Africa Singapore Business Forum, 28 - 29 August Country Panel Presentation - Kenya www.enterprisesg.gov.sg/asbf

1. Investing in Kenya 2018…Why Now?
KENYA -SINGAPORE
KENYA INVESTMENT AUTHORITY
Mr Neal Chandaria
Honorary Consul, Kenya

2. Invest in kenya |
Table of Contents
 Introduction
 About Kenya Investment Authority (KenInvest)
 Kenya at a Glance
 Why Kenya NOW?
 What Kenya Offers
 Kenya Investment Authority Support to Investors
 Other Business Support Institutions
 Conclusion & Parting Shot
 Our Contacts

3. Invest in kenya |
A Republic of Kenya State Agency under the Ministry of Industry, Trade and
Cooperatives established under the Investment Promotion Act No. 6 of 2004, with
the mandate of promoting and facilitating investments in Kenya
Key functions
Kenya Investment Authority (KenInvest)

4. Invest in kenya |
The Republic of Kenya:
Located in East Africa with massive resources. Lies on the Equator bordered by
Somalia, Ethiopia, Sudan, Uganda, Tanzania and the Indian Ocean.
Kenya is the top most preferred investment destination in East Africa, with the
majority of venture hunters attracted to good infrastructure & EODB - The Ernst &
Young (EY) Africa attractiveness index - 2017

5. Invest in kenya |
2015 2016 2017 2018 2019 2020 2021
GDP Growth 5.7 5.8 4.8 5.5 5.9 6.1 6.2
Inflation 6.6 6.3 8.0 6.7 5.1 5.0 4.9
Private Consumption 2.5 7.2 5.9 5.8 5.9 6.0 6.2
Government Consumption 13.0 7.0 5.7 5.5 5.8 6.4 5.9
Private Investments 6.1 -11.5 -1.2 2.5 3.8 4.0 5.3
Government Investments 2.0 -9.1 4.4 6.7 6.1 7.3 6.2
Exports Goods & Services 6.2 0.6 2.9 3.2 5.3 5.0 6.2
Imports Goods and Services 1.2 -4.7 2.4 3.9 4.9 4.9 5.0
Current Account Balance -6.8 -5.1 -5.1 -5.4 -5.1 -5.8 -5.5
Fiscal Deficit -6.0 -5.4 -6.4 -6.4 -5.5 -5.3 -5.1
Public Expenditure 26.1 25.2 26.4 25.8 25.4 24.1 24.6
Interest Rate 10.8 8.5 8.6 8.8 8.8 8.8 8.8
Ksh per Dollar 98.2 101.5 103.4 103.4 103.5 102.9 102.4
Source: KIPPRA Treasury Macroeconomic Model (KTMM
Kenya’s Economic growth prospects (2018-2021) Specific & directed efforts are
required to boost total investment to reach the aspired levels of 30% of
GDP

6. Invest in kenya |
Why Kenya Now: It is one of Sub-Saharan Africa’s most exciting locations & home
to some of the world’s most successful brands – Providing Excellent Eco-system.
Kenya boasts of an open & diverse economy with encouraging prospects & thousands of
international investors all over the world have chosen to set up. Kenya is Business Hub due to
relatively developed Infrastructure, Roads, SGR, Air Connectivity, Ports, Medical Institutions
 Stable macroeconomic environment - supported by a stable inflation rates
 Preferential market access – EAC, COMESA-SADC, AGOA, EU, CFTA - This is why Kenya
is a distribution hub and commercial powerhouse in the EAC
 Fully liberalized economy – No Xchange controls, import & export licensing, as well as
restrictions on remittances of profits and dividends, all of which no longer exist.
 Regulatory Reforms – To make Kenya Competitive
 Strategic location – Strategic Location for Entry into East & Central Africa
 Highly developed social and physical infrastructure
 Tax treaties and investment protection Agreements – 12 BITs
 Pool of Highly Educated, Trainable & Skilled workforce
 Well established & Vocal private sector – KEPSA, KNCC&I, KAM

7. Invest in kenya |
What has GoK done to improve Kenya’s business environment thus
making the country a destination of choice for investors..
The Key reforms and infrastructural frameworks
have improved Kenya’s ranking in various indepe
ndent global reports;
o Presidential roundtables address emergent
issues in the business arena
o A cabinet committee on ease of doing business
o Business Environment Delivery Unit
o One Stop Centre for investors - KenInvest
o e-citizen: an official online payments platform
for government services.
o e-regulations: an online portal providing
investors with information and transparency
on investment related procedures in Kenya
o Kenya Investment Policy: attraction & retention
of private investment.
2013 2014 2015 2016 2017
EODB 129 136 108 92 80
GCI -140 96 90 99 96 91
GII -141 99 85 92 80
IIAG -52 21 17 14 12
0
20
40
60
80
100
120
140
160
RANK
EODB GCI -140 GII -141 IIAG -52

8. Invest in kenya
Agricultture
Mining
Manufacturing
Construction
Wholesale andRetail
ICT
Real Estate
Education
Health
Transport &Infrustructure
Hospitality
Finance
SME
%contributiontoGDP
What does Kenya Offer? - Key sectors of the economy feed into the GDP, with
the SME sector making a significant contribution (28.5%) to the national economy

9. Invest in kenya
Kenya – Singapore Trade Statistics
Top Exports: Ores and concentrates of base metals, Petroleum oils, Vegetable textile fibres, Leather, Oil
seeds, Crude vegetable materials and Tea
Top imports: Fixed vegatable fats, crude, refined or fractionate, Synthetic fibres suitable for spinning,
Polymers of ethylene, in primary forms, Polyacetals, other polyethers and epoxide resins, in primary
forms; Polycarbonates, alkyd resins and other polyesters, in primary forms
YEAR EXPORTSINKSH IMPORTSINKSH BALANCEOFTRADE
2013 1,678,896,250 19,436,565,152 -17,757,668,902
2014 1,168,739,650 14,623,810,211 -13,455,070,561
2015 1,404,456,012 9,612,310,563 -8,207,854,551
2016 356,758,455 6,794,593,582 -6,437,835,127
2017 375,391,467 5,829,219,751 -5,453,828,283
AVERAGEVALUES 1,136,208,883 18,325,880,645 -17,189,671,762

10. Invest in kenya
The Government has set specific priority agenda and measures to
focus on in the next 5 years. Big Four agenda mid-income economy
“The Big Four will create jobs which will enable our people to meet their basic needs and
transform the lives of our people from that of hardship and want, to greater comfort and
well-being.”

11. Invest in kenya |
Food and Nutrition security
Agriculture contributes about 51% to GDP: 26% directly and another 25% indirectly.
Under the Big 4 Agenda the New and innovative initiatives that will drive 100% food & nutrition security
over the next 5 years
Focus area: 1. Enhance large scale production
 Place additional 700,000 Acres through PPP (including idle arable land) under maize, potato, rice,
cotton, aquaculture & feeds production.
 Irrigation in food production is an opportunity
 Use locally blended fertilizer on a 50/50 basis & implement liming e.g maize.
Focus area: 2. Drive small holder productivity
 Contract farmers for Strategic Food Reserve & other commercial off-takers
 Secure investments through PPP in post-harvest handling (storage, cold storage for fish, aggregation)
and market distribution infrastructure to reduce losses (by Dec 2018)
Focus Area: 3. Reduce cost of food
 Contract farmers for Strategic Food Reserve & other commercial off-takers
 Secure investments through PPP in post-harvest handling (storage, cold storage for fish, aggregation) &
market distribution infrastructure to reduce losses (by Dec 2018)

12. Invest in kenya |
Affordable housing
Objective:
Facilitate mass housing production of at least 1,000,000 affordable homes in 5 years across the
country by working in partnership with financial institutions, private developers, manufacturers of
building materials and cooperatives to deliver homes faster & reduce the cost of construction by at
least 50%.
To increase Real estate & construction sector GDP contribution from 7% to 14% by 2022
Situation: Kenya has a deficit of 250,000 housing units annually. The low cost housing agenda seeks
to plug in on the acute shortage of habitable housing units nationally.
 Development of affordable housing to cater for the needs of low income Kenyans
 Setting up factories for Industrial Building Systems (IBS) for timely delivery of construction
 Engage in joint ventures with county governments agencies towards delivery of affordable
housing
Incentive: 15% corporate tax for developers of 100 low cost residential units and above
While targeting to build the 500,000 housing units, 350,000 people will get jobs

13. Invest in kenya |
Manufacturing Sector
Objective: To increase manufacturing from current 10% to 15% of GDP by 2022
The growth of the sector is expected to play a vital role in supporting the country’s social economic development
particularly with regard to employment creation. A vibrant manufacturing sector is key to this policy aspiration
due to its high labour intensity & linkages with other sectors of the economy such as agriculture & service
Formal employment in the sector rose marginally by 0.8% to 303,300 persons in 2017 accounting for 11.4% of
total formal employment.
 Agro-processing (tea, coffee, fruits, cereals, milk, fish and meat);
 Animal feeds including fish feeds;
 Leather processing and manufacturing;
 Construction materials for low income housing;
 Pharmaceutical manufacturing; Auto Industry;
 Assembly of Electronic/ ICT;
 Development of industrial zones and parks; and
 Other areas that Chinese investors would be keen to invest.
Other Sub-sectors include; Construction materials, Iron & Steel, ICT products, Mining, oil & gas

14. Invest in kenya
Affordable Healthcare for All: 100% Universal Health Coverage
Critical Drivers Current Status: Current Coverage 16.5M target 35M = Population covered 51M by 2022

15. Invest in kenya |
Other Quick offers available for Chinese Companies
 Setting up of H/Qs to serve the East & Central Africa/ Rest of Africa – Nairobi is the Regional
Business Hub/Transport/Logistics
 Establish Trading Companies to serve Kenya/Region/ Kenya Products are acceptable in the Region
– Look for Partners focusing on Import & Export
 Infrastructure & Construction Projects – Geothermal Power Plants – Green Fields and Expansion
of Existing, Ports – Mombasa, Lamu, Kilifi, Inland Container Terminals/Dry Ports
 Opportunities in Transport Corridor Devt–Northern Corridor Opportunities, LAPPSET, Pipelines
 Manufacturing – Trade & Move to Local Production – Cut down on costs. Focus on Motor Vehicle
Assembly, Commercial Vehicle Assembly, Food Processing & Packaging, Textiles & Apparels
 Setting up of International/ Popular Brands in Kenya – to target fast growing middle class, Foreign
Residents based here in Kenya
 Consulting Services – Logistics, Legal & Accounting, Market Research etc
 Development & Investing in Investment Attraction Facilities - SEZ’s Industrial Parks, Godowns
 Provision of Financial Services – To serve local & International companies in Kenya & the region

16. Invest in kenya |
Kenya's foreign investment inflows in 2017 soar 71% defying Africa slump
Some Key Investments into the country due to improved business climate are here
below. Excellent business ecosystem…Some of the MNCs present in Kenya
Kenya's strong performance was due mainly to “buoyant domestic demand & inflows
into ICT industries,” the UNCTAD

17. Invest in kenya
NO EXCHANGE CONTROLS
guarantees repatriation of
capital, profits and interests.
In Kenya the safety of your investments is guaranteed…
Signatory of several Bilateral
Investment Treaties;
Investment Promotion & Pro
tection Agreements (IPPAs)

18. Invest in kenya
 Capital goods and raw materials are zero-rated;
 Plant, Machinery & equipment are duty
exempt;
 Some of the plant, machinery and equipment
are exempt from VAT;
 Market access in COMESA & EAC markets with
no taxes;
Investment Allowance:
 100% Nairobi, Mombasa and Kisumu cities; and
 150% - Those in other parts of the country .
Export Processing Zones (EPZ) Scheme:
 10 year tax holiday;
 25% corporate tax for another 10 years;
 Duty & VAT exemption;
 Single license;
 Exemption from stamp duty; and
 Exemption for withholding tax.
Special Economic Zones (EPZ)
Scheme:
 10 year tax holiday;
 15% corporate tax for another 10 years;
 Duty & VAT exemption;
 Single license;
 Exemption from stamp duty; and
 Exemption for withholding tax.
Incentives for listing in the
Capital market:
 Issuance of at least 40% of share
capital- 20% tax for 5 years
 Issuance of at least 30% of share capital
of share- 25% tax rate for 5 years
 Issuance of at least 20% of share
capital- 27% tax rate for 3 years.
In this regard a number of incentives have therefore been put in place to
facilitate entry and expansion of investment..

19. Invest in kenya |
Investor Support & Facilitation: Step By Step Guide To
Investing & Doing Business in Kenya – ONE-STOP-CENTRE

20. Invest in kenya |
20
EPZ or SEZ
Set Up
Obtain a Work Permit
Obtain a Power
Connection
Obtaining import/ export
permits
Obtaining a
Construction Permit
Obtain Environment
Permit
Registration of Land
Social Security
Registration
Company Registration Tax Registration
Functions currently facilitated by the GoK One Stop Centre (OSC)

21. Invest in kenya
Government of Kenya OSC – Managed by KenInvest

22. Invest in kenya
Kenya remains the destination of choice for investment in Africa.
“Kenya has emerged as one of Africa’s frontier
economies”
IMF MD-
Ms. C. Lagarde
“If you are going to do business in Africa, Kenya
is almost a requirement.”
Former CCA President-
Mr. Stephen Hayes
“I have been everywhere and Kenya is my favourite
place.”
Virgin Atlantic CEO –
Mr. Richard Branson

23. Invest in kenya
Living & Working in Kenya – The Good Life
Kenya offers many advantages that make it a good choice for settlement
and investment. There is the spectacular and diverse nature with
landscapes ranging from wildlife, beautiful beaches, mountains to cultural
& entertainment amongst others

24. Invest in kenya |
Institution Mandate Contact
Kenya Investment
Authority
Investment Promotion and
Facilitation
info@investmentkenya.com
Export Processing
Zones Authority
Promote and facilitate export
oriented investments
info@epzakenya.com
LAPSSET Coordinate and manage the
implementation of transport corridor
info@lapsset.go.ke
KOTDA Construct and Setup KOTDA konza@konzacity.go.ke
Kenya Revenue
Authority
Promote efficient tax administration callcenter@kra.go.ke
eCitizen Providing public services to citizens
electronically
www.accounts.ecitizen.go.ke
Export Promotion
Council
Developing and promoting Kenya's
exports
chiefexe@epc.or.ke
Special Economic
Zones Authority
Development and management of
enabling environment for global and
local investment.
ps@industrialization.go.ke
Other Investor Support Institutions…….

25. Invest in kenya |
Welcome to Kenya – Business Hub of Africa
UAP Old Mutual Tower, Upperhill – Nairobi, Kenya
+254 730 104 200
www.invest.go.ke
Be part of the success!