Kenya eyes Sh5 billion direct investment from China through expo

June Chepkemei,managing director Kenya Investment Authority making her remarks during the 6th Kenya International industry expo on September 11, 2023. [Edward Kiplimo, Standard]

Kenya is targeting additional Sh5 billion investment from China as the country prepares to host 200 businesses from the Asian nation in the upcoming Kenya International Industrial Expo.

Kenya Investment Authority (KenInvest) Managing Director June Chepkemei said foreign direct investment (FDI) from China currently stands at $348 million (Sh48.7 billion) "and we want to increase that by 10 per cent."

Ms Chepkemei noted that FDI from China is very important to Kenya's economy.

She said the expo, which is being organised in conjunction with Kenya National Chamber of Commerce and Industry (KNCCI) and Afropeak Expo Kenya Ltd, will significantly catalyse the government's goal of injecting $10 billion (Sh1.4 trillion) into the economy this year as FDI.

"We are halfway in our journey and we hope this coming expo will see us convert at least 10 per cent of the exhibitors to actual investors."

The KenInvest MD said projects such as industrial parks, which the government has allocated funds to be put up in all the 47 countries, provide a fertile ground for investors to set up their businesses, particularly in manufacturing and value addition.

She noted that in the last eight months, KenInvest has overseen Sh77 billion worth of investments - Sh46 billion being FDI and Sh31 billion domestic direct investment (DDI).

Chepkemei pointed out that there have been move investments in the country within that period owing to the fact that not all investors go through KenInvest, while others do not register their investments.

She estimated this unaccounted for investment to be around $4 billion (Sh560 billion).

"That is the information that we are collating so that we can have the actual number of FDI that has been attracted.

"The challenge has been data on the actual FDI that comes into the country. It is as a result of fragmented efforts in investment promotions and FDI attraction."

Afropeak Expo Kenya MD Gao Wei said the sixth Kenya International Industrial Expo will also run simultaneously with the Kenya Import and Export Fair.

"We believe we will create a very good platform to push exports to China," he said, adding that the expo will connect Kenyan businesses to the advanced technologies China has to offer.

The expo will run from September 21 to 23 at Sarit Expo Centre.

KNCCI President Erick Rutto said the expo will help balance out trade volumes between Kenya and China.

He said while exports to China increased seven per cent in 2021-22, there is still an imbalance since Kenya exported Sh33.6 billion worth of goods to China during the period while China exported Sh532 billion to Kenya.

"That gives us a trading balance of 1:16. I am imagining if it is goods, for every container that leaves Kenya, 16 leave China. That is a risk, both for Kenya and China," said Dr Rutto.

"It means any container that comes from China to here, goes back empty, and that increases the cost of logistics."