Kenya has improved her investment outside the country by around 37%; the investment majorly increased in 2023 from 610 million in 2022 to 832.4 million in 2023 with a year on year variation of 35.5%. The increase in Investment shows that the firms in the country had been sourcing internationally to increase their source of income, expand their markets as well as maximise their gains outside the country. This is a milestone for the country as it helps boost the relations with the the associated countries, promote foreign trade and increase its revenue.
The country has increased investments regionally in Uganda,Tanzania and Ethiopia too. Uganda is the top investment destination with approximately KES 104.6 billion, followed by Ethiopia at KES 101.9 billion, and Tanzania at KES 96.7 billion. The growth in investment is attributed to to the improving relationship with Kenya and her neighbours and their growing population, increasing demand for services. Despite all this the investment of Kenyan firms in Tanzania is declining by 6.6%. This is likely attributed to devaluation of Tanzania’s currency, complex tax regulations in Tanzania and competitive nature of Tanzania’s enterprises.
The country has also established territories in Democratic Republic Of Congo(DRC),Mauritius and South Africa; these accounted for more than half of Kenyan assets abroad. Outside Africa,Kenya has improved her investment in United Kingdom by 50.9% to 70.3 billion despite cutting her investment in US and United Arab Emirates due to high interest rates, currency pressures, and reduced returns, combined with a strategic reallocation of capital to faster-growing African markets where Kenyan firms enjoy a competitive edge.
New Investment by these firms also increased to KES 161.9 billion with a year on year increase of 122.8% as compared to 2022.The investment has been majorly established by sectors such as banking, telecommunication and insurance.
Also read:Kenyan Leaders Raise a Complaint as Tanzania Bans Trade.
