Policy Case - National Trade Policy Kenya

REPUBLIC OF KENYA

MINISTRY OF TRADE

NOVEMBER 2008

APRIL 2009

NATIONAL TRADE

POLICY

EFFICIENT GLOBALLY

COMPETITIVE ECONOMY

2

TABLE OF CONTENTS ...................................................................................................................... PAGE

LIST OF ACRONYMS ................................................................................................................................ 4

EXECUTIVE SUMMARY ............................................................................................................................ 6

CHAPTER 1: BACKGROUND ............................................................................................................ 10

1.1 INTRODUCTION ................................................................................................................................... 10

1.2 ROLE OF TRADE IN THE ECONOMY ....................................................................................................... 10

1.3 CURRENT TRADE POLICY DISPENSATION ............................................................................................... 12

1.4 NEED FOR A COHERENT TRADE POLICY ................................................................................................ 13

1.5 FORMULATION OF AN INTEGRATED TRADE POLICY .................................................................................. 13

1.6 NATIONAL TRADE POLICY VISION, MISSION AND OBJECTIVES .................................................................. 13

CHAPTER 2: POLICY ON INTERNATIONAL TRADE ........................................................................... 15

2.1 INTRODUCTION ................................................................................................................................... 16

2.2 CURRENT INTERNATIONAL TRADE POLICY REGIME .................................................................................. 16

2.3 IMPORT POLICIES, PROCEDURES AND INSTITUTIONS ............................................................................... 18

2.4 EXPORT POLICIES AND MEASURES AFFECTING EXPORTS ......................................................................... 22

CHAPTER 3: STRATEGIES AND PROGRAMMES FOR PROMOTION OF ........................................... 25

INTERNATIONAL TRADE ....................................................................................................................... 25

3.1INTRODUCTION .................................................................................................................................... 25

3.2MARKET ACCESS ................................................................................................................................. 25

3.3TRADE FACILITATION ............................................................................................................................ 29

3.4INSTITUTIONAL CAPACITY AND COORDINATION MECHANISMS .................................................................... 31

3.5SUPPLY CAPACITY ................................................................................................................................ 34

3.6INFORMATION FLOW ............................................................................................................................ 35

CHAPTER 4: COMPLEMENTARY SUPPORT POLICIES AND MEASURES .......................................... 37

4.1 INTRODUCTION ................................................................................................................................... 37

4.2 TRADE FACILITATION MEASURES .......................................................................................................... 37

4.3 INFRASTRUCTURE NEEDS AND DEVELOPMENT ....................................................................................... 37

4.4 HUMAN CAPITAL DEVELOPMENT ........................................................................................................... 38

4.5 TRADE FINANCE SUPPORT MEASURES .................................................................................................. 38

4.6 SUPPORTING THE COMPETITIVENESS OF BUSINESS SERVICES ................................................................. 39

4.7 TELECOMMUNICATIONS AND WEB ACCESS ............................................................................................ 39

CHAPTER 5: DISTRIBUTION AND WHOLESALE TRADE ........................................................................ 42

5.1 INTRODUCTION ................................................................................................................................... 42

5.2 CURRENT POLICY REGIME .................................................................................................................... 43

5.3 CONSTRAINTS AND CHALLENGES .......................................................................................................... 43

5.4 SECTOR STRATEGY AND GOALS ............................................................................................................ 45

5.5 POLICY PROGRAMME AND PROJECTS .................................................................................................... 47

5.6 OVERALL POLICY FOR THE SUB-SECTOR ................................................................................................. 47

5.7 IMPLEMENTATION, MONITORING AND INSTITUTIONAL RESPONSIBILITIES ...................................................