Business in Kenya

Kenya is the economic, financial, and transport hub of East Africa. Its strategic location, coupled with a well-developed business infrastructure makes it a natural choice for investors.

Location

Kenya is located on the eastern part of the African Continent bordering Uganda, Sudan, Ethiopia, Somalia and Tanzania. The country’s port of Mombasa which located by the Indian Ocean serves most of the Eastern and Central African landlocked countries including Burundi, Ethiopia, Parts of Northern Tanzania, Rwanda, Sudan, Southern Sudan and Uganda and a gateway to Europe, the Middle East and South Asia.

Political System

Kenya is a multi-party democratic state with general elections held every 5 years. The constitution of Kenya provides structure for a Government based on the essential values of human rights, equality, freedom, democracy, social justice and the rule of the law. The government has a strong focus on ease of doing business to support investors by investing in regulatory reforms, improved infrastructure and business support services.

Population

Kenya occupies an area of 582,646 square kilometers and has a population of 47.62 million with almost three-quarters of the population under the age of 35. The population consists of more than 40 different ethnic groups with different languages and cultures. The country boasts a multinational population of Africans, Europeans, Asians, Arabs and Americans among others. The official languages are English and Kiswahili. The labour force is available at all levels of expertise.

Economy

According to Economic Survey 2018, Kenya’s Gross Domestic Product (GDP) expanded by 5% in 2017 – US $ 78.29 Billion with a forecasted 6% growth rate annually. Agriculture remains the backbone of the Kenyan economy, contributing one-third of GDP, followed closely by the Manufacturing sector then the Service sector. Key macroeconomic indicators in 2018 are largely favourable; Inflation averages 4.49 per cent, NSE 20 Share Index averaging at 3,780 points, and the value of total exports rose to Ksh. 161.7 billion. Macroeconomic stability continues, with most fundamentals projected to remain healthy. The business-enabling environment has improved as well; Kenya moved up 12 places to a ranking of 80 in the World Bank’s 2018 Doing Business report.

Business Infrastructure

The Government has been successful in courting external investment for infrastructure development. The following are some of the major leaps that have been made;