2. USA-Kenya Chamber of Commerce OVERVIEW www.uskcc.org JUNE 2008

3. 2 VISION: Enhance mutual partnership and investment between the USA and Kenya. MissionStrategy Enhance investment partnerships between US & Kenyan businesses. Build a network of business professionals Build familiarity with Kenya and the US & related business climates & opportunities Encourage foreign investment in Kenya. Create awareness about the Kenyan economy, political stability, business opportunities and support, business policies and regulations Illuminate existing business opportunities in Kenya and the US. Build awareness of business opportunities amongst potential & existing investors. Foster idea exchange about current and potential markets for goods and services. Identify markets in the US for Kenyan goods & services and vice versa. Build relationships with regional US and other country chambers of commerce Build relationships with US government officials Build relationships with US big businesses Build relationships with marketing firms (initially one in Kenya, one in US)

4. 3 VISION: Enhance mutual partnership and investment between the USA and Kenya. MissionStrategy Foster networks between Kenyan and US business professionals. Identify common areas of business interest and gaps. Influence business policy making to support and facilitate business ventures. Influence incentives that drive & support economic development in Kenya. Influence, contribute to and participate in policy making. Attract investors who will improve Kenyan infrastructure. Provide guidance, information and support needed to expedite investment in Kenya. Build Kenya specific knowledge that will expedite investment in Kenya.

5. MESSAGE TO ALL INVESTORS Africa is geographically advantaged having rich natural resources with huge potential and will be the new development frontier of the 21 st Century. The continent has its centre of stability and progress and Kenya is one of them.

6. INTRODUCTION Your Ultimate Investment Partner Your Ultimate Investment Partner

7.  The Republic of Kenya is in East Africa and neighbours Ethiopia, Somalia, Tanzania, Uganda, Sudan.  Size:582,646 sq kms. Population:36.1 million (2006) GDP:$20 billion(2005 Per capita:$3,000  Kenya is a member of UN, AU, EAC, COMESA, ACP, Non Aligned Movement, and WTO among others. It hosts headquarters of UNEP and Habitat. Kenya is also a regional headquarters for numerous international and NGO Agencies. It also hosts regional offices of World Bank, IMF, IFC, WHO, UNDP, UNHCR, UNESCO, East African Development Bank, Eastern and Southern African Trade and Development Bank (PTA Bank) among others.

8. Economic Growth

9. INDICATORS Tourism Growth by over 1.6 Million Visitors –Yr 2006 with earnings increasing to Kshs 56.2 Billion. International arrivals have hit over 1.6 million in 2006 with US surpassing Germany in terms of arrivals and second after UK.

10. INDICATORS  Nairobi Stock Exchange (NSE) Capitalisation of the Nairobi Stock Exchange has grown tremendously and further growth is expected with new IPO’s ie Safaricom and Telkom

11. TAX INCENTIVES AVAILABLE IN KENYA  Tax incentives are mainly in place to promote investment or exports. Major tax incentives available include: Investment Deduction Allowances (IDA): introduced in 1991 to encourage new investment, Industrial Building Allowance: granted on cost of construction of buildings used for manufacturing purposes and also hotel premises, Capital Expenditure on agricultural land: targeted at farmers who incur capital expenditure in the course of their operations Mining deduction allowance: granted to businessmen involved in mining, Import duty set off: allows import duty paid on import of capital equipment to be set off against income tax payable

12. TAX INCENTIVES AVAILABLE IN KENYA Export Processing Zones: allow for duty and VAT free importation of inputs for production of export products within specified zones. Incentives include 10 year tax holiday, exemptions from stamp duty, non liability on income tax for non resident employees, etc,

13. TAX INCENTIVES Manufacture under bond: also allow for duty and VAT free importation but require that corporation tax be paid, Tax Remissions Export Office: TREO primarily involves VAT refunds since duty on most of their inputs is already at 0%

14. KNOWLEDGE BASED INDUSTRIES  Research & development  Biotechnology  Science & Industrial parks  Information Technology enabled services  Assembly lines

15. Technology & Opportunities  Fibre Optic cable  Telecommunications  Information and Communication  Business process Oportunities Fibre Optic cable eCommerce legislation (2009) Back office operations and call centers Software development and consultancy Internet services, web development Hardware assembly and repairs  Privatization of telecommunication providers  Provision of Information and Communication Training for growing market  Provision of fixed telephone services  Development of broad band Infrastructure  Investment in digital radio and television  Alternative energy

16. TRADE AND INVESTMENT OPPORTUNITIES- For Who?  Foreign Investors  Importers  Kenyans in the Diaspora  Development Partners  International Institutions  etc

17. KENYA- AN INDUSTRIAL AND SERVICES HUB IN THE EA REGION Barclays Bank British American Tobacco Nation Media Group Shell

18. 17 Technology & Opportunities  Function of USKCC Networking opportunities Workshops Updates on major projects impacting business Updates on policies impacting business Policy  Areas of interest Technology Infrastructure  Fiber Optic – track progress  Telecommunications – key for BPO Alternative energies  Link a minimum of 2 companies to Kenya  Enhance partnerships leading to: pilot projects on green energy Commercialization of green energy Training [programming languages, help desk support, analysis, data entry etc.]

19. Recent USKCC May 31 st Event

20. Recent USKCC Event  Business opportunities in the US & Kenya 3.5% growth even after post-election violence Ex-Im lending (comparison btw. China & other regions of the world). AGOA (%age of oil export from Africa vs. other goods and services). Health and existing gaps and opportunities. US Dept. of Commerce & services.

21. 20 Upcoming Events  August 21 st 2008: AGOA Workshop  August 22 nd 2008: Q3 report on African Trade and Investment Opportunities (presented by Harambe group after visits to Kenya, Ghana, Nigeria, Tanzania and Ethiopia)  September 26 th 2008: USKCC Annual Golf Classic. (co-sponsored by Ex-Im bank)  November 14 th 2008: Business and Health Forum

22. 21 Questions? Visit us at uskcc.org For more information don’t forget to get a brochure