Kenya is one of the leading countries in Africa in terms of growth, best investment opportunities and technology. Many countries prefer to invest in Kenya because of some of prevailing attractive environment for investors. In this article, I want to dig deep into this topic and look at fifteen reasons why you should invest in Kenya.
1. East Africa’s largest economy
Kenya has the second largest population in East African Community at slightly over 50Million and is growing at a rate of 2.7% per cent per annum. There is a growing trend towards urbanization of villages and towns across the 47 Counties. This is contributing to an increase in consumer demands for high quality goods and services. This trend is expected to continue with 50 percent of the population expected to live in urban areas by 2050.
This is a clear case why you should think of investing in Kenya. Currently, there is a clear trend of diaspora investing in Kenya which is a confirmation that a few have seen this opportunity.
2. Low risk investment environment
The climatic environment Kenya offers is the strongest and best in East African Community (EAC) with increasing flow of FDI more than in any other EAC country. The high volumes of FDI come from both emerging as well as developed markets.
HOUSE PLANS IN KENYA
As compared to her neighbours, Uganda and Tanzania, the environment offered in Kenya is more attractive to foreign investors from far and wide. This gives you lots of options when you think of investing in Kenya. You can invest in cheap lands for sale in Kenya or in manufacturing sector. You can think also of the good technological environment and see what you can come up with.
3. Strategic location as regional financial, communication and transport hub
By investing in Kenya, you will be enjoying the benefits of being in a regional financial, communication and transport hub. Nairobi Stock Exchange is the most robust stock exchange in not just the region but also in Africa. Many companies raise money all the time due to high appetite from investors.
Jomo Kenyatta International Airport is undoubtedly the busiest airport in East and Central Africa. A lot of flights to Africa and major European destinations go via Jomo Kenyatta International Airport. There is a good road network countrywide and more roads are coming up as well. The road network is opening up rural places and acting as a catalyst to drive urbanization of rural centres.
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2 Bedroom House in Mbale Vihiga County, 14 days later. Affordable Housing, Less than Ksh1M Budget
4. Market access
Kenya is a member of several regional economic blocks which opens up market for investors in Kenya. Her membership to East African Community (EAC) opens up a market of over 135 million while her membership to Common Market for Eastern and Southern Africa (COMESA) opens up a market of over 450 million people.
Kenya is also a member of African Growth and Opportunities Act (AGOA) which brings a quota free and duty free access to the USA market for over 6000 items produced in Kenya. Kenya also have access to EU markets, thanks to agreements like Africa Caribbean and Pacific-European Union (ACP-EU) Economic Partnership Agreement (EPA).Think about it, by investing in Kenya, your investment will be exposed to such a bigger market.
5. Political and macro-economic stability
Kenya is proving to be a mature democracy after several years of one party rule. Unlike in many African countries with challenge with incumbent president, Kenya has over the past two decades, so power exchange hands among three different presidents without much challenge. We boost of robust opposition leadership which keeps the government in check both at county level as well as national level. This has not only brought mature democracy but has also enhanced more democratic space for those who want to do businesses.
Kenya has witnessed a fairly stable macroeconomics in the region. The inflation rate, price levels, rates of economic growth as well as growth in domestic products have moved in the right direction and have also improved compared to other countries in the region. The inflation rate has been within a 4% rate down from the high of 7% years ago. As at June 2020, the inflation rate was around 4.69%.
There are lots of infrastructure projects currently underway in Kenya. Some have been concluded and delivered while some are still under construction. Some of the key investment in infrastructure under public private partnership include;
USD 14.5 billion Konza Technology City “Silicon City” IT hub to be built on 5000 acres of land in Machakos County.
USD 5.5 billion Lamu Port Southern Sudan – Ethiopia Transport Corridor Construction of Lamu Port headquarters is in progress.
USD 3.6 billion Standard Gauge Railway links Kenya’s Indian Ocean port city of Mombasa to the capital Nairobi
USD 654 million Jomo Kenyatta International Airport expansion comprises of a 178,000m2 facility due for completion in 2017, complemented by Nairobi Commuter Rail Service linking the city centre to the airport.
USD 366 million The Port of Mombasa harbour channel was deepened by 15 metres and widened to 500 metres to accommodate larger vessels.
USD 360 million Construction of the eight-lane controlled-access 50km Nairobi– Thika superhighway was completed in 2012. It has led to the emergence of new
USD 30 million renovation of Kisumu port seeking to restore the vibrancy of the port connecting the three East African countries.
7. Reducing energy cost and improving energy availability
The government of Kenya has identified the need to not only reduce the energy cost but also improve its availability by ensuring the generation of additional energy as well as efficiency in its consumption as priorities in the Vision 2030. This is because energy has been identified in Kenya as one of the infrastructural enablers of the three pillars of the said Vision 2030.
Now, so as to promote the renewable energy projects such as wind and solar energy development program on a commercial scale, the Government of Kenya has introduced a policy identified as the Feed-In Tariff (FIT) in order to attract the private investors. This policy is a strategy which aims at increasing investment in renewable energy technologies.
This provides best investment opportunities in Kenya not only to the locals but also to the foreigners. The opportunities are such as;
- Developing diesel plants and hydro-power
- Generate energy by use of renewable sources e.g. geo-thermol, wind and solar sources
- Construct pipeline and storage facilities for petroleum products
- Explore petroleum deposits in other potential regions of the country
8. Well Established Private Sector
Among the East African countries, it is only Kenya that has a very substantial and well established private sector which also include significant number of foreign investors. It is for this reason that she is viewed as among the most resilient in the entire globe. Over the years, Kenya has always been touted as a market economy. And some of the key players who come out to voice the issues that concern the private sector are as follows;
- Federation of Kenya Employers (FKE)
- Kenya Private Sector Alliance (KEPSA)
- Kenya Association of Manufacturers (KAM)
Additionally, the government of Kenya has also been equally supportive as it regularly carries out policy dialogue with the private sector players through the Prime Minister Round Tables.
9. Highly skilled Human Resource
One of the things that Kenya boasts of is the huge pool of highly schooled, talented and above all, sought after human resource not only locally but also internationally. Due to their eloquence in the English language, qualified professional staffs can be hired in all occupations as well as in all levels of proficiency, and at sensible pay-scales. This also promotes Kenya diaspora investment.
10. Vibrant Capital Markets
Investing in Kenya is for sure a good deal since she is a member of the World Trade Organization (WTO) and this gives her products access to over 90% of world markets. She also receives the ‘Most Favoured Nation (MFN)’ treatment.
11. Strong Entrepreneurial and Innovative Environment
Well known as East Africa’s ‘home of innovation’ Kenya has such a robust entrepreneurial and innovative environment. She provides a collection of manufactured goods, agricultural products as well as business services for local consumption as well as for export.
For instance, it may be hard to believe but the truth is, Kenya was the first country in the whole world to introduce mobile money, ‘M-PESA’. This is an innovation that enables users to transfer cash from one person to another by use of their mobile phones. M-PESA has been one of the best investment opportunities in Kenya since its inception, and having succeeded hugely in the country, a number of countries around the globe are now duplicating it.
12. Unique Tourist Products
Coming third in the list of Kenya’s leading foreign exchange earners after Agriculture and Manufacturing as first and second respectively, tourism is a large contributor to the county’s GDP and has since been growing at a faster rate, largely due to the government support, political stability as well as liberalization.
Now, Kenya boasts of its unique tourist attraction that investors can take advantage of. Talk of the beautiful coastal beaches, national parks and game reserves, caves and river deltas, beautiful geographical landscapes, fresh and salt water lakes, savannah grasslands, forests, coral reefs, abundant wildlife in their natural habitats and very conducive climate.
Other unique tourist products investors can take advantage of include the mountains, hot springs, world heritage sites, zoology and botany as well as rich cultural histories.
Parks such as Nakuru, Maasai Mara and Amboseli are among the 7 parks out of the 26 Parks and Game reserves in Kenya which are fully operational and account for 80% and above, of total number of visitors coming to Kenya. Investors can therefore come in to purchase land, develop and add value to the remaining 19 as this sector is among those that provide best investment opportunities in Kenya.
13. High Return Investment Opportunities
Just as its mentioned in the above point, there are a total of 19 parks and game reserves in Kenya that aren’t fully operational as at now. This therefore presents an opportunity to investors who would want to invest in Kenya to purchase land, since it is one of the high return investment opportunities in Kenya, and not only develop but also add value to the other parks with infrastructure and modern facilities.
There are quite a number of programs and strategies that the government has set aside to attract investment into the tourism sector. Such programs include;
- Build brand new top-notch international hotels chains
- Establish three resort cities
- Develop high value niche products
- Brand premium parks
- Develop a replica of Kenya Utalii College down at the coast.
These, among others, are investment opportunities that any investor willing to invest in Kenya shouldn’t miss at any cost.
14. Technology hub for East Africa
This is the sector that expands each and every day, not only in Kenya but in the entire globe. Now, in Kenya, it provides best investment opportunities as those willing to invest can tap into the increasing population to offer communication outlets and modern technology e.g. the mobile phones services.
It is also in this sector that investors can come in and provide internet connectivity, as this will also enhance economic growth not only in Kenya but also in East Africa at large.
15. Preferred Home to International Organizations
Being the leading economy in East Africa, Kenya is not only strategically placed but also has well developed business infrastructure, a fact that makes her a natural choice for those willing to invest. This has also made her a preferred home to countless international organizations, which have made her their regional hub.
The reason why this has been so is because of the access both the local and the foreign investors get into the larger East African Community and the regional markets, all of which have access to over 350 million consumers.
Nairobi, which is her capital is also a major transport hub in the entire East Africa since it has connections from the Jomo Kenyatta International Airport to major destinations around the globe. This therefore gives investors best reasons to invest in Kenya as their products and services will have access to wide markets.
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Thinking of Investing in Kenya?
Think of West Kenya Real Estate Ltd. We partner with both locals and foreign investors to explore and invest together. We give you opportunity to invest along with us in lands for sale Kenya. Visit Invest in Kenya, Invest with us page today.
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If you are looking a house designs in Kenya or a construction company in Kenya for your next project, think Marble Engineering and Construction Ltd.
We are a Design and Build Construction Company in Kenya with over 25 years of experience in active building construction in Kenya. We mainly do house plans, project planning, building construction, renovations and extensions, institutional building, commercial office blocks and plumbing and drainage services.