The Questions
1. What opportunities exist for investors in your country?
2. What are the challenges facing investors?
3. What advice would you offer investors?
4. What is government doing and what needs to be done to improve the investment climate?
5. How can the financial sector help in facilitating investment in your country?
1 Kenya is largely an agro-related economy and this offers the most attractive opportunities to investors. Our success stories have been related to agro-processing and horticultural exports into Europe.
The country has significant advantages over its neighbours. There is a huge educated workforce with strong management competencies. Kenya is well established, cosmopolitan and benefits from good communications and links. It is already an established hub for multinationals into east Africa. With the exception of Johannesburg, no other African city can match this.
2 Poor infrastructure, particularly roads and rail, is a tremendous problem. The new government has ambitious plans but no money. There are opportunities for infrastructure development investors as the government is now looking at build-operate-transfer schemes.
3 Investors have to take a long view on investment in Kenya. Liberalisation of the economy, such as removing trade barriers, has taken away any inherent advantages of being here. You have to compete and meet international benchmarks.
4 Kenya is dependent on donor aid so the new government is working hard to address the concerns of the aid agencies, such as the World Bank and the IMF. It has recently drawn up an ethics bills aimed at tackling corruption. Dealing with these problems will create a better climate for the private sector.
5 There are a lot of institutions and many of the international banks are in Kenya. Sophisticated services are available but there are few takers. This hinders development of the market.