Doing Business in Kenya
Kenya has become one of East Africa’s most prominent economies, with a GDP of around $99.25 billion, and a growth rate of 5.7% in 2019. It is the 62nd Largest economy in the World.
Built on a traditionally strong agricultural sector, and having developed rapidly in the 21st century, Kenya’s economy is now the largest in the East and Central Africa region, with a range of high performance industries including tourism, telecommunications, energy, mining, and oil exploration. Driven by numerous government reforms, Kenya’s business landscape is changing positively and positioning to become more attractive to foreign investment, especially in terms of starting small or medium-sized businesses. A continental gateway, Kenya is a thriving hub for regional and international investment interests – and organisations wishing to set up in the country may find a range of business support services, including global payroll providers, to help with the process. Kenya’s global reach is also growing: the country is a member-state of the EAC, the Commonwealth of Nations, and has close relations with its neighbours around the African Great Lakes. In 2019, the World Bank ranked Kenya 56 on its Ease of Doing Business Survey – an improvement of 73 places from its standing in 2014.
Why Kenya
There are plenty of reasons to regard Kenya as an investment target, including:
- Economic potential: Kenya represents an exciting economic environment in which to do business across a wide range of sectors, including agriculture, manufacturing, transport, energy, communications and more. Innovative, creative entrepreneurs will find plenty of opportunities to gain a foothold in the country.
- International gateway: Kenya is a gateway to continental Africa, and benefits from numerous international trade relationships. Beyond its membership of the EAC, Kenya is part of trade schemes within the Africa Growth and Opportunity Act, the WTO, COMESA, and SADC (soon to be a Free Trade Area).
- Business reform: Kenya’s economic profile is trending upwards. The development of the country’s financial sector is growing – and in 2016 it was ranked 42 (out of 140 countries) for ‘Financial Maturity’, by the World Economic Forum. Over 44 international banks are registered in Kenya, and it has the most developed stock market in the East and Central Africa region.
- Transport infrastructure: Kenya is served by an extensive network of road, rail, sea and air links, which connect domestically and internationally. Jomo Kenyatta International, and the port of Mombasa, are respectively the busiest air and sea ports on the African continent.
- Market strength: Kenya is a growing consumer market and has the second-largest population in the EAC. The country’s middle class is expanding, while income per capital has grown at a rate of 2% over the past 10 years. A young, digitally-connected population (with an average age of 18) is driving a buoyant consumer culture.
Foreign Direct Investment in Kenya
The Kenyan government is usually identified as investment friendly and has represented numerous regulatory reforms to simplify both Foreign and Local Investment. Kenya has a well-developed social and physical infrastructure. It is considered the main alternative location to South Africa, for major corporations seeking entry into the African continent.