2014-2019 STRATEGIC PLAN
Export Processing Zones Authority (EPZA) has development a strategic plan covering the period 2014 – 2019. Key factors that will influence the current strategic direction in this period and significantly differ from the environment in which the previous plan was developed are: key changes in EPZ environment, particularly the East African Community Common Market Protocol, which has limited access to the enlarged local EAC market, devolution of government to the counties, the development of Kenya’s second Medium Term Plan (MTP II) under Vision 2030 which provides key targets for public agencies for the period; impact of Kenya’s rising per capita GDP on the application of export incentives under the Subsidies and Countervailing measures Agreement of the World Trade Organization (WTO),uncertainty over continuation of preferential market access to USA and European Union under and the African Growth and Opportunity Act (AGOA) and the Economic Partnership Agreement; and rising factor production costs and increased competition for global investment from other locations. It is against this background that the EPZA has developed this strategic plan to enable it to better define its direction as well as to guide the optimum allocation and utilization of its resources.
The export sector in Kenya has experienced stable growth, with export oriented organisations tapping into key Regional African and Western markets to expand their sales. Higher than average economic growth in the region has been driven by large infrastructure projects which stimulate demand for supplies; by improved transport logistics across the East African region by an increasingly economically active population, and by the growth in the use of technology in financial and telecommunication sectors in the region. In addition, continued demand for Kenyan primary goods in Western markets has supported Kenya’s traditional exports to EU and Middle East markets, even as the USA, a newer market, imports more of Kenya’s textile products. At a national level, however, even as exports have grown, imports have grown even faster, necessitating national export strategies to quickly address the increasingly negative balance of trade.
EPZA must therefore seize market opportunities, and influence positive changes in the business environment so as to contribute even more to national exports, investment, employment and GDP, hence the need to re-map EPZA’s strategic direction.
This strategic plan provides a blue print against which the strategic direction of the EPZA is documented. It seeks to coordinate and integrate the activities of the various functional areas of the Authority, in order to achieve long-term organizational objectives using the Balanced Scorecard approach. The score card integrates strategy formulation with performance management. The use of the balanced scorecard will assist EPZA to align corporate goals across the organisation, communicate strategic themes, link strategy to initiatives or projects and to cascade strategic understanding and performance management to all levels within the Authority. The plan also provides a monitoring and evaluation framework to help measure achievements and redirect efforts where required.
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EPZA STRATEGIC PLAN 2009 2013
The Export Processing Zones Authority (EPZA) was established in 1990 through the Export Processing Zone Act (Cap 517) for the promotion and facilitation of export oriented investments and the development of enabling environment for such investment. However, the EPZ concept has evolved from just promoting manufacturing for export to a wider sense that encompasses more economic activities under the Special Economic Zones (SEZs).
Development of a new strategic plan therefore became necessary to enable the Authority transform to the SEZ environment as well as identify and select the most appropriate strategies of utilizing the resources and skills available in the Authority to achieve specified goals and objectives, while taking into account the external environment in which the Authority operates. The strategic plan was developed through a participatory approach, which ensured that views of the key stakeholders were incorporated. The participation was achieved through discussions, consultations and two workshops with the key stakeholders.
A review the Authority’s mandate and core functions, vision, mission and core values was undertaken. A situational analysis was also carried out to evaluate the past performance of the Authority, the performance of the export processing zones, global trends in export processing zones and the internal and external operating environments for the export processing zones. An analysis of the EPZA’s key stakeholders was also carried out. These analyses enabled the isolation of the key strategic issues that require management intervention during the planning period. The identified strategic issues formed the basis for the setting of objectives of the Authority for the next five years and strategies that would enable the achievement of the objectives.