Kenya Investment Authority (KenInvest) is a statutory body established in 2004 through an Act of Parliament(Investment Promotion Act No. 6 of 2004) to promote investments in Kenya. It is responsible for facilitating the implementation of new investment projects, providing after-care services for new and existing investments, as well as organizing investment promotion activities both locally and internationally. The core functions of KenInvest include; policy advocacy, investment promotion, and facilitation, which includes investor tracking and aftercare services.
General sector speciﬁc information
Agriculture is the mainstay of the Kenyan economy directly contributing26 percent of the GDP annually, and another 25 percent indirectly.
The sector accounts for 65 percent of Kenya’s total exports and provides more than 70 percent of informal employment in rural areas. The sector comprises crops, livestock,ﬁsheries, land, Water, cooperatives, environment, regional development, and forestry sub-sectors. It also includes the development of arid and semi-arid lands.
This sector is mainly agro-based at the moment and plays an important role in adding value to agricultural output by providing forward and backward linkages with the agricultural sector. However, there is a shift to export-oriented manufacturing as the main thrust of Kenya’s industrial policy since the country aims to raise the share of products in the regional market from 7 to 15 percent and develop niche products for existing and new markets.
Kenya is promoting the development of Special Economic Zones (SEZs), Industrial Parks, Industrial Clusters, small and medium scale manufacturing firms, development of niche products, and commercialization of research and development results.
Tourism is one of Kenya’s leading foreign exchange earners and the third largest contributor to the GDP after agriculture and manufacturing. The sector has been growing fast as a result of various factors such as liberalization, diversiﬁcation of tourist markets and continued government support and commitment to providing an enabling environment, coupled with successful tourism promotion and political stability.
Kenya has a well-developed building and construction industry with quality engineering, building, and architectural design services being readily available. This industry is currently on an upward trend following rehabilitation and reconstruction of roads and bridges under the Kenya Urban Transport Infrastructure Programme.
Kenyan ﬁnancial sector comprises of banking, insurance, capital markets, pension schemes and quasi-banking institutions such as Savings and Credit Cooperative Societies(SACCOs); microﬁnance institutions(MFIs); building societies, Kenya Post Ofﬁce Savings Bank (KPOSB); Development Finance Institutions; (DFIs) and informal ﬁnancial services such as Rotating Savings and Credit Associations (ROSCAs).
Financial intermediation in Kenya has continued to record high growth rates due to increased lending as reﬂected in the rise of domestic credit backed by signiﬁcant ﬁnancial innovation.
Financial services are expected to play critical in the next 18 or so years by providing better intermediation between saving and investments.
Kenya’s energy policy emphasizes sustainable energy supplies at effective costs, so as to achieve national development goals. The policy also emphasizes the delivery of quality energy services to attract investments in those economic activities of which energy inputs are basic to production at competitive prices. The country is dependent mainly on three forms of energy namely: petroleum, electricity, and Wood—fuel. To a lesser extent wind, solar and biogas are used as alternative energy sources and are being developed at a large scale.
Petroleum is the major source of commercial energy in the country, providing about 87 percent of the country’s requirements. The transport sector consumes more than half of the petroleum fuels used in the country. Industry consumes some 31 percent of petroleum fuels.