The Kenyan government has accelerated policy and regulatory reforms to attract foreign direct investments in key sectors of the economy, officials said on Thursday
Cabinet Secretary for Industrialization and Enterprise Development, Adan Mohammed, said that the reforms on the license and tax regimes, automation of government services, along with infrastructure upgrade have been making Kenya into an “ideal investment destination”.
“Kenya has been rated the 7th most attractive investment destination in the emerging markets category and we intend to retain this position through incentives that boost ease of doing business,” Mohammed told investors in the capital Nairobi.
He spoke at a round table to review the impact of business reforms that have been implemented by state agencies in the last 18 months.
The reforms focused on business registration, property transaction, construction permitting, access to reliable power and credit for start-ups.
Mohammed noted that automation of government services has eliminated bottlenecks that frustrate potential investors.
“We are committed to improve the business environment through efficient and transparent issuance of permits. The online system for submitting taxes has eliminated gross inefficiencies and corruption,” Mohammed said.
The Kenyan government has fast-tracked implementation of key infrastructure projects like roads, rails and ports to facilitate movement of goods and services.
Mohammed noted that a modern transport and communication infrastructure will lower the cost of doing business in Kenya.
“Investors are looking for a low cost destination where there is skilled labor, good roads, reliable power supply, security and proper regulations,” said Mohammed.
He added that investment in under sea cable, 4G technology and voice data has improved Kenya’s attractiveness to foreign investors.
The bulk of foreign direct investments in Kenya have been concentrated in services and manufacturing sectors.
Mohammed said institutional investors have lately expressed interest in green energy.
He revealed the government will showcase technology related innovations to potential investors during the upcoming Global Entrepreneurship Summit in Nairobi. Enditem
