Kenya unveils structure to attract Sh1.5 trillion foreign direct investors

Kenya has entered into a strategic partnership with the United Nations Development Programme (UNDP) and World Bank to simplify business operations for investors and attract $10 billion (Sh1.52 trillion) in Foreign Direct Investment (FDI).

Cabinet Secretary of Investment, Trade and Industry Rebecca Miano (pictured) said the framework will streamline procedures to attract domestic and foreign investors and leverage the UNDP’s global network, even as the ministry embarks on aligning old investment legislation with the 2010 Constitution.

Investment destination

“To unlock Foreign Direct Investment and position Kenya as a competitive investment destination, the National Investment Council through its Secretariat, the Kenya Investment Authority has developed an Investment Facilitation Framework to create a transparent, predictable, efficient, and trusted mechanism,” she said over the weekend.

While speaking at an investment forum comprising representatives from UNDP and the World Bank, Miano said the partnership with UNDP will review old laws and policies overtaken by changing times to make it easier for local and foreign investors to tap business opportunities in the country.

The legislative reforms will also focus on the design and operationalisation of an investor facilitation platform and institutional capacity development including organisation review and strategy development to strengthen the Authority.

Some of the legislation guiding Kenya’s investment promotion have been in existence since 2004.

 “We have kicked off the review of the Investment Promotion Act 2004 to align with the Constitution and to make it responsive to the dynamic nature of the globe, as well as the domestic investment environment that continues to present new challenges,” she said. Also present were UNDP Resident Representative Anthony Ngororano and KenInvest chief executive June Chepkemei, who said the partnership will be supported by a robust strategic plan under development, adding that authority had “made progress with regard to (its) strategy development covering our next growth cycle of 2023/24 – 2027/28” and enhance the quality of FDIs and grow domestic Direct Investments.

Ngororano said as a key partner in Kenya’s development, UNDP is gearing up for collaboration with KenInvest to remove barriers to investment and strengthen the investment facilitation.