INSUBCONTINENT EXCLUSIVE:
Excluding investments from East African Community members, FDI dropped to $374.6 million from $710.21 million the previous year.This 47.2%
decline coincided with a 43% decrease in foreign-implemented projects, from 209 to 146
Economic challenges fueled this decline
A depreciating currency, high interest rates, and rising inflation created a difficult environment for investors.Dollar shortages and the
poor performance of the Nairobi Securities Exchange further dampened investor confidence
Despite the overall decrease, some countries maintained their investment presence.The United Kingdom led with $110.85 million across 13
projects, followed by China with $90.56 million and the Netherlands with $35.77 million
Indian investors initiated the most projects at 18, while Chinese investments created the most jobs at 2,966.The manufacturing sector
emerged as a bright spot, leading in both employment and investment value
(Photo Internet reproduction)Finance, insurance, real estate, and business services drew $62.90 million, while community, social, and
2022, showcasing resilience amid challenges
The government has undertaken initiatives to improve the investment climate through legal reforms and infrastructure development.However,
concerns persist among investors, particularly regarding unpredictable taxation policies
The Finance Act of 2023 introduced new tax measures, raising concerns about business environment stability.Looking ahead, Kenya still offers
opportunities for foreign investors
The ICT sector shows promise, with major global tech companies increasing their presence.The energy sector, especially renewable energy,
presents growth potential
to offer opportunities for investors willing to navigate its complex landscape.
