Kenya Cracks Down on Under Invoiced Goods from China

 Kenya's Business Daily published on 20 September 2023 an article titled "Kenya Targets Chinese Imports in New Tax Evasion Crackdown" by Dominic Omondi.

Kenya imports most of its finished goods from China.  The government has concluded that the value of most of these products, especially electronics such as mobile phones and computers, have not been accurately priced, leading to huge tax losses.  The government will begin working with tax authorities to determine the true value of "high-risk imports from China."

Africa's Trade Dilemma: Cheap Chinese Imports or More Expensive Kenyan Products?

 Kenya's Star published on 4 March 2023 a commentary titled "Why Kenya Can No Longer Make the Goods It Used To" by Godfrey Kimega.

A Chinese entrepreneur opened "China Square" shopping mall in Nairobi in January.  It became popular with Kenyan consumers because of its low prices for imported Chinese goods.  Kenyan traders protested, forcing the government to briefly shut down the mall, because the traders could not sell comparable Kenyan products at the same low prices.  The government subsequently allowed "China Square" to reopen.

Comment:  This is an issue playing out across Africa.  The cost of production in Kenya and some other African countries is higher than the cost of equivalent imported Chinese goods (and goods from some other countries).  African manufacturers and vendors are just not able to compete.  Consumers are pleased with the lower prices, but manufacturers and sellers are upset.

China in Mozambique's Forests

The Institute for Environment and Development published in 2018 a major study titled "China in Mozambique's Forests: A Review of Issues and Progress for Livelihoods and Sustainability" edited by Duncan Macqueen.

China is the destination for about 93 percent of all Mozambique's timber exports. Concerns have been raised over the impact of these patterns of investment and trade for Mozambique's forests and the development of rural populations. This study compiles three years of work of the China-Africa Governance Project to develop evidence on constraints and opportunities for forest resources in productive and resilient land use and trade, to develop capacity and dialogue among relevant stakeholders in China and Mozambique, and to deliver policy and practice improvement opportunities.

Chinese Companies' Perception of Doing Business in Kenya

The Sino Africa Centre of Excellence (SACE) Foundation surveyed 75 Chinese private and state-owned companies in Kenya in 2014.  Drawing on the surveys, it published in January 2015 a major report titled "Business Perception Index Kenya - 2014: Chinese Companies' Perception Survey of Doing Business in Kenya 2014."

SACE said there are more than 40,000 Chinese nationals and about 400 Chinese companies in Kenya.  It defined a Chinese company as an establishment which has formally registered in Kenya and more than 50 percent of its shares are owned by Chinese nationals. 

Of the 75 companies that responded to the survey, the most common obstacle cited to doing business in Kenya was corruption at 68 percent.  Crime, theft and disorder and personal safety followed at 62 percent, and obtaining work permits at 41 percent.  The least serious obstacles to doing business were the court system (23 percent), getting electricity (23 percent), and labor management (21 percent).