Country Snapshot
Population (2019, millions)¹ | 52.57 |
Population Projections (2030, millions)¹ | 65.45 |
Economically active population in agriculture (as % of Economically active population)¹², 2019 | 91.5 |
Capital | Nairobi |
Surface Area (km²)² | 580,370 |
Weather¹¹ | Hottest month, February, 13-28°C; coldest month, July, 11-23°C; driest month, August, 24 mm average rainfall; wettest month, April, 266 mm average rainfall |
Languages³ | Official: English and Kiswahili – Others: numerous indigenous languages |
Main Religions³ | Main: Protestant and Catholic – Others: Muslim, Traditionalists, others and none |
Time⁴ | Eastern Africa Time (EAT) +0300 UTC |
Driving Orientation⁵ | Left Side |
Internet Country Code⁶ | .ke |
Country Calling Code | +254 |
Plug, Socket and Voltage⁷ | Type G – 240V/50Hz |
Currency | Kenyan Shilling (KES) – 1/100 = Cent |
Exchange Rate (As of 28 January 2018, per USD)⁸ | 100.74 (buy rate) |
GDP at Market Prices (2018, current, billions of USD)⁹ | 87.9 |
GDP Growth (2018, annual %)⁹ | 6.32 |
Average GDP Growth (2014-2018, annual %)⁹ | 5.62 |
GDP per Capita, PPP (2018, current international $)⁹ | 3,461 |
Inflation, Consumer Prices (2018, annual %)⁹ | 4.68 |
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 6.49 |
Total Reserves in Months of Imports (2017)⁹ | 4.34 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Central Bank of Kenya.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.
Reasons to Invest in Kenya
- Kenya has a strong economy accounting for more than 40% of East African Community’s GDP; clear policy framework in the Big 4 Agenda and Vision 2030; and numerous investment opportunities across all sectors and project sizes.
- Kenya is a signatory to a large and growing number of tax treaties and investment promotion and protection Agreements such as the TradeCom II Programme (2016- 2020) under framework of the Cotonou Agreement aimed to strengthen capacities of ACP countries on Trade and the Africa Growth and Opportunities Act.
- Since independence, Kenya has maintained remarkable stability despite changes in its political system.
- Access to a large pool of highly educated and skilled workforce; highly productive and easily trainable.
- Kenya’s strategic location and its well-developed business infrastructure make it a natural choice for investors and many international firms have made it their regional hub.
- Access to the larger East African Community and regional markets with access to over 385 million consumers. Nairobi is also a major transport Hub in East Africa with Connections from Jomo Kenyatta International Airport to Major Destinations around the world. All these are coupled with a convenient Time zone of (GMT +3).
- Kenya affords a pleasant and quality standard of living with its diverse natural resources ranging from wildlife to sceneries.
- Kenya is signatory to a number of multilateral and bilateral trade agreements as part of its trade policy such as WTO, AfCFTA, AGOA, ACP-EU, and COMESA.
Source: Kenya Investment Authority – KenInvest.
Population
Population Projections (millions)
Population (2019) | 52.57 |
Population Projections (2030) | 66.45 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 27.5 |
Percentage of Population Residing in Urban Areas (2030) | 33.4 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes | 87.83 |
Youth Literacy Rate, Population 15-24 Years, Female | 88.08 |
Youth Literacy Rate, Population 15-24 Years, Male | 87.59 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)
Unemployment, Total | 9.31 |
Unemployment, Female | 9.22 |
Unemployment, Male | 9.39 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)
Labour Force Participation Rate, Total | 66.30 |
Labour Force Participation Rate, Female | 63.58 |
Labour Force Participation Rate, Male | 69.1 |
Labour Force, Total (number) | 20,518,673 |
Source:World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 61.44 | 64.01 | 69.18 | 78.75 | 87.9 |
GDP Growth (annual %) | 5.35 | 5.71 | 5.87 | 4.86 | 6.32 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
Indicator | 2018 | 2019 |
Agriculture | 39.45 | 40.34 |
Manufacturing | 12.31 | 11.94 |
Industry | 22.71 | 22.48 |
Services | 56.84 | 56.18 |
Construction | 6.48 | 6.59 |
Electricity, gas and water | 2.85 | 2.89 |
Mining and quarrying | 1.07 | 1.06 |
Education | 6.18 | 6.00 |
Finance, real estate and business services | 21.43 | 21.28 |
Public administration and Defense | 5.59 | 5.54 |
Health and Social Work | 2.15 | 2.16 |
Other services | 1.61 | 1.58 |
Transport, storage and communication | 12.22 | 12.17 |
Wholesale and retail trade, hotels and restaurants | 11.19 | 10.98 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 18,237,053 | 14,555,436 | 14,107,376 | 16,680,503 | 17,374,783 |
China | 2,780,189 | 2,988,849 | 3,325,065 | 3,776,808 | 3,661,733 |
India | 2,962,554 | 2,371,959 | 2,024,747 | 1,648,243 | 1,828,448 |
Saudi Arabia | 631,551 | 504,064 | 682,385 | 1,108,244 | 1,705,151 |
United Arab Emirates | 1,160,071 | 783,867 | 901,889 | 1,337,658 | 1,456,152 |
Japan | 973,144 | 798,663 | 811,829 | 789,909 | 984,823 |
Source: International Trade Center COMTRADE Statistics.
Export Partners (Exported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 6,023,982 | 5,396,276 | 5,695,081 | 5,745,668 | 6,050,407 |
Pakistan | 244,301 | 333,334 | 395,360 | 618,040 | 582,521 |
Uganda | 541,976 | 561,135 | 498,730 | 483,332 | 503,419 |
United States of America | 127,094 | 117,727 | 424,698 | 453,908 | 465,203 |
Netherlands | 412,506 | 320,926 | 392,336 | 399,220 | 447,264 |
United Kingdom | 374,835 | 347,583 | 368,178 | 370,061 | 394,336 |
Source: International Trade Center COMTRADE Statistics.
Kenya’s Top Import Products (USD ’000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 18,237,053 | 14,555,436 | 14,107,376 | 16,680,503 | 17,374,783 | |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 4,000,306 | 2,238,934 | 2,111,727 | 2,740,761 | 3,391,797 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 1,678,328 | 1,425,214 | 1,428,812 | 1,827,535 | 1,664,366 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 1,498,466 | 1,514,396 | 1,138,203 | 1,114,074 | 1,227,903 |
85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 1,553,756 | 1,239,386 | 1,629,903 | 1,121,436 | 1,206,182 |
72 | Iron and steel | 727,248 | 643,291 | 604,359 | 734,553 | 860,555 |
Source: COMSTAT database
Kenya’s Top Export Products (USD ’000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 6,023,982 | 5,396,276 | 5,695,081 | 5,745,668 | 6,050,407 | |
09 | Coffee, tea, mate and spices | 1,298,958 | 1,353,432 | 1,452,842 | 1,667,074 | 1,617,160 |
06 | Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage | 612,315 | 483,387 | 555,572 | 595,482 | 625,599 |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 609,415 | 563,028 | 424,914 | 353,658 | 386,777 |
07 | Edible vegetables and certain roots and tubers | 242,432 | 222,982 | 264,573 | 209,108 | 250,134 |
08 | Edible fruit and nuts; peel of citrus fruits or melons | 100,829 | 114,193 | 149,837 | 180,698 | 232,965 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 1,138.6 | 1,403.6 | 1,139.4 | 1,098.4 | 716.8 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 11.2 | 13.6 | 11.2 | 10.8 | 7.1 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021.
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 6,151.6 | 6,738.7 | 8,545.8 | 9,292.8 | 10,009.6 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outward Stock | 60.0 | 66.4 | 83.9 | 91.8 | 84.7 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
United States, UK, India, South Africa, China, Japan, Germany, UAE, France, and South Korea.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Communications, Business Services, Software & IT services, Food & Tobacco, Transportation, Automotive OEM, Industrial Machinery, Equipment & Tools, Consumer Electronics, and Renewable energy.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Airtel Kenya, Faulu Microfinance Bank, Ecobank Kenya, Cummins Cogeneration Kenya, Samsung Electronics East Africa (SEEA), Taaleritehdas, Orange Kenya, LG Electronics, and Standard Chartered Bank
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 56/190 |
2019 | 61/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 129/190 |
Procedures (number) | 7 |
Time (days) | 23 |
Cost (% of income per capita*) | 22.4 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 1,620
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 94/190 |
Payments (number per year) | 24 |
Time (hours per year) | 180 |
Total Tax Rate (% of profit) | 37.2 |
Profit Tax (% of profit) | 30.1 |
Labor Tax and Contributions (% of profit) | 1.9 |
Other Taxes (% of profit) | 5.2 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 117/190 |
Time to Export: Border Compliance (hours) | 16 |
Cost to Export: Border Compliance (USD) | 143 |
Time to Export: Documentary Compliance (hours) | 19 |
Cost to Export: Documentary Compliance (USD) | 191 |
Time to Import: Border Compliance (hours) | 194 |
Cost to Import: Border Compliance (USD) | 833 |
Time to Import: Documentary Compliance (hours) | 60 |
Cost to Import: Documentary Compliance (USD) | 115 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – Law N. 6 of the 31st of December 2004- The major regulations governing FDI are found in the Investment Promotion Act (2004). The Act aims to promote and facilitate investment by assisting investors, for instance, in obtaining the relevant licenses and incentives.
Kenya’s Foreign Investment Protection Act (FIPA) (CAP. 518) guarantees capital repatriation and the remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits including un-capitalized retained profits (proceeds of an investment after payment of the relevant taxes and the principal and interest associated with any loan). Kenya has no restrictions on converting or transferring funds associated with investment.
Key guarantees in terms of investment protection include:
- Protection against expropriation
- Free transfer of foreign capital and income after taxes as well as the return on capital as dividends of companies with foreign or mixed capital
- There are no general restrictions on the percentage of equity that foreign nationals may hold in a locally incorporated company.
- Investors can choose between different mechanisms to resolve their disputes.
Investment Incentives
- Investors in Export Processing Zones (EPZs) benefit from a range of fiscal incentives.
- A 10-years tax holiday followed by a 25% flat tax for the next 10 years;
- Exemption from all withholding taxes during the first 10 years;
- Exemption from import duties on machinery, raw materials, and inputs;
- No restrictions on management or technical arrangements;
- Exemption from stamp duty and from the VAT on raw materials, machinery and other inputs.
- Industrial building allowance – This is an annual allowance computed on the straight-line method at 10% per annum on cost from 1 January 2010, The rate for hotels is 10% and 25% for commercial buildings, irrespective of the transfer price. A 50% industrial building allowance can be claimed on a hostel or educational building, as well as for buildings used for training.
- Formworks allowance – The allowance in respect of expenditure on farm works is 100% of the expenditure incurred. Farm works are structures necessary for the proper operation of a farm and include fences, dips, drains, water and electricity works (other than machinery), windbreaks etc., as well as farm buildings.
- Wear-and-tear allowances on plant and machinery – Plant and machinery includes furniture and fittings, office equipment, vehicles, aircraft and ships.
- Investment deduction allowance – This is intended as an incentive to investment in the manufacturing sector and consists of a “once-and-for-all” claim based on the cost of buildings and machinery installed therein.
- Shipping investment deduction – A shipping investment deduction equal to 100% is claimable in the year of first use on capital expenditure incurred on the purchase or on purchase and refitting of a power-driven ship of more than 125 tons.
- Special Economic Zone (SEZ); With effect from 1 January 2018, the Income Tax Act provides that Special Economic Zone enterprises are subject to:
- 100% investment deduction on buildings, plant and machinery used in manufacturing or the 150% investment deduction where the investment is located outside the municipalities of Kisumu, Mombasa or Nairobi.
- 10% corporate tax for first 10 years;
- 15% corporate tax for subsequent years;
- Duty & VAT exemption;
- 100 percent of the investment allowance on cost of building and
- Exemption from stamp duty; and
- Exemption from withholding tax
- Exemption from Import duty and Import Declaration Fees
Source: Kenya Investment Authority (KenInvest).
Country Snapshot
Population (2019, millions)¹ | 52.57 |
Population Projections (2030, millions)¹ | 65.45 |
Economically active population in agriculture (as % of Economically active population)¹², 2019 | 91.5 |
Capital | Nairobi |
Surface Area (km²)² | 580,370 |
Weather¹¹ | Hottest month, February, 13-28°C; coldest month, July, 11-23°C; driest month, August, 24 mm average rainfall; wettest month, April, 266 mm average rainfall |
Languages³ | Official: English and Kiswahili – Others: numerous indigenous languages |
Main Religions³ | Main: Protestant and Catholic – Others: Muslim, Traditionalists, others and none |
Time⁴ | Eastern Africa Time (EAT) +0300 UTC |
Driving Orientation⁵ | Left Side |
Internet Country Code⁶ | .ke |
Country Calling Code | +254 |
Plug, Socket and Voltage⁷ | Type G – 240V/50Hz |
Currency | Kenyan Shilling (KES) – 1/100 = Cent |
Exchange Rate (As of 28 January 2018, per USD)⁸ | 100.74 (buy rate) |
GDP at Market Prices (2018, current, billions of USD)⁹ | 87.9 |
GDP Growth (2018, annual %)⁹ | 6.32 |
Average GDP Growth (2014-2018, annual %)⁹ | 5.62 |
GDP per Capita, PPP (2018, current international $)⁹ | 3,461 |
Inflation, Consumer Prices (2018, annual %)⁹ | 4.68 |
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 6.49 |
Total Reserves in Months of Imports (2017)⁹ | 4.34 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Central Bank of Kenya.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socio Economic Database.
Reasons to Invest in Kenya
- Kenya has a strong economy accounting for more than 40% of East African Community’s GDP; clear policy framework in the Big 4 Agenda and Vision 2030; and numerous investment opportunities across all sectors and project sizes.
- Kenya is a signatory to a large and growing number of tax treaties and investment promotion and protection Agreements such as the TradeCom II Programme (2016- 2020) under framework of the Cotonou Agreement aimed to strengthen capacities of ACP countries on Trade and the Africa Growth and Opportunities Act.
- Since independence, Kenya has maintained remarkable stability despite changes in its political system.
- Access to a large pool of highly educated and skilled workforce; highly productive and easily trainable.
- Kenya’s strategic location and its well-developed business infrastructure make it a natural choice for investors and many international firms have made it their regional hub.
- Access to the larger East African Community and regional markets with access to over 385 million consumers. Nairobi is also a major transport Hub in East Africa with Connections from Jomo Kenyatta International Airport to Major Destinations around the world. All these are coupled with a convenient Time zone of (GMT +3).
- Kenya affords a pleasant and quality standard of living with its diverse natural resources ranging from wildlife to sceneries.
- Kenya is signatory to a number of multilateral and bilateral trade agreements as part of its trade policy such as WTO, AfCFTA, AGOA, ACP-EU, and COMESA.
Source: Kenya Investment Authority – KenInvest.
Population
Population Projections (millions)
Population (2019) | 52.57 |
Population Projections (2030) | 66.45 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 27.5 |
Percentage of Population Residing in Urban Areas (2030) | 33.4 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes | 87.83 |
Youth Literacy Rate, Population 15-24 Years, Female | 88.08 |
Youth Literacy Rate, Population 15-24 Years, Male | 87.59 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force, Modeled ILO Estimate)
Unemployment, Total | 9.31 |
Unemployment, Female | 9.22 |
Unemployment, Male | 9.39 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+, Modeled ILO Estimate)
Labour Force Participation Rate, Total | 66.30 |
Labour Force Participation Rate, Female | 63.58 |
Labour Force Participation Rate, Male | 69.1 |
Labour Force, Total (number) | 20,518,673 |
Source:World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 61.44 | 64.01 | 69.18 | 78.75 | 87.9 |
GDP Growth (annual %) | 5.35 | 5.71 | 5.87 | 4.86 | 6.32 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
Indicator | 2018 | 2019 |
Agriculture | 39.45 | 40.34 |
Manufacturing | 12.31 | 11.94 |
Industry | 22.71 | 22.48 |
Services | 56.84 | 56.18 |
Construction | 6.48 | 6.59 |
Electricity, gas and water | 2.85 | 2.89 |
Mining and quarrying | 1.07 | 1.06 |
Education | 6.18 | 6.00 |
Finance, real estate and business services | 21.43 | 21.28 |
Public administration and Defense | 5.59 | 5.54 |
Health and Social Work | 2.15 | 2.16 |
Other services | 1.61 | 1.58 |
Transport, storage and communication | 12.22 | 12.17 |
Wholesale and retail trade, hotels and restaurants | 11.19 | 10.98 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 18,237,053 | 14,555,436 | 14,107,376 | 16,680,503 | 17,374,783 |
China | 2,780,189 | 2,988,849 | 3,325,065 | 3,776,808 | 3,661,733 |
India | 2,962,554 | 2,371,959 | 2,024,747 | 1,648,243 | 1,828,448 |
Saudi Arabia | 631,551 | 504,064 | 682,385 | 1,108,244 | 1,705,151 |
United Arab Emirates | 1,160,071 | 783,867 | 901,889 | 1,337,658 | 1,456,152 |
Japan | 973,144 | 798,663 | 811,829 | 789,909 | 984,823 |
Source: International Trade Center COMTRADE Statistics.
Export Partners (Exported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 6,023,982 | 5,396,276 | 5,695,081 | 5,745,668 | 6,050,407 |
Pakistan | 244,301 | 333,334 | 395,360 | 618,040 | 582,521 |
Uganda | 541,976 | 561,135 | 498,730 | 483,332 | 503,419 |
United States of America | 127,094 | 117,727 | 424,698 | 453,908 | 465,203 |
Netherlands | 412,506 | 320,926 | 392,336 | 399,220 | 447,264 |
United Kingdom | 374,835 | 347,583 | 368,178 | 370,061 | 394,336 |
Source: International Trade Center COMTRADE Statistics.
Kenya’s Top Import Products (USD ’000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 18,237,053 | 14,555,436 | 14,107,376 | 16,680,503 | 17,374,783 | |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 4,000,306 | 2,238,934 | 2,111,727 | 2,740,761 | 3,391,797 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 1,678,328 | 1,425,214 | 1,428,812 | 1,827,535 | 1,664,366 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 1,498,466 | 1,514,396 | 1,138,203 | 1,114,074 | 1,227,903 |
85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 1,553,756 | 1,239,386 | 1,629,903 | 1,121,436 | 1,206,182 |
72 | Iron and steel | 727,248 | 643,291 | 604,359 | 734,553 | 860,555 |
Source: COMSTAT database
Kenya’s Top Export Products (USD ’000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 6,023,982 | 5,396,276 | 5,695,081 | 5,745,668 | 6,050,407 | |
09 | Coffee, tea, mate and spices | 1,298,958 | 1,353,432 | 1,452,842 | 1,667,074 | 1,617,160 |
06 | Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage | 612,315 | 483,387 | 555,572 | 595,482 | 625,599 |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 609,415 | 563,028 | 424,914 | 353,658 | 386,777 |
07 | Edible vegetables and certain roots and tubers | 242,432 | 222,982 | 264,573 | 209,108 | 250,134 |
08 | Edible fruit and nuts; peel of citrus fruits or melons | 100,829 | 114,193 | 149,837 | 180,698 | 232,965 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 1,138.6 | 1,403.6 | 1,139.4 | 1,098.4 | 716.8 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 11.2 | 13.6 | 11.2 | 10.8 | 7.1 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021.
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 6,151.6 | 6,738.7 | 8,545.8 | 9,292.8 | 10,009.6 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outward Stock | 60.0 | 66.4 | 83.9 | 91.8 | 84.7 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
United States, UK, India, South Africa, China, Japan, Germany, UAE, France, and South Korea.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Financial Services, Communications, Business Services, Software & IT services, Food & Tobacco, Transportation, Automotive OEM, Industrial Machinery, Equipment & Tools, Consumer Electronics, and Renewable energy.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Airtel Kenya, Faulu Microfinance Bank, Ecobank Kenya, Cummins Cogeneration Kenya, Samsung Electronics East Africa (SEEA), Taaleritehdas, Orange Kenya, LG Electronics, and Standard Chartered Bank
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 56/190 |
2019 | 61/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 129/190 |
Procedures (number) | 7 |
Time (days) | 23 |
Cost (% of income per capita*) | 22.4 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 1,620
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 94/190 |
Payments (number per year) | 24 |
Time (hours per year) | 180 |
Total Tax Rate (% of profit) | 37.2 |
Profit Tax (% of profit) | 30.1 |
Labor Tax and Contributions (% of profit) | 1.9 |
Other Taxes (% of profit) | 5.2 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 117/190 |
Time to Export: Border Compliance (hours) | 16 |
Cost to Export: Border Compliance (USD) | 143 |
Time to Export: Documentary Compliance (hours) | 19 |
Cost to Export: Documentary Compliance (USD) | 191 |
Time to Import: Border Compliance (hours) | 194 |
Cost to Import: Border Compliance (USD) | 833 |
Time to Import: Documentary Compliance (hours) | 60 |
Cost to Import: Documentary Compliance (USD) | 115 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – Law N. 6 of the 31st of December 2004- The major regulations governing FDI are found in the Investment Promotion Act (2004). The Act aims to promote and facilitate investment by assisting investors, for instance, in obtaining the relevant licenses and incentives.
Kenya’s Foreign Investment Protection Act (FIPA) (CAP. 518) guarantees capital repatriation and the remittance of dividends and interest to foreign investors, who are free to convert and repatriate profits including un-capitalized retained profits (proceeds of an investment after payment of the relevant taxes and the principal and interest associated with any loan). Kenya has no restrictions on converting or transferring funds associated with investment.
Key guarantees in terms of investment protection include:
- Protection against expropriation
- Free transfer of foreign capital and income after taxes as well as the return on capital as dividends of companies with foreign or mixed capital
- There are no general restrictions on the percentage of equity that foreign nationals may hold in a locally incorporated company.
- Investors can choose between different mechanisms to resolve their disputes.
Investment Incentives
- Investors in Export Processing Zones (EPZs) benefit from a range of fiscal incentives.
- A 10-years tax holiday followed by a 25% flat tax for the next 10 years;
- Exemption from all withholding taxes during the first 10 years;
- Exemption from import duties on machinery, raw materials, and inputs;
- No restrictions on management or technical arrangements;
- Exemption from stamp duty and from the VAT on raw materials, machinery and other inputs.
- Industrial building allowance – This is an annual allowance computed on the straight-line method at 10% per annum on cost from 1 January 2010, The rate for hotels is 10% and 25% for commercial buildings, irrespective of the transfer price. A 50% industrial building allowance can be claimed on a hostel or educational building, as well as for buildings used for training.
- Formworks allowance – The allowance in respect of expenditure on farm works is 100% of the expenditure incurred. Farm works are structures necessary for the proper operation of a farm and include fences, dips, drains, water and electricity works (other than machinery), windbreaks etc., as well as farm buildings.
- Wear-and-tear allowances on plant and machinery – Plant and machinery includes furniture and fittings, office equipment, vehicles, aircraft and ships.
- Investment deduction allowance – This is intended as an incentive to investment in the manufacturing sector and consists of a “once-and-for-all” claim based on the cost of buildings and machinery installed therein.
- Shipping investment deduction – A shipping investment deduction equal to 100% is claimable in the year of first use on capital expenditure incurred on the purchase or on purchase and refitting of a power-driven ship of more than 125 tons.
- Special Economic Zone (SEZ); With effect from 1 January 2018, the Income Tax Act provides that Special Economic Zone enterprises are subject to:
- 100% investment deduction on buildings, plant and machinery used in manufacturing or the 150% investment deduction where the investment is located outside the municipalities of Kisumu, Mombasa or Nairobi.
- 10% corporate tax for first 10 years;
- 15% corporate tax for subsequent years;
- Duty & VAT exemption;
- 100 percent of the investment allowance on cost of building and
- Exemption from stamp duty; and
- Exemption from withholding tax
- Exemption from Import duty and Import Declaration Fees
Source: Kenya Investment Authority (KenInvest).