By O’brien Kimani,
Nairobi, (NNN-KBC) : Investors in Kenya have cited corruption, insecurity, politics, the cost of electricity and tax administration as the biggest impediments to doing business in the country, according to the 2015 Foreign Investment Survey Report which has just been released.
The investors have also cited delays in registering property and lengthy tax refund procedures as costly to their businesses. The report says the European Union (EU) remains Kenya’s biggest investor followed by the United States.
Meanwhile, neighbouring Uganda and the US are the top investment destination for Kenyan investors.
As the number streak of terror attacks in many parts continues rising, 15 out of 20 investors in Kenya rate security as the top-most concern, followed by corruption and the cost of electricity.
The 2015 survey, carried out by the Kenya National Bureau of Statistics, indicates that the state of infrastructure is also an ongoing concern for most investors.
The EU accounted for 41 per cent of total foreign direct investment (FDI) in Kenya followed by the COMESA (Common Market of eastern and Southern Africa) bloc and the United States in third place. The services sector, construction and energy were the favourite areas of investment for foreign investors.
Investment outflows to the COMESA bloc more than doubled to 15.8 billion shillings with the implementation of reduced barriers to trade and the attraction of lucrative returns. In 2013 Kenyan investors pumped more than 100 billion shillings in the rest of Africa.
The Kenya National Bureau of Statistics has also kicked off its survey on foreign investment for 2016.