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Serving
Students at
Santa Ana
College and
Santiago
Canyon College
KENYA
Business Tips
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Background
Kenya
is a developing east African country known for its wildlife and beautiful
national parks.
The capital
city is Nairobi. The second largest city is Mombasa, located on the
southeast coast. Tourist facilities are widely available in Nairobi,
the game parks, the reserves and on the coast.
The main
economic activities are livestock raising by Kenyans and wildlife viewing
by foreign tourists. Both the wildlife and the livestock are able
to graze on the vegetation that grows under the dry conditions. Trees,
such as the acacia, are scattered throughout the bushy grasslands.
The herders, such as the Masai (Maasai), raise cattle, goats, and sheep
and move them seasonally from place to place to give them access to water
and pasture.
Kenya's
chief exports are tea and coffee; fluctuations in their world prices have
tremendous economic impact. The leading imports are machinery, transportation
equipment, consumer goods, and petroleum and petroleum products.
Major
trading partners are the United Kingdom, Uganda, Tanzania, and the United
Arab Emirates. Kenya's population growth continually exceeds the
rate of economic growth, resulting in large budget deficits and high unemployment.
The country has a well-developed transportation system.
Business
Tips
Kenyans'
work ethic can be described by the saying kula jasho, which means, "eat
from your labor". They are hard workers and in many cases must struggle
to feed their families. The majority of Kenyans live in rural areas. Almost
three-quarters of the work force are farmers. The rest work in industry
or tourism.
Business
customs are similar to those found in the United Kingdom or in India and
present no particular difficulty to most foreign companies. There are many
competent businessmen of all ethnic groups in Kenya and it is not difficult
for multinational firms to find able agents or partners here.
Kenya is a
capitalist country with an economic policy that emphasizes the role of the free
market. Despite heavy regulation
in most areas of the economy, it has one of the most open systems on the
African continent. Features of the economy include the use of market
based pricing incentives, a liberal investment code, and a liberalized
foreign exchange system.
There
is solid sales potential for foreign goods and services in Kenya.
However, Kenya is a developing country with a complex market. The
business person should keep certain factors in mind to achieve maximum
success.
Visitors
to Kenya should show respect for the president and all he symbolizes.
They should stop before a presidential motorcade, stand for the national
anthem, and under no circumstances destroy or deface a portrait of the
president.
Punctuality
Punctuality
is important to Kenyan business people, and the business visitor should
make every effort to be on time for appointments. As a general rule,
appointments should be made before a visit in person. The principles
of customary business courtesy, especially replying promptly to requests
for price quotations and orders, are a prerequisite for success.
Business
Hours
A 40-hour
workweek is the norm for offices and factories. Offices working hours
are 8:00 a.m. to 5:00 p.m. with lunch from 1:00 p.m. to 2:00 p.m.
Most retail stores are open from 9:00 a.m. to 6:00 p.m.
Holidays
January
1
New Year
February
9-11 Ramadan
Feast **
March
28
Good Friday **
March
31
Easter Monday **
April
17-19
Sacrifice Feast
May 1
International Labor Day
June
1
Madaraka Day
October
20
Kenyatta Day
December
12 Independence
Day
December
25 Christmas
Day
December
26 Boxing
Day
** Some
of the above dates are approximations, and vary from year to year. If a
holiday falls on a Friday (which is sometimes taken as a day off), the
holiday is observed on the following day.
Many businesses
in Kenya close for at least part of the three-day Muslim holiday of Id
ul-Fitr. During the month of Ramadan devout Muslims abstain from food and
drink during daylight hours. Business travelers should not drink,
eat, or smoke in public during daylight or in the presence of fasting Muslims.
Muslim holidays follow a lunar calendar and are do not always fall on the
same dates each year, or even in the same month from one year to the next,
so check with Kenyan authorities in advance.
Business
Relationships
In general,
Kenya business executives are relatively informal and open. Personal
visits are warmly welcomed and generally regarded as the most efficient
method of establishing new trade contracts. Friendship and mutual
trust are highly valued, and once an American has earned this trust, a
productive working relationship can usually be expected. Correspondence
and personal calls each play a significant role in the conduct of business
in Kenya; expeditious handling of correspondence is expected and greatly
appreciated.
Maintenance
of relationships with distributors and customers to exchange information
and ideas is paramount. In most instances, mail, fax or telephone
communications is sufficient, but the understanding developed through periodic
personal visits is the best way to keep distributors appraised of new developments
and to resolve problems quickly. Prompt acknowledgement of correspondence
by airmail or fax is recommended.
Because
of Kenya's broad ethnic mixture, many members of which have international
connections, the Kenyan business scene is relatively sophisticated for
a developing country. Kenya is a very diverse country with numerous
indigenous ethnic groups and an influential Asian business community.
The most important ethnic groups are the Kikuyu (21 percent), Luhya (14
percent), Luo (13 percent), Kalenjin (11 percent), and Kamba (11 percent).
The Asians comprise less than one percent of the population but carry economic
weight far out of proportion to their numbers. There are also a considerable
number of British origin "White Kenyans" whose families opted for Kenyan
citizenship at the time of independence.
Kenya's
population is varied. Traditional herders, Arab Muslims, and cosmopolitan
residents of Nairobi contribute to the culture. The standard of living
in major cities ranks high in Sub-Saharan Africa. Most city workers
retain links with their rural, extended families and leave the city periodically
to help work on the family farm.
Negotiating
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 will be closely maintained and that
after-sales service will be promptly honored.
On the
street, in the market and at small, out-of-the-way shops, bargaining is
the rule. Don't be afraid to bargain; the seller doesn't expect to
sell the item at his first stated price. If he quotes a price, don't
answer, just scoff and he will probably drop the price in half. Then
you offer one third of that prices and he'll bulk. So you raise it
to half of his offer and settle a a bit more. It's always a good
idea to figure the cost in U.S. currency so that you don't get caught overpaying
for an item. Sometimes the seller will want to trade for hats or
T-shirts with emblems or designs. Children often ask for pens, sweets,
or money, but it is best that you do not give away anything, so as not
to encourage begging.
Driving
In Kenya,
one drives on the left side of the road, which can be very disorienting
to those not accustomed to this. Excessive speed, unpredictable local driving
habits and manners, poor vehicle maintenance and the lack of basic safety
equipment on many vehicles are daily hazards on Kenyan roads. When there
is a heavy traffic jam either due to rush hour or because of an
accident,
drivers will drive across the median strip and drive into oncoming traffic.
As a result, there are often fatal accidents involving either long-distance,
inter-city buses, or local buses. Also, vehicle travel outside major cities
at night should be avoided due to the poor road and street light conditions,
and the threat of banditry.
Traveling
The rains
generally don't affect travelers ability to get around. However,
during the rainy season, many unpaved roads are passable only with four-wheel
drive vehicles with high clearance. Severe storms and heavy rains
in late 1997 and early 1998 did lead to extensive flooding and critical
damage to roads and bridges, making travel and communications difficult
in many parts of the country. Although major projects have been undertaken,
some roads are still impassable. Travelers are urged to consult with
the U.S. Embassy in Nairobi and local officials regarding road conditions.
Travel
by passenger train in Kenya may be unsafe, particularly during the rainy
season, because of the lack of routine maintenance and safety checks.
Health
Issues
Visit
your doctor several weeks before you go to Kenya. Vaccinations and
malaria pills are needed. Malaria pills are taken for 2 weeks prior
to travel.
Use bottled
water. Do not drink the water from the tap.
Don' t
swim in lakes or rivers as you might get sick from bacteria and parasites.
Links
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