weighted score 4.6 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Kenya
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Kenya as a sourcing destination.
Labour cost competitiveness
7
Manufacturing wages significantly below China, Eastern Europe, and Turkey. Minimum wage varies by sector; horticulture and textile workers among the lowest-cost in global sourcing.
Supply base depth
3
Limited manufacturing ecosystem beyond horticulture and tea processing. Light manufacturing (textiles, leather) exists but lacks the multi-tier supplier depth of Asian competitors.
Logistics & infrastructure
4
Mombasa port functional but congestion common. Standard Gauge Railway improves Mombasa-Nairobi corridor. Road infrastructure outside major routes remains challenging. Cold chain for flowers is well-established.
Workforce skills
5
Strong English proficiency. Growing tech talent pool (Silicon Savannah). Horticulture workforce experienced. Technical and vocational training expanding but skills gaps remain in advanced manufacturing.
Scalability
6
Significant room for growth in horticulture, textiles (AGOA-eligible), and BPO services. Land availability and young population support expansion. Power supply reliability remains a constraint.
Ease of doing business
4
Kenya ranks among the better African business environments. Regulatory framework is improving but bureaucracy, corruption, and land tenure complexity persist. Special Economic Zones at Athi River and Naivasha offer incentives.
Trade access & tariffs
4
EU-EAC EPA provides duty-free access. AGOA eligibility for US market (subject to renewal). EAC common market provides regional access. However, non-tariff barriers and customs delays remain.
Sustainability baseline
4
Kenya generates over 90% of electricity from renewables (geothermal, hydro, wind). Lake Turkana Wind Power is Africa's largest wind farm. However, deforestation pressure and water stress in flower-growing regions are concerns.
Innovation & IP
5
M-Pesa and Safaricom demonstrate world-class fintech innovation. Growing startup ecosystem. IP protection framework exists but enforcement capacity is limited. R&D investment as share of GDP remains low.
Quality standards
4
Flower and tea sectors operate to EU phytosanitary and food safety standards (KEPHIS oversight). Kenya Bureau of Standards provides certification. Quality variance is higher in less export-oriented sectors.
Trade Access & Market Position
Trade Access & Market Position
- EU-EAC EPA
- Kenya is a signatory to the EU-East African Community Economic Partnership Agreement, providing duty-free and quota-free access to the EU market for most goods. This is a significant advantage over competitors relying on standard GSP or MFN tariffs.
- Cut flower exports
- Kenya is the #3 global supplier of cut flowers, primarily roses. The flower industry is centred around Lake Naivasha and generates over USD 1 billion annually. Dutch auction houses (Royal FloraHolland) are the primary EU entry point.
- Tea exports
- Kenya is the world's largest exporter of black tea by volume, with the Mombasa Tea Auction serving as the primary price-setting mechanism for East African teas. CTC tea dominates; orthodox grades are a smaller but growing segment.
Innovation & Workforce
Innovation & Workforce
- Silicon Savannah
- Kenya's tech ecosystem — anchored by M-Pesa (mobile money, launched 2007) and Safaricom — has made Nairobi a leading African tech hub. The iHub and Konza Technopolis projects aim to scale this into broader digital services and BPO capacity.
- English proficiency
- English is an official language alongside Swahili. Kenya's English proficiency is strong relative to most African and Asian sourcing alternatives, reducing communication friction for EU and US buyers.
- Demographics
- Population of approximately 55 million with a median age under 20. The young, growing workforce represents long-term labour supply depth for labour-intensive sectors including horticulture, textiles, and light manufacturing.
- Mombasa port
- Mombasa is East Africa's largest port and the primary gateway for Kenyan exports. The Standard Gauge Railway connects Mombasa to Nairobi. Port modernisation and Lamu Port (LAPSSET corridor) are expanding capacity.