Future of the Kenya Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Future of the Kenya Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

  • October 2017 •
  • 78 pages •
  • Report ID: 5174171 •
  • Format: PDF
Future of the Kenya Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Kenya has consistently procured a large amount of military hardware over the last couple of years. These include small arms, armored vehicles, helicopters, rocket launchers, and aircraft, which drove defense expenditure between 2013 and 2017. The country’s defense budget increased at a CAGR of 4.01%, with an investment of US$1.1 Billion in 2013 and US$1.2 Billion in 2017. Over the forecast period, the country’s defense budget is projected to increase to US$1.5 Billion by 2022, at a CAGR of 3.70%.

Capital expenditure allocation of the Kenyan defense budget represented an average of 34.3% of the total budget during 2013–2017. This share is anticipated to decrease to an average of 34.0% during 2018–2022. On a cumulative basis, capital expenditure was US$2.0 Billion during the historic period and is anticipated to reach to US$2.3 Billion over the forecast period; as a result of the country’s plans to procure defense equipment such as CBRN detection equipment, helicopters, armored vehicles, unmanned aerial vehicles (UAVs), aircraft and surveillance equipment for monitoring.

Capital expenditure budget is projected to increase to US$504.9 million by 2022, at a CAGR of 3.36%. This is due to the government’s initiatives to acquire more weapons. The country’s budget for homeland security is anticipated to increase over the forecast period, driven by increasing threats from human trafficking, terrorism, drug, and arms smuggling.

The report “Future of the Kenya Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Kenya defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, this report provides the following -
- The Kenya defense industry market size and drivers: Detailed analysis of the Kenya defense industry during 2018–2022, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns.
- Budget allocation and key challenges: Insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country.
- Porter’s Five Force analysis of the Kenya defense industry: Analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry.
- Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
- Market opportunities: Details of the top five defense investment opportunities over the next 10 years.
- Competitive landscape and strategic insights: Analysis of the competitive landscape of the Kenya defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Companies mentioned in this report: Kenya Ordnance Factories Corporation (KOFC), JSC Rosoboronexport and Grob Aircraft

- The Kenya government has been steadily increasing its defense budget 2015 - 2017. Defense expenditure registered a CAGR of 4.01% over 2013-2017. The country allocated US$1.1 billion to its defense sector in 2013, which increased to US$1.2 billion in 2017. This trend is expected to continue during the forecast period, owing to the government’s well-defined military modernization plans to better equip its armed forces.
- Revenue expenditure allocation decreased from 65.6% in 2013 to 64.2% in 2017. Conversely, the country’s capital expenditure increase from 34.4% to 35.8% during the historic period. Over the forecast period, Kenya is expected to allocate an average of 34.0% of its defense budget to capital expenditure, while the remainder will be assigned to revenue expenditure.
- The MoD is expected to invest in acquisition of CBRN Detection Equipment and Armored Vehicles.

Reasons to buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Kenya defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Kenya defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts

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