The GoK has unveiled ambitious plans to establish around 50 commercial centers in various countries worldwide, as well as several warehouses and distribution hubs, to promote Kenyan goods and services in new markets. This initiative is outlined in the recently launched Fourth Medium Term Plan (MTP IV) 2023-2027.
The commercial centers project aims to open new markets for Kenya trade and accelerate export promotion across priority sectors such as tea, dairy, leather, edible oils, cotton, textiles, apparel, and construction materials.
Countries earmarked for these commercial centers include Nigeria, Senegal, the United States (Los Angeles, Dallas, New York, Chicago, Atlanta), Morocco, Algeria, South Africa, Ghana, Germany, South Korea, and China. Others are the Democratic Republic of Congo, Ethiopia, Angola, Egypt, the United Arab Emirates, and the United Kingdom.
In addition to the commercial centers, the government plans to set up warehouses and distribution hubs in strategic locations like the United Arab Emirates (Dubai), Saudi Arabia (Jeddah, Riyadh), Nigeria (Lagos), China (Guangzhou), South Africa (Cape Town, Johannesburg), South Korea (Seoul), and the DRC (Lubumbashi, Goma). The goal is to enhance the global presence, distribution, and access of Kenyan exports.
The government has allocated an indicative budget of KSh 3.73 billion (approx. USD 28 million) to maintain the 50 commercial centers over four years. Meanwhile, KSh 3.392 billion (USD 25.7 million) will be set aside for establishing the 10 warehouses, with KSh 1.47 billion (USD 11.1 million) budgeted for the final year.
These ambitious projects, spearheaded by the Kenya Export Promotion and Branding Agency (KEPROBA) and the State Department of Trade, are expected to significantly boost Kenya’s export revenues from 2024 to 2027.
Other measures outlined in the MTP IV to bolster exports include increasing the total value of Kenyan exports globally, coordinating trade negotiations, developing technology-driven market access platforms, organizing the informal sector into cooperatives, digitizing MSMEs, and promoting subcontracting and franchising.