- The Economy Is Liberalized
- Investment Opportunities
- The Big Four Agenda
Kenya has had considerable growth in the past few years. As of 2020, Gross Domestic Product (GDP) stood at USD 98,843 billion with per capita income of USD 1,838 according to World Bank data. From 2015-2019, Kenya’s economic growth averaged 5.7%, making it one of the fastest growing economies in Sub-Saharan Africa. The performance of the economy has been boosted by a stable macroeconomic environment, positive investor confidence and a resilient services sector.
Kenya’s Economy is distinguished from most African countries by the fact that it is one of the most diversified and advanced.
Key sectors of the economy include agriculture, manufacturing, real estate and services. Although agriculture remains the mainstay of the economy at 30 per cent of GDP, manufacturing’s share of GDP has been rising significantly over the years. At 10 per cent, manufacturing is the second-largest contributor to GDP, with the processing of agricultural products a key factor in growth.
Kenya operates a liberal economy which promotes trade and investment.
The country has, abolished price and exchange controls. The Government has also instituted measures to sustain macro-economic stability such as prudent fiscal and monetary policies, improvements in economic governance, and privatization of some public enterprises. These policies continue to promote growth by providing a more secure environment for private sector investment decisions.
Kenya guarantees capital repatriation and remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits.
Private enterprises, both foreign and domestic, can freely establish, acquire, and dispose of business enterprises according to the Companies Act. The Constitution of Kenya provides protection against the expropriation of private property. Only permitted subject to the payment of prompt and fair compensation.
Doing business in Kenya
The Registrar of Companies is responsible for business registrations in Kenya. He/she issues certificates of compliance for foreign companies, certificates of incorporation for local companies and certificates of registration for sole proprietorship and partnerships.
Firms must then obtain registration with National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF) and the Kenya Revenue Authority (KRA) . A business permit should also be obtained from the County Government depending on the business type.
All company and business registrations (sole proprietorship and partnerships) are being done through the ecitizen online platform but for limited liability partnerships (LLPs) registrations which are still manual and are being done at the company registry.
Investment opportunities exist in nearly all the sectors and especially in agro based industries, machinery and building materials, furniture and paper products, garments and textiles, jewellery and watch manufacture, food processing, cosmetics, pharmaceuticals, electronic goods, solar technology products; IT/Data processing, tourism, banking and financial services, housing, roads, ports, railways and energy sector.
For more information visit the Invest in Kenya Website; www.invest.go.ke
As part of the Vision 2030, Kenya’s development blueprint covering the period 2008 to 2030, the Kenyan Government is implementing its Third Term Medium Plan (MTP), between 2017 and 2022. The MTP is being driven through a targeted transformative agenda, known as the Big Four Agenda, based on four socio-economic pillars namely, Increasing Manufacturing; Food and Nutrition Security; Providing affordable Homes and; Universal Health Coverage. This is meant to address the pressing concerns facing Kenyans and create the best environment for achieving accelerated socio-economic transformation.
For further information, visit the The Big Four Agenda Website
Visit Website; big4.delivery.go.ke
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