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About Kenya

  1. Location and Key Geographical Features

Kenya is located in the Eastern African part of the African Continent, bordered by Ethiopia and South Sudan to the North; Uganda to the West; Tanzania to the South; Somalia to the North East and the Indian Ocean to the South East.

 

 

The country enjoys a tropical climate with sunshine all year round.  The temperature average between 20˚C and 28˚C throughout the year. The country boasts of numerous unique tourist attractions and beautiful landscapes, ranging from open Savannah, Coastal beaches and River deltas.  Kenya is also a haven of Natural wonders such as the memorable wildebeest migration.  It is also home to the “Big Five” game and has won international acclaim as the authentic Wildlife Safari destination.

The latest country Brand Index (CBI) reports that 82% of visitors to Kenya demonstrated brand loyalty, with the main contributing factors being the generosity, warmth and hospitality of the Kenyan people.

 

  1. The Kenya-US Relations

Kenya and the US established diplomatic relations immediately after independence in 1963. Ever Since, the two countries have enjoyed cordial bilateral relations founded on longstanding mutual interests in areas of regional security, economic and commercial interests among others. In August 2018, Presidents Uhuru Muigai Kenyatta and Donald Trump formally elevated the relationship to a Strategic Partnership and established a corresponding Annual Strategic Dialogue.  In July 2020, the United States and Kenya launched negotiations for a bilateral Free Trade Agreement, the first ever in Sub-Saharan Africa.

 

  1. Investing in Kenya

The Kenya Vision 2030 aims to transform Kenya into a newly industrializing, middle income country providing a high quality way of life to all its citizens by the year 2030.  The Government is currently implementing the Third Medium Plan 2018-2022 of Kenya Vision 2030 which outlines programmes and projects aimed at achieving the “Big Four” Agenda, Sustainable Development goals (SDGs) and the Africa Agenda 2063. To implement some of these projects the Government is seeking private sector partners on a Public Private Partnership basis.

 

  1. Why invest in Kenya

The Virtual Trade Mission to Kenya 2021, is aimed at exposing the American Business Community to business and investment opportunities in Kenya. It is hoped that by the end of the Trade Mission, Business entities from both sides will be able to connect and take advantage of the business and investment opportunities shared.

Amongst the countries of the Eastern and Central African region, most American, European and Asian countries prefer to invest in Kenya because of the following favourable fundamentals:

  1. Kenya is the largest and most advanced economy in East and Central Africa with strong growth prospects supported by investments in infrastructure and emerging urban middle class. It is ranked 3rd largest economy in Sub-Saharan Africa with a GDP of US$97B ((2019);
  2. Kenya’s investment climate is the strongest in the East African Community (EAC)with Foreign Direct Investment flowing in from emerging and developed markets and a high volume of multinational companies with regional and continent-wide head quartered in the country;
  3. Kenya is among the 10 most improved economies in the World Bank Ease of doing Business Report (2019) from position 80 in 2017 to position 56 in 2019.
  4. Kenya’s Geographical location makes the country ideal for strategic partnership aimed at improving regional and global market share.
  5. Kenya is the dominant economy in the East African Community, contributing approximately 50% of the region’s GDP and is Centrally located in region, providing investors access to wider consumer Market of up to 174 million people in the East Africa Community (EAC) and 560 million in the Common Market for Eastern and Southern African Africa (COMESA) region;
  6. Kenya is a member of several trade arrangements and a beneficiary of Trade Promotion Schemes that include the World Trade Organization, EAC-EU Trade Agreement, African Continental Free Trade (AfCFTA) and Africa Growth and Opportunity Act (AGOA);

President Uhuru Kenyatta signs the agreement establishing the African Continental Free Trade Area (AfCFTA) on behalf of Kenya, March 21, 2018in Kigali, Rwanda

 

  1. Kenya enjoys political stability and a favourable investment environment which is supported by constitution. The National and County Governments work with the private sector as a key partner in the development and growth of the economy

H.E. President Mwai Kibaki signs Kenya’s new Constitution, 2010, into law

 

  1. Kenya has a well-developed private sector and presents many opportunities for investment in sole and joint ventures, a Public Private Partnership (PPP). The Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE), Kenya National Chamber of Commerce and Industry and the Kenya Association of Manufacturers (KAM) Play Key Advocacy roles;

 

  1. Kenya has the most developed stock market in the East and Central Africa region, Nairobi Stock Exchange (NSE) has market capitalization of USD23 billion by 2019;

Stock brokers at the floor of the digitized Nairobi Securities Exchange

  1. Kenya has a large, highly developed, skilled and trainable workforce with a population aged 15-64 accounting for 57% of the total population;

Engineering Students of the University of Nairobi, demonstrating their knowledge & skills

 

  1. Nairobi, the Capital City, is ranked 6th in the World’s most dynamic cities according to the World Economic Forum City Momentum Index 2018. The City has attractive tourism products, hospitable and friendly people, quality night life, and hotels and restaurants offering local and international cuisines.  Over the next five years, Nairobi is projected to have one of the fastest growing populations in the world

Nairobi, The Capital City of Kenya

 

  1. Kenya has an extensive and relatively well-developed banking industry, serving the Domestic, regional and international markets. There are 41 banks registered in Kenya that include local, regional and global brands.  In the 2019 World Bank Ease of Doing Business Index Report, Kenya is ranked position 8 out of 190 countries in ease of accessing credit.

Kenya Commercial Bank (KCB). The Largest Regional Bank with a presence in each of the Countries in the East and Central Africa Region.

 

  1. Kenya has one of the highest rates of Internet Access in the continent with 89.4% (approximately 42.6 million) of its population having internet access making it ideal for investment in internet driven and knowledge economy;

  1. Kenya tops in Mobile money penetration globally 100%, mobile money penetration (Communications Authority of Kenya, 2019)

Customers waiting for service at a mobile money kiosk

  1. Kenya has the potential to improve its power generation capacity from 2711mw in 2018 to 5,000+ mw in the medium term, through focus on geothermal and other green and cost-effective energy sources. This will ensure adequate power supply and significantly reduce cost of doing business.;
  2. Kenya has put in place supportive legal frameworks to promote investment in the country both at the National and County Governments level.