Global consultancy says Kenya among top three PE destinations

Global consultancy Control Risks is the latest firm to vouch for Kenya’s investment attractiveness in its latest report on mergers, acquisitions and other deals.

The report - generated from advisers in private equity (PE), law, investment banking - says that Kenya is amongst the top the markets that international private equity firms will be looking to enter in 2016.

It ranked Kenya third behind Nigeria and South Africa in a list of African countries that are expected to have active foreign-driven deal making activity this year.

“Being the strongest country in the East African cluster, Kenya, was chosen by 14 per cent of respondents as the third most popular target for overseas dealmakers,” said the report.

South Africa was top of the list with 51 per cent of the respondents ranking the country as the prime investment destination, followed by Nigeria (20 per cent).

Countries below Kenya were Ghana (four per cent) with Morocco, Mozambique and Tanzania getting three per cent each while Angola and Egypt both had negative scores.

The report added that the attractiveness of Kenya and the region is the result of increased consumer spending and greater trading amongst members of the economic block.

“More attention on East Africa comes as no surprise as consumer growth and increasing trade links between the countries drive forward the bloc’s economy,” the report said.

The merger and acquisition focus for 2016 will be on Kenya’s insurance sector.

“Going forward the insurance sector will remain the likeliest focus area for deals due to its high growth potential as well as the higher capital demands,” said the report.