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JAPAN INTERNATIONAL COOPERATION AGENCY (JICA)
MINISTRY OF TRADE AND INDUSTRY (MOTI) THE REPUBLIC OF KENYA
THE MASTER PLAN STUDY FOR
KENYAN INDUSTRIAL DEVELOPMENT
(MAPSKID) IN
THE REPUBLIC OF KENYA
FINAL REPORT
ANNEX
JANUARY 2008
SANYU CONSULTANTS INC., JAPAN KRI INTERNATIONAL CORP., JAPAN
CONTENTS
Annex 1 List of Stakeholders.......................................................................................................... 1-1
Annex 2 List of Supporting Organisations...................................................................................... 2-1
Annex 3 Questionnaire for the Cluster Analysis............................................................................. 3-1
Annex 4 Related Organisations....................................................................................................... 4-1
Annex 5 Result of the Cluster Analysis .......................................................................................... 5-1
Annex 6 102 Companies in Kenya ................................................................................................. 6-1
Annex 7 Agro-industrial Maps ....................................................................................................... 7-1
Annex 8 Record of Workshops ....................................................................................................... 8-1
Annex 9 Record of Forums............................................................................................................. 9-1
Annex 10 Record of National Seminar ........................................................................................... 10-1
Annex 1 List of Stakeholders
MA
PSK
ID
Ann
ex 1
Li
st o
f Sta
keho
lder
s
1-
1
Desc
ript
ion
Loca
tion
Note
Trad
e
Inve
stm
ent
Prom
otio
n
R&D
Tech
nolo
gyHu
man
Res
ourc
e
Infra
stru
ctur
eLa
nd p
olic
ies
and
zonin
g
Fina
nce
Envir
onm
ent
Busin
ess
oper
atio
n
(lega
l, re
gulat
ion
etc)
Oth
er a
reas
Nam
e o
f O
rgan
isat
ion
Nao
ribi a
nd 2
0 D
istri
ctof
fices
MOTI
Min
istr
y of Tra
de
and
Indu
stry
(M
OTI)
Trad
e an
d in
dust
rial d
evel
opm
ent p
olic
y de
velo
pmen
tan
d ad
min
istra
tion
✔✔
✔✔
✔✔
Depar
tmen
t of
Inte
rnal
Tra
de, M
OTI
Polic
y de
velo
pmen
t and
adm
inis
tratio
n on
dom
estic
busi
ness
and
trad
e de
velo
pmen
t, m
anag
emen
t of J
oint
Loan
Boa
rd C
redi
t sch
eme
Stat
utor
y la
w: I
ndus
trial
Lic
ensi
ng A
ct✔
✔✔
✔
Depar
tmen
t of
Weg
hts
and
Meas
ure
s, M
OTI
Adm
inis
tratio
n of
lega
l met
rolo
gy se
rvic
es (s
ervi
cepr
ovid
ed th
roug
h K
EBS)
Stat
utor
y la
w: W
eigh
ts a
nd M
easu
res A
ct✔
✔
Depar
tmen
t of
Indust
ry, M
OTI
Indu
stria
l dev
elop
men
t pol
icy
form
ulat
ion
and
adm
inis
tratio
n, a
dmin
istra
tion
of In
dust
rial
Legi
slat
ion,
indu
stry
-rel
ated
dat
a an
d in
form
atio
nco
llect
ion
and
anal
ysis
Stat
utor
y la
w: I
ndus
trial
Reg
istra
tio A
ct
✔✔
✔
Depar
tmen
t of
Ext
ern
al T
rade,
MO
TI
Trad
e po
licy
guid
ance
and
pro
mot
ion
✔✔
Exp
ort
Pro
motion
Boar
d/C
ent
re f
orB
usi
nes
s In
form
atio
nin
Ken
ya (
CB
IK)
Expo
rt m
arke
t dev
elop
men
t; pr
oduc
t dev
elop
men
t and
adop
tion;
trad
e po
licy
faci
litat
ion;
Afr
ican
trad
ein
surr
ance
serv
ice;
trad
e in
form
atio
n an
d de
liver
yse
rvic
e; d
evel
opm
ent o
f exp
ortin
g sk
ills
Nai
robi
Regi
ster
ed: C
ompa
ny li
mite
d by
gua
rant
ee(C
ompa
ny's
Act
) Sup
ervi
sed
by: M
OTI
,fo
unde
d by
EU
supp
ort i
n 19
98,
✔
Kenya
Inv
est
men
tA
uthority
(KenI
nvest
)
Busi
ness
Info
; mat
ch-m
akin
g; e
vent
faci
litat
ion;
adm
inis
trativ
e as
sist
ance
for i
nves
tors
Nai
robi
and
Eld
oret
Para
stat
al S
tatu
tory
law
: Inv
estm
ent
Prom
otio
n A
ct✔
Ken
ya B
ure
au o
fSta
ndar
ds
(KEB
S)
Prov
isio
n of
labo
rato
ry te
stin
g; st
anda
rd d
evel
opm
ent
and
impl
emen
tatio
n; p
rodu
ct c
ertif
icat
ion;
trai
ning
Nai
robi
, Kis
umu,
Mom
basa
, Eld
oret
,N
akur
u, G
aris
sa a
ndN
i
Stat
utor
y la
w: S
tand
ard
Act
✔✔
✔
Kenya
Ind
ust
rial
Pro
per
ty Ins
titu
te(K
IPI)
Adm
inis
ter i
ndus
trial
pro
perty
righ
ts; t
echn
ical
sevi
ces
rele
vant
to IP
RN
airo
biSt
atut
ory
law
: Ind
ustri
al P
rope
rty A
ct,
Trad
e M
arks
Act
, est
ablis
hed
orig
inal
ly a
sK
enya
Indu
stria
l Pro
perty
Offi
ce, r
e-es
tabl
ishe
d in
200
2✔
Kenya
Ind
ust
rial
Rese
arch
and
Dev
elo
pment
Insu
tite
(KIR
DI)
R&D
(lab
orat
ory
serv
ices
etc
)N
airo
bi a
nd K
isum
uSt
atut
ory
law
: Sci
ence
and
Tec
hnol
ogy
Act
✔✔
Num
eric
al M
achin
gC
om
plex
R&D
(CA
D/C
AM
hum
an re
sour
ce d
evel
opm
ent,
fabr
icat
ion
of m
achi
nery
par
ts, t
ools
etc
)N
airo
biRe
gist
ered
: Com
pany
lim
ited
by sh
are
(Com
pany
's A
ct) S
hare
hol
ders
: Uni
vers
ityof
Nai
robi
and
Ken
ya R
ailw
ay✔
✔
Kenya
Ins
titu
te o
fB
usi
nes
s Tra
inin
g(K
IBT)
Busi
ness
dev
elop
men
t tra
inin
g (m
anag
emen
t,en
trepr
eneu
rshi
p, m
arke
ting)
Nai
robi
Org
anis
atio
n un
der M
OTI
✔✔
Exp
ort
Pro
motion
Zone
Auth
ority
(EPZA
)
Supp
ort t
he in
vest
men
t; Pr
ovis
ion
of b
usin
ess l
ocat
ion;
prov
isio
n of
bus
ines
s lic
ence
s; a
nd su
ppor
t the
oper
atio
n of
the
firm
s in
EPZ
Ath
i Riv
er (H
Q),
Mom
basa
, Nai
robi
and
Nye
ri
Stat
utor
y la
w: E
PZ A
ct
✔✔
✔✔
Kenya
Ind
ust
rial
Est
ate (KIE
)
Fina
ncin
g SM
Es; P
rovi
de th
e la
nd a
nd p
rem
ises
for
SMEs
; tec
hnic
al se
rvic
es a
nd tr
aini
ngN
airo
bi a
nd 3
2 br
anch
es✔
✔✔
✔
Indu
strial
and
Com
mer
cia
lD
evelo
pment
Corp
ora
tion (IC
DC
)
Ven
ture
cap
ital;
corp
orat
e fin
anci
ngN
airo
bi, K
isum
u,M
omba
sa, E
ldor
et,
Nak
uru
etc
✔
Indust
rial
Deve
lopm
ent
B
ank
(ID
B)
✔
Busi
ness
Pre
mis
es
Rent
Tribuna
l
Stat
utor
y la
w: L
and
Lord
and
Ten
ant A
ct,
esta
blis
hed
in 1
965,
a p
art o
f MO
TI✔
Nao
ribi a
nd 2
0 D
istri
ctof
fices
MOTI
MA
PSK
ID
Ann
ex 1
Li
st o
f Sta
keho
lder
s
1-
2
Desc
ription
Locat
ion
Note
Trad
e
Inve
stm
ent
Prom
otion
R&D
Tech
nolo
gyHu
man
Res
ourc
e
Infra
stru
ctur
eLa
nd p
olic
ies
and
zonin
g
Fina
nce
Envir
onm
ent
Busin
ess
oper
atio
n
(lega
l, re
gulat
ion
etc)
Oth
er a
reas
Nam
e o
f O
rgan
isat
ion
MLHRD
Min
istr
y of Lab
our
and H
um
anR
eso
urc
eD
eve
lom
ent
(MLH
RD
)
Polic
y fo
rmul
atio
n an
d ad
min
istra
ion
of e
mpl
oym
ent,
fact
ory
insp
ectio
n an
d w
orkd
ers h
ealth
, ind
ustri
alre
latio
ns, v
ocat
iona
l tra
inin
g, p
rom
otio
n of
self
empl
oym
ent i
n m
icro
and
smal
l ent
erpr
ises
, NSS
F
Stat
utor
y la
ws:
Tra
de D
ispu
tes A
ct,
Regu
latio
n of
Wag
es, C
ondi
tions
of
Empl
oym
ent A
ct, I
ndus
trial
Tra
inin
g A
ct✔
✔✔
Depa
rtm
ent
of M
icro
and
Sm
all
Ente
rprise
sD
eve
lopm
ent,
MLH
RD
Polic
y fo
rmul
atio
n fo
r MSE
sect
or d
evel
opm
ent,
capa
city
bui
ldin
g of
MSE
org
anis
atio
ns (J
ua K
ali
asso
ciat
ions
), pr
ovis
ion
of M
SE o
pera
tion
site
s, as
sist
MSE
s' m
arke
ting
of th
eir p
rodu
cts (
e.g.
, hol
ding
MSE
Exhi
bisi
on)
Nai
robi
, Pro
vinc
ial
Ente
rpris
e D
evel
opm
ent
Offi
ces i
n 7
tow
ns a
ndD
istri
ct E
nter
pris
eD
evel
opm
ent O
ffice
s in
12 to
wns
✔✔
✔
Directo
rate
of
Indu
strial
Tra
inin
g,M
LH
RD
Adm
inis
tratio
n of
Nat
iona
l Ind
ustri
al T
rain
ing
Cou
ncil
and
Indu
stria
l Tra
inin
g Le
vy, c
ertif
icat
ion
of T
rade
Test
Stat
utor
y la
w: I
ndus
trial
Tra
inin
g A
ct✔
Pro
ductivi
ty C
entr
eof Kenya
Trai
ning
s and
info
rmat
ion
diss
emin
atio
n to
pro
mot
epr
oduc
tivity
mov
emen
tN
airo
biTr
ipar
tite
orga
nisa
tion
with
MLH
RD,
FKE,
CO
TU✔
✔
Min
istr
y of Scie
nce
and
Technolo
gy(M
OST)
Polic
y fo
rmul
atio
n an
d ad
min
istra
tion
of th
e ar
ea o
fsc
ienc
e an
d te
chno
logy
, pol
icy
form
ulat
ion/
adm
inis
tratio
n of
tech
nica
l and
voc
atio
nal
train
ing
✔✔
Technic
al T
rain
ing
Inst
itute
s (T
TIs
)
20 lo
catio
nsU
nder
MO
ST✔
Inst
itute
s of
Technolo
gy (IT
s)
20 lo
catio
nsU
nder
MO
ST✔
Nat
ional
Poly
technic
s
Nai
robi
(Ken
ya P
olyt
ech
and
KTT
C),
Mom
basa
,K
isum
u an
d El
dore
t
Und
er M
OST
✔
Nat
ional
Council
of
Scie
nce a
nd
Technolo
gy (
NC
ST)
Polic
y gu
idan
ce fo
r R&
D a
nd sc
ienc
e an
d te
chol
ogy
polic
yN
airo
biSt
atut
ory
law
: Sci
ence
and
Tec
hnol
ogy
Act
✔✔
Min
istr
y of
Fin
ance
(MO
F)
Nat
iona
l bud
get c
oord
inat
ion,
pol
icy
guid
ance
and
adm
inis
tratio
n on
ban
king
, ins
uran
ce a
nd c
apita
lm
arke
t pol
icie
s, pu
blic
pro
cure
men
t, PP
P, M
onop
olie
san
d Pr
ice
Com
mis
sion
✔
Cap
ital
Mar
ket
Aut
hority
(C
MA
)✔
Kenya
Reve
nue
Auth
ority
(KR
A)
Col
lect
ion
of re
venu
e (ta
x, d
uty
exci
se)
✔✔
✔
Min
istr
y of Pla
nnin
gan
d N
atio
nal
Deve
lopm
ent
Nat
iona
l dev
elop
men
t pla
nnin
g, M
&E
of E
RS a
ndot
her e
cono
mic
dev
elop
men
t pol
icie
sN
airo
bi, a
nd D
istri
ctPl
anni
ng O
ffice
r✔
Centr
al B
ure
au o
fSta
tist
ics
(CB
S)
Col
lect
ion
and
man
agem
ent o
f sta
tistic
al d
ata
✔
Kenya
Inst
itute
of
Polic
y R
ese
arch a
nd
Anal
ysis
(KIP
PR
A)
✔
Road
s, pu
blic
bui
ldin
gs✔
✔
Ener
gy p
olic
y de
velo
pmen
t and
adm
inis
tratio
nSt
atut
ory
law
: Ene
rgy
Act
✔✔
✔
Elec
trici
ty d
istri
butio
n/re
taile
rSt
atut
ory
law
: Ene
rgy
Act
✔✔
Wat
er re
sour
ce m
anag
emen
t pol
icy
deve
lopm
ent a
ndad
min
istra
tion
Stat
utor
y la
w: W
ater
Act
✔✔
✔
Envi
ronm
ent p
olic
y, m
inin
g po
licy,
fore
stry
deve
lopm
ent p
olic
ySt
atut
ory
law
: Env
ironm
enta
l Man
agem
ent
and
Co-
ordi
natio
n A
ct,
✔M
inis
try
of Envi
ronm
ent
and
Nat
ura
l R
eso
urc
es
Min
istr
y of R
oad
s an
d P
ublic
Work
s
Min
istr
y of Energ
y
Kenya
Pow
er
& L
ighting
Com
pan
y Ltd
. (K
PLC
)
MOPNDMOFMOSTMLHRD
Min
istr
y of
Wat
er
and
Irriga
tion
MA
PSK
ID
Ann
ex 1
Li
st o
f Sta
keho
lder
s
1-
3
Desc
ription
Loca
tion
Not
e
Trad
e
Inve
stm
ent
Prom
otio
n
R&D
Tech
nolo
gyHu
man
Res
ourc
e
Infra
stru
ctur
eLa
nd p
olic
ies
and
zonin
g
Fina
nce
Envir
onm
ent
Busin
ess
oper
atio
n
(lega
l, re
gulat
ion
etc)
Oth
er a
reas
Nat
iona
l Envi
ronm
ent
Man
agem
ent
Aut
hority
(NEM
A)
Nam
e of
Org
anis
atio
n
Gen
eral
supe
rvis
ion
and
co-o
rdin
atio
n ov
er a
ll th
em
atte
rs re
late
d to
env
ironm
ent
Stat
utor
y la
w a
nd re
gula
tions
:En
viro
nmen
tal M
anag
emen
t and
Co-
ordi
natio
n A
ct, W
ater
Act
, Leg
al N
otic
eN
o.10
1 Th
e En
viro
nem
ntal
Impa
ctA
sses
smen
t and
Aud
it Re
gula
tions
200
3
✔✔
Polic
y gu
idan
ce a
nd a
dmin
istra
tion
on lo
cal
auth
oriti
es, a
dmin
istra
tion
of L
ATF
Stat
utor
y la
w: L
ocal
Gov
ernm
ent A
ct✔
Polic
y de
velo
pmen
t and
adm
inis
tratio
n of
land
pol
icie
san
d ph
ysic
al p
lann
ing,
land
tran
sact
ion
and
regi
stra
tion
Stat
utor
y la
w: L
and
Acq
uisi
tion
Act
✔✔
✔✔
Agr
icul
ture
pol
icie
s✔
✔✔
✔Li
vest
ock
and
fishe
ries P
olic
ies
✔✔
✔✔
✔✔
Qua
lity
assu
ranc
e of
seed
s; p
hyto
sani
tary
test
ing
and
anal
ysis
Nai
robi
, Mom
basa
,El
dore
t and
bor
der p
oint
sU
nder
Min
istry
of A
gric
ultu
re✔
✔
Hea
lth sc
ienc
e re
sear
ch (c
arry
ing
out t
he re
sear
ch,
diss
emin
atio
n of
find
ings
), re
cent
ly e
stab
lishe
dm
anuf
actu
ring
plan
ts in
ord
er to
pro
duce
the
med
ical
prod
ucts
bas
ed o
n th
e re
sear
ch fi
ndin
gs
Stat
utor
y la
w: S
cien
ce a
nd T
echn
olog
y A
ct
✔✔
Qua
lity
assu
ranc
e of
med
icin
eU
nder
Min
istry
of H
ealth
✔Q
ualit
y as
sura
nce
of p
estic
ide
Und
er M
inis
try o
f Agr
icul
ture
✔R&
D, t
rain
ings
Key
uni
vers
ities
: Uni
vers
ity o
f Nai
robi
,M
oi U
nive
rsity
, Ege
rton
Uni
vers
ity,
JKU
AT,
Mas
eno
Uni
vers
ity, W
este
rnU
nive
rsity
Col
lege
of S
cien
ce a
ndTe
chno
logy
, Ken
yatta
Uni
vers
ity
✔✔
Prov
isio
n of
tech
nica
l sup
port
for m
anuf
actu
ring
sect
orfo
r mor
e en
viro
nmen
tally
frie
ndly
pro
duct
ion
met
hods
,N
EMA
's A
utho
rised
Env
ironm
ent A
udito
r
Nai
robi
To b
e es
tabl
ishe
d as
a tr
ust u
nder
MO
TI
✔
Nai
robi
Proj
ect h
oste
d by
KA
M, f
inan
ced
byD
AN
IDA
, to
be e
stab
lishe
d as
the
Nat
iona
lin
stitu
te u
nder
MO
TI✔
Ken
ya P
riva
teS
ecto
r A
llian
ce
(KEP
SA
)
Um
brel
la b
ody
for p
rivat
e se
ctor
org
anis
atio
ns, p
olic
yad
voca
cyN
airo
biEs
tabl
ishe
d in
200
3. C
ompo
sed
ofIn
stitu
tiona
l mem
bers
, ass
ocia
tion
mem
bers
and
cor
pora
te m
embe
rs✔
✔
Ken
ya A
ssoci
atio
n o
fM
anufa
ctu
rers
(KA
M)
Prov
isio
n of
serv
ices
to se
rve
for t
he c
omm
on in
ters
t of
man
ufac
ture
rsN
airo
bi, N
akur
u,M
omba
sa a
nd K
isum
uEs
tabl
ishe
d in
195
9. 5
25 m
embe
rs a
rere
gist
ered
at p
rese
nt✔
✔
Keny
a C
ham
ber
of
Com
mer
ce a
nd
Indus
trie
s
Prov
isio
n of
serv
ices
to se
rve
for t
he c
omm
on in
ters
t of
man
ufac
ture
rs, i
ssue
ing
the
certi
ficat
e of
orig
ine
Nai
robi
Regi
ster
ed: C
ompa
ny li
mite
d by
gua
rant
ee(C
ompa
ny's
Act
), 68
bra
nche
s, 15
00m
embe
rs✔
✔
Fed
erat
ion o
fKeny
an E
mpl
oyer
s(F
KE)
Prov
isio
n of
serv
ices
in th
e ar
ea o
f ind
ustri
al re
latio
ns,
cons
ulta
ncy,
trai
ning
and
adv
ocac
yN
airo
bi, K
isum
u,M
omba
sa a
nd N
akur
uRe
gist
ered
: Tra
de U
nion
s Act
, fou
nded
in19
59✔
Keny
a B
usi
ness
Cou
ncil
Mem
ber b
ased
org
anis
atio
n fo
r bus
ines
s sec
tor.
Act
s as
advo
cacy
and
und
erta
kes l
obby
ing.
Est
ablis
hed
in20
02.
Nai
robi
Hire
d fu
ll-tim
e se
cret
aria
t rec
ently
.C
urre
ntly
bas
ed in
FK
E✔
✔
Eas
tern
Afr
ica
Ass
oci
atio
n
Prov
idin
g bu
sine
ss in
form
atio
n an
d po
licy
advo
cacy
on
beha
lf of
fore
ign
inve
stor
sN
airo
bi (o
ffice
s and
foca
lpo
ints
in o
ther
Eas
tA
fric
an c
ount
ries s
uch
asU
gand
a an
d Ta
nzan
ia)
270
fore
ign
inve
stor
s (w
ho h
as su
bsta
ntia
lop
erat
iona
l bas
e in
out
side
of t
he c
ount
ry.)
✔✔
Keny
a In
stitut
e of
Man
agem
ent
(KIM
)
Prov
isio
n of
con
sulta
ncy
for m
anag
emen
t iss
ues,
train
ings
on
the
vario
us m
anag
eria
l sub
ject
s,in
form
atio
n pr
ovis
ion
on th
e go
od m
anag
emen
tpr
actic
es
11 c
itiie
s in
natio
n-w
ide
✔✔
✔
Nat
ional
Cle
aner
Pro
duction
Cent
re
Cen
ter
for
Ener
gy E
ffic
ienc
yan
d C
ons
erv
atio
n
Private Sector Organisations
Ken
ya M
edic
al R
ese
arch
Inst
itute
(KEM
RI)
Phar
mac
eutical
and
Poi
son
Pest
Cotr
ol B
oard
Uni
vers
itie
s
Min
istr
y of
Agr
icul
ture
Min
istr
y of
Liv
est
ock
and
Fis
heries
Deve
lopm
ent
Ken
ya A
gric
ultu
re R
ese
arch
Inst
itut
e (K
AR
I)
Ken
ya P
lant
Hea
lth
Insp
ectr
ate S
erv
ice
Nat
iona
l Envi
ronm
ent
Man
agem
ent
Aut
hority
(NEM
A)
Min
istr
y of Loc
al G
overn
ment
Min
istr
y of Lan
ds
and
Hous
ing
MA
PSK
ID
Ann
ex 1
Li
st o
f Sta
keho
lder
s
1-
4
Desc
ription
Locat
ion
Note
Trad
e
Inve
stm
ent
Prom
otio
n
R&D T
echn
olog
yHum
an R
esou
rce
Infra
stru
ctur
eLa
nd p
olic
ies
and
zonin
g
Fina
nce
Envir
onm
ent
Busin
ess
oper
atio
n
(lega
l, re
gulat
ion
etc)
Oth
er a
reas
Nam
e o
f O
rgan
isat
ion
Private SectorOrganisations
Inst
itute
of
Cert
ifie
dP
ubl
ic A
ccounta
nt
of
Kenya
(IC
PA
K)
Mem
ber o
rgan
isat
ion
of p
ract
icin
g C
PAs,
sem
i-st
atut
ory
body
for a
ccou
ntin
g, c
usto
dian
of t
he C
ode
ofEt
hic,
trai
ning
s and
pol
icy
advi
sory
rele
vant
toco
rpor
ate
sect
or re
gula
tions
Stat
utor
y la
w: A
ccou
tant
s Act
. It i
sm
anda
tory
to b
e a
mem
ber o
f IC
PAK
for
prac
ticin
g C
PAs (
2700
mem
bers
)✔
✔
Mar
keting
Socie
ty o
fKenya
(M
SK)
Mem
ber-
base
d or
gani
satio
n fo
r mar
ketin
gpr
actic
ione
rs, b
oth
indi
vidu
als a
nd c
orpo
rate
mem
bers
✔
Kenya
Ban
kers
'A
ssocia
tion
✔
Ass
ocia
tion o
f Kenya
Insu
rers
✔
Kenya
Moto
rIn
dust
ry A
ssoc
iation
(KM
I)
Lobb
ying
and
har
mon
isat
ion
of is
sues
rele
vant
for t
hem
embe
rsTh
e m
embe
rs in
clud
e as
sem
bler
s, su
pplie
rsof
par
ts, a
nd im
porte
rs/re
taile
rs. T
heor
gani
satio
n is
not
regi
ster
ed fo
rmal
ly.
✔
Kenya
Fis
hExp
ort
ers
and
Pro
cess
ors
Ass
ocia
tion
Qua
lity
cont
rol a
nd h
arm
onis
atio
n, tr
aini
ng fo
r qua
lity
cont
rol,
polic
y ad
voca
cy, r
esea
rche
s and
info
rmat
ion
shar
ing,
infr
astru
ctur
e de
velo
pmen
t for
fish
ing
Nai
robi
and
Kis
umu
MO
U w
ith th
e M
inis
try o
f Liv
estc
ok a
ndFi
sher
y✔
Kenya
IC
TK
EPSA
affi
liate
Com
pute
r S
ocie
ty o
fKenya
✔
Phar
mac
eutical
Socie
ty o
f Kenya
✔
Agr
ochem
ical
sA
ssocia
tion o
f Kenya
(KEN
YA
)✔
Petr
ole
um
Inst
itute
of Eas
t A
fric
a (P
IEA
)
Gro
up o
f com
pani
es in
pet
role
um a
nd p
etro
-rel
ated
indu
stry
for p
rom
otio
n of
pet
ro-r
elat
ed e
nter
pris
es in
Ken
ya✔
Com
merc
ial B
anks
✔M
icro
finan
ce
✔
Nai
robi S
tock
Exc
han
ge✔
Accounting
firm
s✔
PrivateSectorServicePrivate Sector Organisations
Private SectorOrganisations
Annex 2 List of Supporting Organisations
MA
PSK
ID
Ann
ex 2
Li
st o
f Sup
porti
ng O
rgan
isat
ions
2-
1
Ser
vices
Loc
atio
nN
ote
Mar
ketin
g
Mar
ket a
ndbu
sines
sin
form
atio
n Human Re
sour
ce
Deve
lopm
ent In
frast
ruct
ur e
R&D
TECH In
form
atio
n
Fina
nce
Man
agem
ent
Advis
ory
Adm
in Supp
ort
Oth
er serv
ices
Nam
e of Suppo
rtin
gIn
stitution
MOTI
Depa
rtm
ent
of
Inte
rnal
Tra
de,M
OTI
Polic
y de
velo
pmen
t and
adm
inis
tratio
n on
dom
estic
bus
ines
s and
trad
e de
velo
pmen
t,m
anag
emen
t of J
oint
Loa
n Bo
ard
Cre
dit
sche
me
Stat
utor
y la
w: I
ndus
trial
Lice
nsin
g A
ct
✔✔
✔✔
Exp
ort
Pro
motion
Boa
rd/C
entr
e fo
rB
usi
nes
s In
form
atio
nin
Keny
a (C
BIK
)
Expo
rt m
arke
t dev
elop
men
t; pr
oduc
tde
velo
pmen
t and
ado
ptio
n; tr
ade
polic
yfa
cilit
atio
n; A
fric
an tr
ade
insu
rran
ce se
rvic
e;tra
de in
form
atio
n an
d de
liver
y se
rvic
e;de
velo
pmen
t of e
xpor
ting
skill
s
Nai
robi
Regi
ster
ed: C
ompa
ny li
mite
dby
gua
rant
ee (C
ompa
ny's
Act
)Su
perv
ised
by:
MO
TI,
foun
ded
by E
U su
ppor
t in
1998
✔✔
✔
Kenya
Inv
est
ment
Aut
hor
ity
(KIA
)
Busi
ness
Info
; mat
ch-m
akin
g; e
vent
faci
litat
ion;
adm
inis
trativ
e as
sist
ance
for
inve
stor
s
Nai
robi
and
Eld
oret
Para
stat
al S
tatu
tory
law
:In
vest
men
t Pro
mot
ion
Act
✔✔
Ken
ya B
ureau
of
Sta
ndar
ds
(KEB
S)
Labo
rato
ry te
stin
g; st
anda
rd d
evel
opm
ent
and
impl
emen
tatio
n; p
rodu
ct c
ertif
icat
ion;
train
ing
Nai
robi
, Kis
umu,
Mob
asa,
Eld
red,
Nak
uru,
Gar
issa
and
Nye
ri
Stat
utor
y la
w: S
tand
ard
Act
✔✔
✔
Ken
ya Ind
ust
rial
Pro
pert
y In
stitute
(KIP
I)
Adm
inis
ter i
ndus
trial
pro
perty
righ
ts;
tech
nica
l sev
ices
rele
vant
to IP
RN
airo
biSt
atut
ory
law
: Ind
ustri
alPr
oper
ty A
ct, e
stab
lishe
dor
igin
ally
as K
enya
Indu
stria
lPr
oper
ty O
ffice
, re-
esta
blis
hed
in 2
002
✔
Ken
ya Ind
ust
rial
Res
ear
ch a
nd
Deve
lopm
ent
Insu
tite
(KIR
DI)
R&D
(lab
orat
ory
serv
ices
etc
)N
airo
bi a
nd K
isum
uSt
atut
ory
law
: Sci
ence
and
Tech
nolo
gy A
ct✔
✔✔
Num
eric
al M
achin
gC
om
plex
R&D
(CA
D/C
AM
hum
an re
sour
cede
velo
pmen
t, fa
bric
atio
n of
mac
hine
ry p
arts
,to
ols e
tc)
Nai
robi
Regi
ster
ed: C
ompa
ny li
mite
dby
shar
e (C
ompa
ny's
Act
)Sh
are
hold
ers:
Uni
vers
ity o
fN
airo
bi a
nd K
enya
Rai
lway
✔✔
✔
Kenya
Inst
itute
of
Busi
ness
Tra
inin
g(K
IBT)
Busi
ness
dev
elop
men
t tra
inin
g(m
anag
emen
t, en
trepr
eneu
rshi
p, m
arke
ting)
Nai
robi
Org
anis
atio
n un
der M
OTI
✔✔
Exp
ort
Pro
mot
ion
Zon
e A
uth
ority
(EPZA
)
Supp
ort t
he in
vest
me;
Pro
visi
on o
f bus
ines
slo
catio
n; p
rovi
sion
of b
usin
ess l
icen
ces;
and
supp
ort t
he o
pera
tion
of th
e fir
ms i
n EP
Z
Ath
i Riv
er (H
Q),
Mom
basa
, Nai
robi
and
Nye
ri,
Stat
utor
y la
w: E
PZ A
ct
✔
✔
Ken
ya Ind
ust
rial
Est
ate (KIE
)
Fina
ncin
g SM
Es; P
rovi
de th
e la
nd a
ndpr
emis
es fo
r SM
Es; t
echn
ical
serv
ices
and
train
ing
Nai
robi
and
32
bran
ches
✔✔
✔
MOTI
MA
PSK
ID
Ann
ex 2
Li
st o
f Sup
porti
ng O
rgan
isat
ions
2-
2
Serv
ices
Locat
ion
Note
Mar
ketin
g
Mar
ket a
ndbu
sines
sinf
orm
atio
n Hum
an Reso
urce
Deve
lopm
ent In
frast
ruct
ur e
R&D
TECH In
form
atio
n
Fina
nce
Man
agem
ent
Advis
ory
Adm
in Supp
ort
Oth
er serv
ices
Nam
e o
f Suppor
ting
Inst
itut
ion
MOTIIn
dust
rial
and
Com
merc
ial
Deve
lopm
ent
Corp
orat
ion (IC
DC
)
Ven
ture
cap
ital;
corp
orat
e fin
anci
ngN
airo
bi, K
isum
u,M
omba
sa, E
ldor
et,
Nak
uru
etc
✔
Indust
rial
Deve
lopm
ent
Ban
k(ID
B)
✔
Bus
iness
Pre
mis
esR
ent
Tribunal
Stat
utor
y la
w: L
and
Lord
and
Tena
nt A
ct, e
stab
lishe
d in
1965
, a p
art o
f MO
TI✔
Pro
ductivi
ty C
entr
eof Ken
ya
Trai
ning
s and
info
rmat
ion
diss
emin
atio
n to
prom
ote
prod
uctiv
ity m
ovem
ent
Nai
robi
Trip
artit
e or
gani
satio
n w
ithM
oLH
RD, F
KE,
CO
TU✔
✔
Directo
rate
of
Indust
rial
Tra
inin
g,M
LH
RD
Adm
inis
tratio
n of
Nat
iona
l Ind
ustri
alTr
aini
ng C
ounc
il an
d In
dust
rial T
rain
ing
Levy
, cer
tific
atio
n of
Tra
de T
est
Stat
utor
y la
w: I
ndus
trial
Trai
ning
Lev
y A
ct
✔
Polic
yfo
rmula
tion,
regu
lart
ory
bod
y fo
rin
dust
rial
trai
nin
g,cer
tificat
ion
Depar
tment
of M
icro
and S
mal
lEnte
rprise
sD
eve
lopm
ent
,M
LH
RD
Polic
y fo
rmul
atio
n fo
r MSE
sect
orde
velo
pmen
t, ca
paci
ty b
uild
ing
of M
SEor
gani
satio
ns (J
ua K
ali a
ssoc
iatio
ns),
prov
isio
n of
MSE
ope
ratio
n si
tes,
assi
stM
SEs'
mar
ketin
g of
thei
r pro
duct
s (e.
g.,
hold
ing
MSE
Exh
ibis
ion)
Nai
robi
, out
reac
h:Pr
ovin
cial
Ent
erpr
ise
Dev
elop
men
t Offi
ces i
n7
tow
ns, D
istri
ctEn
terp
rise
Dev
elop
men
t Offi
ces i
n12
tow
ns
✔✔
Polic
yfo
rmul
atio
nfo
r M
SE
deve
lopm
en
t, M
SE
org
anis
atio
ndeve
lopm
en
t
Prom
otio
n of
R&
D, p
rovi
sion
of f
unds
for
pilo
ting
rese
arch
find
ings
Nai
robi
Und
er th
e Sc
ienc
e an
dTe
chno
logy
Act
✔✔
✔
R&D
, hum
an re
sour
ce d
evel
opm
ent
Nat
iona
l Uni
vers
ities
:Nai
robi
,M
asen
o, E
gerto
n✔
✔
Qua
lity
assu
ranc
e of
seed
s; p
hyto
sani
tary
test
ing
and
anal
ysis
Nai
robi
, Mom
basa
,El
dore
t and
bor
der
poin
ts✔
Qua
lity
assu
ranc
e of
med
icin
eU
nder
Min
istry
of H
ealth
✔
Qua
lity
assu
ranc
e of
pes
ticid
eU
nder
Min
istry
of A
gric
ultu
re✔
ISO
Cer
tific
atio
nM
ultin
atio
nal I
SOce
rtific
atio
nag
entIS
O90
001:
2000
,IS
O14
001:
2004
(e.g
., BV
QI
Ken
ya, S
GS
Ken
ya).
✔
Tec
hnic
al T
rain
ing
Inst
itute
s
TIV
ET20
loca
tions
Und
er M
inis
try o
f Sci
ence
and
Tech
nolo
gy✔
Inst
itute
s of
Technol
ogy
TIV
ET20
loca
tions
✔
Kenya
Pla
nt
Heal
thIn
spec
trat
e S
erv
ice
Phar
mac
eutical
and P
oiso
nB
oar
d
Pest
Cotr
ol B
oar
d
ISO
Cert
ific
atio
n A
ssess
ors
MOTI MLHRD
Nat
iona
l C
ounc
il of Scie
nce
and T
echnol
ogy
(N
CST)
Kenya
Text
ile T
rain
ing
Inst
itute
(KTTI)
Univ
ers
itites
TIVET
MA
PSK
ID
Ann
ex 2
Li
st o
f Sup
porti
ng O
rgan
isat
ions
2-
3
Serv
ices
Locat
ion
Note
Mar
ketin
g
Mar
ket a
ndbu
sines
sin
form
atio
n Hum
an Reso
urce
Deve
lopm
ent In
frast
ruct
ur e
R&D
TECH In
form
atio
n
Fina
nce
Man
agem
ent
Adviso
ry
Adm
in Supp
ort
Oth
er serv
ices
Nam
e o
f Suppor
ting
Inst
itution
TIVET
Nat
ional
Pol
ytechnic
s
TVET
Nai
robi
(Ken
yaPo
lyte
ch a
nd K
TTC
),M
omba
sa, K
isum
u an
d✔
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rtific
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ustri
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ons A
ct,
foun
ded
in 1
959
✔✔
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dis
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ll-tim
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advo
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and
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mon
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rele
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for t
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e m
embe
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clud
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sem
bler
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pplie
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f par
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. The
orga
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gist
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form
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ith th
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try o
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vest
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and
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✔✔
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ch
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te S
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otor
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xpor
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ex 2
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st o
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rgan
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2-
4
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Locat
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Mar
ket a
ndbu
sines
sin
form
atio
n Human Re
sour
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Deve
lopm
ent In
frast
ruct
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form
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ica
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airo
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ffice
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ican
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ch a
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and
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stan
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out
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ount
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vocac
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rgan
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arke
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sear
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ivid
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and
corp
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te m
embe
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merc
ial B
anks
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tion o
f Kenya
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rers
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)✔
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kers
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ract
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sem
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ody
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regu
rato
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ism
✔✔
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for m
anag
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, tra
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subj
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itiie
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ect,
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olu
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itute
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ert
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keting
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fKenya
Kenya
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itute
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agem
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tern
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ica
Ass
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tion
Financial sector
Annex 3 Questionnaire for the Cluster Analysis
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-1
Version 6 June, 2006
Date : Consultant Name
:
Company Name : Sub-sector : Address : TEL : FAX : E-mail :
1. About the Interviewee (If he is the owner, skip this section.) (1) Name : (2) Position : (3) The year
joined in the company
:
2. Outline of the company (1) Establishment : Year ( ） (2) The owner type : a. government: ( )
b. foreign: country ( ) c. Asian-Kenyan: country ( ) d African-Kenyan
(3) The owner 1) name: 2) education background: 3) career background:
(4) Latest Annual Sales
: ( ) million Ksh in Year ( )
(5) Production Cost 1) parts and material :( )million Ksh in Year ( ) 2) outsourcing :( )million Ksh in Year ( )
3. Identifying the Products and Market Position (1) Top 3 products
Production volume
per month
Sales domestic markets
Share exports
Destination of exports
1)( ) ( ) ( )% （ )% ( ) 2)( ) ( ) ( )% （ )% ( ) 3)( ) ( ) ( )% （ )% ( )
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-2
(2) Market Position of the Product 1) (the main product) Domestic
Exported Location
（ ） 1) Your company No. ( ) Share( )%
5) Your company a. growing b. steady c . declining
2) No. 1 Company ( ) Share ( )%
6) No. 1 Country ( ) Share ( )%
3) No. 2 Company ( ) Share ( )%
7) No.2 Country ( ) Share ( )%
4) No. 3 Company ( ) Share ( )%
8) No. 3 Country ( ) Share ( )%
4. Conditions of the Final Market (1) Changes in the domestic market (trend)
1) Price : a. higher b. same c. lower 2) Cost : a. higher b. same c. lower 3) Quality : a. higher b. same c. lower 4) Scale (Volume) : a. bigger b. same c. smaller 5)Market competition : a. high b. modest c. low
(2) Changes in the regional market (Africa) 1) Price : a. higher b. same c. lower 2) Cost : a. higher b. same c. lower 3) Quality : a. higher b. same c. lower 4) Scale (Volume) : a. bigger b. same c. smaller
(3) Effects from the imported goods 1) Trend : a. big b. small c. none
2) if the effect is big, a. Country of origin : ( )
b. the reasons (multiple selections)
: a. price b. quality c. marketing strategy
5. Conditions of the forward linkages, or final makers / assemblers * This question is to be asked only to the companies producing the semi-products.
Trend of the Demand Products of the Final Makers
Origins of Buyers
No. of buyers for this
company
Price Quality Volume
1)( ) ( ) ( ) a. high b. middle c. low
a. high b. middle c. low
a. big b. middle c. small
2)( ) ( ) ( ) a. high b. middle c. low
a. high b. middle c. low
a. big b. middle c. small
3)( ) ( ) ( ) a. high b. middle c. low
a. high b. middle c. low
a. big b. middle c. small
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-3
6. Identifying the Backward Linkages (1) Outsourcers
Process, Goods (not company name)
Locations of suppliers No. of Suppliersfor this
company
Availability as a whole
1)( ) ( ) ( ) a. many b. enough c. limited
2)( ) ( ) ( ) a. many b. enough c. limited
3)( ) ( ) ( ) a. many b. enough c. limited
4)( ) ( ) ( ) a. many b. enough c. limited
5)( ) ( ) ( ) a. many b. enough c. limited
(2) Raw material (including those which are indirectly procured)
Raw Material (not company name)
Origins of Production
Price Quality Volume
1) ( ) ( ) a. high b. middlec. low
a. high b. middle c. low
a. big b. middle c. small
2) ( ) ( ) a. high b. middlec. low
a. high b. middle c. low
a. big b. middle c. small
3) ( ) ( ) a. high b. middlec. low
a. high b. middle c. low
a. big b. middle c. small
4) ( ) ( ) a. high b. middlec. low
a. high b. middle c. low
a. big b. middle c. small
5) ( ) ( ) a. high b. middlec. low
a. high b. middle c. low
a. big b. middle c. small
7. Labour conditions (1) Full-time employees
Number of
employees
Required qualification
1) Managers ( ) 2) Skilled workers ( ) 3) Unskilled workers ( )
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-4
(2) Part-time employees Number of
employees Average duration of employment
per person per year 1) Skilled workers ( ) ( ) months 2) Unskilled workers ( ) ( ) months
(3) Average salary of full-time employees Full Time Part Time Skilled workers 1) ( ) Ksh/month 2) ( )Ksh/monthUnskilled workers 3) ( ) Ksh/month 4) ( )Ksh/month
8. Productivity Control (Include cost management and delivery management)
(1) Measurement index of productivity
a.Quantity ( ) b.Production speed ( ) c.ProductionCost ( ) d.Others( )
(2) Main method for productivity control
(3) Manual for production control : a. yes b. no
Facility Quantity
( ) ( )
( ) ( )
( ) ( )
( ) ( )
(4) Main production facility
( ) ( )
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-5
9. Quality Control (1) Measurement index of quality a.Performance ( )
b.Defection rate ( ) c.Others( )
(2) Main method for quality control
(3) Manual for quality control : a. yes b. no (4) Standards to be followed :
10. Investment Strategy: type of investment planned in 5 years (multiple answers)
Location a. expansion of domestic sales channels ( ) b. expansion of foreign sales channels ( ) c. expansion of production facility at
existing factories ( )
d. establishing new factories in Kenya ( ) e. establishing new factories abroad ( )
11. Strategy and structure of the Sub-sector (1) Openness to new investors : a. open b. modest c. closed (2) Member of associations?
1) a. yes (name: ) ↓
b. no ↓
2) In what way are they active? (multiple answers) a. policy advocating b. information delivery c. joint procurement d. joint marketing e. technology upgrade f. credit g. savings h. training i. others ( )
3) Why not joining associations? ( )
12. Identifying importance of infrastructure (only for relevant infrastructure)
Required improvement Usage volume per month
(1) Electricity : ( ) kw (2) Water : ( ) kl (3) Transportation 1) road:
2) train:
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-6
3) air: 4) ship: 5) others:
(4)Telecommunication 1) telephone/fax: 2) Internet:
(5)Others ( )
MAPSKID Annex 3 Questionnaire for the Cluster Analysis
3-7
13. BDS Providers (1) What are the major difficulties or obstacles for your company? （multiple answers)
a. ( ) Severe market competition b. ( ) Lack of information for market expansion c. ( ) Lack of information for technological upgrading d. ( ) Obtaining better material/parts/components e. ( ) Keeping quality standards / upgrading productivity f. ( ) Labor issues and quality g. ( ) Cost increase of h. ( ) Tax / administrative system i. ( ) Insufficient infrastructures (Roads, Electricity, Water-supply, etc.) j. ( ) Others ( ) (2) How does your company try to
overcome the problems mentioned above? (multiple answers)
(3) Does your company require any improvement regarding this?
a. ( )
Information gathering by yourself ( )
b. ( )
Utilising consultants ( )
c. ( )
Obtaining loan ( )
d. ( )
Utilising outside training opportunities( )
e. ( )
Participating in exhibitions ( )
f. ( )
Making allies with other enterprises ( )
g. ( )
Utilising the services offered by the public institutions ( )
h. ( )
Utilising the services offered by the private institutions ( )
i. ( )
Others ( )
j. ( )
None→ Reason
14. Any requests to the government and the Study Team for industrial development?
Thank you very much
Annex 4 Related Organisations
MAPSKID Annex 4 Related Organisations
4-1
Institute Industrial Development Bank Capital Ltd. (IDBC) Date of Establishment 1973 Mandate to provide medium and long-term finance and accompanying
financial and corporate advisory services to medium and large-scale industrial enterprises; and provision of working capital, machinery and finance
Services • Short-term working capital financing • Bridging finance • Export / import financing • Letters of credit • Management and consultancy services • Financial advisory services • Guarantees and indemnities • Asset finance/ lease • Contract financing
Main Office Nairobi Institute Industrial and Commercial Development Corporation (ICDC) Date of Establishment 1954 Governing Law Industrial and Commercial Development Act (CAP 445, 1955) Mandate to provide finance and equity capital for expansion and development
of new and existing medium size private-sector industrial and commercial enterprises in Kenya
Services • Corporate finance • Venture / equity capital • Small and medium loans • Management support services
Main Office Nairobi Branches Nakuru, Machakos, Eldoret, Nyeri, Meru, Kisii, Kakamega, Kisumu,
Mombasa
Institute Export Promotion Council (EPC) Date of Establishment 1992 Mandate To develop and promote Kenya’s exports of goods and services and
harmonise export related activities Services • Export market development
• Product development and adaptation • Trade information & delivery services • Trade policy facilitation • Development of exporting skills • African trade insurance services
Main Office Nairobi Branches JKIA (Nairobi), Eldoret, and Mombasa
MAPSKID Annex 4 Related Organisations
4-2
Institute Kenya Industrial Estates Limited (KIEL) Date of Establishment 1967 Governing Law the Companies Act (CAP 486) Mandate to support entrepreneurship and indigenous enterprise development Services • Lending
• Property and asset management • Business Development Service (BDS)
Main Office Nairobi Branches Voi, Nakuru, Kericho, Kisumu, Mombasa, Eldoret, Meru, Kakamega,
Kabarnet, Nyeri, Kitui, Embu, Machakos, Kisii, Bungoma, Thika, Sultan Hamud, Malindi, Murang'a, Garrisa
Institute Kenya Bureau of Standards (KEBS) Date of Establishment 1974 Governing Law the Standards Act (Cap 496, 1974) Mandate to develop and enforce the standards of industrial products Services • Standards Development
• Testing • Metrology • Implementation of Standards in commerce and industry • Accreditation • Certification • Inspection of imports and local products
Number of Personnel 746 (as of April 2005) Main Office Nairobi Branches Mombasa, Nakuru, Kisumu, Nyeri, Garissa, Eldoret, Namanga,
Bussia, Malaba, Isebania, Institute Kenya Industrial Research and Development Institute (KIRDI) Date of Establishment 1979 (formerly started in 1942 as a central laboratory) Governing Law the Science & Technology Act (CAP 250, 1979) Mandate to conduct research and development in all industrial and allied
technologies, including mechanical, civil, electronics, chemical engineering, energy, environment, and commodity technologies
Services • Research and development (engineering, food technology, leather and textile, mineral resources,
ICT, etc.) • Commercial services • Business development and planning
Main Office Nairobi Branches Kisumu
MAPSKID Annex 4 Related Organisations
4-3
Institute Kenya Investment Authority (KenInvest) Date of Establishment 2004 (Transformed from the Investment Promotion Centre,
established in 1986) Governing Law the Investment Promotion Act (No. 6 of 2004) Mandate to promote local and foreign investments in Kenya by providing
information on opportunities, policies, incentives, and procedures Services • Information on investing in Kenya.
• Assistance in the identification of investment opportunities • Identification of joint venture partners. • Appraisal and approval of investment projects • Assistance in timely acquisition of necessary licenses, clearances and permits
Main Office Nairobi Branches Eldoret Institute Numerical Machining Complex Ltd. (NMC) Date of Establishment 1994 (formerly started as a project in 1986) Mandate to manufacture metallic components and other industrial products Services • Manufacturing of mould, die, casting
• Manufacturing of metallic components • Training in CAD
Number of Personnel 57 (as of 2006) Main Office Nairobi Institute Kenya Industrial Property Institute (KIPI) Date of Establishment 2002 Governing Law The Industrial Property Act (Chapter 3 of 2001) Mandate to administer Industrial Property Rights (IPR); to provide
technological information and training in IPR; and to promote inventiveness and innovativeness
Services • Administer industrial property rights (i.e. patents, trade marks, utility models, and industrial designs)
• Providing technological information to the public • Provide training on industrial property.
Main Office Nairobi
MAPSKID Annex 4 Related Organisations
4-4
Institute Export Processing Zones Authority (EPZA) Date of Establishment 1990 Governing Law Export Processing Zones Act (CAP 517, 1990) Mandate to catalyse industrial and economic development through investments
in Economic Zones Services (i) Pre-investment services
• Provision of information and legal advice to investors • Granting of appropriate EPZ Enterprise licences, EPZ
Developer/operator Licences • Liaison with other government agencies for the issuance of
additional Licences (ii) Post-investment services • Approval of building plans within public zones and liaising with
local authorities in approving plans in the case of private zones • One stop facilitation of operating investors including customs and
immigration requirements • Industrial relations and dispute resolution for enterprises • Technical services in the area of waste management and
maintenance of acceptable environmental standards within public zones
• Management of public zones • Provision and maintenance of zone infrastructure • Facilitation of linkages between EPZ investors and providers of
goods and services in the domestic territory Main Office Athi River Branches Mombasa Institute Kenya Wine Agencies Ltd. (KWAL) Mandate to produce and distribute wines and spirits in Kenya and beyond Services Manufacturing of wines and spirits Main Office Nairobi Institute East Africa Portland Cement Company (EAPCC) Date of Establishment 1933 Mandate To manufacture and market quality cement and cement products to the
satisfaction of our customers Services Manufacturing of cements Main Office Athi River Institute Kenya National Trading Corporation Ltd. (KNTC) Date of Establishment 1965 Governing Law The State Corporations Act (CAP 466 in 1986) Mandate to distribute essential goods across the country Services Distribution of sugar, rice, wheat, maize, etc. Main Office Nairobi
MAPSKID Annex 4 Related Organisations
4-5
Institute Kenya Institute of Business Training (KIBT) Mandate to provide entrepreneurial development services to MSMEs Services • Training for the craft and diploma courses
• Training in short-term technical courses Number of Personnel 32 Main Office Nairobi Institute Kenya Industrial Training Institute (KITI) Date of Establishment 1965 Mandate To provide industrial and entrepreneurship skill training for
investment and employment creation Services • Training for the craft and diploma courses
• Training in short-term technical courses Number of Personnel 55 Main Office Nakuru
Annex 5 Result of the Cluster Analysis
MAPSKID Annex 5 Result of the Cluster Analysis
5-1
1) Food and beverage This sub-sector is showing the strongest potential in the diamond model analysis because of the favourable status of demand and factor conditions. The domestic demand for food and beverages is steadily growing, and products developed for the domestic market are also exportable to the neighbouring countries. While the domestic market prefers reasonably priced products, some export markets demand high quality products. Some companies undertake production of food and chemical by-products from the same agro-product. A popular example is cooking oil and soap. For such a large size and product diversification in demand, various types of manufacturers can enjoy operating in this sub-sector. Moreover, this sub-sector is most active across the country, utilising local resources. Although not all the visited companies rely on domestic materials, there is much more potential for exploiting domestic agro products. Backed by the growing market, enterprises show positive stance towards investment. Although competition from the imported products is getting severe for canned and bottled foods, which last longer, local enterprises are working in an effort to compete against them in price and quality. Potentialities of this sub-sector can also be observed through the width of supporting industries. Supporting industries among the sample enterprises include paper and plastic containers, bottle case, glue for paper labelling and ink for packaging. These supporting industries are enjoying growing demand conditions of the food processing sub-sector. On the other hand, the weakness of this sub-sector is low institutional collaboration between the farmers and the manufacturers. Supply volumes of raw products are not stable because farmers are switching into more productive income activities. Collaboration between the Ministry of Agriculture and the Ministry of Trade and Industry needs to be strengthened. Moreover, enterprises targeting at the export markets have to follow sanitary requirement such as "Good Manufacturing Practice", which motivates the enterprises to go into some level of automation.
Figure A-1 Diamond Model of the Food and Beverage Sub-sectors
Related and Supporting Industries
(paper and can containers, glue for labels, bottle case
and ink for packaging)
S Growing demand S Wide variation in quality demanded:
domestic demand takes preference to reasonably priced products while the markets abroad have demand for high quality products.
W Competition from imported products
S Motivation for further investment S Motivation for exports S Some companies are producing both food and
chemical products from the same raw material.△Competition from the imported products. △Sanitary requirements are motivating exporting
enterprises to some level of automation.
S Some companies undertake farming.O Potentials for full utilisation of
agro-products T Fluctuation in production volume of
raw materials caused by droughts T Dwindling farm sizes
S Existence of various supporting and related industries
S Domestic retail network supplying products throughout the country
S Support from KARI and KIRDI S Access to accredited laboratories; i.e. KEPHIS
and KEBS W Collaboration with the Ministry of Agriculture
is still weak.
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat), △ (neutral, but influential) Source: The JICA Study Team and Workshop Presentation Paper of Group 3 on 28 June, 2006
MAPSKID Annex 5 Result of the Cluster Analysis
5-2
2) Textile (Sisal) Sisal textile sub-sector utilises local agro-products. This sub-sector has vertical integration from agro products, then to production of fibre and finished products such as sisal strings, sisal bags for grain packaging and sisal designed bags. Such vertical integration should be taken as important in terms of income generation across farmers, artisans, unskilled workers and labourers in the remote areas. Sisal products are targeting both domestic and export markets, and designed bags are popular souvenir products. Although the demand conditions are good, supply of sisal is low. The sisal plants have become old, but farmers do not have funds to replant. Enterprises targeting export markets of fashion bags are aggressive in design improvement. However, enterprises producing low value-addition products such as strings and grain containers suffer from underproduction and shortages of working capital.
Figure A-2 Diamond Model of the Sisal Textile Sub-sectors
Related and Supporting Industries
S Steady demand S Sisal handbags are popular
souvenir products and are exported abroad.
S Fashion bags producers have become conscious of design improvement.
W Companies producing low value-addition products such as fibres and grain containers suffer from shortages in operation funds.
S Sisal is a popular crop in Kenya. It is a drought resistant crop. W Shortage of supply caused by
aged sisal, which has to be replanted.
W Factories located near sisal farms do not have telephone lines nor all weather roads, at least S Sisal Policy Paper has been produced by the
Ministry of Agriculture. W No financial assistance to farmers to replant sisal plants.
Demand Conditions
Firms Strategies, Structures and Rivalry
Factor Conditions
Legend: S (strength), W (weakness) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-3
3) Clothes This sub-sector is characteristically labour intensive, and labour cost is one important factor for foreign investment. However, the continuous increase of the minimum labour wage without increase in labour productivity is giving disincentives to foreign direct investment in Kenya. Although export of garments from EPZs increased by 39% (real) between 2000 and 2005, the enterprises targeted the US market utilising AGOA are taking the "foot-loose" view: i.e. they are ready to move out of Kenya if the advantages enjoyed from AGOA disappear because they do not see any other comparative advantages of operating in Kenya. Although Kenya can produce cotton, and there are some spinning companies, there are no large-scale fabric manufactures. Thus, there is no vertical integration. Because the third country importation of fabric shall not be allowed after 2012 under AGOA, the Government is seriously seeking a way to integrate the vertical integration of textiles and garments sub-sectors. As for the domestic market, imported and second-hand products have made the market size smaller, but there are some enterprises producing traditional clothes targeted at the regional markets. Moreover, there are a number of micro-small-scale enterprises undertaking manual spinning, weaving on the one hand, and many doing tailoring and dressmaking by themselves even in the country side. Strategies to adding values such as made to order clothes and African taste fashionable clothes need to be sought to differentiate them from the imported and used clothes.
Figure A-3 Diamond Model for Textile and Garments Sub-sectors Legend: S (strength), W (weakness), O (opportunity), T (threat), △ (neutral, but influential) Source: The JICA Study Team and Workshop Presentation Paper of Group 1 on 28 June, 2006
S There are some firms producing traditional clothes targeting at regional market
W Un-established brand W Large textile enterprises are operating targeting
at US markets utilising AGOA. They do not have linkages with the domestic nor regional markets.
W Productivity is much lower than parent companies.
T Many firms operating for AGOA do not have long-term operation strategies in Kenya once benefits from AGOA expire.
Firm Strategy, Structure and Rivalry
Related and
Supporting Industries (spinning, fabric
maker)
S Growing regional markets W Competition from both expensive
imported garments and cheap second hand clothes
T It is likely that companies cannot have preferencial access to the US market unless they use fabrics from USA or African AGOA treaty countries after 2007.
△Rapid changes in Customer's preferences
S Availability of labour force W Increase in labour cost is
surpassing increase in labour productivity.
W The quality of cotton is relatively poor compared to cotton produced in neighbouring countries
O Potentials for improving capacity and quality of cotton production
T Farmers may prefer to produce other cash income than cotton.
W Fragmented vertical linkages especially in fabric production
O Availability of spinning factories O Awareness of the Government to
strengthen vertical integration
Demand Conditions Factor Conditions
MAPSKID Annex 5 Result of the Cluster Analysis
5-4
4) Footwear (Rubber Sandal) Footwear manufacturing is usually popular among micro-small and medium enterprises (MSMEs) because it is based on local demand. It is also characterised by easy entry due to low investment requirements. But the situation in Kenya is different. Footwear markets are flooded by used shoes and imported shoes. Although Kenya has strength in leather, leather shoes are hardly produced in Kenya. The interviewed large scale enterprises also used to produce sports shoes, but they now produce only rubber sandals because the markets for the sports shoes are now satisfied by the imported and used products. Rubber sandals do not have strengths in factor conditions because the materials used are from plastics. However, regional demand conditions look positive as discussed in Chapter 9.3.2 (3). Due to low price and the hot weather, rubber sandals seem to have steady demand regionally.
Figure A-4 Diamond Model of the Rubber-Sandal Footwear Sub-sector
Related and
Supporting Industries
S Steady demand from the domestic and the regional markets
W The market for leather and fabric shoes are heavily invaded by imported and second hand products.
W The market for sports shoes satisfied by imported used andnew products
S Interviewed companies produce both for domestic and for foreign markets.
S Easy entry to this sub-sector O Possibility for producing higher
value added products
W Rubber materials are not locally available.
O Local Leather can be used for production of shoes.
W Lack of vertical and horizontal linkages
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-5
5) Wood products and furniture The factor conditions suddenly changed in 1999 when the Government banned logging of hardwoods. The sector was forced to move into the use of softwoods afterwards, but the poor drying process causes cracks. In spite of scarcity for industrial use, large portion of woods are still consumed for fuel1. It is suspected that the raw material availability shall remain scarce for at least another decade until the newly planted trees grow [KAM (2006) p.175]. The main products from the sub-sector are used for construction and furniture. Although demand for wooden materials for construction is growing, the lack of raw materials is forcing them to go into under production. On the other hand, the furniture sub-sector is supported by local demand and popular among MSMEs. Along the road side, many jua-kali enterprises are producing furniture. Many of them demonstrate skills in designing and curving. Local furniture should have comparative advantages against imported finished products because of high transportation cost for the latter which are heavy in nature. Yet, the high quality markets now show preference to imported products and material. Because of scarcity of woods, many firms are moving into the plastic and steel furniture. The notable supporting industry in this sub-sector is the manufacturers of cushion material. Otherwise, variation of supporting industries is not wide.
Figure A-5 Diamond Model of the Furniture Sub-sector
Related and
Supporting Industries
S Steady demand from the domestic markets
W Preference for the imported furniture and wood material in the high quality markets
W Weak horizontal collaboration O Because of scarcity of the woods,
some companies are moving into furniture utilising plastics and steel.
S Availability of human resources S Improvement in curving
techniques W Fabric materials for sheet rely
on importation W Diminishing availability of
timber due to scarce forests and environmental protection
O Improving quality of domestic woods by adopting proper drying process
W There are some firms producing cushion inner material.
O Development of textile sub-sector would enable supply of cushion fabrics.
Demand Conditions
Factor Conditions
Firm Strategy, Structure and Rivalry
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team
1 It is estimated that 75% of domestic energy is obtained from wood and charcoal [EPZA (2005b)].
MAPSKID Annex 5 Result of the Cluster Analysis
5-6
6) Paper, printing and publishing There are 13 large enterprises producing paper and pulp, but it is only Panafric Paper Mill in Webuye that has a licence to manufacture paper from local forest. The main interest of Panpaper Mill is to increase productivity so that its products can compete against imported paper, which more and more companies are relying on. Efficiency improvement of paper producers is important; otherwise domestic vertical chain will collapse as was the case in textile and garment. As for printing and publishing sub-sector, analysis is restricted to printing and publishing industry serving educational sector, which is one of the main markets in this sub-sector. Demand conditions of the text books are affected by policies of Ministry of Education, Science and Technology. There have been some changes in textbooks procurement policies. In early 1980’s, the cost sharing policy was introduced with most of the burden being gradually transferred to the parents. With the introduction of the Kenya National Textbook Policy in 1998, emphasis was made on the durability of text books so that the schools can lend to the students instead of having them purchase every year. The required technical specifications included quality of paper and multi-colour printing, which were not possible to be met by the local source paper and local printing companies. This regulation has caused more use of imported paper and off-shore printing. The local prints often have problems in binding, cutting pages and printing in the right positions. Technological assistance is needed so that the quality meets market needs and demand. The links with supporting industries of publishing sector do not look strong, either. Among the samples, a rubber roller manufacturer for printing machines was identified, but this is mostly for maintenance work. As more and more books are published off-shore, prices of such books go up, and this has caused people to move into used book markets.
Figure A-6 Diamond Model of Printing and Publishing Sub-sector for Text Books
Related and
Supporting Industries (Printing roller)
W More importation W Because of price increases, people are
moving into used books market. △ Government changed the policy to
lending text books instead of purchasing new ones and regulated that certified text books need to use better quality paper and multi colour printing.
W Companies do not have enough capital to renew machinery to keep up with the demand for quality upgrade
W Many publishing companies stopped operation in Kenya.
W The local forests are getting depleted to support the production of paper.
W There is a trend of shifting towards imported paper because local paper is either more expensive or of lower quality. W Not well developed supporting
industry.
Demand Conditions (exercise books and
text books)
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat), △ (neutral, but influential) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-7
7) Pharmaceuticals Kenya has an established concentration of pharmaceutical manufacturers. 50% of the production values are manufactured in Kenya with presence of 30 out of 50 leading companies within COMESA [EPZ (2005c) p.2]. The strategic location of Kenya, linking it to 46 cities, is the main reason for creating the concentration. Kenya’s political stability, regulations on property right protection and human resource are other reasons for her popularity. However, importation of the pharmaceutical products surpasses exports by 3.6 times. Imported value of pharmaceuticals was $128 million, and export value was $28 million while production output was $53 million in 2004 [UN Comtrade; KAM (2006) p.182]. This makes Revealed International Competitiveness (RIC)2 at minus 1.9. Weakness of the sub-sector is its heavy reliance on imported products. Over 95% of the raw materials are imported while the local supplies include packaging, maize starch, refined sugar, glucose syrup, rectified spirit and ethanol and sodium chloride [EPZ (2005c) p.8]. Production activities carried out in Kenya are basically mixing of material, packaging, testing and delivering. There are hardly any R&D activities carried out inside the companies. Although Kenya has some active R&D institutions such as Kenya Medical Research Institute (KEMRI) and African Medical Research Foundation (AMREF), their activities are hardly linked to the industry. Moreover, the universities are not supplying enough graduates to pharmaceutical sector to serve the needs of the industry since most graduates in medicine find their employment in hospitals and pharmacy shops. Because of the strong requirements of sanitary standards, production process is inevitably automated, and the required number of labour force is relatively small. The average employment size was 90 people in 2002 [KAM (2006) p.179]. Kenya could pursue more benefits from this sub-sector through providing more local material and carrying out more value added production. Moreover, some companies practice high level of production management techniques, which are still rare in Kenya. Spill over effect is expected from the working experience under the best management practice.
Figure A-7 Diamond Model of the Pharmaceutical Sub-sector
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team
2 Revealed International Competitiveness (RIC): (Export i – Import i ) / Production i
Related and
Supporting Industries
S Growing demand for generic medicine both domestically and regionally
△Government is the major institutional buyer
S Highest concentration of manufacturers in COMESA S Exporting strategy to COMESA S Good production management W Low value-addition production process W Lack of R&D activities
S International hub-airport in Nairobi W Lack of human resource who are
knowledgeable in pharmaceutical science
W 95% of the raw materials are imported.
S Collaboration through KAPI (Kenya Association of Pharmaceutical Industries)
W Lack of linkages with R&D sector W Universities are not supplying enough graduates in
pharmacy.
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
MAPSKID Annex 5 Result of the Cluster Analysis
5-8
8) Petroleum and chemical products Petroleum and chemical products contain a broad range of products serving various sectors. Characteristics of this sub-sector are discussed in the following three categories.
Products utilising local material
While most of enterprises in this sub-sector rely on importation of raw material, there are some raw materials locally available such as vegetable oil for soap, wattle for tanning, oleo for resins and pyrethrum for pesticides. Issues associated to with this category are improvement in quality and steady supply of the raw material and exploring opportunities for further exploitation of the raw material. With the growing concern for environmental protection, some new investment is coming in for bio-diesel utilising molasses. At present, pyrethrum is the most important product in this category because Kenya controls over 65% of the world market share. Its global standards originateｄ in the R&D results from Pyrethrum Board of Kenya. Although pyrethrum has global comparative advantage, its vertical chain is not strong. The Pyrethrum industry supports incomeｓ of approx. 200,000 farming households mainly in Lake Victoria, Northern Rift Valley, Southern Rift Valley and Mount Kenya area; however, the farmers cannot secure stable income because of payment delays by the Pyrethrum Board. Pesticides makers also do not find comparative advantages in processing in Kenya because production costs are too high. Therefore, refined pale extract, the high value added product of the pyrethrum, is exported and processed abroad. Demand conditions of pyrethrum are positive because of increased demand for organically grown foods/products in developed countries. This will see natural pyrethrum preferred to synthetic and chemical substitute products. However, China is now moving into production of pyrethrum and is on the way of accreditation. This will see her pyrethrum become a threat to Kenya’s. Improving efficiency is a must for Kenya to sustain its comparative advantage in the pyrethrum markets.
Figure A-8 Diamond Model of the Pyrethrum Sub-sector
Related and
Supporting Industries
S Kenya has dominant position in the world market (over 65%).
O Organic products boom in the developed countries can increase the use of pyrethrum.
T Other countries have started to plant pyrethrum. Among them, China can be a big competitor.
S Pyrethrum Board has strong linkages with the major processors abroad.
W Pyrethrum Board is a monopoly in processing the raw material.
W Inefficient management in Pyrethrum Board.
W Many pesticide makers have moved
out of Kenya
S Pyrethrum is a popular agro product, supplied by approx. 200,000 farming households.
T Due to the payment delay from the Pyrethrum Board, the farmers may move into other cash crops.
O Much research activities are carried out on pyrethrum
S Pyrethrum Board has jointly developed new products with ICIPE and KEMRI.
S Pyrethrum Board has been collaborating with universities in joint development and equipment sharing.
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-9
Products serving as suppliers to the major domestic sub-sector
There are many chemical enterprises working as supporting industries of other major sub-sectors such as glue and ink for food packaging, leather dye, paints for cars and construction. The demand conditions of such enterprises rely on the sub-sector they are serving. The raw materials are mainly imported. If this is to be replaced by domestic production, large investment and marketing strategy which would cover the investment cost shall be required. Deterioration in fundamental conditions does not motivate most of the investors to take such a risk.
Consumer products manufactured from imported materials
Enterprises producing consumer products from imported material have a relatively weak position in terms of factor conditions. Yet, market size is presumed to be steadily increasing in spite of the presence of imported products. This sub-sector can enjoy expanding markets targeting regional markets and can explore growth opportunities. Shoe cream and polish as discussed in 5.3.2 (3) are a good example where their export grew by 160% annually between 2002 and 2004. The notable supporting industry of this sub-sector, at this moment, is only packaging. Because of increasing competition from imported products, fundamental conditions in Kenya have to improve so that Kenya can demonstrate comparative advantages as the regional production hub. Figure A-9 Diamond Model of Chemical Consumer Products manufactured from imported
materials
Related and
Supporting Industries
S Steady growth in the market W Competition from the
imported products O Expanding regional markets
W Weak R&D capacity W Losing investment confidence △Increasing competition O Opportunity to explore regional
markets
W Ingredients are not locally available.
W It requires large investment to manufacture ingredients locally.
W Lack of linkages with R&D sector
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-10
9) Metal and metalwork Metalwork is one of the dominant sub-sectors as it is the 6th largest contributor to the total value-addition and 3rd largest contributor to employment within large enterprises (See Table 9-2). Kenya has a capacity to manufacture a range of metal products including construction pipes, automotive parts, home utensils, containers, cables and handicrafts, but companies undertaking moulding and casting are few. The components supplied for construction and telecommunication network are the ones enjoying growing markets. This sub-sector is also popular among the jua-kali sector because of easy entry with simple machinery. Majority of companies lack technology for precision processing. Most companies utilise second hand machinery and scrap metal while a few companies are equipped with modern machinery. Some components are supplied to the automotive sub-sector, but hardly any to the electrical sub-sector. Electrical assemblers are generally unaware of the existence of a few good companies and are relying on imported components. Use of computer aided engineering (CAE) is still rare. Even variation in CAD is small. The companies adopting CAD use mostly AutoCAD, mainly two dimensions while majority of micro, small and medium enterprises do not have the capacity of designing. In spite of the variations in production processes, there is much room for technological upgrade.
Figure A-10 Diamond Model of Metal and Metalwork
Related and
Supporting Industries
S Some supporting industry allied to the growing sub-sector can enjoy growing demand such as those serving construction sector.
S Variation in production processes S Relatively stronger foundation than in
neighbouring countries W Production practices without drawingW A few enterprises are capable of
producing with precision. W Few enterprises use CAE W Few enterprises produce die and
moulds
W Lack of human resource in industrial designing
W New material is imported. △Use of recycled metal
S Some enterprises received consultationsupport from Kaizen Institute through KAM.
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat) , △ (neutral, but influential) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-11
10) Agro-processing Machinery Agro-processing machinery includes those for farming, post harvest, and processing. The demand for farming machinery is declining, but the demand for post harvest and processing is expected to grow as it is necessary to expand processing activities in the rural area in stead of trading in raw form. Agro-processing machinery manufactures, comprised mostly of small or medium scale enterprises that can be found across the country. They operate close to the markets and make products on order. Most products are made from scrap metal with simple electric motors. There are also tractor assemblers, but due to the decline in farming, local sourcing of components was stopped and now use knock down kits. Designing capacity is a prerequisite in this sub-sector, but the labourers trained in engineering designing are not many. Although the size of the sub-sector is small, creativity and innovativeness are demonstrated in this sub-sector. Many companies are also find markets in the neighbouring countries. The development of agro machinery has been assisted for a long time through institutions and NGOs such as the Jomo Kenyatta University of Agriculture and Technology (JKUAT) and KickStart (formerly called Approtec). Because of the decline in demand in automobile sub-sector, some automotive component manufacturers plan to shift to this sub-sector.
Figure A-11 Diamond Model of Agro-processing Machinery
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team
Related and
Supporting Industries
S Markets across the country and the neighbouring countries
S Variation in products demanded W Demand for farming machinery has
declined. O Expansion of markets for post harvest
and processing machinery. △Need to meet the demand of
low-income customers
S Small and medium enterprises are operating across the country with some designing capacity.
S Some level of innovation is demonstrated in this sub-sector.
S The companies find markets in neighbouring countries.
O Component suppliers in automotive sub-sector may join in this sub-sector.
△Use of scrap metal with simple electric motors
W Human resources trained in engineering designing are not many.
△ Availability of scrap metal
S Long term assistance from training institutions and NGOs such as Jomo Kenyatta University of Agriculture and Science, Kenya Industrial Training Institute and KickStart
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
MAPSKID Annex 5 Result of the Cluster Analysis
5-12
11) Electrics and electronics The capacity of electrics and electronics sub-sector is low. The market is flooded by imported products, even simple equipment such as radios. In addition, the latest census shows that only 13.5% households used electricity in 1999. There are only 69 formal enterprises operating in this sub-sector with contribution of 2% value addition of the manufacturing sector. The main reasons for such small contributions include i) availability of competitive imported products; ii) small market size; iii) underdeveloped component markets and iv) insufficient training in universities and polytechnics. The main players in this sub-sector are switch board, voltage stabilisers and car battery makers. These existing manufacturers utilise unique market conditions in Kenya such as voltage upsurge. Former assemblers stopped assembling and moved into importation and maintenance work in the early 1990s. Yet, the electrical and electronics sub-sector has received the third largest FDI since 2001 (See Table 9-5). New assembling has started for computers, TVs and audio players. These investors are from South Africa, China, Korea, Malaysia, and Turkey. The assemblers now procure only packaging material locally while all others are imported. Yet, Kenya has a well developed plastic and metalwork sub-sectors, which could potentially supply the assemblers. Although the size of this sub-sector is still small, its performance is not bad in terms of growth rate (7%), input productivity (56%) and labour productivity (994,000 Ksh/labourer) (See Table 9-2). Because Kenya is now putting an effort on universal access to the Internet, the demand for electronic equipment for the use of ICT is expected to expand rapidly. Currently, the dominant supporting industry for ICT within the manufacturing sector is only metallic cable makers. Market opportunity for ICT should be exploited by more manufacturers, and there is also a need for expansion of maintenance work, which can provide market opportunities for micro and small enterprises.
Figure A-12 Diamond Model of Electrical and Electronics
Legend: S (strength), W (weakness), O (opportunity), T (threat) Source: The JICA Study Team and Workshop Presentation Paper of Group 2 on 28 June, 2006
Related and
Supporting Industries
S Growing demand for ICT S There is demand for unique design to fit
Kenyan markets such as electric stabilisers. (Consumers are required to purchase stabilisers if they want their electric appliances to be insured.)
W Heavily dependence on imported products
W Only 14% of households use electricity.O Demand expansion with the
electrification
S New investment is coming for computer, TV and audio assembling
S The sub-sector demonstrates higher growth rate and higher input and labour productivity than average
W A small number of enterprises are operating in this sub-sector.
W Former assemblers stopped assembling in the early 1990s
△Potential for small and micro enterprises in maintenance work.
W A few well trained electrical and electronics engineers.
W Majority of components are imported W Cost of production is high.
W Existing supplier is only packaging W Poor curriculum and equipment at the
universities and polytechnics O Well developed foundation of metalwork and
plastic sub-sector, which can potentially become suppliers.
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
MAPSKID Annex 5 Result of the Cluster Analysis
5-13
12) Automotive The demand conditions of the automotive sub-sector are not favourable due to the domination by imported sedans. Because sedans have wide variations with short life cycle, the market size of each model is too small to sustain profitability. The global car manufactures recently gave up production of sedans in Kenya and decided to concentrate on African production centres in Egypt and South-Africa. Accordingly, domestic assemblers shifted their production to commercial cars such as mini buses, trucks, buses and commercial vehicles. The assemblers mostly utilise imported knocked-down kits, but they also have some local suppliers for tyres, harness, frame, seat, exhaust pipes, glasses, batteries, and springs. Simple assembling leads to very little value addition, so some companies engage in elongation of chassis and armoured body building to increase value addition. However, as the three assemblers compete in the small Kenyan market, production for each company is from 2,000 to 4,000 units per annum and is running under capacity. Due to the sudden decline of the production volumes caused by the ceasing of sedan production, the suppliers are also suffering and are forced to shift to aftermarket services. There is concern that the developed supply chain network may collapse or dwindle.
Figure A-13 Diamond Model of Automotive
Related and Supporting Industries
(tyre, harness, frames, seats, exhaust pipes, glass,
batteries and springs)
S Steady demand in the aftermarketS Some customised demand such
as bullet proofing cars W Market for sedans is dominated
by imported cars. W Demand for sedans has a varied
short-life cycle, and the market for each type is too small in this region.
S Assemblers have shifted into commercial vehicles, trucks and buses
S Exporting strategies to the neighbouring countries.
W Assemblers gave up production of sedans.
W Major components are imported
O locational advantage as a gateway of East Africa
S Existence of varied suppliers S Existence of sales and maintenance
channels T The orders from the assemblers
suddenly decreased, and suppliers are shifting to the aftermarket.
Demand Conditions
Firm Strategy, Structure and Rivalry
（assemblers）
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat), △ (neutral, but influential) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-14
13) Construction Material Construction materials include cement, tiles, pipes, glass and timber. The demand conditions for construction materials look stable. Value addition of the construction sector grew by 1.6% between 2000 and 2004 [Central Bureau of Statistics (2005) p.27]. Apart from the wooden sub-sector, metallic products grew by 1%, and non-metallic mineral products grew by 8% between 2001 and 2005 (See Table 9-2). Processing requires simple technologies, thus many companies operate in the sub-sector. Competition is getting stronger although competition itself is not a weak condition as long as it operates in the fair market. Input productivity is high for the locally sourced cement and timber. Deposits of limestone for cement are estimated as at least 35 years [KAM (2006) p.221]. The usage of the mineral reserves has to be balanced with environmental protection like the case of timber. This sub-sector can also enjoy more value-adding products such as designed tiles, stained glass and ornamented light fixtures.
Figure A-14 Diamond Model of Construction Material
Related and Supporting Industries
S Construction market is steadily growing.
S This sub-sector is not much affected by imported products.
O Expanding business in the neighbouring countries
O Opportunities to explore higher value-addition products (eg. decorated tiles, stained glass, ornamented light fixture)
△ Various types of sub-sector supply to the construction.
△Strong competition among the firms
S Some raw material sources such as lime stone and timber are locally available.
W Good wooden materials have become hard to get because of environmental protection.
T Availability of lime stone may become small because of environmental protection. S Existence of nationwide distribution
channels
Demand Conditions
Firm Strategy, Structure and Rivalry
(cement, tiles, pipes, glass, timer)
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat), △ (neutral, but influential) Source: The JICA Study Team
MAPSKID Annex 5 Result of the Cluster Analysis
5-15
14) Handicrafts This sub-sector is categorised as manufacturing products for tourists. Handicrafts utilise available local resources such as wood, leather, limestone, clay, wool, banana fibre and sisal. Most manufacturing is undertaken by micro, small and medium enterprises. Product variety has been widened, and production skills have been upgraded. Tourists are likely to pay more than what the locals may pay. Tourists are also quality conscious customers. If the manufacturers and retailers can take customers' preferences seriously, they can get the information on the market preference of their countries and gets a hint for exporting. There are a few successful enterprises which are successfully exporting their products to the developed countries. Exporting products include ceramic necklaces and sisal handbags. These companies have utilised exhibitions and homepages for marketing abroad. Customers abroad prefer to purchase those goods due to their uniqueness. Although this is a niche market abroad, contribution to job employment in Kenya is considerable. However, majority of micro enterprises or artisans do not have stable outlet chains. Most manufactures prefer to make direct selling than using retailers because the terms of payment from the retailers are not favourable. Yet, the tourists prefer to purchase at secure shops, and artisans end up with a long-term inventory. The Government is encouraging the artisans to form groups so that assistance can be extended. Linking to the market shall open opportunities not only for expansion of sales to tourists but also exporting.
Figure A-15 Diamond Model of Handicraft
Related and Supporting Industries
S Kenya is the most popular tourism destination in East Africa.
S Tourists are quality conscious customers who are willing to pay more than the local people.
W Tourists prefer to purchase at secure shops or hotels where most artisans do not have access.
O Tourists can provide information on market preferences of the countries of their origin.
S Growing skills in product designing and development
S A few enterprises successfully ventured into export markets in developed countries.
W Most manufactures prefer direct selling than utilising outlets because terms of payment set by retailers are not favourable.
W Many artisans end up with long-term inventory due to lack of stable sales channel.
S High usage of the available local materials
S Availability of human resource
S There are various types of assistance available through ministries and NGOs.
S The Government is encouraging artisans to form groups so that it can extend assistance.
O More assistance is needed to provide stable outlets.
Demand Conditions
Firm Strategy, Structure and Rivalry
Factor Conditions
Legend: S (strength), W (weakness), O (opportunity), T (threat), △ (neutral, but influential) Source: The JICA Study Team
Annex 6 102 Companies in Kenya
6-1
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es①
The
pre
sent
con
diti
on in
Ken
yaTh
e co
llabo
ratio
n be
twee
n K
enya
n SM
Es is
not
eno
ugh.
The
refo
re,
high
-val
ue a
dded
pro
duct
sca
nnot
be
deve
lope
d.
For e
xam
ple,
the
plas
tic m
oldi
ng c
ompa
nies
, she
et m
etal
pre
ssin
gco
mpa
nies
and
Ken
ya g
over
nmen
t do
not k
now
that
Ken
ya h
as m
any
die
com
pani
es. T
here
fore
, alm
ost a
ll di
es a
re im
porte
d fr
om In
dia
etc,
an
d bu
sine
ss c
hanc
e is
flow
ing
out t
o ov
erse
as.
Plas
tic m
oldi
ng c
ompa
nyin
Ken
yaD
ie c
ompa
nyin
Ken
ya
T.H
orig
uchi
/MAP
SKI
D2
For
deve
lopi
ng K
enya
n in
dust
ries
Man
y co
mpa
nies
nee
d th
e fo
llow
ing
supp
ort.
1.C
olla
bora
tion
wit
h ot
her
com
pani
es2.
Pow
er u
p of
mar
keti
ng c
apab
ility
3.P
ower
up
of t
echn
ical
cap
abili
ty4.
Pow
er u
p of
man
agem
ent
capa
bilit
y
6-2
T.H
orig
uchi
/MAP
SKI
D5
1. C
olla
bora
tion
wit
h ot
her
com
pani
es
②T
he p
rese
nt c
ondi
tion
in S
E A
sia
From
199
0in
Tha
iland
, man
y Ja
pane
se p
rivat
e co
mpa
ny’s
sta
ff ha
ve re
sear
ched
SE
Asi
an S
MEs
whi
ch m
ay b
ecom
e th
eir
supp
lier.
The
refo
re, T
haila
nd h
as m
ade
man
y SM
E’s
netw
ork
easi
ly.
Japa
nese
pri
vate
com
pany
’s s
tuff
in T
haila
nd(C
ente
r is
Hor
iguc
hi)
T.H
orig
uchi
/MAP
SKI
D6
1. C
olla
bora
tion
wit
h ot
her
com
pani
es
③W
hat
Ken
ya s
houl
d do
from
now
on?
Ken
ya h
as n
ot m
any
Japa
nese
(For
eign
) com
pani
es y
et.
Ther
efor
e, it
is im
poss
ible
that
the
Japa
nese
priv
ate
com
pany
’s s
taff
mak
e th
e K
enya
n SM
E’s
netw
ork.
Fr
om th
is ca
use,
Ken
yan
supp
ortin
g or
gani
zatio
ns m
ust
perfo
rm a
Fie
ld s
urve
yfo
r Ken
yan
SMEs
to m
ake
the
SME’
s ne
twor
k by
them
selv
es.
Fiel
d su
rvey
T.H
orig
uchi
/MAP
SKI
D7
2. P
ower
up
of m
arke
ting
cap
abili
ty
T.H
orig
uchi
/MAP
SKI
D8
2. P
ower
up
of m
arke
ting
cap
abili
ties
①T
he p
rese
nt c
ondi
tion
in K
enya
Mai
n pu
rpos
e of
mar
ketin
g is
rese
arch
ing
the
need
s of
deal
ing
com
pani
es. T
he tr
end
now
is th
at, m
any
fore
ign
com
pani
es a
re r
eloc
atin
gto
ano
ther
cou
ntrie
s whi
ch h
as
man
y SM
Es.
6-3
T.H
orig
uchi
/MAP
SKI
D9
2. P
ower
up
of m
arke
ting
cap
abili
ties
②T
he p
rese
nt c
ondi
tion
in S
E A
sia
(1)
In S
E A
siaan
d C
hina
, “B
uyer
's t
rade
fair
s”ar
e op
ened
by
Japa
nese
com
pani
esin
man
y ci
ties e
very
yea
r. In
the
fair,
Ja
pane
seco
mpa
ny d
isass
embl
es o
wn
prod
ucts
, and
sear
chSM
Esw
hich
can
pro
duce
thei
rpar
ts. T
here
fore
SE
Asia
nSM
Esha
ve
man
y op
portu
nitie
s fo
r doi
ng m
arke
ting
rese
arch
.
Buye
r’s tr
ade
fair
T.H
orig
uchi
/MAP
SKI
D10
2. P
ower
up
of m
arke
ting
cap
abili
ties
②T
he p
rese
nt c
ondi
tion
in S
E A
sia
(2)
In S
E A
siaan
d ch
ina,
SE
Asia
nSM
Esar
e pe
rform
ing
“Tea
rdow
n”(d
isass
embl
e de
alin
g co
mpa
ny’s
goo
ds).
By
the
Tear
dow
nan
alys
is, th
ey c
an fi
nd p
arts
whi
ch th
ey c
an p
rodu
ce.
Ther
efor
e th
ey c
an st
art d
ealin
gw
ith Ja
pane
se c
ompa
nies
easi
ly.
Tear
dow
n wor
k sho
p in
Japa
nby
Hor
iguc
hi
T.H
orig
uchi
/MAP
SKI
D11
2. P
ower
up
of m
arke
ting
cap
abili
ties
③W
hat
Ken
ya s
houl
d do
from
now
on?
Ken
yan
supp
ortin
g or
gani
zatio
ns s
houl
d ho
ld a
“B
uyer
's
trad
e fa
ir”
and
“Tea
rdow
n st
udy
mis
sion
”.By
us
ing
thes
e m
etho
ds K
enya
n SM
Es c
an p
erfo
rm m
arke
ting
rese
arch
and
can
star
t to
deal
with
Jap
anes
e co
mpa
nies
qui
ckly
.
Tear
dow
n wor
k sho
p in
Mom
basa
by M
OTI
and
Hor
iguc
hiTe
ardo
wn w
ork s
hop
in N
airo
biby
MO
TI a
nd H
orig
uchi
T.H
orig
uchi
/MAP
SKI
D12
3. P
ower
up
of t
echn
ical
cap
abili
ty
6-4
T.H
orig
uchi
/MAP
SKI
D13
3. P
ower
up
of t
echn
ical
cap
abili
ties
①T
he p
rese
nt c
ondi
tion
in K
enya
Ken
yan
grad
uate
's te
chni
cal c
apab
ilitie
s are
the
sam
e as
that
of
SE
Asia
. How
ever
, “A
fter
gra
duat
ion”
ther
e ar
e fe
w c
ompa
nies
whi
ch c
an im
prov
e th
e gr
adua
tes
capa
bilit
ies b
y O
JT(O
n Th
e Jo
b Tr
aini
ng)
henc
e ou
r cu
rren
t pro
blem
s.
educ
atio
nal e
quip
men
ts
educ
atio
nal e
quip
men
ts
T.H
orig
uchi
/MAP
SKI
D14
3. P
ower
up
of t
echn
ical
cap
abili
ties
②T
he p
rese
nt c
ondi
tion
in S
E A
sia
In S
E A
sia, m
any
grad
uate
s are
em
ploy
ed b
y Ja
pane
se
com
pani
es. T
hey
then
stud
y pr
actic
al te
chno
logy
by
OJT
(On
The
Job
Trai
ning
). A
fter w
hich
, the
y ca
n S
wit
ch
jobs
to lo
cal c
ompa
nies
. Con
sequ
ently
, the
tech
nica
l ca
pabi
litie
s of S
E A
sian
SMEs
can
go
up a
brup
tly.
T.H
orig
uchi
/MAP
SKI
D15
3. P
ower
up
of t
echn
ical
cap
abili
ties
③W
hat
Ken
ya s
houl
d do
from
now
on?
In K
enya
, goo
d co
mpa
nies
whi
ch c
an im
prov
e gr
adua
te's
capa
bilit
y by
OJT
are
not
eno
ugh
in n
umbe
r, th
eref
ore
enha
ncin
g ou
r SM
E’st
echn
ical
cap
abili
ties
is di
ffic
ult.
Ken
ya s
houl
d ut
ilize
EP
Zan
d sh
ould
wel
com
e a
com
pany
m
ore
to e
mpl
oy o
r tra
in g
rada
tes.
T.H
orig
uchi
/MAP
SKI
D16
4. P
ower
up
of m
anag
emen
t ca
pabi
lity
6-5
T.H
orig
uchi
/MAP
SKI
D17
4. P
ower
up
of m
anag
emen
t ca
pabi
litie
s
①T
he p
rese
nt c
ondi
tion
in K
enya
Ove
r 90%
of t
he c
ompa
ny w
hich
I vi
site
d ha
s m
anag
er w
ho
is no
t Afri
can
peop
le. T
he re
ason
will
be
lack
of b
usin
ess
educ
atio
n sy
stem
in K
enya
.
T.H
orig
uchi
/MAP
SKI
D18
4. P
ower
up
of m
anag
emen
t ca
pabi
litie
s
②T
he p
rese
nt c
ondi
tion
SE
Asi
aFr
om 2
000,
Min
istry
of I
ndus
try in
Tha
iland
has
intro
duce
d Ja
pane
se S
ME
C (S
ME
man
agem
ent
cons
ulta
nt)
syst
em. N
ow M
inist
ry h
as 4
00 T
hai S
MEC
s. Th
ey h
ave
instr
ucte
d on
bus
ines
s m
anag
emen
t for
1,0
00 T
hai S
MEs
fro
m 2
000.
Hor
iguc
hi a
nd T
hai S
MEC
s H
orig
uchi
and
Tha
i SM
ECs
T.H
orig
uchi
/MAP
SKI
D19
4. P
ower
up
of m
anag
emen
t ca
pabi
litie
s
③W
hat
Ken
ya s
houl
d do
from
now
on?
Ken
ya s
houl
d in
trodu
ce Ja
pane
se S
ME
C s
yste
mth
e w
ay
Thai
land
did
. Fro
m h
ere
Ken
yan
SMEC
will
inst
ruct
on
Man
agem
ent m
etho
ds fo
r the
Ken
yan
SMEs
. The
refo
re, t
he
man
agem
ent c
apab
ility
of K
enya
n SM
Es w
ill g
o up
abr
uptly
.
Inst
ruct
for S
ME
by T
hai S
MEC
s In
stru
ct fo
r SM
E b
y Tha
i SM
ECs
T.H
orig
uchi
/MAP
SKI
D20
Res
ult
of f
ield
sur
vey
6-6
T.H
orig
uchi
/MAP
SKI
D21
11
2
11
2
3
21
3
4
21
1
32
51
6
81
31
5
11112
1
14
12
02
46
810
1214
16
18
Num
ber
of
com
panie
s
Meta
l
Pla
sti
c &
rubber
ＩＣＴ
Food &
bevera
ge
Ele
ctr
ic,E
rectr
onic
s
Educati
on
Auto
mobile
Chem
ical
Paper
& p
rinti
ng
Die
Pharm
aceuti
cal
Texti
le
Agro
machin
ery
Concre
te
Furn
iture
&handic
raft
Flo
wer
Leath
er
Tra
nsport
Nair
obi
& R
iftv
alley
Mom
basa
Weste
rn K
enya
Det
ails
of
the
visi
ted
102
com
pan
ies
T.H
orig
uchi
/MAP
SKI
D22
1. M
etal
and
Mec
hani
cal m
achi
nes
(17
com
pani
es)
Ste
el re
cycl
ing
(DEV
KI)
The
com
pany
col
lect
s sc
rap
met
al a
nd m
elts
it
in e
lect
ric fu
rnac
es. F
rom
this
, it
man
ufac
ture
s ag
ricu
ltura
l plo
ughs
and
ste
el
rods
. It’
s m
ain
wor
ry is
hug
e e
lect
ricity
co
sts
incu
rred
in th
e op
erat
ion
of it
s el
ectr
ic
furn
aces
, and
als
o it’
s w
orrie
d ab
out t
he
poss
ibili
ty o
f scr
ap-m
etal
run
ning
out
of
supp
ly in
2-3
yea
rs.
Alu
min
um P
ress
(Cry
stal
)T
he c
ompa
ny m
elts
scra
p al
umin
um u
sing
oi
l fire
d fu
rnac
es. A
nd p
ress
alu
min
um p
ots
for t
he U
nite
d N
atio
ns. M
any
Ken
ya,
Uga
nda
and
Tan
zani
an h
ouse
hold
s st
ill u
se
firew
ood
to c
ook,
so
the
dem
and
for
alum
inum
pot
s is
rem
ain
high
.
Fact
ory
for M
eltin
g iro
n
T.H
orig
uchi
/MAP
SKI
D23
1. M
etal
and
Mec
hani
cal m
achi
nes
(17
com
pani
es)
Ste
el p
ipe
(AS
P)
The
com
pany
is b
endi
ng a
nd w
eldi
ng a
st
eal p
late
for p
rodu
ce s
teel
pip
e. A
nd
bind
ing
shee
t or p
owde
r coa
ting
to p
reve
nt
oxid
izat
ion
by w
ater
. But
all
stea
l are
im
port
ed f
rom
SA
etc
.
Filte
r an
d br
ake
pad
(Sun
ny)
The
com
pany
pro
duce
filte
r and
bra
ke s
ue
for v
ehic
les.
But
stil
l the
y ar
e us
ing
asbe
stos
for
prod
uce
brak
e pa
d.T
he a
sbes
tos
are
impo
rted
from
K
azak
hsta
n an
d Zi
mba
bwe.
Bin
ding
ste
el p
ipe
T.H
orig
uchi
/MAP
SKI
D24
1. M
etal
and
Mec
hani
cal m
achi
nes
(17
com
pani
es)
Whe
el c
hair
(Und
ugu)
All
wor
kers
(5) a
re h
andi
capp
ed p
erso
ns.
The
y ca
n’t g
et jo
b th
eref
ore
they
foun
d th
e co
mpa
ny b
y th
e se
lves
. The
y pr
oduc
e w
heel
cha
ir fo
r out
door
. The
y fo
und
mar
ket i
n Su
dan
and
Som
alia
, but
now
th
ey h
ave
not s
uffic
ient
cap
ital
for
mas
s pr
oduc
tion
.
Kit
chen
inst
rum
ent (
CES
)T
he c
ompa
ny te
ardo
wn
Ital
y in
stru
men
t.A
nd th
ey p
rodu
ce s
imila
r in
stru
men
t for
Ken
yan
rest
aura
nts.
Whe
el c
hair
for
outd
oor
6-7
T.H
orig
uchi
/MAP
SKI
D25
2. P
last
ic a
nd R
ubbe
r (1
4 co
mpa
nies
)
PVC
pip
es(S
hiv)
By
Extr
usio
n m
oldi
ng, t
he c
ompa
ny
prod
uces
a v
arie
ty o
f pip
es u
sed
for i
.e. w
ater
, se
wer
, and
ele
ctric
pip
ing
etc.
In w
este
rn a
rea
they
hav
e no
com
petit
or,
ther
efor
e th
ey v
an g
et b
ig p
rofi
t.
Tir
e(S
amee
r)
The
com
pany
man
ufac
ture
s tir
es b
asic
ally
su
ited
for
the
Ken
yan
mar
keta
nd r
oads
.
Buc
ket (
NPL
)T
he c
ompa
ny p
rodu
ce b
ucke
t by
inje
ctio
n m
oldi
ng a
nd b
low
mol
ding
but d
ies
are
impo
rted
from
Indi
a.
Bin
ding
rub
ber f
or ti
re
T.H
orig
uchi
/MAP
SKI
D26
2. P
last
ic a
nd R
ubbe
r (1
4 co
mpa
nies
)
Plas
tic
bag
(PIL
)T
he c
ompa
ny p
rodu
ce p
last
ic b
ag b
y bl
ow
mol
ding
and
prin
ting.
Now
Qua
lity
cont
rol
(thi
ckne
ss) i
s di
ffic
ult b
y vo
ltag
e lim
it.
San
dal (
Um
oja
Rub
ber)
T
he c
ompa
ny m
anuf
actu
res
sand
al. A
nd
expo
rtin
g to
Jap
an (T
akas
him
aya)
.
Shoe
(Um
oja
Rub
ber)
)T
he c
ompa
ny m
anuf
actu
res
shoe
of a
rubb
er
sole
, but
clo
thes
are
impo
rted
from
chi
na.
Mol
ding
san
dal
T.H
orig
uchi
/MAP
SKI
D27
3. I
CT
(11
com
pani
es)
Cab
le w
ire
mak
er(E
ast A
fric
an C
able
)W
ith ra
w m
ater
ials
impo
rted
from
Zam
bia,
m
etal
cab
les
are
prod
uced
for t
he lo
cal
mar
ket.
The
com
pany
is h
igh
prof
itab
le
com
pany
.
Cal
l cen
tre
(Ken
Cal
l)T
he c
ompa
ny o
ffer
s ser
vice
s to
U.S
co
mpa
nies
. The
y ha
ve a
lso
star
ted
“Bac
k-of
fice
serv
ices
.”Si
nce
the
peop
le o
f Ken
ya
spea
k En
glis
h flu
ently
and
with
out m
uch
acce
nt, i
t will
be
a st
rong
sel
ling
poin
t ove
r In
dia.
But
they
hav
e no
t tak
en b
ig
mar
ket b
y K
enya
n lo
w s
peed
net
wor
k.
Del
ay o
f pla
n fo
r op
tica
l cab
le fr
om
Mom
basa
to N
airo
bi h
ave
bad
effe
ct.
Win
ding
mac
hine
for
met
al c
able
T.H
orig
uchi
/MAP
SKI
D28
4. F
ood
and
Bev
erag
es (9
com
pani
es)
S
oda
and
Dri
nkin
g w
ater
(Sof
taB
ottli
ng)
Thi
s co
mpa
ny m
anuf
actu
res
soda
pro
duct
s.
Bra
nded
bot
tles
are
was
hed,
fille
d an
d ca
pped
on
an a
utom
ated
pro
duct
ion
line.
Fish
Pro
cess
ing
(Pec
he)
The
com
pany
buy
s fis
h(ni
le p
erch
) dire
ctly
fr
om L
ake
Vic
toria
, and
exp
orts
to Ja
pan
and
USA
. The
rem
aini
ng fi
sh is
sol
d ch
eapl
y to
the
loca
ls.
The
com
pany
als
o w
ishe
s to
sta
rt
prod
ucin
g hi
gh v
alue
add
ed g
oods
e.g
. Fi
sh s
ausa
ges,
Fis
h oi
l and
Cos
met
ics.
Rem
aini
ng fi
sh
6-8
T.H
orig
uchi
/MAP
SKI
D29
4. F
ood
and
Bev
erag
es (9
com
pani
es)
Oil
and
soap
(Pw
ani)
Thi
s co
mpa
ny re
finin
g pa
lm-o
il an
d pr
oduc
ing
soap
from
bot
tom
oil.
B
ut p
alm
-oil
is im
port
ed fr
om M
alay
sia.
Flou
r an
d br
ead
(Uni
ted
Mill
er)
The
com
pany
pro
duce
flou
r for
hum
an a
nd
anim
al, a
nd p
rodu
ce b
read
from
flou
r. T
heir
equi
pmen
ts b
ecom
e ol
d, b
ut th
ey c
an n
ot
get t
echn
ical
edu
cati
on fo
r ne
w e
quip
men
t. R
efin
ing
oil
T.H
orig
uchi
/MAP
SKI
D30
5. E
lect
ric
& E
lect
roni
cs
(9 c
ompa
nies
)
PC c
ompa
ny(M
ecer
)T
he c
ompa
ny p
rodu
ces
its o
wn
bran
d of
co
mpu
ters
loca
lly. I
t’s p
rodu
ctio
n ca
paci
ty is
30
0 pi
eces
per
mon
th.
But
all
part
s (i
nclu
de c
onta
iner
box
) are
im
port
ed n
ow.
Win
d ge
nera
tor
(Cra
ft S
kill)
The
y de
sign
by
them
selv
es a
nd p
rodu
ce
by u
sing
use
d-ca
rs g
earb
ox a
nd e
xpor
ting
to
Tan
zani
a, U
gand
a et
c.W
ind
gene
rato
r
T.H
orig
uchi
/MAP
SKI
D31
5. E
lect
ric
& E
lect
roni
cs
(9 c
ompa
nies
)
Hom
e el
ectr
ic g
oods
(SA
NY
O)
Sinc
e th
e co
mpa
ny (S
anyo
) had
a s
mal
l m
arke
t ass
embl
ing
part
s h
as s
topp
ed.
Now
the
com
pany
is p
erfo
rmin
g on
ly
repa
ir.
Elec
tric
Sw
itch
con
trol
Pan
el (I
ET)
Pane
l hav
e pr
oduc
ed to
cou
nter
ele
ctric
po
wer
-sur
ge’s
and
fluc
tuat
ions
. T
hey
get
tech
nica
l tra
inin
g fr
om S
iem
ens.
The
y ex
port
con
trol
pan
el to
Uga
nda
and
Tan
zani
a.El
ectr
ic S
witc
h co
ntro
l Pan
el
T.H
orig
uchi
/MAP
SKI
D32
6. E
duca
tion
(6
com
pani
es)
Mec
hani
cal e
ngin
eeri
ng e
duca
tion
(K
PLC
)T
he m
achi
ne fo
r ed
ucat
ion
beco
me
very
ol
d (1
985)
. The
y w
ant t
o bu
y ne
w
mac
hine
, but
teac
her
has
no k
now
ledg
e of
new
mac
hine
.
Elec
tric
eng
inee
ring
edu
cati
on (K
PLC
)A
ll e
lect
ric
mac
hine
for
educ
atio
n ha
ve
been
don
ated
at s
ame
tim
e (1
990)
. T
here
fore
all
mac
hine
bec
ome
old
toge
ther
.M
achi
ne in
edu
catio
n
6-9
T.H
orig
uchi
/MAP
SKI
D33
7. A
utom
obile
(6 c
ompa
nies
)
Aut
omob
ile
(Ken
ya V
ehic
le)
The
thre
e co
mpa
nies
hav
e to
com
pete
for
the
smal
l Ken
yan
mar
ket.
Prod
uctio
n fo
r ea
ch c
ompa
ny is
2,0
00-4
,000
uni
ts/Y
ear.
But
,Toy
ota
Sout
h A
fric
a pr
oduc
ed 1
24,0
00
units
in th
e sa
me
year
200
5. L
ow p
rodu
ctio
n in
Ken
ya h
as le
d to
“M
anua
l ope
ratio
n lin
e”un
like
in th
e de
velo
ped
coun
ties
whe
re th
e lin
e ar
e au
tom
ated
. Veh
icle
bod
y’s
fabr
icat
ion
in K
enya
is d
one
by u
sing
old
mac
hine
ry.
Aut
omob
ile
Leaf
Spr
ing
(Aut
o S
prin
g)Pr
oduc
tion
invo
lves
Spr
ing
stee
l im
port
ed
from
Sou
th A
fric
a. T
he L
eaf S
prin
g m
anuf
actu
red
are
mai
nly
mea
nt fo
r Tru
cks.
Man
ufac
ture
line
for b
us
T.H
orig
uchi
/MAP
SKI
D34
8. C
hem
ical
(5 c
ompa
nies
)
Coi
ls a
nd m
osqu
ito
chip
s (K
api)
Thi
s co
mpa
ny m
anuf
actu
res
mos
quito
coi
ls
and
mos
-chi
ps u
sing
pyr
ethr
um. H
owev
er
due
to lo
w p
rofit
s to
the p
yret
hrum
farm
ers,
th
e pr
oduc
tion
of p
yret
hrum
in K
enya
ha
s go
ne d
own.
And
, now
a d
ays
coil
pr
oduc
ts fa
ce s
tiff
com
peti
tion
from
ch
eap
impo
rts
from
Indi
a an
d M
alay
sia.
Man
ufac
ture
line
for m
osqu
ito c
oils
T.H
orig
uchi
/MAP
SKI
D35
9. P
aper
and
pri
ntin
g (4
com
pani
es)
B
ook
man
ufac
ture
(Kit
abu)
Don
ors
fund
the p
rodu
ctio
n of
sch
ool b
ooks
by
this
com
pany
, th
eref
ore
its
purc
hase
s an
d pr
oduc
tion
dep
ends
ent
irel
y on
do
nor’
s fo
undi
ng.
Pape
r m
illin
g(P
an P
aper
)T
he c
ompa
ny h
as su
ppor
ted
the
gove
rnm
ent
fore
st. B
ut 3
1-ye
ar a
gree
men
t end
ed in
20
03. S
ince
then
, the
con
trac
t has
bee
n re
new
ed e
very
yea
r w
ith
unce
rtai
nty
of
the
futu
re.
Stri
pped
woo
ds
T.H
orig
uchi
/MAP
SKI
D36
10.
Die
mak
er
(4 c
ompa
nies
)
Die
for
plas
tic
mou
ldin
g (H
ard
Tec
h)T
he c
ompa
ny p
rodu
ces
dies
for
inje
ctio
n m
oldi
ng a
nd b
low
mol
ding
.T
hey
desi
gn d
ies u
sing
CA
D te
chno
logy
, an
d th
ey p
rodu
ce d
ies
usin
g el
ectr
ic
erod
ing
mac
hine
and
met
alw
orki
ng
mac
hine
s.
Die
for
plas
tic
mol
ding
(Pla
sK
it)
The
y de
sign
die
s usi
ng C
AD
tech
nolo
gy,
then
tran
slat
e to
CA
M-d
ata
by
com
pute
r.T
here
fore
they
pro
duce
die
by
MC
(mac
hini
ng c
ente
r) a
utom
atic
ally
.
Die
for p
last
ic m
oldi
ng
6-10
T.H
orig
uchi
/MAP
SKI
D37
11.
Pha
rmac
euti
cal
(3 c
ompa
nies
)
G
ener
ic m
edic
ine
(Uni
vers
al)
Mat
eria
ls im
port
ed fr
om A
mer
ica
and
Chi
na
are
used
to m
anuf
actu
re lo
w c
ost g
ener
ic
med
icin
es fo
r Mal
aria
etc
. the
com
pany
ex
port
CO
MES
A. B
ut A
lmos
t no
pers
on
who
hav
e bu
sine
ss a
dmin
istr
atio
n is
in
Ken
ya. T
here
fore
all
man
ager
are
from
In
dia.
Man
ufac
ture
line
for b
us
T.H
orig
uchi
/MAP
SKI
D38
12.
Tex
tile
(3
com
pani
es)
Si
sal b
ags
com
pany
(Bla
ck G
old)
Sisa
l bag
s ar
e so
urce
d fr
om M
acha
kos
and
Kitu
i in
Ken
ya. T
hen
Stra
ps a
re a
ttac
hed
to th
e ba
gs a
ccor
ding
to b
uyer
s’re
quire
men
ts.
2-3
times
in a
yea
r, th
e co
mpa
ny v
isite
d Ja
pan
for s
ale’
s by
the
help
of a
Jap
anes
e or
gani
zatio
n ca
lled
“JET
RO
”.
Tro
user
s co
mpa
ny(E
MK
E)T
he c
ompa
ny h
as o
pene
d a
fact
ory
in a
M
omba
ssa
EPZ
. Thi
s co
mpa
ny m
ight
op
t to
relo
cate
from
Ken
ya, a
fter
its
AG
OA
agr
eem
ent e
xpir
e.A
nd a
ll c
loth
es a
re im
port
ed fr
om
Chi
na.
•
Fact
ory
for S
isal
bag
s
T.H
orig
uchi
/MAP
SKI
D39
13.
Agr
o m
achi
nery
(3
com
pani
es)
Tra
ctor
(Far
m E
ngin
eeri
ng)
The
com
pany
onl
y as
sem
bles
4 tr
acto
rs
in 1
mon
th,
usin
g kn
ock-
dow
n tr
acto
r par
ts
impo
rted
from
Ger
man
and
Eng
land
.B
ecau
se th
e si
zes
of fa
rms
are
beco
min
g sm
alle
r,th
e m
arke
t for
agr
icul
tura
l mac
hine
ry
has
beco
me
smal
l.
T.H
orig
uchi
/MAP
SKI
D40
14.
Con
cret
e P
rodu
cts
(2 c
ompa
nies
)
C
oncr
ete
Prod
ucts
(Bhi
mji
Ram
ji&
Son
s)T
he c
ompa
ny in
Nai
robi
pro
duce
con
cret
e pr
oduc
ts b
y us
ing
Bal
last
.T
he c
ompa
ny c
ontin
ued
unea
rthi
ng b
alla
st
for 6
0 ye
ars
from
the
insi
de o
f its
site
. But
no
w d
ispu
te h
as o
ccur
red
caus
e by
ap
artm
ent i
n ne
ar.
6-11
T.H
orig
uchi
/MAP
SKI
D41
15.
Furn
itur
e/H
andi
craf
t (2
com
pani
es)
Furn
itur
e(F
urni
ture
Inte
rnat
iona
l )W
ith ra
w m
ater
ial i
mpo
rt’s
from
Con
go,
the
com
pany
man
ufac
ture
’s fu
rnitu
re b
y us
ing
mac
hine
ry fr
om G
erm
an a
nd It
aly.
Now
aday
s m
ass
prod
uced
pla
stic
fu
rnit
ure
from
chi
na h
as sl
owly
pe
netr
ated
our
mar
ket a
nd a
re 3
0%
chea
per
in p
rice
.
Han
dicr
aft (
Kap
i)T
he c
ompa
ny’s
ow
ner g
radu
ated
from
the
scho
ol o
f des
igni
ng in
Bri
tain
. An
d al
l go
ods
are
desi
gned
by
her.
The
Hom
e Pa
ge is
put
on
serv
er in
the
USA
to
avoi
d K
enya
n lo
w s
peed
net
wor
k.
T.H
orig
uchi
/MAP
SKI
D42
16.
Flow
er
(2 c
ompa
ny)
Ros
e(Z
ena)
The
com
pani
es p
rodu
ce ro
se.
One
com
pany
hop
e to
exp
ort r
ose
to Ja
pan,
T
here
fore
they
are
look
ing
for
Japa
nese
br
eede
r an
d dr
y-fl
ower
eng
inee
r.
Ros
e (S
her)
The
com
pany
pro
duce
1.5
mill
ion
rose
s/da
y an
d ex
port
to N
ethe
rland
s. T
he c
ompa
ny
have
ano
ther
sam
e si
ze fa
ctor
y in
Eth
iopi
a,
and
Ethi
opia
fact
ory
is b
ette
r th
an K
enya
in
Tax
, Roa
d, S
uppo
rt. T
here
fore
they
ha
ve p
lan
of fa
ctor
y re
loca
tion
.
T.H
orig
uchi
/MAP
SKI
D43
17.
Leat
her
(1 c
ompa
ny)
Leat
her
proc
essi
ng fa
ctor
y(L
eath
er In
dust
ry )
The
com
pany
pro
duce
d le
athe
r fr
om ra
w h
ides
pu
rcha
sed
loca
lly.
Was
hing
, dry
ing
and
dyei
ng
of th
e pr
oduc
ts is
don
e at
the
fact
ory.
100%
of p
rodu
cts
are
expo
rted
to
Indi
a an
d S.
A..
Sinc
e C
hina
buy
s ra
w h
ides
dir
ectl
y fr
om o
ur c
ount
ry, l
ocal
mar
ket p
rice
s
has
gone
up.
D
ue to
this
, num
ber
of le
athe
r pr
oces
sing
com
pani
es r
educ
ed fr
om 2
3 to
6.
T.H
orig
uchi
/MAP
SKI
D44
18.
Tra
nspo
rt
(1 c
ompa
ny)
Tra
nspo
rt (S
igin
onFr
eigh
t )Fr
omN
aiva
sha
and
riftv
alle
yth
ey
tran
spor
t flo
wer
by
trac
k. A
nd h
old
own
cold
room
. And
tran
sfer
EU
by
char
ter
frei
ght.
