Kenya has been recognised for many things, among them tourism, infrastructure, agriculture exports and investments.
International investors are eyeing the country for investments, with some taking time to run exhibitions displaying some of the possible investment opportunities that could be pursued.
Here are ten reasons to invest in Kenya:
Just last week, Kenya became the first East African Country to export oil. President Uhuru Kenyatta during the flagging off of the barrels said that there was a
danger of losing all the benefits that can come from Kenya’s new oil wealth in the absence of effective resource management.
“The negative competition for oil and other natural resources has seen peaceful countries go to war. It has seen brothers take up arms against each other as mothers bury their children with no hope for the future,” said the President when he addressed dignitaries, leaders and residents of Turkana County who gathered to witness him flagging off Kenya’s first petroleum exports.
Largest East African Largest Economy
Kenya is the largest economy in the East African Community. It has shown tremendous resilience and strong growth with a rapidly growing urban middle class and increasing demand for high value goods and services. According to data from KenInvest, the country is the dominant economy in the East Africa Community, contributing to more than 50% of the region’s GDP.
Kenya is open for business to well-positioned companies with strategic objectives of tapping into the growing potential of emerging markets in East and Central Africa.
According to Kenya’s investment Authority, Kenya is the largest and most advanced economy in East and Central Africa. Its GDP accounts for more than 50 per cent of the region’s total and in terms of current market prices, its 2014 GDP stood at $58.1 billion.
Large Market access
Kenya’s membership to regional economic blocs coupled with her strategic geographic position makes the country the gateway to the huge East African Community (EAC) market with over 135 million people and the Common Market for Eastern and Southern Africa (COMESA) market with over 450 million people.
Kenya is a beneficiary of several trade preferential arrangements which includes The African Growth and Opportunities Act (AGOA) which allows for quota free and duty free access to the USA market for over 6,000 items produced in Kenya and The new Africa Caribbean and Pacific-European Union (ACP-EU) Economic Partnership Agreement (EPA) which gives duty free access to the EU among others.
Kenya has a relatively well developed physical infrastructural facilities. The country currently has four international airports, an extensive road and railway network, a modern deep sea port at Mombasa capable of handling bulk and other containerized cargo, an expanding, liberalized energy sector and digital telecommunication networks. As a result, Kenya continues to develop as financial, other services and transport hub for the East and Central African region.
International brands know something
Several international brands have set foot in the country in several sectors. In the fast food arena we have seen KFC, Domino’s Pizza, Subway, Cold Stone creamery among others set up shop in the country.
Other international brands in the country include: Standard Chartered bank, Huawei, Google, Coca-Cola, and Heineken.
Kenya’s ranking in ease of doing business
World Bank’s Doing-Business 2016 positioned Kenya at position 80 Out of 190 Economies. This says something about the country in terms of ease of doing business. According to World bank, total Investments in 2016 stood at $2.0 billion.
Resilient private sector
The country has several bodies representing the private sector under different sectors. The umbrella bodies lobby for the deals as well as collectively urging the government to formulate policies that help grow these sectors. Several foreign investors are also members of these umbrella bodies. The players in these umbrella bodies include
Kenya’s private sector is substantial and includes a number of foreign investors. Key players in voicing private sector concerns include: Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE) and the Kenya Association of Manufacturers (KAM).
Kenya was recently ranked third in Africa, alongside Rwanda in terms of the most popular destinations for Meetings, Incentives, Conferencing and Exhibitions (MICE) tourism. The country’s marketing arm, Kenya Tourism Board (KTB) is actively marketing the country as a tourism destination among other areas. KTB is currently in India showcasing the country’s potential in MICE tourism. It has also invested in marketing the country as a golf tourism destination by bringing global renowned golfers into the country.
The country’s agribusiness sector is huge and ready for investment in a bid to boost food security. Areas such as Maize, Sugarcane, Coffee, Flower industry, Horticulture are all big earners for the country in terms of imports. In 2017, the sector contributed Sh2.3 trillion ($22.77 billion)into the country’s economy. That shows the huge potential that lies in the agribusiness sector.
Here lies yet another reason to invest in the country. According to Cytonn Investments, the real estate sector experienced increased activity across all the themes.
A report by Cytonn shows that in residential, Erdemann Property Ltd and Cool Breeze Development Limited, announced plans to develop 1,632 housing units in Ngara and 524 units along Mombasa Road in Nairobi County, while United Bank of Africa in partnership with National Housing Corporation announced plans to develop 1,000 affordable housing units in Kakamega County. In the commercial theme, Federation of Kenya Employers (FKE) announced plans to build an 8-storey office building in Upper Hill, and In Land, Fusion Capital partnered with Optiven Limited to subdivide and sell a 100-acre land parcel – Amani Ridge in Ruiru, Kiambu County.