Kenya

Kenya

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, with FDI inflows significantly increasing since 2010. According to the figures from UNCTAD’s 2020 World Investment Report, FDI flows in Kenya decreased by 18% to USD 1,3 billion in 2019 (compared to USD 1,6 billion in 2018), despite several new projects in information technology and health care. The total stock of FDI stood at USD 15,7 billion in 2019. In recent years, the ICT sector has attracted the most FDI, thanks to the arrival of fibre optics in 2009-2010. 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.

Where there is demand, there is opportunity.- The future is Africa