New Rising Stars : Kenya an Article in The Acquisition International Magazine on Kenya's Economic prospects and Investment opportunities.by CPA Mohamed Ebrahim MBA (Manchester), FCFIP, ACMA, CGMA, FFA, FCT, Partner Ace Associates - Certified Public Accountants - A member firm of McMillan Woods Global, Director in Ace Consultants Limited, Ace Financial Advisory Limited, Ace Taxation Services Limited,

1. ACQUISITION INTERNATIONAL September 2013 / 27
SECTOR SPOTLIGHT:
The New Rising Stars: Kenya
The New Rising Stars:
Kenya
welcome foreign direct investment, and tax incentives to
attract value added manufacturing industries.
In terms of the sectors in which opportunities for
investors lie, Mr Ebrahim suggested: transportation to
and from resource find areas; supply and services to
natural resource companies; bulk active pharmaceuticals;
petro-chemical industry as a user of by products from oil
refining; fertiliser making for the East African Region;
and commercial fish processing and fishing in Kenya’s
long coastline’s exclusive economic zone.
He also highlighted the processing of traditional agri-exports
like value added packaged tea and coffee as part
of Special Economic Zones, noting its “phenomenal tax
incentives like 10 year tax break, no import duty and
VAT on imports”, as well as the commercialisation of
agriculture to produce food and process the crop to
feed the growing population of Kenya and the East
African Community - a market of nearly 100 million
people.
As Kenya becomes more established in terms of foreign
direct investment, the country faces a number of
challenges. One such challenge raised by Mr Ebrahim
is overcoming the country’s reputation for post-election
disputes and the political uncertainty it creates each year
in the run-up to the general election and at least one year
after, noting that losing presidential candidates are not
willing to accept poll results leading to polarisation of
the people.
“The politicians have to mature to keep the interests
of the nation before their individual interests, the
people have to learn to vote based on merit rather
than ethnicity and the business community to have
confidence that the people of Kenya will not let their
country descend into a civil war irrespective of periodic
political rubble rousing,” he explained.
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CPA Mohamed Ebrahim is a Partner at Ace Associates
- Certified Public Accountants and Director of Ace
Financial Advisory Limited., Ace Consultants Limited
and Ace Taxation Services Limited
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Ahmed M.Y. Salyani & Associates was formed in 2003
by CPA Ahmed Salyani, as a sole practitioner. In 2011
he turned it into a partnership and rebranded the
Group as Ace. Currently, the partners are CPA Ahmed
Salyani ACCA, CFIP and CPA Mohamed Ebrahim MBA
(Manchester), CGMA, ACMA, CFIP, FCT, with the
following firm namely Ace Associates- Certified Public
Accountants (Audit services) and at the same time set
up Ace Consultants Limited (accountancy support
services, Internal Audit and Risk consulting services),
Ace Taxation Services Limited (Tax compliance, and
advisory services), Ace Financial advisory Limited
(Corporate Finance and Wealth Management) and
ACE Secretaries and Registrars (company secretarial
services) to offer specialised services to businesses.
From 1st January 2013 Ace Associates – Certified Public
Accountants joined the McMillan Woods Global network
and was rebranded as McMillan Woods Ace Certified
Public Accountants.
Mr Ebrahim commented: “The partners have combined
experience of nearly 40 years, gained in Big 4 firms,
and major mid-tier firms, mainly in Kenya but with
stints in Dubai (UAE) and Calgary (Canada), hence we
are able to integrate skills and knowledge, in Kenya
with a global flavour, personalised services available in
Big 4 firms to the SME and emerging industries.”
According to Mr Ebrahim, the current business
environment in Kenya is positive and the government
elected in the recent March 2013 elections is pro-business,
supporting a balance of corporate investments
and development of a locally owned SME sector. This
is achieved through initiatives like the Youth Fund and
Constituency Women’s Enterprise Fund.
“They are also committed to the Vision 2030 programme
which intends to transform Kenya into a middle income
country by 2030,” he added. “The key to this will be
how the international business community take up the
Special Economic Zones and its tax advantages.”
Mr Ebrahim attributed the country’s impressive growth
to its pro-business environment, recent resource finds of
Oil & Gas and other natural minerals, investment by the
government in infrastructure (physical and financial)
and Kenya’s Education system which produces skilled
manpower.
“In my opinion the skilled workforce in Kenya is more
important than any natural resource find, as in a
knowledge economy ideas rule and are the source of
sustainable growth and wealth,” he elaborated.
Commenting on the benefits of investing in a new
“rising star” location such as Kenya, as opposed to the
traditionally favoured BRIC nations, Mr Ebrahim noted
the lower entry barriers, governments that are eager to
Company: Ace Associates - Certified Public
Accountants and Ace Financial Advisory Ltd
Name: CPA Mohamed Ebrahim
Email: mebrahim@acegroup.co.ke
Web: www.acegroup.co.ke
Mombasa Address: Ace Group, Narok Road,
off Jomo Kenyatta Avenue,
PO Box 16916-80100, Mombasa, Kenya
Nairobi Address: KMA Centre 7th Floor offices
2 & 3, Mara Road Upper Hill, Nairobi, Kenya
Telephone: +254 41 2491515, +254 707 688699
Mobile +254 706 869892
The Special Economic Zones bill 2012 will be passed into
law this year and Mr Ebrahim believes that this will set
the stage to make Kenya a middle income country and
focus on investment outside the Capital Nairobi, which
due to its unsustainable increase on property prices has
out priced itself in value creation.
“The investment focus will be in Mombasa and its environs
which is also close to the area’s where natural resources
have found and is one of the area’s where Special Economic
Zones are to be set-up, plus its historic advantage of being
East Africa’s biggest port City,” he predicted.
“Kenya also has a dynamic Stock exchange, a well
regulated banking sector, a flourishing tourism and
hospitality sector and enterprising people. We are
poised for awesome growth - Welcome to Kenya”
Nairobi, the capital city of Kenya