Invest in Kenya: The Largest and Most Advanced Economy in East and Central Africa

Dr. Moses Ikiara, Managing Director of KenInvest (Kenya Investment Authority), mentions some of the reasons why investors should consider Kenya as a preferred investment destination.

“Kenya is a great product to sell. Our economy is quite big by African standards. We account for more than 40% of the East African GDP. Right now, it is a $90 billion economy and it is growing very fast. In the last 20 years, it has grown an average of about 5.5%, but we are targeting double digits, at least 10%. Last year, we recorded 6.3%, so we are accelerating. It is a strong economy. Unlike many economies that are dependent on a single commodity or one or two sectors, we are an economy that is very diversified. About 32% of the GDP is from agriculture, industry accounts for about 15%, and the rest is services. Key services include transport, financial, professional, tourism, etc. We are quite strong in the services sub sector. With the infrastructure investment we are making as a country, our economy is going to grow even bigger. Besides the economy, the other key factor for Kenya is the location. Kenya is a very good hub for transport services. We have access to the Indian Ocean. You can connect to any part of Africa, Asia, Europe, America, etc. We now have direct flights from New York. It is easy to do business from Nairobi. We have business people who fly business class overnight, get to London in the morning, do their business during the day, then fly back that night. It is quite convenient and cost-effective. Kenya is also the hub for many other services. In telecommunications, if you test the speed and the cost of our internet, you will find that we beat the speed of many other countries in Asia. When I travel, I am surprised at the things we take for granted in the country. The internet is quite good. The factor that really makes Kenya stand out is our human resources. Many of the multinationals that put their continental headquarters here say that of the many factors that attracted them to Kenya, the one that helped them make the decision to come here is the quality of our human resources. Our people are young, well-educated, easily trainable, good speakers of English. When you combine productivity and cost, we are very competitive globally because we are able to get value for money from the labor we have. From 1963, Kenya has had a very strong track record of respecting private property. Unlike what you see with some governments nationalizing or taking over private property, in Kenya, the government has always respected private property. The Foreign Investments Protection Act was enacted in 1964. Our constitution in 2010 explicitly guaranteed the private sector protection of their capital and investment. The track record has been good. In addition to that, the country has entered into the international agri instruments such as MIGA. We are a member of the International Centre for Settlement of Investment Disputes. We also are the headquarters for the African Trade Insurance Agency where people with a very low appetite for risk can take out a policy if they need to. The business ecosystem is another factor. If you are a foreign investor, when you come to Africa what kind of ecosystem do you find? Are you able to get good consultancy services from top agencies? In Kenya, besides the big four accounting audit firms, we have many other consultancy agencies. We also have a very strong private sector which is organized by the Kenya Private Sector Alliance. Anybody looking for a partner is more likely to find the right partner in our private sector here because it is very well-developed”, says Dr. Moses Ikiara.

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