Foreign investment in Kenya falls 37 per cent to Sh225 billion

Foreign direct investment (FDI) to Kenya fell by 37 per cent last year, making the country the 10th most popular African destination for global capital.

Kenya recorded $2.2 billion (Sh225 billion) in capital investments in 2014, down from $3 billion (Sh306.8 billion) in 2013.

Egypt emerged the top destination for FDIs to Africa, raking in $17.9 billion (Sh1.8 trillion), with Angola coming in second at $16.1 billion (Sh1.6 trillion).

Nigeria closed the top three group with $10 billion (Sh1 trillion) in capital investment in 2014, according to new data from the Financial Times’ FDI intelligence report.

“Africa’s attractiveness is becoming more visible to large corporations, institutions and investors,” read a statement by Carlos Lopes, the executive secretary of the UN Economic Commission for Africa (UNECA).

“Foreign investment flows have grown exponentially since the turn of the millennium, with countries such as South Africa, Nigeria, Kenya, Egypt and Morocco leading the way, and this trend is set to continue as more countries demonstrate sound economic policies and improved business environments.”

Kenya led the rest of continent in FDIs in clean energy, however, following recent major investment into wind, geothermal and bio-fuels energy projects from both the private and public sector.

China’s growing economic influence in Africa stood out once again. According to the data, FDI from China increased by 180 per cent between 2013 and 2014. China’s share of the entire pool of Africa’s FDI now stands at 7 per cent, behind leaders France, Greece and the United States.