specifications usually are the major considerations when deciding to purchase goods.  Other than setting up a manufacturing plant, U.S. manufacturers and exporters are best served by establishing a local representative as the most realistic market penetration strategy for Kenya and the region.

Kenya, unlike the United States and Europe, lacks an effective system of back-up service and after-sales support making these two major considerations when Kenyans buy from international sources.  Kenyan dealers and retailers generally do a smaller volume of business than their American counterparts.  U.S. exporters should, therefore, be prepared to sell in smaller lots.

Common methods of selling are through retail outlets, agents or distributors, established wholesalers or dealers, or to end-users, which include government agencies and other private local organizations.

The distribution system, especially at the retail level, consists of outlets that are small by American standards.  Wholesalers often also act as retailers.  They purchase goods from manufacturers and then distribute them either directly, and/or through retail outlets to end-users.

Agents and Distributors

Kenyan laws have no requirement for the retention of a local agent or distributor by a U.S. or foreign company exporting to Kenya.  However, it is advisable for a U.S. company trying to penetrate this market to consider retaining an agent resident in Kenya.  If the product to be exported requires servicing, then qualified service personnel and a reasonable supply of spare parts must be considered.  Failure to address the issue of after-sales support and service is an impediment to success in this market. 

Franchising Activities

Although franchising is one the fastest growing trading modes around, historically it has not been a main commercial feature in Kenyan trading practices.  It is therefore the least understood and practiced of the channels of distribution.  Other than Coca-Cola, franchising in general has not been successful in Kenya, although recently South African franchises have entered the Kenyan market.  The main impediments include frequent infringement of the franchise agreement, lack of commitment by the franchisees and weak management in general.  The distance between the U.S. and Kenya has made franchise supervision and training difficult.  Despite these shortcomings, local inquiries for American fast food and car rental franchises clearly indicate interest in franchising.

Direct Marketing Options

Direct marketing of U.S. products in Kenya is limited to big-ticket items.  This includes major tender (bid) items, and/or single sale items. 

Joint Ventures and Licensing Options

Unlike franchising, joint ventures and licensing are common features of the Kenyan business scene.  Such arrangements should only be finalized through a local attorney.  (In the case of any disputes there is a board of arbitration through which commercial disputes can be referred.)  Joint ventures and licensing arrangements are generally recognized and protected by Kenyan commercial law.

Creating a Sales Office

To establish a legal presence in Kenya, U.S. firms should register with the Kenyan Registrar of Companies as a foreign company rather than register a business name or incorporate in Kenya.  Incorporation of a company in Kenya as a subsidiary of a U.S. corporation, as opposed to the registration of a U.S. firm, is more complicated and usually more expensive.  Registration entails delivering, within 30 days of establishing a place of business in Kenya, to the Registrar of Companies, at the Companies Registry, Attorney General Chambers in Nairobi the following:
A copy of the charter, statutes or Memorandum and Articles of Association or other instrument constituting or defining the constitution of the company certified accurate by a Notary Public.
A list of the company directors and the secretary containing details of their full names, physical and/or postal address, nationalities, business occupation and directorships (if any) of Kenyan companies;
A statement of all mortgages or charges (if any) created by the company over any property situated wholly or partly in Kenya.
The names and postal addresses of one or more people resident in Kenya authorized to accept service of legal proceedings or notices on behalf of the company.
The full physical and postal address of the company’s Head Office or registered office; and
The physical and postal address of the company’s place of business in Kenya.

The Registrar of Companies issues a “Certificate of Compliance” that the requirements of the Kenyan Companies Act have been fulfilled.  This allows the company to obtain trading licenses from the local authority and the Ministry of Trade and Industry.

Selling Strategies

Catalogs and product brochures are useful tools for selling in Kenya.  They serve as convenient reference points for both resellers and end users.  The Kenyan market still requires visual representation for most products, particularly technically detailed products.  Technical details are important in product brochures since they serve as reference for maintenance.  They supply both end-users and importers with up-to-date product information, including prices and the latest technological developments.  U.S. firms should, where practical, use Kiswahili as a second language on the flyers, with English being the first language.

Import licenses are no longer a requirement in Kenya, except for products that raise certain health, environmental and security concerns.  In an attempt to further encourage investment, the government has harmonized and lowered import tariffs. 

The Government of Kenya requires exporters to obtain certificates of inspection for quality and price comparison for goods with a minimum value of $5,000 from either Cotecna Inspections, Inc. or Bureau Veritas.  Goods with a value of less than $5,000 will be subject to a random inspection by a government import auditor.  Under new Kenyan regulations, the inspection agency also establishes the customs classifications of the goods to be imported.  It is important for American exporters to ensure that their shipments are classified at the lowest legal tariff rate.

Advertising and Trade Promotion

The most widely used advertising media in Kenya are print, radio, and television.  The development and use of other media are limited and not cost-effective.  Kenya has four main daily newspapers: The Daily Nation, East African Standard, The People, and Kenya Times; five weekly newspapers: The People Weekly, Sunday Times, Sunday Nation, Sunday Standard, and The East African.  There are a number of monthly magazines such as The Executive, Market Intelligence, Parents, Presence, Law Review and Computers in Africa.  The government-owned Kenya Broadcasting Corporation (KBC) operates both radio and television on a commercial basis and airs from 5:00 a.m. to midnight.  KBC, in a joint venture with South Africa’s Multichoice, operates a 24-hour commercial satellite and cable television station targeting Nairobi’s up-market viewers. There are eight privately-owned broadcasting stations: Kenya Television Network (KTN) - run by the Standard Ltd., Nation Television & Radio - run by the Nation Media Group, TV Africa - a South African Company, Family TV & Radio - an American station featuring mainly Christian programming, Citizen Television & Radio, Kiss FM, Capital FM and most recently East Africa Television & Radio - with coverage also in Uganda and Tanzania.  These are all 24-hour stations with considerable foreign television programming including CNN, BBC, Sky News and VOA.  There are also two vernacular radio stations: Kameme FM and Coro FM, both targeted at rural listeners.  Cable Television Network (CTN), a pay-per-view television network, runs a cable station aimed mainly at the up-market Nairobi-based Asian clientele.  The new GOK has liberalized the licensing of radio and television stations.

Some of the leading international advertising agencies, including Ogilvy & Mather, McCann Erickson and Young & Rubicam, have local offices or affiliates.   Although there are no restrictions on importing ready-to-use advertising materials, U.S. firms should consult closely with locally-based advertising firms to obtain leads on accepted advertising norms and help adapt the material to fit local situations, including translation services as necessary.

The Nairobi International Trade Fair, an annual six-day event, is an all products exhibition organized by the Agricultural Society of Kenya.  It is an appropriate venue for the exhibition and promotion of such products as agricultural machinery, equipment and inputs; construction equipment; food processing and packaging equipment; and road construction equipment.  There also are some specialized trade exhibitions organized annually in Nairobi covering computers, horticulture, medical and telecommunications equipment.  U.S. firms marketing regionally should examine the possibility of participating in the U.S. regional trade fairs and in U.S. pavilions organized in other countries in East and Central Africa.

Pricing Issues

Although many U.S. firms prefer to quote prices f.o.b. U.S. port, price quotations for Kenyan-destined goods should be on c.i.f. Mombasa or Nairobi basis, i.e. costs, insurance, and freight to the point of disembarkation; Mombasa for sea freight and Nairobi for air freight.  The c.i.f. quote in U.S. dollars is generally acceptable and preferred by Kenyan importers as they are familiar with customs charges, including taxes that are levied at the local ports/airports and brokerage and handling charges.

Supplying Customer Service

U.S.-based manufacturers are disadvantaged in terms of freight time as compared to European competitors. Down time is always expensive.  U.S. firms exporting big-ticket items and other durable items to Kenya should fully train local staff and establish a strong liaison with end-users for continuous equipment performance assessment.  Manufacturers, in conjunction with the local representative, should provide detailed product information, including operating instructions.  Therefore, ready local availability of spare parts and strong integrated back-up service is vital.

Public Sector Marketing

All major government and parastatal procurements are done through a tendering (bidding) system.  Public procurement in Kenya continues to be fraught with irregularities.  In March 2001, the GOK issued public procurement regulations and in November 2001, established a Procurement Appeals Board within the Ministry of Finance.  Since its establishment, Kenya’s Procurement Appeals Board has overturned a number of public procurements that were found to have been fraught with improprieties.  The new Government of Kenya is taking steps to streamline the operations of the procurement process.  While Kenya is on the right path to creating a sound public procurement regime, public officials still require training and guidance to ensure fair and transparent procurement practices.

U.S. firms responding to large World Bank/multilateral donor projects should be competitive and follow tender instructions, especially with regard to financing.  Some government requests for proposals are issued only to pre-qualified firms. 

Intellectual Property Risks

Kenya is a member of the Paris Union International Convention for the Protection of Industrial Property (Patents and Trademarks).  The country also enacted legislation in 1990 for protection of patents and trademarks.  The 1990 legislation created the Kenya Industrial Property Office (KIPO) for receipt of IP international applications, issuance of industrial property rights, screening of technology transfer agreements and licenses, and dissemination of patent information.  KIPO also has the legal authority to prosecute infringements on Industrial Property Rights and registration & renewal of trademarks and service marks.  Trademarks are protected for a period of seven years from the date of application.

Kenyan protection of copyrights was enacted as law under the Copyright Act No. 12 of 2001; however, enforcement is very weak.  In an annual study conducted by the Business Software Alliance, Kenya was featured in the list of the “Top 25 worst piracy offenders” with a rate of 77 percent use of counterfeit software.  In essence, this means that approximately 8 out of 10 software products used in Kenya are pirated.  Intellectual property violations extend widely to the music and video industries as well.  On paper, the Copyright Act of 2001 has provisions for protection from both audio and video copyright infringements, but in actuality protection is extremely weak.  Kenya has law firms with IPR-specialized attorneys who can advise U.S. firms on Kenyan IPR legislation.

Hiring Local Counsel

The Kenyan legal system is based on British law.  Although not substantially different from the U.S. legal system, Kenyan legal practices and procedures are special enough to require services of either a Kenya-based attorney or an attorney licensed to practice within the British Commonwealth.  U.S. firms should seek the services of such attorneys whenever legal services are required.  Contravention of Kenyan legal practices and procedures, including using the services of a non-Commonwealth attorney, could result in serious repercussions such as de-registration of the company and nullification of any and all legal agreements, contracts, charges, etc.  U.S. firms are advised to seek clarification of all legal terminology as legal terms in Kenyan English may mean something different in American English. 

Performing Due Diligence and Checking Bona Fides

U.S. companies can verify the existence or check the reputation of locally based companies through the use of a qualified Kenyan credit agency.  

Import and Export Regulation Risks

Donor-initiated economic reforms have dramatically reduced government’s interference with trade.   Price decontrol, removal of foreign exchange and import controls, as well as the deregulation of the grain sector, have become the hallmark of GOK’s trade liberalization initiative.   This liberalization has strongly enhanced the Kenyan business environment.   The Government of Kenya has embarked on import duty rationalization, lowering tariffs, and reducing licensing requirements.   Although customs rules are still detailed and rigidly implemented, affecting smooth operations of such practices as manufacturing under bond (MUB), the GOK’s gradual rationalization of import duties does make domestic businesses more competitive.   The GOK has also embarked on a program of streamlining customs operations, with the intent of making it more user friendly while maximizing revenue collection.   Likewise, the GOK has sought to reorganize and strengthen the Kenya Ports Authority (KPA), a GOK parastatal tasked with supervision and maintenance of Kenyan ports facilities and infrastructure.   Their main task is to promote the port of Mombasa as a primary gateway to the East African Region.   These developments are helping to change previous practices, which led to serious delays in clearing both the import of inputs and the export of finished goods and encouraged illegal payments to Customs.

All commodities imported into Kenya must undergo pre-shipment inspection, including price comparison, by Government of Kenya-appointed inspection firms.

Trade Barrier Risks

Kenya applies tariffs based on the international harmonized system (HS) of product classification. 

The government maintains lower duties and value-added tax for selected items in certain priority sectors.  Those items include: palm oil and tallow, bicycles, steel billets, wire rods, graphite lead, windmills, power transformers, cables, and active ingredients used for preparation of human and veterinary pharmaceuticals, fungicides and pesticides.
Non-tariff barriers include the requirement to use a GOK appointed inspection firm for imports.  Some U.S. firms may find packaging and labeling requirements difficult to meet.  For example, the lack of certain intellectual property rights (IPR) protection on videos, music, and computer software makes U.S. firms reluctant to export their goods and services to Kenya.

Kenya’s eight tax treaties normally follow the Organization for Economic Cooperation and Development model for the prevention of double taxation of income.   At the moment there is no tax treaty between Kenya and the United States but this has not been a hindrance.   There are U.S. companies operating in Kenya and are subject to Kenyan tax law.

Valuations on Imports

All imports with F.O.B. value of more than $5,000 must undergo a pre-shipment inspection for quality, quantity, and pri


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