Among various development objectives under the strategy Kenya Vision 2030—country’s long-term new development blueprint—the nation aims to attain the ranks of middle-income country by the end of 2030. And to achieve this objective and strengthen its economy by the end of next decade, this East African nation has removed red tapes those were hampering in the establishment of business in this East African nation.

The simplified business environment is one of the keys to attract the investors as they can easily register company in the country, manufacture goods and have easy access to local and foreign markets.

Wide Market Access:

The strategic location of Kenya makes this East African nation a gateway to East African Community (EAC)—Burundi, Rwanda, South Sudan, Tanzania, Uganda and Kenya itself—where reside more than 135 million people. Moreover, investment in this country also opens up avenue for Common Market for Eastern and Southern Africa (COMESA). It is a market of over 450 million people. What could be more interesting than reaching a total of 585 million people from a single destination for investors?

Advantage of Trade Preferential Arrangements (TPA):

Kenya enjoys various types of TPA. As per African Growth and Opportunities Act (AGOA), the US market allows more than 6,000 Kenya produced goods in the country as quota free and duty-free. Similarly, The new Africa Caribbean and Pacific-European Union (ACP-EU) Economic Partnership Agreement (EPA) gives duty free access to Kenyan goods in the markets of European Union.

Foreign Direct Investment (FDI):

Kenya initiated over 80 projects in different sectors in 2015, thanks to surging FDI which contributed in the development of infrastructures like roads, railways, geothermal energy, etc. of the country. Despite the fact, the country has been struggling to bring FDI at present. This is due to the UK’s surprise vote to leave the EU as the UK is one of the leading investors in Kenya. But, the situation is identified as temporary and is expected to recover over the course of time.

The UK, the US, China, Netherlands, Japan, Belgium, India, Mauritius, Israel and South Africa are major investors in Kenya.

Lobbying Group:

The lobbying group in Kenya is quite strong and they voice strongly in favor of foreign investors. Key players those voice private sectors’ concerns are: Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE) and the Kenya Association of Manufacturers (KAM).

Besides, the operation of Standard Gauge Railway (SGR) from the port of Mombasa (PoM) to Nairobi, country’s capital, is presenting more advantages for investors in Kenya. With the operation of SGR, the transportation cost for a container is expected to decline by over 45% in comparison to road cargo. Moreover, the extension of SGR to Uganda, Rwanda and South Sudan from PoM is expected to unfold more business opportunities for the investors in Kenya as this will offer easy market access for them at low transportation cost.

For more information on “Kenyan Logistics Market, Forecast to 2020” please visit https://store.frost.com/kenyan-logistics-market-forecast-to-2020.html


Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at subarna.poudel@frost.com


Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at sapan.agarwal@frost.com | +603 6204 5830