Kenya has partnered with the United Nations Development Programme (UNDP) and the World Bank to develop and implement an Investment Facilitation Framework and Foreign Direct Investment (FDI) Attraction Strategy.
According to a joint press statement published by UNDP and KenInvest – the country’s investment promotion agency – Rebecca Miano, Cabinet Secretary of Investment, Trade and Industry, said the new framework will simplify investment procedures for domestic and foreign investors.
“To unlock FDI 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,” Miano said.
Ever since the Covid-19 pandemic, the government in Nairobi has struggled to attract businesspeople from abroad, with FDI inflows going down from $1.1bn in 2019 to just $463m in 2021 before making a shy comeback in 2022 ($759m).
In June 2023, the country’s President William Ruto signed the 2023 Finance Act, which includes a series of tax and regulatory changes aimed at improving the FDI climate. According to the US Department of State, however, US businesses in Kenya continue to face bureaucratic processes and delays in accessing business licenses that allow them to operate in the country.
Speaking about the legislation guiding Kenya’s promotion agency, Miano said her government has launched a review of the Investment Promotion Act, enacted in 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.”
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Anthony Ngororano, UNDP resident and representative, said: “As a key partner in Kenya’s development journey, we are gearing up for a collaboration with KenInvest. Together, we aim to remove barriers to investment and strengthen the investment facilitation journey.”