Background Information

The Kenya National Trading Corporation is a State Corporation in the Ministry of Investments, Trade and Industry. It was incorporated in 1965 under the Companies Act, Cap 486 based on Sessional Paper No. 10 of 1965 on ‘African Socialism and its application to planning in Kenya. KNTC is wholly owned by the National Treasury through Kenya Development Corporation with a specific mandate to promote and increase wholesale and retail trade. The Corporation achieved tremendous growth in early years when it enjoyed monopoly status in the distribution of sugar, coffee and other commodities.

The market liberalization of the 1990’s negatively affected the performance of the Corporation making it redundant. In 2004 there was a winding up order for the Corporation which was rescinded in the year 2010 vide a Cabinet Memo, a revised mandate was issued. In recognition of the latent potential in anchoring wholesale and retail trade; and promoting market access by SMEs in line with Kenya Vision 2030, The Cabinet enhanced the Mandate of KNTC in November 2010 to reflect the following:

• Promotion of wholesale/retail business and e-trade in line with Kenya Vision 2030, the Medium-Term Plan and the Parent Ministry’s Strategic Plan;

• Improve and strengthen supply chain and distribution systems for both the formal and informal sectors;

• To become the Procurement Agent for strategic bulk commodities for the government and general public at reasonable commercial prices;

• In Partnership with other key players, avail relevant products/input for the agricultural sector such as sugars, fertilizer and chemicals;

• Promote the development of Small and Medium Enterprises’ markets, expansion and diversifications of trade in line with the Government Policy; and

• To set up trading houses in niche export markets in the region and beyond.