Investment Promotion in Kenya Case Solution & Answer

Investment Promotion in Kenya Case Solution 

1. Introduction

1.1 Background

The Kenya Investment authority was initiated in 2003 where the mission was to enhance the investment and development in Kenya and make the country prosperous in business and industrialization. The KenInvest Strategic Plan of 2018-2023 is to develop blue-print and make the nation from average per capita income to standard level where the living standard of people would become higher and sustainable by 2030. The KenInvest mandate is to promote and increase the investment in Kenya and works in the advancement and development purposes. Its motive is to increase the level of private investments and take it almost 20% of the GDP by 2023. Apart from that, it aims to maintain the private sector to grow speedy manufacturing, construction, infrastructure and telecommunications. For this purpose, various business legislations are enacted, drying the period of strategic plan.

Kenya is an underdeveloped country where the per capita income is lower than the developed country and standard of living is average because of poverty, ineffective policies of government and infrastructure. The country is not well-structured and organized to promote the business activities and trade. The main reason behind this backwardness is lower literacy rate where the mostly the elite class are educated. Because of low advancement, different investment promotion agencies have started to work in the country as autonomous agencies in order to increase the investment activities where the main emphasis is driven on the foreign direct investments.

From last decade, it has been analysed that after the launch of investment promotion agencies; the country’s economy has raised and the living standard is also improved. These agencies promote the private sector and make them healthier entrepreneurial activities, which can increase the ratio of private sector in GDP of the country. The KenInvest has made several strategic plans and has implemented various policies where they have attracted various countries to invest in Kenya’s agricultural sector, manufacturing and mining of oil and gas. It is forecasted that Kenya would become a developed country by the year of 2030 because of such agencies which would work for the investment promotion representatives in the country.

1.2 History of KenInvest

The origin of KenInvest started to promote the investment promotion in the country and reduced the bureaucratic process for issuing the licence to the investors. The ministry of finance approved the KenInvest to ensure the investments in the private sector and to support the investors by the strategic policies to develop their interest for investing in the country. In 2004, the government of Kenya under the Act# 6 issued the licence to the investment promotion agencies where they can legally operate in the country as a representative of the promotional business investments. The Kenya Investment Authority (KenInvest) originated that time for promoting and encouraging of investment agency in a country.

The mandate of KenInvest is facilitating the growth and development purposes in the country by reviewing and providing anenvironment to the local and foreign investorsfor making investments in the country. They are also working on opening the gateways for opportunities and exemptions to the investors under the legislation and acts. After the mandate of KenInvest; Kenya would become a favourable country for the investors to invest and grow their businesses in.

1.3 Vision and Mission Statement


A global leader in investment attraction and retention.

Mission Statement

To promote and facilitate the domestic and foreign investments in Kenya by advocating for a conducive investment climate, providing accurate information and offering quality services for a prosperous nation.

1.4 Strategic Plan Preparation

The development of strategic plan is based on the achievement of previous plans, which were made for the period of 2013-2017, where the country got the higher investment ratio from the local and foreign investors. In order to make an efficient strategic plan; the agency has conducted economic surveys, made business legislations and acts policies,world’s investment reports and world bank reports based on the efficient strategies for creating investment opportunities. The current strategic plan is based on the ground of strategic plans of MDA’s and World Bank reports. The stakeholders are given an authority to select the Board of Directors and decisions of the agency. Moreover, the branches are open in different counties to take the technical support and also for having a collaboration with the foreign investors.

2. Kenya’s Investment Agenda

Investing in Kenya is to promote the country for having development and globalizing in industrial and economic stability. However, there are some challenges for the investors but strategic plans and policies are made to provide the best conditions and favourable environment to the local as well as the foreign investors. The midterm plan is made for such hindrances.

2.1 Agenda for Kenya’s Development

The agenda of KenInvest is to develop Kenya for industrial and manufacturing purposes and to bring better development in the country by 2030. The vision is to make a 5 years’ plan project where the investment would be done in various sectors and different entrepreneurial businesses would be initiated, which would contribute in the GDP of the country and increase of the per capita income of the people. The agency brought the country in sound position which showed Kenya as the highest country where investment was dine at the higher level across the globe.

In the year of 2018, the GDP of Kenya was $86 billion and per capita income was estimated at $1790. The other sectors that were contributing higher in the GDP, were: agricultural, manufacturing, mining and fishing and forestry. The comparative analysis of the last decade showed that the country had a significant impact by the promotional agencies. (See Exhibit 1)

2.2 Mid-term Plan

The Mid-term plan (2018-2022) has the vision of increasing the country’s GDP by 10% per annum by the end of the project plan. It has standard policies, which aid the investors in investing in the country and in making economic plans which would reduce the poverty and increase the job opportunities for the people. The main target of the plan is to increase the GDP contribution of manufacturing the sector of by 20% and making structural changes in the economy and increasing the country’s well-being. It has also the motive of enhancing the mining and fishing sectors because the oil and sea food sector make the country highly suitable for foreign exchange………………………….

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