Welcome to Kenya

By Sudi Am mba
05.04.2023

Kenya is a country located in East Africa. It has a wide range of natural beauty, cultural diversity and economic opportunities. It is a popular destination due to its abundant wildlife, stunning landscape, beaches, rich cultural heritage for visitors seeking relaxation, adventure and cultural experiences.

This country is an attractive destination for tourists, expatriates and retirees seeking a high quality of life.

There are several national parks and game reserves in Kenya such as the Maasai Mara, famous for the annual wildebeest migration. Other parks include Amboseli National Park, Tsavo National Park. These parks offer visitors to experience Africa’s Big Five animals (lion, elephant, buffalo, leopard, and rhino) and other animals such zebras, giraffes, rhinos…

Tourists can also take part in cultural experiences such as visiting Maasai villages, learning about local crafts, customs, tasting delicious traditional foods.

There are crystal clear waters, beautiful beaches in Kenya such as Mombasa, Malindi, Lamu which offer visitors opportunities for relaxation, water sports and cultural experiences.

According to the World Tourism Organization, Kenya’s tourism industry generated around 1.6 billion US dollars in foreign exchange earnings in 2019 and welcomed 2.05 million international tourist arrivals. The top tourists countries to Kenya in 2019 were the United States, the United Kingdom, India, China and Germany.

Kenya is also an attractive destination for businesses looking to invest in the region. With its favourable investment climate and affordable real estate, there are opportunities for investment in agriculture, fisheries, renewable energy, handicrafts, real estate in addition to tourism (eco-tourism, adventure tourism…)

key strategic investment opportunities in Kenya:

  • The tourism sector is crucial for the local economy and provide employment for millions of people. It provides opportunities for investment in hotels, resorts, restaurants and other tourism related services.
  • The real estate sector offers opportunities for investment due to a growing demand for quality housing in the country.
  • Information and Communication Technology (ICT): Kenya is a hub for ICT innovation and has a vibrant tech start-up ecosystem. There are opportunities in software development, e-commerce and digital finance. Few examples of successful startups in Kenya include: M-Pesa, Twiga Foods, Sendy, Branch, Sokowatch, Tala, Copia…
  • Agriculture : with a fertile soil and a tropical climate, Kenya is a leading producer of a wide range of crops such as tea, coffee, flowers, fruits and vegetables. Opportunities exist in mechanization, irrigation, value addition along the agricultural value chain.
  • The fisheries sector offers opportunities for fish processing, cold storage, export of seafood products, fresh and processed fish.
  • Manufacturing: Kenya is the largest economy in East Africa and has a large domestic market. There are opportunities for agro-processing, textiles, leather products…The handicraft sector offers opportunities for investment in production, marketing, and export of traditional handicrafts such as beadwork, carvings, and textiles.
  • Energy: the country has significant potential for renewable energy including solar power, wind, geothermal, hydropower. There opportunities for investment in power generation, distribution and transmission.
  • Infrastructure: Kenya is undergoing important infrastructure development such as roads, railways, airports and ports. There are opportunities in project management, construction and engineering.
  • Healthcare: the country has a large and growing demand for healthcare services. There are opportunities in hospital management, pharmaceuticals, medical equipment and supplies.
  • Education: there is a growing demand for quality education especially vocational and technical training, private schools and higher education institutions.

     

  • Trade: With a large population of over 54 million people, the country is the economic hub of East Africa making it a strategic market for many companies. In terms of selling goods to Kenya, there are many opportunities in different sectors such as agriculture, manufacturing, services…
  • In terms of agriculture for instance, Kenya is known for producing tea, coffee, flowers, vegetables, avocados, mangoes, passion fruit. With a growing middle class, there is a growing demand for organic and sustainably produced foods, as well as value-added products such as jams, sauces, dried fruits. Companies that specialize in these areas could find success in selling their products to Kenya.
  • There is also a need for consumer goods such as electronics, appliances as well as entertainment and education. In the service sector, there are demand for technology, financial services and healthcare.

Why invest in Kenya?

  • Strategic location: Kenya is located in East Africa making it a gateway to the East and Central African region with a combined population of over 400 million people. It gives access to a large and growing market that is increasingly becoming attractive to investors.
  • Kenya is also a member of the AfCFTA, the largest trade bloc in the world with 1.4 billion people, a combined GDP of about $3.4 trillion expected to double by 2050.
  • Business-friendly environment: Kenya government is doing its best by implementing several policies to attract foreign investment including tax incentives, relaxed foreign ownership laws, reduced bureaucratic procedures (licensing, business registration), a favourable legal and regulatory framework.
  • Stable economy: Kenya has maintained a stable economy despite some challenges. According to the World Bank, Kenya’s GDP has been increasing at an average annual rate of about 5.3 % over the last decade (2011-2020). It is one of the fastest-growing economy in the region. However, due to the COVID-19 pandemic, the country’s economy contracted by 0.1% in 2020.  The country has a diversified economy with a focus on agriculture, manufacturing, and services.
  • Improving infrastructure: Kenya has invested heavily in its infrastructure in the recent years including roads, railways, airports and ports. This has improved connectivity within the country and other countries in East Africa and make it easier to transport goods and services within the region.
  • Skilled labor force: Kenya has a young and highly skilled labor force, which is increasingly tech-savvy and entrepreneurial. This presents opportunities for investors looking to tap into the country’s pool of talent.
  • Abundant natural resources: Kenya is rich in minerals, oil, gas and renewable energy sources. The country also has a diverse range of agricultural products such as tea, coffee, flowers and fresh produce.

In one sentence: Kenya presents attractive investment opportunities for businesses who want to expand into East Africa and tap into this growing market with a stable and business friendly environment.

Like in any field, investments require proper research and due diligence. The potential returns on investment may not always be guaranteed.

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