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Kenya in prime position to attract more investors

15 February 2016
– 2 Minute Read

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KENYA has in recent years seen a big increase in investment activity and deal interest, particularly from Europe, most notably the UK, and also the US. There has also been an increase in investment activity from India and the Middle East in the manufacturing sector.

Growing middle class and availability of quality, skilled labour offer investors mature market with several good opportunities available, writes Paras Shah KENYA has in recent years seen a big increase in investment activity and deal interest, particularly from Europe, most notably the UK, and also the US. There has also been an increase in investment activity from India and the Middle East in the manufacturing sector.

South African companies are also growing more aggressive in their expansion plans into the continent, using Kenya as a gateway to the rest of East Africa. Kenya facilitates access to the common market that includes Burundi, Rwanda, Tanzania and Uganda and the country also provides easier access to Ethiopia, the Democratic Republic of the Congo and South Sudan. Recently, Mauritius Union Assurance Group’s purchase of a controlling stake in Phoenix of East Africa Insurance Group was done through Kenya, but resulted in an entry by Mauritius Union into other East African markets.

With a growing middle class and the availability of quality, skilled labour, the Kenyan market is regarded as mature, with several good opportunities available. Companies in Kenya are well respected in terms of the scale of their businesses and ability to compete.

The financial and telecommunications sectors are robust and sophisticated. Transport infrastructure and links to the main centres are good, and the country has a stable and mature financial services sector. In addition, the availability of specialist advisers to guide deal processes is a major factor working in Kenya’s favour. Certain sectors are active in the private equity and mergers and acquisitions space — fast-moving consumer goods, financial services (especially banks, microfinance and insurance companies) and manufacturing.

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