Kenyan firms have invested at least Sh113.3 billion ($1.1 billion) in East African countries within the last four years. The investments were made despite concerns that failure to enforce regional double tax treaty will raise costs for firms.
According to the report presented, the cash deployed by Kenyan companies spreading wings regionally was injected in 55 projects across the sectors, helping create some 3,100 jobs.
The Ernst & Young (EY) Attractiveness Survey 2019, which focuses on private sector investments, ranks Kenya seventh-largest source of foreign direct investments (FDIs) into East Africa.
The EY partner for transaction advisory services, Mr Antony Muthusi said that for Kenya, telecoms has always been one of the key drivers of FDIs initially in deploying infrastructure for voice and later data.
He mentioned financial services, which is now leaning more towards Fintechs (financial technology services), and others such as manufacturing and agriculture. He said;
“Going forward, I see TMT (technology, media, and telecoms) continue playing a big role.”
The report further ranks the United Arab Emirates (UAE) as the third-largest investor with a capital investment of Sh370.8 billion, followed by India at Sh206 billion, the UK Sh154.5 billion, and South Africa Sh154.5 billion.