Access the full version

This is a preview of the country profile Kenya.
Login or create your profile to access the full version of the country profile.

Kenya flag Kenya:

Country risk of Kenya : Investment

Foreign investments in Kenya remain relatively weak considering the size of its economy and its level of development. Nevertheless, Kenya is one of the largest recipients of FDI in Africa. According to the figures from UNCTAD's 2021 World Investment Report, FDI flows to Kenya declined to USD 717 million in 2020 (compared to USD 1 billion in 2019), following the global economic crisis triggered by the Covid-19 pandemic. The total stock of FDI stood at USD 10 billion in 2020. According to UNCTAD’ Investment Trends Monitor, global FDI flows rebounded strongly in 2021, but FDI flows to African countries (excluding South Africa) rose only moderately. In recent years, the ICT sector has attracted the most FDI, thanks to the arrival of fibre optics. The other sectors targeted by FDI are banking, tourism, infrastructure and extractive industries. The United Kingdom, the Netherlands, Belgium, China and South Africa are the main investors in Kenya.

The Kenyan government has been actively taking measures and implementing reforms to attract FDI. As a result, the country made progress in the Doing Business ranking published by the World Bank. The country was ranked 56th worldwide, for the ease of doing business in 2020 Doing Business Report of the World Bank. This represents an improvement from 2019 edition when the country was ranked 61st. The country has improved in making the dealing with construction permits more transparent. Kenya also improved the reliability of electricity supply by modernizing its existing infrastructure. Registering property, getting credit, protecting minority investors, tax payment and resolving insolvency are the other aspects where the country has made notable changes.

The development of public-private partnerships as part of the 'Vision 2030' strategy should also have a positive influence on FDI inflows. Kenya plays a pivotal role in the East African Community, acting as a regional economic hub. It benefits from a strategic geographic location with sea access, a growing entrepreneurial middle class, a diversified agriculture and expanding services sector, and recently discovered hydrocarbons resources. Nevertheless, numerous obstacles to investment persist, notably the country's poor-quality infrastructures, skills shortages, instability related to terrorist risk and political, social and ethnic divisions, ineffective rule of law and corruption. In 2020, in the wake of the pandemic, Kenya introduced local participation requirements in various sectors, including insurance, telecommunications and ICT services.

 

Investment Opportunities

Tenders, Projects and Public Procurement
Tenders Kenya, Tenders in Kenya
DgMarket, Tenders Worldwide
Setting Up a Company
Consult the Doing Business website, to know about procedures to start a business in Kenya.
Useful Resources
Kenya Investment Authority (KIA)
Business Portal for Africa
 

Business Setup Procedures

Setting Up a Company Kenya Sub-Saharan Africa
Procedures (number) 7.00 7.51
Time (days) 23.00 21.30

Source: Doing Business.

Return to top

Any Comment About This Content? Report It to Us.

 

> Export Entreprises SA, All Rights Reserved.
Latest Update: July 2022