China's Kenyan success secrets are revealed

Having the right products, a good market entry strategy and carving a niche are some of the key reasons that small private Chinese companies thrive in the lucrative-yet-competitive Kenyan market.

Several have been able to penetrate not only the Kenyan but the entire East African market, which boasts a population of 130 million and a middle class estimated at 30 million.

Jacky Liu, CEO of Orient Pearl ltd, says one of the key ways to penetrate the market is having a deep knowledge of Kenya. This includes doing a lot of research about the market and the needs of local people.

"There is a very stiff competition in Kenya so, to find out where their advantages lie, businesses should do thorough research. This is in addition to understanding Kenyan culture, lifestyle and the economy," says Liu.

When he launched his company, Liu says the market needed his products, hence it didn't find it difficult to grow.

He says there are many opportunities in the Kenyan market and the business environment is comparatively good.

"Right now, the relationship between Kenya and China is quite intimate and the Belt and Road Initiative is strengthening it further. This should encourage more Chinese companies to invest in the market," he says.

Another company looking at accessing the East African market through Kenya is Global Good Trust, a fast-moving Chinese consumer goods company. It set up its regional headquarters offices in Nairobi two years ago and, according to CEO Li Fahang, the future looks bright.

Li hopes producing quality diapers and sanitary towels will help him break into the market. His products are popular in Angola and Liberia and he wants to replicate this success in Kenya and East Africa.

He says Kenya's business environment is better compared to the neighboring countries. Its economy is bigger and there is skilled labor, the reason he chose it as his company's regional hub.

"Having worked in Africa for 10 years, I discovered that the quality of some diapers and sanitary towels in the market was not good. I therefore decided to start manufacturing quality ones, specifically targeting the African market," says Li, adding that GGT has operations in 16 countries.

Zhang Zhongduan, CEO of Roton Africa, a company that deals with sales of medium and heavy duty Foton vehicles, repairs, spare parts, machine sales and rental, says the Kenyan business climate is good.

"Politically, Kenya is stable and it's social stability is also good compared to neighboring countries," he says.

Song Ai, general manager, Chinya Development Ltd, a company that produces Chinese tea with plants grown in Kenya, came to the country to work for a construction company but ended up venturing into entrepreneurship.

The taste of the tea she drank in a hotel appealed to her, despite the fact that it had been coarsely produced.

"The quality of tea in Kenya is better than that of China. Tea farms are pollution-free, use manure as fertilizer and enjoy long periods of sunshine and constant temperature. The soil also contains volcanic ash. These factors produce the best quality tea in natural conditions," she says.

However, despite the huge market and attractive business environment, the investors say getting a work permit in Kenya is the biggest obstacle.

"Getting a work permit can take six months. We would like the government to shorten that period," says Li.

He thinks the Kenyan government should have an open policy for foreign investors, just as China does, so the country can attract more entrepreneurs and consequently grow its economy.

edithmutethya@chinadaily.com.cn