National Trade Policy

In order to enhance export growth through value addition in export oriented manufactures and in the services sector as well as pursuing diversification to fully exploit the export opportunities in the emerging markets, Kenya has elaborated a national policy trade in 2009. The national trade policy aims Kenya to become an efficient domestic market and export led globally competitive economy while the mission is to facilitate Kenya’s transformation into a competitive export led economy enhance regional integration and widen participation in both domestic and international trade.
The Trade Policy mission will be achieved through the following broad objectives: (i) promotion and expansion of Kenya’s exports of goods and services; and (ii) development of an efficient and competitive domestic market.
The policy recognizes international trade as a strategic priority in realizing the objectives of raising business productivity; encouraging increased international trade and investment; stimulating and supporting MSMEs to participate more in international trade; enhancing the competitiveness in both the export and domestic markets; addressing market distortions; encouraging value additions and diversification; and improving market access. It has equally identified various programmes for implementation in order to address the constraints and challenges affecting the country’s development of international trade.
The domestic trade policy aims at improving business environment and elaborates the government role and that of the private sector in trade and investment promotion. The policy further recognizes and encourages public-private partnership in implementing various programmes and activities. The distinct domestic trade elements covered in the policy include: Distribution and Wholesale Trade; Retail Trade and Informal Trade. Some of the key challenges include un-conducive licensing and regulatory framework; high transportation costs; inadequate logistics and ICT capacities and skills; access to affordable credit; inadequate business management skills; weak supply chains; and poorly serviced business premises, among others.
The policy covers e-commerce which is prioritized in the Kenya’s Vision 2030 which seeks to mainstream e-Trade within the overall economy. In order for this to be achieved, the government will focus on infrastructure development; market improvement; skills and technology upgrading; improved financial transactions; and improved Public Private Partnerships for the sub-sector In order to have a coherent and integrated national trade policy, the linkage and synergy of both domestic and international trade policy are important. In order to achieve its objectives the National Trade Policy prioritizes and sequences issues to be addressed as follows: policy and regulatory framework; infrastructure development; institutional strengthening; market development; and trade finance support.
The policy is presented in three sections comprising ten chapters. Section A gives background of the policy and comprises chapter one which gives the introduction. Section B on international trade comprises chapter two, three and four which highlight international trade policy regime, international trade strategies and objectives, international trade policy programmes, and complementary support policies and measures respectively. Section C on Domestic Trade policies comprises chapter five, six, seven, which focus on distribution and wholesale trade, retail trade, and informal trade respectively. Section C covers trade related issues, e-commerce and integration plans in chapters eight, nine and ten respectively.