Kenya is a country in East Africa with a coastline on the Indian Ocean. It encompasses savannah, Lakelands, the dramatic Great Rift Valley, and mountain highlands. It’s also home to wildlife like lions, elephants, and rhinos. From Nairobi, the capital, safaris visit the Maasai Mara Reserve, known for its annual wildebeest migrations, and Amboseli National Park, offering views of Tanzania’s 5,895 meters Mountain Kilimanjaro.
The British Empire established the East Africa Protectorate in 1895, from 1920 known as the Kenya Colony. The independent Republic of Kenya was formed in 1963. It was ruled as a de facto one party state by the Kenya African National Union otherwise known as KANU led by Jomo Kenyatta from 1963 to 1978.
Reasons why you should invest in Kenya are:
- Kenya is a safe place compared to some surrounding African countries
- Kenya is a lower-middle-income economy
- Kenya is home to over 100 major international companies and organizations, including the United Nations Environment Program
- It is Africa’s fourth-largest exchange in terms of trading volume
- The government of Kenya is generally investment-friendly
According to the most recent data, 81.5 percent of people aged 15 years and above in Kenya were able to read and write a simple statement in 2018.
The adult literacy rate slightly increased from around 79 percent in 2014 and was very close to the level registered in 2000.
The current life expectancy for Kenya in 2021 is 66.95 years, a 0.39 percent increase from 2020.
The life expectancy for Kenya in 2020 was 66.70 years, a 0.39 percent increase from 2019.
The life expectancy for Kenya in 2019 was 66.44 years, a 0.39 percent increase from 2018.
Why You Should Invest In Kenya
Kenya is a safe place compared to some surrounding African countries although there are issues with crime in major cities, and many government travel advisories warn travelers of the threat of terrorism. As a potential investor, you should check your Government’s travel advice for the latest information.
Travelers will always attract unwanted attention from beggars and potential pickpockets.
From street scammers to more serious threats, a little common sense goes a long way in Keyna, and staying up to date on the local situation is essential no matter where you go.
Kenya is a lower-middle-income economy. Although Kenya’s economy is the largest and most developed in eastern and central Africa, 36.1 percent of its population lives below the international poverty line.
This severe poverty is mainly caused by economic inequality, government corruption, and health problems.
Nairobi is the capital and the largest city in Kenya. The name comes from the Maasai phrase Enkare Nyrobi, which translates to “cool water”, is a reference to the Nairobi River which flows through the city.
According to data obtained from the 2009 population census, The main city had a population of 3,138,369 while the metropolitan area has a population of 6,547,547. The city is popularly referred to as the Green City in the Sun. Nairobi was founded in 1899 by the colonial authorities in British East Africa, as a rail depot on the Uganda Railway. The town quickly grew to replace Machakos as the capital of Kenya in 1907. After independence in 1963, Nairobi became the capital of the Republic of Kenya.
During Kenya’s colonial period, the city became a center for the colony’s coffee, tea, and sisal industry. The city lies on the River Athi in the southern part of the country and has an elevation of 1,795 meters above sea level. With a population of 3.36 million in 2011, Nairobi is the second-largest city by population in the African Great Lakes region after Dar es Salaam, Tanzania. According to the 2009 census, in the administrative area of Nairobi, 3,138,295 inhabitants lived within 696 square kilometers. Nairobi is the 10th largest city in Africa,
including the population of its suburbs.
Home to thousands of Kenyan businesses and over 100 major international companies and organizations, including the United Nations Environment Program known as UN Environment and the United Nations Office at Nairobi with the acronym UNON, Nairobi is an established hub for business and culture. The Nairobi Securities. The exchange which is known as NSE is one of the largest in Africa and the second-oldest exchange
on the continent.
It is Africa’s fourth-largest exchange in terms of trading volume, capable of making 10 million trades a day.
Apart from Nairobi, another major city in Kenya is Mombassa.
Mombasa is a coastal city in southeast Kenya along the Indian Ocean. The city is known as the white and blue city in Kenya. It is the country’s oldest and second-largest city, with a population of about 1,208,333 people according to the 2019 census.
Mombasa is famous for its beaches, world-class beach resorts, and historical significance. It is the most popular tourist destination in Kenya and is the second-largest city in Kenya.
The Gross Domestic Product (GDP) in Kenya was worth 98.84 billion US dollars in 2020, according to official data from the World Bank. The GDP value of Kenya represents 0.09 percent of the world economy.
The Economy of Kenya is a market-based economy with a few state enterprises. Major industries include agriculture, forestry, fishing, mining, manufacturing, energy, tourism and financial services.
As of 2020, Kenya had the third-largest economy in Sub-Saharan Africa, coming behind Nigeria and South Africa.
The government of Kenya is generally investment-friendly and has enacted several regulatory reforms to simplify both foreign and local investment, including the creation of an export processing zone.
An increasingly significant portion of Kenya’s foreign financial inflows are remittances by non-resident Kenyans who work in the United States, the Middle East, Europe, and Asia. As of September 2018, economic prospects were positive, with above 6 percent GDP growth expected.
This growth was attributed largely to expansions in the telecommunications, transport, and construction sectors, and a recovery in agriculture.
These improvements are supported by a large pool of highly educated professional workers.
There is a high level of IT literacy and innovation, especially among young Kenyans.
In 2020, Kenya ranked 56th in the World Bank ease of doing the business rating, up from 61st in 2019 out of 190 countries.
Compared to its neighbors, Kenya has a well-developed social and physical infrastructure.
Foreign investments in Kenya remain relatively weak considering the size of its economy and its level of development.
Nevertheless, Kenya is one of the largest recipients of Foreign direct investment in Africa.
According to the figures from the United Nations center for trade and development 2021 World. Investment Report, Foreign direct investment flows to Kenya declined to 717 million dollars in 2020 compared to 1 billion dollars in 2019, following the global economic crisis triggered by the Covid 19 pandemic. The total stock of Foreign direct investments stood at 10 billion dollars in 2020.
In recent years, the ICT sector has attracted the most foreign direct investment, thanks to the arrival of fiber optics from 2009 to 2010.
The other sectors targeted by foreign direct investment are banking, tourism, infrastructure, and extractive industries. The United Kingdom, Netherlands, Belgium, China, and South Africa are the main investors in Kenya.
In 2020, in the wake of the pandemic, Kenya introduced local participation requirements in various sectors, including insurance, telecommunications, and ICT services.
The Kenyan government has been actively taking measures and implementing reforms to attract foreign direct investment.
As a result, the country made progress in the Doing Business ranking published by the World Bank. The country was ranked 56th worldwide, for the ease of doing business in 2020 Doing Business Report of the World Bank.
This represents an improvement from the 2019 edition when the country was ranked 61st. The country has improved in making dealing with construction permits more transparent. Kenya also improved the reliability of electricity supply by modernizing its existing infrastructure.
Registering property, getting credit, protecting minority investors, tax payments, and resolving insolvency are the other aspects where the country has made notable changes.
The development of public-private partnerships as part of the ‘Vision 2030 strategy should also have a positive influence on foreign direct investment inflows.
Kenya plays a pivotal role in the East African Community, acting as a regional economic hub. It benefits from a strategic geographic location with sea access, a growing entrepreneurial middle class, diversified agriculture and expanding services sector, and recently discovered hydrocarbons resources.
Nevertheless, numerous obstacles to investment persist, notably the country’s poor quality infrastructures which are still the best in East Africa though, skills shortages, instability related to terrorist risk and political, social, and ethnic divisions, ineffective rule of law, and corruption.
What to consider if you invest in Kenya
Kenya’s economy has many strong points in terms of attracting foreign direct investment which is it is a market economy and functions as the commercial, economic, technological, and logistic hub of East Africa.
It is a regional financial center, has a strong industrial base, and well-developed road infrastructure.
In urban areas, Kenya also has a young, well-educated, and English-speaking population. Kenya has vibrant horticultural and tourism sectors, although the latter is volatile and subject to domestic political stability and regional security concerns.
The regional energy sector has a significant potential including offshore gas fields with directly exploitable reserves within Kenya’s territory and indirect inputs through and exports from Kenyan ports.
The benefit of this is that finally, foreign investors will benefit from the same treatment as national investors from administrative and judicial authorities.
However, factors that may discourage foreign direct investment in the country are:
High level of corruption.
A slow judicial system
High unemployment and poverty
Recent security issues related to terrorism and crime
Costly skilled labor
High costs of energy, instability of the electricity distribution system, and poor infrastructure.
Recent uncertainty concerning the capital constitution of foreign companies and administrative difficulties in obtaining work permits as foreigners are not permitted to own land in Kenya they can rent land for 99 years.
Finally, in order to benefit from certain government incentives, foreign investors must invest a minimum of 100,000 dollars. Government Measures to Motivate or Restrict foreign direct investment: In April 2013, the Government passed a law on public-private partnerships in order to attract foreign investment in the infrastructure sector.
The Government has put in place an extensive program of privatization in various sectors, such as food processing, construction, equipment, education, and energy.
The special economic zones and export processing zones benefit from targeted incentives. The Mining Law has recently been amended to limit foreign participation in the oil, gas, and minerals mining sectors.
However, in 2015, that law was amended in order to increase the attractiveness of the investment climate in the extractive industries.
A new Company Act, promulgated in 2015, was supposed to compel a foreign company to reserve at least 30 percent of its capital to Kenyan citizens.
However, that clause was suspended. Despite these questions which remain unresolved, the law modernises registration procedures and operations for companies. In 2015, the Business Registration Services Act set up the Business Registration Service.
This new law supervises company registration and assigns to counties the registration of the name and concepts of a company, which cuts costs of registering a company. The Kenyan Government also introduced the Insolvency Act in 2015 in order to improve the legal framework in case of bankruptcy of a company.
In 2017, the government announced the development of the project Kenya Investment Policy to strengthen the creation of an environment conducive to investment growth. The policy provides for the revision of legislation affecting the entire investment network.
Kenya has signed 14 bilateral investment conventions. Foreign investment opportunities in Kenya. When it comes to investing, we all look for business opportunities with the most profitable returns or at best with high demand. If the Kenyan economic forecast for the year 2021 is anything to go by, 2021 will be a year of prosperity in terms of investment. There are a number of opportunities available for investment in the different sectors of the Kenyan economy.
Here is a list of top profitable opportunities to invest in this year:
A venture into the agribusiness sector in both small and large scale activities is a profitable area to invest in this 2021. With the increasing rates of unemployment especially amongst the youth, agribusiness offers a solution in terms of job and wealth creation given that Kenya is also an agri-based economy. Some of the profitable areas to invest in include:
A hatchery for egg production
Construction of livestock houses
Offering consultancy services to farmers
Offering agricultural financial services.
Poultry and pig farming
Greenhouse farming and many more.
Real estate investment in Kenya
Kenya has witnessed an increase in its population over the years. This increase in population has led to a demand for housing in growing towns and the increase of residential property values in the year 2019. This trend is expected to continue in 2021 therefore making real estate amongst
the top profitable ventures for the year.
ICT (Tech) investment
Ict is one of the top investment opportunity for investors in the year 2021. This year is expected to usher an era of increased ICT economic related activities in the country. This has been evident in the growth of e business, mobile money transactions and ICT startups in the previous years.
Some of the opportunities for investment in ICT are:
Film animation production
Cyber security and anti-fraud systems
Mobile and web business transactions
Mobile and web applications
Stock market in Kenya
Investing in the Nairobi Securities Exchange called the NSE through licensed stockbrokers and investment banks. You can acquire shares through any broker of your choice. 2021 is an ideal time to invest with the NSE since it is expected to display a better performance after performing poorly in the previous year due to a number of factors like an unstable economy.
Investing in Tourism in Kenya
There are a lot of opportunities to invest in in the tourism sector. Kenya is amongst the top tourist destinations in Africa and the government is also committed to providing a tourism friendly environment to enhance tourism. Some of the available opportunities to invest in tourism include;
Tourism and hospitality training
Amusement parks, restaurants, casinos, and clubs
Renewable energy investment
Kenya is one of the most active countries in terms of embracing renewable energy in Africa. An overwhelming 70 percent of power in Kenya is sourced from renewable energy. There are many profitable investment ventures in the Kenyan energy sector from renewable sources such as:
Solar, wind and geothermal power generation
Innovations in the renewable energy sector
Drilling of geothermal wells
Sacco investment in Kenya
Savings and Credit Co-operative Society have enabled the Kenyan micro financial sector to grow over the years. The returns from an investment in a Sacco come in the form of dividends from interests on loans.
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Kenya is a country in East Africa with a coastline on the Indian Ocean. Life expectancy for Kenya in 2021 is 66.95 years, a 0.39 percent increase from 2020. Mombasa is famous for its beaches, world-class beach resorts, and historical significance.
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