INVESTMENT IN KENYA
The following factors support Kenya’s attractiveness as an investment destination that favour both local and foreign investment:
- 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. Kenya is currently discussing signing of Foreign Investment Protection Agreement with Canada.
- Political Stability
Since independence, Kenya has maintained remarkable stability and has been a beacon of peace in the region. With the promulgation of a new constitution in 2010, 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 around the world.
- Strategic Location
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 investor’s access to the East African Community and the Common Market for Eastern And Southern Africa (COMESA) regional markets with access to over 390 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 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 abolishing exchange controls, removing price controls and import licensing. The government has also freed the Kenya shilling exchange rate to be market driven. Capital Markets are open for foreign participation. There are no restrictions on remittances of profits and dividends.
- Preferential Market Access
As indicated earlier, 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 Favored 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 Common Market of Eastern and Southern Africa (COMESA).
- 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).