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Country Commercial Guides for FY 2000: Kenya Report prepared by U.S. Embassy Nairobi, released July 1999

CHAPTER IX:   BUSINESS TRAVEL

A.   BUSINESS CUSTOMS

There is solid sales potential for U.S. goods and services in Kenya. However, Kenya is a developing country with a complex market. The U.S. exporter should keep certain factors in mind to achieve maximum success.

Given the good business and political relations between Kenya and the U.S., there are significant commercial opportunities for U.S. firms. The principles of customary business courtesy, especially replying promptly to requests for price quotations and orders, are a prerequisite for exporting success. In general, Kenya business executives are relatively informal and open. The use of first names at an early stage of a business relationship is acceptable. Friendship and mutual trust are highly valued, and once an American has earned this trust, a productive working relationship can usually be expected.

Given the competitive market and increasing experience, Kenyan firms are developing expertise in international business. Kenyan buyers appreciate quality and service, and, if justified, are willing to pay extra if they are convinced of a product's overall superiority. The market, however, is very price sensitive. As would be the case in other markets, care must be taken to ensure that delivery dates are closely maintained and that after-sales service will be promptly honored. While there are numerous factors that may interfere with prompt shipment, the U.S. exporter should allow for additional shipping time to Kenya and ensure the Kenyan buyer is continuously updated on changes in the shipping schedules and routing. It is much better to quote a later delivery date that can be guaranteed than an earlier one that is not completely certain. Since Kenyan wholesalers and retailers generally do a lower volume of business than their American counterparts, U.S. firms should be prepared to sell smaller lots than is the custom in the United States.

U.S. firms should maintain close liaison with distributors and customers to exchange information and ideas. Local distributors/representatives should serve as a good source of local market requirement information and as appraisers of product market acceptance. In most instances, mail, fax or telephone communications are sufficient, but the understanding developed through periodic personal visits is the best way to keep distributors apprised of new developments and to resolve problems quickly. Prompt acknowledgment of correspondence by fax or e-mail is recommended.

If the market size warrants, U.S. marketers should seriously consider warehousing in Kenya for speedy supply and service of customers. Local assembly of complete knock down (ckd) kits, especially for electrical and electronic goods, is recommended; this has proven viable in the Kenyan market, and has an import duty advantage. As would be the case in most markets, a vigorous and sustained promotion is often needed to launch products. Products must be adapted to both technical requirements and to consumer preferences, as well as meet Kenyan Government regulations. The GOK is keen to ensure that all imports conform to the stipulated technical specifications; any flaws detected could result in the withdrawal of the product from the market, prosecution of the manufacturer and the retailer/importer, or both. It is not sufficient to merely label a product in conformity with national requirements to achieve successful market penetration. Consumers must be attracted to the product by the label and packaging as well as ease of use.

B.   TRAVEL ADVISORY AND VISAS

Kenya is a developing East African country known for the wildlife in its national park system. Tourist facilities are widely available in Nairobi, on the coast, and in the game parks and reserves.

A passport is required, and a visa is required for transit passengers and for visits of more than 30 days. Visas may be obtained at any Kenyan Embassy or Consulate, or upon arrival at a Kenyan port of entry. Evidence of yellow fever immunization may be requested. There is an airport departure tax of $40 which may be paid in hard currency or Kenyan Shillings. Further information may be obtained from the Embassy of Kenya, 2249 R Street, N.W., Washington, D.C. 20008, telephone (202) 387-6101. There also are Kenyan Consulates General in Los Angeles and New York.

Kenya has recently entered a political transition period, from a system of single-party democracy to a system of multi-party democracy. From time to time, political or ethnic tensions, associated with this transition, increase resulting in localized areas of instability. Although the December 1997 elections were generally peaceful, political meetings and demonstrations, which can be violent, are likely to continue. Visitors should avoid all areas where demonstrations, rallies, and other political protests are taking place. Travelers should follow the print and electronic media to keep abreast of where and when any political rallies and demonstrations are likely to occur, and of the potential for confrontation.

Adequate medical services are available in Nairobi. Doctors and hospitals often expect immediate cash payment for health care services. U.S. medical insurance is not always valid outside the United States. Supplemental insurance with specific overseas coverage, including air evacuation, has proved useful. Outbreaks of Rift Valley fever, cholera, and malaria have occurred in Kenya. Information on other health matters, including the incidence of malaria in the country, can be obtained from the Center for Disease Control's international travelers hotline, telephone (888) 232-3228, autofax at (888) 232-3299 or on the Internet: http://www.cdc.gov/.

There is a high rate of street crime against tourists in downtown Nairobi, Mombasa, and at the coastal beach resorts. During periods when police are occupied due to civil unrest related to political tensions, there may be an increase in street crime and banditry. Reports of attacks against tourists by groups of two or more armed assailants are on the rise. Pickpockets and thieves are also involved in "snatch and run" crimes near crowds. Visitors have found it safer not to carry valuables with them, but to store all valuables in hotel safety deposit boxes or safe rooms. Thieves often snatch watches, jewelry and other objects from open vehicle windows while motorists are either stopped at a traffic light or in heavy traffic.

Armed carjackings are common in Nairobi. There also is a high incidence of residential break-ins. Thieves and con men have been known to impersonate hotel employees, police officers or government officials. Tourists who accept sweet biscuits or juice from new acquaintances on intercity buses in Kenya have been robbed after being drugged by food or drink laced with sedatives. Highway banditry is common on the roads leading to the Somali border. Air travel is the safest means of transportation when visiting any of the coastal resorts north of Malindi. Walking alone or at night in public parks, along footpaths or beaches, and in poorly lit areas can be dangerous. The Kenyan mail system can be unreliable, and monetary instruments (credit cards, checks, etc.) are frequently stolen. International couriers such as Federal Express, United Parcel Service and DHL have proven to be the safest means of shipping envelopes and packages.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and to the nearest U.S. Embassy or Consulate. The pamphlets "A Safe Trip Abroad" and "Tips for Travelers to sub-Saharan Africa" provide useful information on protecting personal security while traveling abroad and on travel in the region in general. Both are available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

Excessive speed, unpredictable local driving habits, and lack of basic safety equipment on many vehicles are daily hazards on Kenyan roads. In addition, vehicle travel outside major cities at night should be avoided due to the poor condition of the roads and the threat of banditry. Severe storms and heavy rains have led to critical damage to roads and bridges. Travelers should consult with the U.S. Embassy in Nairobi and local officials regarding travel conditions.

Up to KSH. 100,000 may be taken out of the country. It is an offense to destroy or deface Kenyan currency. All unwanted Kenyan currency should be surrendered to a commercial bank or Forex Bureau; destruction of the currency could result in a jail term or heavy fine.

In response to increased banditry and incidents of robbery in or near many of Kenya's national parks and game reserves, the Kenya Wildlife Service and police took steps in late 1996 to strengthen security in the affected areas. Travelers who do not use the services of reputable travel firms or knowledgeable guides and drivers are at risk. Safaris are best undertaken with minimum of two vehicles so that there is a backup in case of mechanical failure. Solo camping is always risky.

U.S. citizens are subject to the laws of the country in which they are traveling. Penalties for possession, use, or trafficking in illegal drugs are strictly enforced. The penalty for possession of illegal drugs, including marijuana, is 10 years imprisonment without the option of fine. The penalty for purchasing or selling illegal drugs, including marijuana, is 20 years, with no option of fine.

Water in Nairobi is not potable. In other parts of the country, water also must be boiled or bottled water used. Sealed bottled water is safe to drink and can be purchased in local hotels, restaurants, and grocery stores. Travel by passenger train in Kenya may be unsafe, particularly during the rainy season, because of the lack of routine maintenance and safety checks.

U.S. citizens may register at the Embassy in Nairobi and obtain updated information on travel and security in Kenya. The U.S. Embassy is located on Mombasa Rd, between downtown Nairobi and Jomo Kenyatta Airport. The telephone number is (254 2) 537-800. The mailing address is P.O. Box 30137, Nairobi, Kenya. The APO address is Unit 64100, APO AE 09831-4100.

Department of State travel information is available at internet address: http://travel.state.gov. U.S. travelers may hear recorded information by calling the department at 202-647-5225 from a touch tone telephone or receive information by automated fax by dialing 202-647-3000 from a fax machine.

The basic monetary unit is the Kenya Shilling (KSH.). The shilling comes in paper currency of Sh. 50, Sh. 100, Sh. 200, Sh. 500 and Sh. 1,000 notes. Coins are issued in 5, 10 and 50 cents, and 1, 5, 10 and 20 shilling units. The shilling is subdivided into units of 100 cents.

With the freeing of foreign exchange regulations, the Kenya Shilling floats daily. The shilling has recently lost ground from steady appreciation against major hard currencies. As of January 2000, the mean exchange rate was KSH. 72/$1. Visiting business executives should check the financial section of the daily newspapers for the current exchange rate which could change radically and quickly.

Major international credit cards are usually accepted with proper identification such as a passport. Traveler's checks are usually accepted by banks and major hotels.

C.   HOLIDAYS AND BUSINESS HOURS

A 40-hour workweek is the norm for offices and factories. Office working hours are 8:00 am to 5:00 p.m. with lunch from 1:00 p.m. to 2:00 p.m. Banking hours are from 9:00 am to 3:00 p.m. Most retail stores are open from 9:00 am to 6:00 p.m.

The following are the official statutory holidays when most commercial offices are closed:

New Year's Day		January 1
Id-Ul-Fitr		Variable 
Good Friday		Variable (March/April)
Easter Monday		Variable (March/April)
Labor Day		May 1
Madaraka Day		June 1
Moi Day			October 10
Kenyatta Day		October 20
Jamhuri Day		December 12
Christmas Day		December 25
Boxing Day		December 26

D.   BUSINESS INFRASTRUCTURE

Transportation:   Taxis and rental automobiles are available in large towns and cities. Traffic moves on the left-hand side of the road. Visiting American business executives rarely use the bus system or trains.

Airports:   Kenya has two major airports (Jomo Kenyatta in Nairobi and Moi in Mombasa). Inland passenger and freight are conveyed by the road and rail network.

Lodging:   Kenya has first-rate hotels in its major cities, and a range of lodges in the game parks. Business travelers are advised to make their hotel reservations in advance, especially during tourist high season from July to March.

Language:   The official languages of Kenya are English and Kiswahili. However, many different languages and dialects are spoken throughout the country. The commercial language is English. Language barriers pose no problems, but in legal documents it is advisable to have lawyers who can interpret between American English and Kenyan English usage.

Communications:   The telecommunications system, which includes direct dialing telephone service and fax to the U.S., is available throughout the country. Interruptions in service do occur and simple local calls often are hard to complete. Some telecommunication links, especially those via microwave, do not meet the quality requirements for transmission of high speed business data and communications.

Housing:   Adequate housing is available. However, security concerns should be seriously considered in the location of housing, and in protective walls and security guards. More and more expatriate business executives are leasing compound housing, as these arrangements are more modern and secure.

Utilities:   Water and 220 volt 50 Hz single phase and three phase electricity are available. The British three blade plug is used widely. Interruptions of electrical power supply frequently occur, including cuts in industrial zones during evening peak hours. Most housing has attic reserve water tanks. Permanent or long term residents should consider purchase of standby electrical generators as electricity demand often exceeds generating capacity with frequent interruptions or brown outs. Bottled LPG is available, but supply cannot always be guaranteed.

Health:   Adequate medical services are available in Nairobi. Malaria is not prevalent in high elevations, but precautions must be taken in lower areas, especially in the coastal regions. Residents should follow a strict sanitary regime in washing and preparing food. Other precautions should be taken to avoid contracting endemic tropical diseases.

Food:   There is plenty of high quality food available, including a large variety of fresh fruits, vegetables, meats, poultry and fish. Fresh milk and milk products are available. With the lifting of import controls, a variety of canned and prepared foods are available. However, imported foodstuffs are very expensive. Periodic shortages of milk, sugar, flour, etc. have occurred in the past. Fruits and vegetables may be seasonal.