Kenya's private sector faces growing risks from its reliance on foreign capital, according to the 2024 Foreign Investment Survey (FIS). While foreign investment fuels growth, it also exposes the economy to currency risks and debt vulnerabilities, with a significant increase in net outflows in 2023.

• Private Sector External Debt (PSED) saw net outflows surge to KShs 85.4 billion in 2023, compared to KShs 11.4 billion in 2022.
• International Finance Institutions (IFIs), including the African Development Bank, International Finance Corporation, and European Investment Bank, are the largest creditors, accounting for 23.1% of PSED.
• The decline in inflows and a weaker Kenyan Shilling in 2023 made foreign-denominated debt repayments more costly for local firms.