ASV is currently focusing on the Kenyan Investment Landscape. Kenya is the largest and most advanced economy in East and Central Africa. Its GDP accounts for more than 50 per cent of the region’s total and in terms of current market prices, its 2014 GDP stood at $58.1 billion. Kenya is the largest and the most advanced economy in East and Central Africa, boasting strong growth prospects supported by an emerging, urban middle class and an increasing appetite for high-value goods and services. In this view, we provide our esteemed clients with sound investment advice and support on how and in what optimal ways to successfully tap into these prime investment opportunities. To further amplify the soundness of our promises, the reputable organisation United Nations Conference on Trade and Development (UNCTAD) amply summarised the Kenyan Investment market as follows: “Kenya is developing as the favoured business hub, not only for oil and gas exploration in the Sub-Saharan region, but also for agricultural production, industrial production and transport. The country is set to develop further as a regional hub for energy, services and manufacturing over the next decade” UNCTAD, 2012).
Due to the successful promulgation of Kenya’s new constitution that gave birth to the devolved system of governance, a myriad of highly fruitful investment opportunities exist within the existing 47 counties. The following examples represent the types of significant investor value-adding projects that we are currently executing within the Kenyan Investment Landscape. -Please note: This list is representative, not exhaustive.
– Matchmaking activities between a number of Danish Companies and the Ministry of Industrialisation. This is a 5-year FDI Investment project. This investment projects objective is to transform Nairobi-County from a brown to a green economy.
– Developing Aquaculture in Nairobi-Country through the transformation Secretariat. This is a two-year project with the Ministry of Agriculture, Livestock and Fisheries.
– Organisation of a three-day impactful business investment conference (May, 2016) aimed at sensitising a number of Danish companies to some of the prime investment opportunities that are available within the 47 existing counties.
The following core nine reasons provide concrete validations as to why Kenya is a highly rewarding investment destination.
1. 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-EU Cotonou Partnership Agreement, and the Africa Growth and Opportunities Act (AGOA). This allows exports from Kenya to enjoy preferential access to world markets under a number of special access and duty reduction programmes.
Since independence, Kenya has maintained remarkable stability despite changes in its political system. Since the re-emergence of multiparty democracy and promulgation of a new constitution in 2011, Kenyans have enjoyed an increased degree of freedom.
3. 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.
4. Access to a Large pool of Highly Educated and Skilled Work Force
Kenya prides itself on its large pool of highly educated, skilled and sought after work force in Africa – trained from within the country and from reputable internationally renowned institutions around the world.
5. 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 investors access to the larger East African Community and regional markets with access to over 385 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. All these are coupled with a convenient Time zone of (GMT +3).
6. Highly Developed Social and Physical Infrastructure
Kenya affords a pleasant and quality standard of living with its spectacular and diverse natural resources. These impressive qualities range from wildlife and sceneries that include the world famous Maasai Mara. The country also boasts of high quality social amenities such as restaurants, hospitals and entertainment spots. Hence, these impressive qualities further justify the reason as to why the country attracts a high number of Expatriates.
7. Fully Liberalised Economy
Kenya fully liberalised its economy by eliminating all obstacles that previously hampered the free flow of trade and private investment. These include exchange controls, import and export licensing, as well as restrictions on remittances of profits and dividends.
8. Preferential Market Access
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 Favoured 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).
9. 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). Furthermore, the government frequently conducts regular policy dialogue with private sector players through various impactful stakeholder Round Tables.
-Source: ASV, Client Relations & Kenya Investment Authority (KenInvest).