Kenya Research Paper

KENYA: THE PRIDE OF AFRICA
TERN PROJECT OF INTERNATIONAL BUSINESS

Introduction

Kenya is still the primary focus of all adventure travel in Africa. It is one of the finest and undoubtedly the most famous safari destination in the world. Safari, however, is by no means the only reason to visit Kenya, for the attractions of its rich culture and diverse environments are considerable.
PHYSICAL
1. GEOGRAPHY
Kenya is situated right along the equator, on the eastern coast of the African continent. Its coastal region is on the southeast, and to the east lies Somalia. Ethiopia is to the north, the Sudan to the northwest, and Uganda directly to the west. The southwestern border of the country is marked by Lake Victoria, and southward lies
Tanzania. Kenya's geography is marvelously varied. While much of northeastern Kenya is a flat, bush-covered plain, the remainder of the country encompasses pristine beaches, scenic highlands and lake regions, the Great Rift Valley, and the magnificent Mount Kenya.

Climate
Kenya's climate varies across the country, from the tropical humidity of the coast, the dry heat of the savannah or semi-arid areas and the cool air of the highlands.
Temperatures in these areas are fairly constant year round with an average of 27°C (80°F) at the coast, 21°C to 27°C (70°F to 80°F) in the hinterland, while in Nairobi and the highlands over 5,000 ft, the daytime temperatures normally range between 19°C and 24°C (66°F to 75°F). Most parts of the country experience two rainy seasons: the 'long rains' falling over a ten week period between April and June, and the 'short rains' over a five week period between November and December. The rain tends to fall mainly at night and is usually a short and heavy tropical
downpour.
History
Kenya has known the presence of humankind since the very earliest development of our species. Moreover, the region has long been a migratory path, passed through by wave upon wave of peoples from all over Africa and, later, from the Middle East as well.
Kenya was a British colony and gained its independence in 1963. The following year, Kenya became a Republic with Kenyatta as its first President. In the same year Kenya joined the British Commonwealth.
- Language
Swahili and English
Ethnicity
Kenya has a population of 40.9 millions which is subdivide in different ethnic groups, but the main groups are Kikuyu 22%, Luhya 14%, Luo 13%, Kalenjin 12%, Kamba 11%, Kisii 6%, Meru 6%, other African 15%, non-African (Asian, European, and Arab) 1% ( CIA Word Fact book).
Majors’ cities The capital city is Nairobi. The other cities are Mombasa and Kisumu. The other major towns are headquarters in their respective provinces. In these towns are luxury hotels and lodges located in these major towns.

2. INFRASTRACTURE
Aviation: Kenya has well developed air transport infrastructure, with international airports in Nairobi and Mombasa and more than 150 airstrips throughout the country. Nairobi's Jomo Kenyatta International Airport serves more than 30 airlines providing direct scheduled services to major capitals in Europe, the Middle East and Asia. Wilson Airport in Nairobi, which handles light aircrafts, is one of the busiest in Africa. The rather controversial Eldoret International Airport was recently built for what appear to be mostly political reasons, since there is really not enough money to maintain the existing international airports.
Seaports: Mombasa is the principal seaport of Kenya and is one of the most modern ports in Africa and also serving landlocked neighboring countries. In addition, the port has specialized facilities including cold storage and warehousing, and its container terminal is one of the best equipped in the region. Movement of containers is further facilitated through new inland depots in Nairobi, Kisumu and Eldoret. The port of Mombasa is linked with all the world's major ports with over 200 sailings per week to ports in Europe, North and South America, Asia, the Middle East, Australia, and the rest of Africa. Freight haulage through Mombasa was 8.2 million tones in 2012( Doing business in Kenya) .
Roads: Kenya has an extensive road network connecting most parts of the country. Paved roads connect all major commercial centers. This transportation mode handles about half of the freight traffic in Kenya, and offers competitive freight rates Kenya and neighbor’s countries of Uganda, Burundi, Rwanda, and DR of Congo have established the Northern Corridor Transport Agreement which facilitates transportation of their goods to and from the port of Mombasa. However, in the last several years, these roads have been mostly unmaintained, and have deteriorated to the point where they are largely unusable.
Railways: Kenya is served by a single-track railway system running from Mombasa through Nairobi to Uganda with branches to Nanyuki, Kitale and Kisumu. There is another branch, which connects Kenya to Tanzania through Taveta.
Telecommunications: The country has a well-established communication system. Kenya Posts and Telecommunications Corporation provide international direct dialing and subscriber trunk dialing, mobile telephones, telex, facsimile, data communication and related services. Substantial investment for the expansion of these facilities is under way. Various Internet Service Providers have very recently started up in Kenya.
SOCIETAL
1. Culture The Kenyan PeopleKenya is not a homogenous country ethnicity wise. The make-up of Kenyans is primarily that of 13 ethnic groups with an additional 27 smaller groups. The majority of Kenyans belong to ‘Bantu’ tribes such as the Kikuyu, Luhya and Kamba. There are also the ‘Nilotic’ tribes such as the Luo, Kalenjin, Maasai and Turkana. The ‘Hamitic’ people include the Turkana, Rendille and Samburu. Around 13% of the population are of non-African descent, i.e. Indian, Arab and EuropeaCultural Values | - Kenyans love to party, and the music style known, as benga is the contemporary dance music that rules.- Most Kenyans place great importance on the family and the traditional values and responsibilities associated with it.- Kenyan families tend to be large, and households often include many members of the extended family.The Role of the FamilyAs you might expect in a group-orientated culture, the extended family is the basis of the social structure. It includes relatives on both sides of the family as well as close friends. Quite often the husband’s parents will live with the nuclear family when they get older and can no longer care for themselves. FoodStaple foods include; Ugali, rice, bread, chapati (fried paste of wheat powder) Beef, chicken, goat, Tilapia (a freshwater fish) and other vegetables2.ReligionThe Kenyan Constitution guarantees freedom of religion. Around half the population are Christians, 10% Muslim and there are small Hindu and Sikh minorities. The balance of the population follows traditional African, often animist, beliefs. Christians tend to be concentrated in the west and central sections of the country while Muslims cluster in the eastern coastal regions.
Most Kenyans interweave native beliefs into a traditional religion. 3. Education Kenya has a developed education system, which has a 8-4-4 system, with 8 years of primary, 4 years of secondary and 4 years of university education. It is undergoing slow but sure development through the effort of the government. There are a number of schools in Kenya, including some international schools, which incorporate international systems of education like American, British, French and German. Primary school, which children attend from the age of seven to the age of fourteen, is free. Secondary school is prohibitively expensive for most of the population. Only half of all children complete the first seven years of schooling, and only one-seventh of these continue on to high school. Kenya's education system has been plagued with widespread accusations of cheating, and there is a shortage of qualified teachers to educate the burgeoning population of school-age children.4. Political lifeGovernment. Kenya is divided into seven provinces and one area. The president is both chief of state and head of the government. He is chosen from among the members of the National Assembly, and is elected by
popular vote for a five-year term. The president appoints both a vice-president and a cabinet. The legislature is the unicameral National Assembly, or Bunge. It consists of 222 members, twelve appointed by the president and the rest elected by popular vote.Leadership and Political Officials. According to Kenya's constitution, multiple parties are allowed, but in fact it is one party, which dominate Kenya African National Union (KANU) that controls the government.5. Legal systemKenya has a common law system similar to that of Britain. There are also systems of tribal law and Islamic law, used to settle personal disputes within an ethnic group or between two Muslims. Citizens are not granted free legal aid except in capital cases, and as a result many poor Kenyans are jailed simply for lack of a legal defense. Kenya has a spotty record in the area of human rights, and does not allow independent monitoring of its prison system.6. EconomyPopulation: 40.9 millionGDP (PPP): $71.4 billion, 5.0% growth in 2011, 5-year compound annual growth 4.3%$1,746 per capitaUnemployment: 40.0% (2008)Inflation (CPI): 14.0%FDI Inflow: $335.2 millionPublic Debt: 48.9% of GDPForeign Exchange: Kenyan shilling Kenya is the regional hub for trade and finance in East Africa and the natural entry point to the region. The country has a market-based economy with a liberalized foreign trade policy.Macroeconomic reviewKenya's economy will grow an estimated 5.7 percent in 2013 before accelerating to 6 percent in 2014, the World Bank said on Monday, but warned structural reforms were needed to improve the business environment and attract foreign investment. "The economy is still operating below its potential and remains vulnerable to external shocks, which undermines its prospects for growth and poverty reduction. This can be cushioned by increasing both domestic and foreign savings," the bank said in its latest economic update report for Kenya. Kenya's economy grew by 4.6 percent in 2012, according to the government, lagging its east African rivals.East African Community (EAC)Through the EAC, the member states are hoping to boost regional trade and commerce. The members are; Kenya, Uganda, Tanzania, Rwanda and Burundi. The trade bloc aims to work towards economic policies that are pro-market, pro-private sector and pro-liberalization. Though significant progress has been made in the bloc’s integration progress, the customs union and the common market are yet to be fully operational.IndustriesKenya is the most industrialized country in East and Central Africa. The main export partners for Kenya include the rest of the East African region as well as the UK, the Netherlands and the US. Main import partners include China, India, United Arab Emirates (UAE) and South Africa.- Agriculture: has over the years been the backbone of Kenya’s economy and the country has therefore been the source of many agricultural products for export such as tea, coffee, corn, wheat, sugarcane, fruit, vegetables; dairy products, beef, pork, poultry, eggs .- Tourism is another main industry in Kenya. Having realized the importance of tourism to the economy, the Kenyan Government has been working extremely hard to further promote tourism to attract tourists and travellers from around the world.- Manufacturing industry. Kenya is mostly involved in the export of raw products but is now working towards keeping more of the added-value processes in the country.Kenya does not have a well-established oil industry, but recent discoveries of oil in the Northern part of the country may change that. It is the first time that Kenya has made such a discovery, but the commercial viability of the findings has still not been confirmed.COMPETITIVE FIRMS1.Protection intellectual PropertyPatentsPatents are registered with the Kenya Industrial Property Institute (KIPI), which is a Government department under the Ministry of Trade and Industry. Kenya is a member of African Regional Industrial Property Office (ARIPO). A Patent provides its owner the protection of the invention. Inventors wishing to protect their inventions in these countries may file one application in Kenya and designate any or all them. Kenya is also a member of the World Intellectual Property Organization (WIPO) World Intellectual Property Organization WIPO, which administers the international Patent Cooperation treaty (PCT).TrademarksA trademark is a form of property with considerable value acquired through goodwill. It can be sold, given or otherwise transferred to another party through a transaction referred to as an assignment. Trademarks are registered at the Kenya Industrial Property Institute (KIPI) and last for an initial term of 10 years. 2. To 10 biggest companies in Kenya There are hundreds of companies in Kenya either indigenous or those stared by foreign investors. However, the top 10 companies in Kenya are:- Kenya Airways: is the most respected company in the country. It has over 100 destinations globally. Also it is one of Africa’s best performing airlines evident through is financial performance.- Safaricom Limited: thhe biggest communication network provider. It has over 18 millions subscribes across Kenya; - East African Breweries Limited: manufactures high quality beer, wines and spirits. Equity Bank- National Media - Kenya Commercial Bank- Toyota Kenya: most trusted by most Kenya drivers. The company has developed various products to suit various group of people.- British American Investment: is leading insurance and financial company in the country- Total Kenya Limited- Bamburi CementB. MARKET CHALLENEGES Kenya’s dubious distinction of being one of the most corrupt countries in Africa must be addressed. While corruption is allowed to flourish with impunity, violence cannot be resolved. Transparency International has ranked Kenya 147 out of 180 on the Corruption Perception Index for 2008, along with Russia, Syria and Bangladesh. Kenyan politicians remain some of the highest paid in the world, making between $8,000 and $10,000 a month. Corruption scandals involving corn and oil supplies in Kenya, coupled with a devastating drought, have even left more than 10 million people with a severe shortage of water and food. Over a million school-going children who rely on school feeding programs are in danger of starving. Only 20 million bags of maize were harvested for this year, while the annual consumption is 33 million bags. Over 100,000 heads of livestock have died, prompting the pastoralists to leave for Ethiopia, Sudan and Uganda. C RECOMMENDATION AND CONCLUSION. There is a strong incentive for the Kenyan government to enact immediate and sustainable reforms to regain its attractive standing with potential foreign investors. 1.There needs to be an intensification of the efforts to prosecute cases of corruption, to train police and other law enforcement officials to obey and enforce anti-corruption laws, raise awareness, and stress transparency on all levels of Kenya’s political and economic spheres. The developed countries can play a key role in building or reinforcing anti-corruption laws by strengthening civil society voices in Kenya. 2. An overhaul of the present constitution would restore the people’s confidence in governance, in particular, the judiciary system. Kenyan civil society must remain vocal and outspoken to encourage politicians and leaders to reconcile differences through development schemes that address the inequalities facing Kenyan citizens. Undoubtedly, the Kenyan people, civil society, and politicians have the tools to replace a cease-fire with a sustainable peace. ReferenceBriceno-Garmendia, C. M., & Shkaratan, M. (2011). Kenya's infrastructure: a continental perspective. Lind, J., & Howell, J. (2010). Counter-terrorism and the Politics of Aid: Civil Society Responses in Kenya. Development & Change, 41(2), 335-353. doi:10.1111/j.1467-7660.2010.01637.xMcCann, G. (2010). Ties That Bind or Binds That Tie? India's African Engagements and the Political Economy of Kenya. 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