High input costs, taxes dim Kenya’s appeal to investors

NAIROBI, Kenya, July 10 – For decades, Kenya has enjoyed a reputation as East Africa’s investment gateway, attracting multinational corporations with its strategic location, relatively sophisticated financial sector, modern transport…..

✨ Key Highlights

Kenya, once the undisputed investment gateway of East Africa, is facing growing competition for foreign direct investment due to high operating costs and policy uncertainties, challenging its traditional advantages.

$1.5 billion: The estimated foreign direct investment attracted by Kenya in 2024, trailing regional rivals like Ethiopia.
President William Ruto's administration is pursuing export-led industrialization, but faces challenges from high electricity costs (up to Sh24 per kilowatt-hour) and an unpredictable tax regime.
Regional competitors like Rwanda, Tanzania, Ethiopia, and Egypt are aggressively attracting investors with lower energy costs, tax incentives, and streamlined regulations.