Kenya’s economy had improved a lot and is continuously improving. Experts believed that the country’s economy has great potential as it has several major resources like mineral deposits, lots of natural resources, fertile land and regular rainfall. A number of natural resources and manmade attractions make Kenya the greenest and most scenic of all the African countries. The country has lots of friendly people too. There are lots of quality medical facilities, five star hotels and restaurants, resorts and beaches and entertainment facilities can be found here. With these, the country will experience rapid economic growth and development.

To start a business in a country, you need to know about its economy first. You will also need to have a primary idea of the whole process of starting the business. And we are here for you to help.

1. Access to one of the fastest growing regions in the world

Kenya and the East African region are growing steadily in both population and GDP. East Africa is one of the world’s fastest growing regions with an economy approaching USD $1 Trillion.

Kenya is growing at a rate of 2.7 percent per annum. There is a rising trend towards urbanization, which is contributing to an increase in consumer demand for high value goods. This trend is fore casted to continue, with 50 percent of the population expected to live in urban areas by 2050.

2. Strategic Location

Kenya is strategically located as a gateway to East and Central African region. With a border to the Indian Ocean, Kenya is well suited as a production and distribution base to service Africa, Europe, the Middle East, South Asia and other Indian Ocean Islands. Jomo Kenyatta International Airport functions as an effective Air hub between Africa, Europe and Asia. Kenya also serves as the Communication Hub of the region.

3. Kenya is open and secure for foreign investment

Kenya is the most open country in the region for Foreign Direct Investment (FDI). All sectors of the economy are fully liberalised for investment. 100% foreign ownership of investment is permitted.

Kenya ranks highly across many key business climate indicators for inward investors. Kenya’s comparatively strong public finances help to create a lower risk and more stable business environment for foreign invesors.

4. Highly competitive & skilled labor force

Kenya has a huge pool of labor force is one of the best educated in the world, English-speaking and extremely adaptable. Qualified professional staff can be hired at reasonable pay-scales, in all occupations and at all levels of expertise. Benefit from a large and growing workforce.

Kenya is very highly rated for recruitment potential, workforce trainability and women and youth engagement in the labour force. (Global Competitiveness Report, 2017/18 and WEF, 2017) The cost of labor in Kenya is relatively low compared to other countries in the region. This makes it a good place to set up manufacturing or other labor-intensive businesses.

5. Positive investment environment

You should consider investing in Kenya because of the rapid development of the country’s economic and social infrastructure. For instance, the government allows free 100% foreign ownership of private investments.

Such measures are great for attracting FDIs to the country who contribute significantly to the country’s GDP. What this means for you as an investor in Kenya is that you’ll find it easy and profitable to conduct business in such a region.

6. Growth of the Economic and Social Infrastructure

Kenya has a relatively well developed physical infrastructural facilities including, four international airports, an extensive road and railway network, a modern deep sea port at Mombasa capable of handling bulk and other containerized cargo, an expanding, liberalized energy sector and digital telecommunication networks. As a result, Kenya continues to develop as financial, other services and transport hub for the East and Central African region.

Therefore, you will find it easy to carry out business and invest in Kenya. However, it is worth mentioning that the country only allows FDI investment from foreigners with a minimum security of $100,000.

7. Foreign Market Access through Agreements and Other Trade Treaties

Investing in Kenya is worth it as the country has positioned itself to become an essential member of various trade groups, including COMESA, the EAC, and SADC, just to mention a few. Take COMESA (Common Market for Eastern and Southern Africa), for example, a trade treaty that gives the Sub Saharan country access to a market of over 400 million people spread across 19 countries. Trade in such regions is free, reaffirming the claim to invest in Kenya.

8. Low Risk Investment Environment

Kenya’s investment climate is the strongest in the EAC, with FDI flowing in from emerging and developed markets and a high volume of multinational companies with regional and continent-wide headquartered in the country.

FDI has been on the rise and is stronger than investment in other EAC countries. Given its position as the economic, commercial and logistical hub of East Africa, private equity capital is now flowing into Kenya.

In 2013, Kenya was the top destination for international investors in the Eastern Africa Region after attracting 12 private equity deals valued at over USD 110.5 million; and in 2015, PwC ranked Nairobi as the most attractive African city for FDI.

9. Political stability and Economic Stability

Kenya is a relatively stable country with a strong government. Kenya enjoys stable macroeconomic environment. The government operate sound macroeconomic policies that promote growth by providing a more secure environment for private investment decisions. This makes it a good destination for investment, as there is less risk of political instability or conflict. Kenya has not seen any major conflicts for many years.

10. Unique business and tourism fusion

Tourism is one of Kenya’s most important industries, and has strong linkages with transport, food production, retail and entertainment. As one of the world’s most popular business and leisure tourism destinations, investors have the opportunity to leverage several Government-led programmes to attract investment into the industry. These include the establishment of resort cities, branding of premium parks, development of high value niche products and MICE tourism facilities, and the construction of new internationally branded hotels, among others.

Conclusion

Kenya has been a reliable and popular place for foreign investors. You can try your fortune to benefit from the opportunities here. This place has a great potential. With all the investment incentives, it makes a favourable place for investment. So, grab the opportunity and make the best investment.