DOING BUSINESS IN KENYA
Kenya Summary
Kenya, the gateway to East Africa, boasts a growing and diverse economy driven by strategic initiatives, a youthful workforce, and strong infrastructure. With a population of 55.1 million (2023) growing at 2.0% annually, Kenya remains an attractive destination for investment in agriculture, technology, and manufacturing. The capital city, Nairobi, is home to 5.3 million people and serves as a regional hub for business and logistics, complemented by major cities like Mombasa, Kisumu, and Nakuru.
| Population | 55.1 million (2023) |
| Population growth rate | 2.0% |
| Capital | Nairobi(population 5.3 million) |
| Annual GDP Growth | 5.3% (2023) |
| Average GDP per capita | €1,759 |
| Annual Inflation rate | 7.7% (2023) |
| Currency | Kenya Shilling (KES) |
| S&P 2018 Credit Rating | B- (2023) |
| Language | Kiswahili, English |
| Other Major Cities | Mombasa, Kisumu, Nakuru |
| Political System | Devolved State with, multiparty democracy |
| Number of Counties | 47 |
| Unemployment rate | 5.65% (2023) |
| World Bank Doing Business Rank (2018) | 56 out of 190 (2020) for ease of doing business |
Kenya’s Vision 2030 aims to transform the country into a middle-income, globally competitive nation.
Vision 2030 drives economic growth, social equity, and democratic governance, emphasizing innovation, infrastructure, and improved quality of life.
In addition to fostering economic development through the country’s long-term development plan, Vision 2030, in 2017 the Kenya Government outlined the Big Four development priority areas for the next five years.
Trade between Ireland and Kenya
Kenya and Ireland share strong and growing trade relations, underscored by mutual interests in agriculture, technology, and healthcare. Ireland has become a key partner for Kenyan exporters seeking access to the European Union, while Kenyan imports complement Ireland’s economy.
Kenya’s main exports to Ireland:
Tea, coffee, cut flowers, avocados, vegetables, and fruit juices are among the top products.
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Value of total merchandise exports from Kenya to Ireland in 2023; a significant increase from previous years.
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Value of imports of services
from Kenya to Ireland.
Ireland’s main exports to Kenya:
Pharmaceuticals, medical supplies, computers, food preparations, spirits, and laboratory reagents are primary exports..
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Value of total merchandise exports from Ireland to Kenya in 2023; a significant increase from previous years.
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Value of imports of services from Ireland to Kenya
Kenya’s Competitive Landscape
Kenya offers a competitive business environment characterized by strategic advantages and robust infrastructure:
- Strategic Location: Positioned as a gateway to East Africa, Kenya provides access to a regional market of over 400 million people.
- Infrastructure: World-class ports, airports, and the LAPSSET Corridor and Standard Gauge Railway enhance trade connectivity.
- Skilled Workforce: A young and educated population supports diverse industry needs.
- Investment Incentives: Special Economic Zones (SEZs) and Export Processing Zones (EPZs) offer tax holidays, customs duty exemptions, and favorable regulations for investors.
- Stable Political Climate: Devolution and democratic governance ensure consistency in policy-making and regional development.
Kenya’s Role in the EAC
As a founding member, Kenya plays a pivotal role in the EAC’s economic, political, and social initiatives. The country benefits significantly from its position as the region’s largest economy and a strategic gateway to East and Central Africa.
Key contributions:
- Trade Hub: Kenya is a major conduit for trade within the EAC, with the Port of Mombasa serving as the region’s principal seaport.
- Economic Integration: Kenya actively participates in EAC policies aimed at reducing barriers to trade, harmonizing customs, and fostering cross-border investment.
- Infrastructure Development: Projects like the Standard Gauge Railway (SGR) and the LAPSSET Corridor strengthen Kenya’s connectivity with EAC members, improving trade flows.
Why the EAC Matters for Investors
For businesses and investors, the EAC offers immense potential for regional trade and expansion. Kenya, as a regional hub, provides unparalleled access to this integrated market. Key incentives include:
- Duty-free exports within the EAC for goods meeting local content requirements.
- Access to regional financing and trade facilitation programs.
- Participation in large-scale infrastructure projects supported by international development partners.
Economic Trends and Opportunities
Kenya’s economy is growing steadily, with GDP projected at 5.4% growth in 2023, driven by diverse sectors:
- Agriculture: Generates €2 billion annually in exports, with increasing adoption of climate-smart technologies.
- ICT: Contributing 10% to GDP, supported by 92% internet penetration and over 400 tech hubs.
- Manufacturing: Growing at 3.5%, with opportunities in green technologies and value-added production.
- Tourism: A key contributor, earning €1.07 billion annually, with a focus on eco-tourism and sustainable hospitality.
- Renewable Energy: Kenya is a leader in geothermal energy production and renewable projects, with 70% of energy derived from renewables.