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How competitive are kenyan businesses?
the sage
#11 Posted : Thursday, January 14, 2010 5:07:02 AM
Rank: Member

Joined: 11/20/2008
Posts: 367
I agree that Kenyan business operate amid a very tough environment, plagued by high and unreasonable taxes without tangible returns, and espeacilly silly laws by bodies like the county councils. However, a study done by the IMF shows that productivity in Kenya is among one of the lowest in the world.
Kenyan businesses are trying but let us be honest service delivery is pathetic.
@all, should we really use Uganda, Tanzanaia as a benchmark?
@Bwenyenye the stalls have opened up business opportunities for many Kenyans but what this country needs is value addition not this cop cat approach we are hellbent on.
muganda
#12 Posted : Thursday, January 14, 2010 6:15:46 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
I was thinking awhile before weighing in. If the measure is competitiveness, my view is Kenyans and their businesses can carry their weight at any stage.

However when considering why Kenyan businesses seem to be dominant only in East Africa or COMESA, I looked at Nigeria. If you pick particular industries music, entertainment, banking etc it's clear that Nigeria has become a force in the continent north of SA.

My conclusion is that major limitation is size of Kenyan market. To really conquer, you need a good company in a large market making larger profits that spills over in the domination of smaller markets. South Africa, Nigeria, Egypt are doing it.

Hence it'll always be easier for Kenyan businesses to tackle EA markets as opposed to South Africa or West Africa for example.
kenmac
#13 Posted : Thursday, January 14, 2010 8:27:52 AM
Rank: Elder

Joined: 5/26/2009
Posts: 1,793
>> To evaluate how competitive the kenyan businesses are, understanding the market structure within which they operate would be an important factor, is it monopoly, oligopoly or perfect competition and compare with the market structures in other countries and market sizes and each firms share of the market... The banking sector for example would pass to have perfect competition and the local market being saturated, the banks are now going across borders in search of new markets...Then further look at the entry barriers, buyer/seller concentration, the conduct and behavior of the firms towards competitors etc...To me SME's is kenya are very competitive and quite aggressive in marketing their products but lack enough resources to venture in the regional market successfully.
......Ecclesiastes
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