Turkey to partner with Kenyan firms to make, sell furniture

By Scola Kamau  (email the author)

Posted Monday, December 13 2010 at 18:01

Kenya’s dynamic economy and emerging middle class have attracted furniture dealers from Turkey.

Under the umbrella Istanbul Exporters Association, over 250 companies will partner with leading supermarkets and furniture making companies in Kenya, in the production and distribution of home and office furniture.

“With its ideal location, vibrant economy and fast growing population, Kenya has the potential of becoming the hub that feeds markets in the East African Community,” said Tuncer Kayalar, Turkey’s ambassador to Kenya.

He said talks were ongoing with selected partners in Kenya. He was speaking at the opening ceremony of the fifth Turkish Furniture Expo held recently in Nairobi.

However, the announcement comes at a time Kenya is facing a timber shortage that has led to a government ban on logging.

The country’s forest cover currently stands at 312,500 acres according to the Kenya Forest Service, which is far below Turkey’s. A 2010 forest products for Turkey report by the United States Department of Agriculture put the country’s forest cover at 21.2 million hectares.

To partly close the timber gap, Turkey will import raw materials from home.

Kenya is spending more than $37.5 million annually on timber imports up from $62,000 in 1999, to meet rising demand that now stands at 38 million cubic metres annually.

According to the chairman of the Kenya Timber Manufacturers Association, Samuel Gitonga, the sector lacks enough raw materials to meet demand.

Turkey hopes to take part of this market and boost its furniture exports, whose value stood at $1.3 billion in 2008, $1.1 billion in 2009, and is expected to reach $1.4 billion by the end of this year, and which could rise to $1.6 billion aided by the anticipated venture into Kenya’s lucrative market.

Turkey’s overall exports to Kenya increased from $98 million in 2007 to $233 million at the end of 2008, driven largely by petroleum products. The country also exports generators, agricultural machinery, carpets, flour and pasta.

Kenya’s exports to Turkey in contrast have stagnated at $12 million, with leather and tea as the top products.

As Turkey aggressively seeks to invest in Kenya, analysts predict that the trade balance will continue to tier in favour of Turkey, unless Kenya adds value to its exports and enters into more bilateral agreements.

In October, the two countries signed deals in investment, tourism, science, agriculture and labour.

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