DOING BUSINESS IN KENYA
(Investing in Kenya: Series 1)
It is true that Kenya operates a liberal
economy which promotes trade and
investment. The Government has instituted
measures to sustain macro-economic
stability such as prudent fiscal and
monetary policies, improvements in
economic governance and privatization of
some public enterprises. These policies
continue to promote growth by providing
a more secure environment for private
sector investment decisions. Additionally, Kenya guarantees capital repatriation and remittance of
dividends and interest to foreign investors, who are free to convert and repatriate profits. Private
enterprises, both foreign and domestic, can freely establish, acquire, and dispose of business enterprises
according to the dictates of the Companies Act and the Competition Act.
The Constitution of Kenya provides protection against the expropriation of private property. This is
only permitted subject to the payment of prompt and fair compensation. This safeguard is intended to
guarantee investors that their right to private property is well protected and anchored in the supreme
law of the land.
Consequently, Kenya’s investment climate remained resilient supported by a stable macroeconomic
environment that makes it conducive for the private sector to invest even as global uncertainties
increases and global financing conditions tightens. Intra-regional trade in goods and services and cross
border investments continues to grow, thus complementing domestic initiatives. Besides the East
African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA), the
African Continental Free Trade Area (AfCFTA), which is the largest free trade area in the world,
continued to present a great opportunity for Kenya’s private sector. The AfCFTA Investment Protocol
adopted in 2023 has contributed to grow the intraregional Foreign Direct Investment (FDI).
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Kenya offers many advantages that make it a good choice for settlement and investment. There is the
spectacular and diverse nature with landscapes ranging from mountains to beautiful beaches. The
country also offers a rich cultural experience and many forms of entertainment where residents and
visitors can gain insight into the many diverse and fascinating cultures found in the country.
The country is also known for a wide range of quality restaurants, world standard primary and
secondary schools, high quality health care infrastructure, good transport network and quality housing
in key towns.
The following key factors have continued to influence the choice of Kenya as an investment destination:
- Availabilty of highly skilled and productive labour force;
- Ease market access;
- Macroeconomic stability;
- Technology advancement and innovation;
- Access to e-government services;
- political stability;
- Kenya being a logistic hub; and
- Ease of doing business through existence of investor friendly financial services, availabilty of
electricity, ease acess to internet and water supply and unification of business permits.
Though Kenya is positioning itself as the economic giant of Africa, the Government working to
streamline the following areas in order to improve investors confidence to invest in the country:
- Tax administration;
- Political environment;
- Cost of electricity;
- Access to finance, and
- Insecurity
In our next insight series, we shall look into Environmental, Social and Governance (ESG) Compliance
and how businesses and enterprises are expected to integrate ESG compliance measures so as to operate
responsibly and adhere to sustainability standards and best ethical practices.
How we may help:
At A.O.Wanga Advocates we are happy to assist you in setting up in Kenya, ensure your presence in
the country is legal and compliant to the immigration laws, support you in complying with Kenyan
labour laws and tax administration requirements among other legal advisory services.
For more information, please contact us on info@aowangaadvocates.com or +254794600191
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