Challenges Facing Investors in Kenya

By / Published September 18, 2015 | 3:25 pm

Kenya has great strengths and advantages as an investment location, something that has always attracted investors both locally and internationally especially in the real estate sector. This has seen the setting up of grand projects such as Tatu City, one of the dreams that will soon come to reality and make Kenya to be a host to the largest, technically enhanced city in Africa.

However, the investment sector in the country faces certain challenges that hinder investments as investors tend to keep away or give up along the way.

Corruption is rampant at almost all levels of government as well as the private sector in Kenya. In most cases, investors have to give bribes almost at every level in order to have some of their plans processed.

Ideological differences among shareholders in an investment is also a major concern. Many investors are from foreign countries and sometimes there ideologies usually clash with those of local shareholders.

A compromised judicial system poses a major threat to the country’s ability to attract top investors. Although there is independence in terms of how government institutions work, judiciary in Kenya is still not as free as it might seem and most of the time, the system is compromised and hence overturning the power of justice.

Security is also another major concern. Peace and stability encourages investors but in the recent years, investors in Kenya have been faced with the security issue especially with attacks from the Somali Alshabaab group.

Rendeavour’s Stephen Jennings was in town for a talk and in case you missed it you can watch it here.