2014-01-23 18:54:58 - New Defense research report from Strategic Defence Intelligence is now available from Fast Market Research
This report is the result of SDI's extensive market and company research covering the Kenyan defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.
Introduction and Landscape
Why was the report written?
The Future of the Kenyan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Kenyan defense industry.
Full Report Details at
- www.fastmr.com/prod/764233_future_of_the_kenyan_defense_industry ..
What is the current market landscape and what is changing?
After the political turmoil in Kenya in 2007-2008, the
government focused on modernizing its armed forces, making them well-equipped to counter attacks from both domestic and foreign terrorist gangs. The country has apportioned an average of 2.4% of its GDP for defense purposes over the review period, a cumulative figure of US$4.3 billion. During the forecast period, the defense budget is expected to be US$5.5 billion cumulatively. Per-capita defense expenditure is expected to grow during the forecast period from US$20.6 in 2014 to US$26.7 in 2018.The capital expenditure budget is forecast to increase from US$149.2 million in 2014 to US$234.1 million in 2018, recording a CAGR of 11.91%, due to government initiatives to acquire more arms and ammunitions. The country's budget for homeland security (HLS) is projected to increase over the forecast period, driven by increasing threats from human trafficking, drug, and arms smuggling. Demand for equipment over the forecast period is mainly expected to revolve around helicopters, armored vehicles, unmanned aerial vehicles and surveillance and monitoring equipment.
What are the key drivers behind recent market changes?
Kenya will primarily focus its defense expenditure on the procurement of new equipment and international cooperation operations. Furthermore, the country will work toward attaining stronger border security and protecting itself from threats of terrorism.
What makes this report unique and essential to read?
The Future of the Kenyan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
The report provides detailed analysis of the current industry size and growth expectations from 2014to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with their implications and impact on the Kenyan defense industry.
The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
The report helps the reader to understand the competitive landscape of the defense industry in Kenya. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
Kenya stands as one of the countries that encounter high levels of corruption in virtually all sectors of business activity. According to Transparency International's Corruption Perceptions Index 2013, Kenya is classified as a highly corrupt country. Corruption within the country has engraved itself in various forms ranging from bureaucratic and political affairs and misappropriation of public resources to fraud transactions related to state assets. To tackle the situation, the government formed the Kenya Anti-Corruption Commission (KACC), which was disbanded and replaced by the Ethics and Anti-Corruption Commission in 2011.
During the forecast period, Kenya is expected to invest US$5.5 billion in its armed forces, of which US$0.9 billion is forecast to be on the acquisition of military hardware, offering foreign OEMs limited opportunities to cater to the Kenyan defense industry. Although the allocation is higher than that of the review period, when it was US$0.6 billion, the budget still remains highly inadequate for the procurement of high-tech defense equipment. Furthermore, the country is expected to focus more on developing its economic conditions and bring in more wealth and prosperity for its people in the coming years. These factors do not make the Kenyan defense market an attractive investment destination for foreign companies.
About Strategic Defence Intelligence
Strategic Defence Intelligence provides a stream of continuously updated customer and competitor intelligence, as well as detailed research reports providing an unrivalled source of global information on the latest developments in the defence industry. View more research from Strategic Defence Intelligence at www.fastmr.com/catalog/publishers.aspx?pubid=1040
About Fast Market Research
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