Kenya is positioning itself as a top destination for global investors, with the government confirming that more international companies will soon be cleared to set up operations in the country.
Trade Cabinet Secretary Lee Kinyanjui said interest from multinationals has surged in recent months, particularly in the energy sector, data centers, and business process outsourcing. He noted that the growing appetite reflects renewed confidence in Kenya’s economy and the availability of a young, skilled workforce.
“The number of international companies seeking to establish a base in Kenya has increased. Our people are young, educated, and hardworking. The only challenge we must address is the cost of power. While our electricity is not the cheapest, it is the greenest,” Kinyanjui said during an interview on Citizen TV.
The CS revealed that discussions are already underway with global firms eyeing Kenya as a hub for data centers, citing improved infrastructure and reliable internet connectivity as strong selling points.
Latest government data shows that Kenya’s tech sector has overtaken banking, manufacturing, and retail as the leading destination for foreign direct investment (FDI). The Kenya National Bureau of Statistics (KNBS), in its 2024 Foreign Investment Survey, reported that capital inflows into technology rose 71% to Ksh64.7 billion ($500.9 million). The sector accounted for more than a quarter of the Ksh242.6 billion ($1.8 billion) total inflows, compared to less than 10% in 2020.
On trade, Kinyanjui addressed the uncertainty surrounding the expired African Growth and Opportunity Act (AGOA), which previously provided duty-free access to the U.S. market. He expressed optimism that ongoing lobbying efforts would lead to a successor pact, but admitted that Kenya had not fully maximized opportunities under AGOA.
He pointed to the second-hand clothes (mitumba) trade as one of the barriers, noting that other regional partners such as Rwanda and Uganda banned such imports to boost their textile sectors. However, he clarified that Kenya was not considering a similar ban.
At the same time, Kinyanjui said Kenya is actively pursuing alternative agreements with the Middle East, the European Union, and individual trade partners to cushion against any imbalances created by AGOA’s expiry.
“As government, we are committed to strengthening bilateral and multilateral agreements so that our economy remains competitive and our people benefit from global opportunities,” he stated.
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