Kenya s

The Country Notebook Outline (Click here for more information about the Country Notebook.)
• I. Cultural Analysis
• II. Economic Analysis
• III. Market Audit and Competitive Market Analysis
• IV. Preliminary Marketing Plan

I. Cultural Analysis

Guideline
I. Introduction

Founding president and liberation struggle icon Jomo KENYATTA led Kenya from independence in
1963 until his death in 1978, when President Daniel Toroitich arap MOI took power in a constitutional
succession. The country was a de facto one-party state from 1969 until 1982 when the ruling Kenya
African National Union (KANU) made itself the sole legal party in Kenya. MOI acceded to internal
and external pressure for political liberalization in late 1991. The ethnically fractured opposition failed
to dislodge KANU from power in elections in 1992 and 1997, which were marred by violence and
fraud, but were viewed as having generally reflected the will of the Kenyan people. President MOI
stepped down in December 2002 following fair and peaceful elections. Mwai KIBAKI, running as the
candidate of the multiethnic, united opposition group, the National Rainbow Coalition (NARC),
defeated KANU candidate Uhuru KENYATTA and assumed the presidency following a campaign
centered on an anticorruption platform. KIBAKI's NARC coalition splintered in 2005 over the
constitutional review process. Government defectors joined with KANU to form a new opposition
coalition, the Orange Democratic Movement, which defeated the government's draft constitution in a
popular referendum in November 2005. KIBAKI's reelection in December 2007 brought charges of
vote rigging from ODM candidate Raila ODINGA and unleashed two months of violence in which as
many as 1,500 people died. UN-sponsored talks in late February produced a powersharing accord
bringing ODINGA into the government in the restored position of prime minister.

II. Brief discussion of the country’s relevant history

1
 The Kenyan coast had served host to communities of ironworkers and communities of
subsistence farmers, hunters and fishers who supported the economy with agriculture, fishing, metal
production and trade with foreign countrie. Around the 6th or 9th century CE Kenya switched to a
maritime-based economy and began to specialize in shipbuilding to travel south by sea to other port
cities such as Kilwa Masoko and Shanga along the East African coast. Mombasa became the major
port city of pre-colonial Kenya in the Middle Ages and was used to trade with other African port
cities, Persia, Arab traders, Yemen and even India Fifteenth-century Portuguese voyager Duarte
Barbosa claimed, "[Mombasa] is a place of great traffic and has a good harbour in which there are
always moored small craft of many kinds and also great ships, both of which are bound from Sofala
and others which come from Cambay and Melinde and others which sail to the island of Zanzibar."

The colonial history of Kenya dates from the establishment of a German protectorate over the
Sultan of Zanzibar's coastal possessions in 1885, followed by the arrival of the Imperial British East
Africa Company in 1888. Incipient imperial rivalry was forestalled when Germany handed its coastal
holdings to Britain in 1890. This followed the building of the Kenya–Uganda railway passing
through the country. This was resisted by some tribes — notably the Nandi led by Orkoiyot Koitalel
Arap Samoei for ten years from 1895 to 1905 — still the British eventually built the railway. The
Nandi were the first tribe to be put in a native reserve to stop them from disrupting the building of the
railway. During the railway construction era, there was a significant inflow of Indian peoples who
provided the bulk of the skilled manpower required for construction.
[

III. Geographical setting

A. Location
B. Located in east Africa, Kenya has a total area of 582,650 square kilometers (224,962 square
miles), rendering it slightly larger than twice the size of Nevada. With a coastline of 536
kilometers (333 miles), Kenya borders the Indian Ocean to the east, Somalia to the northeast,
Ethiopia to the north, Sudan to the northwest, Uganda to the west, and Tanzania to the south.
Nairobi, the capital of Kenya, is situated slightly south of the center point of the country.

B. Climate

The climate of Kenya is as varied as its topography. Climatic conditions range from
the tropical humidity of the coast through the dry heat of the hinterland and northern plains
to the coolness of the plateau and mountains; despite Kenya's equatorial position, Mt. Kenya
is perpetually snowcapped. The coastal temperature averages 27° C (81° F ), and the
temperature decreases by slightly less than 2° C degrees Celsius (3° F ) with each 300-m
(1,000-ft) increase in altitude. The capital, Nairobi, at 1,661 m (5,449 ft), has a mean annual
temperature of 19° C (66° F ); at 2,740 m (9,000 ft) the average is 13° C (55° F ). The arid
northern plains range from 21° to 27° C (70–81° F ).

2
Seasonal variations are distinguished by duration of rainfall rather than by changes of
temperature. Most regions of the country have two rainy seasons, the long rains falling
between April and June and the short rains between October and December. Average annual
rainfall varies from 13 cm (5 in) a year in the most arid regions of the northern plains to 193
cm (76 in) near Lake Victoria. The coast and highland areas receive an annual average of 102
cm (40 in).

IV. Social institutions

Kenya, Tanzania and Zambia all have very serious, though stable HIV epidemics. The three countries
are also currently actively scaling up access to antiretroviral treatment (ART), which means that more
and more people are now living longer and healthier lives with HIV. As a direct result, there has been
an increase in demand for more and alternative care and support services for those infected and
affected by HIV, including client-centered services provided by others living with the disease. These
demands cannot be absorbed by the already overburdened healthcare services, nor by kinship networks
already stretched to the limit by HIV and Africa's ongoing economic crisis. To fill the emergent gap in
care and support needs and desires, People Living with HIV (PLHIV) are therefore taking the
initiative, as can be witnessed by the rapid growth of PLHIV-centered organisations geared toward
meeting these ends.

The main hypothesis of this research programme is that social institutions are being transformed in
radical and significant ways to meet the care and support needs of communities overburdened by HIV.
We argue that knowledge of these transformations is best gained by studying social institutions that
have been particularly shaped by HIV/AIDS. To this end, the main aim of this Integrated Progamme
will be to conduct in-depth comparative qualitative research in Kenya, Tanzania and Zambia into three
key areas of AIDS care and support particularly bound to social and cultural norms: 1) community-
based care and treatment of orphans; 2) the provision of HIV/AIDS counseling and treatment by lay
providers; and 3) the emergence and transformation of support groups for people infected with and
affected by HIV/AIDS.

The research will consist of independent but inter-related comparative studies using primarily
qualitative methods. We aim to achieve the following objectives:

3
 1. To describe the ways that social life in rural and urban communities has been transformed by
efforts to provide care and support for those infected and affected by HIV/AIDS in Tanzania,
Kenya and Zambia;
2. To investigate the ways community-initiated AIDS care and support is understood and
delivered in rural areas least served by health services;
3. To identify and document existing best practices for filling AIDS care and support gaps as
demonstrated by various non-governmental actors, including kinship networks, community
based organizations (CBOs), faith-based organizations (FBOs), lay counsellors, and PLWA
activists and support groups;
4. To make policy-relevant recommendations for improving the continuum of quality health care
and support for those infected and affected by AIDS.

A. Family

The population of Kenya includes forty-two traditional ethnic groups (CBS 1994), which can
be broadly divided into three groups: the Bantu, Nilotes, and Cushites. These three categories
of ethnic groups are spread all over the country, and no particular group can be tied to one
region. The regional boundaries do little to separate the similarity of customs and beliefs
possessed by each group, owing to their common heritage and contacts over hundreds of
years. Commonly, then, cultural traits exhibited by one ethnic group of a broader group in
one region are the same as those of another ethnic group of the same broader group in a
different region.

With the advent of modernity—education, technology, urbanization, Western religion and

changing socioeconomic factors—the Kenyan society has increasingly become universal, and
ethnic identities and affiliations are steadily fading. This has brought a degree of universality
in the way of life as contemporary society adapts to new situations that were totally unknown
to traditional society. Family life has also changed, with many families caught between the
traditional family system that advocates for solidarity and the modern system, which is
characterized by individualism, a shift that developed because of changing religious, social,
political, and economic factors.

Family relations are undergoing redefinition within the emerging structures of socially and
economically viable domestic groups. The HIV/AIDS pandemic in the 1990s has also given a

4
new dimension to the Kenyan concept of marriage and family by challenging African
traditional beliefs, marital roles, familial obligations, morality, and sexuality. Nevertheless,
although these changes are widespread, in view of the cultural diversity in the country and
difference in pace of adaptation to the changing social and economic environment, family
structures and forms are not uniform.

B. Education

Primary education is free and compulsory for eight years. Children start school at the age of
five or six and spend eight years at primary school; four years at secondary school; and a
further four years at the university. In 1995, there were 5,544,998 primary students and
181,975 teachers, with a student-to-teacher ratio of 30 to 1. In general secondary schools,
there were 632,388 and 41,484 teachers. The pupil-teacher ratio at the primary level was 29
to 1 in 1999. Projected adult illiteracy rates for the year 2000 stand at 17.5% (males, 11.0%;
females, 24.0%). As of 1999, public expenditure on education was estimated at 6.6% of GDP.

There are four main universities in Kenya. Kenyatta University was founded in 1972 and is
located in Nairobi. The University of Nairobi was founded in 1956 as the Royal Technical
College of East Africa. The Moi University was founded in 1984 at Eldoret. The Egerton
University, located at Njoro, was founded in 1939. The language of instruction in all the
universities is English. There were 4,392 teaching staff and 35,421 students at universities
and equivalent institutions in 1991.

5
 1. The role of education in society

a. Primary education (quality, levels of development, etc.)

Primary education is free and compulsory for eight years.

Children start school at the age of five or six and spend eight years
at primary school; four years at secondary school; and a further
four years at the university.

b. Secondary education (quality, levels of development, etc.)

Secondary school education usually starts at 14 years of age and

runs for four years. Upon completion of secondary school,
students can choose to go to college or pursue other vocational
fields. Students who do well in secondary school are admitted to
college, and others join teacher training institutions, technical
training schools, or the job market.

c. Higher education (quality, levels of development, etc.)

The roles of higher education institutions are clear. First, they should provide
education and training within a structure that combines research and teaching. Second,
they should offer professional training in fields such as Medicine, Engineering,
Architecture, Law and Teaching.

2. Literacy rates
definition: age 15 and over can read and write
total population: 85.1%
male: 90.6%
female: 79.7% (2003 est.)

C. Political system

The legislative branch of the Kenyan government consists of a unicameral National

Assembly (bunge), whose representatives are elected by popular vote to serve 5-year terms.
The executive branch consists of a chief of state who is both president and head of
government. The president is elected by popular vote by members of the National Assembly.
The president, in turn, selects a cabinet. The judicial branch comprises a Court of Appeal, a
chief justice appointed by the president, and a High Court.

6
 1. Political structure

The president, in turn, selects a cabinet. The judicial branch comprises a Court
of Appeal, a chief justice appointed by the president, and a High Court. The legal system is a
complex hybrid of English common law, tribal law, and Islamic law. The military is more or
less apolitical, and Kenya boasts one of the most stable political histories in all of east Africa.
This record was slightly marred in the early 1990s, when serious ethnic clashes killed
thousands and left tens of thousands homeless.

2. Political parties

Following a constitutional conference at Lancaster House in London in February 1960, two

national African parties were formed, the Kenya African National Union (KANU) and the
Kenya African Democratic Union (KADU). Since 1964, KANU has dominated Kenyan politics.
In March 1966, 30 KANU members of the House announced that they had formed an
opposition party, later named the Kenya People's Union (KPU), led by Oginga Odinga, a Luo,
who had resigned his post as vice president. By-elections for the 30 seats, held in June 1966,
resulted in the KPU's retention of only 9. In July 1969, Tom Mboya, the minister of economic
planning, was assassinated. His death touched off old animosities between his tribe, the Luo,
and the politically dominant Kikuyu, to which Kenyatta belonged. The government used the
pretext of the assassination to ban the KPU and jail Odinga and other opposition leaders.

7
 3. Stability of government

Prior to the 1997 elections, the government reformed the electoral process again and
eliminated some of the most oppressive laws concerning public assembly and speech. At the
time of the December 1997 elections, 26 parties had registered candidates. Ten parties held
seats in Parliament.

4. Role of local government

Kenya is divided into seven provinces: Coast, Northeastern, Eastern, Central, Rift Valley,
Nyanza, and Western. (The Nairobi area is separate and has special status.) These are
subdivided into 63 districts, each headed by a presidentially appointed commissioner;
provincial administration is closely supervised by the central government. There are two
types of upper local authorities (municipalities and county councils) and four types of lower
authorities (urban councils, township authorities, area councils, and local councils). The
Nairobi area, administered by a city council, is the direct responsibility of the central
government. Many of the councils raise their own revenues by taxes, construct and maintain
roads, carry out public health schemes, construct and improve housing, support education,
and provide agricultural and social welfare services.

D. Legal system

The legal system is based on the 1963 constitution, the Judicature Act of 1967,
and common law court precedent. Kenya accepts compulsory ICJ jurisdiction with
reservations. Customary law, to the extent it does not conflict with statutory law, is used as a

8
guide in civil matters concerning persons of the same ethnic group.

1. Organization of the judiciary system

The judicial system consists of the Court of Appeal, which has

final appellate jurisdiction, and subordinate courts. The High Court, sitting continuously at
Nairobi, Mombasa, Nakuru, and Kisumu, and periodically at Eldoret, Kakamega, Nyeri,
Kitale, Kisii, and Meru, consists of a chief justice and 24 associate judges, who are appointed
by the president of the republic. The High Court has both civil and criminal jurisdiction,
serving as an appellate tribunal in some cases and as a court of first instance in others. Lower
courts are presided over by resident magistrates and district magistrates.

3. Participation in patents, trademarks, and other conventions

The office responsible for receiving trademark applications is the Department of

the Registrar General, P.O. Box 30031, Nairobi, Kenya. There are no provisions
for automatic protection or recognition of a mark previously registered in the
United Kingdom. In Kenya, registrations are valid for 7 years from application
date and renewable for 14-year periods. The first person to apply for a mark as
its user or intended user is entitled to its registration. Applications are published
for opposition for 60 days.

9
V. Religion and aesthetics

An estimated 66% of the population are Christians with about 28% belonging to the
Roman Catholic church and 38% belonging to Protestant churches. About 10% to 20% are
Muslim, with many living in the Northeast Province, the Coast Province, and the northern
region of the Eastern Province. About 1% is Hindu and the remainder practice traditional
religions or local branches of Christianity. As in other African states with complex religious
histories and some renewal of cultural self-consciousness, it is likely that a majority of ethnic
Kenyans also hold some traditional African beliefs.

2. Relationship with the people

Most city residents retain links with their rural, extended families and leave the city periodically to help work on

the family farm.

3. Which religions are prominent?

66% of the population are Christians with about 28%
belonging to the Roman Catholic church and 38%
belonging to Protestant churches. About 10% to 20% are
Muslim,

VI. Living conditions

10
With over half the population living on less than $1 per day, poverty and hunger are a
major problem in Kenya. Living conditions are made worse by the absence of
electricity, clean water, proper sewage and sanitation. All these problems are
amplified in the slums of Kenya which have cropped up around Naroibi. Kibera, the
world's largest slum, located in Kenya is home to nearly 1 million people. These
conditions are felt even more by the innocent children who can only sit and watch.

A. Diet and nutrition

Traditionally, the Maasai diet consisted of meat, milk, and blood from cattle. An
ILCA study (Nestel 1989) states: “Today, the staple diet of the Maasai consists of cow's milk and
maize-meal. The former is largely drunk fresh or in sweet tea and the latter is used to make a liquid
or solid porridge. The solid porridge is known as ugali and is eaten with milk; unlike the liquid
porridge, ugali is not prepared with milk. Meat, although an important food, is consumed
irregularly and cannot be classified as a staple food. Animal fats or butter are used in cooking,
primarily of porridge, maize, and beans. Butter is also an important infant food. Blood is rarely
drunk.”

1. Typical meals

Traditional Kenyan foods reflect the many different lifestyles of the various groups in the
country. Most Kenyan dishes are filling and inexpensive to make. Staple foods consist mainly
of corn, maize, potatoes, and beans. Ugali (a porridge made of maize) and meat are typically
eaten inland, while the coastal peoples eat a more varied diet.

Housing

Housing in rural areas is privately owned. Most of these homes, built with traditional
materials, deteriorate in a relatively short time; an increasing number of people now build
their homes with more permanent materials. The central government is responsible for all
housing projects and works closely with local authorities. Many new housing projects have
been undertaken with financial aid from the National Housing Corp. According to the latest
information available, total housing stock in the 1980s stood at 3,470,000, with 6.1 people

11
per dwelling.

1. Types of housing available

Maisonette

A maisonette derivative of mansion (a large house) is a small house usually attached to another one. Has two levels with an internal stair way joining

the two levels.

Apartment

An apartment is by definition a unit in a bigger building used for dwelling by a person or a family. May be occupied by the owner or a

tenant.

Town House

A town house in pre-WW1 in Britain was a huge house built in the city owned by Aristocrats. This term is borrowed from Europe otherwise known as

terraced housing. Here in Kenya, the term has assumed a slightly different meaning.

2. Do most people own or rent?

Most people in Kenya own houses privately.

C. Clothing

some tribes have largely kept their traditional dress and life style. The Masai Maria (also spelled Maasai Mara) are the
most famous, but this also goes for the Samburu (which are closely related to the Masai) and the Turkana peoples, who live in the
north. Although even among these tribes, modernity is making it’s way, with traditionally dressed warriors carrying digital
watches or sometimes even cell phones, to be able to receive tourists

1. National dress
Most people agree there is no such thing as a ‘national Kenya clothing’. First of all, Kenya consists of over 70 ethnic groups
(tribes) who all have different traditional dress styles. Secondly, the majority of Kenyans dress more or less Western style. Along
the coast – for example in Mombasa or Lamu - where a big part of the population is Muslim, some also dress Arabic style.

12
 D. Recreation, sports, and other leisure activities
Football (soccer in the US) is no doubt the most popular sport in Kenya. People are nuts about it. It was
introduced by the British in the early 20th century. While tribe is generally important in Kenya, football remarkably crosses both
ethnic and class lines. Streets are empty during the World Cup, when millions are in front of the TV. A quick way to make friends
with a Kenyan male is to simply mention some famous Kenyan football players from your own country.

However, the sport in which Kenyans are world-leaders is long-distance running. During the Sydney Olympics of
2000, Kenyans won the Olympic gold medal in the 3,000 meter steeplechase – a combination of hurdling, going through water and running,
for the 7th time in a row. Between 1964 and 2000, Kenyans have always won this event, if we don’t count the two Olympic Games they
boycotted. No-one can deny Kenyan superiority in this discipline – runners from Kenya alone account for over 90 of the 100 best times in
steeplechase ever.

E. Social security
The National Social Security Fund (NSSF) is a statutory yet friendly public Trust which exists
for the public good. It is the premier social security provider for Kenya’s workers. Our
role is to provide social security protection to workers in the formal and informal sectors.

F. Health care

The National Hospital Insurance Fund is the most important health insurance program in
Kenya. Membership is compulsory for all civil servants. As of 1990, contribution levels
proved insufficient to meet hospital costs and the government was planning to broker private
health insurance policies. The government is continually improving and upgrading existing
health facilities and opening new ones. Kenya produces cotton wadding domestically, but all
other medical equipment and supplies are imported. High-quality private practitioners
require sophisticated medical equipment, but the public sector acquires less expensive
equipment. Private health institutions account for 60% of total medical equipment and
supplies (import value). Kenya also has a well-developed pharmaceutical industry that can
produce most medications recommended by the World Health Organization.

VII. Language

13
Although there are linguistic groupings of very similar dialects, nearly all the African ethnic
groups have their own distinct languages. Swahili, however, increasingly has become an East
African lingua franca, and in 1974 it became Kenya's official language, along with English.
English remains in wide use in business and government, and parliamentary bills must be
drafted and presented in that language. Both Gujarati and Punjabi are widely used among the
Asian community.

A. Official language(s)

Swahili (official), English (official)

IX. Sources of information

[Link], [Link], Wikipedia.

X. Appendixes

[insert text here]

II. Economic Analysis

14
Guideline
I. Introduction

The area that now comprises Kenya came under British domination in the 1890s, though it
was not declared an official Crown colony until 1920. Under British hegemony (complete
domination), a racially stratified economy was created, with European settlers controlling a
large segment of the fertile land and managing nascent industries, while the African
indigenous population worked as laborers on cash-crop plantations and in factories.
Indians, occupying a status somewhere between the Europeans and Africans, formed a petty-
capitalist class of artisans, clerks, and merchants. By and large, the colonial economy was
characterized by settler control of farming lands (settler-economy), with tea and coffee acting
as the major export crops designated for sale in European markets abroad.

II. Population

The population of Kenya in 2003 was estimated by the United Nations at 31,987,000, which
placed it as number 34 in population among the 193 nations of the world. In that year
approximately 3% of the population was over 65 years of age, with another 44% of the
population under 15 years of age. There were 98 males for every 100 females in the country in
2003. According to the UN, the annual population growth rate for 2000–2005 is 1.45%, with
the projected population for the year 2015 at 36,864,000. The population density in 2002
was 54 per sq km (139 per sq mi). Kenya's population has increased with remarkable rapidity
in recent decades. According to UN estimates, the national total rose by 28% from 6,416,000
in 1950 to 8,189,000 in 1960; by 37% to 11,253,000 in 1970; by 46% to 16,466,000 in 1980;
by 36% to 22,400,000 in 1987; and by 24% to an estimated 27,885,000 in 1995. About 75%
of the population lives on only 10% of the land.

15
 A. Total

Kenya has a very diverse population that includes most major ethnic, racial and
linguistic groups found in Africa. The two major categories into which the
various local populations are divided are Bantus and Nilotes. Cushites also
form a significant minority, as do Arabs, Indians and Europeans.
1. Growth rates

2.691% (2010 est.)

country comparison to the world: 25

3. Birthrates

36.64 births/1,000 population (2010 est.)

country comparison to the world: 29

Distribution of population
C. urban population: 22% of total population (2008)
D. rate of urbanization: 4% annual rate of change (2005-10 est.)

1. Age

0-14 years: 42.3% (male 8,300,393/female 8,181,898)

15-64 years: 55.1% (male 10,784,119/female 10,702,999)
65 years and over: 2.6% (male 470,218/female 563,145) (2010 est.)

2. Sex

at birth: 1.02 male(s)/female

under 15 years: 1.01 male(s)/female
15-64 years: 1.01 male(s)/female
65 years and over: 0.83 male(s)/female
total population: 1.01 male(s)/female (2010 est.)

3. Geographic areas (urban, suburban, and rural density and concentration)

16
 total: 580,367 sq km
country comparison to the world: 48
land: 569,140 sq km
water: 11,227 sq km

4. Migration rates and patterns

0 migrant(s)/1,000 population (2010 est.)

country comparison to the world: 82

5. Ethnic groups

Kikuyu 22%, Luhya 14%, Luo 13%, Kalenjin 12%, Kamba 11%, Kisii 6%, Meru 6%, other African
15%, non-African (Asian, European, and Arab) 1%

III. Economic statistics and activity

Although the regional hub for trade and finance in East Africa, Kenya has been
hampered by corruption and by reliance upon several primary goods whose
prices have remained low. In 1997, the IMF suspended Kenya's Enhanced
Structural Adjustment Program due to the government's failure to maintain
reforms and curb corruption

A. Gross national product (GNP or GDP)

$62.56 billion (2009 est.)

country comparison to the world: 83
$60.95 billion (2008 est.)
$59.94 billion (2007 est.)
note: data are in 2009 US dollars

[Link] of growth (real GNP or GDP)

2.6% (2009 est.)
country comparison to the world: 72

17
 1.7% (2008 est.)
7.1% (2007 est.)

D. Distribution of weath

Kenya is a country characterized by abject poverty on the one hand and conspicuous wealth
on the other. According to Miller and Yeager, the roots of inequality stem, in large part, from
the colonial heritage that bestowed upon the nation highly unequal patterns of land tenure.
Since the KANU regime has done very little to rectify the situation of land ownership in the
post-independence era, a small segment of the population— now African instead of European
—continues to own large tracts of land at the expense of the largely small-holding and
landless peasantry. This landed elite, often absentee (having mangers run their estates so that
they can live elsewhere) and centered in the urban centers, controls much of the industrial
and commercial sectors. In addition to the elite landowners (though the groups are not
always mutually exclusive), there exists a small class of politicians and parastatal managers
that exercise extensive access to public resources. As Miller and Yeager assert, politics in
Kenya are synonymous with the pursuit

GDP per Capita (US$)

Country 1975 1980 1985 1990 1998
Kenya 301 337 320 355 334
United States 19,364 21,529 23,200 25,363 29,683
Dem. Rep. of Congo 392 313 293 247 127
Tanzania N/A N/A N/A 175 173
SOURCE: United Nations. Human Development Report 2000; Trends in human
development and per capita income.

18
Distribution of Income or Consumption by Percentage Share: Kenya
Lowest 10% 1.8
Lowest 20% 5.0
Second 20% 9.7
Third 20% 14.2
Fourth 20% 20.9
Highest 20% 50.2
Highest 10% 34.9
Survey year: 1994
Note: This information refers to expenditure shares by percentiles of the population and is
ranked by per capita expenditure.
SOURCE: 2000 World Development Indicators [CD-ROM].

E. Minerals and resources

Gold
Kenya’s gold production was artisanal and small-scale. In December 2004, Muungano
Gold Prospecting Group of Kenya employed about 1,500 miners at six small-scale gold mines in Lirhembe in the Kakamega
District. Kansai Mining Corp. completed a
drilling program at Migori in southwestern Kenya in the second quarter of 2004
b) Iron and Steel
c) Titanium and Zirconium

F. Surface transportation

The Kenya Railways Corp. maintains 2,778 km (1,726 mi) of rail, of which over
half make up the main line between the Ugandan border and Mombasa, the chief port.

A modern installation, the port at Mombasa serves Uganda, Tanzania, Rwanda, Burundi, the
DROC, and the Sudan as well as Kenya. A national shipping line, 70% state owned, was
created in 1987. There is steamer service on Lake Victoria. In 2002, the merchant marine had
two ships (1,000 GRT or over), totaling 4,893 GRT.

19
As of 2002, the road system comprised an estimated 63,300 km (39,334 mi), of which about
8,940 km (5,555 mi) were paved. The major road from Nairobi to Mombasa is well paved,
and the government has undertaken a campaign to widen and resurface secondary roads. All-
weather roads linking Kenya with the Sudan and Ethiopia have been completed. Over 80% of
Kenya's total passenger and freight traffic use road transport. In 2000, there were 288,500
motor vehicles, including 139,900 private passenger automobiles and 148,600 commercial
vehicles.

In 2001, there were 231 airports in Kenya, only 19 of which had paved runways. There are
major international airports at Nairobi (Jomo Kenyatta) and Mombasa (Moi International).
The Nairobi air terminal, opened in 1958 and expanded in 1972 to receive jumbo jets, is a
continental terminus for international services from Europe, Asia, and other parts of Africa.
Air travel and air freight also are accommodated at Malindi, Kisumu, and numerous smaller
airstrips. Kenya Airways flies to other nations of East Africa, the Middle East, Europe, and
the Indian subcontinent. In 2001, 1,418,200 passengers were carried on scheduled domestic
and international airline flights.

1. Modes
Railways ,Roads,Flights.

G. Communication systems

The country has a well established communication system. Kenya Posts and Telecommunications
Corporation provides international direct dialing and subscriber trunk dialing, mobile telephones,
telex, facsimile, data communication and related services. Substantial investment for the expansion of
these facilities is under way. Various Internet Service Providers have very recently started up in Kenya

20
 H. Working conditions

In 1997, an estimated 1.2 million males and 473,400 females engaged in formal wage
employment. Women work overwhelmingly in services, while men work in education,
manufacturing, building and construction, trade, and transport. The highest percentage of
females working in male-dominated areas of the formal sector is in education, where women
constitute 40 percent of the workforce. Women almost exclusively staff several textile
factories, reflecting their overall lower status in the economy.

I. Principal industries

Industry accounted for 13% of GDP in 2000. Although Kenya's manufacturing industries are
small, they are the most sophisticated in East Africa. The manufacturing sector has been
growing since the late 1990s and into the new century. The manufactures Kenya produces are
relatively diverse. The transformation of agricultural raw materials, particularly of coffee and
tea, remains the principal industrial activity. Meat and fruit canning, wheat flour and
cornmeal milling, and sugar refining are also important. Electronics production, vehicle
assembly, publishing, and soda ash processing are all significant parts of the sector. Assembly
of computer components began in 1987. Kenya also manufactures chemicals, textiles,
ceramics, shoes, beer and soft drinks, cigarettes, soap, machinery, metal products, batteries,
plastics, cement, aluminum, steel, glass, rubber, wood, cork, furniture, and leather goods

21
1. What proportion of the GNP does each industry contribute? Kenya has no known oil or
natural gas reserves, although the government had spent $1.6 million on oil exploration by
2000. The oil refinery in Mombasa, built in 1959 and half-owned by the government, and
major oil companies, typically operates at around 65% of its total capacity (averaging 95,000
barrels per day) and is supposed to serve Kenya, Tanzania, Uganda, the DRC, Rwanda,
Burundi, and offshore islands. Kenya deregulated its oil industry in 1994. Refinery products
include gasoline, jet/turbo fuel, light diesel oil and fuel oil. The refinery's future is an
important domestic issue in Kenya, and management is considering upgrading the facility
rather than allowing the refinery to close.

J. Foreign investment

In 1964, in the wake of independence, foreign investment in Kenya went down considerably.
In a move to reverse this trend, the government issued a white paper in 1965 welcoming
foreign investment and encouraging joint ventures. Foreign investments in 1965 totaled $30
million, rising to $52 million in 1971. The pace of investment accelerated during the 1970s,
and by 1984 it was estimated that US investment alone had a value of $350 million

In the early 1990s, the government moved to encourage investment by liberalizing trade
policies and removing impediments to the development of a free market. It was estimated in
1994 that foreign direct investment totaled more than $1 billion

22
 1. Opportunities?

The refinery's future is an important domestic issue in Kenya, and management is

considering upgrading the facility rather than allowing the refinery to close.

2. Which industries?

K. International trade statistics writing guide

[insert text here]

1. Major exports

[insert text here]

a. Dollar value

[insert text here]

b. Trends

[insert text here]

2. Major imports

[insert text here]

a. Dollar value

[insert text here]

b. Trends

23
 [insert text here]

3. Balance-of-payments situation

[insert text here]

a. Surplus or deficit?

[insert text here]

b. Recent trends

[insert text here]

4. Exchange rates writing guide

[insert text here]

a. Single or multiple exchange rates?

[insert text here]

b. Current rate of exchange

[insert text here]

c. Trends

[insert text here]

L. Trade restrictions writing guide

[insert text here]

1. Embargoes

[insert text here]

2. Quotas

24
 [insert text here]

3. Import taxes

[insert text here]

4. Tariffs

[insert text here]

5. Licensing

[insert text here]

6. Customs duties

[insert text here]

M. Extent of economic activity not included in cash income activities writing guide

[insert text here]

1. Countertrades

[insert text here]

a. Products generally offered for countertrading

[insert text here]

b. Types of countertrades requested (i.e., barter, counterpurchase,

etc.)

[insert text here]

2. Foreign aid received writing guide

25
 [insert text here]

N. Labor force

[insert text here]

1. Size

[insert text here]

2. Unemployment rates

[insert text here]

O. Inflation rates writing guide

[insert text here]

IV. Developments in science and technology

[insert text here]

A. Current technology available (computers, machinery, tools, etc.)

[insert text here]

B. Percentage of GNP invested in research and development

[insert text here]

C. Technological skills of the labor force and general population writing guide

[insert text here]

26
V. Channels of distribution (macro analysis) writing guide

[insert text here]

A. Retailers writing guide

[insert text here]

1. Number of retailers

[insert text here]

2. Typical size of retail outlets

[insert text here]

3. Customary markup for various classes of goods

[insert text here]

4. Methods of operation (cash/credit)

[insert text here]

5. Scale of operation (large/small)

[insert text here]

6. Role of chain stores, department stores, and specialty shops

[insert text here]

B. Wholesale middlemen writing guide

27
 [insert text here]

1. Number and size

[insert text here]

2. Customary markup for various classes of goods

[insert text here]

3. Method of operation (cash/credit)

[insert text here]

C. Import/export agents

[insert text here]

D. Warehousing

[insert text here]

E. Penetration of urban and rural markets writing guide

[insert text here]

VI. Media writing guide

[insert text here]

A. Availability of media writing guide

[insert text here]

28
 B. Costs

[insert text here]

1. Television

[insert text here]

2. Radio

[insert text here]

3. Print

[insert text here]

4. Other media (cinema, outdoor, etc.)

[insert text here]

C. Agency assistance

[insert text here]

D. Coverage of various media

[insert text here]

E. Percentage of population reached by each of the media

[insert text here]

VII. Executive summary writing guide

[insert text here]

29
VIII. Sources of information

[insert text here]

IX. Appendixes

[insert text here]

III. Market Audit and Competitive Market Analysis writing guide

Guideline
I. Introduction writing guide

[insert text here]

II. The product writing guide

[insert text here]

A. Evaluate the product as an innovation as it is perceived by the intended market

writing guide

[insert text here]

1. Relative advantage writing guide

[insert text here]

2. Compatibility writing guide

[insert text here]

3. Complexity writing guide

30
 [insert text here]

4. Trialability writing guide

[insert text here]

5. Observability writing guide

[insert text here]

B. Major problems and resistances to product acceptance based on the preceding

evaluation writing guide

[insert text here]

III. The market writing guide

[insert text here]

A. Describe the market(s) in which the product is to be sold

[insert text here]

1. Geographical region(s)

[insert text here]

2. Forms of transportation and communication available in that (those)

region(s)

[insert text here]

3. Consumer buying habits writing guide

[insert text here]

31
 a. Product-use patterns

[insert text here]

b. Product feature preferences

[insert text here]

c. Shopping habits

[insert text here]

4. Distribution of the product writing guide

[insert text here]

a. Typical retail outlets

[insert text here]

b. Product sales by other middlemen

[insert text here]

5. Advertising and promotion writing guide

[insert text here]

a. Advertising media usually used to reach your target market(s)

[insert text here]

b. Sales promotions customarily used (sampling, coupons, etc.)

[insert text here]

6. Pricing strategy

[insert text here]

a. Customary markups

32
 [insert text here]

b. Types of discounts available

[insert text here]

B. Compare and contrast your product and the competition’s product(s)

writing guide

[insert text here]

1. Competitor’s product(s) writing guide

[insert text here]

a. Brand name

[insert text here]

b. Features

[insert text here]

c. Package

[insert text here]

2. Competitor’s prices

[insert text here]

3. Competitor’s promotion and advertising methods

[insert text here]

4. Competitor’s distribution channels

33
 [insert text here]

C. Market size writing guide

[insert text here]

1. Estimated industry sales for the planning year

[insert text here]

2. Estimated sales for your company for the planning year

[insert text here]

D. Government participation in the marketplace

[insert text here]

1. Agencies that can help you

[insert text here]

2. Regulations you must follow

[insert text here]

IV. Executive summary writing guide

[insert text here]

V. Sources of information

[insert text here]

VI. Appendixes

[insert text here]

34
IV. Preliminary Marketing Plan writing guide

Guideline
I. The marketing plan

[insert text here]

A. Marketing objectives writing guide

[insert text here]

1. Target market(s) (specific description of the market)

[insert text here]

2. Expected sales 20-

[insert text here]

3. Profit expectations 20-

[insert text here]

4. Market penetration and coverage

[insert text here]

B. Product adaptation or modification writing guide

[insert text here]

1. Core component

35
 [insert text here]

2. Packaging component

[insert text here]

3. Support services component

[insert text here]

C. Promotion mix

[insert text here]

1. Advertising

[insert text here]

a. Objectives

[insert text here]

b. Media mix

[insert text here]

c. Message

[insert text here]

d. Costs

[insert text here]

2. Sales promotions

[insert text here]

36
 a. Objectives

[insert text here]

b. Coupons

[insert text here]

c. Premiums

[insert text here]

d. Costs

[insert text here]

3. Personal selling

[insert text here]

4. Other promotional methods

[insert text here]

D. Distribution: From origin to destination writing guide

[insert text here]

1. Port selection

[insert text here]

a. Origin port

[insert text here]

b. Destination port

[insert text here]

37
2. Mode selection: Advantages/disadvantages of each mode

[insert text here]

a. Railroads

[insert text here]

b. Air carriers

[insert text here]

c. Ocean carriers

[insert text here]

d. Motor carriers

[insert text here]

3. Packing

[insert text here]

a. Marking and labeling regulations

[insert text here]

b. Containerization

[insert text here]

c. Costs

[insert text here]

4. Documentation required

[insert text here]

a. Bill of lading

38
 [insert text here]

b. Dock receipt

[insert text here]

c. Air bill

[insert text here]

d. Commercial invoice

[insert text here]

e. Pro forma invoice

[insert text here]

f. Shipper’s export declaration

[insert text here]

g. Statement of origin

[insert text here]

h. Special documentation

[insert text here]

5. Insurance claims

[insert text here]

6. Freight forwarder writing guide

[insert text here]

E. Channels of distribution (micro analysis) writing guide

39
[insert text here]

1. Retailers

[insert text here]

a. Type and number of retail stores

[insert text here]

b. Retail markups for products in each type of retail store

[insert text here]

c. Methods of operation for each type (cash/credit)

[insert text here]

d. Scale of operation for each type (small/large)

[insert text here]

2. Wholesale middlemen

[insert text here]

a. Type and number of wholesale middlemen

[insert text here]

b. Markup for class of products by each type

[insert text here]

c. Methods of operation for each type (cash/credit)

[insert text here]

d. Scale of operation (small/large)

40
 [insert text here]

3. Import/export agents

[insert text here]

4. Warehousing

[insert text here]

a. Type

[insert text here]

b. Location

[insert text here]

F. Price determination writing guide

[insert text here]

1. Cost of the shipment of goods

[insert text here]

2. Transportation costs

[insert text here]

3. Handling expenses

41
[insert text here]

a. Pier charges

[insert text here]

b. Wharfage fees

[insert text here]

c. Loading and unloading charges

[insert text here]

4. Insurance costs

[insert text here]

5. Customs duties

[insert text here]

6. Import taxes and value-added tax

[insert text here]

7. Wholesale and retail markups and discounts

[insert text here]

8. Company’s gross margins

[insert text here]

42
 9. Retail price

[insert text here]

G. Terms of sale

[insert text here]

1. EX works, FOB, FAS, C&F, CIF

[insert text here]

2. Advantages/disadvantages of each

[insert text here]

H. Methods of payment writing guide

[insert text here]

1. Cash in advance

[insert text here]

2. Open accounts

[insert text here]

3. Consignment sales

43
 [insert text here]

4. Sight, time, or date drafts

[insert text here]

5. Letters of credit

[insert text here]

II. Pro forma financial statements and budgets

[insert text here]

A. Marketing budget

[insert text here]

1. Selling expense

[insert text here]

2. Advertising/promotion expense

[insert text here]

3. Distribution expense

[insert text here]

44
 4. Product cost

[insert text here]

5. Other costs

[insert text here]

B. Pro forma annual profit and loss statement (first year and fifth year)

[insert text here]

III. Resource requirements

[insert text here]

A. Finances

[insert text here]

B. Personnel

[insert text here]

C. Production capacity

[insert text here]

IV. Executive summary writing guide

45
 [insert text here]

V. Sources of information

[insert text here]

VI. Appendixes writing guide

[insert text here]

46