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Why Invest in Kenya

Why Invest in Kenya

Kenya is a desirable investment destination due to the following;

  • Excellent connectivity to major world-wide hubs and time zones that make it easy to work with most continents. Nairobi is the undisputed transportation hub of Eastern and Central Africa and the largest city between Cairo and Johannesburg. Also the Port of Mombasa is the most important deep-water port in the region, supplying the shipping needs of more than a dozen countries.
  • A deep pool of educated and skilled manpower that have made the country the manufacturing, commercial and financial hub in eastern and central Africa.
  • A fully liberalized economy without exchange or price controls. There are no restrictions on domestic and foreign borrowing by residents and non-residents.
  • The most developed stock market in the Eastern and Central African region i.e. the Nairobi Stock Exchange (NSE).
  • A relatively well developed manufacturing base in the Eastern African region.
  • Potential for exploration and exploitation of mineral resources. Kenya’s mineral resources though limited, are attractive and a potential source of valuable materials such as titanium. At present exploration of oil is ongoing off the Indian Ocean Coast and other parts of the country.
  • Favorable weather /Climate as well as attractive and diverse social/cultural environment
  • Kenya’s membership in regional trading bodies such as COMESA, AU , EAC and provides potential investors with a large potential market
  • Investment insurance, this provides potential investors with insurance for their investment in Kenya against a wide range of non-commercial risks.
  • Tax Treaties and Investment Promotion and Protection Agreements, Kenya is a signatory to a large and growing number of tax treaties and investment promotion and protection Agreements such as the Multilateral Trade System (MTS) ACP Cotonou Agreement, and the Africa Growth and Opportunities Act. This allows exports from Kenya to enjoy preferential access to world markets under a number of special access and duty reduction programmes.
  • Stability, since independence, Kenya has maintained remarkable stability despite changes in its political system Since the re-emergence of multiparty democracy and promulgation of a new constitution in 2011, Kenyans have enjoyed an increased degree of freedom.
  • Regulatory Reforms, Kenya is making efforts to lower the cost of doing business by conducting extensive business regulatory reforms intended to substantially reduce the number of licensing requirements and to make the licensing regimes more simple and transparent and focused on legitimate regulatory purposes.
  • Access to Large pool of Highly Educated and Skilled Work Force, Kenya prides itself in its large pool of highly educated, skilled and sought after work force in Africa, trained from within the country and in institutions in around the world.
  • Strategic location, Located on the East African coast and having the port of Mombasa, Kenya is strategically located for investors wanting to access the East and Central African market.
  • Kenya is an economic centre of the East Africa Community comprising 138 million people and a GDP of US$ 138 million.
  • As the leading economy in East Africa, Kenya’s’ strategic location and its well developed business infrastructure make it a natural choice for investors and many international firms have made it their regional hub. This grants investors’ access to the larger East African Community and regional markets with access to over 385 million consumers. Nairobi is also a major transport Hub in East Africa with Connections from Jomo Kenyatta International Airport to Major Destinations around the world.
  • Highly Developed Social and Physical Infrastructure, Kenya affords a pleasant and quality standard of living with its spectacular and diverse natural resources. Ranging from wildlife and sceneries. Including the world famous Maasai Mara. The country also boasts of high quality social amenities such as restaurants, hospitals and Entertainment spots. A good reason why the country has the highest number of Expatriates living and working in Kenya.
  • Fully Liberalized Economy, Kenya fully liberalized its economy by removing all obstacles that previously hampered the free flow of trade and private investment. These include exchange controls, import and export licensing, as well as restrictions on remittances of profits and dividends.
  • Preferential Market Access, Kenya is signatory to a number of multilateral and bilateral trade agreements as part of its trade policy. Kenya is a member of the World Trade Organization (WTO) making her products access more than 90% of world markets at Most Favoured Nation (MFN) treatment. In addition, Kenya is member to several trade arrangements and beneficiary to trade-enhancing schemes that include the Africa Growth and opportunity act (AGOA); ACP-EU Trade Agreement and
  • Well Established and Vocal Private Sector, Kenya has a very substantial private sector, including a significant number of foreign investors and is touted as one of the most resilient in the world. The country has always been a market economy. Key players in voicing private-sector concerns include, The Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE) and The Kenya Association of Manufacturers (KAM).
  • Diversified and established economy with strong business sector.
  • Opportunities in agriculture and horticulture, tourism, mining, power generation, ICTs, manufacturing and acquisition of state-owned enterprises.
  • Strong reform gains to encourage investment: coherent vision for economic development, regular meetings between government leaders and investors, new framework for public private partnerships, reinforced investment authority.
  • New constitution with greater separation of powers to maintain broad-based political stability
  • A Range of Tax Treaties and Investment Promotion and Protection Agreements.   Kenya has a number of tax treaties and investment promotion and protection Agreements. Exports from Kenya enjoy preferential access to world markets under a number of special access and duty reduction programmes. Kenya is signatory to various agreements aimed at enhancing trade amongst member states.
  • Multilateral Trade System (MTS):  TheWorld Trade Organization (WTO) is the only international organisation dealing with the global rules of trade between nations. The overriding objective of the WTO is to ensure that trade flows as smoothly, freely and predictably as possible. Kenya has been a member of the WTO since its inception in January 1995.
  • ACP/Cotonou Partnership Agreement. Exports from Kenya entering the European Unionare entitled to duty reductions and freedom from all quota restrictions. Trade preferences include duty-free entry of all industrial products as well as a wide range of agricultural products including beef, fish, dairy products, cereals, fresh and processed fruits and vegetables.
  • African Growth and Opportunity Act (AGOA)  Kenya qualifies for duty free access to the United States of America (USA) market under the African Growth and Opportunity Act enacted by USA. Kenya’s major products that qualify for export under AGOA include textiles, apparels, handicrafts among others
  • Generalised System of Preferences (GSP):  Under the Generalised System of Preferences, a wide range of Kenya’s manufactured products are entitled to preferential duty treatment in the United States of America, Japan, Canada, New Zealand, Australia, Switzerland, Norway, Sweden, Finland, Austria, and other European countries. In addition, no quantitative restrictions are applicable to Kenyan exports on any of the 3,000-plus items currently eligible for GSP treatment.
  • Infrastructure:  The construction of superhighway in city of Nairobi is a leading link for investors for transportation renovation of Kenya Railways, Kenya Airways (Pride of Africa) and Lamu Port has made Kenya a hub of International Transportation Centre
  • Bilateral Trade Agreements:  Kenya has signed bilateral trade agreements with several countries around the world. Some of the countries are already members of existing schemes offering market access/duty reduction preferences as above.