Introduction

Kenya is strategically located within easy reach of export markets in the African region, the Middle East, Europe and Asia. In addition, it has a common border with Ethiopia, Sudan, Uganda and Tanzania. The country lies across the Equator, on the eastern seaboard of Africa and has a landmass of 582,646 sq. km. Endowed with a rich heritage of flora and fauna and other natural resources, Kenya enjoys a wide range of economic activities. The Great Rift Valley, which bisects the country from north to south, and dotted with lakes and extinct volcanoes, is one of Kenya's fascinating physical features.

Kenya is a tourist paradise with plenty to offer to those wanting a variety of experiences. In Kenya one will discover a diverse, modern, yet ancient land. A safari in Kenya encompasses more than just game viewing. Kenya is a land not only of magnificent wildlife, but also of amazing landscapes, beautiful lakes, a tropical coastline, strong ethnic traditions, hospitality and artistry of man's cultural development. Kenya's wildlife is one of its prime attractions; the Masai Mara, Tsavo, Amboseli, Lake Nakuru, are among Africa's most well known national parks. Nairobi, the capital is cosmopolitan, lively, interesting, pleasantly landscaped and a good place to conduct business.

Experience Kenya for your own satisfaction and see why it is being referred to as the "Tourism Hub of Africa." I invite you to visit www.magicalkenya.com for more about our fascinating country.

Investment Climate


Kenya is a stable democratic state with the General Elections held every five years since independence on 12th December 1963. The last was held on 27th December 2002, which saw the peaceful transition of power from former President Daniel T. Arap Moi to H.E. President Mwai Kibaki.

The Government of Kenya welcomes, promotes and protects private enterprises and offers many attractive incentives to investors. During the last eight years the Government has continued to introduce liberal market-oriented policies and reforms to enhance investment opportunities. In order to sustain economic growth, exchange controls have been removed, processes de-controlled and import licensing abolished. Major privatisation and parastatal reform programmes are also in place.

Kenya has many advantages as a destination for foreign investment such as: political stability; liberal investment policies; an abundance of resources; a well-developed infrastructure; competitive incentives; investment guarantees; cheap manpower resources; a strategic location for market access; and pleasant living conditions to name a few.

In the Telecommunications and Information Technology sectors joint ventures are encouraged especially cellular phone and Internet services. In the Transportation sector there are several projects, which may interest the foreign investor such as improvement of standards of existing arteries, construction of bypass roads, and the building of an underground transit system in Nairobi. In the Ports sector opportunities exist in the improvement of existing berths, and the conversion of port berths into container berths and the development of a container terminal management system. In Civil Aviation opportunities exist to modernize air navigation, Satellite Air Traffic Management (CNS/ATM) system and there is a need for both ground and air borne CNS/ATM systems.

With regard to the Energy and Power sectors, the Government of Kenya expects that upon deregulation of the oil industry, the Kenyan market will open to new marketing companies, and this gives an opportunity for investment. The current demand for Liquid Petroleum Gas (LPG) is approximately 28,000 metric tones and this is expected to double in the near future. This will also create opportunities to upgrade supply and distribution methods. There are also opportunities in oil exploration and power generation.

Potential opportunities in the Pharmaceutical sector include: a multipurpose chemical plant for production of paracetamol, aspirin, etc, chemical plant for bulk tuberculosis, anti-leprosy, antibiotic and rifampicin drugs; the manufacture of Quinine by extraction from Cinehona bark and subsequent purification; and extraction of Hecogenin from sisal waste and synthesis of Betamethasone from Hecogenin. In the Agribusiness sector opportunities exist in the establishment of a fertiliser plant to produce DAP, CAN and NPK using imported intermediate inputs, and a bio-fertilizer plant to utilize bagasse and waste from the timber industry. There is also an opportunity in the production of nitrogen fixing micro organisms, which can be used in leguminous plants to increase crop yields.

Besides the aforementioned, there are numerous other areas of investment opportunity. These sectors include: pesticide manufacturing, commercial dairy farming, food industry, textiles, tourism and financial services.

Market Access - Exports from Kenya enjoy preferential access to world markets under a number of special access and duty reduction programmes related to the following: East African Community (EAC); Common Market for Eastern and Southern Africa (COMESA); ACP/Cotonou Agreement; Africa Growth and Opportunity Act (AGOA); and Generalized System of Preferences (GSP). Details on any of these can be accessed via a reliable search engine such as www.google.com, on the Internet.

General information on Kenya including the investment opportunities can be obtained from the following websites: www.ipckenya.org and www.kenyamission-delhi.com.

Kenya – India Relations 

The people of the Indian subcontinent and the people of East Africa have enjoyed trade relations for over 3000 years. These were friendly relations with no notion of colonization or other types of aggressive activity. Today, Kenya and India enjoy warm and cordial bilateral relations and share commitment to the ideals of democracy, respect for human life, rule of law and are dedicated to the promotion of world peace and stability.

India is an important economic partner of Kenya, and falls within the category of our top ten major trading partners. The 2000 Economic Survey Publication by the Government of Kenya ranked India as the sixth source of imports, whose value stood at Kenya shillings 10,139 million. Indian Exports to Kenya stood at Kenya Shillings 1,361 million, and was ranked 18th overall as a destination for exports. India ranks Kenya as one of its major trading partners from the African continent particularly the private sector business.

India exports manufactured goods such as home appliances, industrial and farm machinery, pharmaceuticals, synthetic products, motor vehicles, dyed fabric, rice and aluminium hydroxide to Kenya. Kenya exports soda ash, fluorspar, diatomite, inorganic chemicals, precious and semi­precious stones, cashew nuts, pulses, wattle bark extract, tea, dyeing, tanning and colouring materials, hides and skins, sisal and African handicrafts to India. Although Kenya's trade with India has shown a marked improvement, the balance remains heavily in India's favour. India could help to reduce the imbalance through transfer of technology and diversification of trade.

On the bilateral front, a number of visits have taken place between India and Kenya over the past couple of years. These include both business delegations and official visits. It is my hope that this publication will prove to be another tool to increase people-to-people contact between India and Kenya.