There are several compelling reasons that make Kenya an attractive investment destination. These advantages provide opportunities for increased international competitiveness and a supportive environment for businesses looking to expand or establish their business.
Favorable Economic Policy: The Kenyan government has undertaken significant economic liberalization and reforms to promote trade and investment. They have removed price controls, interest rate controls, foreign exchange controls, and some import licenses. In addition, sound fiscal and monetary policies, improved economic governance, and the privatization of state-owned enterprises have ensured macroeconomic stability.
Favorable Legal Environment: Kenya’s political system is a multi-party democracy, with laws administered by the legislative branch. The constitution protects private property rights and guarantees protection against the gratuitous expropriation of property. Kenya is also a signatory to international investment protection agreements such as the Multilateral Investment Guarantee Agency (MIGA) and a member of the International Council for the Settlement of Investment Disputes (ICSID), providing additional legal support to investors.
Strategic geographic location and market access: As a gateway to East and Central Africa, Kenya benefits from its proximity to the Indian Ocean, making it an ideal manufacturing and distribution base to serve markets in Africa, Europe, the Middle East, South Asia and other Indian Ocean islands. Kenya also enjoys preferential trade agreements with various regions such as the African Growth and Opportunity Act (AGOA), the East African Community, the Common Market for Eastern and Southern Africa (COMESA), the Africa, Caribbean and Pacific (ACP-EU) Economic Partnership Agreement (EPA) and the Generalized System of Preferences (GSP).
Strong private sector and entrepreneurial tradition: Kenya’s mixed economy is underpinned by a diverse and vibrant private sector, comprising of small local enterprises, medium-sized businesses and multinational corporations. This business ecosystem provides a wide range of production and services for both domestic consumption and export, with readily available raw materials and professional servicesт meeting international standards.
A large and educated workforce: Kenya boasts a large workforce of over 15 million people, who are known for their education and English language skills, making them highly adaptable. Investors can access a skilled pool of professionals in a variety of fields and skill levels at reasonable wages.
A strong physical infrastructure: Kenya has invested in a strong physical infrastructure, including international airports, an extensive road and rail network, a modern deep-water port in Mombasa capable of handling bulk and containerized cargo, a thriving energy sector, and advanced digital telecommunications networks. These factors position Kenya as a financial, services, and transportation hub for East and Central Africa.
Quality of Life: Kenya offers investors and their families a pleasant environment to live and work in, with excellent accommodation, shopping, education, healthcare and leisure facilities.
Ease of Company Formation – The government has made concerted efforts to make it easier to register a company in Kenya and generally operate and comply with Kenyan company and tax laws. This makes it easy to explore investment opportunities in Kenya.