USA-Kenya Chamber of Commerce: Enhancing Mutual Partnership and Investment

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

2. VISION: Enhance mutual partnership and investment between the USA and Kenya.

3. VISION: Enhance mutual partnership and investment between the USA and Kenya.

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

5. INTRODUCTION Your Ultimate Investment Partner

6. 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.  KENYA - YOUR INVESTMENT & TOURISM DESTINATION

7. Economic Growth

8. 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.

9. 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

10. 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

11. 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,

12. 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%

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

14. 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     

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

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

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.] 17

18. Recent USKCC May 31st Event

19. 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.

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

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