Kenya Secures Third Spot in Global Foreign Direct Investment Opportunities

Kenya's cross-border investments are yielding positive results as indicated by the latest report from the Foreign Direct Investment (FDI) annual Standout Watchlist.

In its December 2023 publication, the report unveils that Kenya is projected to exhibit the highest investment momentum in 2024, coming in third place worldwide with a score of 87.44. Surpassing all European nations, Kenya has emerged as the foremost African nation on the roster. Additionally, Namibia has secured the fifth position with Morocco obtaining the eighth spot. Asian countries predominantly dominated the top ten list, with Cambodia taking the lead with a score of 96.11 closely followed by the Philippines with 94.43.

The rankings were compiled by analyzing data from the International Monetary Fund (IMF) and FDI markets. Various factors were considered including a country's GDP, projected inflation rate for 2024, and growth in FDI projects over the past two years. FDI refers to foreign entities making direct investments in a country's businesses. In 2024, there was a notable increase in the percentage, reaching 5.3, surpassing the previous rate of 5 per cent in 2023. Despite this, inflation remained high at 6.6 per cent. However, there was a slight improvement in the cost of living, as the rate dropped from 6.8 per cent in November, based on data from the Central Bank of Kenya.

Kenya is commended for registering a significant influx of direct investment since 2021. The report emphasizes a remarkable milestone in foreign direct investment (FDI) through the creation of a Ksh78 billion facility by Moderna, a pharmaceutical company from the United States. This groundbreaking initiative was established in partnership with President William Ruto's administration, marking it as the inaugural undertaking of its kind on the African continent.

AMEA Power, a company headquartered in Dubai, has recently expressed its desire to generate green hydrogen in the city of Mombasa, thereby displaying a significant interest in Kenya's energy industry. This particular investment project is estimated to require an impressive sum of Ksh359 billion ($2.29bn), further highlighting the attractiveness of Kenya's energy market.