High business costs and policy uncertainty are diminishing Kenya's investment appeal, forcing investors to compare it with regional markets offering lower costs and more predictable policies, according to PwC Eastern Africa.

• Key factors eroding investor confidence include high taxes, expensive energy, and regulatory complexities, which reduce returns and increase uncertainty.
• Isaac Otolo, PwC Eastern Africa's Advisory – Transactions Services Partner, identified policy predictability, simplified regulations, and strengthened investment promotion as crucial reforms.
• Regional competitors like Tanzania, Uganda, Rwanda, and Ethiopia are becoming more aggressive in attracting capital through lower operating costs and streamlined processes.