Kenya has a vibrant entertainment industry that has largely grown out of the advancement
of communications technology in the country. Significant improvements in internet access especially
via mobile devices has enabled consumers to access an array of entertainment and media products that
were not available until a few years ago.
As a result of the mobile platform expansion in Kenya, a lot of investment opportunities are
available from this million dollar sector. It is estimated that by 2017 Kenyan entertainment
consumers will be spending more than $3 billion thus making the entertainment sector one of the
fastest growing sectors not only in Kenya but in the region.
Alongside the internet, advancements in television and radio, the introduction of 3D technologies
in the movie and video games sub-sectors all indicate massive potential for local and international
investors.
The rapid growth of the urban population in Kenya coupled with a growing middle class presents a
host of opportunities for investment in building and construction sector. In the recent years,
Kenya has experienced a boom in the real estate industry which has rapidly expanded beyond the capital
city, Nairobi, into smaller cities and towns around the country.
With the increase in population, the demand for residential housing continues on an upward curve
that has captured the interest of many local and international investors. The boom in small and medium
sized as well as corporate businesses has also created a deficit in commercial structures.
Extensive opportunities exist in Kenya’s commercial real estate sector as more businesses demand
for building facilities for business operations. More investment opportunities can also be found in
low income real estate ventures which are supported by the Kenyan government Vision 2030 goals of
upgrading slums and informal settlements.
Kenya is a principal agricultural country with a GDP that is significantly boosted by over
60% export revenue of agricultural products. Large tracks of fertile land and affordable
labor are key interests for investors in the country’s agricultural sector that is as diversified
as it is dominant.
Output from this sector mainly stems from livestock farming, industrial and food crop production,
forestry, fisheries, and horticulture. Kenya’s agricultural exports include; flowers, coffee, tea,
cotton, pyrethrum, and sugar.
The Kenyan government is on an initiative to privatize some of its leading agri-businesses as
a strategy to grow the sector not only for the local but for export markets. Numerous opportunities
exist for manufacturers in the agricultural sector which is in need of processing of raw products
into finished goods for export.
Favorable bilateral agreements signed by the Kenyan government provide stability and security
for both foreign and local investors seeking to invest in agriculture based ventures.
Undoubtedly, the Kenyan economy is pro-investment as clearly outlined in the new constitution that
took effect in 2010. The Kenyan government has taken a particular leadership stand in the promotion of
ICT in the country.
The passing of policies to encourage ICT investments has taken the country through a rapid evolution
from very limited technological advancements to a leading ICT status in the region.
Currently, Kenya is a hub for some of the largest regional ICT offices in Africa including Google,
IBM, and Microsoft.
Investment opportunities lie in the education and training sectors, software development, broadband
technologies, business process outsourcing, and other ICT based sectors. A substantially large talent
base in the country is a resource that investors are looking to tap into as they seek opportunities to
take high returns in this sector.
Kenya’s ICT talent is respected worldwide for its output especially on its innovative M-Pesa
software that is used by the telecommunications and financial sectors.
In recent years, the telecommunications industry has become one of the highest revenue earners for
the Kenyan economy. Telecommunications giant Safaricom is the leading provider of voice, SMS, broadband
internet, cloud, and business and home solutions for a greater majority of the population.
Other Telcos such as Airtel and Orange have also invested in the lucrative telecommunications market
in Kenya.
Android technology and smart phones are just a few of the technologies that are used by local
consumers from the elite to the rural based customers. With this penetration of telecommunications
products and services in the country, investors are excited about the market potential that exists.
The use of money transfer services such as M-Pesa and Airtel money translate to large revenues for
investors who can benefit greatly from a sector that is also highly favored by government regulations
and policies.
Despite its rich endowment of natural resources, Kenya mining sector remains largely untapped
and underutilized. Lacking advanced technologies have hindered developments in this sector; a factor
that has prompted the government to set up favorable policies to encourage local and foreign investment
in mining.
Following the passing of the Public Private Partnerships by the Kenyan government, channels
for private investment in mining have opened up to the local and foreign public. Renewed research
on the country’s mineral endowments has recently led to the discovery of oil in Kenya’s northern region
thus presenting a lucrative opportunity for investors.
An already established road network throughout the country is of key interest to investors
who are keen on minimal startup costs of mining.
The road network in Kenya is enviably the best in East Africa. Deeper government collaborations
with the world bank and with the Chinese government within the last 5 years has greatly promoted the
construction of road networks within and outside the capital city, Nairobi.
The popular Thika Super Highway connects the capital city to major highways to Uganda, Somalia,
and other regional countries for increase efficiency in movement. As a core requirement in business
development, the government led initiates of road network development have boosted businesses in the region.
Investment in a railway line to link Mombasa to Malaba on the Kenya-Uganda border is another attraction
for investors whose operational costs will be greatly reduced once the railway line is opened up by 2017.
Given the strategic location of Kenya to the Indian Ocean port, investors have a lot to benefit from
in easy movement to and from the country.
A strong airline network and well-established airports and airstrips throughout the country have
also opened up even the most remote regions of the country to investors.
Kenya’s banking and finance sector is one of the strongest in the Sub-Saharan region. Since 2009,
the financial system in the country has recorded remarkable growth despite economic shocks in the local
economy as well as the global financial crisis.
Currently the country’s financial sector boasts of a host of international and local banks,
insurance companies, a strong stock exchange system, reputable mobile banking platforms, micro-finance
institutions, and extensive banking facilities spread throughout the country.
The Central Bank of Kenya, the supervisory bank of the country has put in place strict measures to
regulate the finance and banking sectors to promote growth and reduce credit and fraud.
As the small and medium sized business sector continues to grow rapidly, the Kenyan economy has
seen the quick growth of micro-finance institutions that provide financial products and services to
upcoming and rural based businesses.
Growing financial literacy among the lower class population in the country has also resulted in
the demand for financial solutions for savings. These are easily available in the locally based banks
and most especially through mobile banking platforms for consumer savings and investments.
With the worldwide renowned M-Pesa service, the Kenyan banking and financial sector is one of the
most active in Africa recording millions of shillings in money transfer transactions per day.
These key developments present investment opportunities in financial institutions and in technology
for Kenya’s finance and banking market.