Kenya is a regional commercial, economic and logistical hub. With a population of about 40 million, the country remains the most developed economy in Eastern Africa. As a business hub, the country prides in its young population, with almost 70% falling below the age of 35 years. Poverty remains a challenge with approximately 50% of citizens living below the poverty line. If you are considering doing business in Kenya, here are some nuggets.
Kenya is strategically located for business
Kenya appeals to many foreign investors and multinationals because of its location and accessibility. With international airports and the Mombasa port, Kenya remains ahead of the park. Today, Nairobi hosts the United Nations Environmental Programme, the first African country to house a UN major agency. Several multinationals like Google, Coca Cola, General Electric and Toyota have their regional headquarters in Nairobi.
Kenya has abundant labor
Although skilled labor is costly, Kenya ranks better that her neighbors in terms of availability of human resources. With growth in the education sector, that has an increase in the number of Universities and tertiary colleges, churning thousands of graduates into the market annually, investors have readily available labor with soaring numbers of the unemployed.
Beware of corruption in Kenya
Globally, Kenya is not doing well in matters of corruption. In a recent 2015 Corruption Perception Index report by Transparency International (TI), Kenya is among poor performers. The report places the East African economic giant at position 139 out of 168 countries. TI lays the blame squarely on weak anti-corruption bodies.
Security threats
Crime and terror threats are harming Kenya’s economy, especially the tourism sector, the worst hit. In recent years, the country has witnessed a series of Al Shabaab attacks. This creates concerns among investors.
Countless Opportunities in Kenya
Despite its challenges, Kenya offers a wide range of opportunities in Information technology, agribusiness, infrastructure and medical equipment among others. In particular, the growth in telephony since 1998 has been phenomenal. According to the Communications Authority of Kenya (CA), mobile penetration rate has hit 80.5 per cent.
