by Ronald Njoroge
NAIROBI (Xinhua) -- Kenya’s Foreign
Direct Investment (FDI) is projected to hit 2.5 billion U.S.
dollars in 2016 up from 1.5 billion dollars in 2015, officials
Kenya Investment Authority (KenInvest) Managing
Director Moses Ikiara told Xinhua that Kenya’s attractive
investment climate as well as regional hub status have continued
to be a magnet for investors.
"In line with the trend of the past five years of annual
double digit growth, we expect FDI for 2016 to rise to 2.5
billion dollars," Ikiara told Xinhua on Tuesday evening on the
sidelines of a forum on the Mombasa (Dongo Kundu) Special
Economic Zone (SEZ).
Ikiara said that the manufacturing, construction, energy and
Information Communication Technology (ICT) were the most
attractive sectors for FDI.
Data from KenInvest indicate that the United States, India
and Britain are the top FDI sources for Kenya, while Ikiara said
China is now emerging as a key source of investment inflows into
"We hope that more Chinese firms will relocate to Kenya as
labor costs rise in their home country," he added.
The East African nation hopes to attract FDI with its SEZs
which are primarily aimed at exports.
The design for the SEZ which also includes a free port has
already been completed and the zone is expected to be ready to
receive investments in early 2018.
Ikiara noted that Kenya’s trade imbalance is largely due to
heavy reliance of exports of unprocessed agricultural products.
"We are therefore encouraging new entrants to begin value
addition of agricultural commodities so as to improve balance of
trade," he added.