EDITORIAL: FDI inflows drop worrying

Globally foreign investment fell two per cent to $1.75 trillion, a development that was attributed to weak economic growth. FILE PHOTO | NMG

That foreign direct investment (FDI) inflows to Kenya is on a six-year low — as United Nations Conference on Trade and Development (Unctad) data shows — should be a cause for serious concern for East Africa’s largest economy.

Data shows that the inflows have been on a consistent decline, even as overall flows to the region continues to grow. The decline this year is quite significant – a 36 per cent drop to Sh40.7 billion, compared with 13 per cent increase in inflows to the region. 

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