Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 8/13/2019

The cost of skilled, educated labor is high by developing world standards, and unemployment and underemployment remain high. Kenya’s physical infrastructure remains a key obstacle to economic development, along with government efficiency, corruption, and weak regulatory and judicial system reliability.

In 2017, Transparency International ranked Kenya 143 out of 180 countries with a score of 28 out of 100 on its perceptions of corruption index. Claims of corrupt dealings, particularly in land purchases and large government contracts persist.  Despite the implementation of some reforms, courts remain subject to significant case backlogs, and cases can take years to resolve. Parties often succeed in delaying cases for long periods through complicated procedural motions. Allegations of serious corruption within the judiciary persist.

Violations of intellectual property rights (IPR) for videos, music, software, and consumer goods continue to cause major problems for some U.S. firms. Title to land is uncertain, reducing the borrowing capacity of families and businesses and constraining Kenya’s ability to broaden its capital base. Land reform is a divisive and emotional issue, complicated by tribal traditions, land sale scams, and perceived historical injustices, which Kenya has so far been unable to resolve.

In August 2016, the Government of Kenya (GOK) enacted the Banking Act, capping the maximum interest rate banks can charge on commercial loans at four percent above Central Bank of Kenya’s (CBK) benchmark lending rate. The legislation also provides a floor for the interest rate that banks must pay to depositors.  The IMF has warned that the restrictions will result in a continuing shrinkage in the availability of credit, which was previously one of the factors behind Kenya’s strong economic performance over the last eight years.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.