Global Markets

Kenya still a favourite for foreign investors, EY says


FDI flows into Kenya has tended to ebb and flow year-on-year. PHOTO | FILE

Consultancy firm EY (formerly Ernst & Young) has ranked Kenya as 2017's second-most attractive foreign investment destination in Africa.

This is despite poor performance last year where foreign direct investments (FDIs) dropped by 57.9 per cent.

The firm's newly released Africa Attractiveness Index 2017 showed Kenya scored highly in the long-term outlook on governance and human development (16 out of 20), economic diversification (10 out of 20), infrastructure and logistics (16 out of 20) and had an improved business environment rating that stood at 10 out of 20.

"Kenya, which is East Africa’s anchor economy (and SSA’s fourth largest), saw investment flag in 2016 after a bumper year in 2015," it said.

"FDI projects were down 57.9 per cent, while capital investment declined by 55.5 per cent. But on a longer-term perspective, FDI flows into Kenya has tended to ebb and flow year-on-year,” EY explained in the report.

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