• September 7, 2016

Kenya, officially the Republic of Kenya is a state in East Africa located on the equator with Indian Ocean to the south-east, Tanzania to the south, Uganda to the west and Ethiopia to the north. With a covering area of nearly 5,82,650 km2  Kenya is world’s forty-seventh largest country after Madagascar. The country got its name from Mount Kenya illustrious as the second highest mountain in Africa. Owing to its location, it possesses a warm and humid climate. Nairobi, the capital and largest city of Kenya is designated as regional commercial hub and has a cool climate and gets colder being closer to Mount Kenya surrounded by snow-capped peaks. Presenting its speedy and steady economic growth, Kenya has recorded largest GDP in East and Central Africa.

Escalating Economic Growth

Kenya exemplifies a ground affluent with opportunities for entrepreneurs engrossed in setting new businesses in the country.  Kenya stays one of the ideal destinations for doing business and the credit goes to its variety of opportunities and infrastructural gain to investors. The country is strategically located, making it a gateway to eastern and central Africa region. Foreign investors based in Kenya have the pro to penetrate East African Community and Common Market for East and Southern Africa (COMESA) markets. Besides this, Kenya is a member state of IGAD (Intergovernmental Authority on Development) and CEN – SAD (Community of Sahel – Saharan States) as well.

A Picture of Kenys’s Productive Sector

Kenya has demonstrated its strength in diverse sectors viz. infrastructure, agriculture, building and construction, energy and manufacturing and offer enormous business opportunities in these sectors. In comparison to its neighbors, Kenya has a well-developed social and physical infrastructure.


Over the last decade infrastructure contributed nearly half a percentage to Kenya’s annual per capita GDP growth. Currently, as compared to other countries in Africa the infrastructure has relatively enhanced. Infrastructure is in limelight as enormous Projects have been taken up by government to  develop the infrastructural status and also it offers significant investment opportunities to all the investors in the coming years. For the successful implementation of planned policies the government is seeking private capital support. The government also welcomes innovative ideas from the prospective investors that would further aid to improve the country’s infrastructure.


 Agriculture is one of the fastest growing sectors in the Kenyan economy and contributing almost 26% to its GDP and 25%  indirectly through its ties with manufacturing, distribution and other service related sectors. It is regarded as the backbone of Kenya earning a huge share of foreign exchange and nearly 45% of government revenue. Observing its speedy growth and influence many investors seek interest and wish to invest in this flourishing sector. The sector comprises of  crops, livestock, fisheries, land, water, cooperatives, environment, regional development and forestry sub sectors. Immense joint ventures opportunities are accessible for foreign investors seeking local counterparts, along with export-oriented agri-business, horticulture and processing of oil crops. Complementing its competitive advantage Kenya possesses many other investor friendly factors that make Kenya a favorable location for investment.  The encouraging factors comprises of a well-established export market, affordable labor, loyal investor relations and most importantly the presence of multinationals in the vital sector.

Building and Construction

Although Kenya has experienced a robust growth in housing development during the last few years but still there is a lot of demand unmet in the urban areas. The constantly growing population and expanding demand for affordable houses acts as the motivating drivers and presents opportunities in the construction of residential, commercial and industrial buildings including low cost housing. Manufacturing and supply of raw materials used in construction is another area of interest that provides ample business to the investors.


With its great potential and contribution to country’s wealth, employment creation and poverty elevation, manufacturing is among the key productive sectors of Kenya. The sector aspires to strengthen production capacity of domestically manufactured goods, boost the share of products in regional market from 7 to 15 per cent and develop niche products for existing and new markets. The sector’s main focus is on agriculture and plays a vital role in enhancing agricultural output by providing forward and backward linkages with agriculture sector. It presents enormous opportunities for direct and joint-venture investments accessible in manufacturing sector comprising of agro-processing, manufacture of garments, assembly of automotive components and electronics, paper, pharmaceuticals, metal and engineering products for both domestic and exports market.

Information and Communications Technology

An array of business opportunities are offered by Kenya in ICT sector for both local and export markets. Being a regional hub and a financial capital of the East and Central Africa region, the estimated total size of the local ICT market is US$ 500 million and entrance of renowned companies like Spanco and Airtel in Kenya are anticipated to further boost the ICT  sector in the region. An investment  Promotion Act (2004) was also  enacted by Kenya Investment Authority to assist investors in obtaining licenses necessary for investment.


In Kenya, the renewable energy sector is most vigorous. The energy policy in the country aspires to save more of energy and supply adequate quantities at reasonable costs. Petroleum, electricity and wood are the main forms of energy on which the country is dependent. Alternatively, wind, solar and biogas are utilized as energy sources. Fulfilling nearly 87% of the country’s requirements petroleum is the key source of commercial energy. The policy also emphasizes the delivery of quality energy services in order to attract investments for the economic activities which use energy sources for production at competitive prices.

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