With an armed force that is considered to be one of the most powerful in East Africa, Kenya has consistently procured a large amount of military hardware, including small arms, aircraft, artilleries and armored vehicles, which drove defense expenditure during the historic period. The country’s defense budget increased at a CAGR of about 8.3%, with an investment of around US$1 billion in 2014 to around US$1.3 billion in 2018. The government’s well-defined military modernization plans and efforts to counter domestic and foreign terrorist attacks, along with the country’s active and consistent participation in various peacekeeping missions, will stimulate expenditure over the forecast period. The country’s defense budget is expected to increase at a CAGR of 4.09%, from US$1.4 billion in 2018 to US$1.6 billion in 2023.
The capital expenditure (CAPEX) allocation of the Kenyan defense budget represented an average of around 34% of the total budget during 2014-2018 and is anticipated to increase to an average of around 35% over 2019-2023. On a cumulative basis, CAPEX was US$2.0 billion during the historic period and is anticipated to reach to US$2.7 billion over the forecast period; as a result of the country’s plans to procure defense equipment such as land-based C4ISR, physical security infrastructure and IT-networking are expected to be in demand over the forecast period.
Kenyan homeland security (HLS) expenditure will grow at a CAGR of around 2.2% over the forecast period, increasing from over US$947 million in 2019 to about US$1 billion by 2023. Preventive measures for internal conflicts, drug trafficking, human trafficking, piracy, and threats from terrorist groups drive HLS expenditure. Kenya procured armored personnel carrier vehicles and small arms for its national police forces as its current equipment and vehicles are aging; this will help to improve safety and security and counter any possible attacks. Kenya is also keen on procuring surveillance, unmanned aerial vehicles (UAV), intelligence systems such as automated border crossing systems, and CCTV (closed circuit television) and has invested in acquiring military hardware for its police forces.
The Kenyan defense market, valued at around US$1.3 billion in 2018, is expected to see sustained growth over the forecast period to reach about US$1.6 billion by 2023. Growing threats from terrorism, border conflicts with Somalia, human trafficking, arms smuggling and contributions to peacekeeping operations are expected to drive the country’s military expenditure, registering a growth rate of just over 4% over the forecast period. Kenya’s capital defense expenditure will increase from over US$450 million in 2018 to around US$575 million by 2023. Over the forecast period, the average share of total CAPEX is expected to cross 35% from its historic-period average of about 34%. Defense equipment such as land-based C4ISR, physical security infrastructure, and IT-networking are expected to be in demand over the forecast period.
The report "Future of the Kenyan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" offers detailed analysis of the Kenyan defense industry with market size forecasts covering the next five years.
In particular, it provides an in-depth analysis of the following -
- Market opportunity and attractiveness: detailed analysis of the current industry size and growth expectations during 2019-2023, including highlights of the key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- Procurement dynamics: trend analysis of imports and exports, together with their implications and impact on the Kenya defense industry.
- Industry structure: five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- Market entry strategy: analysis of 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.
- Competitive landscape and strategic insights: analysis of the competitive landscape of the defense industry in Kenya, providing an overview of key defense companies (both domestic and foreign), together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
- Business environment and country risk: a range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators, evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.
Companies mentioned in this report: Lockheed Martin, Lockheed Sikorsky, Construcciones Aeron?uticas SA (CASA)/ IPTN, Korean Aerospace Industries, Boeing (McDonnell Douglas) , Samsung Techwin, Hyundai Rotem, Howaldtswerke-Deutsche Werft (HDW)- Thyssenkrupp Marine Systems, BAE, General Atomics Aeronautical Systems, Otokar, Roketsan,Makina ve Kimya End?strisi Kurumu (MKEK), Aselsan, Turkish Aerospace Industries (TAI), Havelsan, Tusas Engine Industries (TEI), FNSS Defense Systems Company, Istanbul Shipyard.
- With an armed force that is considered to be one of the most powerful in East Africa, Kenya has consistently procured a large amount of military hardware, including small arms, aircraft, artilleries and armored vehicles, which drove defense expenditure during the historic period.
- The country’s defense budget increased at a CAGR of 8.33%, with an investment of US$1.0 billion in 2014 to US$1.3 billion in 2018. The government’s well-defined military modernization plans and efforts to counter domestic and foreign terrorist attacks, along with the country’s active and consistent participation in various peacekeeping missions, will stimulate expenditure over the forecast period.
- The country’s defense budget is expected to increase at a CAGR of 4.09%, from US$1.4 billion in 2018 to US$1.6 billion in 2023.
Reasons To Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Kenyan 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
- Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Kenyan defense industry covering sections including demand drivers, Key Trends , and latest industry contracts