Kenya is eyeing investment deals worth $2 billion (Sh257.9 billion) in the first quarter of 2026, as the government seeks to more than double Foreign Direct Investments in the short-term.
This comes after a significant growth last year, where investment facilitation surpassed the $1 billion (Sh128.9 billion) mark to hit $1.78 billion (Sh229.5 billion) from $881 million (Sh113.6 billion) in 2024, facilitating at least 38, 849 jobs.
The actual value of FDIs in 2024 was $1.5 billion (Sh193.4 billion), with a target of hitting $2 billion last year, numbers expected to be confirmed by the Economic Survey 2026 due later this year, with the US, China and Japan as key inflow sources.
Data by Invest Kenya (Kenya Investment Authority) shows investment projects registered last year were 167, with renewable energy, communications, electronic components, fossil fuels, manufacturing, and agriculture as key sectors driving FDIs.
The growth in FDIs is pegged primarily on Kenya’s strategic position as a regional hub, significant infrastructure development, a growing digital economy and investor-friendly policies.
Speaking in Nairobi yesterday during a “state of Kenya’s investment landscape” briefing and launch of the upcoming “Kenya International Investment Conference (KIICO) 2026”, Investment Promotion PS Abubakar Hassan Abubakar said the forum will facilitate the signing of investment deals worth over $2 billion.
He said key transactions are already in the national investment pipeline in agriculture, manufacturing, renewable energy and ICT and Business Process Outsourcing (BP0) sectors.
BPO sector involves subcontracting non-core business operations such as customer service, finance, Human Resource and IT to third-party providers to reduce costs, enhance efficiency, and leverage specialised expertise.
“These are not speculative commitments; they are bankable, advanced-stage projects aligned to Kenya’s development priorities,” Abubakar affirmed.
Kenya is also expected to host the COMESA Investment Forum and the Africa Green Industrialisation Initiative Forum in Nairobi, in March, which, according to the PS, the forums will serve as a regional and global hub for investment dialogue, deal-making and partnerships which Kenya seeks to capitalise on.
The government is fronting investment reforms and key policy measures such as VAT refunds and transfer pricing, land leases, Export Processing Zones and Special Economic Zones alignment, aimed at accelerating deal closure, improving the business environment, and enhancing investor protection.
Invest Kenya has created a ‘One Stop Centre’ that streamlines the investment process by consolidating services from multiple government agencies into a single, digital and physical location.
It facilitates business and investor registration, tax matters, immigration work permits and investment certificates to simplify setting up operations in the country.
“We want to offer seamless services, quality data, be reliable and facilitate investments in a very agile manner. We have to be innovative because the world is moving,” KenInvest John Mwendwa said.
This, as the government commits to address key challenges such as the cost of doing business in Kenya mainly pegged on costly power (electricity) and high taxation, with corruption also being a concern for investors.
The government has set an ambitious plan of expanding the national grid supply from 3 Giga Watts to 100 Giga Watts in the long-term (by 2040), while addressing climate change by ensuring that 100 per cent of the power in the grid is renewable.
Meanwhile, industries are enjoying significantly lower electricity tariffs at night through the Time of Use tariff scheme, introduced to boost industrial competitiveness and manage power demand, offering a 50 per cent discount on specific hours.
Kenya is currently the sixth largest African economy ($136 billion in 2025) with five per cent GDP growth, low inflation and high literacy supporting an attractive investment environment.
by MARTIN MWITA
