Investment Challenges to overcome in Kenya
- Unreliability of the power supply Companies are required to invest in their own power generation in order to ensure a backup.
- Administration of taxation, Investors can face delays in obtaining refunds of VAT and withholding taxes and customs clearance can take time with goods subject to a multiplicity of inspections.
- Security is also a concern, Major efforts have been made to tackle crime and this is paying off in terms of increased safety in Nairobi.
- Corruption is another challenge, fraudulent use of companies puts existing investors at risk, and perceptions of corruption within the public and private sectors are a disincentive to new investment or expansion of existing investment. Steps have been taken to address mitigate risks in this area
- Policy inconsistencies in some sectors
- High costs of doing business
- Technology transfer risks
- Trends of peace instability which tends to affect long term investments