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SEPTEMBER 2014

Dr. Moses Ikiara

Managing Director

Kenya Investment Authority

KENYA: THE GATEWAY TO AFRICA

AFRICAN INVESTMENT PROMOTION FORUM (AIPF)

29TH SEPTEMBER TO 1ST OCTOBER, 2014

SEPTEMBER 2014

Outline

Kenya at A Glance

Kenya’s Aspiration

Why Visit Kenya

Invest in Kenya

Conclusion

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SEPTEMBER 2014

Kenya at a Glance… Population

43.5 million (2012

est.) with population

growth rate of 2.67

percent

Political System

Devolved State with

Multiparty Democracy

47 Counties

Credit Rating

S&P B+ (Stable)

Fitch B+(Stable)

Moody B1(Stable)

Languages

Swahili and English

are official languages.

Climate

Kenya lies on the

equator and enjoys a

varied climate ranging

from tropical to

temperate (10°C to 40°C)

Currency

KES 90 : US$ 1

(June 2014)

Area

582,646 km2

GDP at current US$

US44 billion (2013)

Av. Annual Growth rate 5.7%

Situated at eastern sea bed of Africa and connecting all

East Africa Countries and Great Lakes Region

GDP per capita

US$ 1,016

(2013)

SEPTEMBER 2014

Market Access

Member Countries: 20

Population: 444 Million

Total GDP: USD 360 Billion

Member Countries:5

Population: 135.4 Million

Total GDP: USD 84.7 Billion

Av. Annual growth rate of 6%

Kenya is the business hub in the COMESA and EAC regions.

Soon there will be the tripartite a regional block of the EAC, COMESA and SADC nations

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SEPTEMBER 2014

Kenya’s Aspiration

Social

A just and cohesive society

Economic

To maintain a sustained economic

growth of 10%

Political

An issue-based, people-centred, and accountable

democratic political system

• Young

Democracy

with a big

vision for her

future as

articulated in

Vision 2030

• The strongest

Economy in

the Region

SEPTEMBER 2014

Why Kenya

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SEPTEMBER 2014

The Communication Hub of

the Region-1

Economic

To maintain a sustained economic growth of 10% p.a. for most of

the next 20 years

Port of Mombasa – gateway to East and Central Africa

JKIA – Convenient connection to rest of Africa

Kenya Airways flies to over 63 destinations

Vibrant telecommunication – 30.7 Million subscribers of

mobile telephony

Excellent Internet Connections with 4 fibre

optic cables

Direct flights between Nairobi to Guanzhou

Coming soon: Direct flight to Beijing

SEPTEMBER 2014

Key International Airlines

The Communication Hub of

the Region-2

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SEPTEMBER 2014

The Commercial Hub of the

Region Nairobi –Commercial

and financial hub of the Region

Well developed service infrastructure – banks,

insurance firms, hospitals, capital

market

Home to over 300 Multi National Corporations and a Vibrant Private

Sector

Track record of highly successful home

grown corporation i.e. Equity

Oversubscribed Euro Bond (over 500%)

SEPTEMBER 2014

ICT Hub of the Region

Economic

To maintain a sustained economic growth of 10% p.a. for most of

the next 20 years

ICT innovations e.g. MPESA first mobile

money transfer in the world

Growing Middle Class and Highly tech savvy

Youth in Africa

Twitter generation second in Africa

Nairobi is home to several incubation

hubs i.e. Nailab, i-hub IBM research lab

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SEPTEMBER 2014

Stable Democracy

Economic

To maintain a sustained economic growth of 10% p.a. for most of

the next 20 years

Progressive Constitution with

strong Bill of Rights

Political Stability with elections held every

5 years

Social and Judicial Reforms e.g. first

Country to do vetting of Judges

Respect for Private Property

Media headquarters of Africa

Institutionalized Media Freedom

SEPTEMBER 2014

Excellent Export Quality

Products

Economic

To maintain a sustained economic growth of 10% p.a. for most of

the next 20 years

Top quality products Tea, Coffee, Horticulture

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SEPTEMBER 2014

The Home of Gourmet Coffee…

Value Addition

SEPTEMBER 2014

… and Quality Horticultural Produce

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SEPTEMBER 2014

Emerging exports

Economic

To maintain a sustained economic growth of 10% p.a. for most of

the next 20 years

Titanium

Coal

Other Minerals

SEPTEMBER 2014

Invest in Kenya

Kenya is … An Attractive Country For Investment teeming with opportunities across sectors!

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SEPTEMBER 2014

Investment Opportunities

1 Million Acre Galana Kulalu irrigation Scheme

Privatization of 5 sugar companies

Development of Multipurpose dams for irrigation

Deep Sea/ Lake Fisheries development, management &

processing (Lamu Fish Port; Counties like Busia)

Agricultural Development along LAPSSET Corridor

AGRICULTURE

SECTOR

SEPTEMBER 2014

Investment Opportunities

Construction of housing units (deficit of 150,000 units p.a.); Nairobi

2nd Runway JKIA to facilitate 20 million arrivals by 2017

Standard Gauge Railway Nairobi- Malaba

Commuter Rail; Parking systems to sort out congestion in large cities

Special Economic Zone & Airport City at Nairobi; Dry Port at Voi

INFRASTRUCTURE/

CONSTRUCTION SECTOR

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SEPTEMBER 2014

FINANCIAL SERVICES SECTOR:

• Establishment and implementation of Nairobi International Financial Centre

MANUFACTURING SECTOR:

• Agro-processing

• Development of SME parks

• Development of Industrial &technology parks

• Development of Iron and mini steel mills

• Leather manufacturing

• Textiles & Garments manufacturing

Investment Opportunities

SEPTEMBER 2014

Investment Opportunities

2 x 70MW Olkaria V

Isiolo 50MW Wind Power by 2016

2 x 140MW Olkaria VI & VIII

Implementation of 400MW Menengai Phase I Geothermal Development Project

Implementation of 800MW Menengai Phase 2 Geothermal Development Project

Implementation of 800MW Bogoria-Silali Phase 1

GDC 300MW Geothermal Plant

Photo-Voltaic Solar Assembly facility

Bio-fuel production

ENERGY SECTOR

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SEPTEMBER 2014

Investment opportunities in Tourism

Development of 3 high end resort cities in Isiolo, Turkana and

Lamu

Development of International Hotel Brands to meet the growing demand for

bed capacity

Conference facilities in major cities of Nairobi, Mombasa and Kisumu

Development of Golf Resorts

Development of water-sport facilities and

marina across Kenyan water ways

Development of Tourism Training

Institutions

SEPTEMBER 2014

Ronald Ngala Utalii College Hotel – 20 Acres available

Modern Convention Centre in Nairobi CBD

Convention Centre in Mombasa - North Coast

Cable Cars in Kerio Valley

Amusement Parks

Ready to Invest Opportunities

Modern Convention Centre integrated with International standard hotels at Bomas of Kenya (82 acres available)

Development of a Lake View Resort in Kisumu, the third largest city in the region (20 acres available)

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SEPTEMBER 2014

SEPTEMBER 2014

Incentives

100% to 150% investment allowance depending on location

(For investment of over USD 2.4M)

Duty Exemption and VAT waiver

on plant and machineries

Manufacturing Under Bond

Program

EPZ program; SEZ program

under development

Capital goods Zero rated

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SEPTEMBER 2014

Market Access Incentives 20% local sales to EAC market (upon

payment of all taxes). To be

increased under SEZs.

Duty free Access to USA for 6,000 +

products under AGOA(GSP)

Duty free Access to EU market

under Economic Partnership

Agreement (EPA)

Duty free or Preferential access to 18

counties under COMESA FTA & common market

SEPTEMBER 2014

Guarantees to Investors

Kenya Constitution

Guarantees against expropriation of private property except for

purposes of public use or security

Removal of exchange Controls Guarantees investors repatriation of

capital, profits and interests

Member of the international

Centre for settlement of

investment disputes (ICSID)

Arbitrates cases between foreign investors and host governments

Member of the Africa Trade

Insurance Agency (ATIA)

Which insures investors against political risks

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SEPTEMBER 2014

Investment Enablers

Provision of Supportive Policy and Legal Environment (PPP Act 2013)

An established PPP Secretariat at National Treasury, as well as PPP Nodes in Contracting Authorities

PRIVATE PUBLIC PARTNERSHIPS

SEPTEMBER 2014

Investment Enablers

Liberalizing unconditionally the capital markets

• Foreign companies can buy stocks up to a maximum of 40% of quoted stocks , while individuals up to 5%

• Revocation of blocked funds provision

. Removed price controls and repealed the exchange control act

• Residents and non residents are allowed to open foreign currency accounts with domestic banks

• Removed restrictions on domestic borrowing by foreign owned companies

• Improving Ease of Doing Business

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SEPTEMBER 2014

Message to investors

Testimonial

• The wildlife is genuinely wild and the people are simply amazing: Chris Pomeroy

• Warm hospitality, beautiful land and animals, lovely beaches, star-filled skies, food that comes from real farms... Works for me! Mary Jane O’Loughlin

SEPTEMBER 2014 CIFIT China Kenya Business Forum

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SEPTEMBER 2014

Kenya Investment Authority (KenInvest)

Policy Advocacy

Investment Promotion

Investment Facilitation

Investor Tracking

After Care Services

Our Vision“A global leader in investment attraction”

What KenInvest will do for you …

SEPTEMBER 2014

KIICO 2014

We welcome you all to Kenya investment Conference

November 19th to 20th 2014

Kenyatta International Convention Centre ,

Nairobi