KENYA has done the basic things right for a long time, and investors are now rewarding that consistency.
Last year, Kenya attracted a record $3.2 billion (about Sh413 billion) in foreign direct investment, more than a third higher than the previous year and more than double the 2022 level.
I see four key reasons behind this momentum.
First, investors are buying into companies Kenyans built. Asahi, Vodacom and Amsons have paid premiums for established Kenyan businesses with strong brands and market positions.
Foreign investors taking controlling stakes is also a vote of confidence in Kenyan management, institutions and the economy.
Second, Kenya is a gateway to Africa. Through the East African Community, COMESA and the African Continental Free Trade Area, investors based here can access a continental market of about 1.4 billion people, worth roughly $3.4 trillion (Sh439 trillion).
Africa already accounts for more than 40 per cent of Kenya’s exports. Investments in cement, energy and refining are increasingly being designed to serve regional markets.
Third, Kenya’s clean-energy advantage is becoming increasingly valuable. About 93 per cent of electricity generated on the national grid comes from geothermal, hydro, wind and solar.
This gives manufacturers, data centres and other energy-intensive investments an opportunity to build businesses on a relatively low-carbon electricity base.
The government’s plan to add 7,000 megawatts in seven years could further strengthen this advantage.
Fourth, the economy is expanding while the investment environment is improving. Economic growth reached 5.3 per cent in the first quarter, while the shilling has remained relatively stable.
Interest rates have also fallen, and business registration has been significantly simplified. Special economic and export processing zones, including Tatu City, ARISE IIP and Two Rivers International Free Zone, are attracting multinational investors.
The pipeline is equally significant. Kenya’s Investment Deal Room tracks 58 priority projects valued at about $23 billion (Sh2.97 trillion), spanning energy, roads, rail, ports, aviation, agriculture, digital infrastructure, manufacturing and affordable housing.
Major opportunities include the Rironi-Mau Summit highway, JKIA expansion, geothermal and renewable-energy projects, irrigation schemes, green hydrogen and ammonia, data centres, pharmaceuticals, textiles, vehicle assembly and electric motorcycles.
The message is clear: Kenya is no longer competing simply to attract capital. It is positioning itself as a regional investment and production hub.
